HomeMy WebLinkAboutFY2004-05 Basic Finincial StatementsCity of
San Rafael
San Rafael, California
Basic Financial Statements
and Independent Auditor's Report
For the year ended June 30, 2005
C&L
Caporicci & Larson
Certified Public Accountants
City of San Rafael
Basic Financial Statements
For the year ended June 30, 2005
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...............................................................................
27
Statement of Revenues, Expenditures and Changes in Fund Balances -
GovernmentalFunds......................................................................................................................
29
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..........................................................................................
30
Proprietary Funds:
Statementof Net Assets........................................................................................................................
32
Statement of Revenues, Expenses and Changes in Retained Earnings .........................................
33
Statementof Cash Flows......................................................................................................................
34
Notes to Basic Financial Statements................................................................................................................. 35
Required Supplementary Information:
Budgets and Budgetary Accounting:
Budgetary Comparison Schedule - General Fund........................................................................... 77
Budgetary Comparison Schedule - Redevelopment Agency Fund ............................................... 78
Budgetary Comparison Schedule - Traffic and Housing Mitigation
SpecialRevenue Fund.................................................................................................................... 79
Marin County Employees' Retirement System Schedule of Funding Progress .................................. 80
City of San Rafael
Basic Financial Statements
For the year ended June 30, 2005
Table of Contents, Continued
Page
FINANCIAL SECTION, Continued:
Supplementary 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:
Recreation Revolving Special Revenue Fund.............................................................................
94
Baypoint Lagoons Assessment District Special Revenue Fund ...............................................
95
Gas Tax Special Revenue Fund.....................................................................................................
96
Childcare Special Revenue Fund..................................................................................................
97
Street Maintenance and Cleaning Special Revenue Fund .........................................................
98
Loch Lomond Assessment District Special Revenue Fund ......................................................
99
Library Special Revenue Fund......................................................................................................100
Public Safety Special Revenue Fund............................................................................................101
Stormwater Special Revenue Fund..............................................................................................102
Development Services Special Revenue Fund............................................................................103
GrantsSpecial Revenue Fund.......................................................................................................104
Parkland Dedication Special Revenue Fund...............................................................................105
Emergency Medical Services Special Revenue Fund.................................................................106
Business Improvement Special Revenue Fund...........................................................................107
Household Hazmat Facility Special Revenue Fund..................................................................108
Sewer Maintenance Special Revenue Fund.................................................................................109
Peacock Gap Assessment District Debt Service Fund...............................................................110
Mariposa Assessment District Debt Service Fund.....................................................................111
1997 Financing Authority Revenue Bonds Debt Service Fund................................................112
Capital Improvement Capital Projects Fund..............................................................................113
Bedroom Tax Capital Projects Fund.............................................................................................114
Park Capital Projects Capital Projects Fund................................................................................115
Open Space Capital Projects Fund...............................................................................................116
Internal Service Funds:
Combining Statement of Net Assets...................................................................................................118
Combining Statement of Revenues, Expenses and Changes in Net Assets..................................120
Combining Statement of Cash Flows.................................................................................................122
G-11
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, 2005, 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, 2005, and the respective changes in
financial position and cash flows, where applicable, thereof for the year then ended in conformity with
generally accepted accounting principles in the United States.
As described in Note 1 to the basic financial statements, the City adopted Statement of the
Governmental Accounting Standards Board No. 40, Deposit and Investment Risk Disclosures (Amendment of
GASB No. 3).
In accordance with Government Auditing Standards, we have also issued our report dated October 6, 2005, 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
Toil Free Fax: (866) 436-0927
Oakland Orange County
180 Grand Ave., Suite 1365 9 Corporate Park, Suite 100
Oakland, California 94612 Irvine, California 92606
Sacramento San Diego
777 Campus Commons Rd., Suite 200 4858 Mercury, Suite 106
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.
Oakland, California
October 6, 2005
N
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2005
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, 2005. Please read it in conjunction with the accompanying transmittal
letter, the basic financial statements and the accompanying notes to those basic financial statements.
FINANCIAL FIIGHTLIGHTS
Government -Wide Highlights:
Net Assets - The assets of the City exceeded its liabilities at fiscal year ending June 30, 2005 by $221.7
million. Of this amount, $16.1 million was reported as "unrestricted net assets" and may be used to meet
the governments ongoing obligations to citizens and creditors.
Expense Activities - During the fiscal year the City's total expenses ($73.3 million) exceeded revenues for
governmental and business -type activities ($71.9 million) by $1.4 million. Excluding Depreciation (non -
cash expense of $6.4 million), collected revenues were $5.0 million above expenses.
Changes in Net Assets -'The City's total net assets decreased by $1.4 million in fiscal year 2005. Net assets
of governmental activities decreased by $1.6 million, while net assets of the business type activities
increased by $.2 million.
Fund Highlights:
Governmental Funds - Fund Balances- As of the close of fiscal year 2005, the City's governmental
funds reported combined ending fund balances of $40.5 million, a decrease of $3.2 million from the
prior year. Of this total amount, $29.0 million represents reserved fund balances and $10.8 million
is designated.
General Fund - The fund balance of the general fund on June 30, 2005 was $8.2 million, an increase of
$2.5 million from the prior year. $2.4 million was held in reserve, and $5.7 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 $1.9 million (3.2 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.
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2005
Government -Wide Financial Statements
The Government -Wide Financial Statements present the financial picture of the City and provide readers
with a broad view of the City's finances. These statements present governmental activities and business -
type activities separately and include all assets of the City (including infrastructure) as well as all liabilities
(including long-term debt). Additionally, certain interfund receivables, payables and other interfund
activity have been eliminated as prescribed by Government Accounting Standards Board (GASB)
Statement No. 34.
The Statement of Net Assets and the Statement of Activities and Changes in Net Assets report information about the
City as a whole and about its activities. These statements include all assets and liabilities of the City using the
accrual basis of accounting, which is similar to the accounting used by most private -sector companies. All of the
current 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. The 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 17 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.
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2005
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 86 through 93 of this report.
Governmental Funds - Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide
financial statements, governmental fund financial statements focus on near -term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government's near -term financial capacity.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for government funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near -term financing decisions.
Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures,
and changes in fund balances provide a reconciliation to facilitate this comparison between governmental
funds and governmental activities. These reconciliation's are presented on the page immediately following
each governmental fund financial statement.
The City has twenty-eight governmental funds, of which three 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 three
major funds are - the General Fund, Redevelopment Agency, and Traffic and Housing Mitigation. Data
from the other twenty-five governmental funds are combined into a single, aggregated presentation. The
basic governmental fund financial statements can be found on pages 25 through 30 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 31 through 34 of this report.
5
CITY OF SAN RAFAEL
Management's Discussion and.
Fiscal Year Ended June 30, 2005
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 35
through 74 of this report.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information. One section includes budgetary comparison statements for the major funds
(general, redevelopment agency, and traffic and housing mitigation). The other section is a schedule of funding
progress for the Marin County Employees' Retirement System. All budgeted positions that are filled by either
full-time or permanent part-time employees (working seventy-five percent of full time equivalent) are eligible to
participate in this system. Required supplementary information can be found on pages 75 through 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 $221.7 million, which is a decrease of $1.4 million from the prior year.
The following is the condensed Statement of Net Assets for the fiscal years ended June 30, 2004 and 2005.
Assets:
Current assets
Capital assets, net
Total assets
Liabilities:
Current liabilities
Long-term liabilities
Total liabilities
Net Assets:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
City of San Rafael
Statements of Net Assets
June 30,
(Amounts in Millions)
Governmental Activities Increase
2005 2004 (Decrease)
Business -Type Activities Increase
2005 2004 (Decrease)
$ 55.8 $
54.5
$ 1.3 $
2.1 $
1.6 $
0.5
216.4
216.2
0.2
16.2
16.1
0.1
272.2
270.7
1.5
18.3
17.7
0.6
12.5
7.5
5.0
0.3
0.1
0.2
48.5
50.4
(1.9)
7.5
7.3
0.2
61.0
5T9
3.1
7.8
7.4
0.4
194.7
2003
(5.6)
8.6
8.8
(0.2)
2.4
2.7
(0.3)
-
-
-
14.1
9.8
4.3
1.9
1.5
0.4
$ 211.2 $
212.8
$ (1.6) $
10.5 $
10.3 $
0.2
6
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2005
At June 30, 2005, the largest portion of net assets (92.2 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 decrease in total net assets from 2003-2004 to 2004-2005 is largely attributable to a prior
period adjustment for an overstatement of construction in progress ($1.8 million) from the prior fiscal year. Not
including the prior period adjustment, total depreciation for this current year was $6.4 million, while capital asset
acquisition totaled $6.9 million, leaving a net change (increase) of $0.3 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 (1.1 percent) is subject to restrictions imposed
by external parties and their use is determined by those restrictions and agreements. The remainder of net
assets, $16.1 million, may be used to meet the City's ongoing operations.
For the year ended June 30, 2005, 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
$2r
$2(
CITYOFSANRAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2005
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 2005:
Revenues:
Progrannrevenues
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,
(Amounts in Millions)
Governmental Activities Increase Business -Type Activities Increase
2005 2004 (Decrease) 2005 2004 (Decrease)
$ 19.3 $ 18.2 $ 1.1 $ 2.6 $ 2.3 $ 0.3
50.0 44.7 5.3 - - -
69.3 62.9 6.4 2.6 2.3 0.3
70.8 67.5 3.3 2.4 1.4 1.0
(1.5) (4.6)
3.1
0.2 0.9
(0.7)
- 0.1 $
(0.1)
- (0.1) $
U
212.7 217.2 10.3 9.5
$ 211.2 $ 212.7 $ 10.5 $ 10.3
The City's governmental activities decreased net assets by $1.5 million, which represents a .7% decrease from last
year. Key elements of this change were as follows:
Revenue highlights:
• Property Tax revenues increased by $2.5 million or 16.7 percent in fiscal year 2005 due to excess
property tax revenues, also known as "excess ERAF", higher assessed property values, and new
construction netted against the State's take away with the passage of Proposition 1A.
• Sales tax revenues decreased by $0.03 million or approximately 0.2 percent compared to fiscal year
2004. Although sales tax revenues have been relatively flat on consumer retail and business related
activity in the City, the State also reduced the sales tax revenues distributed to the local
governments from 1 percent to 0.75 percent. The State will replace the 0.25 percent difference with
revenues from property taxes. This amount also known as the "triple flip" is recorded and reported
as sales tax.
• Motor vehicle revenues increased by $2.2 million or approximately 86.6 percent compared to fiscal
year 2004. The increase is due to the classification of the State's backfill for vehicle license fee (VLF)
which is classified with VLF for FY2004-2005 but will be considered property tax revenues in future
years and from the proceeds from the sale of the VLF loan receivable.
Investment income, which is a combination of interest earnings and change in fair value of
investments, increased by $0.3 million, or approximately 37.5 percent over the prior fiscal year.
Interest earnings were higher due to the interest recorded for the Tax and Revenue Anticipation
Note.
8
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2005
Governmental Activities - Revenues:
22%
Governmental Activities
Revenues by Source
June 30, 2005
1 % 6% 2%
7_c,01
19% LJ 70
Governmental Activities - Expenses:
Governmental Activities
Expenses by Function
June 30, 2005
12% 3% 8%
7°r
24
6%
■ Property Taxes
■ Sales Taxes
❑ Other Taxes
❑ Charges for
Services
■ Miscellaneous
13 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 $68.6 million (not including interest on long-term debt of $2.1
million). Program revenues offset total expenditures as follows:
• Those who directly benefited from programs contributed $15.3 million in charges for services.
• A total of $1.2 million in capital projects was funded by outside agencies through capital grants and
contributions.
9
CITY OFSANRAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2005
As a result, total expenditures that were funded by tax revenues; investment income and other general revenues
were $52.1 million.
Functional expenses for the years ended June 30, 2005 were as follows:
Expenses by Function
For the fiscal year envied June 30, 2005
Function Amount Percent of Total
General Government
Public Safety
Public works and parks
Community development
Culture and recreation
Interest on Debt
Total Expenses
Business -Type Activities:
$ 5,895,390
8.3%
32,891,692
46.4%
16,820,453
23.8%
4,624,345
6.5%
8,450,017
11.9%
2,129,818
3.0%
$ 70,811,715
100.0%
Net assets for business -type activities were $10.5 million, an increase of $0.2 million from the prior fiscal year.
Parking services is the City's only business type activity and income is derived from program revenues of $2.6
million. Program revenues include parking meter coin at $1.1 million, and parking garage hourly parking at $0.2
million. Revenues also include parking and non -vehicle code fines totaling $1.1 million and $0.2 million for
garage parking permits. Total expenses for parking services were $2.5 million during fiscal year 2004-2005.
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 $48.5 million. Approximately, $0.5 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 $5.8 million, while total
fund balance reached $8.2 million. $5.7 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
expenditures. Unreserved fund balance represents 14.1 percent of total general fund expenditures including
transfers out, while total fund balance represents 20.1 percent of that same amount.
10
CITYOFSANRAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2005
The available fund balance of the City's general fund increased by $1.5 million during the current fiscal year.
This increase resulted from:
• Vehicle license fee backfill and sale of the vehicle license fee loan.
