HomeMy WebLinkAboutFY2006-07 Basic Finincial StatementsCITY OF SAN RAFAEL
BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2007
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CITY OF SAN RAFAEL, CALIFORNIA
Basic Financial Statements
For the Year Ended June 30, 2007
Table of Contents
INTRODUCTORY SECTION
Tableof Contents................................................................................................................................................ i
FINANCIAL SECTION
Independent Auditor's Report on Basic Financial Statements.................................................................. I
Management's Discussion and Analysis........................................................................................................ 3
Basic Financial Statements:
Government -wide Financial Statements:
Statementof Net Assets...................................................................................................................... 17
Statementof Activities....................................................................................................................... 18
Fund Financial Statements:
Major Governmental Funds:
BalanceSheet..................................................................................................................................22
Balance Sheet - Reconciliation of Governmental Fund Balances to
Net Assets of Governmental Activities...................................................................................... 23
Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................ 24
Reconciliation of the Net Change in Fund Balances - Total Governmental
Funds with the Statement of Activities...................................................................................... 26
Proprietary Funds:
Statementof Net Assets.................................................................................................................. 28
Statement of Revenues, Expenses, and Changes in Fund Net Assets ........................................... 29
Statementof Cash Flows................................................................................................................ 30
Notes to Basic Financial Statements....................................................................................................... 31
i
CITY OF SAN RAFAEL, CALIFORNIA
Basic Financial Statements
For the Year Ended June 30, 2007
Table of Contents
FINANCIAL SECTION (Continued)
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual -
Budgetary Basis
GeneralFund................................................................................................................................... 64
Traffic and Housing Mitigation Special Revenue Fund................................................................. 65
Household Hazmat Facilities Special Revenue Fund..................................................................... 66
Redevelopment Agency Capital Projects....................................................................................... 67
Non -major Governmental Funds:
CombiningBalance Sheet.................................................................................................................. 72
Combining Statement of Revenues, Expenditures, and Changes
inFund Balance...........................................................................................................................78
Budgeted Non -major Government Funds:
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balance —Budget and Actual............................................................................... 84
Internal Service Funds:
Combining Statement of Net Assets.................................................................................................. 96
Combining Statement of Revenues, Expenses and Changes in Net Assets......................................97
Combining Statement of Cash Flows.................................................................................................98
ii
i
ASSOCIATES
ACCOUNTANCY CORPORATION
3478 Buskirk Ave. - Suite 215
Pleasant Hill, California 94523
(925) 930-0902 • FAX (925) 930-0135
maze@mazeassociates.com
www.mazeassociates.com
INDEPENDENT AUDITOR'S REPORT
ON BASIC FINANCIAL STATEMENTS
To the Honorable Mayor and Members of the City Council
City of San Rafael, California
We have audited the financial statements of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the City of San Rafael as of and for the year
ended June 30, 2007, 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 component unit financial statements of the San Rafael Sanitation District (District), which represents
11% and 10% of the assets and revenues and 4% and 7% of liabilities and expenses of the reporting entity,
respectively. These component unit financial statements were audited by other auditors, whose report
thereon has been furnished to us. Our opinion, insofar as it relates to the amounts included for this entity, is
based solely on the report of these other auditors.
We conducted our audit in accordance with generally accepted auditing standards in the United States of
America and the standards for 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 as to 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 financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
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 of San Rafael as of June 30, 2007 and the respective
changes in the financial position and cash flows, where applicable, thereof for the year then ended, in
conformity with generally accepted accounting principles in the United States of America.
In accordance with Government Auditing Standards, we have also issued reports dated December 15,
2007 on our consideration of the City's internal control structure and on its compliance with laws and
regulations.
A Professional Corporation
Management's Discussion and Analysis and Budget and Actual schedules for the General Fund, Traffic
and Housing Mitigation Special Revenue Fund and Household Hazmat Facility Special Revenue Fund
are not a required part of the basic financial statements but are supplementary information required by
the Government 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 this information and express no
opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the basic financial statements. The supplemental information listed in the Table of Contents is
presented for purposes of additional analysis and is not a required part of the basic statements of the City
of San Rafael. This information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
The introductory section and statistical section listed in the Table of Contents have not been subjected to
the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express
no opinion on them.
December 15, 2007
2
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2007
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, 2007. Please read it in conjunction with the accompanying basic
financial statements and the accompanying notes to those basic financial statements.
FINANCIAL HIGHTLIGHTS
Government -Wide Highlights:
Net Assets - The assets of the City exceeded its liabilities at fiscal year ending June 30, 2007 by $219.4
million. Of this amount, $6.7 million was reported as "unrestricted net assets" and may be used to meet
the government's ongoing obligations to citizens and creditors.
Expense Activities - During the fiscal year the City's total expenses ($86.6 million) exceeded revenues for
governmental and business -type activities ($86.0 million) by $0.6 million. Excluding Depreciation (non -
cash expense of $6.9 million), collected revenues were $6.3 million above expenses.
Changes in Net Assets - The City s total net assets decreased by $.57 million in fiscal year 2007. Net assets
of governmental activities decreased by $0.58 million, while net assets of the business type activities
increased by $.01 million.
Fund Highlights:
Governmental Funds - Fund Balances- As of the close of fiscal year 2007, the City's governmental
funds reported combined ending fund balances of $39.5 million, an increase of $2.0 million from the
prior year. Of this total amount, $21.7 million represents reserved fund balances and $3.4 million is
designated.
General Fund - The fund balance of the general fund on June 30, 2007 was $5.9 million, an increase of
$0.2 million from the prior year. $0.9 million was held in reserve, and $3.4 million is designated to
meet our 10% reserve requirement as defined by the City's Financial Management Policies,
Long -Term Debt:
The City's total outstanding debt decreased by $1.2 million (2.5 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, 2007
Government -Wide Financial Statements
The Government -Wide Financial Statements present the financial picture of the City and provide readers
with a broad view of the City's finances. These statements present governmental activities and business -
type activities separately and include all assets of the City (including infrastructure) as well as all liabilities
(including long-term debt). Additionally, certain interfund receivables, payables and other interfund
activity have been eliminated as prescribed by Government Accounting Standards Board (GASB)
Statement No. 34.
The Statement of Net Assets and the Statement of Activities and Changes in Net Assets report information about the
City as a whole and about its activities. These statements include all assets and liabilities of the City using the
accrual basis of accounting, which is similar to the accounting used by most private -sector companies. All of the
current years revenues and expenses are taken into account, regardless of when cash is received or paid.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases in net assets may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The Statement of Activities and Changes in Net Assets presents information showing how the City's net assets
changed during the year. All changes in net assets are reported as soon as the underlying event giving rise to the
change occurs, regardless of timing of related cash flows.
In the Statement of Net Assets and the Statement of Activities and Changes in Net Assets, we separate the City
activities as follows:
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, sales and use 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 19 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.
10
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2007
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 69 through 94 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 four
major funds are - the General Fund, Redevelopment Agency, Household Hazmat Facility and Traffic and
Housing Mitigation. Data from the other twenty-four governmental funds are combined into a single,
aggregated presentation. The basic governmental fund financial statements can be found on pages 21
through 26 of this report. Individual fund data for each of these non -major governmental funds is
provided in the form of combining statements on pages 72 through 94 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, telephone systems, personal computer replacement program, self-insurance for worker's compensation,
dental, 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 27 through 30 of this report.
5
.'CITY'OF SANI2AFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2007
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 31
through 59 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 fonds
(general, redevelopment agency, household hazmat facility, 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 61 through 67 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 $219.4 million, which is a decrease of $.6 million from the prior year.
The following is the condensed Statement of Net Assets for the fiscal years ended June 30, 2006 and 2007.
June 30,
(Amounts in Millions)
Governmental Activities Increase Business -Type Activities Increase
2007 2006 (Decrease) 2007 2006 (Decrease)
Assets:
Current assets $ 47.8 $ 46.8 $ 1.0 $ 2.4 $ 2.3 $ 0.1
Capital assets, net 213.7 216.1 (2.4) 17.1 17.3 (0.2)
Total assets 261.5 262.9 (1.4) 19.5 19.6 (01)
Liabilities:
Current liabilities 9.1 9.5 (0.4) 0.3 0.3 -
Long-term liabilities 44.9 44.2 0.7 7.3 7.3
Total liabilities 54.0 53.7 0.3 7.6 7.6 -
Net Assets:
Invested in capital assets,
net of related debt
171.9
175.8
(3.9) 9.7 9.8
(0.1)
Restricted
31.1
0.6
30.5 - -
-
Unrestricted
4.5
32.8
(28.3) 2.2 2.1
0.1
Total net assets $
207.5 $
209.2 $
(1.7) $ 11.9 $ 11.9 $
(0.0)
y
« :CTTY OF.. SAN WAEL .
Managements Discussion and Analysis
Fiscal Year Ended June 30, 2007
At June 30, 2007, the largest portion of net assets (82.8 percent) consists of the City's investment in capital assets
net of related debt. This component portrays the total amount of funds required to acquire those assets less any
related debt used for such acquisition that is still outstanding. The City uses these capital assets to provide
services to citizens. The decrease in total net assets from 2005-2006 to 2006-2007 is largely attributable to a netting
of capital assets acquisition against depreciation expense for the year. Total depreciation for this current year
was $6.9 million, while capital asset acquisition totaled $4.3 million, leaving a net change (decrease) of $2.6
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 (14.2 percent) is subject to restrictions
imposed by external parties and their use is determined by those restrictions and agreements. The remainder of
net assets, $6.7 million, may be used to meet the City's ongoing operations.
For the year ended June 30, 2007, 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
$300.0—
—
$200.0
r
�
o
�W
h
$100.0
�.
MO
Invesment in Capital Assets,
Restricted
Unrestricted
Total Net Assets
net of related debt
92007
$181.6 1
$31.10
$6.70
$219A
CITYOFsAMk4FAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2007
Statement of Activities
The following is the condensed Statement of Activities and Changes in Net Assets for the fiscal years ended June
30, 2007 and 2006:
For the Fiscal Years Ended June 30,
(Amounts in Millions)
Governmental Activities
Increase Business -Type Activities
Increase
2007
2006
(Decrease) 2007 2006
(Decrease)
Revenues:
Program revenues
$ 24.7 $
23.5
$ 1.2 $ 3.2 $
3.0 $
0.2 € E
General revenues
58.0
51.0
7.0 0.1
1.4
(1.3)
Total revenues
82.7
74.5
8.2 3.3
4.4
(1.1),,
Expenses
83.5
77.4
6.1 3.1
2.8
0.3 '...:
Change in net assets
before transfers
(0.8)
(2.9)
2.1 0.2
1.6
(1.4)
Transfers
0.2
0.2
$ - (0.2)
(0.2) $
-
t
Net Assets:
Beginning, as restated 208.1 211.8 11.9 10.5
Ending $ 207.5 $ 209.1 $ 11.9 $ 11.9
Governmental Activities:
The City's governmental activities decreased net assets by $0.6 million, which represents a 0.3% decrease from
last year. Key elements of this change were as follows:
Revenue highlights:
• Property Tax revenues increased by $1.5 million or 7.8 percent in 2007. In 2007, Property Transfer
Tax included in the property tax category in 2006 was reclassified to Other Tax revenues.
• Sales tax increased by $6.3 million or approximately 34.5 percent compared to fiscal year 2006. The
increase in sales tax revenues includes the new voter approved transaction and use tax. In
November 2005, the citizens passed a half -cent transaction and use tax effective April 2006. Over all
the sales tax remained relatively flat and is dependent on consumer retail and business related
activity in the City.
• Motor vehicles revenues decreased by $.04 million or 11 percent.
Other Tax revenues increased by $1.9 million or approximately 26.8 percent compared to fiscal year
2006. The increases were primarily due to increases in franchise fees, which now include North San
Rafael refuse area ($270K); increases in transient occupancy taxes ($136K) and increases in business
license tax ($39K). Also, $1.5 million in Property Transfer Tax classified as property tax in fiscal
year 2006 was reclassified to Other Taxes.
8
:. CITYOFSANRAFAELa
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2007
Governmental Activities - Revenues:
Governmental Activities
Revenues By Source
June 30, 2007
El Property Taxes
3%
8% 2% 25% 0 Sales Taxes
❑ Other Taxes
❑ Charges for Services
q k
® Miscellaneous
O Capital Grants and
11 % 29% Contributions
Ell Investment Earnings
Governmental Activities - Expenses:
Governmental Activities
Expenses by Function
June 30, 2007
12% 3% 11%
E
25'
General Government
O Public Safety
❑ Public Works and Parks
❑Community Development
® Culture and Recreation
Ill Debt Service
Total expenses for governmental activities were $81.3 million (not including interest on long-term debt of $2.2
million). Program revenues offset total expenditures as follows:
• Those who directly benefited from programs contributed $18.2 million in charges for services.
• A total of $2.8 million in capital projects was funded by outside agencies through capital grants and
contributions.
I
CITYOF`SANRAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2007
As a result, total expenses that were funded by tax revenues; investment income and other general revenues
were $56.6 million.
Functional expenses for the years ended June 30, 2007 were as follows:
Expenses by Function
For the fiscal year ended June 30, 2007
Function Amount Percent of Total
General Government
Public Safety
Public works and parks
Community developmen
Culture and recreation
Interest on Debt
Total Expenses
Business -Type Activities:
$ 8,908,433
10.7%
37,271,272
44.6 %
20,998,749
25.2 %
4,384,408
5.3%
9,729,485
11.7 %
2,183,683
2.6 %
$ 83,476,030
100.0 %
Net assets for business -type activities were $11.9 million, unchanged from the prior fiscal year. Parking services
is the City's only business type activity and income is derived from program revenues of $3.2 million. Program
revenues include parking meter coin at $1.1 million, and parking garage hourly parking at $0.7 million.
Revenues also include parking and non -vehicle code fines totaling $1.3 million and $0.1 million for garage
parking permits. Total expenses for parking services were $3.1 million during fiscal year 2006-2007.
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 $39.5 million. Approximately, $14.4 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 $5.0 million, while total
fund balance reached $5.9 million. $3.4 million is held as part of the 10 percent designated unreserved for
emergencies and cash flow cycles as defined in San Rafael's Financial Management Policies. As a measure of the
general funds liquidity, it may be useful to compare both unreserved fund balance and total fund balance to
total fund expenditures. Unreserved fund balance represents 8.9 percent of total general fund expenditures
including transfers out, while total fund balance represents 10.5 percent of that same amount.
10
CITYOFSANRAPAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2007
P1,ti
The available fund balance in the City's General Fund increased by $0.2 million compared to the 2006 fiscal year.
