HomeMy WebLinkAboutFY2008-09 CAFRFor the Fiscal Year Ended
June 307 2009
City of San Rafael, California
P.O. Box 151560
1400 Fifth Avenue
San Rafael, California 94915-1560
Prepared by the Finance Department
Cindy Mosser, Finance Director/City Treasurer
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airt
CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDING DUNE 307 2009
The newly renovated mall at Northgate
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San Rafael's weekly Downtown Farmers Market
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CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2009
Table of Contents
INTRODUCTORY SECTION
TABLE OF CONTENTS
Letterof Transmittal............................................................................................................................................ i
MissionStatement
v
..............................................................................................................................................
CityCouncil....................................................................................................................................................... vi
LocationMap....................................................................................................................................................vii
Organization Chart
FINANCIAL SECTION
Independent Auditor's Report on Basic Financial Statements..................................................................1
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....................................................................................... 25
Proprietary Funds:
Statementof Net Assets.................................................................................................................. 28
Statement of Revenues, Expenses, and Changes in Fund Net Assets ........................................... 29
Statementof Cash Flows................................................................................................................. 30
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2009
Table of Contents
FINANCIAL SECTION (Continued)
Notes to Basic Financial Statements........................................................................................................ 31
Required Supplementary Information:
Schedules of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual -
Budgetary Basis
GeneralFund................................................................................................................................... 68
Traffic and Housing Mitigation Special Revenue Fund................................................................. 69
Gas Tax Special Revenue Fund...................................................................................................... 70
Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual -
Budgetary Basis
Redevelopment Agency Capital Projects Fund.............................................................................. 71
Non
CombiningBalance Sheet................................................................................................................... 78
Combining Statement of Revenues, Expenditures, and Changes
inFund Balance........................................................................................................................... 84
Budgeted Non -major Government Funds:
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balance — Budget and Actual......................................................................... mass.. 90
Internal Service Funds:
Combining Statement of Net Assets.................................................................................................102
Combining Statement of Revenues, Expenses and Changes in Net Assets....................................103
Combining Statement of Cash Flows...............................................................................................104
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2009
Table of Contents
STATISTICAL SECTION
Financial Trends:
Net Assets by Component —Last Seven Fiscal Years......................................................................109
Changes
in
Net
Assets
—Last
Seven
Fiscal
Years
............................................................................110
Changes in Fund Balance of Governmental Funds —Last Ten Fiscal Years....................................116
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property —Last Eight Fiscal Years ...................118
Property Tax Rates -All Direct and Overlapping Governments— Last Ten Fiscal Years ................119
Debt Capacity:
Ratio of Outstanding Debt by Type —Last Ten Fiscal Years...........................................................122
Computation of Direct and Overlapping Debt..................................................................................123
Computation of Legal Bonded Debt Margin— Last Eight Fiscal Years............................................124
Revenue Bond Coverage Parking Facility —Last Ten Fiscal Years.................................................125
Redevelopment Pledged Revenue Coverage....................................................................................126
Demographic and Economic Information:
Demographic Statistics —Last Ten Fiscal Years..............................................................................127
Principal Employers —Fiscal Year 2008-2009.................................................................................128
Operating Information:
Full -Time Equivalent City Government Employees by Function
—Last Ten Fiscal Years.................................................................................................................129
Operating Indicators by Function/Program —Last Ten Fiscal Years...............................................13 0
Capital Asset Statistics by Function/Program —Last Ten Fiscal Years...........................................132
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C1 TY OF
r
February 23, 2010
Honorable Mayor, Members of the City Council and Residents of San Rafael:
Mayor
Albert J. Boro
Council Members
Greg Brockbank
Damon Connolly
Barbara Heller
Marc Levine
The Comprehensive Arrzlual Financial Repoz•t (CAFR} of the City of San Rafael for the year ended June 30,
2009, is hereby submitted as mandated by both local ordinances and State of California statutes. These
ordinances and statutes require that the City of San Rafael annually issue a report on its financial position
and activity, and that an independent firm of certified public accountants audits this report.
Responsibility for both the data accuracy, and the completeness and fairness of the presentation, rests with
management. To the best of our knowledge and belief, the data presented is accurate in all material
respects and is reported in a manner that presents fairly the financial position and results of operations of
the various funds and component units of the City of San Rafael. The financial statements are prepared in
accordance with Generally Accepted Accounting Principles as promulgated by the Governmental
Accounting Standards Board (GASB) and include the report of the independent certified public accounting
firm, Maze and Associates Accountancy Corporation.
Further, the CAFR is prepared in accordance with procedures and policies set by the Government Finance
Officers Association. The analysis of the financial condition and the result of operations are in the
Management's Discussion and Analysis document in the financial section. The CAFR is organized into
three sections:
1. Introductory section, which is unaudited, includes this letter of trarasrnittal, an organizational chart and a
list of the City of San Rafael's elected and appointed officials.
2. Financial section includes the general-purpose financial statements, related footnote disclosures, and
the combining and individual fiend and account group financial statements and schedules, as well as the
independent auditors' report.
3. Statistical section, which is unaudited, includes selected fzznancial and demographic information,
presented on a multi -year basis. Generally, ten-year data is presented for expenditures, revenues,
assessed valuation for local properties and construction activity.
REPORTING ENTITY —PROFILE OF THE GOVERNMENT
The City of San Rafael provides a full range of municipal services required by statute or charter, namely:
Fire, Police, Cornrrzunity Development {encompassing Building, Planning and Code Enforcement}, Public
Works, Community Services (both Recreation and Child Care programs), Redevelopment, Library and
Management Services. The City Council is financially accountable for the San Rafael Redevelopment
Agency and the San Rafael Joint Powers Financing Authority. These entities are considered blended
component units and are combined with the City's figures in this report. The San Rafael Sanitation District
is a discretely presented component unit of the City of San Rafael and is presented independent of City
financial information. For a further explanation of these entities, refer to Footnote No. I in the Financial
Section of the CAFR.
CAFR TRANSMITTAL LETTER
The City participates in various organizations through formally organized and separate entities
established under the Joint Exercise of Powers Act of the State of California. As separate legal entities,
these agencies exercise full powers and authorities within the scope of the related Joint Powers
Agreement including the preparation of annual budgets, accountability for all funds, and the power to
make and execute contracts. Obligations and liabilities of the separate entities are not those of the City.
For a further explanation of these separate entities, refer to Footnote No. 12 in the CAFR.
The Mission San Rafael Archangel was founded in 1817. San Rafael was incorporated in 1874 and
became a charter city in 1913 by vote within the City. The City Council is composed of five members; four
are elected at large to four-year terms. The mayor is elected separately to a four-year term. I he City
currently has a land area of 22 square miles that includes 17 square miles of land and five of water and
tidelands. San Rafael's population in 2009 was 58,363.
The City of San Rafael is located 17 miles north of San Francisco in Marin County. Protected by its
Mediterranean like setting along the shores of the San Francisco Bay, the City enjoys a mild climate year
round. As the County seat, San Rafael is considered the commercial, financial and cultural and civic hub
of Marin County. Abundant recreational facilities are available in and around the San Rafael area. In
addition to the City's cultural, park and recreational resources, there are other attractions that include Muir
Woods, five State parks, the San Francisco area, Oakland and the nearby wine country.