Passage of Proposition 1A in November 2004 reduces property taxes for two years. This loss combined
with the greater than expected excess Educational Revenue Augmentation Fund revenue netted an
increase of property tax.
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 2005, the reserved fund balance was $13.2
million, a decrease of $4.8 million from the prior year. Expenditures exceeded revenues by $4.8 million. The
decrease is primarily related to $5.4 million in expenditures for capital improvement projects including the 3ra
and C Street parking structure and the Pickleweed Community Center expansion. 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 $.2 million as a result of operations in the Parking Services fund.
GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended budget totaled $40.7 million, including an increase of $180,135 to the originally adopted
budget. The amendments can be briefly summarized as follows:
1. Increases (decreases) in the following budgets:
o General Government $181,343
o Public Safety 15,616
o Public Works and Parks (71,652)
o Community Development/Redevelopment 37,452
o Culture and Recreation 17,376
During the year, however, revenues exceeded budgetary estimates and expenditures exceeded the final
budgetary estimate. Overall, revenues exceeded expenditures by $5.0 million. Transfers out exceeded transfers
in by $2.5 million.
11
CITYOFSANRAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2005
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, 2005,
amounts to $232.6 million, net of accumulated depreciation of $86.5 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 immovable and of value only to the City such as roads, bridges,
streets and sidewalks, drainage systems, lighting systems and similar items. The total additions to the City's
investment in capital assets for the current fiscal year was $4.5 million, net of retirements and a prior period
adjustment for an overstatement of construction in progress.
Major capital asset additions during the current fiscal included a land purchase, construction of a parking
structure, work in process on a community center expansion and dispatch center, purchase of twelve vehicles,
and roadway improvements.
Capital Projects
The Pickleweed Community Center expansion and renovation project is well under way with the
expected completion in the summer of 2006.
y Although construction of the 3,a and C Street Parking Structure was halted for a time due to the
default of the original general contractor, construction resumed and the facility opened in June 2005.
Final settlement issues with the surety company will be resolved in the next fiscal year.
Additional information on the City's capital assets can be found in Note 5 on pages 53 through 56 of this report.
Debt Administration
As of June 30, 2005, 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 2004 and 2005 were as follows:
Governmental
Business -Type
Activities
Activities
Total
2005 2004
2005 2004
2005
2004
Revenue Bonds
$ 1.7 $
2.3
$ 7.6 $ 7.6
$ 9.3 $
9.9
Bonds
0.3
0.5
- -
0.3
0.5
Tax Allocation Bonds
41.5
43.2
- -
41.5
43.2
Redevelopment note
0.2
0.2
- -
0.2
0.2
Capitalized Leases
0.5
0.7
- -
0.5
0.7
Compensated Absences
5.0
4.1
- -
5.0
4.1
Total Outstanding Debt
$ 49.2 $
51.0
$ 7.6 $ 7.6
$ 56.8 $
58.6
12
CITYOFSANRAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2005
ECONOMIC CLIMATE AND NEXT YEAR'S BUDGET
The budget adopted in June 2005 projected a General Fund deficit in excess of $3.4 million for fiscal year 2005-
2006. The General Fund continues to suffer a structural deficit problem. Key action items to bring the budget
in balance are listed below:
Given the sluggish sales tax growth, State tax shifts, and cost of employee compensation, reserves will
be drawn down to close the deficit projections for FY2005-2006.
The Fleet Advisory Board provided $250,000 of relief from the Vehicle Replacement Fund for another
year.
The net proceeds from the sale of the VLF Loan Receivable as part of a statewide pool were added to
reserves in FY2004-2005. This sum will be part of the reserves drawn down to balance the budget.
Excess property taxes, also known as excess ERAF, will be used to close the gap for FY2005-2006. All
cities in the State are required to help pay for schools via property tax redistributions in the early
nineties. Marin County agencies have hit the ceiling under defined formulas, creating an excess.
Currently, a large portion is being returned to all Marin taxing agencies. Future amounts may subject
to redirection or other state mandates.
Once again, the Mayor and all of the City Council members chose to contribute to the budget
challenges by foregoing 10 percent of their monthly stipends for the coming year.
Although passage of Proposition 1A in November 2004 protects local tax revenues from realignments or
Legislative actions beginning in fiscal year 2006-2007, there is a two-year statewide hit ($1.3 billion per annum
for fiscal year 2004-2005 and fiscal year 2005-2006. The City's share of this hit is $993,000 for each year for the
two years. 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.
Beyond fiscal iLear 2005-2006
In November 2005, the citizens of San Rafael passed Measure S with a 70 percent voter approval. Although this
passage of a .50 percent transaction and use tax will become operative on April 1, 2006, the actual funds will not
be seen until September 2006. The effects of this tax will not be significant until fiscal year 2006-2007. Fiscal year
2005-2006 appears to have flat growth for sales tax; fiscal year 2006-2007 will bring some good news with the
added revenue from Best Buy. Property taxes, the most stable source of City funding, are projected to grow five
percent and there is no further loss thanks to Proposition 1A.
Future expenditures projections to be considered include rising health costs, retirement costs, ADA compliance
costs and funds for infrastructure
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.
13
This page intentionally left blank
14
BASIC FINANCIAL STATEMENTS
15
This page intentionally left blank.
16
GOVERNMENT -WIDE
FINANCIAL STATEMENTS
17
This page intentionally left blank.
18
City of San Rafael
Statement of Net Assets
June 30, 2005
Discrete
Component
Primary Government
Unit
San Rafael
Governmental
Business -Type
Sanitation
Activities
Activities
Total
District
ASSETS
Current assets:
Cash and investments
$ 37,810,048
$ 2,014,871 $
39,824,919
$ 6,435,022
Restricted cash and investments:
Held by fiscal agents
8,539,681
1,203
8,540,884
481,376
Receivables:
Accounts
2,965,766
58,223
3,023,989
-
Taxes
4,560,891
-
4,560,891
-
Grants
924,016
-
924,016
-
Interest
335,569
-
335,569
38,036
Loans
651,587
-
651,587
-
Prepaid expenses
-
-
-
34,848
Total current assets
55,787,558
2,074,297
57,861,855
6,989,282
Noncurrent assets:
COP issuance costs, net
-
-
-
50,571
Capital assets:
Nondepreciable assets
90,530,502
8,942,101
99,472,603
2,663,962
Depreciable assets, net
125,860,431
7,278,382
133,138,813
21,228,973
Total capital assets
216,390,933
16,220,483
232,611,416
23,892,935
Total noncurrent assets
216,390,933
16,220,483
232,611,416
23,943,506
Total assets
272,178,491
18,294,780
290,471,271
30,932,788
LIABILTTIES
Current liabilities:
Accounts payable
3,171,430
85,503
3,256,933
118,546
Deposit payable
29,646
-
29,646
-
Interest payable
319,823
86,392
406,215
57,873
Developer bonds payable
83,282
-
83,282
-
Arbitrage payable
25,127
-
25,127
-
Deferred revenue
166,810
11898
168,708
-
TRANS notes payable
4,245,000
-
4,245,000
-
Insurance claims payable - due within one year
1,827,459
-
1,827,459
-
Long -terns debt - due within one year
2,655,315
150,000
2,805,315
365,000
Total current liabilities
12,523,892
323,793
12,847,685
541,419
Long-term liabilities:
Compensated absences
5,037,555
-
5,037,555
-
Insurance claims payable - due in more than one year
1,887,205
-
1,887,205
-
Long-term debt - due in more than one year
41,525,445
7,455,000
48,980,445
2,824,860
Total long-term liabilities
48,450,205
7,455,000
55,905,205
2,824,860
Total liabilities
60,974,097
7,778,793
68,752,890
3,366,279
NET ASSETS
Investments in capital assets, net of related debt
194,658,126
8,615,483
203,273,609
20,753,646
Restricted
2,378,641
-
2,378,641
426,901
Unrestricted
14,167,627
1,900,504
16,068,131
6,385,962
Total net assets
5 211,204,394
$ 10,515,987 $
221,720,381
$ 27,566,509
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, 2005
Program Revenues
Charges
Operating
Capital
Total
for
Grants and
Grants mid
Program
Functions/Programs
Expenses
Services
Contributions
Contributions
Revenues
Primary government:
Governmental activities:
General government
$ 5,895,390
$ 1,831,269
$ 17,371
$ -
$ 1,848,640
Public safety
32,891,692
4,315,141
929,205
-
5,244,346
Public works and parks
16,820,453
3,298,076
1,497,956
135,176
4,931,208
Community development/redevelopment
4,624,345
1,974,527
195
623,574
2,598,296
Culture and recreation
8,450,017
3,924,360
876,408
(152,161)
4,648,607
Interest on long-term debt (unallocated)
2,129,818
-
-
-
-
Totai governmental activities
70,811,715
15,343,37-1
3,321,135
606,589
19,271,097
Business -type activity:
Parking services
2,451,941
2,604,066
-
-
2,604,066
Total primary government
$ 73,263,656
$ 17,947,439
$ 3,321,135
$ 606,589
$ 21,875,163
Component unit:
San Rafael Sanitation District
$ 5,288,582
$ 6,060,993
$ -
$ -
$ 6,060,993
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
Chanees in Net Assets
Primary Government
Governmental Business -type
Activities Activities
$ (4,046,750) $
(27,647,346)
(11,889,245)
(2,026,049)
(3,801,410)
(2,129,818)
(51,540,618)
(51,540,618)
17,385,722
17,132,100
3,642,184
4,657,817
5,151,205
47,969,028
1,112,548
876,907
15,720
49,974,203
(1,566,415)
212,770,809
Discrete
Component
Unit
San Rafael
Sanitation
Total District
$ (4,046,750) $
(27,647,346)
(11,889,245)
(2,026,049)
(3,801,410)
(2,129,818)
(51,540,618)
152,125 152,125
152,125 (51,388,493)
28,522
40,735
(15,720)
53,537
205,662
10,310,325
17,385,722
17,132,100
3,642,184
4,657,817
5,151,205
47,969,028
1,141,070
876,907
40,735
772,411
125,959
125,959
117,348
609,419
223,081,134 25,941,372
$ 211,204,394 $ 10,515,987 $ 221,720,381 $ 27,566,509
21
This page intentionally left blank.
22
FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
23
This page intentionally left blank.
24
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
General Hard - 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.
25
City of San Rafael
Balance Sheet
Governmental Funds
June 30, 2005
ASSETS
Cash and investments
Cash with fiscal agents
Receivables:
Accounts
Taxes
Grants
Interest
Loans
Due from other funds
Total assets
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable
Deposit Payable
Developer bonds payable
Arbitrage payable
Due to other funds
Deferred revenue
TRANS notes payable
Total liabilities
Fund Balances:
Reserved
Unreserved:
Designated
Undesignated, reported in:
Major funds
Non -major funds reported in:
Special revenue funds
Total fund balances
Total liabilities and fund balances
Major Funds
Special Revenue
Fund
Traffic and
Non -Major
Total
Redevelopment
Housing
Governmental
Governmental
General Agency
Mitigation
Funds
Funds
$ 4,117,782 $ 8,660,533
$ 9,323,808
$ 8,895,674
$ 30,997,797
4,330,746 3,776,552
-
432,383
8,539,681
279,136
1,043,725
- 830,784
2,153,645
31409,581
1,007,366
- 141,944
4,360,891
-
88,679
- 835,337
924,016
231,240
104,329
- -
335,569
338,194
225,536
82,857 21,726
668,313
340,579
-
- -
340,579
$ 13,047,258 $
14,906,720 $
9,406,665 $ 11,159,848
S 48,520,491
$ 487,335 $
1,698,351 $
12,165 $ 932,505 $
3,130,356
29,646
-
- -
29,646
56,782
25,000
- 11500
83,282
-
25,127
- -
25,127
-
-
- 340,579
340,579
5,934
-
- 210,262
216,196
4,245,000
-
- -
4,245,000
4,824,697
1,748,478
12,165 1,484,846
8,070,186
2,442,881 13,158,242 9,311,643 4,129,672 29,042,438
5,726,216 - - 5,109,719 10,835,935
53,464 - 82,857 - 136,321
- - - 435,611 435,611
8,222,561 13,158,242 9,394,500 9,675,002 40,450,305
$ 13,047,258 $ 14,906,720 $ 9,406,665 $ 11,159,848 $ 48,520,491
See accompanying Notes to Basic Financial Statements,
26
City of San Rafael
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Assets
June 30, 2005
Total Fund Balances -Total Governmental Funds $ 40,450,305
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 90,530,502
Depreciable, net 125,860,431
Total capital assets 216,390,933
litterest 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. (319,823)
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. 3,901,294
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 (5,037,555)
Long-term debt (44,180,760)
Total long-term liabilities (49,218,315)
Net Assets of Governmental Activities $ 211,204,394
See accompanying Notes to Basic Financial Statements.
27
This page intentionally left blank.