This increase resulted from:
The full year effect of the voter approved half -cent increase in sales tax effective April 2006.
Expenditures increased with personnel costs mainly benefit costs leading the way.
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 2007, the reserved fund balance was $8.9
million, an increase of $0.9 million from the prior year. Revenues exceeded expenditures by $0.9 million. The
increase is primarily related to reduced expenditures for capital improvement projects. A total of $8.7 million in
fund balance as of June 30, 2007 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 goveinment-wide financial
statements, but in more detail. As discussed in the business -type activities previously, the City's net assets were
unchanged as a result of operations in the Parking Services fund.
GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended budget totaled $50.0 million, including an increase of $1,608,058 to the originally adopted
budget. The amendments can be briefly summarized as follows:
1. Increases in the following budgets:
o General Government
$483,427
o Public Safety
493,960
o Public Works and Parks
242,316
o Community Development/Redevelopment
366,121
o Culture and Recreation
22,234
During the year, however, revenues exceeded budgetary estimates and expenditures exceeded the final
budgetary estimate. Overall, revenues exceeded expenditures by $5.0 million. The transfers out exceeded the
transfers in by $4.8 million.
11
CITY.OFSANRAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2007
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, 2007
amounts to $230.7 million, net of accumulated depreciation of $99.7 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 $3.8 million, offset by accumulated depreciation and
retirements of 6.4 million, thereby equaling a net reduction of 2.6 million.
Major capital asset additions during the current fiscal included work in process on Sun Valley ADA Compliance,
Pickleweed Gym & Facility Expansion, Storm drain improvements, net purchase of eight vehicles, and Council
Chamber HVAC improvements.
Capital Projects
r The G1enAir Drive drainage improvements were completed in 2007.
The replacement of Council Chambers HVAC system.
Improvements to the 5th Avenue pedestrian pathway.
Additional information on the City's capital assets can be found in Note 5 on pages 44 through 46 of this report.
Debt Administration
As of June 30, 2007, 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 2006 and 2007 were as follows:
Governmental
Activities
Business -Type
Activities
Total
2007
2006 2007
2006 2007
2006
Revenue Bonds -
$ 1.0
$ 1.2 $ 7.3
$ 7.5 $ 8.3
$ 8.7
Special Assessment Bonds
-
0.1 -
- -
0.1
Tax Allocation Bonds
39.2
40.8 -
- 39.2
40.8
Court Fine Promissory note
1.0
- -
- 1.0
-
Redevelopment note
0.2
0.2 -
- 0.2
0.2
Capitalized Leases
0.6
0.4 -
- 0.6
0.4
Compensated Absences
4.5
5.0 -
- 4.5
5.0
Total Outstanding Debt
$ 46.5
$ 47.7 $ 7.3
$ 7.5 $ 53.8
$ 55.2
12
CITYOFSANRAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2007
ECONOMIC CLIMATE AND NEXT YEAR'S BUDGET
Many factors were considered in preparing the City's budget for fiscal year 2007-2008. As the years have gone
by, sales tax, our largest tax revenue generator, became an increasing and necessary source of revenue for San
Rafael. Sales tax has remained relatively flat with a bit of a growth in the last quarter. New businesses like Best
Buy, provides much needed sources of new sales tax revenue. Modest gains should be achieved and are
consistent with independent consultant and State projections.
The City's second largest tax generator is property tax. Although property sales may not be as strong as in
previous years, the assessed values of the properties are still climbing. We have included a 6 percent growth in
property tax revenues for fiscal year 2007-2008.
In November of 2006, the citizens of San Rafael, CSA #13, CSA #19, and Marinwood passed Measure P, which
raised the tax rate cap to $85 per residential living units and $0.11 per non-residential building square footage.
To cover the proposed costs in the Paramedic Fund for fiscal year 2007-08, we raised the rates to $75 per
residential living unit and to $.0945 per non-residential building square foot.
The City's largest expenditure by far relates personnel costs. Salaries and benefits are tied to the labor
agreements with each bargaining group. Forecasted expenses related to supplies, services, utilities and capital
assets are adjusted by the use of a CPI formula. Fiscal Year 2006-2007 baseline operating costs were indexed
by 3.2 percent for Fiscal Year 2007-2008.
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
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CITY OF SAN RAFAEL
STATEMENT OF NET ASSETS AND
STATEMENT OF ACTIVITIES
The Statement of Net Assets and the Statement of Activities summarize the entire City's financial activities
and financial position.
The Statement of Net Assets reports the difference between the City's total assets and the City's total
liabilities, including all the City's capital assets and all its long -teen debt. The Statement of Net Assets
focuses the reader on the composition of the City's net assets, by subtracting total liabilities from total
assets.
The Statement of Net Assets summarizes the financial position of all the City's Governmental Activities in a
single column, and the financial position of all the City's Business -Type Activities in a single column; these
columns are followed by a total column which presents the financial position of the entire City.
The City's Governmental Activities include the activities of its General Fund, along with all its Special
Revenue, Capital Projects and Debt Service Funds. Since the City's hrternal Service Funds service these
Funds, their activities are consolidated with Governmental Activities, after eliminating inter -fund
transactions and balances. The City's Business Type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City's net assets. It is also prepared on the
full accrual basis, which means it includes all the City's revenues and all its expenses, regardless of when
cash changes hands. This differs from the "modified accrual" basis used in the Fund financial statements,
which reflect only current assets, current liabilities, available revenues and measurable expenditures.
The Statement of Activities presents the City's expenses first, listed by program, and follows these with the
expenses of its business -type activities. Program revenues —that is, revenues which are generated directly
by these programs —are then deducted from program expenses to arrive at the net expense of each
governmental and business -type program. The City's general revenues are then listed in the Governmental
Activities or Business -type Activities column, as appropriate, and the Change in Net Assets is computed and
reconciled with the Statement of Net Assets.
Both these Statements include the financial activities of the City, the City of San Rafael Redevelopment
Agency, and the San Rafael Joint Powers Financing Authority which are legally separate but are
component units of the City because they are controlled by the City, which is financially accountable for
their activities. The balances and the activities of the discretely presented component units of the San
Rafael Sanitation District are included in these statements as separate columns.
15
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CITY OF SAN RAFAEL
STATEMENT OF NET ASSETS
JUNE 30, 2007
Component
Unit
Primary Government
San Rafael
Governmental
Business -Type
Sanitation
Activities
Activities
Total
District
ASSETS
Cash and investments available for operations (Note 2)
$37,806,385
$2,522,818
$40,329,203
$7,742,902
Restricted cash and investments (Note 2)
1,478,563
173
1,479,736
483,411
Receivables:
Accounts
2,203,902
30,649
2,234,551
7,116
Taxes
4,608,402
4,608,402
Grants
768,048
768,048
Interest
437,497
437,487
104,414
Loans (Note 4)
393,719
383,719
Internal balances (Note 3)
33,533
(33,533)
Prepaid expenses and other
36,491
36,491
66,697
Capital assets (Note 5):
Nondepreciable
92,163,081
8,665,103
100,828,184
3,611,556
Depreciable, net
121,560,371
8,352,398
129,912,769
22,355,522
Total Assets
261,479,992
19,537,608
281,017,590
34,371,618
LIABILITIES
Accounts payable
1,980,620
92,871
2,063,491
337,961
Deposits payable
31,483
S00
31,983
Interest payable
323,315
84,104
407,419
46,229
Developer bonds payable
491,173
491,173
Arbitrage payable
25,127
25,127
Unearned revenue -
242,998
242,999
Claims payable (Note 13):
Due in one year
2,798,922
2,798,922
Due in more than one year
1,759,259
1,759,259
Compensated absences (Note I.1):
Due in one year
736,332
10,587
746,919
Due in more than one year
3,619,388
115,207
3,734,595
Long-term debt (Note 6):
Due in one year
2,480,330
160,000
2,640,330
395,000
Due in more than one year
39,517,815
7,140,000
46,657,915
2,105,796
Total Liabilities
54,006,762
7,593,269
61,600,031
2,994,986
NET ASSETS (Note 8)
Invested in capital assets, net of related debt
171,849,149
9,717,501
191,566,650
23,500,226
Restricted for:
Special revenue projects
13,566,899
13,566,899
Capital projects
5,762,498
5,762,498
Debt service
2,853,353
2,853,353
443,471
Redevelopment projects
9,942,185
8,942,185
Total Restricted Net Assets
31,124,935
31,124,935
443,471
Unrestricted
4,499,136
2,226,838
6,725,974
7,542,935
Total Net Assets
$207,473,220
$11,944,339
$219,417,559
$31,486,632
See accompanying notes to financial
statements
17
CITY OF SAN RAFAEL
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2007
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General government
$8,908,433
$1,512,814
$431,097
Public safety
37,271,272
5,279,785
688,391
Public works and parks
20,998,749
4,030,060
1,590,740
$979,555
Community development/redevelopment
4,384,408
2,815,009
1,804,300
Culture and recreation
9,729,485
4,521,004
991,673
2,906
Interest on long-term debt
2,183,683
Total Governmental Activities
83,476,030
18,158,672
3,701,901
2,796,761
Business -type Activities
Parking services 3,110,254 3,242,046
Total Business -type Activities 3,110,254 3,242,046
Total Primary Government $86,586,284 $21,400,718 $3,701,901 $2,786,761
Component Unit
San Rafael Sanitation District $6,656,432 $7,857,916
General revenues:
Taxes:
Property taxes
Sales taxes
Special assessments
Motor vehicles
Other
Investment earnings
Miscellaneous
Aid from other governmental agencies
Special item - Court fines repayment (Note 6G)
Transfers
Total general revenues and transfers
Change in Net Assets
Net Assets, beginning of year, as restated (Note 6)
Net Assets, end of year
See accompanying notes to financial statements
18
Net (Expenses) Revenues and Changes in Net Assets
Component
primary Government Unit
San Rafael
Governmental Business -Type Sanitation
Activities Activities Total District
($6,964,522)
($6,964,522)
(31,303,096)
(31,303,096)
(14,398,394)
(14,398,394)
234,901
234,901
(4,213,902)
(4,213,902)
(2,183,683)
(2,183,683)
(58,928,696) (59,828,696)
$131,792
131,792
131,792
131,792
(58,828,696) 131,792
(58,696,904)
$1,201,484
20,360,475
20,360,475
755,763
24,484,356
24,484,356
2,998,925
2,998,925
331,620
331,620
8,830,955
8,830,955
1,669,191
91,623
1,760,804
367,887
491,488
491,488
"-
340,642
(1,133,458)
(1,133,458)
212,170
(212,170)
58,245,712
(120,547)
58,125,165
1,464,292
(582,984)
11,245
(571,739)
2,665,776
209,056,204
11,933,094
219,989,298
28,820,856
$207,473,220
$11,944,339
$219,417,559
$31,486,632
19
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FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year.
The funds described below were determined to be Major Funds by the City in fiscal 2007. Individual
non -major funds may be found in the Supplemental section.
GENERALFUND
Accounts for all financial resources and transactions except those required to be accounted for in other
funds.
TRAFFIC AND HOUSING MITIGATION FUND
Established to maintain a long-term developer deposits for major housing and street improvement
projects.
HOUSEHOLD HAZMAT FACILITY FUND
Established to account for State mandated hazardous materials information, collection, and reporting.
Expenditures include inspection of businesses for compliance with regulations. This fund also serves as
the depository for countywide Household Hazardous Waste Program.
REDEVELOPMENT AGENCY CAPITAL PROJECTS FUNDS
Accounts for the RDA Capital Improvement Fund are for improvement projects.
21
CITY OF SAN RAFAEL
GOVERNMENTALFUNDS
BALANCESHEET
JUNE 30, 2007
Redevelopment
Traffic and
Household
Agency
Other
Total
Housing
Hazmat
Capital
Governmental
Governmental
General
Mitigation
Facility
Projects
Funds
Funds
ASSETS
Cash and investments available for operations(Note 2)
$1,102,324
$9,857,323
$7,564,288
$14402,809
$32,926,744
Restricted cash and investments (Note 2)
66,886
768,213
643,464
1,478,563
Receivables:
Accounts
90,191
$791,123
256,072
1,137,396
Taxes
3,996,538
337,497
274,367
4,608,402
Grants
31,000
737,049
768,04.
Interest
371,621
65,866
437,487
Loans (Note 4)
19,319
77,143
287,257
383,719
Due from other funds (Note 3A)
1,369,492
1,369,492
Prepaid expenses
36,491
36,491
Total Assets
$7,052,862
$9,934,466
$791,123
$9,054,121
$16,313,760
$43,146,332
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
$555,802
$243,000
$61809
$1098,986
$1,959,497
Deposits payable
31,483
31483
Developer bonds payable
464,673
25000
1,500
491,173
Arbitrage payable
25,127
25,127 '
Compensated absences- matured (Note l J)
78,907
12,326
91,233
Due to other funds (Note 3A)
499,894
266,707
766,601
Deferred revenue
242,998
242,998
Total Liabilities
1,130,865
742,894
111,936
1,622,417
3,609,112
Fund Balances (Note 8):
Reserved for:
;
Encumbrances
96,738
64,374
161,112
Petty cash
3,395
3,395
Department savings
82,239
82,239
Loans receivable
619,319
$77,143
287,257
993,719
Prepaid expense
36,491
36,491
Debt service
805,223
805,223
Assessment districts/open space
66,886
66,886
Improvement projects
5,885,098
1,027,512
6,912,610
Traffic and Housing
9,857,323
2,769,830
12,627,153
Unreserved, designated:-"'
Emergency and cash flow
3,437,866
3,437,866
Unreserved, undesignated
1,579,063
48,229
- 12,794,234
14,421,526
Total Fund Balances
5,921,997
9,934,466
48,229
8,942,185
14,691,343
39,539,220 r
Total Liabilities and Fund Balances
$7,052,862
$9,934,466
$791,123
$9,054,121
$16,313,760
$43,146,332
See accompanying
notes to basic financial
statements
22
CITY OF SAN RAFAEL
GOVERNMENTALFUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET ASSETS OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2007
Total fund balances reported on the governmental funds balance sheet $39,539,220
Amounts reported for Governmental Activities in the Statement of Net Assets are
different from those reported in the Governmental Funds because of the following:
Capital assets used in Governmental Activities are not financial resources and,
therefore, are not reported in the Governmental Funds. 213,723,452
Internal service funds are used by management to charge the cost of management of
communication, telephone, building, fleet maintenance, equipment replacement, workers'
compensation, employee benefits, insurance, and post -retirement healthcare benefits to individual
funds. The assets and liabilities are included in Governmental Activities in the Statement of Net
Assets. 797,495
Interest payable on long-term debt does not require the use of current financial
resources and, therefore, are not reported in the Governmental Funds. (323,315)
Long-term liabilities, including bonds payable, are not due and payable in the current
period and, therefore, are not reported in the Governmental Funds. (41,998,145)
Long-term compensated absences (4,264,487)
Net assets of governmental activities $207,473,220
See accompanying notes to financial statements
23
CITY SAN RAFAEL
GOVERNMENTALFUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2007
Redevelopment
Traffic and Household
Agency
Housing Humat
Capital
General Mitigation Facility
Projects
REVENUES
$44,921,449
$974,408
Taxes and special assessments
1,157,434
$547
Licenses and permits
514,278
Fines and forfeitures
431,553
$371,484
1,693
356,797
Use of money and property
6,932,034
9,025
1,658,850
Intergovernmental
1,868,014
15,923
1,037,195
43,349
Charges for services
217,968
310
237,922
Other revenue
56,042,730
397,307
1,048,770
3,271,326
Total Revenues
EXPENDITURES
Current:
29,708 -
General government
0,643,627
30,643,627
1,035,546
Public safety
Public works and parks
6,914,505
62,363
144,659
1,155,904
Community development / redevelopment
3,163,138
Culture and recreation
1,990,631
1,049,191
69,508
827,221
Capital outlay
213,390
233,915 ...