Each year business merchants and the SRDA sponsor comrmunity events, including tl�e Classic Car Parade,
Farmers' Market, Winter Wonderland, Italian Street Painting Festival and the Parade of Lights. San Rafael
is home to Marin County's cultural activities. Marin Center presents numerous ballets, concerts and
speaking engagements. The Falkirk Cultural Center provides art exhibits and children's programming.
ECONOMIC COND�TIUN
San Rafael is a regional ermployrment center. The number of jobs within the City exceeds the number• of
employed residents. Our diversified economic mix includes high-tech, financial, service based,
entertainment and industrial businesses. Even with this diversity, the City finds itself struggling with a
multi -million dollar deficit, resulting from a down economy rooted in high unemployment, vacant
commercial properties, and a stagnant real estate market.
Financial performance and the short term outlook is not getting any brighter in the current (2009-2010)
fiscal year. Sales taxes have been down for four straight quarters. Property taxes remains relatively flat.
The fixture continues to look troubling as staff and the City Council peer into the future. The State of
California budget deficit was targeted at $21 billion as of December 2009.
The
current severe recession continues to have an extreme negative impact on the City's budget. In the
past two years, the City Council has taken actions to reduce the General Fund budget by over $5 million.
Actions implemented produced a multitude of cost savings and revenue enhancements primarily outlined in
a Recession Action Plan and Economic Vitality Plan. Work furloughs, and early retirement program,
hiring freeze, position eliminations including layoffs, and deferrals of contractual salary increases are some
of the actions taken to reduce the deficit.
ii
CAFR TRANSMITTAL. LETTER
The 2009-2011 budget cycle looks to be another financial challenge. With a continued flat economy (and
no real recovery expected until at least late 2011) and the State fiscal fiasco, the community and City
Council will be spending countless hours over the next few months reviewing options and looking at ways
of maintaining core services. Employee and community involvement will play a key role in determining
how the City's financial future is shaped.
Demographic Data
A sampling of demographic information is provided to give the user an understanding of the character and
diversity that make San Rafael an exceptional place to live and work.
C^1 Economic development organizations in San Rafael include the Redevelopment Agency, Business
Improvement District, Chamber of Commerce and the Marin County Economic Commission.
C^7 San Rafael's population rate grew at about 0.5% per annum from 2000 (56,063) to 2009 (58,363).
E Unemployment rates for 2009 were 9.6% (2008 was 59%) for the City and 8.1% countywide.
IE Countywide office vacancy rates rose dramatically to 24.5% for 2009, a dramatic increase from the
16.0% levels for 2008.
E Median office rents in Central San Rafael were $2.75 per square foot; in North San Rafael the rate
averaged $2.45.
IE Median industrial space rents averaged $0.95 per square foot for San Rafael.
IE Major shopping areas, as measured in available retail square footage, include the Downtown corridor
(938,000 aggregate), the Mall at Northgate (725,000), Montecito Center (130,000) and Northgate One
(113,900).
o Total Marin County land acreage of 388,352 breaks down as 55,424 in waterways, 128,519 for public
use, 23,241 subject to exemption, 97,615 contract restricted (open space and agriculture), and 83,913 as
developed. The latter category denotes only 22% of all acreage is used for development.
E Several hotels and motels support tourism activity, led by 235 roam facilities for both the Embassy
Suites and Four Points Sheraton. Citywide, the total number of hotel roams is 803.
ES Home buying and apartment rentals continue to be a challenge both in San Rafael and Marin County.
Mean household incomes in San Rafael are $78,680 as of 2008, but less than 30% can afford to buy a
median priced home. Rents for one bedroom apartments range from $80041,900, while two bedroom
apartments go for $1,075 to $2,000.
MAJOR INITIATIVES
Current Year Proiects. Accorxrplislunents and Service Efforts
The City Council adopted aone-year budget in July of 2009 for the 2009-2010 fiscal year.
These objectives support Department goals, the City Council's five-year goals, and our Mission Statement.
Progress reports are provided to the City Council and comrrrunity at six-rnantlr intervals during the year budget.
San Rafael's fiscal practices are codified in the City's Financial Management Policies. The Policies were
adopted to manage current and Iong-term financial resources, allow for adequate controls, and most
importantly, to encourage input and participation in the City's financial affairs.
iii
CAFR TRANSMITTAL LETTER
FINANCIAL INFORMATION
The City's Management Team is responsible for establishing and maintaining internal controls to ensure
that the City's assets are adequately protected from loss, theft or misuse. In addition, management controls
should ensure that proper accounting data is collected so as to prepare reports in conformance with
generally accepted accounting principles.
Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1)
the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of
financial records for preparing financial statements and maintaining accountability for assets. The concept
of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be
derived. All internal control evaluations occur within the above framework. We believe the City's internal
accounting controls adequately safeguard assets and provide reasonable assurance that financial
transactions are properly recorded.
Budget Controls -The City develops a budget based upon Council priorities and Department objectives.
The Finance Department maintains a traditional line item budget by major function. Budget control is
accomplished at the functional or division level within each fund. This budget creates a comprehensive
management and fiscal system aimed at achieving the objectives of each operating level consistent with
those that have been set for the community by the City Council. Each department director is responsible
for accomplishing goals within his or her functional area and monitoring the use of their budget allocations
consistent with policies set by the City Council and monitored by the City Manager,
OTHER INFORMATION
Independent Audit -the Charter of the City of San Rafael requires an annual audit of the City's financial
records and transactions by an independent certified public accounting firm. This year, the accounting firm
of Maze and Associates Accountancy Corporation performed the audit. The audit requirement has been
met and the auditors' opinion has been included in this report.
Acknowled ig Went -The preparation of this document was accomplished through the diligent, dedicated
efforts of the Finance Department's staff Appreciation goes to Van Bach, Accounting Supervisor, Helen
Yu, Accountant, and Carl Tregner, Accountant. All of these top-notch employees were instrumental in
coordinating the annual audit in a timely and professional manner. Also, Sylvia Gonzalez, the City
Manager's Administrative Assistant, helped assemble the City's Comprehensive Annual Financial Report.
Lastly, staff support by the Mayor and City Council Members, with an emphasis on community focus and
customer service, has allowed the Finance Department to bring professional level financial leadership and
management home to San Rafael. Staff expects to continue producing high quality products, including
award winning annual financial reports. The City Council's openness to change and support in planning
and conducting the operations of the City in a responsible, progressive manner empowers staff to achieve
important goals through a commitment to excellence, professionalism and community interest.
' Cindy Mosser
Finance Director
iv
Gfirt
MISSION STATEMENT
The Mission of the City of San Rafael is to enhance the quality of
life and to provide for a safe, healthy, prosperous and livable
environment in partnership with the community.
VISION STATEMENT
Our vision for San Rafael is to be a vibrant economic and
cultural center reflective of our diversity, with unique and
distinct neighborhoods in a beautiful natural environment,
sustained by active and informed residents and a responsible
innovative local government.