28
City of San Rafael
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the year ended June 30, 2005
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
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCES:
Beginning of year, as restated
End of year
Major Funds
Special Revenue
Fund
Traffic and
Redevelopment Housing
General Agency Mitigation
Non -Major Total
Governmental Governmental
Funds Funds
$ 34,658,293 $
4,574,447 $
-
$ 3,668,780
$ 42,901,520
920,754
-
-
9,239
929,993
1,066,374
-
-
22,085
1,088,459
641,566
315,672
122,097
165,071
1,244,406
6,649,752
623,574
26,500
3,222,269
10,522,095
1,722,137
6,825
159,244
9,519,416
11,407,622
260,786
426,360
-
448,339
1,135,485
45,919,662
5,946,878
307,841
17,055,199
69,229,580
5,325,389 -
- 213,802
5,539,191
25,917,593 -
52,820 5,814,459
31,784,872
5,418,931 -
- 3,855,488
9,294,419
2,185,765 1,577,849
- -
3,763,614
1,476,912 -
- 6,061,695
7,538,607
77,543 -
844,828 104,896
1,027,267
352,409 5,599,561
- 3,301,691
9,253,661
141,197 - - - 141,197
- 1,725,000 - 860,000 2,585,000
- 1,842,081 - 298,592 2,140,673
40,915,739 10,744,491 897,648 20,510,623 73,068,501
5,003,923 (4,797,613) (589,807) (3,455,424) (3,838,921)
1,858,560
2,665,354
- 4,112,630
8,636,544
(4,337,110)
(2,659,964)
- (743,250)
(7,740,324)
(2,478,550)
5,390
- 3,369,380
896,220
2,525,373
(4,792,223)
(589,807) (86,044)
(2,942,701)
5,697,188
17,950,465
9,984,307 9,761,046
43,393,006
$ 8,222,561 $
13,158,242 $
9,394,500 $ 9,675,002 $
40,450,305
See accompanying Notes to Basic Financial Statements.
29
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, 2005
Net Change in Fund Balances - Total Governmental Funds - $ (2,942,701)
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlay including capital improvement/special projects 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. 6,602,238
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 use of current financial
resources. Therefore, depreciation expense is not reported as expenditures in governmental
funds. (6,371,532)
Expenses for compensated absences accrued but not paid are reported in the Government -Wide
Statement of Activities and Changes in Net Assets, but they do not require the use of current
financial resources. Therefore, compensated absences are not reported as expenditures in
governmental funds. This amount represents current compensated absences expense incurred. (889,928)
Bond proceeds and proceeds from long-term debt provide current financial resources to
governmental funds, but issuing debt increases long-term liabilities in the Government -Wide
Statement of Net Assets. Repayment of bond principal is an expenditure in governmental funds,
but the repayment reduces long-term liabilities in the Government Wide Statement of Net Assets.
This amount represents long-term debt repayments
2,585,000
This amount represents capitalized lease obligation payments
141,197
Total long-term debt
2,726,197
Interest expense on long-term debt is reported in the Government -Wide Statement of Activities
and Changes it 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. 10,855
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. (701,544)
Change in Net Assets of Governmental Activities $ (1,566,415)
See accompanying Notes to Basic Financial Statements.
G
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.
31
City of San Rafael
Statement of Net Assets
Proprietary Funds
June 30, 2005
41.1430
Current assets:
Cash and investments
Cash with fiscal agent
Receivables:
Accounts
Interest
Loans
Due from other fund
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
Interest payable
Due to other funds
Insurance claims payable
Deferred revenue
Long -teen debt- due within one year
Total current liabilities
Long-term liabilities:
Long-term debt - due in more than a year
Total liability
NET ASSETS
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total net assets
Discrete
Component
Major Fund
Unit
Governmental
San Rafael
Activities
Parking
Sanitation
Internal
Services
District
Service Funds
$ 2,014,871 $ 6,435,022 $ 6,812,251
1,203 481,376 -
58,223 - 839,781
- 38,036 -
- 5,000
- 797,883
34,848 -
2,074,297 6,989,282 8,454,915
50,571
8,942,101
2,663,962 -
7,278,382
21,228,973 -
16,220,483
23,892,935 -
16,220,483
23,943,506 -
18,294,780
30,932,788 8,454,915
85,503 118,546 41,074
86,392 57,873 -
797,883
- 3,714,664
1,898
1501000 365,000 -
323,793 541,419 4,553,621
7,455,000 2,824,860 -
7,778,793 3,366,279 4,553,621
8,615,483 20,753,646
- 426,901 -
1,900,504 6,385,962 3,901,294
$ 10,515,987 $ 27,566,509 $ 3,901,294
See accompanying Notes to Basic Financial Statements.
32
City of San Rafael
Statement of Revenues, Expenses and Changes in Retained Earnings
Proprietary Funds
For the year ended June 30, 2005
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 from other City funds
Transfers in
Transfers out
Total other financing sources (uses)
Net income (loss)
RETAINED EARNINGS:
Beginning of year, as restated
End of year
Discrete
Component
Major Fund
Unit
Governmental
San Rafael
Activities
Parking
Sanitation
Internal
Services
District
Service Funds
$ 1,448,059 $ 6,011,052 $ 5,569,281
- - 426,511
- 49,941 -
1,156,007 - 934,116
2,604,066 6,060,993 6,929,908
1,351,206
-
-
-
-
3,030,078
250,655
-
459,285
-
1,695,422
-
-
2,337,375
-
55,270
923,123
-
362,852
181,428
3,359,351
2,019,983
5,137,348
6,848,714
584,083 923,645 81,194
125,959
-
609,419 -
28,522
117,348 97,762
(431,958)
(167,884) -
(403,436)
684,842 97,762
180,647 1,608,487 178,956
40,735
16,650 -
141,500
- 722,000
(157,220)
- (1,602,500)
25,015
16,650 (880,500)
205,662 1,625,137 (701,544)
10,310,325 25,941,372 4,602,838
$ 10,515,987 $ 27,566,509 $ 3,901,294
See accompanying Notes to Basic Financial Statements.
33
City of San Rafael
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2005
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
Interest received from certificates of participation principal cash
Principal payments on certificates of participation
Interest expenses and fiscal charges
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)
Prior period adjustment
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
Discrete
Component
Major Fund
Unit
Governmental
San Rafael
Activities
Parking
Sanitation
Internal
Services
District
Service Funds
$ 1,781,990 $ 6,060,993 $ 7,411,930
(1,604,810) (708,153) (8,272,359)
793,155 (3,446,126) -
970,335 1,906,714 (860,429)
123,959
-
609,419 -
141,500
- 722,000
(157,220)
- (1,602,500)
(15,720)
735,378 (880,500)
(147,288) (2,664,632) -
9,124 -
- (350,000) -
(345,567) (145,020) -
(492,855) (3,150,528)
28,522
92,799
97,762
28,522
92,799
97,762
490,282
(415,637)
(1,643,167)
1,325,792 7,332,035 8,455,418
$ 2,016,074 S 6,916,398 $ 6,812,251
$ 584,083 $ 923,645 $ 81,194
349,427 - -
55,270 923,123
(15,490) - (145,452)
5,000
(2,876) -
- - (175,409)
(2,704) 66,759 (2,402)
(3,937)
- - (623,360)
(245) -
36,825 983,069 (941,623)
$ 970,3M $ 1,906,714
See accompanying Notes to Basic Financial Statements.
34
NOTES TO BASIC FINANCIAL STATEMENTS
35
City of San Rafael
Notes to Basic Financial Statements
For the year ended June 30, 2005
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.
36
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
A. Reporting Entity, Continued
Blended Component Units, Continued
San Rafael Joint Powers 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.
37
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
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.
38
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
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.
Proprietant 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 the interest payable is recognize 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.
39
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
E. Cash, Cash Equivalents and Investments
The City pools cash resources of its various funds to facilitate cash management. Cash in excess of current
requirements is invested and reported as investments. It is the City's intent to hold of current investments
until maturity. However, the City may, in response to market conditions, sell investments prior to maturity
in order to improve the quality, liquidity or yield of the portfolio. The pooled interest earned is allocated
quarterly to each fund based on an average of quarterly opening and closing balances of cash and investments.
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and highly liquid
investments with original maturity of three months or less from the date of acquisition.
In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB No. 3),
certain disclosure requirements for Deposits and Investment Risks were made in the following areas:
• Interest Rate Risk
• Credit Risk
❑ Overall
❑ Custodial Credit Risk
❑ Concentrations of Credit Risk
In addition, other disclosures are specified including use of certain methods to present deposits and
investments, highly sensitive investments, credit quality at year-end and other disclosures.
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 -Tenn Interfund Receivables/Payables
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. These receivables and payables are classified as "due from other funds' or
"due to other funds" on the balance sheet. Short-term loans are classified as interfund receivables or
payables.
40
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
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)
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 n1 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.
41
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
H. Taxpayer -Assessed Taxes Accrual, Continued
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 Occupancu 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 30th 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 3011, period received subsequent to the fiscal
year end.
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.
42
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
L Capital Assets, Continued
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. 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.
43
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
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, 2005, based on calculations by the City's management, proceeds of taxes did not exceed related
appropriations. Further, Section 5 of Article XIIIB allows the City to designate a portion of fund balances
for general contingencies to be used for any purpose.
N. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates
and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could
differ from those estimates.
O. NetAssets/Fund Balance
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 - This amount is restricted by external creditors, grantors, contributors, or laws or regulations
of governments.
Unrestricted - 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.
44
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
O. NetAssetsTund Balance, Continued
Fund Financial Statements
Reservations of fund balances of governmental funds and net assets of proprietary funds are created to
either satisfy legal covenants including State laws, that require a portion of the fund equity be
segregated, or identify the portion of the fund equity not available for future expenditures.
P. Reclassification
Certain reclassifications have been made to prior year financial data in order to conform to the current year
presentation.
Q. Implementation of New GASB Pronouncements
In 2005, the City adopted a new accounting standard in order to conform to the following Governmental
Accounting Standards Board Statements:
➢ Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB No. 3) - The Statement
addresses common deposit and investment risks related to credit risk, concentration of credit risk,
interest rate risk, and foreign currency risk. The Statement requires certain disclosures of
investments to address the different risk factors.
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 $1,900,782 at June 30, 2005. Bank balances at June 30,
2005 were $3,373,976 which were fully insured and collateralized with securities held by the pledging financial
institutions in the City's name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the
City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this mariner
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.
45
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
2. CASH AND INVESTMENTS, Continued
A. Cash Deposits, Continued
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 follows the practice of pooling cash and investments of all funds, except for funds required to be held
by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and
investments is allocated on an accounting period basis to the various funds based on the period -end cash and
investment balances. Interest income from cash and investments with fiscal agents is credited directly to the
related fund.
B. Investments
The City is authorized by State statutes and in accordance with the City's Investment Policy (the Policy),
adopted on April 18, 2005, to invest in the following:
Maximum
Authorized Investment Type Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment in
One Issuer
U.S. Government Obligation
5 years
No limit
No limit
U.S. Agency Securities and Instrumen
5 years
No limit
No limit
Repurchase agreements
1 year
No limit
No limit
Primer Commercial Paper
270 days
25%
$1,000,000
Banker Acceptance
180 days
40%
$2,000,000
Medium -Term Corporate Notes
5 years
30%
$1,000,000
Negotiable Certificates of Deposit
5 years
30%
No limit
Non-negotiable certificates of Deposit
180 days
No limit
No limit
Local Agency Investment Fund
N/A
N/A
N/A
Money Market/Mutual Funds
N/A
10%
N/A
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for
External Investment Pools, investments were stated at fair value using the aggregate method in all funds and
component units, resulting in the following investment income in all funds and component units:
Interest income $ 1,212,674
Unrealized loss in changes in
fair value of investments (100,126)
Total investment income $ 1,112,548
46
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
2. CASH AND INVESTMENTS, Continued
B. Investments, Continued
The City portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if
interest rates have risen, the portfolio value will have declined. If interest rates have fallen, the portfolio
value will have risen. In accordance with GASB Statement No. 31, the portfolio for year-end reporting
purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio's change in
value. These portfolio value changes are unrealized unless sold. The City's policy is to buy and hold
investments until maturity dates.
The City's investments are carried at fair value as required by generally accepted accounting principles.
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California
Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City's
investments with LAIF at June 30, 2005, include a portion of the pool funds invested in Structured Notes and
Asset -Backed Securities. These investments include the following:
Structured Notes - are debt securities (other than asset -backed securities) whose cash flow characteristics
(coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have
embedded forwards or options.
Asset -Backed Securities, the bulk of which are mortgage -backed securities, entitle their purchasers to
receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool
of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2005, the City had $28,147,377 invested in LAIF, which had invested 2.406% of the pool
investment funds in Structured Notes and Asset -Backed Securities. The LAIF fair value factor of 0.997747553
was used to calculate the fair value of the investments in LAIF.
C. Summary of Cash and Investments
The following is a summary of cash and investments at June 30, 2005:
Government -Wide Statement of Net Assets
Governmental
Business -Type
Activities
Activities
Total
Cash and Investments
$ 37,810,048
$ 2,014,871
$
39,824,919
Restricted Cash and
Investments
$ 8,539,681
$ 1,203
$
8,540,884
Total Cash and Investments
$
48,365,803
47
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
2. CASH AND INVESTMENTS, Continued
D. Risk Disclosures
Interest Risk: Interest rate risk is the market value fluctuation due to overall changes in the interest rates. It is
mitigated by limiting the average maturity of the City's portfolio not to exceed five years.