Capital improvement /special projects
Debt service:
103,741
Principal
Interest and fiscal charges -
Total Expenditures
51,006,979
130,871
1,035,546
2,391,407
EXCESS (DEFICIENCY) OF REVENUES
5,035,751
256,436
13,224
879,919
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Capital lease for equipment acquisition
653,990
300,240
Transfers in (Note 3B)
(5,465,286)
(300,240) ....
Transfers out (Note 3B)
Total Other Financing Sources (Uses)
(4,811,296)
Net Change in Fund Balances
224,455
256,436
13,224
979.919 ._ .
FUND BALANCES, BEGINNING OF YEAR, AS RESTATED (Note I M)
5,697,542
9,678,030
35,005
8,062,266
FUND BALANCES, END OF YEAR
$5,921,997
$9,934,466
$48,229
$8,942,185
See accompanying notes to financial statements
24
Other Total
Governmental Governmental
Funds Funds
$6,576,389 $52,472,246
1,157,981
1,250
515,528
583,161
1,744,688
4,160,587
12,760,496
10,540,240
13,504,621
1,012,543
1,469,743
22,874,170
93,624,303
1,230,525
8,188,999
4,585,149
36,264,321
4,851,010
11,972,537
4,319,042
7,014,739
9,005,370
4,771,720
6,716,630
742,308
1,189,613
2,183,514
2,287,255
1,829,091
1,829,091
27,208,055
81,772,858
(4,333,885) 1,851,445
318,000
319,000
5,858,030
6,812,260
(1,192,520)
(6,958,046)
4,983,510
172,214
649,625
2,023,659
14,041,718
37,514,561
$14,691,343
$39,538,220
25
CITY OF SAN RAFAEL
Reconciliation of the
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2007
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
Amounts reported for Governmental Activities in the Statement of Activities are
different because of the following:
Capital Assets Transactions
Governmental funds report capital outlays as expenditures. However, in the Statement of
Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as
depreciation expense.
Expenditures for capital assets are added back to fund balance
Current year depreciation is deducted from fund balance
Long -Term Debt Proceeds and Payments
Debt proceeds provide current financial resources to governmental funds, but issuing debt
increases long-term liabilities in the Statement of Net Assets.
Repayment of debt principal is an expenditure in the governmental funds, but the repayment
reduces long-term liabilities in the Statement of Net Assets.
Bond interest accretion
Court fines repayment obligation
Accrual of Non -Current Items
The amount below included in the Statement of Activities does not require the use
of current financial resources and therefore is not reported as revenue or expenditures in governmental funds (net
change):
Interest payable
Compensated absences
Deferred revenue
Allocation of Internal Service Fund Activity
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The net revenue of the internal service fund is reported with governmental activities.
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES
See accompanying notes to financial statements
$2,023,659
4,255,380
(6,658,473)
(318,000)
2,287,255
(198,394)
(1,133,458)
(156,198)
785,288
(21,726)
(1,448,317)
($582,984)
im
MAJOR PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private
business enterprise. The intent of the City is that the cost of providing goods and services be financed
primarily through user charges.
The concept of major funds established by GASB Statement 34 extends to Proprietary Funds. The City
reported all enterprise funds as major proprietary funds.
GASB 34 does not provide for the disclosure of budget versus actual comparisons regarding proprietary
funds that are major funds.
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 office services.
27
CITY OF SAN RAFAEL
PROPRIETARY FINDS
STATEMENT OF NET ASSETS
NNE 30, 2007
Business -type
Activities -
Enterprise
Governmental
Funds
Activities
Parking
Internal
Services
Service Funds
ASSETS
Current Assets:
Cash and investments available for operations (Note 2)
$2,522,818
$4,879,641
Restricted cub and investments (Note 2)
173
Accounts receivable
30,649
1066,516
Total Current Assets
2,553,640
5,946,157
Noncurrent Assets:
Capital assets (Note 5):
Nondepreciable
8,665,103
Depreciable, net
8,352,398
Total Noncurrent Assets
17,017,501
Total Assets
19,571,141
5,946,157
LIABILITIES
Current Liabilities:
Accounts payable
92,871
21,123
Deposits payable
Soo
Interest payable -
84,104
Due to other funds (Note 3A)
602,991
Claims payable, due in one year (Note 13)
2,799,922
Compensated absences, due in one year (Note IJ)
10,587
Long-term debt, due in one year (Note 6)
160,000
Total Current Liabilities
338,062
3,422,936
Noncurrent Liabilities:
Claims payable (Note 13)
1,759,259
Compensated absences (Note U)
115,207
Long-term debt (Note 6)
7,140,000
Total Noncurrent Liabilities
7,255,207
1,759,259
Total Liabilities
7,593,269
5,182,195
NET ASSETS (Note 8)
Invested in capital assets, net of related debt
9,877,501
Unrestricted
2,100,371
763,962
Total Net Assets
$11,977,872
$763,962
See accompanying notes to financial statements
28
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2007
OPERATING REVENUES
Charges for current services
Other operating revenues
Total Operating Revenues
OPERATING EXPENSES
Personnel
Insurance premiums and claims
Maintenance and repairs
Depreciation and amortization
General and administrative
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Investment income
Interest expense
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Transfers
Transfers in (Note 3B)
Transfers out (Note 3B)
Change in Net Assets
NET ASSETS, BEGINNING OF YEAR, AS RESTATED (Note IM)
NET ASSETS, END OF YEAR
Change in Net Assets
Business -type
Activities -
Enterprise Governmental
Funds Activities
Parking Internal
Services Service Funds
$1,763,391
$4,988,902
1,478,655
1,622,320
3,242,046
6,611,222
1,764,770
5,524,351
35,534
540,412
258,225
678,298
2,576,296
2,736,817
8,641,059
505,229
(2,029,837)
91,623
(339,904)
190,031
(248,281)
190,031
256,948
(1,839,806)
(212,170)
386,456
(28,500)
44,778
11,933,094
(1,481,850)
2,245,812
$11,977,872
$763,962
$44,778
Some amounts reported for Business -type Activities in the
Statement of Net Assets are different because certain Internal
Service Fund assets and liabilities are included with
Business -type Activities (33,533)
Change in Net Assets of Business -type Activities 11,245
See accompanying notes to financial statements
29
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUKE 30, 2007
Business -type
Activities -
Enterprise
Governmental
Funds
Activities
Parking
Internal
Services
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds
$1,763,991
$4,845,875
Cash payments to suppliers for goods and services
(39,365)
(7,643,269)
Cash payments to employees
(2,317,264)
Other operating revenues
1,481,715
1,622,320
Cash Flows from Operating Activities
888,977
(1,175,074)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund payments
(212,170)
541,423
Cash Flows from Noncapital
Financing Activities
(212,170)
541,423
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Cash paid for capital acquisitions (1,289)
Principal payments on certificates of participation (155,000)
Interest expenses and fiscal charges (341,067)
Cash Flows from Capital and
Related Financing Activities (497,356)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income
91,623
190,031
Cash Flows from Investing Activities
91,623
190,031
Net Increase (Decrease)in cash and cash equivalents
271,074
(443,620)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
2,251,917
5,323,261
CASH AND CASH EQUIVALENTS, END OF YEAR
$2,522,991
$4,879,641
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)
$505,229
($2,029,837)
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation
258,225
Net change in assets and liabilities:
Accounts receivable
4,973
(143,027)
Accounts payable
(3,831)
(214,199)
Deposits payable
500
Deferred Revenue
(1,913)
Compensated absence obligations
125,794
Claims payable
1,211,989
Net Cash Provided by (Used in) Operating Activities
$888,977
($1,175,074)
30
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of the Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements present the City of
San Rafael (the City) as the Primary Government, with its component units for which the City is
considered financially accountable. The component units discussed below are included in the City's
reporting entity because of the significance of their operational and financial relationships with the
City.
B. Description of Blended Component Units
The accompanying basic financial statements include all funds and boards and commissions that
are controlled by the City Council. The basic financial statements include the City's blended
component units, entities for which the City is considered to be financially accountable. A
blended component unit, although a legally separate entity, is in substance, part of the City's
operations and so data from this entity is combined with the City. The City's following blended
component units are described below.
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 is 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.
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 in 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.
31
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Description of Discretely Presented Component Unit
San Rafael Sanitation District — The San Rafael Sanitation District (District) was formed in 1947
under Section 4700 of the California Health and Safety Code to provide wastewater transmission
over the southern two-thirds of the City and adjacent unincorporated areas. The 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 in 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.
D. Basis of Presentation
Government -wide Statements - The Statement of Net Assets and the Statement of Activities
display information about the primary government (the City) and its component units. These
statements include the financial activities of the overall City government, except for fiduciary
activities. Interfund transfers and amounts owed between funds within the primary government
have been eliminated from the statements. Amounts representing interfund services and uses
remain in the statements. These statements distinguish between the governmental and business -
type activities of the City. Governmental activities generally are financed through taxes,
intergovernmental revenues, and other nonexchange transactions. Business -type activities are
financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program
revenues for each segment of the business -type activities of the City and for each function of the
City's governmental activities. Direct expenses are those that are specifically associated with a
program or function and, therefore, are clearly identifiable to a particular function. Program
revenues include (a) charges paid by the recipients of goods or services offered by the programs,
(b) grants and contributions that are restricted to meeting the operational needs of a particular
program and (c) fees, grants and contributions that are restricted to financing the acquisition or
construction of capital assets. Revenues that are not classified as program revenues, including all
taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City's
funds, including fiduciary funds and blended component units. Separate statements for each fund
category — governmental and proprietary — are presented. The emphasis of fund financial
statements is on major individual governmental and enterprise funds, each of which is displayed
in a separate column. All remaining governmental and enterprise funds are aggregated and
reported as nonmajor funds.
32
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE i - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are those in
which each party receives and gives up essentially equal values. Nonoperating revenues, such as
subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
E. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or
expenditures/expenses equal to ten percent of their fund -type total and five percent of the grand
total. The General Fund is always a major fund. The City may also select other funds it believes
should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial
statements:
General Fund — Accounts for all financial resources and transactions except those required to be
accounted for in other funds.
Traffic and Housing Mitigation Fund — Established to maintain long-term developer deposits
for major housing and street improvement projects.
Household Hazmat Facility Fund — Established to account for State mandated hazardous
materials information, collection, and reporting. Expenditures include inspection of businesses
for compliance with regulations. This fund also serves as the depository for countywide
Household Hazardous Waste Program.
Redevelopment Agency Capital Projects Fund — Consist of five funds; 1) the 1999 Agency
Bonds Funds, 2) the 2002 Agency Bonds Funds, 3) the RDA Capital Improvement Fund (for
improvement projects), 4) project Administration Fund, and 5) the Housing Fund.
The City reported its only enterprise fund as a major fund in the accompanying financial
statements. The enterprise funds is:
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.
The City also reports the following fund types:
Internal Service Funds - These funds account for: building maintenance, employee benefits,
liability insurance, workers' compensation, dental insurance, all of which are provided to other
departments on a cost -reimbursement basis.
33
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE I -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. Basis of Accounting
The government -wide, proprietary and discretely presented component unit financial statements
are reported using the economic resources measurement focus and the full accrual basis of
accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities
are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Under this method, revenues are recognized when
measurable and available. The City considers all revenues reported in the governmental funds to
be available if the revenues are collected within sixty days after year-end. Expenditures are
recorded when the related fund liability is incurred, except for principal and interest on long-term
debt, claims and judgments, and compensated absences, which are recognized as expenditures to
the extent they have matured. General capital asset acquisitions are reported as expenditures in
governmental funds. Proceeds from long -tern debt and acquisitions under capital leases are
reported as other financing sources.
Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental
revenues, interest revenue, charges for services, fines and forfeitures. Sales taxes collected and
held by the state at year end on behalf of the City are also recognized as revenue. Other receipts
and taxes are recognized as revenue when the cash is received.
Non -exchange transactions, in which the City gives or receives value without directly, receiving
or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the
accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or
assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in
which all eligibility requirements have been satisfied. Under the terms of grant agreements, the
City may fund certain programs with a combination of cost -reimbursement grants, categorical
block grants, and general revenue. Thus, both restricted and unrestricted net assets may be made
available to finance program expenditures. The City's policy is to first apply restricted grant
resources to such programs, followed by general revenues if necessary.
The City considers restricted shared state revenues such as gasoline taxes and public safety sales
taxes, restricted locally imposed transportation sales taxes, fines, forfeitures, licenses, permits,
charges for services, and program grants as program revenues.
Certain indirect costs are included in program expenses reported for individual functions and
activities.
The City follows statements and interpretations of the Financial Accounting Standards Board and
its predecessors that were issued on or before November 30, 1989, in accounting for its business -
type activities, unless they conflict with Government Accounting Standards Board
pronouncements.
WE
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Confinued)
G. Budgets, Budgetary Accounting, And Encumbrances
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 airy 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 committnents 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 a reservation 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.