January 1996
Albert J. Boro, Mayor
Barbara Heller, Vice- Mayor
Greg Brockbank, Council Member
Damon Connolly, Council Member
Cyr N. Miller, Council Member
u
Girt
City Officials
City Council
Albert J. Borg, Mayor
Barbara Heller, VMayor
Greg Brockbank, Council Member
Damon Connolly, Council Member
Cyr N . Miller, Council Member
Elected Officials
Rob F. Epstein, City Attorney
Esther Beirne, City Clerk
Management Team
Ken Nordhoff, City Manager
Jim Schutz, Assistant City Manager /
Management Services Director
Nancy Mackle, Deputy City Manager /
Economic Development Director
Terri Hardesty, Assistant to the City Manager
Eric Davis, Deputy City Attorney
Lisa Goldfien, Deputy City Attorney
Bob Brown, Community Development Director
Carlene McCart, Community Services Director
Cindy Mosser, Finance Director
Christopher Gray, Fire Chief
Leslie Loomis, Human Resources Director
David Dodd, Library Director
Matthew Odetto, Police Chief
Parviz Mokhtari, Interim Pubic Works Director
vi
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San Rafael Corporate Center
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ACCOUNTANCY CORPORATION
3478 Buskirk Ave. -Suite 215
Pleasant Hill, California 94523
(925) 930-0902 • FAX (925) 930-0135
INDEPENDENT AUDITOR'S REPORT maze@mazeassociates.com
ON BASIC FINANCIAL STATEMENTS www.mazeassociates.com
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
maj or fund, and the aggregate remaining fund information of the City of San Rafael as of and for the year
ended June 30, 2009, 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
13% and 11% of the assets and revenues and 4% and 9% 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, 2009 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 our report dated October 30,
2009 on our consideration of the City of San Rafael's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
Financial reporting and compliance and the results of that testing, and not to provide an opinion on the
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in assessing the
results of our audit.
As described in Note 11, the City implemented the provision of GASB Statement No. 45, Accounting and
Financial Reporting by Employers for Postemployment Benefits Other Than Pensions.
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 Gas Tax 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
A 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 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.
# al e�
October 30, 2009
2
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2009
This analysis m 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, 2009. Please read it in conjunction with the basic financial statements
and the accompanying notes to those basic financial statements.
FINANCIAL HIGHTLIGHTS
Government -Wide Highlights:
Net Assets - The assets of the City exceeded its liabilities at fiscal year ending June 30, 2009 by $216.9
million. Of this amount, $1.2 million was reported as "unrestricted net assets' and may be used to meet
the government's ongoing obligations to citizens and creditors.
Expense Activities -During the fiscal year the Cit�s total revenues ($93.1 million), which is less than
expenses for governmental and businessAype activities ($96.6 million) by $3.5 million. Excluding
Depreciation (non -cash expense of $7.7 million), collected revenues were $4.2 million above expenses.
Changes in Net Assets -The City's total net assets decreased by $3.50 million in fiscal year 2009. Net assets
of governmental activities decreased by $4.08 million, while net assets of the business type activities
increased by $.58 million.
Fund Highlights:
Governmental Funds - Fund Balances- As of the close of fiscal year 2009, the City's governmental
funds reported combined ending fund balances of $31.5 million, a decrease of $3.1 million from the
prior year. Of this total amount, $18.9 million represents reserved fund balances and $1.7million is
designated.
General Fund -The fund balance of the general fund on June 30, 2009 was $3.9 million, a decrease of
$2.3 million from the prior year. $2.2 million was held in reserve, and $1.7 million is designated to
meet our 10% reserve requirement as defined by the City's Financial Management Policies.
Long -Term Debt:
The City's total outstanding debt decreased by $2.6 million (6.0 percent) during the fiscal year,
which reflects payment on redevelopment debt, court fine repayment note, and capitalized lease
obligations.
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.
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2009
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 Economic Development, 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 Cit�s Parking Services program is reported as abusiness-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.
n
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2009
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
ASB Statement 34 and replaces the concept of combini Gng 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 78 through 99 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 thirty-one governmental funds, of which four are considered major funds for presentation
purposes. Each major fund is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures, and changes in fund balances. The City's four
major funds are - the General Fund, Redevelopment Agency Capital Projects, Gas Tax, and Traffic and
Housing Mitigation. Data from the other twenty-seven governmental funds are combined into a single,
aggregated presentation. The basic governmental fund financial statements can be found on pages 22
through 25 of this report. Individual fund data for each of these non -major governmental funds is
provided in the form of combining statements on pages 78 through 99 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 28 through 30 of this report.
5
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2009
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 63 of this report.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information. It contains budgetary comparison statements for the major funds (general,
redevelopment agency capital project, gas tax, and traffic and housing mitigation). Required supplementary
information can be found on pages 68 through 71 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 $216.9 million, which is a decrease of $3.5 million from the prior year.
The following is the condensed Statement of Net Assets for the fiscal years ended June 30, 2008 and 2009.
City of San Rafael
Statements of Net Assets
June 30,
(Amounts in Millions)
Governmental Activities Increase
2009
Assets:
Current assets $ 40.0
Capital assets, net 214.4
Total assets 254A
Liabilities:
Current liabilities 9.1
Long-term liabilities 41.5
Total liabilities 50.6
Net Assets:
Invested in capital assets,
net of related debt
Restricted 25.7
Unrestricted (0.7)
Total net assets
�rE:l~i
2008 (Decrease)
$ 45.9 $ (5.9)
214.9 (0.5)
260.8 (6.4)
10.1 (1.0)
42.9
53.0 (2.4)
176.7 2.0
4.3 (5.0)
$ 207.8 $ (4.1)
Business -Type Activities Increase
2009 2008 (Decrease)
$ 2.3 $ 2.7 $ (0.4)
18.2 17.3 0.9
2095 20.0 0.5
0.3 0.3 -
TO 7.1 (0.1)
7.3 7.4 (0.1)
11.3 10.1 1.2
1.9 2.5 (0.6)
$ 13.2 $ 12.6 $ 0.6
C
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2009
At June 30, 2009, the largest portion of net assets (87.6 percent) consists of the City's investment in capital assets
net of related debt. This component portrays the total amount of funds required to acquire those assets less any
related debt used for such acquisition that is still outstanding. The City uses these capital assets to provide
services to citizens. The increase in total net assets from 2007-2008 to 200&2009 is largely attributable to a netting
of capital assets acquisition against depreciation expense for the year. Total depreciation for this current year
was $7.7 million, while capital asset acquisition totaled $8.5 million, leaving a net increase of $0.8 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 (11.9 percent) is subject to restrictions
imposed by external parties and their use is determined by those restrictions and agreements. The remainder of
net assets, $1.2 million, may be used to meet the City's ongoing operations.
For the year ended June 30, 2009, the City reported positive balances of net assets in capital and restricted net
assets for governmental activities. BusinessAype activities reported positive net assets in capital and unrestricted
net assets.