Investments stated at fair value held in the City Treasury grouped by maturity date at June 30, 2005, are shown
below:
Investment Type
Deposits
U.S. Treasury Bill
Securities of U.S, Government Treasury and Agencies:
Ff ILB
FNMA
F1fLMC
FFCB
Corporate Notes:
Bank One Corp
Bear Sterns
Local Agency Investment Funds
Total
Investment Maturities (in years)
Fair Value 1 year or less 1-2 years 2-3 years 3-4 years 4-5 years
$ 1,900,782 S 1,900,782
494,850
494,850 - - - -
3,504,262
498,100 - 990,500 2,015,662 -
2,515,548
531,148 987,450 996,950 - -
1,995,400
- 999,500 - 496,100 499,800
248,800
- - - - 248,800
507,600
507,600 - - - -
510,300
510,300 - - - -
28,147,377
28,147,377 - - -
$ 39,824,939 $ 32,590,157 $ 1,986,950 $ 1,987,450 S 2,511,762 $ 748,600
Liquidihj Stmldard: As a means of limiting its exposure to fair value losses arising from rising interest rates, the
City's investment policy shall be matched with anticipated cash flow and known future liabilities.
Credit Risk. Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real
or perceived change in the ability of the issuer to repay its debt. According to the City's investment policy,
no more than 10% of the total portfolio or $1,000,000 whichever is less, may be invested in securities of any
single issuer, other than the U.S. Government, its agencies and instrumentalities, and LAIR If a security is
downgraded by either Moody's or S&P to a level below the minimum quality required by the City, it shall
be the City's policy to sell that security as soon as practicable.
48
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
2. CASH AND INVESTMENTS, Continued
D. Risk Disclosures, Continued
At June 30, 2005, the City had the following deposits and investments:
Credit Quality Ratings
Moody's S&P
Deposits Not Rated
U.S. Treasury Bills
Aaa
AAA
Securities of U.S. Government Agencies:
FHLB
Aaa
AAA
FNMA
Aaa
AAA
FHLMC
Aaa
AAA
FFCB
Aaa
AAA
Corporate Notes:
Bank One Corp
Aaa
A+
Bear Sterns
Al
A
Local Agency Investment Funds Not Rated
Custodial Credit Risk: For an investment, custodial credit risk is the risk that, in the event of the failure of the
counterparty, the City will not be able to recover the value of its investments or collateral securities that are in
the possession of an outside party. None of the City's investments were subject to custodial credit risk.
E. 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, 2005, cash and investments with fiscal agents totaling $8,540,884
were recorded at fair value.
F. Component Unit -Sanitation District Cash and Investments
All of the District's cash is deposited with the County of Marin 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. 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, 2005. The Fitch credit quality rating for the Marin County Pool at June 30, 2005
was AAA/V1+.
The District's investment in these pools do not represent specific securities in physical or book entry form,
and accordingly, are not exposed to custodial credit risk.
49
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
2. CASH AND INVESTMENTS, Continued
F. Component Unit -Sanitation District Cash and Investments, Continued
Cash and investments at June 30, 2005, consisted of the following:
Cash and investments
Petty cash
Total
Unrestricted cash:
Cash
Restricted cash:
Certificates of participation
Total
3. LOANS RECEIVABLE
The City had the following loans receivable at June 30, 2005:
Loan to City Manager
Employees' Computer Loans
Centertown Associates
One "H " Street Associates
Marin Bocce Federation
Marin Housing Development
Muir Terrance Homes
ORCA Swim Club
Total
Government -
Wide
Financial
Statements
Governmental
A
$ 321,289
16,905
225,536
82,857
$ 6,916,323
75
$ 6,916,398
$ 6,435,022
481,376
$ 6,916,398
Fund Financial Statements
Governmental Internal
Funds Service Funds
$ 321,289 $ -
16,905 -
225,536 -
82,857 -
- 21,726 -
5,000 - 5,000
$ 651,587 $ 668,313 $ 5,000
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, 2005 was $321,289.
50
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
3. LOANS RECEIVABLE, Continued
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, 2005 was $16,905.
The City loaned Centertown Associates, Ltd. $303,000 with 3% interest rate due semiannually. The final
payment is due on July 31, 2065. The outstanding balance at June 30, 2005 was $225,536.
The City loaned One "H" Street Associates $100,000 with 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, 2005 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, 2005 was $21,726. 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 during the calendar year 2005 in two equal annual installments. The
outstanding balance at June 30, 2005 was $5,000.
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. $5,000 was paid off by the Federation during the period, the
remaining loan was forgiven by Council on March 21, 2005.
The City entered into an interest fee loan with Marin Housing Development in the amount of $100,000. All
principal and interest shall be due on January 30, 2005. The outstanding balance at June 30, 2004 was
$90,173. The loan was forgiven on March 7, 2005.
51
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
4. INTERFUND TRANSACTIONS
A. Due To/FromOther Funds
At June 30, 2005, the City had the following due to/ other funds:
Due To Other Funds
Non -major Governmental Funds
Internal Service Funds
Total
B. Transfers
Due From Other Funds
General Internal Service
Fund Funds Total
$ 340,579 $ - $ 340,579
- 797,883 797,883
$ 340,579 $ 797,883 $ 1,138,462
Transfers for the year ended June 30, 2005, were as follows:
Major Funds:
_
General Pond
0
p
Redevelopment Agency
v
Non -Major Govermnentsl Fonds
m
Parking Services Enterprise Fund
F
Internal Service Funds
Total
Transfers In
Proprietary Funds
Major Rods
Non -Major
Parking Service
hvenal
General
Redevelopment
Governmental
Enterprise
Service
Fond
Agency
Funds
Fonds
Fonds
Total
5 -
9 -
9 3,637,110
5 - $
700,000 5
4,337,110
-
2,659,964
-
-
-
2,659,964
279,750
5,390
294,610
143,500
22,000
743,250
112,120
-
45,100
-
-
157,220
1,466,690
-
135,810
-
-
1,602,500
S 1,858,560 $ 2,665,354 $ 4,112,630 $ 141,500 $ 722,000 $ 9,500,044
Transfers to the General Fund were for administrative costs and claims liabilities.
Transfers to the Redevelopment Agency Fund were for capital projects and debt service payments.
Transfers to the Non -Major Governmental Funds were for administrative costs, capital projects and special
projects.
Transfers to the Parking Service Enterprise Fund were for reimbursement for construction of office space
that was utilized by the fire department instead of parking services.
Transfers to the Internal Service Funds were for benefits and claims reserves.
52
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
5. CAPITAL ASSETS
A. Government -Wide Financial Statements
At June 30, 2005 the City's capital assets consisted of the following:
Non -depreciable assets:
Land
Construction in process
Total non -depreciable assets
Depreciable assets:
Land improvements
Buildings and structures
Machinery and equipment
Infrastructure
Subsurface lines
Sewage collection facilities
General plant and administration
Less accumulated depreciation
Total depreciable assets, net
Total capital assets
Governmental Business -Type
Activities Activities Total
Discrete
Component
Unit
$ 82,146,643 $
8,614,064
$ 90,760,707
$ 115,329
8,383,859
328,037
8,711,896
2,548,633
90,530,502
8,942,101
99,472,603
2,663,962
7,419,678
-
7,419,678
-
24,831,954
7,578,688
32,410,642
-
12,851,149
559,093
13,410,242
-
166,408,256
-
166,408,256
-
-
-
12,152,655
-
-
-
25,495,451
-
-
-
218,500
211,511,037
8,137,781
219,648,818
37,866,606
(85,650,606)
(859,399)
(86,510,005)
(16,637,633)
125,860,431
7,278,382
133,138,813
21,228,973
$ 216,390,933 $
16,220,483
$ 232,611,416
$ 23,892,935
53
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
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, 2005:
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 structues
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total capital assets,
being depreciated, net
Govermnental activities
capital assets, net
Balance
July 1, 2004
Additions Retirements
Prior Period
Adjustments/
Balance
Reclassifications
June 30, 2005
$ 81,455,082
$ 691,561 $
$ -
$ 82,146,643
11,941,122
5,627,256
-
(9,184,519)
8,383,859
93,396,204
6,318,817
-
(9,184,519)
90,530,502
7,419,678
-
-
-
7,419,678
24,751,954
-
-
80,000
24,831,954
13,065,112
390,382
(524,345)
(80,000)
12,851,149
166,408,256
-
-
-
166,408,256
211,645,000
390,382
(524,345)
-
211,511,037
(2,515,801)
(274,647)
-
-
(2,790,448)
(5,007,801)
(534,161)
-
-
(5,541,962)
(6,616,569)
(936,217)
417,394
_. -
(7,135,402)
(65,556,287)
(4,626,507)
-
-
(70,182,794)
(79,696,458)
(6,371,532)
417,394
(85,650,606)
131,948,542
(5,981,150)
(106,961)
125,860,431
$ 225,344,746
$ 337,667 $
(106,961)
$ (9,184,519)
$ 216,390,933
Depreciation expense by program for capital assets for the year ended June 30, 2005 were as follows:
General government
$ 141,790
Public safety
525,513
Public works and parks
5,387,822
Community development/redevelopment
35,482
Culture and recreation
280,925
Total depreciation expense
$ 6,371,532
54
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
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, 2004 Additions
$ 7,661,071 $ - $
480,749 147,288
8,141,820 147,288
1,163,000 -
218,357 40,736
1,381,357 40,736
(697,910)
(23,260)
(106,218)
(19,140)
(804,128)
(42,400)
577,229 (1,664)
Prior Period
Adjustment/ Balance
Retirements Reclassification June 30, 2005
$ 952,993
$ 8,614,064
- (300,000)
328,037
652,993
8,942,101
6,415,698
7,578,698
300,000
559,093
6,715,688
8,137,781
- -
(721,170)
(12,871)
(138,229)
(859,399)
6,715,688 7,278,382
$ 8,719,049 $ 145,624 $ - $ 7,368,681 $ 16,220,483
Depreciation expense for Business -type activities was $42,400 for the year ended June 30, 2005.
55
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
5. CAPITAL ASSETS, Continued
A. Government -Wide Financial Statements, Continued
A summary of the District's fixed assets at June 30, 2005, follows:
Balance
Reclassification/
Balance
July 1, 2004
Additions Retirements
June 30, 2005
Capital assets, not being depreciated:
Land
$ 115,329
$ - $ -
$ 115,329
Construction in progress
107,311
2,441,322
2,548,633
Total capital assets,
not being depreciated
222,640
2,443,322 -
2,663,962
Capital assets, being depreciated:
Subsurface lines
12,152,655
- -
12,152,655
Sewage collection facilities
25,375,456
119,995 -
25,495,451
General plant and administration
98,535
119,965 -
218,500
Total capital assets,
being depreciated
37,626,646
239,960 -
37,866,606
Accumulated depreciation:
Subsurface lines
(7,292,733)
(228,821) -
(7,521,554)
Sewage collection facilities
(8,389,617)
(671,254) -
(9,060,871)
General plant and administration
(40,473)
(14,735) -
(55,208)
Less accumulated depreciation
(15,722,823)
(914,810) -
(16,637,633)
Total capital assets,
being depreciated, net
21,903,823
(674,850) -
21,228,973
Capital assets, net
$ 22,126,463
$ 1,766,472 $ -
$ 23,892,935
Depreciation expense for the District was $914,810 for the year ended June 30, 2005.