The following departments incurred expenditures in excess of their budgets:
General Government
General Fund $10,313
Public Safety
General Fund 265,037
Emergency Medical Services Special Revenue Fund 66,846
Public Works and Parks
Traffic and Housing Mitigation Special Revenue Fund
19,429
Redevelopment Agency Capital Projects Fund
18,638
Baypoint Lagoon Assessment District Special Revenue Fund
4,367
Loch Lomond Assessment District Special Revenue Fund
53
Development Services Special Revenue Fund
37,332
Culture and Recreation
Recreation Revolving Special Revenue Fund 348,554
Library Special Revenue Fund 2,880
Grants Special Revenue Fund 32,555
$806,004
35
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H. Cash Equivalents
For purposes of the statement of cash flows, the City considers all highly liquid investments
(including all restricted assets) with maturity of three months or less when purchased to be cash
equivalents. The City maintains a cash and investment pool that is available for use by all funds.
As the proprietary funds' share of this pool is readily available when needed, such share is also
considered to be cash equivalent. Deposit assets in the proprietary funds are related to insurance
and benefits and are not considered cash equivalents for purposes of the statement of cash flows.
I. Capital Assets
All capital assets are valued at historical cost or estimated historical cost if actual historical cost
is not available. Contributed capital assets are valued at their estimated fair market value on the
date contributed.
GASB Statement No 34 requires the inclusion of infrastructure capital assets in local governments'
basic financial statements. In accordance with GASB Statement No. 34, the City has included the
value of all infrastructure capital assets into its Basic Financial Statements using the Basic
Approach for infrastructure reporting.
The purpose of depreciation is to spread the cost of capital assets equitably among all users over the
life of these assets. The amount charged to depreciation expense each year represents that year's pro
rata share of the cost of capital assets.
Depreciation is provided using the straight-line method which means the cost of the asset is divided
by its expected useful life in years and the result is charged to expense each year until the asset is
fully depreciated. The City has assigned the useful lives listed below to capital assets:
Buildings, improvements, and structures 20 — 25 years
Machinery and equipment 4 - 15 years
Infrastructure 15- 50 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase is reflected in the capitalized value of the asset
constructed, net of interest earned on the invested proceeds over the same period.
Capital assets, excluding infrastructure, are recorded if acquisition or construction costs exceeds
$5,000. The similar threshold for infrastructure is $25,000.
J. Compensated Absences
Compensated absences are accrued as earned. Upon termination, employees are paid for all unused
vacation at their current hourly rates. After five to twenty years of employment, one half of
accumulated sick leave becomes vested, up to a maximum amount as specified under labor contract
provisions. The vested portion is available for current use or, if unused, is payable at termination or
retirement.
W.
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The long-term portion of the liability for compensated absences for governmental fund type
operations is recorded as compensated absences in the government -wide financial statements.
Compensated absences are liquidated by the fund that has recorded the liability. Proprietary fund
liabilities are recorded within their respective funds.
The changes of the compensated absences were as follows:
Governmental Business -Type
Activities
Activities
Total
Beginning Balance $5,049,775
$5,049,775
Additions 2,969,150
$232,738
3,201,888
Payments (3,663,205)
(106,944)
(3,770,149)
Ending Balance $4,355,720
$125,794
$4,481,514
Current Portion $736,332
$10,597
$746,919
If. Property Tax Levy, Collection and Maxinuun Rates
State of California Constitution Article XIIl A provides that the combined maximum property tax
rate on any given property may not exceed 1% of its assessed value unless an additional amount for
general obligation debt has been approved by voters. Assessed value is calculated at 100% of
market value as defined by Article XIIl A and may be adjusted by no more than 2% per year unless
the property is sold, transferred, or substantially improved. The State Legislature has determined the
method of distribution of receipts from a 1% tax levy among the counties, cities, school districts
and other districts. Marin County assesses properties, bills for and collects property taxes on the
schedule that follows:
Secured
Unsecured
Valuation/lien dates January 1 January 1
Levy dates July 1 July I
Due dates (delinquent as of) 50% on November 1 (December 10) July 1 (August 31)
50% on February I (April 10)
The term "unsecured" refers to taxes on personal property other then land and buildings. These
taxes are secured by liens on the property being taxed.
Property taxes are levied and recorded as revenue when received in the fiscal year of levy because
of the adoption of the "alternate method of property tax distribution," known as the Teeter Plan, by
the City and the County of Marin. The Teeter Plan authorized the auditor -controller of the County
of Marin to allocate 100% of the secured property taxes billed, but not yet paid. The County of
Marin remits tax monies to the City in three installments, as follows:
55 % remitted on December 15
40% remitted on April 15
5% remitted on June IS
37
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
L. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent asset and liabilities at the dates of the financial
statements and the reported amounts of revenues and expenditures/expenses during the reporting
periods. Actual results could differ from those estimates.
M. Fund Recategorization
On July 1, 2006, the City recategorized the Equipment Replacement, Radio Replacement and the
Telephone Replacement funds as Capital Project Funds. Accordingly, both total beginning net
assets and total beginning governmental fund balances have been increased by $3,044,542, and the
Internal Service beginning net assets decreased the by same amount.
NOTE 2 - CASH AND INVESTMENTS
The City's goal is to invest at the maximum yield, consistent with safety and liquidity, while
individual funds can process payments for expenditures at any time.
A. Policies
The City invests in individual investments and in investment pools. Individual investments are
evidenced by specific identifiable securities instruments, or by an electronic entry registering the
owner in the records of the institution issuing the security, called the book entry system. In order to
increase security, the City employs the Trust Department of a bank as the custodian of certain City
managed investments, regardless of their form.
California Law requires banks and savings and loan institutions to pledge government securities
with a market value of 110% of the City's cash on deposit, or first trust deed mortgage notes with a
market value of 150% of the deposit, as collateral for these deposits. Under California Law this
collateral is held in a separate investment pool by another institution in the City's name and places
the City ahead of general creditors of the institution.
The City's investments are carried at fair value, as required by generally accepted accounting
principles. The City adjusts the carrying value of its investments to reflect their fair value at
each fiscal year end, and it includes the effects of these adjustments in income for that fiscal
year.
38
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 2 - CASH AND INVESTMENTS (Continued)
B. Classification
Cash and investments as of June 30, 2007 are classified in the financial statements as shown below,
based on whether or not their use is restricted under the terms of City debt instruments or agency
agreements.
Financial Statement Presentation:
Statement of Net Assets:
City of San Rafael:
Cash and investments available for operations $40,329,203
Restricted cash and investments 1,478,736
Total Primary Government Cash and Investments 41,807,939
San Rafael Sanitation District: -
Cash and investments available for operations 7,742,902
Restricted cash and investments 493,411
Total San Rafael Sanitation District Cash and
Investments 8,226,313
Total Cash and Investments $50,034,252
The City does not allocate investments by fund. Each proprietary fund's portion of Cash and
Investments Available for Operations is in substance a demand deposit available to finance
operations, and is considered a cash equivalent in preparing the statement of cash flows.
C. Investments Authorized by the California Government Code and the City's Investment Policy
The City's investment policy and the California Government Code allow the City to invest in the
following provided the credit ratings of the issuers are acceptable to the City; and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of
the California Government Code, or the City's Investment Policy where it is more restrictive:
Authorized Investment Type
U.S. Government Obligation
U.S. Agency Securities and Instruments
Repurchase Agreements
Primer Commercial Paper
Bankers' Acceptance
Medium -Term Corporate Notes
Negotiable Certificates of Deposit
Non-negotiable Certificates of Deposit
Local Agency Investment Fund
Money Market/Mutual Funds
Maximum
Maturity
Maximum
Percentage of
Portfolio
5 years
No limit
5 years
No limit
1 year
No limit
270 days
25%
180 days
40%
5 years
30%
5 years
30%
180 days
No limit
N/A
N/A
N/A
10%
Maximum
Investment in One
Issuer
No limit
No limit
No limit
$1,000,000
$2,000,000
$1,000,000
No limit
No limit
N/A
N/A
39
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 2 - CASH AND INVESTMENTS (Continued)
The City of San Rafael Sanitation District adopted the investments policy of the Treasurer and Tax
Collector of the County of the Marin. Accordingly, the District, following the County, may invest in
U.S. Treasury and agency securities, commercial paper, banker's acceptances, time deposits,
repurchases agreements, and the State of California LAIR The district, additionally, may invest in
the Marin County Investment Pool. At year-end, the District's investments were in compliance with
the above provisions.
D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents
under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged
as reserves to be used if the City fails to meet its obligations under these debt issues. The California
Government Code requires these funds to be invested in accordance with City ordinance bond
indentures or State statute. The table below identifies the investment types that are authorized for
investments held by fiscal agents. The table also identifies certain provisions of these debt
agreements
Maximum
Maximum
Minimum Credit
Percentage of
Authorized Investment Type
Maturity
Quality
Portfolio
U.S. Treasury Obligations
N/A
N/A
No Limit
U.S. Agency Securities
3 years
N/A
No Limit
Category
Banker's Acceptances
360 days
Highest
No Limit
Rating
Category
Money Market Funds
N/A
Highest
No Limit
Rating
Category
Commercial Paper
270 days
Highest
No Limit
Rating
Category
Guaranteed Investment Contracts
N/A
Highest
No Limit
(fully collateralized) (A)
Rating
Municipal Obligations
N/A
Two Highest
Ratings
No LimitCategory
(A) Guaranteed Investment Contracts must be fully collateralized
with U.S.
Treasury Obligations or
U.S. Agency Obligations.
,11
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 2 - CASH AND INVESTMENTS (Continued) .
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. The City also manages its interest rate risk by
holding most investments to maturity, thus reversing unrealized market gains and losses.
Information about the sensitivity of the fair values of the City's investments (including investments
held by bond trustee) to market interest rate fluctuations is provided by the following table that
shows the distribution of the City's investments by maturity or earliest call date:
Type of Investment
City
U.S. Treasury Bill
U.S. Federal Agency Securities
Money Market Funds
Local Agency Investment Fund
Total Investments
Cash in banks and on hand
Total City Cash and Investments
12 Months 13 to 24 25 to 60
or Less Months Months Total
$3,142,245
$988,500 $995,100 $5,125,845
2,241,275
3,259,630 4,214,700 9,715,605
833,151
24,750,356
833,151
24,750,356
$30,967,027
$4,248,130 $5,209,800 40,424,957
1,382,982
41,807,939
San Rafael Sanitation District:
Cash in banks and short-term pooled investments 8,226,313
Total DistricPs Cash and
Investments 8,226,313
Total Cash and Investments $50,034,252
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The City reports its investment in LAIF at the fair value amount provided by LAIF,
which is the same as the value of the pool share. The balance is available for withdrawal on
demand, and is based on the accounting records maintained by LAIF, which are recorded on an
amortized cost basis. Included in LAIF's investment portfolio are collateralized mortgage
obligations, mortgage -backed securities, other asset -backed securities, loans to certain state
funds, and floating rate securities issued by federal agencies, government -sponsored enterprises,
United States Treasury Notes and Bills, and corporations. At June 30, 2007, these investments
matured in an average of 176 days.
Money Market Funds are available for withdrawal on demand
41
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 2 - CASH AND INVESTMENTS (Continued)
F. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. Presented below is the actual rating as of June 30, 2007 for each of the Primary
Government's investment types as provided by Standard and Poor's or Fitch investment rating
systems, except as noted:
Type of Investment Aaa/AAA Total
City:
U.S. Federal Agency Securities $9,715,605 $9,715,605
Not rated:
U.S. Treasury Bill 5,125,845
Money Market Funds 833,151
Local Agency Investment Fund 24,750,3 %
Cash in banks and on hand 1,382,982
Total City Cash and Investments 41,807,939
San Rafael Sanitation District:
Not rated:
Cash in banks and short term
pooled investments $8,226,313
Total District's Cash and
Investments 8,226,313
Total Cash and Investments $50,034,252
NOTE 3 - INTER -FUND TRANSACTIONS
A. Inter fund Receivables and Payables
Amounts due to or due from other funds reflect inter -fund balances for services rendered or short-
term loans expected to be repaid in the next fiscal year.
As of June 30, 2007, the Household Hazsnat Facility Special Revenue Fund, the Emergency Medical
Service Special Revenue Fund, and the Employee Benefit hiternal Service Fund owed the General
Fund $499,894, $266,707, and $602,891, respectively.
B. Transfers
Resources may be transferred from one City fund to another. Transfers routinely fund capital
projects or capital outlays, lease or debt service payments, operating expenses and low and
moderate -income housing projects.
42
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 3 - INTER -FUND TRANSACTIONS (Continued)
Transfers between funds during the fiscal year ended June 30, 2007 were as follows
From Fund
To Fund
Amount
General Fund
Non -major Governmental Funds
$5,078,930 A
Internal service Funds
386,456 B
Redevelopment Agency Capital Projects Fund
Non -major Governmental Funds
300,240 A
Non -major Governmental Funds
General Fund
513,820 C
Redevelopment Agency Capital Projects Fund
300,240 D
Non -major Governmental Funds
378,460 A
Puking Services Enterprise Funds
General Fund
140,170 C
Non -major Governmental Funds
72,000 A
Internal Service Funds
Non -major Governmental Funds
28,500 A
$7,198,716
(A) Transfers to the Non -major Governmental Funds were for administrative costs, program support,
capital projects, special projects and housing portion of debt service.
(B) Transfers to the Internal service Funds were for benefits and claims reserves.
(C) Transfers to the General Fund were for administrative costs and costs of dispatch.
(D) Transfers to Redevelopment Agency Capital Projects Fund is for Administrative support.
C. Internal Balances
Internal balances are presented in the Entity -wide financial statements only. They represent the net
interfund receivables and payables remaining after the elimination of all such balances within
governmental and business -type activities.
NOTE 4 LLOANS RECEIVABLE AND DEFERRED REVENUE
A. Summmy of Loans Receivable
The City has deferred the recognition of revenue from the proceeds of loans receivable or reserved
the portion of fund balance represented by these loans. At June 30, 2007, these loans totaled:
Employees' Computer Loans $19,319
Centertown Associates 287,257
One "H" Street Associates 77,143
Total $383,719
a
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 4 —LOANS RECEIVABLE AND DEFERRED REVENUE (Continued)
B. Employee Computer Loans
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.
C. Centertown Associates
The City loaned Centertown Associates, Ltd, $303,000 at 3% interest due semiannually. The loan
was made for the construction of 60-units affordable Centertown apartments and is fully secured by
a deed of trust. The final payment is due on July 31, 2065.
D. Otte "H" Street Associates
The City loaned One "H" Street Associates $100,000 at zero percent interest with annual payments
of $2,857 and with a final payment due January 18, 2034. The loan was made in connection with an
affordable housing project located at One "H" Street.