II
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2009
Statement of Activities
The following is the condensed Statement of Activities and Changes in Net Assets for the fiscal years ended June
30, 2009 and 2008:
Governmental Activities
2009
Revenues:
Program revenues $ 31.4
General revenues 57.1
Total revenues 88.5
Expenses 93.0
Change in net assets
before transfers (4.5)
Transfers 0.4
Net Assets:
Begun mg, as restated 207.8
Ending $ 2017
Governmental Activities:
11:
62.8
89.7
0.3
207.5
$ 207.8
(Amounts in Millions)
Increase
(Decrease)
$ 4.5
(5.7)
(1.2)
3.3
Business -Type Activities
2009 2008
0.1 0.1
4.6
3.6
1.0
12.6
4.3
3.3
1.0
Increase
(Decrease)
$ 0.3
0.3
0.3
(0.0)
'The City's governmental activities decreased net assets by $4.1 million, which represents a 2.0% increase from
last year. Key elements of this change were as follows:
Revenue highlights:
• Property Tax revenues decreased by $0.2 million or 1.0 percent in 2009. The decrease includes
$778,000 for the SB418 settlement amount for excess Educational Revenue Augmentation Fund
(ERAF).
• Sales tax decreased by $3.8 million or approximately 14.7 percent compared to fiscal year 2008.
• Motor vehicles revenues decreased by $59,000 or 23 percent.
Transient Occupancy Tax revenues decreased by $284,000 or 14 percent.
Property Transfer Tax revenues decreased by $604,000 or 47 percent.
CITY OFSANRAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2009
Governmental Activities - Revenues:
Governmental Activities
Revenues By Source
June 30, 2009
■Property Taxes
9-°/ ■Sales Taxes
23%
Governmental Activities -Expenses:
Governmental Activities
Expenses by Function
June 30, 2009
9%
C�
25
6%
❑Other Taxes
❑Charges for Services
■Miscellaneous
❑Grants and Contributions
■Investment Earnings
■General Government
■Public Safety
❑Public Works and Parks
❑Community Development
■Culture and Recreation
■Debt Service
Total expenses for governmental activities were $91.0 million (not including interest on long-term debt of $2.0
million). Program revenues offset total expenditures as follows:
• Those who directly benefited from programs contributed $20.6 million in charges for services.
• A total of $7.3 million in capital projects was funded by outside agencies through capital grants and
contributions.
As a result, total expenses that were funded by tax revenues; investment income and other general revenues
were $63.2 million.
Functional expenses for the years ended June 30, 2009 were as follows:
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2009
Expenses by Function
For the
fiscal year ended
June
30, 2009
Function
Amount
Percent of Total
General
Government
$ 8,075,344
Public
Safety
4237083538
Public
works and parks
231036,677
Community
development
5,7595171
Culture
and
recreation
115505,896
Interest on Debt
Total Expenses
Business -Type Activities:
1,907,229
$ 9239923855
12.4%
2.1
100.0%
Net assets for business -type activities were $13.2 million, a $0.6 million increase from the prior fiscal year.
Parking services is the City's only business type activity and income is derived from program revenues of $4.5
million. Program revenues include parking meter coin at $1.4 million, and parking garage hourly parking at $0.8
million. Revenues also include parking and non -vehicle code fines totaling $2.1 million. Total expenses for
parking services were $3.6 million during fiscal year 2008-2009.
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 use 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 $31.5 million. Approximately, $12.6 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 $1.7 million, while total
fund balance reached $3.9 mi]ion. $1.7 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 fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to
total fund expenditures. Unreserved fund balance represents 3 percent of total general fund expenditures
including transfers out, while total fund balance represents 7 percent of that same amount.
The
available fund balance in the City's General Fund decreased by $2.3 million compared to the 2008 fiscal year.
This decrease resulted from:
10
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2009
• Sales tax decreased by $3.8 million or approximately 14.7 percent compared to fiscal year 2008.
• Expenditures increased with personnel costs mainly benefit costs leading the way.
Redevelopment Agency Capital Project 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 2009, the reserved fund balance was $6.1
million, a decrease of $0.9 million from the prior year. Expenditures exceeded revenues by $0.94 million. The
decrease is primarily related to decreased expenditures for capital improvement projects. A total of $5.8 million
in fund balance as of June 30, 2009 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 goverrunent-wide financial
statements, but in more detail. As discussed in the business -type activities previously, the City's net assets
increased by $0.6 million as a result of operations in the Parking Services fund.
GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended budget totaled $57.0 million, including an increase of $155,762 in appropriations to the
originally adopted budget.
During the year, however, revenues exceeded budgetary estimates and expenditures did not exceed the final
budgetary estimate. Overall, expenditures exceeded revenues by $2.1 mon. The transfers out exceeded the
transfers in by $0.2 million.
11
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2009
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, 2009
amounts to $232.6 million, net of accumulated depreciation of $113.4 million. This investment in capital assets
includes land, buildings, improvements, machinery and equipment, infrastructure and construction in progress.
Infrastructure assets are items that are normally immovable and of value only to the City such as roads, bridges,
streets and sidewalks, drainage systems, lighting systems and similar items. The total additions to the City's
investment in capital assets for the current fiscal year was $8.5 million, offset by accumulated depreciation and
retirements of $8.0 million, thereby equaling a net increase of $0.5 million.
Major capital asset additions during the current fiscal included work in process Medway Canal Intersection
Improvements, Third/Union Intersection Improvement, and Francisco Blvd. East Improvement. The City also
purchased eleven vehicles, which included one Paint truck and one Street Sweeper.
Capital Projects
4� Street Rehabilitation -West End project was completed in 2009.
Additional information on the City's capital assets can be found in Note 5 on pages 45 through 47 of this report.
Debt Administration
As of June 30, 2009, 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 2009 and 2008 were as follows:
Revenue Bonds
Special Assessment Bonds
Fax Allocation Bonds
Court Fine Promissory note
Redevelopment note
Capitalized Leases
Compensated Absences
Total Outstanding Debt
Governmental Business -Type
Activities Activities Total
2009 2008 2009 2008 2009
Utz) $ 0.8 $ 7.0 $ 7.1 $
$
35.8 37.5 - - 35.8 37.5
0.6 0.8 - - 0.6 0.8
0.2 0.2 - - 0.2 0.2
0.2 0.4 - At 0.2 0.4
4.5 4.5 0.2 0.1 4.7 4.6
$ 41.8 $ 44.2 $ 7.2 $ 7.2 $ 49.0 $ 51A
Additional information on the City's long-term debt can be found in Note 6 on pages 48 through 52 of this
report.
12
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2009
ECONOMIC CLIMATE AND NEXT YEAR'S BUDGET
Many factors were considered in preparing the City's budget for fiscal year 2009-2010. In July, the budget was
balanced with strategic remedies such as:
o Deferring the replacement of all non -emergency fleet replacement, and moving the life cycle of each of
our vehicles out one year. This results in the General Fund saving of $754,000.
o Non -Safety Employee Furloughs of 5 percent of approximately $500,000 reduction in the General Fund.
o Implementing a Voluntary Retirement Separation Program for approximately $900,000 reduction in the
General Fund.
o Reduction of force through a Layoff program for an approximate savings of $550,000 in the General
Fund.
o Elimination of a series of vacant positions permanently from the budget, totaling $1.3 million for next
year.
o Reset our projected (and required) Liability and Workers Compensation reserves, providing a one time
General Fund relief of $500,000,
The magnitude and depth of the current recession could not be projected for the rest of the fiscal year. This
downturn in the economy impacts many City revenues. Our sales tax, the City's biggest tax revenue generator,
faces a decline of eighteen percent with no relief in sight. The credit crisis instigated a slow down in the sale of
property causing a reduction in the City's property transfer tax.