56
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
6. LONG-TERM DEBT
Long-term debt outstanding at June 30, 2005, was as follows:
Balance
Balance
Due in
Due in More
hdv 1, 2004 Additions
Deletions
June 30, 2005
One Year
Than One Year
Governmental Activities:
San Rafael Joint Powers Financing Authority:
1997 Authority Revenue Bonds
$ 2,340,000 $ -
$ (655,000)
$ 1,685,000
$ 530,000
$ 11155,000
San Rafael Redevelopment Agency Tax Allocation Bonds:
Series 1999
20,794,004 -
(605,000)
20,189,004
630,000
19,559,004
Series 2002 --
22,445,900
(1,120,000)
21,325,000
1,145,000
20,180,000
Total tax allocation bonds
43,239,004 (1,725,000) 41,514,004 1,775,000 39739004
Special Assessment Bonds (with governmental commitment):
Peacock Gap Refunding 395,000
Mariposa Road Assessment 80,000
Total special assessment bonds
(190,000) 205,000 205,000 -
(15,000) 65,000 15,000 50,000
475,000 - (205,000) 270,000 220,000 50,000
Note Payable
169,000
- -
169,000
-
169,000
Capitalized Lease Obligations
683,953
- (141,197)
542,756
130,315
412,441
Compensated Absences
4,147,627
3,811,513 (2,921,585)
5,037,555
-
5,037,555
Total governmental long -tern debt
51,054,584
3,811,513 (5,647,782)
49,218,315
2,655,315
46,563,000
Business -Type Activities
2003 Authority Lease Revenue Bonds
7,605,000
-
7,605,000
150,000
7,455,000
Total long-term debt
$ 58,659,584 $
3,811,513 $ (5,647,782)
$ 56,823,315
$ 2,805,315
$ 54,018,000
Discrete Component Unit - San Rafael Sanitation District:
2001 Certificates of Participation
$ 3,511,892 $
$ (322,032)
$ 3,189,860
$ 365,000
$ 2,824,860
A. 1997 Authority 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 $1,685,000 as of June 30, 2005.
57
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
6. LONG-TERM DEBT, Continued
A. 1997Authority Revenue Bonds -Original Issue $5,250,000, Continued
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
2006
$ 530,000
$ 80,850
$ 610,850
2007
185,000
61,452
246,452
2008
175,000
51,465
226,465
2009
185,000
41,293
226,293
2010
190,000
30,510
220,510
2011-2012
420,000
32,300
452,300
Total
$ 1,685,000
$ 297,870
$ 1,982,870
B. 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 $20,189,004 as of June 30, 2005.
58
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
6. LONG-TERM DEBT, Continued
B. 1999 Tax Allocation Bonds - Original Issue $23,504,004, Continued
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
2006
$ 630,000
$ 865,525
$ 1,495,525
2007
665,000
834,769
1,499,769
2008
695,000
802,469
1,497,469
2009
730,000
768,625
1,498,625
2010
765,000
733,119
1,498,119
2011-2015
4,440,000
3,045,600
7,485,600
2016-2020
6,667,650
1,784,375
8,452,025
2021-2034
5,596,354
319,750
5,916,104
Total
$ 20,189,004
$ 9,154,232
$ 29,343,236
C. 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
semiannually on June 1 and December 1. The Bonds maturing on or after December 1, 2013, are subject to
optional redemption prior to maturity, in whole or in part, either in inverse order of maturity or in inverse
order of maturity and by lot within any one maturity 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 $21,325,000 as of June 30,
2005.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
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
1,290,000
778,337
2,068,337
2011-2015
7,495,000
2,856,543
10,351,543
2016-2020
6,595,000
869,919
7,464,919
2021
1,205,000
51,745
1,256,745
Total
$ 21,325,000
$ 8,094,124
$ 29,419,124
59
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
6. LONG-TERM DEBT, Continued
D. 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, 2005, the outstanding balance of the bonds was $205,000.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30, Principal Interest Total
2006 $ 205,000 $ 5,894 $ 210,894
Total $ 205,000 $ 5,894 $ 210,894
E. 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, 2005, the outstanding balance of the bonds was $65,000.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30, Principal Interest Total
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
$ 65,000 $
9,460 $
74,460
F. Note Payable
At June 30, 2005, 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. The outstanding balance of the loan at June 30, 2005 was
$169,000 plus accrued interest of $131,313 which is recorded as interest payable.
60
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
6. LONG-TERM DEBT, Continued
G. Capitalized Lease Obligations
The City leased furniture in the amount of $30,939. The monthly lease payment of $615 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 annual lease payment of $72,295 for five
years started in September 2004. The lease expires in 2009.
The future minimum lease obligations are due as follows:
Year Ending
June 30,
2006
2007
2008
2009
Present value of minimum
lease payments
H. Compensated Absences
Furniture Trucks Total
$ 615 $ 129,700 $ 130,315
- 133,524 133,524
137,433 137,433
141,484 141,484
$ 615 $ 542,141 $ 542,756
The City accrues a liability for vested and unpaid compensated absences (accrued vacation, sick leave,
compensatory time and administrative leave). The balance at June 30, 2005 was $5,037,555.
L 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, 2005.
61
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
6. LONG-TERM DEBT, Continued
I. 2003 Authority Lease Revenue Bonds -Original Issue $7,605,000, Continued
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
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
170,000
326,666
496,666
2011-2015
955,000
1,532,305
2,487,305
2016-2020
1,175,000
1,316,262
2,491,262
2021-2025
1,460,000
1,023,796
2,483,796
2026-2030
1,860,000
627,000
2,487,000
2031-2033
1,355,000
137,750
1,492,750
Total
$ 7,605,000
$ 6,318,443
$ 13,923,443
J. 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 outstanding of the 2001 Certificates of Participation was $3,360,000 at June 30, 2005.
62
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
6. LONG-TERM DEBT, Continued
K Discrete Component Unit - San Rafael Sanitation District - 2001 Certificates of Participation -
Original Issue $4,710,000
Total debt outstanding as of June 30, 2005 net of discounts and deferred amount on refunding were as
follows:
Principal outstanding at June 30, 2004
$ 3,360,000
Less:
Discount
(21,189)
Deferred amount on refunding
(148,951)
Net bonds outstanding at June 30, 2005
$ 3,189,860
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
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
430,000
69,310
499,310
2011-2012
1,380,000
71,500
1,451,500
Total $
3,360,000
$ 580,917
$ 3,940,917
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, 2005
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, 2005
San Rafael Redevelopment Agency
162-175 Belvedere
Multifamily Housing Revenue Bonds
Apartments
$ 3,590,529
$ 1,434,051
California Statewide Communities
Development Authority Revenue Bonds
St. Marks School
5,605,000
5,605,000
San Rafael Redevelopment Agency
Variable Rate Demand Multifanuly
55 Fairfax
Housing Revenue Bonds
Apartrnents
3,000,000
2,900,000
San Rafael Redevelopment Agency
San Rafael Conunons
Multifamly Housing Revenue Bonds-2001
Apartments
6,100,000
5,980,116
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, 2005
8. FUND BALANCES RESERVATIONS AND DESIGNATIONS, Continued
A detailed schedule of the fund balances at June 30, 2005, is shown as follows:
Major Funds
Special Revenue
Traffic and
Non -Major
Redevelopment
Housing
Governmental
General
Agency
Mitigation
Funds
Total
Reserved:
Encumbrances
$ 172,996
$ 5,983,185
$ -
$ 102,141
$ 6,258,322
Petty cash
3,395
-
-
-
3,395
General plan
20,543
-
-
-
20,543
Department savings
115,036
-
-
-
115,036
Employee M.O.U.
269,330
-
-
-
269,330
Loans receivable
821,289
273,725
-
21,726
1,116,740
Debt service
-
32,015
-
1,269,070
1,301,085
Improvement projects
-
5,519,317
-
1,765,043
7,284,360
Information systems projects
242,517
-
-
-
242,517
Equipment replacement
-
-
-
21,100
21,100
Buildings and structures
-
-
-
40,000
40,000
Facility closures
-
-
-
50,000
50,000
Assessment districts/open space
67,286
-
-
360,592
427,878
Mello Roos assessment
-
-
-
500,000
500,000
Traffic Mitigation
-
-
9,311,643
-
9,311,643
Housing -
Triple Flip True Up
730,489
1,350,000
-
-
2,080,489
Total reserved
2,442,881
13,158,242
9,311,643
4,129,672
29,042,438
Unreserved, Designated:
Emergency and cash flow
5,726,216
-
-
63,641
5,789,857
Library/endowments
-
-
-
514,456
514,456
Public safety
-
-
-
160,397
160,397
Grant projects
-
-
-
1,087,936
1,087,936
Park projects
-
-
-
871,741
871,741
Gas tax projects
-
-
-
1,492,415
1,492,415
Street projects
-
-
-
919,133
919,133
Total designated
5,726,216
-
-
5,109,719
10,835,935
Unreserved, Undesignated
53,464
-
82,857
435,611
571,932
Total
$ 8,222,561
$ 13,158,242
$ 9,394,500
$ 9,675,002
$ 40,450,305
65
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
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
Traffic and Housing Mitigation
Non -Major Funds:
Recreation Revolving
Library
Stormwater
Development Services
Parkland Dedication
Capital Improvement
Park Capital Projects
Total
Appropriations
Expenditures
Excess
$ 40,691,127
$ 40,915,739
$ 224,612
43,680
897,648
853,968
2,691,990
2,769,820
77,830
207,490
231,366
23;876
1,722,265
1,750,394
28,129
-
126,051
126,051
-
301,095
301,095
141,000
211,328
70,328
-
21,916
21,916
$ 45,497,552 $ 47,225,357 $ 1,727,805
General Fund - General plan costs and other planning projects, which are covered by building fees, were
budgeted in prior years but spent in the current year.
Traffic and Housing Mitigation - The East San Rafael projects, including widening of Scotland Yard were
funded and budgeted in prior years but spent in the current year.
Recreation Revolving - The Falkirk Greenhouse and Garden project budgeted in previous years but spent
in the current year exceeded expectations resulting in higher costs
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.
Development Services - The Loch Lomond Marina EIR and mapping services were funded and budgeted in
prior years, but spent in the current year.
Parkland Dedication - The McInnis State Park project budgeted in previous years was spent 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.
Park Capital Projects - The special event project budgeted in previous years was spent in the current year.
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
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, California
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
35.16% and 24.95% of payroll to the Fund for Police and Fire personnel, respectively, and 20.37% for other
covered employees for the year ended June 30, 2005. 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 1.5%
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, 2005, of $7,630,990 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 7.1%. 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, 2005
10. EMPLOYEES' RETIREMENT PLAN, Continued
D. Three -Year Historical Trend Information
Fiscal Year Annual Pension Percentage of Net Pension
Ending Cost (APC) APC Contributed Obligation
6/30/2003 $ 3,349,490 100%
6/30/2004 3,879,356 100%
6/30/2005 7,630,990 100%
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 and employees contributed $68,362. The total covered payroll of employees
participating in the plan for the year ended June 30, 2005, was $1,822,982. The total payroll for the year was
$33,776,211.
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 $119,055 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, 2005
12. POST -EMPLOYMENT HEALTHCARE BENEFITS
The City provides certain health care benefits for retired employees and their spouses. The benefit
provisions were established under the authority of the 1937 Act, Section 31450, et. seq. of the Government
Code. Substantially all of the City's employees may become eligible for these benefits if they are receiving a
retirement benefit from the Marin County Employees' Retirement Fund within 120 days of retirement from
City employment. At June 30, 2005, 241 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, 2005, those costs totaled $1,376,589,
of which $839,781 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, $750,000 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 $25,000,000. The City purchases commercial insurance for workers' compensation
claims in excess of the self -insured amount up to statutory unlimited excess. The City also purchases
commercial insurance for property damage claims with insured amount of $54,977,235. The City accounts
for and finances its uninsured risks of loss in the internal service funds. The City had established a claims
liability of $3,714,664 at June 30, 2005, 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, 2003,
2004, and 2005, are as follows:
Balance at
Current Year
General
Beginning of
Claims and Changes
Claim
Liability
Fiscal Year
In Estimates
Payments _
2002-03
$ 504,972
$ 1,115,872
$ (1,127,444) $
2003-04
493,400
835,521
(641,776)
2004-05
687,145
716,619
(898,505)
Workers'
Balance at
Compensation
Beginning of
Liability
Fiscal Year
2002-03
$ 3,163,937
2003-04
3,277,333
2004-05
3,650,879
Current Year
Claims and Changes
Claim
In Estimates
Payments
$ 1,470,860
$ (1,357,464)
1,917,432
(1,543,886)
199,115
(640,589)
$
Balance at
End of
Fiscal Yeai
493,400
687,145
505,259
Balance at
End of
Fiscal Year
3,277,333
3,650,879
3,209,405
69
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
13. RISK MANAGEMENT, Continued
The California Point Pozaers Risk Management Authorihl - 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 $337,921 in premiums to the Risk Management
Authority during the fiscal year ended June 30, 2005. Condensed financial information for the California
Joint Powers Risk Management Authority for the fiscal year ended June 30, 2005, was as follows:
Assets $ 73,241,812
Liabilities $ 43,955,166
Net assets 29,286,646
Total liabilities and net assets $ 73,241,812
Revenues $ 19,659,350
Expenses (14,632,425)
Refunds to members (5,530,768)
Change in net assets $ (503,843)
14. JOINT VENTURES, JOINTLY GOVERNED ORGANIZATIONS AND RELATED PARTY
TRANSACTIONS
A. Joint Ventures
The City participates in various organizations that are formally organized and are separate entities
established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these
entities exercise full powers and authorities within the scope of the related Joint Powers Agreement
including the preparation of 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 Libraril Systetn (St stem) - 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, 2005
14. JOINT VENTURES, JOINTLY GOVERNED ORGANIZATIONS AND RELATED PARTY
TRANSACTIONS, Continued
A. Joint Ventures, Continued
The Marin Street Light Acquisition Joint Powers Authorihj (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 ErneMencit Radio Authorihj (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, California 94903.
B. Jointly Governed Organizations
The Counhlzuide 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 Joint 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.
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.
71
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
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.
However, this is only an estimate and the City does not have a measurable amount at this time. Therefore,
no liability has been recorded.
On October 1, 2002, the Agency entered 'alto 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. PRIOR PERIOD ADJUSTMENT
Government -Wide Financial Statements
The City recorded capital assets in the incorrect activity. The adjustment of $7,368,681 was a transfer
between governmental activities and business -type activities.
The City combined the debt service fund with the Parking Services Enterprise Fund and therefore,
reclassified the Bonds to the Parking Services Enterprise Fund. As a result a prior period adjustment was
recorded to record the 2003 Authority Lease Revenue Parking Bonds in the Enterprise fund and close the
Debt Service fund. The adjustment was $7,255,573.
In the governmental activities, the capital assets were overstated by $1,815,838. The City did not retire the
Construction In Progress portion that was added to the active assets category.