NOTE 5 - CAPITAL ASSETS
Changes in capital assets during the fiscal year consist of:
Balance
Balance
July I, 2006
Additions
Retirements
Transfers June 30, 2007
Governmental Activities
Capital assets not being depreciated:
Land
$82,146,643
$82,146,643
Construction in progress
8,467,740
$1,584,291
($35,593) 10,016,438
Total capital assets not being depreciated
90,614,383
1,594,291
(35,593) 92,163,091
Capital assets being depreciated:
Land improvements
7,419,678
534,363
7,954,041
Buildings and structures
27,057,835
987,587
35,593 28,081,015
Machinery and equipment
14,192,858
873,453
($498,553)
14,567,758
Infrastructure
168,987,948
322,470
169,310,418
Total capital assets being depreciated
217,658,319
2,717,873
(498,553)
35,593 219,913,232
Less accumulated depreciation for:
Land improvements
(3,065,095)
(274,647)
(3,339,742)
Buildings and structures
(6,279,703)
(631,061)
(6,910,764)
Machinery and equipment
(7,885,644)
(1,066,806)
451,769
(8,500,681)
Infrastructure
(74,915,715)
(4,685,959)
(79,601,674).
Total accumulated depreciation
(92,146,157)
(6,658,473)
451,769
(98,352,861)
Total net capital assets being depreciated
125,512,162
(3,940,600)
(46,784)
35,593 121,560,371
Total governmental activity capital assets
$216,126,545
($2,356,309)
($46,784)
$213,723,452
I
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 5 - CAPITAL ASSETS (Continued)
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
Less accumulated depreciation for:
Buildings and structures
Machinery and equipment
Total accumulated depreciation
Total net capital assets being depreciated
Total business -Type activity capital assets
San Rafael Sanitation District
Capital assets not being depreciated:
Land & easements
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Subsurface lines
Sewage collection facilities
General plant and administration
Total capital assets being depreciated
Less accumulated depreciation for:
Subsurface lines
Sewage collection facilities
General plant and administration
Total accumulated depreciation
Total net capital assets being depreciated
Total District's capital assets
Balance Retirements Balance
July 1, 2006 Additions and Adjustments June 30, 2007
$8,620,853 $8,620,853
52,762 ($8,512) 44,250
8,673,615 (8,512) 8,665,103
8,808,876 9,808,876
897,144 $9,800 (18,097) 888,847
9,706,020 9,800 (18,097) 9,697,723
(897,347)
(176,177)
(1,073,524)
(207,851)
(82,047)
18,097 (271,801)
(1,105,198)
(258,224)
19,097 (1,345,325)
8,600,822
(248,424)
8,352,398
$17,274,437
($248,424)
($8,512) $17,017,501
Balance Balance
July I, 2006 Additions Transfers June 30, 2007
$115,329 $115,329
614,324 $2,907,355 ($25,452) 3,496,227
729,653 2,907,355 (25,452) 3,611,556
12,152,655
12,152,655
28348,164
10,359 25,452 28,383,975
359,695
11,699 371,394
40,960,514
22,058 25,452 40,908,024
(7,750,375)
(211,397)
(7,961,772)
(9,743 004)
(733,391)
(10,476,395)
(81,136)
(33,199)
(114,335)
(17,574,515)
(977,987)
(18,552,502)
23,285,999
(955,929)
25,452 22,355,522
$24,015 652
$1,951,426
$25,967,078
Capital Asset Contributions - Some capital assets may have been acquired using Federal and State grant
funds, or were contributed by developers or other governments. GASB Statement 34 requires that these
contributions be accounted for as revenues at the time the capital assets are contributed.
45
CITY OF SAN IZAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 5 - CAPITAL ASSETS (Continued)
Depreciation Allocation - Depreciation expense is charged to functions and programs based on their
usage of the related assets. The amounts allocated to each function or program are as follows:
Governmental Activities
General government $489,954
Public safety 594,741
Public works and parks 5,245,485
Community development/redevelopment 50,776
Culture and recreation 277,517
Total Governmental Activities $6,658,473
Business -Type Activities
Parking services $258,224
Total Business -type Activities $258,224
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 6 - LONG-TERM OBLIGATIONS
A summary of governmental and business -type activities transactions for the fiscal year ended June 30,
2007, follows:
Governmental Activities:
San Rafael Joint Powers Financing Authority
1997 Authority Revenue Bonds
4.00%-6.00%, due 9/2/2011
San Rafael Redevelopment Agency
1999 Tax Allocation Bonds
Current Interest Bonds
4.5%-5.00%, due 12/1/2022
Capital Appreciation Bonds
5.58%-5.6%, due 12/12022
2002 Tax Allocation Refunding Bands
2.00%-5.25%, due 12/l2021
Total Tax Allocation Bonds
Special Assessment Bonds
Mariposa Road Assessment
4.50%-6.90%, due 92/2008
Total Special Assessment Bonds
Ground Lease Note Payable,
8,00%, due 11/l2024
Court Fine Repayment Promissory Note,
3.873%, due November 2011
Fire Truck Capitalized Lease Obligations,
2.92%, due 3242009
Telephone System Capitalized Lease Obligations,
4.28%, due 05/30/2012
Total Governmental Long-term Debt
Business -type Activities
2003 Authority Lease Revenue Bonds
Total Enterprise Fund Debt
San Rafael Sanitation District
2001 Certificates of Participation
Less: unamortized discount/ issuance cost
Total District Debt
Authorized Restated Balance Balance Current
and Issued July 1, 2006 Additions Retirements June 30, 2007 Portion
$5,250,000 $1,155,000 $205,000 $950,000 $170,000
21,115,000 17,170,000
665,000 16,505,000 695,000
2,389,004 3,499,107
$198,394 3,697,501
25,020,000 20,180,000
1,165,000 19,015,000 1,195,000
40,849,107
198,394 1,830,000 39,217,501 1,890,000
233,698 50,000 15,000 35,000 15,000
50,000 15,000 35,000 15,000
169,000 169,000
169,000
1,133,458
1,133,458 103,741 1,029,717
213,599
668,134 412,441
133,514 278,927
137,402
318,000
318,000 319,000
58,330
$42.635.548
$1,649,852 $2,287,255 $41,998,145
$2,484,330
7,605,000 $7,455,000
$155,000
$7,300,000
$160,000
$7,455,000
$155,000
$7,300,000
$160,000
4,710,000 $2,995,000 $380,000 $2,615,000 $395,000
($142,172) (27,968) (114,204)
$2,852,828 $352,032 $2,500,796 $395,000
47
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 6 - LONG-TERM OBLIGATIONS (Continued)
A. 1997Authority Revenue Bonds
On January 28, 1997, the San Rafael Joint Powers Financing 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.
B. 1999 Tax Allocation Bonds and Capital Appreciation Bonds
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 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 a lien on tax revenues and amounts on deposit in certain funds and
accounts held by the fiscal agent.
Restatement — The Capital Appreciation Bonds were issued at a large discount which is amortized
(termed accretion) over the life of the Bonds. This accretion had not been recorded in prior years and
accordingly the beginning balance of the Capital Appreciation Bonds and beginning net assets have
been restated by $1,110,103.
48
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 6 - LONG-TERM OBLIGATIONS (Continued)
C. 2002 Tax Allocation Refunding Bonds
On October 9, 2002, the Agency issued Tax Allocation Refunding Bonds in the amount of $25,020,000.
The proceeds of the bonds were used to refund the 1992 Tax Allocation Refunding Bonds and the 1995
Tax Allocation Bonds. The Bonds mature annually each December 1 from 2002 to 2022, 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, and by lot within any one
maturity, prior to their respective maturity dates, on any date on or after December 1, 2012, at a price
equal to the principal amount, plus accrued interest on the redemption date. The bonds are payable
from tax revenues to be derived from the redevelopment activities of the Agency related to the Central
San Rafael Redevelopment Project Area.
D. Mariposa Road Assessment District Limited Obligation ImprovementBonds
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 cost of
issuance on the bonds. The bonds were issued as Serial Bonds and mature in various arnounts on each
September 2 commencing September 2, 1994 and ending September 2, 2008. Interest is 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%.
E. Note Payable
At June 30, 2007, 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, 2007 was
$169,000 plus accrued interest of $158,354 which is recorded as interest payable.
F. Capitalized Lease Obligations
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. Under the lease agreements,
ownership of the fire trucks passes to the City at the end of the lease. Since the lease is in essence a
financing arrangement, the cost of the fire trucks and the amount of the leases have been included in the
City's financial statements.
G. Court Fine Repayment Promissory Note
On December 29, 2006, the City signed a promissory note in the amount of $1,133,458 to repay the
Superior Court of California, County of Marin. The purpose of the note is to repay tine Superior
Court for over payment of court revenues, generated from traffic violations, made to the City from
the period July 1999 through June 2006. The note bears interest at 3.873% per annum. Principal and
interest are payable monthly commencing from January 2007 until December 2011.
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 6 - LONG-TERM OBLIGATIONS (Continued)
H. Telephone System Capital Lease
On May 30, 2007, the City entered into a capital lease agreement in the amount of $318,000 to
purchase telephone related network equipment and services. Principal and interest payments are due
each May 30 and November 30, commencing November 30, 2007, until May 30, 2011. The capital
lease bears interest at 4.28% per annum.
L 2003 Authority Lease Revenue Bonds
On March 26, 2003, the Authority issued 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 I
from 2006 to 2033, in amounts ranging from $150,000 to $290,000. Interest is payable semiannually on
April I 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.
J. Discretely Presented Component Unit — San Rafael Sanitation District — 2001 Certificates of
Participation
On May 1, 2001, the District and its Financing Corporation issued $4,710,000 of Certificates of
Participation at a discount of $35,121 maturing in 2012. The certificates were 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 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.
As of June 30, 2007, the outstanding balance of the defeased 1991 Certificates of Participation was
$3,200,000.
50
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 6 - LONG-TERM OBLIGATIONS (Continued)
Future debt service requirements, including interest and capital leases, at June 30, 2007, were as
follows:
Component
Unit
For the year
Governmental
Activities
Business -type
Activities
San Rafael Sanitation District
Ended June 30
Principal
Interest
Principal
Interest
Principal
Interest
2008
$2,480,330
$1,775,462
$160,000
$336JI6
$395,000
$103,050
2009
2,593,398
1,675,827
165,000
331,616
410,000
86,745
2010
2,534,259
1,560,463
170,000
326,666
430,000
69,310
2011
2,656,103
1,442,930
175,000
321,141
440,000
50,820
2012
2,672,555
1,313,760
185,000
314,141
940,000
20,680
2013-2017
13,200,000
4,636,998
1,035,000
1,453,256
2018-2022
16,295,000
1,534,240
1,280,000
1,209,446
2023-2027
3,699,000
36,500
1,605,000
879,130
2028-2032
2,050,000
436,250
2033
475,000
23,750
Totals 46,130,644 $33,976,180 $7,300,000 $5,631,812 2,615,000 $330,605
Reconciliation of long-term debt:
Less unaccreted discount (4,132,499)
Less unamortized original issue discount (114,204)
$41,998,145 $2,500,796
NOTE 7 - DEBT WITHOUT CITY COMMITMENT
The City has sponsored the issuance of the following debt, for which the City is not liable for
repayment but is only acting as an agent for the property owners and bondholders:
San Rafael Redevelopment Agency
Multifamily Housing Revenue Bonds
California Statewide Communities
Development Authority Revenue Bonds
San Rafael Redevelopment Agency
Variable Rate Demand Multifamily
Housing Revenue Bonds
San Rafael Redevelopment Agency
Multifamily Housing Revenue Bonds-2001
Multifamily Housing Revenue Bonds-2007
City of San Rafael
Variable Rate Revenue Bonds
Project Original
Description Amount
162-175 Belvedere
Apartments $3,590,529
St. Marks School
55 Fairfax
Apartments
San Rafael Commons
Apartments
Martinelli House
Kaiser Foundation
Hospitals
San Rafael Redevelopment Agency Martinelli House
Multifamily Housing Revenue Bonds-2007 Series A Project
5,605,000
3,000,000
6,100,000
1,000,000
275,000,000
6,000,000
Outstanding
June 30, 2007
$1,391,194
5,380,000
2,800,000
5,840,000
4,576,396
195,630,000
4,576,396
51
CITY OF SAN RAFAEL
r
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 8 - NET ASSETS AND FUND BALANCES
A. Net Assets
Net Assets is the excess of all the City's assets over all its liabilities, regardless of fund. Net Assets
are divided into three captions. These captions apply only to Net Assets, which is determined only at
the Government -wide level, and are described below:
Invested in Capital Assets, net of related debt describes the portion of Net Assets which is represented
by the current net book value of the City's capital assets, less the outstanding balance of any debt issued
to finance these assets.
Restricted describes the portion of Net Assets which is restricted to use by the terns and conditions of
agreements with outside parties, governmental regulations, laws, or other restrictions which the City
cannot unilaterally alter. These principally include assets restricted due to Redevelopment Agency
bond covenants or low and moderate income housing loan agreements.
Unrestricted describes the portion of Net Assets which is not restricted to use.
B. Fund Balance
In the fund financial statements, fund balances represent the net current assets of each fund. Net
current assets generally represent a fund's cash and receivables, less its liabilities. Portions of a
fund's balance may be reserved or designated for future expenditure.
C. Reservations
Reserves are restrictions placed by outside entities, such as other governments, which restrict the
expenditures of the reserved funds to the purpose intended by the entity which provided the funds. The
City cannot modify or remove these restrictions or reserves.
D. Designations
Designations are imposed by City Council to reflect the future spending plans or concerns about the
availability of future resources. Designations may be modified, amended, or removed by Council
action.
52
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 9 —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 Employee's 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
47.23% and 43.64% of payroll to Fund for Police and Fire personnel, respectively, and 28.20% for
other covered employees for the year ended June 30, 2007.
C. Annual Pension Cost
The City's annual pension cost to the Fund for the year ended June 30, 2007, of $11,108,650 was equal
to the City's required and actual contributions. The annual required contribution was determined as
part of the actuarial performed as of June 30, 2006. The employer rates for normal cost is determined
using the Entry Age Normal Actuarial Cost Method, 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 2006 actuarial valuation include an assumed rate of return on
invested assets of 8.00%, annual payroll increases reflecting 4.00% for inflation and an approximate
range of 0.50% to 3.00% for merit and longevity. The actual rate of return on investments was a loss of
1.90%. 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 level in the amortization period. It is assumed that payroll will increase at an annual inflation rate
of 4.00% over the amortization period.