The City's second largest tax generator is property tax.
years, the assessed values of the properties rose slightly.
Although property sales are not as strong as in previous
The City's largest expenditure by far relates to personnel costs. Salaries and benefits are tied to the labor
agreements with each bargaining group. Except for known increases in contractual obligations, the fiscal year
200&2009 baseline operating cost levels were maintained for fiscal year 2009-2010. Unfortunately, the City's
revenues are not keeping up with the City's expenditures. Difficult decisions will be made in the coming
months in order to achieve and maintain a balanced budget.
REQUEST FOR INFORMATION
This financial report is designed to provide our residents, businesses, customers, and investors and
creditors with a general overview of the City's finances and to demonstrate the City's accountability for
providing high quality services within the limits of our fiscal resources. If you have questions about this
report or need additional financial information, contact the City of San Rafael - Finance Department, 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-term 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
sI
ngle 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 Internal Service Funds service these
Funds, their activities are consolidated with Governmental Activities, after eliminating inter -fund
transactions and balances. The City's Business Type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City's net 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.
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
STATEMENT OF NET ASSETS
ASSETS
Cash and investments available for operations (Note 2)
Restricted cash and investments (Note 2)
Receivables:
Accounts
Taxes
Grants
Interest
Loans (Note 4)
Internal balances (Note 3)
Prepaid expenses and other
Capital assets (Note 5):
Nondepreciable
Depreciable, net
Total Assets
LIABILITIES
Accounts payable
Deposits payable
Interest payable
Developer bonds payable
Arbitrage payable
Unearned revenue
Due to other agency
Claims payable (Note 13):
Due in one year
Due in more than one year
Compensated absences (Note 11):
Due in one year
Due in more than one year
Long-term debt (Note 6):
Due in one year
Due in more than one year
Net OPEB liability (Note 11)
Total Liabilities
NET ASSETS (Note 8)
Invested in capital assets, net of related debt
Restricted for:
Special revenue projects
Capital projects
Debt service
Redevelopment projects
Total Restricted Net Assets
Unrestricted
Total Net Assets
JUNE 309 2009
Component
Unit
Primary Government San Rafael
Governmental Business -Type Sanitation
Activities Activities Total District
$2950463503 $291875810 $3132349313 $1055959258
210863750 25086,750 476,291
25215,142 919770 2,3065912
3,3729875 3,372,875
2,080,365 2,080,365
143,879 1435879 1,790
993,224 993,224
(17,618) 173618
645334 64,334 53,562
8631063517 8,7435714 94,8505231 3,233,659
128,2691417 %474,923 137,7445340 25,37%291
2541361,388 20,515,835 274,877,223 39,739,851
1,949,025
113,606 2,062,631 597,049
1511812
151,812
3293379
813667 411,046 325642
376,548
376,548
25,127
259127
21%627
21%627
5,129
53129
2,400,000 2,400,000
1,316,971 1,316,971
840,577 14,276 854,853
3,739,220 150,691 3, 889,911
2,804,258
170,000
2,9743258
430,000
34,406,350
6,805,000
41,211,350
1,321,733
2,033,000
2,0335000
50,597,023
73335,240
57,932,263
2,3813424
1785744,119
11,243,637
18%987,756
26,878,536
14,433,572
3,361,760
2,936,860
4,989,039
25,721,231
14,433,572
3,361,760
2,936,860
4,98%039
445,439
25,721,231 445,439
(700,985) 1,936,958 1,235,973 10,034,452
$203,764,365 $13,180,595 $216,944,960 $37,358,427
See accompanying notes to financial statements
17
CITY OF SAN RAFAEL
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2009
Functions/Programs Expenses
Primary Government
Governmental Activities:
General government $8,075,344
Public safety 421708,538
Public works and parks 239036,676
Community development / redevelopment 5,7595171
Culture and recreation 111505,896
Interest on long-term debt 119073229
Total Governmental Activities
Business -type Activities
Parking services
Total Business -type Activities
Program Revenues
Operating Capital
Charges for Grants and Grants and
Services Contributions Contributions
$1,738,685
5,906,445
4,753,817
2,915,872
5,2535683
92,992,854 20,568,502
3,563,235 4,454,490
3,563,235
4,454,490
$90,105
1,031,801
15481,146
941,196
33544,248
$6,756,614
554,559
7,311,173
Total Primary Government $96,556,089 $25,022,992 $3,544,248 $7,311,173
Component Unit
San Rafael Sanitation District $9,143,977 $10,567,647
General revenues:
Taxes:
Property
Sales
Paramedic
Motor vehicles
Transient occupancy
Franchises
Business licenses
Other
Investment earnings
Miscellaneous
Aid from other governmental agencies
Transfers
Total general revenues and transfers
Change in Net Assets
Net Assets, beginning of year
Net Assets, end of year
See accompanying notes to financial statements
Net (Expenses) Revenues and Changes in Net Assets
Component
Primary Government Unit
San Rafael
Governmental Business -Type Sanitation
Activities Activities Total District
($6,246,554)
(35,7707292)
(10,045,099)
(2,2881740)
(553113017)
(17907,229)
61,568,931
($6,246,554)
(3537707292)
(10,045,099)
(2,2885740)
(5,3113017)
(I ,907,229)
(61,568,931)
$891,255 891,255
891,255
891,255
(61,568,931) 891,255 (60,677,676)
$1,423,670
2139785859
21,978,859
855,511
215970,262
211970,262
31210,317
3,2103317
197,989
197,989
116783912
1,678,912
2,9413149
2,941,149
21405,934
21405,934
1,561,835
1,561,835
717,968
49,084 767,052
2065752
4611224
461,224
3,540
3815144
361J90
(3613190)
57,485,639
(4,083,292)
(312,106) 57,173,533 15446,947
579,149
2073847, 657
(3,504,143) 238705617
220,449,103 34,487,810
$203,764,365 $13,180,595 $216,9443960 $37,358,427
19
This Page Left Intentionally Blank
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 2009. Individual
non -major funds may be found in the Supplemental section.
Established to 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 along -term developer deposits for major housing and street improvement
projects.
GAS TAX FUND
Established to receive and expend the City's allocation of the State gasoline taxes.
REDEVELOPMENT AGENCY CAPITAL PROJECTS FUND
Established to account for the capital projects activities of the San Rafael Redevelopment Agency.