Net Assets,
Prior Period Adjustments
as Previously
Long -Term
Capital
Net Assets,
Reported
Debt
Assets
as Restated
Governmental Activities
Net assets
$ 214,699,755
$
7,255573
$
(9,184,519)
$
212,770,809
Total Governmental Activities
$ 214,699,755
$
7,255573
$
(9,184,519)
$
212,770,809
Business -type activities:
Net assets
$ 10,197,217
$
(7,255,573)
$
7,368,681
$
10,310,325
Total business -type activities
$ 10,197,217
$
(7,255,573)
$
7,368,681
$
10,310,325
72
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2005
16. PRIOR PERIOD ADJUSTMENT, Continued
Fund Financial Statements
The City combined the debt service fund with the Parking Services Enterprise Fund and therefore,
reclassified the Bonds to the Parking Services Enterprise Fund. As a result a prior period adjustment was
recorded to record the 2003 Authority Lease Revenue Parking Bonds in the Enterprise fund and close the
Debt Service fund. The Fund Balance of the debt service fund was $349,427. The total adjustment made to
the Enterprise fund was $7,255,573.
The City recorded capital assets in the incorrect activity. The adjustment of $7,368,681 was a transfer
between governmental activities and business -type activities.
Governmental Funds
2003 Authority Lease Revenue
Parking Bonds Debt Service Fund
Total Governmental Activities
Enterprise Fund
Parking Services
Total business -type activities
Net Assets, Prior Period Adjustments
as Previously Long -Term Capital Net Assets,
Reported Debt Assets as Restated
$ 349,427 $ (349,427) $ - $ -
$ 349,427 $ (349,427) $ - $ -
$ 10,197,217 $ (7,255,573) $ 7,368,681 $ 10,310,325
$ 10,197,217 $ (7,255,573) $ 7,368,681 $ 10,310,325
73
This page intentionally left blank.
74
REQUIRED SUPPLEMENTARY INFORMATION
75
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.
76
City of San Rafael
Required Supplementary Information, Continued
For the year ended June 30, 2005
1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Budgetanj Comparison Schedule, General Fund
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES:
Taxes and special assessments
$ 33,081,190
$ 34,165,222
$ 34,658,293
$ 493,071
Licenses and permits
915,505
916,429
920,754
4,325
Fines and forfeitures
903,870
913,740
1,066,374
152,634
Use of money and property
297,100
397,100
641,566
244,466
Intergovernmental
4,970,740
6,480,616
6,649,752
169,136
Charges for services
1,411,480
1,556,380
1,722,137
165,757
Other
177,880
177,880
260,786
82,906
Total revenues
41,757,765
44,607,367
45,919,662
1,312,295
EXPENDITURES:
Current:
General government
5,149,550
5,314,893
5,325,389
(10,496)
Public safety
25,912,395
25,928,011
25,917,593
10,418
Public works and parks
5,682,052
5,610,400
5,438,931
171,469
Community development/redevelopment
2,179,005
2,216,457
2,185,765
30,692
Culture and recreation
1,495,070
1,512,446
1,476,912
35,534
Capital outlay
72,920
72,920
77,543
(4,623)
Capital improvement/special projects
20,000
36,000
352,409
(316,409)
Debt service:
Capitalized lease obligation
-
-
141,197
(141,197)
Total expenditures
40,510,992
40,691,127
40,915,739
(224,612)
REVENUES OVER (UNDER) EXPENDITURES
1,246,773
3,916,240
5,003,923
1,087,683
OTHER FINANCING SOURCES (USES):
Transfers in
1,054,830
1,058,560
1,858,560
800,000
Transfers out
(3,012,110)
(3,862,110)
(4,337,110)
(475,000)
Total other financing sources (uses)
(1,957,280)
(2,803,550)
(2,478,550)
325,000
Net change in fund balance
$ (710,507)
$ 1,112,690
2,525,373
$ 1,412,683
FUND BALANCE:
Beginning of year 5,697,188
End of year $ 8,222,561
77
City of San Rafael
Required Supplementary Information, Continued
For the year ended June 30, 2005
1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Budgetary Comparison Schedule, Redevelopment AVncif Fuud
REVENUES:
Taxes and special assessment
Use of money and property
Intergovernmental
Charges for services
Other
Total revenues
EXPENDITURES:
Current:
Community development/redevelopment
Capital improvement/special projects
Debt Service:
Principal
Interest and fiscal charges
Total expenditures
REVENUE 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
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 4,467,090 $
4,467,090
$ 4,574,447 $
227,000
277,000
315,672
-
3,289,185
623,574
16,560
8,560
6,825
2,100
1,069,600
426,360
4,712,750
9,111,435
5,946,878
107,357
38,672
(2,665,611)
(1,735)
(643,240)
1,380,080
1,730,303
1,577,849
152,454
220,700
7,376,586
5,599,561
1,777,025
1,725,000
1,725,000
1,725,000
-
1,842,090
1,842,090
1,842,081
9
5,167,870
12,673,979
10,744,491
1,929,488
(455,120)
(3,562,544)
(4,797,613)
(1,235,069)
589,390
2,665,354
2,665,354
-
(584,000)
(2,659,964)
(2,659,964)
-
5,390
3,390
5,390
-
$ (449,730) $ (3,557,154) (4,792,223) $ (1,235,069)
.'� 1J,1JO,L4L
78
City of San Rafael
Required Supplementary Information, Continued
For the year ended June 30, 2005
1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Budgetary Comparison Schedule, Traffic and Housing Mitigation Special Revenue Fund
REVENUES:
Use of money and property
Intergovernmental
Charges for services
Total revenues
EXPENDITURES:
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)
$ 225,000 $ 225,000 $ 122,097 $ (102,903)
- - 26,500 26,500
- - 159,244 159,244
225,000 225,000 307,841 82,841
43,680 43,680
43,680 43,680
$ 181,320 $ 181,320
52,820
(9,140)
844,828
(844,828)
897,648
(853,968)
(589,807) $
936,809
9,984,307
$ 9,394,500
79
City of San Rafael
Required Supplementary Information, Continued
For the year ended June 30, 2005
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
6/30/2002
$ 190,563,000
$ 187,118,000
$ 3,445,000
6/30/2003
185,632,000
219,845,000
(34,213,000)
6/30/2004
188,956,000
248,665,000
(59,709,000)
* Latest information available.
Excess Assets
Over AAL
Funded
Covered
As a % of
Ratio
Payroll
Payroll
102%
$ 27,223,000
12.7%
84%
27,453,000
(124.6)%
76%
29,299,000
(203.8)%
a
SUPPLEMENTARY INFORMATION
81
This page intentionally left blank.
a
NON -MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS:
Recreation Revolving Fund - Established to administer the Recreation Department's program and facility
rental charge and accounts for the Recreation Memorial Fund.
Baypoint Lagoons Assessment District Fund - The Baypoint Lagoons Lighting and Landscape District was
formed to protect and enhance wildlife habitat and water quality in Baypoint (Spinnaker) Lagoon and the
adjacent diked salt marsh.
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.
Stormwater Fund - Established to provide for a self -funding storm drain maintenance program plus separate
programs through the County and Bay Area to educate residents about urban runoff pollution.
Development Services Fund - Established to account for development activities that are supported by
external sources of funds. This fund does not account for the operating costs of building, planning, and
engineering, which are located in the General Fund.
Grants Fund - Established to account for grants for the Library, Childcare, Police, and Falkirk Cultural
Center.
Parkland Dedication Find - 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.
Household Hazmat Facility Fund - Established to account for State mandated hazardous materials
information, collection, and reporting. Expenditures include inspection of businesses for compliance with
regulations. This fund also serves as the depository for 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.
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 district.
2003 Financing Authority Revenue Parking Bonds Fund - Established to accumulate funds for the payment of
the principal and interest for the 2003 Revenue Parking Bonds which mature in 2033. The proceeds were
used to provide funding for the design and construction of a new public parking garage. Financing is to be
provided by lease payments for the City facilities.
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
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.
Open Space Fund - Established for the acquisition of open space.
85
City of San Rafael
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2005
Special Revenue
Baypoint
Lagoon
Street
Recreation Assessment Gas
Maintenance
Revolving District Tax
Childcare and Cleaning
ASSETS
Cash and investments
$
339,515
$
23,783
$
1,378,096
$
-
$
284,371
Cash with fiscal agent
-
-
-
-
-
Receivables:
Accounts
203,624
128
-
17,160
-
Tax
-
-
134,186
-
-
Grants
17,500
-
-
83,337
-
Loans
-
-
-
-
-
Interest
-
-
-
-
-
Prepaid expenses
-
-
-
-
-
Due froin other funds
-
_
-
-
-
Total assets
$
560,639
$
23,911
$
1,512,282
$
100,497
$
284,371
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable
$
66,936
$
5,524
$
19,867
$
34,836
$
53,339
Developer bonds payable
-
-
-
-
-
Due to other funds
-
-
-
45,530
-
Deferred revenue
188,536
-
-
-
-
Total liabilities
255,472
5,524
19,867
80,366
53,339
Fund Balances (Note 9):
Reserved
31,875
-
-
3,258
65,208
Unreserved:
Designated
-
-
1,492,415
-
165,824
Undesignated, reported in:
Special revenue funds
273,292
18,387
-
16,873
-
Total fund balances
305,167
18,387
1,492,415
20,131
231,032
Total liabilities and fund balances
$
560,639
$
23,911
$
1,512,282
$
100,497
$
284,371
86
Special Revenue
Loch Lomond Emergency
Assessment Public Development Parkland Medical
District Library Safety Stortnwater Services Grants Dedication Services
$ 698,263 $ 433,680 $ 151,748 $ 779,164 $ 439,681 $ 907,420 $ 842,172 $ 87,274
- - 14,184 - 21,595 - - -
313 - - 4,060 - - - 1,392
- 93,992 - - - 226,456 51,295 -
- - - - - - 21,726 -
$ 698,576 $ 527,672 $ 165,932 $ 783,224 $ 461,276 $ 1,133,876 $ 915,193 $ 88,666
$ - 5 11,416 $ 5,535 $ 70,583 $ 24,211 $ 45,940 $ - $ 25,025
- - - 1,500 - - -
- - - - - 21,726 -
11,416 5,535 70,583 25,713 45,940 21,726 25,025
500,000
1,800
- - 436,604 -
21,726 -
-
514,456
160,397 712,641 - 1,087,936
871,741 63,641
198576
-
- - (1,041) -
- -
698,576
516,256
160,397 712,641 435,563 1,087,936
893,467 63,641
$ 698,576 $
527,672 $
165,932 $ 783,224 $ 461,276 $ 1,133,876 $
915,193 $ 88,666
(Continued)
87
City of San Rafael
Combining Balance Sheet
Non -Major Governmental Funds, Continued
June 30, 2005
ASSETS
Cash and investments
Cash with fiscal agent
Receivables:
Accounts
Tax
Grants
Loans
Interest
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 9):
Reserved
Unreserved:
Designated
Undesignated, reported in:
Special revenue funds
Total fund balances
Total liabilities and fund balances
Special Revenue
Debt Service _.