The Plans' actuarial value (which differs from market value) and funding progress over the most recent
three years available is set forth below at their actuarial valuation date of June 30:
53
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 9 — EMPLOYEES RETIREMENT PLAN (Continued)
Actuarial
Excess
Actuarial
Actuarial
Accrued
(Deficit)
Valuation
Value
Liability(AAL)
Assets
Date
of Assets
Entry Age
Over AAL
6130/04
$188,956,000
$248,665,000
($59,709,000)
6/30/05
195,698,000
265,205,000
(69,507,000)
6/30/06
209,785,000
306,079,000
(96,294,000)
Excess (Deficit)
Assets Over AAI
Funded
Covered
As a % of
Ratio
Payroll
Payroll
76%
$29,299,000
-204%
74%
28,357,000
-245%
69%
28,606,000
-337%
Actuarially required contributions for fiscal years 2007, 2006, and 2005 were $11,108,650, $9,316,354,
and $7,630,990, respectively. The City made these contributions as required, together with certain
immaterial amounts required as the result of the payment of other additional employee compensation.
NOTE 10 - PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION
RETIREMENT PLANS)
The City contributes to the Public Agency Retirement System (PARS), which is defined contribution
retirement plan. A defined contribution retirement plan provides retirement benefits in return for
services rendered, provides an individual account for each participant, and specifies how contributions
to the individual's accounts are determined instead of specifying the amount of benefits the individual is
to receive. The plan is 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 participants
in the plan from the date that they hired. An eligible employee is any employee who, at any time during
which the employer maintains this plan, is not accruing a benefit under the Marin County Employees'
Retirement Fund.
As determined by the plan, each employee must contribute 3.75% of gross earnings to the plan. The
City contributes an additional 3.75% of the employee's gross earnings. Contributions made by an
employee and the employer vest immediately.
During the year, the City and employees contributed $72,580. The total covered payroll of employees
participating in the. plan for the year ended June 30, 2007, was $1,935,467. The total payroll for the
year was $37,495,582.
54
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 10 - PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION
RETIREMENT PLANS) (Continued)
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 $119,559 to the plan on behalf of the
eligible employees.
NOTE I I — POST -EMPLOYMENT HEALTH CARE BENEFITS
The City provides certain health care benefits for retired employees and their spouses. The benefit
provisions were established under the authority of the 1937 Act, Section 31450, et. Seq. of the
Government Code. Substantially, all of the City's employees may become eligible for these benefits if
they are receiving a retirement benefit from the Mario County Employees' Retirement Fund within 120
days of retirement from City employment. At June 30, 2007, 246 retirees and surviving spouses
received post -employment health care benefits. Those expenditures are reduced by reimbursements
from the Marin County retirement Office by 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, 2007, those costs totaled $1,763,147 of which $1,061,412 was reimbursed.
NOTE 12 — JOINTLY GOVERNED ORGANIZATIONS
The City participates in the jointly governed organizations discussed below through formally organized
and separate entities established under the Joint Exercise of Powers Act of the State of California. As
separate legal entities, these entities exercise full powers and authorities within the scope of the related
Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the
power to make and execute contracts and the right to sue and be sued. Each joint organization is
governed by a board consisting of representatives from member municipalities. Each board controls the
operations of the respective joint organization, including selection of management and approval of
operating budgets, independent of any influence by member municipalities beyond their representation
on that board. Obligations and liabilities of this joint organization are not the City's responsibility and
the City does not have an equity interest in the assets of each joint organization except upon dissolution
of the joint organization.
55
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 12 — JOINTLY GOVERNED ORGANIZATIONS (Continued)
A. The Marin County Integrated On -Line Library System (System)
The Marin County Integrated On -Line Library System was formed to provide for the procurement,
ownership, operation, maintenance, and governance of an integrated on-line 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. The City contributed $92,239 to the System
for operating costs for the year ended June 30, 2007. Financial statements of the System can be
obtained at the County Librarian, Marin County Free Library, Civic Center, Administration Building,
San Rafael, California 94903.
B. The Marin Street Light Acquisition Joint Powers Authority (MSLAJPA)
The MSLAJPA was formed by the County of Marin and twelve local agencies to acquire street light
facilities, operate the facilities during the tendency of an eminent domain action against PG&E, and
the subsequent transfer of the facilities to the individual local agencies. Each of the local agency's
share of contributions was based on the number of 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.
The City's contribution to MSLAJPA was $34,054 for the year ended June 30, 2007. Financial
statements of the MSLAJPA can be obtained at 27 Commercial Boulevard, Suite C, Novato, CA
94949.
C. The Marin Emergency Radio Authority (MERA)
MERA was formed on February 28, 1998 by the County of Marin and 25 local agencies within the
County to plan, finance, implement, manage, own, and operate a County -wide public safety and
emergency radio system. The Governing Board consists of one representative from each member.
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 ram 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 in August 2002.
The City contributed $600,931 for the Authority's operation and debt service for the fiscal year
ended June 30, 2007. 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.
56
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 12 — JOINTLY GOVERNED ORGANIZATIONS (Continued)
D. The Countywide PlanningAgeney
The 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 Countrywide Planning Agency consists of one
member of the County Board of Supervisors and one member of the City Council of each
participating city. The City's contribution to the Agency was zero for the year ended June 30, 2007.
Financial statements of the Agency can be obtained at 3501 Civic Center Drive, San Rafael,
California 94903.
E. Tile Marin Telecommunications Agency
The Agency was established to regulate the rates for cable television service and equipment and to
advise the participants of their license authority. The Governing Board of the Marin
Telecommunications Agency consists of one member from each of the eleven participating agencies.
The City's contribution to the Agency was $121,051 for the year ended June 30, 2007. Financial
statements of the Agency can be obtained at 371 Bel Marin Keys Blvd, Suite 100, Novato, CA
94949.
E The Marin County Hazardous and Solid Waste Joint Powers Authority
The Authority was established by the County, local cities, and waste franchising districts to finance,
prepare and implement source reduction and recycling elements on a county -wide integrated waste
management plan as required by State Assembly Bill 939. The City's contribution to the Authority
was zero for the year ended June 30, 2007. Financial statements of the Authority can be obtained at
3501 Civic Center Drive, San Rafael, California 94903.
G. Friends of San Rafael
Friends of San Rafael is a California nonprofit Public Benefit Corporation 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 improvement and
infrastructure. The City's contribution to the Corporation was zero for the year ended June 30, 2007.
Financial statements of the Corporation can be obtained at P.O. Box 151560, San Rafael, CA 94915.
57
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 13 - RISK MANAGEMENT
The City manages risk by participating in the public entity risk pools described below and by retaining
certain risks.
Public entity risk pools are formally organized and separate entities established under the Joint Exercise
of Powers Act of the State of California. As separate legal entities, those entities exercise full powers
and authorities within the scope of the related Joint Powers Agreements including the preparation of
annual budgets, accountability for all funds, the power to make and execute contracts and the right to
sue and be sued. Each risk pool is governed by a board consisting of representatives from member
municipalities. Each board controls the operations of the respective risk pool, including selection of
management and approval of operating budgets, independent of any influence by member municipalities
beyond their representation on that board. Obligations and liabilities of these risk pools are not the
City's responsibility.
A. Risk Coverage
The City is a member of the California Joint Powers Risk Management Authority (CJPRMA) which
covers general liability claims up to $40,000,000 and workers' compensation claims up to the statutory
limits. The City also purchases commercial insurance for property damage claims with an insured
amount of $65,704,863. The City is self -insured up to a maximum of $500,000 for each general
liability claim, $750,000 for each worker's compensation claim, and $25,000 for each property damage
claim. Once the self -insured retention is met CJPRMA becomes responsible for payment of all claims
up to the limit. During the fiscal year ended June 30, 2007, the City contributed $395,938 for coverage
during the current year.
The contributions made to each risk pool equal the ratio of their respective payrolls to the total payrolls
of all entities participating in the same layer of each program, in each program year. Actual surpluses or
losses are shared according to a formula developed from overall loss costs and spread to member
entities on a percentage basis after a retrospective rating.
B. Insurance internal Service Funds
The Governmental Accounting Standards Board (GASB) requires municipalities to record their liability
for uninsured claims and to reflect the current portion of this liability as an expenditure in their financial
statements. As discussed above, the City has coverage for such claims, but it has retained the risk for
the deductible, or uninsured portion of these claims.
58
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2007
NOTE 13 -RISK MANAGEMENT (Continued)
The City's liability for uninsured general liability claims and workers' compensation claims, including
claims incurred but not reported, are reported in the City's Liability Insurance Internal Service Fund and
Workers' Compensation Internal Service Fund, respectively. The liability is based on historical trend
information provided by its third party administrators and was computed as follows at June 30:
Balance, beginning of year
Current year claims and changes
in estimates
Claims paid
Balance, end of year
Current portion
General Workers'
Liability Compensation Total
$445,063 $2,901,129 $3,346,192
1,775,142 3,049,212 4,824,354
(1,304,182) (2,308,183) (3,612,365)
$916,023 $3,642,158 $4,558,181
$598,922 $2,200,000 $2,798,922
The claims settlements have not exceeded insurance coverage for the past three years.
NOTE 14 - COMMITMENTS AND CONTINGENCIES
The City is subject to litigation arising in the normal course of business. In the opinion of the City
Attorney there is no pending litigation which is likely to have a material adverse effect on the
financial position 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 from $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. As of June 30, 2007, the
city has made significant progress in improving the accessibility of its programs, activities, services,
and facilities.
On October 1, 2002, the Agency entered into a second amendment to Section 33401 Tax Sharing
Agreement with San Rafael High School District. This agreement provides for additional payments
in the atnount of $179,000 each fiscal year beginning with fiscal year 2002-03 through fiscal year
2021-22.
59
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SUPPLEMENTAL INFORMATION
This Page Left Intentionally Blank
GENERAL FUND AND MAJOR SPECIAL REVENUE FUND
BUDGET -TO -ACTUAL STATEMENTS
GASB Statement 34 dictates that budget -to -actual information in the basic financial statements should be
limited to the General Fund and major Special Revenue Funds. This section is provided for the presentation
of Budget -to -Actual Statements for the General Fund, Traffic and Housing Mitigation and the Household
Hazard Facility Special Revenue Funds and Redevelopment.
63
CITY OF SAN RAFAEL
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2007
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:
Principal
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER)EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
FUND BALANCES, BEGINNING OF YEAR
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$42,043,570
$44,589,968
$44,921,449
$331,481
1,260,460
1,229,520
1,157,434
(72,086)
666,460
614,030
514,278
(99,752)
326,620
326,620
431,553
104,933
5,834,574
6,926,302
6,932,034
5,732
1,740,270
1,747,572
1,968,014
120,442
191,420
191,420
217,968
26,548
52,063,374 55,625,432 56,042,730 417,298
6,712,857
6,918,453
6,928,766
(10,313)
29,910,917
30,379,590
30,643,627
(265,037)
6,822,114
7,014,430
6,914,505
99,925
2,835,777
3,201,898
3,163,138
38,760
1,983,815
2,006,049
1,990,631
15,418
56,468
132,755
1,049,181
(916,426)
119,619
293,709
213,390
80,319
" 103,741 103,741
48,441,567 50,049,625 51,006,979 (957,354)
3,621,807 5,575,807 5,035,751 (540,056)
653,990 653,990 653,990
(5,221,560) (5,214,560) (5,465,286) (250,726)
(4,567,570) (4,560,570) (4,811,296) (250,726)
($945,763) $1,015,237 224,455 ($790,782)
5,697,542
FUND BALANCES, END OF YEAR $5,921,997
64
CITY OF SAN RAFAEL
TRAFFIC AND HOUSING MITIGATION SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED DUNE 30, 2007
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
REVENUES
Use of money and property
$371,484
$371,484
Charges for services
15,823
15,823
Total Revenues
387,307
387,307
EXPENDITURES
Current:
Public works and parks
$42,934 $42,934
62,363
(19,429)
Capital outlay
68,508
(68,508)
Total Expenditures
42,934 42,934
130,871
(87,937)
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER)EXPENDITURES
(42,934) (42,934)
256,436
299,370
Net Change in Fund Balances
($42,934) ($42,934)
256,436
$299,370
- FUND BALANCES, BEGINNING OF YEAR
9,678,030
FUND BALANCES, END OF YEAR
$9,934,466
65
CITY OF SAN RAFAEL
HOUSEHOLD HAZMAT FACILITY SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED TUNE 30, 2007
REVENUES
Licenses and permits
Use of money and property
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
Public safety
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER)EXPENDITURES
Net Change in Fund Balances
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$547
$547
$520
$520
1,693
1,173
5,000
5,000
9,025
4,025
1,301,171
1,301,171
1,037,195
(263,976)
310
310
1,306,691
1,306,691
1,048,770
(257,921)
1,287,566
1,297,566
1,035,546
252,020
1,287,566
1,287,566
1,035,546
252,020
19,125
19,125
13,224
(5,901)
$19,125
$19,125
13,224
($5,901)
35,005
$48,229
CITY OF SAN RAFAEL
REDEVELOPMENT AGENCY CAPITAL PROJECTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2007
REVENUES
Taxes and special assessments
Use of money and property
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works and parks
Community development/redevelopment
Capital outlay
Capital improvement/special projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
FUND BALANCES, BEGINNING OF YEAR
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$900,000
$900,000
$974,408
$74,408
148,240
148,240
356,797
208,557
359,998
1,658,850
1,298, 852
9,676
8,676
43,349
3C673
10,000
10,000
237,922
227,922
1,066,916 1,426,914 3,271,326 1,844,412
30,260
30,487
29,708
779
142,843
126,021
144,659
(18,638)
1,489,580
1,475,312
1,155,904
319,408
93,216
93,216
827,221
(734,005)
223,337
242,837
233,915
8,922
1,978,236 1,967,873 2,391,407 (423,534)
(911,320) (540,959) 879,919 1,420,878
300,240 300,240 300,240
(300,240) (300,240) (300,240)
($911,320) ($540,959) 879,919 $1,420,878
8,062,266
FUND BALANCES, END OF YEAR $8,942,185
67
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NON -MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Recreation Revolving Funds — 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, pubic
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 self -funding storm drain maintenance program plus
separate programs through the County and Bay Area to educate residents about urban runoff
pollution.
Development Services Fund — Established to account for development activities that are supported
by external sources of funds. This fund does not account for the operating costs of building,
planning, and engineering, which are located in the General Fund.
Grants Fund — Established to account for grants for the Library, Childcare, Police and Falkirk
Cultural Center.