21
ASSETS
Cash and investments available for operations (Note 2)
Restricted cash and investments (Note 2)
Receivables:
Accounts
Taxes
Grants
Interest
Loans (Note 4)
Due from other funds (Note 3A)
Prepaid expenses
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Deposits payable
Developer bonds payable
Arbitrage payable
Due to other funds (Note 3A)
Deferred revenue
Due to other agency
Compensated absences (Note IJ)
Total Liabilities
Fund Balances (Note 8):
Reserved for:
Encumbrances
Petty cash
Project development
Loans receivable
Prepaid expense
Debt service
Court fine audit
Assessment districts/open space
Improvement projects
Traffic and housing
Unreserved, designated:
Emergency and cash flow
Unreserved, undesignated
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Total Fund Balances
Total Liabilities and Fund Balances
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCESHEET
JUNE 3012009
Redevelopment
Traffic and
Agency
Other
Total
Housing
Capital
Governmental
Governmental
General
Mitigation
Gas Tax
Projects
Funds
Funds
$346,217
$103037,159
$2,228,993
$3,1947389
$91320,009
$257126,767
743896
102)634
4093220
270861750
411,511
16,333
11,028
729,091
131673963
3,2483540
80,377
171855
263103
31372,875
3567060
7203250
17004055
21080,365
1333703
101128
48
143,879
6231863
68,572
300,789
9937224
873581
87,581
48,042
11,105
59,147
$4,974,353 $10,105,731 $2,681,763 $5,857,073 $11,499,631 $35,118,551
$635,495 $289,471
$97,657
$884,700
$1,907,323
31,451 $120,361
151,812
350,048
25,000
1,500
3767548
251127
25,127
87,581
877581
720,250
219,627
9397877
53129
5,129
61,129
15,741
767870
1,0783123 120,361 289,471
868,034
17214,278
31570,267
35Q717 46,075
1,220 398,012
3,645
3,645
530,512
5303512
623,863 68,572
3003789 9933224
48,042
113105 593147
6273715 627,715
5943100
5941100
74,896
741896
37363,933 3,3633933
9,870,723
2,390,436 12,2611159
1,6707455 1,670)455
2,392,292 6,248,947 8,641,239
(1,066,119) 35,826 (1,030,293)
3,360,540 3,36Q540
3,896,230 9,985,370 2,392,292 4,9891039 1Q285,353
31,548,284
$4,974,353 $10,105,731 $2,681,763 $5,857,073 $11,499,631 $35,118,551
See accompanying notes to basic financial statements
22
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET ASSETS OF GOVERNMENTAL ACTIVITIES
JUNE 305 2009
Total fund balances reported on the governmental funds balance sheet
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.
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.
Interest payable on long-term debt does not require the use of current financial
resources and, therefore, are not reported in the Governmental Funds.
Revenues that are deferred because they are not available currently are taken
into revenue in the Statement of Activities.
Long-term liabilities, including bonds payable, are not due and payable in the current
period and, therefore, are not reported in the Governmental Funds.
Long-term compensated absences
Net OPEB liability
Net assets of governmental activities
See accompanying notes to financial statements
$31,5485284
214,375,934
1,195,811
(329,379)
720,250
(37,210,608)
(4,502,927)
(2,033,000)
$203,764,365
23
CITY OF SAN RAFAEL
GOVERNMENTALFUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 305 2009
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
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in (Note 3B)
Transfers out (Note 3B)
Total Other Financing Sources (Uses)
Net Change in Fund Balances
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
Traffic and
Housing
General Mitigation Gas Tax
Redevelopment
Agency
Capital
Projects
Other
Governmental
Funds
Total
Governmental
Funds
$42,951,759
$98Q997
$7,086,387
$51,019,143
L4677413
$57500
13472,913
6601338
660,338
156,747
$2337585
$365703
1277051
293,034
8475120
77018,197
6,487,634
5543559
3,4587280
173518,670
1,923,653
1457124
9883593
273153
13,299,742
1623841265
2383614
2L819
655823
16,791
416,273
7597320
5434163721
4001528
7,5782753
197063551
24,5597216
88,66L769
6,811,591
30,660
1,217,275
8,059,526
357056,051
671533921
41,209,972
712991137
671917 631162
1479756
5,348,674
121926,646
430047061
115681018
515721079
21463,777
7,769,584
1032337361
159,230
2213187 31649,700
569,099
4487828
5,0487044
5181251
3,43L818
328,116
213287672
6,606,857
222,019
2,492,339
237147358
176837240
17683,240
5675347117
289,104 7,14400
22643,649
2774427533
94,054,083
(2,117,396) 111,424 434,073 (937,098) (2,883,317) (5,392,314)
4,060,090
(4,265,229)
(205,139)
(2,322,535) 111,424
167,217 4,745,188 8,972,495
(35Q,000) (1,999,577) (6,614,806)
(182,783) 217457611 2,35709
25L290 (9373098) (137,706) (3,0347625)
6,2185765 9,873,946 2,141,002 539267137 10,423,059 343582,909
$318967230 $9,985,370 $2,392,292 1)4,989,039 $]0,285,353 $31,548,284
See accompanying notes to financial statements
24
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, 2009
NET CHANGE IN FUND BALANCES -TOTAL GOVERNMENTAL FUNDS
Amounts reported for Govermnental Activities in die Statement of Activities are
different because of the following:
Capital Assets Transactions
Governrnental 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
Loss on retirement of capital assets and capital assets transferred to Enterprise Fund are deducted from the fund balance
Current year depreciation is deducted from fund balance
Long -Term Debt Proceeds and Payments
Repayment of debt principal is an expenditure in the govenunental fwlds, but the repayment
reduces long-term liabilities in the Statement of Net Assets.
Bond interest accretion is deducted from fund balance
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 govenunental funds (net change):
Interest payable
Compensated absences
Deferred revenue
Net OPEB liability
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 govermnental activities.
Change in Net Assets of Governmental Activities
See accompanying notes to financial statements
($3,034,625)
7,259,333
(369,810)
(7,371,259)
2,714,358
(221,531)
(2,458)
(4,850)
(241,655)
(2,033,000)
(777,795)
($4,083,292)
25
This Page Left Intentionally Blank
MAJOR PROPRIETARY
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 City reported its only enterprise field as a major proprietary fund.
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 FUNDS
STATEMENT OF NET ASSETS
JUNE 30, 2009
ASSETS
Current Assets:
Cash and investments available for operations (Note 2)
Accounts receivable
Due from other funds (Note 3A)
Prepaids and deposit
Total Current Assets
Noncurrent Assets:
Capital assets (Note 5):
Nondepreciable
Depreciable, net
Total Noncurrent Assets
Total Assets
LIABILITIES
Current Liabilities:
Accounts payable
Interest payable
Due to other funds (Note 3A)
Claims payable, due in one year (Note 13)
Compensated absences, due in one year (Note IJ)
Long -tern debt, due in one year (Note 6)
Total Current Liabilities
Noncurrent Liabilities:
Claims payable (Note 13)
Compensated absences (Note 1 J)
Long -tern debt (Note 6)
Total Noncurrent Liabilities
Total Liabilities
NET ASSETS (Note 8)
Invested in capital assets, net of related debt
Unrestricted
Total Net Assets
Some amounts reported for ba�sirTess-type activities in the
Statement of Net Assets are different because certain internal
service fund assets and liabilities are included with business -type
activities.