Peacock
Household
Gap Mariposa
Business Hazmat Sewer
Assessment Assessment
Improvement Facility Maintenance
District District
$ 3,027 $ 57,194 $ - $ 216,270 $ 41,110
- 476,023 98,070 - -
- - 516 112
$ 3,027 $ 533,217 $ 98,070 $ 216,786 $ 41,222
$ - $ 495,620 $ - $ - $ -
- - 57,402 - -
495,620 57,402 - -
111,100 - 216,786 41,222
- 40,668 - -
3,027 (73,503) - - -
3,027 37,597 40,668 216,786 41,222
$ 3,027 $ 533,217 $ 98,070 $ 216,786 $ 41,222
88
Debt Service Capital Projects
1997 2003 Total
Financing Financing Park Non -Major
Authority Lease Revenue Capital Bedroom Assessment Capital Open Govenmiental
Revenue Bonds Parking Bonds Improvement Tax Districts Projects Space Funds
$ 598,587 $ - $ 1,085,372 $ 165,378 $ 223,741 $ - $ 139,828 $ 8,895,674
432,383 - - - - - - 432,383
- - - - - - - 830,784
3,365 - - - - - - 143,944
- - 108,676 - - 254,081 - 835,337
- - - - - 21,726
$ 1,034,335 $ - $ 1,194,048 $ 165,378 $ 223,741 $ 254,081 $ 139,828 $ 11,159,848
$ 23,273 $
- $ 47,422 $
- $ - $ - $
2,976 $
932,505
-
- -
- - -
-
1,500
-
- -
- - 237,647
-
340,579
-
- -
- - -
-
210,262
23,273
- 47,422
- - 237,647
Z976
1,484,846
1,011,062
- 1,146,626
165,378 223,741 16,434
136,852
4,129,672
-
- -
- - -
-
5,109,719
-
- -
- - -
-
435,611
1,011,062
- 1,146,626
165,378 223,741 16,434
136,832
9,675,002
$ 1,034,335 $
- $ 1,194,048 $
165,378 $ 223,741 $ 254,081 $
139,828 $
11,159,848
(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, 2005
REVENUES:
Taxes and special assessments
Licenses and permits
Fines and forfeitures
Use of money and property
Intergovernmental
Charges for current services
Other revenue
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Public works and parks
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCES:
Beginning of year, as restated
End of year
Special Revenue
Baypoint
Lagoons Street
Recreation Assessment Gas Maintenance
Revolving District Tax Childcare and Cleaning
$ - $ 25,499 $ - $ - $ -
469
247 17,223
648
5,114
78,500
- 111031900
351,532
16,621
1,436,992
- 621,486
2,429,227
-
12,127
- -
-
1,148
1,528,088
25,746 1,742,609
2,781,407
22,883
-
19,286 179,930
-
1,476,359
2,763,937
- -
2,865,240
-
2,000
- -
-
100,982
3,883
- 1,114,699
-
-
2,769,820
19,286 1,294,629
---2,865,240
1,577,341
(1,241,732)
6,460 447,980
(83,833)
(1,554,458)
1,449,150 - 1,530 118,360 1,235,430
- - (300,000) (50,400) -
1,449,150 - (298,470) 67,960 1,235,430
207,418 6,460 149,510 (15,873) (319,028)
97,749 11,927 1,342,905 36,004 550,060
$ 305,167 $ 18,387 $ 1,492,415 $ 20,131 $ 231,032
a
Special P.cvenue
Loch Lomond
Emergency
Assessment
Public
Development
Parkland
Medical
District
Library
Safety
Stormwater
Service
Grants
Dedication
Services
$ 62,694
$ - $
-
$ -
$ -
$ -
$ -
$ 2,519,056
-
-
20,085
2,000
-
-
-
-
8,370
65,583
1,564
5,321
9,166
11,753
10,396
-
-
161,975
92,859
-
-
974,151
301,295
-
-
5,719
11,130
815,452
29,021
-
181,907
1,428,531
-
41,767
2,155
165,769
17,200
121,000
300
-
71,064
275,044
127,793
988,542
55,387
1,106,904
493,898
3,947,587
- -
-
-
-
10,022
- -
- -
127,796
-
-
100,000
- 4,050,221
54 -
-
1,090,997
-
-
- -
- 156,909
-
-
-
275,609
- -
- -
-
-
-
-
- 1,914
- 74,457
5,753
659,397
126,051
783,112
301,095 -
54 231,366
113,549
1,750,394
126,051
1,168,743
301,095 4,052,135
71,010 43,678
(5,756)
(761,852)
(70,664)
(61,839)
192,803 (104,548)
45,160 848,710 - 379,230 - 35,060
- - - - - (22,000)
45,160 848,710 - 379,230 - 13,060
71,010 43,678 39,404 86,858 (70,664) 317,391 192,803 (91,488)
627,566 472,578 120,993 625,783 506,227 770,545 700,664 155,129
$ 698,576 $ 516,256 $ 160,397 $ 712,641 $ 435,563 $ 1,087,936 $ 893,467 $ 63,641
(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, 2005
REVENUES:
Taxes and special assessments
Licenses and permits
Fines and forfeitures
Use of money and property
Intergovenunental
Charges for current services
Other revenue
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Public works and parks
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCES:
Beginning of year, as restated
End of year
Special Revenue
Debt Service
Peacock
Household
Gap
Mariposa
Business
Hazmat
Sewer
Assessment
Assessment
Improvement
Facility
Maintenance
District
District
$ -
$ -
$ -
$ 103,213
$ 22,537
9,239
-
-
72
-
-
2,141
402
32,760
-
-
-
-
-
1,353,130
1,206,821
-
-
16,092
4,599
-
-
-
48,924
1,366,968
1,206,821
105,354
22,939
48,583 -
- 1,536,442 -
- 1,088,862
- - - 190,000
15,000
- - - 23,011
6,610
48,583 1,536,442 1,088,862 --.-- 213,011
21,610
341 (169,474) 117,959 (107,657)
1,329
- (266,500)
(96,800)
(2,540)
(150)
- (266,500)
(96,800)
(2,540)
(150)
341 (435,974) 21,159 (110,197) 1,179
2,686 473,571 19,509 326,983 40,043
$ 3,027 $ 37,597 $ 40,668 $ 216,786 $ 41,222
92
Debt Service
Capital Projects
1997
2003
Total
Financing
Financing
Park
Non -Major
Authority
Lease Revenue
Capital
Bedroom
Assessment Capital
Open Governmental
Revenue Bonds
Parking Bonds
Improvement
Tax
District Projects
Space Funds
$ 909,185
$ -
$ -
$ 26,596
$ - $ - $
- $ 3,668,780
-
-
-
-
- -
- 9,239
-
-
-
-
- -
- 22,085
12,531
-
10,361
1,960
- -
1,750 165,071
-
-
108,676
-
- -
- 3,222,269
-
-
-
-
- -
- 9,319,416
-
-
51,983
-
- 14,199
- 448,339
921,716
-
171,020
28,556
- 14,199
1,750 17,055,199
- - 152,161 3,036 213,802
- - 5,814,459
- - - - - 3,855,488
- - 6,061,695
- - - - - 104,896
211,328 - - 21,916 - 3,301,691
655,000
268,971
- - - - - - 860,000
- - - - - - 298,592
923,971
-- 211,328 - - 174,077 3,036 20,510,623
(2,255)
- (40,308) 28,556 - (159,878) (1,286) (3,455,424)
-
(4,860)
- - - - - - 4,112,630
- - - - - - (743,250)
(4,860)
- - - - - - 3,369,380
(7,115) - (40,308) 28,556 - (159,878) (1,286) (86,044)
1,018,177 - 1,186,934 136,822 223,741 176,312 138,138 9,761,046
$ 1,011,062 $ - $ 1,146,626 $ 165,378 $ 223,741 $ 16,434 $ 136,852 $ 9,675,002
(Concluded)
93
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, 2005
REVENUES:
Use of money and property
Intergovernmental
Charges for current services
Other revenue
Total revenues
EXPENDITURES:
Current:
Culture and recreation
Capital outlay
Capital improvement/special projects
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
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)
$ 2,600 $
2,600 $
469 $
(2,131)
-
-
78,500
78,500
1,721,095
1,568,095
1,436,992
(131,103)
33,510
9,560
12,127
2,567
1,757,205
1,580,255
1,528,088
(52,167)
2,583,160
2,689,650
2,763,937
(74,287)
2,340
2,340
2,000
340
-
-
3,883
(3,883)
2,585,500
2,691,990
2,769,820
(77,830)
(828,295)
(1,111,735)
(1,241,732)
(129,997)
974,150
974,150
1,449,150
475,000
974,150
974,150
1,449,150
475,000
$ 145,855 $
(137,585)
207,418 $
345,003
07 7Ao
$ 305,167
94
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, 2005
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
Budgeted Amounts
Original Final
$ 28,280 $ 28,280 $
500 500
28,780
28,780
30,000
$ (1,220) $ (1,220)
Variance with
Final Budget
Actual Positive
Amount (Negative)
25,499 $ (2,781)
247 (253)
25,746 (3,034)
19,286
10,714
19,286
10,714
6,460 $
7,680
11,927
$ 18,387
95
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, 2005
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
$
Budgeted Amounts
Original Final
30,000 $
1,098,500
434,000
602,000
2,164,500
30,000 $
1,306,210
434,000
1,770,210
189,523
189,523
1,000,000
1,207,710
1,189,523
1,397,233
974,977 372,977
Variance with
Final Budget
Actual Positive
Amount (Negative)
17,223 $
(12,777)
1,103,900
(202,310)
621,486
187,486
1,742,609
(27,601)
179,930
9,593
1,114,699
93,011
1,294,629
102,604
447,980 75,003
1,530 1,530 1,530 -
(300,000) (300,000) (300,000) -
(298,470) (298,470) (298,470)
$ 974,977 $ 372,977 149,510 $ (223,467)
$ 1,492,415
96
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, 2005
REVENUES:
Use of money and property
Intergovernmental
Charges for current services
Total revenues
EXPENDITURES:
Current:
Culture and recreation
Capital outlay
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)
$ - $
-
$ 648
$ 648
287,420
349,751
351,532
1,781
2,487,020
2,655,020
2,429,227
(225,793)
2,774,440
3,004,771
2,781,407
(223,364)
2,811,070
3,016,101
2,865,240
150,861
3,000
6,000
-
6,000
2,814,070
3,022,101
2,865,240
156,861
(39,630)
(17,330)
(83,833)
(66,503)
118,360
(50,400)
118,360
(50,400)
118,360
(50,400) -
67,960
67,960
67,960 -
$ 28,330 $ 50,630
(15,873) $ (66,503)
36,004
$ 20,131
97
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, 2005
REVENUES:
Use of money and property
Intergovernmental
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
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)
$ 11,000 $ 11,000 $ 5,114 $ (5,886)
16,000 16,000 16,621 621
2,360 2,360 1,148 (1,212)
29,360 29,360 22,883 (6,477)
1,538,459
100,000
1,557,407
100,000
1,476,359
100,982
81,048
(982)
1,638,459
1,657,407
1,577,341
80,066
(1,609,099) (1,628,047) (1,554,458) 73,589
1,235,430 1,235,430 1,235,430
1,235,430 1,235,430 1,235,430 -
$ (373,669) $ (392,617) (319,028) $ 73,589
550,060
$ 231,032
98
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, 2005
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
Budgeted Amounts
Original Final
Actual
Amount
Variance with
Final Budget
Positive
(Negative)
$ 63,510 $
63,510 $
62,694 $
(816)
10,000
10,000
8,370
(1,630)
73,510
73,510
71,064
(2,446)
6,120 6,120 54 6,066
6,120 6,120 54 6,066
$ 67,390 $ 67,390
71,010 $ 3,620
627,566
$ 698,576
99
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, 2005
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
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amount (Negative)
$ 36,190 $
36,090 $
65,583 $
29,493
205,860
205,860
161,975
(43,885)
14,400
14,500
5,719
(8,781)
12,340
12,340
41,767
29,427
268,790
268,790
275,044
6,254
207,490 207,490 156,909 50,581
- - 74,457 (74,457)
207,490 207,490 231,366 (23,876)
$ 61,300 $ 61,300 43,678 $ (17,622)
470 t7Q
$ 516,256
100
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, 2005
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amount
(Negative)
REVENUES:
Fines and forfeitures
$ 12,000 $
12,000
$ 20,085
$ 8,085
Use of money and property
900
900
1,564
664
Intergovernmental
60,500
73,500
92,859
19,359
Charges for current services
18,710
18,710
11,130
(7,580)
Other revenue-
1,500
1,500
2,155
655
Total revenues
93,610
106,610
127,793
21,183
EXPENDITURES:
Current;
Public safety
113,551
131,313
127,796
3,517
Capital improvement/special projects
-
16,311
5,753
10,558
Total expenditures
113,551
147,624
133,549
14,075
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
(19,941) (41,014) (5,756)
45,160 45,160 45,160
45,160 45,160 45,160
$ 25,219 $ 4,146
35,258
39,404 $ 35,258
120,993
$ 160,397
101
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, 2005
REVENUES:
Fines and forfeitures
Use of money and property
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
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)
$ 2,060 $ 2,060
$ 2,000
$ (60)
10,000 10,000
5,321
(4,679)
1,408,540 858,540
815,452
(43,088)
- -
165,769
165,769
1,420,600 870,600
988,542
117,942
1,150,334
550,000
1,172,265
550,000
1,090,997
659,397
81,268
(109,397)
1,700,334
1,722,265
1,750,394
(28,129)
(279,734)
(851,665)
(761,852) 89,813
848,710
848,710
848,710 -
848,710
848,710
848,710 -
$ 568,976 $ (2,955)
86,858 $ 89,813
625,783
$ 712,641
102
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, 2005
REVENUES:
Use of money and property
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 10,000
$ 10,000 $ 10,000
Variance with
Final Budget
Actual
Positive
Amounts
(Negative)
9,166
$ (834)
29,021
29,021
17,200
17,200
55,387
45,387
126,051 (126,051)
126,051 (126,051)
(70,664) $ (80,664)
506,227
$ 435,563
103
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, 2005
REVENUES:
Use of money and property
Intergovernmental
Other revenue
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Culture and recreation
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
Variance with
Final Budget
Actual Positive
Amount (Negative)
$ 2,400 $ 2,400 $ 11,753 $ 9,353
426,430 707,889 974,151 266,262
- 120,000 121,000 1,000
428,830 830,289 1,106,904 276,615
9,760
9,760
10,022
(262)
112,000
100,000
100,000
-
250,760
261,555