Parkland Dedication Fund — Established to account for long-term developer deposits used to
enhance and maintain the park structure within City limits.
Emergency Medical Services Fund — Established to account for the Emergency Medical Services
and Transportation program that provides services to all segments of the community.
Business Improvement Fund — Established to account for activities held in Downtown San Rafael,
such as the Fanners Market.
Sewer Maintenance Fund — Established under the terms of the JPA to provide all necessary
maintenance to the Sanitation District's gravity collection sewer system.
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 mature 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.
Redevelopment Agency Fund — Established to account for the principal payments, interest
payments, and related costs of the 1999 Project Tax Allocation Bonds and 2002 Tax Allocation
Refunding Bonds.
CAPITAL PROJECTS FUNDS
Capital Improvement Fund — Established for the costs associated with major capital improvement
projects not tied to specific funds elsewhere. Improvements could include medians, parkways,
sidewalks, and other public assets.
Bedroom Tax Fund — Established to collect funds frorn multiple -unit housing used to pay for
maintaining and developing parks within local neighborhoods.
Assessment Districts Fund — Established to account for ongoing construction and improvement
needs within the following assessment districts: Peacock Gap, Kerner Boulevard, Sun Valley/Lucas
Valley Open Space, East San Rafael Drainage Assessment District 1.
Park Capital Projects Fund — Established to account for capital improvements for all City owned
parks, whether paid for by City funds, grants, donations, or partnership with the community.
Open Space Fund — Established for the acquisition of open space.
Equipment Replacement Fund - Established to provide replacement of equipment.
Radio Replacement Fund - Established to meet radio system operating costs, capital acquisition
and replacement, and operating lease obligations for the Public Works, Fire, Community
Development and Police Departments. The Marin Emergency Radio Authority (MERA) is a
countywide JPA that has taken the roll in procurement and installation of a new digital radio system.
This fund supports San Rafael's portion of the MERA efforts and related contractual obligations.
Telephone Replacement Fund — Established to provide ongoing support services for telephone
equipment and usage throughout the City.
Iff
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ASSETS
Cash and investments
Restricted cash and investments
Receivables:
Accounts
Takes
Grants
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Developer bonds payable
Compensated absences - Matured
Due to other funds
Deferred revenue
Total Liabilities
Fund Balances:
Reserved for:
Encumbrances
Improvement projects
Debt service
Unreserved, undesignated
Total Fund Balances
Total Liabilities and
Fund Balances
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2007
SPECIAL REVENUE FUNDS
Baypoint
Lagoons Street
Recreation Assessment Maintenance
Revolving District Gas Tax Childcare and Cleaning
$272,822 1 $61,566 $2,148,839 $137,699 $1,563,202
181,955
127 255,288
6,000 34,962
$460,777 $61,693 $2,404,127 $172,661 $1,563,202
$51,178 $3,981 $287,969 $36,122 $33,056
242,998
294,176 3,981 287,969 36,122 33,056
13,950
152,651 57,712 2,116,158 136,539 1,530,146
166,601 57,712 2,116,158 136,539 1,530,146
$460,777 $61,693 $2,404,127 $172,661 $1,563,202
72
SPECIAL REVENUE FUNDS
Loch Lomond
Assessment
Public
Development
Parkland
District
Library
Safety
Stormwater
Services
Grants
Dedication
$773,561
$94,063
$168,593
$301,277
$666,808
$664,522
$917,464
2,538
51,579
20,000
69
3,993
115,896
523,270
51,295
$773,630
$212,497
$220,172
$305,270
$686,808
$1,187,792
$968,759
$15,925 $213 $36,868 $27,306 $190,557
1,500
15,925 213 36,868 28,806 190,557
50,424
$773,630 196,572 219,959 217,978
658,002 997,235 $968,759
773,630 196,572 219,959 268,402
658,002 997,235 968,759
- $773,630 $212,497 $220,172 $305,270
$686,808 $1,187,792 $968,759
(Continued)
73
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2007
SPECIAL REVENUE FUNDS
DEBT SERVICE FUNDS
Emergency
Peacock Gap
Mariposa�ij
Medical Business
Sewer
Assessment
Assessment
Services Improvement Maintenance
District
District
ASSETS
Cash and investments
$264,324 $4,440
$154,059
$2,875
$52,324
- Restricted cash and investments
Receivables:
Accounts
105
Taxes
13,489
Grants
Total Assets
$277,813 $4,440
$154,059
$2,875
$52,429
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
$11,106 $281
$111,985
Developer bonds payable
r
Compensated absences - Matured
12,326
Due to other funds
266,707
"
Deferred revenue
Total Liabilities
277,813 291
124,311
Fund Balances:
'..
Reserved for:
Encumbrances
Improvement projects
$2,875
$521429
Debt service
s
Unreserved, undesignated
4,159
29,748
`" r
Total Fund Balances
4,159
29,748
2,875
52,429
4
Total Liabilities and
$277,813 $4,440
$154,059
$2,875
$52,429 "
Fund Balances
E
k€t
F
I
74
I
I
DEBT SERVICE FUNDS
1997
Financing
Authority
Redevelopment Capital
Revenue Bonds
Agency Improvement
$390,257
$32,902 $1,864,482
324,250
1,214
CAPITAL PROJECT
Park
Bedroom Assessment Capital Open
Tax Districts Projects Space
$207,272 $223,741 $36,137 $140,195
1,296 5,625
$715,803 $34,116 $1,864,482 $207,272 $223,741 $41,762 $140,195
$273,576
273,576
1,017,381 $10,131
$715,803 $34,116
573,525 $207,272 213,610 $41,762 $140,195
715,803 34,116 1,590,906 207,272 223,741 41,762 140,195
$715,803 $34,116 $1,964,492 $207,272 $223,741 $41,762 $140,195
(Continued)
75
ASSETS
Cash and investments
Restricted cash and investments
Receivables:
Accounts
Taxes
Grants
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Developer bonds payable
Compensated absences - Matured
Due to other funds
Deferred revenue
Total Liabilities
Fund Balances:
Reserved for:
Encumbrances
Improvement projects
Debt service
Unreserved, undesignated
Total Fund Balances
Total Liabilities and
Fund Balances
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2007
CAPITAL PROJECT FUNDS
Total
Non -Major
Equipment Radio Telephone Governmental
Replacement Replacement Replacement Funds
$2,234,799 $1,005,497 $19,089 $14,402,909
318,000 643,464
256,072
274,367
737,048
$2,234,799 $1,005,497 $337,089 $16,313,760
874 17,889 $1,098,896
1,500
12,326
266,707
242,998
874 17,889 1,622,417
64,374
1,027,512
805,223
2,233,925 $1,005,497 $319,200 12,794,234
2,233,925 1,005,497 319,200 14,691,343
$2,234,799 $1,005,497 $337,089 $16,313,760
76
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007
REVENUES
Taxes and special assessments
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
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Capital lease for equipment acquisition
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balance, Beginning
Fund Balance, Ending
SPECIAL REVENUE FUNDS
Baypoint
Lagoons Street
k
Recreation Assessment Maintenance f
Revolving District Gas Tax Childcare and Cleaning G
$25,368
$9,423
1,950 $74,559
$3,866
i
$58,354 - @
8,000
1,424,261
379,409
510,455 k
1,827,441
676,717
2,572,306
59,784
13,606
1,763
1,904,649
27,318 2,175,537
2,969,187
570,572
4,367 130,531 1,740,474
3,380,607 3,170,956 ?
2,380 1,435,704 16,474 ....
54,242 14,278
3,437,229 4,367 1,580,513 3,170,956 1,756,948
(1,532,581) 22,951 595,024 (201,769) (1,186,376)
1,441,500
337,800
1,764,030
(379,460)
1,441,500
(378,460)
337,800
1,764,030
(91,081)
22,951 216,564
136,031
577,654
257,682
34,761 1,899,594
508
952,492
$166,601
$57,712 $2,116,158
$136,539
$1,530,146
78
SPECIAL
Loch Lomond
Assessment Public Development Parkland
District Library Safety Stonrwater Services Grants Dedication
$13,716
$1,250
28,904
$50,645
$7,478
10,739
$26,426
$35,922 $34,517
305,124
8,341
224,815
6,370
798,575
23,638
1,295,523
7,871
15,564
1,150
766,583
10,000
42,620
379,674
239,813
810,564
816,647
1,341,445 42,388
5,386
163,245
100,000
53
1,175,560
37,332
176,248
286,928
104,254
1,239,087
1,490,890
162,003
35,603
500
252,854
219,896
53 338,251 303,102 2,415,147 290,186 2,103,100
42,567 41,423 (63,289) (1,604,583) 526,461 (761,655) 42,388
72,000
963,980
469,980
72,000
863,990
469,980
42,567 41,423 8,711
(740,603) 526,461
(291,675)
42,388
731,063 155,149 211,248
1,009,005 131,541
1,288,910
926,371
$773,630 $196,572 $219,959
$268,402 $659,002
$997,235
$968,759
(Continued)
79
CITY OF SAN RAFAEL
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES INFUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007
REVENUES
Taxes and special assessments
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
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Capital lease for equipment acquisition
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balance, Beginning
Fund Balance, Ending
SPECIAL REVENUE FUNDS DEBT SERVICE FUNDS
Emergency Peacock Gap Mariposa
Medical Business Sewer Assessment Assessment
Services Improvement Maintenance District District
$2,671,595
$331 $4,599
13,000
1,474,240 1,448,577
480 17,362
4,146,315 30,693 1,453,176
30,468
4,309,279
18
1,345,451
4,309,297 30,468 1,345,451
(162,982) 225 107,725
$22,163
1,695
23,858
15,000
4,597
19,597
4,261
448,500
(391,870)
(120,050)
(150)
i
56,630
(120,050)
(150)
1
(106,352)
225 (12,325)
4,111 .
106,352
3,934 42,073
$2,875 48,318
$4,159 $29,748
$2,875 $52,429
80
DEBT SERVICE FUNDS
CAPITAL PROJECT FUNDS
1997
Financing
Park
Autbority
Redevelopment
Capital
Bedroom Assessment Capital
Open
Revenue Bonds
Agency
Improvement
Tax Districts Projects
Space
$266,083
$3,566,244
$11,220
29,365
1,582
$74,698
7,687 $923
$5,287
70,363
3,983
295,448
3,567,826
145,061
18,907 4,806
5,287
2,827
502,163
(19,250)
2,932
205,000 1,930,000
77,174 1,736,244
282,174 3,566,244 505,095 (19,250) 2,827
13,274 1,582 (360,034) 18,907 24,056 2,460
(1,750)
300,240
(300,240)
60,000
(1,750)
60,000
11,524
704,279
1,592
32,534
(300,034) 19,907
1,890,940 188,365 $223,741
24,056 2,460
17,706 137,735
$715,803
$34,116
$1,590,906 $207,272 $223,741
$41,762 $140,195
(Continued)
81
CITY OF SAN RAFAEL
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007
REVENUES
Taxes and special assessments
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
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Capital lease for equipment acquisition
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balance, Beginning
Fund Balance, Ending
CAPITAL PROJECT FUNDS
Total
Non -Major
Equipment
Radio
Telephone
Governmental
Replacement
Replacement
Replacement
Funds
$6,576,389
1,250
79,075
$35,047
$189
583,161
4,160,587
1,219,724
261,860
214,580
10,540,240
49,820
2,085
1,012,543
1,348,619
296,907
216,854
22,874,170
272,952 600,930 317,962 1,230,525
12,624 4,585,148
417,242 4,851,010
7,014,739
4,771,720
742,308
133,514
2,183,514
11,076
1,829,091
834,784
613,554
317,962
27,208,055
513,835
(316,647)
(101,108)
(4,333,985)
318,000
318,000
100,000
5,858,030
(1,192,520)
418,000
4,983,510
513,835
(316,647)
316,892
649,625
1,720,090
1,322,144
2,308
14,041,718
$2,233,925
$1,005,497
$319,200
$14,691,343
82
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
BUDGETED NONMAIOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED ME 30, 2007
REVENUES
Taxes and special assessments
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
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Capital lease for equipment acquisition
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
SPECIAL REVENUE FUNDS
Recreation Revolving Baypoint Lagoons Assessment District
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$25,000 $25,368 $368
$1,540
$9,423
$7,883 420 1,950 1,530
17,500
8,000
(9,500)
1,566,830
1,827,441
260,611
4,560
59,784
55,224
1,590,430
1,904,648
314,218 25,420 27,318 1,898
4,367 (4,367) i
3,032,053
3,380,607
(348,554)
2,400
2,380
20
19,450
54,242
(34,792)
3,053,903
3,437,229
(383,326) 4,367 (4,367)
(1,463,473)
(1,532,581)
(69,108) 25,420 22,951 (2,469)
iF
1,441,500
1,441,500
1,441,500 1,441,500
($21,973) (91,081) ($69,108) $25,420 22,951 ($2,469)
257,682 34,761
$166,601 $57,712
84
W
Gas Tax
Childcare
Street Maintenance and
Cleaning
Variance
Variance
Variance
Final
Positive
Final
Positive
Final
Positive
Budget
Actual
(Negative)
Budget
Actual
(Negative)
Budget
Actual
(Negative)
$30,850
$74,559
$43,709
$3,866
$3,866
$11,300
$59,354
$47,054
1,496,700
1,424,261
(72,439)
$356,400
379,409
23,009
439,424
510,455
71,031
500,000
676,717
176,717
2,514,680
2,572,306
57,626
13,606
13,606
2,420
1,763
(657)
2,027,550
2,175,537
147,987
2,871,080
2,969,187
98,107
453,144
570,572
117,428
154,058 130,531 23,527 1,755,032 1,740,474 14,558
3,197,066 3,170,956 26,110
1,757,300 1,435,704 321,596 11,160 11,160 118,710 16,474 102,236
2,000 14,278 (12,278)
1,913,358
1,580,513
332,845
3,208,226
3,170,956
37,270
1,873,742
1,756,949
116,794
114,192
595,024
480,832
(337,146)
(201,769)
135,377
(1,420,598)
(1,186,376)
234,222
431,810
337,800
(94,010)
1,764,030
1,764,030
(308,460)
(378,460)
(70,000)
(94,010)
94,010
(308,460)
(378,460)
(70,000)
337,800
337,800
1,764,030
1,764,030
($194,268)
216,564
$410,832
$654
136,031
$135,377
$343,432
577,654
$234,222
1,999,594
508
952,492
$2,116,158
$136,539
$1,530,146
(Continued)
85
CITY OF SAN RAFAEL
BUDGETED NONMASOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2007
REVENUES
Taxes and special assessments
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
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service
Principle
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Capital lease for equipment acquisition
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
SPECIAL REVENUE FUNDS
Loch Lomond Assessment District Library
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$13,300 $13,716 $416
11,000 28,904 17,904 $40,190
$50,645
$10,455
222,240
305,124
82,894
5,000
8,341
3,341
70,000
15,564
(54,436)
24,300 42,620 18,320 337,430
379,674
42,244
53
53
(53)
(53)
173,368
201,000
374,368
176,249
162,003
338,251
(2,880)
i
38,997 --
36,117
24,300 42,567
18,267
(36,938)
41,423
78,361 -'
j
t
i
F
$24,300 42,567
$18,267
($36,938)
41,423
f
i
$78,361
731,063
155,149
$773,630
$196,572
i
86
SPECIAL REVENUE FUNDS
Public Safety Stormwater Development Services
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$12,340
($12,340)
$2,120
$1,250
($870)
900
$7,478
6,578
10,280
10,739
459
$16,290
$26,426
$10,146
147,290
224,815
77,525
28,400
6,370
(22,030)
825,000
798,575
(26,425)
23,638
23,638
2,500
1,150
(1,350)
124,288
766,583
642,295
191,430
239,813
48,383
837,400
810,564
(26,836)
140,568
816,647
676,079
222,171
163,245
58,926
1,312,817
1,175,560
137,257
37,332
(37,332)
104,254
(104,254)
550,000
1,239,087
(689,087)
15,500
35,603
(20,103)
500
(500)
124,288
252,854
(128,566)
237,671 303,102 (65,431) 1,962,817 2,415,147 (552,330) 124,288 290,186 (165,898)
(46,241) (63,289) (17,048) (1,025,417) (1,604,583) (579,166) 16,280 526,461 510,181
72,000 72,000
72,000 72,000
863,980 863,990
863,980 863,980
$25,759 8,711 ($17,048) ($161,437)
211,248
$219,959
(740,603) ($579,166) $16,280
1,009,005
$268,402
526,461 $510,181
131,541
$658,002
(Continued)
87
CITY OF SAN RAFAEL
BUDGETED NONMAIOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED TUNE 30, 2007
REVENUES
Taxes and special assessments
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
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principle
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Capital lease for equipment acquisition
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
SPECIAL REVENUE FUNDS .....