Net assets business -type activities
See accompanying notes to financial statements
Business -type
Activities -
Enterprise
Funds
Governmental
Activities
Parking Internal
Services Service Funds
$2,187,810
91,770
$3,919,736
1,047,179
855,578
5,187
2,279,580 5,827,680
8,743,714
974747923
18,218,637
20,498,217 5,827,680
113,606 41,702
81,667
855,578
2,400,000
14,276
170,000
379,549 3,297,280
1,316,971
150,691
6,805,000
679557691 1,316,971
77335,240 4,614,251
11,413,637
1,749,340 1,213,429
13,162,977
17.618
$13,180,595
$1,213,429
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2009
OPERATING REVENUES
Charges for current services
Other operating revenues
Total Operating Revenues
OPERATING EXPENSES
Personnel
Insurance premiums and claims
Maintenance and repairs
Depreciation
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 313)
Transfers out (Note 3B)
Change in Net Assets
NET ASSETS, BEGINNING OF YEAR
NET ASSETS, END OF YEAR
Change in Net Assets
Some amounts reported for bz�si�aess-t��pe activities in the Statement
of Activities are different because the portion of the net income of certain
internal service tunds is reported with the business -type activities which
those funds serviced.
Change in Net Assets of Business -type Activities
See accompanying notes to financial statements
Business -type
Activities -
Enterprise
Funds
Parking
Services
Governmental
Activities
Internal
Service Funds
$2,276,450 $5,746,940
2,178,040 1,685,643
4,454,490 7,432,583
2,139,683
5,166,823
5343043
304,244
784,682 6455518
3,228,609 6,346,384
1,225,881 1,086,199
49,084
(330,379)
(281,295)
944586
128,258
128,258
1,214,457
168,501
(361,190) (2,165,000)
583,396 (7825042)
12,579,581 13995,471
13,162,977
583,396
4,24
$579,149
$1,213,429
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 305 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds
Cash payments to suppliers for goods and services
Cash payments to employees
Other operating revenues
Cash Flows from Operating Activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund payments
Cash Flows from Noncapital
Financing Activities
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Cash paid for capital acquisitions
Principal payments on certificates of participation
Interest expenses and fiscal charges
Cash Flows from Capital and
Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income
Cash Flows from Investing Activities
NET ASSETS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
FUND BALANCES, BEGINNING OF YEAR
provided by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation
Net change in assets and liabilities:
Accounts receivable
Prepaids and deposits
Accounts payable
Compensated absence obligations
Claims payable
Net Cash Provided by (Used in) Operating Activities
Business -type
Activities -
Enterprise
Funds
Goverrunental
Activities
Parking Internal
Services Service Funds
$2,276,450 $5,950,089
(7395516) (6,918,928)
(2,112,435)
2,128,975 L6855643
1,553,474 716,804
(361,190) (2,451,248)
(361,190) (2,451,248)
(1,252,552)
(165,000)
(331,616)
(1,749,168)
49,084 128,258
49,084
128,258
(507,800) (1,606,186)
2,695,610 51525,922
$2,187,810 $3,919,736
$1,225,881 $1,086,199
304,244
(49,065) 203, ] 49
2,270
45,166 (31,656)
27,248
(543,158)
$1,553,474 $716,804
CITY OF SA N RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE I - 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 SA N RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Description of Discretely Presented Component Unit
San Rafael Sanitation District —The all 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 athree-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 SA N RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 3u, 2uu9
NOTE 1 - 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 -teen developer deposits
for major housing and street improvement projects.
Gas Tax Fund -Established to receive and expend the City's allocation of the State gasoline
taxes.
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 fields 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, 2009
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. Basis of Accounting
The govermnent-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-term 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.
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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 any increase in the City's total budget. Several supplemental appropriations were
approved during the course of the year.
The City legally adopts budgets for all its governmental funds, except for the East Francisco
Boulevard Assessment District, 1915 Act Bonds and 1997 Reassessment Bonds debt service funds,
because the City is only required to make debt service payments in the event of bondholder default.
Encumbrance accounting, under which purchase orders, contracts and other commitments for
expenditures are recorded in order to reserve that portion of the applicable appropriation, is
employed as an extension of the budgetary process. Encumbrances outstanding at year end are
reported as 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 in General Fund and Major Special Revenue Funds incurred
expenditures in excess of their budget. Sufficient resources were available within each
department to finance these overages.
General Fund
Culture and Recreation $15,399
Capital Outlay 74,518
Capital Improvements/Special Projects 214,351
Traffic and Housing Mitigation Special Revenue Fund
Public Works and Parks 1,687
Capital Outlay 2215187
Gas Tax Special Revenue Fund
Capital Outlay
Capital Improvements/Special Projects
1,989,746
2,065,146
$4,582,034
35
CITY OF SA RAF EL
r Y �1►% 1 �1►Y If.�
For the Year Ended June 30, 2009
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 — 50 years
Machinery and equipment 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. Unused sick leave based upon the rate of two to three percent
(2%-3%) for each year of service, 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.
CITY OF SA N RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 1- 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:
Beginning Balance
Additions
Payments
Ending Balance
Current Portion
Governmental Business -Type
Activities Activities
$4,498,077
3,964,848
(39883,128)
$137,719
126,980
(999732)
Total
$4,635,796
430919828
(3,9829860)
$4,579,797 $164,967 $4,744,764
$840,577 $14,276 $854,853
K. Property Tax Levy, Collection and Maximum Rates
State of California Constitution Article XIII A provides that the combined maximum property tax
rate on any given property may not exceed 1% of its assessed value unless an additional amount for
general obligation debt has been approved by voters. Assessed value is calculated at 100% of
market value as defined by Article XIII A and may be adjusted by no more than 2% per year unless
the property is sold, transferred, or substantially improved. The State Legislature has determined the
method of distribution of receipts from a 1% tax levy among the counties, cities, school districts
and other districts. Marin County assesses properties, bills for and collects property taxes on the
schedule that follows:
Valuation lien dates
Levy dates
Due dates (delinquent as of)
Secured
January
July 1
50% on November 1 (December 10)
50% on February 1 (April 10)
1
Unsecured
January 1
July 1
July 1 (August 31)
The term "unsecured" refers to taxes on personal properly other than 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 properly tax distribution," known as the Teeter Plan, by
the City and the County of Marin. The Teeter Plan authorized the auditor -controller of the County
of Marin to allocate 100% of the secured property taxes billed, but not yet paid. The County of
Marin remits tax monies to the City in three installments, as follows:
55 %remitted on December 15
40%remitted on April 15
5% remitted on June 15
37
CITY OF SA N RAFAEL
TEST BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
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. New Fund
The City has created the Print Shop and Mail Internal Service Fund in fiscal year 2009. The fund
was set up to maintain sufficient reserves for printing and mail payment. All costs associated
with printing and mail expenses are paid from this fund.
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. hn 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.