275,609
(14,054)
180,000
837,774
783,112
54,662
552,520
1,209,089
11168,743
40,346
(123,690)
(378,800)
(61,839)
316,961
100,130
350,130
379,230
29,100
100,130
29,100
350,130
379,230
$ (23,560) $
(28,670)
317,391 $
346,061
770,545
$ 1,087,936
104
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, 2005
REVENUES:
Use of money and property
Intergovernmental
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
Variance with
Final Budget
Actual Positive
Amount (Negative)
$ 12,000 $ 12,000 $ 10,396 $
- - 301,295
181,907
- 300
12,000 12,000 493,898
$ 12,000 $ 12,000
(1,604)
301,295
181,907
300
481,898
301,095 (301,095)
301,095 (301,095)
192,803 $ 180,803
700,664
$ 893,467
105
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, 2005
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amount
(Negative)
REVENUES:
Taxes and special assessments
$ 2,566,830 $
2,566,830
$ 2,519,056
$ (47,774)
Use of money and property
10,000
13,000
-
(13,000)
Intergovernmental
-
-
-
-
Charges for current services
1,350,000
1,350,000
1,428,531
78,531
Total revenues
3,926,830
3,929,830
3,947,587
17,757
EXPENDITURES:
Current:
Public safety
4,081,690
4,092,256
4,050,221
42,035
Capital outlay
27,620
27,620
1,914
25,706
Total expenditures
4,109,310
4,119,876
4,052,135
67,741
REVENUES OVER (UNDER) EXPENDITURES
(182,480)
(190,046)
(104,548)
85,498
OTHER FINANCING SOURCES (USES)
Transfer in 35,060 35,060 35,060 -
Transfers out - - (22,000) (22,000)
Total other financing sources (uses) 35,060 35,060 13,060 (22,000)
Net change in fund balance $ (147,420) $ (154,986) (91,488) $ 63,498
FUND BALANCE:
Beginning of year 155,129
End of year $ 63,641
106
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, 2005
REVENUES:
Use of money and property
Intergovernmental
Other revenue
Total revenues
EXPENDITURES:
Current:
General government
Total expenditures
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amount (Negative)
$ 500 $ 500 $ 72 $ (428)
34,750 34,750 32,760 (1,990)
20,560 20,560 16,092 (4,468)
55,810 55,810 48,924 (6,886)
57,830 57,830 48,583 9,247
57,830 57,830 48,583 9,247
Net change in fund balance $ (2,020) $ (2,020)
FUND BALANCE:
Beginning of year
End of year
341 $ (2,361)
41 3,uu
107
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Household Hazmat Facility Special Revenue Fund
For the year ended June 30, 2005
REVENUES:
Licenses and permits
Use of money and property
Intergovernmental
Charges for services
Other
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
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 5,100
$ 5,100
$ 9,239
$ 4,139
10,500
10,500
-
(10,500)
15,000
27,000
-
(27,000)
1,496,530
1,494,530
1,353,130
(141,400)
12,340
12,340
4,599
(7,741)
1,539,470
1,549,470
1,366,968
(182,502)
1,359,240
1,594,218
1,536,442
57,776
-
12,140
-
12,140
1,359,240
1,606,358
1,536,442
69,916
180,230
(56,888)
(169,474)
(112,586)
(125,000) (266,500)
(125,000) (266,500)
$ 55,230 $ (323,388)
k'VV,JVV) -
(435,974) $ (112,586)
108
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Sewer Maintenance Special Revenue Fund
For the year ended June 30, 2005
REVENUES:
Use of money and property
Charges for services
Total revenues
EXPENDITURES:
Current:
Public works and parks
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
Actual
Amount
Variance with
Final Budget
Positive
(Negative)
$ 5,000
$ 5,000 $
- $
(5,000)
1,197,150
1,197,150
1,206,821
9,671
1,202,150
1,202,150
1,206,821
4,671
1,079,030
1,089,249
1,088,862
387
1,079,030
1,089,249
1,088,862
387
123,120
112,901
117,959
5,058
(96,800) (96,800) (96,800) -
(96,800) (96,800) (96,800) -
$ 26,320 $ 16,101 21,159 $ 5,058
109
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, 2005
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)
$ 231,340 $ 231,340
$ 103,213
$ (128,127)
10,000 10,000
2,141
(7,859)
241,340 241,340
105,354
(135,986)
190,000
190,000
190,000 -
33,170
33,170
23,011 10,159
223,170
223,170
213,011 10,159
18,170 18,170 (107,657) (125,827)
(2,540) (2,540) (2,540)
(2,540) (2,540) (2,540)
$ 15,630 $ 15,630
(110,197) $ (125,827)
326,983
$ 216,786
110
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, 2005
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)
$ 22,720 $ 22,720 $ 22,537 $ (183)
1,000 1,000 402 (598)
23,720 23,720 22,939 (781)
15,000
15,000
15,000 -
7,500
7,500
6,610 890
22,500
22,500
21,610 890
1,220
1,220
1,329 109
(150) (150) (150)
(150) (150) (150)
$ 1,070 $ 1,070
1,179 $ 109
40,043
$ 41,222
ill
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, 2005
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amount
(Negative)
REVENUES:
Taxes and special assessments
$ 678,860 $
678,860
$ 909,185
$ 230,325
Use of money and property
7,900
7,900
12,531
4,631
Total revenues
686,760
686,760
921,716
234,956
EXPENDITURES:
Debt service:
Principal retirement
484,000
732,790
655,000
77,790
Interest and fiscal charges
203,350
203,350
268,971
(65,621)
Total expenditures
687,350
936,140
923,971
12,169
REVENUES OVER (UNDER) EXPENDITURES
(590)
(249,380)
(2,255)
247,125
OTHER FINANCING SOURCES (USES):
Transfers out
(4,860)
(4,860)
(4,860)
-
Total other financing sources (uses)
(4,860)
(4,860)
(4,860)
-
Net change in fund balance
$ (5,450) $
(254,240)
(7,115)
$ 247,125
FUND BALANCE:
Beginning of year 1,018,177
End of year $ 1,011,062
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, 2005
REVENUES:
Use of money and property
Intergovernmental
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
$ 10,000 $ 10,000 $
141,000
10,000 151,000
Variance with
Final Budget
Actual Positive
Amount (Negative)
10,361 $
361
108,676
108,676
51,983
(89,017)
171,020
20,020
141,000 211,328 (70,328)
141,000 211,328 (70,328)
$ 10,000 $ 10,000 (40,308) $ 50,308
1,186,934
$ 1,146,626
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, 2005
REVENUES:
Taxes and special assessments
Use of money and property
Total revenues
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)
$ - $ - $ 26,596 $ 26,596
2,000 2,000 1,960 (40)
2,000 2,000 28,556 26,556
$ 2,000 $ 2,000
28,556 $ 26,556
136,822
$ 165,378
114
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, 2005
REVENUES:
Use of money and properly
Other revenues
Total revenues
EXPENDITURES:
Current:
General government
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
$ 2,000 $ 2,000
Variance with
Final Budget
Actual
Positive
Amount
(Negative)
-
$ (2,000)
14,199
14,199
14,199
12,199
152,161
(152,161)
21,916
(21,916)
174,077
(174,077)
(159,878) $
(161,878)
176,312
$ 16,434
115
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, 2005
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amount (Negative)
REVENUES:
Use of money and property $ 5,000 $ 5,000 $ 1,750 $ (3,250)
Total revenues 5,000 5,000 1,750 (3,250)
EXPENDITURES:
Current:
General government 11,840 11,840 3,036 8,804
Total expenditures 11,840 11,840 3,036 8,804
Net change in fund balance $ (6,840) $ (6,840) (1,286) $ 5,554
FUND BALANCE:
Beginning of year 138,138
End of year $ 136,852
116
INTERNAL SERVICE FUNDS
117
City of San Rafael
Combining Statement of Net Assets
All Internal Service Funds
June 30, 2005
ASSETS
Current assets:
Cash and investments
Accounts receivable
Due from other funds
Loans receivable
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Due to other funds
Insurance claims payable
Total liabilities
NET ASSETS
Unrestricted
Total net assets
Equipment
Building
Employee
Liability
Worker's
Replacement
Maintenance
Benefits
Insurance
Compensation -
$ 761,584
$ 354,485
$ -
$ 707,799
$ 3,422,602
-
-
839,781
-
-
797,883
-
-
-
-
-
5,000
-
-
- -
1,559,467
359,485
839,781
- 707,799
3,422,602 --
5,348
17,117
1,342
17,267
-
-
-
797,883
-
-
-
-
-
505,259
3,209,405
5,348
17,117
799,225
522,526
3,209,405
1,554,119 342,368 40,556 185,273 213,197
$ 1,554,119 $ 342,368 $ 40,556 $ 185,273 $ 213,197
118
Dental Radio
Insurance Replacement Total
$ 7,705 $ 1,558,076 $ 6,812,251
- - 839,781
797,883
- - 5,000
7,703 1,558,076 8,454,915
- 41,074
- 797,883
- - 3,714,664
- 4,553,621.
7,705 1,558,076 3,901,294
$ 7,705 $ 1,558,076 $ 3,901,294
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, 2005
Equipment
Building
Employee
Liability
Worker's
Replacement
Maintenance
Benefits
Insurance
Compensation
OPERATING REVENUES:
Charges for services
$ 1,037,170
$ 44,840
$ 1,092,735
$ 981,216
$ 1,748,284
Refunds
-
-
248,165
131,372
36,361
Other operating revenues
39,335
55,000
839,781
-
-
Total operating revenues
1,076,505
99,840
2,180,681
1,112,588
1,784,645
OPERATING EXPENSES:
General and administrative
341,990
80,935
2,350,974
-
-
Insurance premiums and claims
-
-
-
1,471,678
1,143,032
Capital improvement project
320,576
138,709
-
-
-
Total operating expenses
662,566
219,644
2,350,974
1,471,678
1,143,032
OPERATING INCOME (LOSS)
413,939
(119,804)
(170,293)
(359,090)
641,613
NONOPERATING REVENUES:
Investment income
19,452
3,126
-
7,3M
49,325
Total nonoperating revenues
19,452
3,126
-
7,333
49,325
INCOME (LOSS) BEFORE
OPERATING TRANSFERS
413,391
(116,678)
(170,293)
(351,757)
690,938
OTHER FINANCING SOURCES (USES):
Proceeds from sale of assets
- -
-
-
Transfers in
- 122,000
200,000
400,000 -
Transfers out
(291,100) (3,730)
(507,670)
(300,000) (500,000)
Total other financing sources (uses)
(291,100) 118,270
(307,670)
100,000 (500,000)
Net income (loss)
142,291 1,592
(477,963)
(251,757) 190,938
NET ASSETS:
Beginning of year 1,411,828 340,776 518,519 437,030 22,259
End of year $ 1,554,119 $ M2,368 $ 40,556 $ 185,273 $ 211,197
120
Dental Radio
Insurance Replacement 'Dotal
$ 410,356 $ 254,680 $ 5,569,281
10,613 - 426,511
- - 934,116
420,969 254,680 6,929,908
- 585,452 3,359,351
415,368 - 3,030,078
- - 459,285
415,368 585,452 6,848,714
5,601 (330,772) 81,194
198 18,328 97,762
198 18,328 97,762
5,799 (312,444) 178,956
722,000
- - (1,602,500)
(880,500)
5,799 (312,444) (701,544)
1,906 1,870,520 4,602,838
$ 7,705 $ 1,558,076 $ 3,901,294
121
City of San Rafael
Combining Statement of Cash Flows
All Internal Service Funds
For the year ended June 30, 2005
Equipment
Building
Employee
Liability
Worker's
Replacement
Maintenance
Benefits
Insurance
Compensation
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers/other funds
$ 1,076,505
$ 104,840
$ 2,657,703
$ 1,112,588
$ 1,784,645
Cash payments to suppliers for goods and services
(1,464,996)
(220,510)
(2,350,033)
(1,642,130)
(1,593,870)
Net cash provided (used) by operating activities
(388,491)
(115,670)
307,670
(529,542)
190,775
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Transfers in - 122,000 200,000 400,000 -
Transfers out (291,100) (3,730) (507,670) (300,000) (500,000)
Net cash provided (used)
by noncapital financing activities (291,100) 118,270 (307,670) 100,000 (500,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest revenue 19,452 3,126 - 7,333 49,325
Net cash provided (used) by investing activities 19,452 3,126 - 7,333 49,325
Net increase (decrease)
in cash and cash equivalents (660,139) 5,726 - (422,209) (259,900)
CASH AND CASH EQUIVALENTS:
Beginning of year 1,421,723 348,759 - 1,130,008 3,682,502
End of year $ 761,584 $ 354,485 $ - $ 707,799 $ 3,422,602
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH PROVIDED
(USED) BY OPERATING ACTIVITIES:
Operating income (loss)
$ 413,939
$ (119,804) $
(170,293)
$ (359,090) $
641,613
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
(797,883)
-
622,474
-
-
Accounts receivable
-
-
(145,452)
-
-
Loans receivable
-
5,000
-
-
-
Accounts payable
(4547)
(866)
941
11,434
(9,364)
Insurance claims payable
-
-
-
(181,886)
(441,474)
Total adjustments
(802,430)
4,134
477,963
(170,452)
(450,838)
Net cash provided (used) by operating activities
$ (388,491)
S (115,670) $
307,670
$ (529,542) $
190,775
122
Dental Radio
Insurance Replacement Total
420,969 $ 254,680 $ 7,411,930
(415,368) (585,452) (8,272,359)
5,601 (330,772) (860,429)
722,000
(1,602,500)
(880,500)
198 18,328 97,762
198 18,328 97,762
5,799 (312,444) (1,643,167)
1,906 1,870,520 8,455,418
$ 7,705 $ 1,558,076 $ 6,812,251
$ 5,601 $ (330,772) $ 81,194
- (175,409)
- - (145,452)
- - 5,000
- - (2,402)
- - (623,360)
- - (941,623)
5,601 $ (330,772) $ (860,429)
123