Grants Parkland Dedication
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$1,440 $35,922
$34,492
759,707 1,295,523
535,816
10,000
10,000
761,147 1,341,445
580,298
11,645
5,386
6,259
100,000
100,000
254,373
286,928
(32,555)
497,535
1,490,890
(993,355)
559,879
219,896
339,983
1,423,432 2,103,100 (679,668)
(662,285) (761,655) (99,370)
417,210 469,980 52,770
417,210 469,980 52,770
i
I
$34,517 $34,517
7,871 7,871 }
42,388 42,388
42,398 42,388
I;
($245,075) (291,675) ($46,600) 42,388 $42,388
1,288,910 926,371
$997,235 $968,759
88
SPECIAL REVENUE FUNDS
Emergency Medical Services Business Improvement Sewer Maintenance
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$2,713,000
$2,671,595
($41,405)
2,000
(2,000)
$520
$331
($189)
$5,140
$4,599
($541)
15,500
13,000
(2,500)
1,405,950
1,474,240
68,290
1,540,710
1,449,577
(92,133)
480
480
21,140
17,362
4,120,950
4,146,315
25,365
37,160
30,693
(2,689)
1,545,850
1,453,176
(92,674)
37,160
30,468
6,692
4,242,433
4,309,279
(66,846)
1,393,717
1,345,451
48,266
28,400
18
28,382
4,270,833
4,309,297
(39,464)
37,160 30,468
6,692
1,393,717
1,345,451
48,266
(149,883)
(162,982)
(13,099)
225
225
152,133
107,725
(44,408)
448,500
(391,870)
448,500
(391,870)
56,630
56,630
($93,253) (106,352) ($13,099)
106,352
(120,050) (120,050)
()20,050) (120,050)
225 $225 $32,083 (12,325) ($44,408)
3,934 42,073
$4,159 $29,748
(Continued)
89
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL _..
FOR THE YEAR ENDED JUNE 30, 2007
REVENUES
Taxes and special assessments
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
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principle
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Capital lease for equipment acquisition
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
DEBT SERVICE FUNDS
Peacock Gap Assessment District Mariposa Assessment District
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$18,490 $22,163 $3,673
1,020 1,695 675
f
t
19,510 23,958 4,348
t
15,000 15,000
4,510 4,597 (87)
19,510 19,597 (97)
4,261 4,261
i
i
4
(150) (150)
(150) (150) €
($150) 4,111 $4,261
$2,875 48,318
$2,875 $52,429
DEBT SERVICE FUNDS
CAPITAL PROJECT FUND
1997 Financing
Authority Revenue Bonds
Redevelopment Agency
Capital Improvement
Variance
Variance
Variance
Final
Positive Final
Positive
Final Positive
Budget
Actual (Negative) Budget
Actual (Negative)
Budget Actual (Negative)
$309,020
$266,083 ($42,937) $3,566,250
$3,566,244 ($6)
2,980
29,365 26,385
1,582 1,582
$74,698 $74,698
312,000 295,448 (16,552) 3,566,250 3,567,826 1,576
70,363 70,363
145,061 145,061
$60,000
502,163
(442,163)
78,930
2,932
75,998
214,000
205,000
9,000
1,930,000
1,830,000
98,000
77,174
20,826
1,736,250
1,736,244
6
312,000
282,174
29,826
3,566,250
3,566,244
6
138,930
505,095
(366,165)
13,274
13,274
1,582
1,592
(138,930)
(360,034)
(221,104)
300,240
300,240
60,000
60,000
(1,750)
(1,750)
(300,240)
(300,240)
(1,750)
(1,750)
60,000
60,000
($1,750)
11,524
$13,274
1,592
$1,582
($78,930)
(300,034)
($221,104)
704,279
32,534
t,890,940
$715,803
$34,116
$1,590,906
(Continued)
91
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL _
FOR THE YEAR ENDED JUNE 30, 2007
REVENUES
Taxes and special assessments
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
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principle
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Capital lease for equipment acquisition
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
CAPITAL PROJECT FUNDS .....
Bedroom Tax Assessment Districts
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$11,220
$11,220
7,687
7,687
18,907
18,907
18,907 18,907
18,907 $19,907
188,365
$207,272
$223,741
$223,741
053
CAPITAL PROJECT FUNDS
Park Capital Projects Open Space Equipment Replacement
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$823 $823 $5,140 $5,297 $147 $19,540
$79,075
$59,535
1,219,724
1,219,724
$4,000 3,983 (17)
49,920
49,820
4,000 4,806 806 5,140 5,297 147 1,239,264
1,348,619
109,355
-. 12,170 2,827 9,343 308,423
272,952
35,471
42,290
42,290
1,522,300
417,242
1,105,058
(19,250) 19,250
14,000 14,000
133,510 133,514 (4)
13,040 11,076 1,964
14,000 (19,250) 33,250 12,170 2,827 9,343 2,019,563 834,784 1,184,779
(10,000) 24,056 34,056 (7,030) 2,460 9,490 (780,299) 513,835 1,294,134
($101000) 24,056 $34,056 ($7,030) 2,460 $9,490 ($780,299)
17,706 - 137,735
$41,762 $140,195
513,835 $1,294,134
1,720,090
$2,233,925
(Continued)
93
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2007
CAPITAL PROJECT FUNDS
Radio Replacement
Telephone Replacement
Variance
Variance !,
Final
Positive
Final
Positive
Budget
Actual
(Negative)
Budget
Actual
(Negative)
REVENUES
Taxes and special assessments
kf
Fines and forfeitures
f
Use of money and property
$30,850
$35,047
$4,197
$189
$189 f
Intergovernmental
Charges for services
261,860
261,860
$214,590
214,580
-
Other revenue
2,085
Total Revenues
292,710
296,907
4,197
214,580
216,854
189
EXPENDITURES
Curren[:
General government
731,300
600,930
130,370
532,580
317,962
214,618
Public safety
13,250
12,624
626
- -
Public works and parks
Culture and recreation..
Capital outlay
Capital improvement/special projects
Debt service:
Principle
Interest and fiscal charges
Total Expenditures
744,550
613,554
130,996
532,580
317,962
214,619
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(451,840)
(316,647)
135,193
(318,000)
(101,108)
216,892
OTHER FINANCING SOURCES (USES)
Capital lease for equipment acquisition
318,000
318,000 E
Transfers in
100,000
100,000
Transfers out
€
Total Other Financing Sources (Uses)
418,000
4I8,000
EXCESS (DEFICIENCY) OF REVENUES
4
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
($451,840)
(316,647)
$135,193
($318,000)
316,892
$634,892
FUND BALANCES, BEGINNING OF YEAR
1,322,144
2,308
FUND BALANCES, END OF YEAR
$1,005,497
$319,200
94
INTERNAL SERVICE FUNDS
Internal service funds account for department services and financing performed for other departments
within the same governmental jurisdiction. Funding comes from charges assessed to the departments
benefiting from the service.
Building Improvement Fund - Established to account for construction projects and cyclical large dollar
maintenance tasks (roof, painting) completed on City owned buildings.
Employee Benefits Fund - This fund is utilized for the payment of retiree benefits, unemployment
insurance, accumulated leave requirements and other negotiated benefits not tied to a specific
department.
Liability Insurance Fund - Established to maintain sufficient reserves for outstanding claims. All costs
associated with liability premiums are paid from this fund.
Workers' Compensation Fund - Established to maintain sufficient reserves for injury claims. All costs
associated with workers compensation, including safety training, wellness programs, claim expenses and
insurance premiums are paid from this fund.
Dental Insurance Fund - Set up to maintain sufficient reserves for dental claims. All costs associated
with dental claims and administrations are paid from this fund.
95
ASSETS
Current Assets:
Cash and investments
Accounts receivable
Total Assets
LIABILITIES
Current Liabilities:
Accounts payable
Due to other funds
Claims payable
Total Current Liabilities
Noncurrent Liabilities:
Claims payable
Total Noncurrent Liabilities
Total Liabilities
NET ASSETS:
Unrestricted
Total Net Assets
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
TUNE 30, 2007
Building Employee Liability Workers' Dental
Maintenance Benefits Insurance Compensation Insurance Total
$281,424 $919,222 $3,666,624 $12,371 $4,879,641
$1,066,516 1,066,516
281,424 1,066,516 919,222 3,666,624 12,371 5,946,157
11,220
707
602,991
3,199
598,922
3,720
2,200,000
2,277
21,123
602,891
2,798,922
11,220
603,598
602,121
2,203,720
2,277
3,422,936
317,101
1,442,158
1,759,259
317,101
1,442,158
1,759,259
11,220
603,598
919,222
3,645,878
2,277
5,182,195
270,204
462,918
20,746
10,094
763,962
$270,204
$462,918
$20,746
$10,094
$763,962
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
TUNE 30, 2007
Building
Employee
Liability
Workers'
Dental
Maintenance
Benefits
Insurance
Compensation
Insurance
Total
- OPERATING REVENUES
Charges for current services
$71,530
$1,216,238
$1,381,600
$1,897 531
$422,003
$4,988,902
Other operating revenues
1,444,298
110,309
60,986
6,727
1,622,320
Total Operating Revenues
71,530
2,660,536
1,491,909
1,958,517
428,730
6,611,222
OPERATING EXPENSES
Insurance premiums and claims
2,004,298
3,093,351
426,702
5,524,351
Maintenance and repairs
540,412
540,412
General and administrative
12,554
2,563,742
2,576,296
Total Operating Expenses
552,966
2,563,742
2,004,298
3,093,351
426,702
8,641,059
Operating Income (Loss)
(481,436)
96,794
(512,389)
(1,134,834)
2,029
(2,029,837)
NONOPERATING REVENUES (EXPENSES)
Investment income
11,687
31,311
146,218
815
190,031
Total Nonoperating
Revenues (Expenses)
11,687
31,311
146,218
815
190,031
Net income (loss) before transfers
(469,749)
96,794
(481,078)
(988,616)
2,843
(1,939,806)
Transfers in
190,000
196,456
386,456
Transfers out
(29,500)
(29,500)
Change in Net Assets
(308,249)
96,794
(284,622)
(988,616)
2,843
(1,491,850)
NET ASSETS, BEGINNING OF YEAR
578,453
366,124
284,622
1,009,362
7,251
2,245,812
NET ASSETS, END OF YEAR
$270,204
$462,918
$20,746
$10,094
$763,962
97
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2007
Building
Employee
Liability
Workers'
Dental
Maintenance
Benefits
Insurance
Compensation
Insurance
Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds
$71,530
$1,073,211
$1,391,600
$1,897,531
$422,003
$4,845,875
Cash payments to suppliers for goods and services
(569,395)
(2,700,976)
(1,595,989)
(2,352,484)
(424,425)
(7,643,269)
Other operating revenues
1,444,298
110,309
60,986
6,727
1,622,320
Cash Flows from Operating Activities
(497,865)
(183,467)
(104,080)
(393,967)
4,305
(1,375,074)
CASH FLOWS FROM NONCAPITAL
_
FINANCING ACTIVITIES
Interfund receipts
I61,500
183,467
196,456
541,423
Cash Flows from Noncapital
Financing Activities
161,500
183,467
196,456
541,423
CASH FLOWS FROM INVESTING ACTIVITIES
Investment received
11,687
31,311
146,218
815
190,031
Cash Flows from Investing Activities
11,687
31,311
146,218
815
190,031
Net Increase (Decrease) in cash and cash equivalents
(324,678)
123 687
(247,749)
5,120
(443,620) -
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
606,102
795,535
3,914,373
7,251
5,323 261
CASH AND CASH EQUIVALENTS, END OF YEAR
$281,424
$919,222
$3,666,624
$12,371
$4,879,641 -
Reconciliation of operating income (loss) to net cash
'..
provided by operating activities:
Operating income (loss)
(481,436)
96,794
(512,389)
(1,134,834)
2,028 (2,029,837)
Net change in assets and liabilities:
Accounts receivable
(143,027)
(143,027)
Accounts payable
(16,429)
(137,234)
(62,651)
(162)
2,277 (214,199)
Claims payable
470,960
741,029
1,211,989
Net Cash Provided by (Used in) Operating Activities
($497,865)
($183,467)
($104,080)
($393,967)
$4,305 ($1,175,074)
98 _I