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 2 - CASH AND INVESTMENTS (Continued)
B. Classification
as and investments as of June 30, 2009 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 $301978,365
Restricted cash and investments 2534209
Total Primary Government Cash and Investments 33,321,064
San Rafael Sanitation District:
Cash and investments available for operations 10,5955258
Restricted cash and investments 4765291
Total San Rafael Sanitation District Cash and
Investments 11,071, 549
Total Cash and Investments $44,392,613
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 Antlzorized by the California Government Code and the City's Investment Policy
The City's investment policy and the Califon�ia 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:
Minimum Maximum Maximum
Maximum Credit Percentage of Investment in
Authorized hlvestment Type Maturity Quality Portfolio One Issuer
U.S. Government Obligation 5 years No limit No limit
U.S. Agency Securities and 5 years AAA No limit No limit
Instruments
Repurchase Agreements I year A-1 No limit No limit
Primer Commercial Paper 270 days A-1 25% $15000,000
Bankers' Acceptances 180 days A-1 40% $2005000
Medium -Term Corporate Notes 5 years A 30% $150001000
Negotiable Certificates of Deposit 5 years AA 30% No limit
Non-negotiable Certificates 180 days N/A No limit No limit
of Deposit
Local Agency Investment Fund N/A N/A N/A N/A
Money Market/Mutual Funds N/A AAA 10% N/A
39
CITY OF SA N RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
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 LAIF. 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:
Authorized Investment Maximum Minimum Credit Maximum Percentage
Type Maturity Quality of Portfolio
U.S. Treasury Obligations N/A N/A No Limit
U.S. Agency Securities 3 years N/A No Limit
Category
Bankers' 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
Guaranteed Investment Category
Contracts (fully N/A Highest No Limit
collateralized) (A) Rating
Municipal Obligations N/A Two Highest No Limit
Category Ratings
(A) Guaranteed hnvestment Contracts must be fully collateralized with U.S. Treasury Obligations or
U.S. Agency Obligations.
CITY OF SA N RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 2 - CASH AND INVESTMENTS (Continued)
E. Interest Rate Risk
hlterest 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.
hlformation about the sensitivity of the fair values of the City's investments (including inveshnents
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 Mutual Funds
Local Agency Investment Fund
Corporation Notes
Total Investments
Cash in banks and on hand
Total City Cash and Investments
l2 Months 13 to 24 25 to 60
or Less Months Months Total
$1,021,444 $1,021,444
1,524,096 $2,0835113 $539,646 41146,855
2,3425699 21342,699
24,299,515 24,299,515
514,810 514,810
$29,187,754 $2,083,113 $1,054,456
San Rafael Sanitation District:
Cash in banks and short-term pooled investments
Total District's Cash and
Investments
Total Cash and Investments
995,740
33,321,063
11,071,549
l 1,071,549
$44,392,672
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, 2009, these investments
matured in an average of 235 days.
Money Market Mutual Funds are available for withdrawal on demand and at June 30, 2009
matured in an average of 7 to 47 days.
41
CITY OF SA N RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
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, 2009 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
City:
U.S. Federal Agency Securities
Money Market Mutual Funds
Corporation Notes
Total rated investments
Not rated:
U.S. Treasury Bill
Local Agency Investment Fund
Cash in banks and on hand
Total City Cash and Investments
San Rafael Sanitation District:
Not rated:
Cash in banks and short-term
pooled investments
Total District's Cash and
Investments
Total Cash and Investments
NOTE 3 -INTER-FUND TRANSACTIONS
A. Inter fund Receivables and Payables
Aa2/AA+ Aaa/AAA Total
$514,810
$4,146,855
2,342,699
$11,071,549
$7,004,364
1,021,444
24,299,51.)
995,740
33,321,063
11,07]
,549
392,612
$44,
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, 2009, the Household Hazmat Facility Special Revenue Fund and the Capital
Improvement Capital Project Fund owed the General Fund $8,121 and $79,460, respectively.
The Employee Benefits Internal Service Fund owed the Workers' Compensation Internal Service
Fund $855,578.
42
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 3 - INTER -FUND TRANSACTIONS (Continued)
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.
Transfers between funds during the fiscal year ended June 30, 2009 were as follows:
From Fund
General Fund
Gas Tax Fund
Non -Major Governmental Funds
Parking Services Enterprise Funds
Internal Service Funds
To Fw�d Amount
Non -Major Governmental Funds $4,0965728 A
Internal Service Funds 1685501 B
Non -Major Governmental Funds 350,000 A
General
Fund
1,832,359
D
Gas Tax
Fund
167,218
C
General Fund 271,190 D
Non -Major Governmental Funds 90,000 A
General Fund 2,156,540 D
Non -Major Governmental Funds 8,460 A
$9,140,996
(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.
(Q Transfers to Gas Tax Fund for capital projects cost.
(D) Transfers to the General Fund were for administrative costs and costs of dispatch.
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
govemmental and business -type activities.
43
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 4 — LOANS RECEIVABLE AND DEFERRED REVENUE
A. Summary of Loans Receivable
The City has reserved the portion of fund balance represented by these loans. At June 30, 2009,
these loans totaled:
Employees' Loans $41,256
Centertown Associates 3005789
One "H" Street Associates 68,572
Fire Chief Loan 582,607
Total $993,224
B. Employee 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. One "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.
E. Fire Chief Loan
On September 17, 2007 the City Council approved a Home Loan Agreement to provide the Fire
Chief with housing assistance. Under the Agreement, which was executed on October 3, 2007, the
City loaned the Fire Chief $600,000 to assist in the purchase of his primary residence. The loan is
secured by a recorded Deed of Trust. The initial interest rate to be charged was 5.25% through
August 31, 2008. On September 1, 2008 and on each September 1 following, under the Loan is paid
off, the interest rate of the loan will be adjusted based upon the then reported quarter4o-date Local
Agency Investment Fund rate on the City's investment portfolio. As of June 30, 2009, the balance of
the loan was $582,607.
CITY OF SA N RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 4 — LOANS RECEIVABLE AND DEFERRED REVENUE (Continued)
F. Marro Housing Authority
On April 7, 2008 the Redevelopment Agency approved a loan in the amount of $333,000 to the
Marin Housing Authority. This loan is funded by the Agency's Low and Moderate Income Housing
Capital Projects Fund to assist the housing Authority in the acquisition of a housing unit so that the
unit might remain in the City's Below Market Rate program. The Agency further approved a subsidy
of up to $35,000 to reduce the sales price of the unit. As of June 30, 2009 this loan was paid off in
fiscal year 2008-09.
NOTE 5 -CAPITAL ASSETS
Changes in capital assets during the fiscal year consist of:
Governmental Activities
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Land improvements
Buildings and structures
Machinery and equipment
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Land improvements
Buildings and structures
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total net capital assets being depreciated
Total governmental activity capital assets
Balance
Tune 30. 2008 Additions
Retirements
Transfers
Balance
June 30, 2009
$82,464,364 $246,431 $82,71Q795
3,902,952 1,898,255 ($286,331) ($2,119,140) 33395,722
86,367,316
2,144,686 (286,337)
(2,119,148)
86,106,517
7,954,041
251,060
33,960
81239,061
3834317581
3613054
37,470
38,8303105
15,727,629
963,729 (836,513)
320,118
16,1743963
171,281,124
3,53804
15707,993
176,527,921
233,394,375 5,114,647 (836,513) 2,099,541 239,7723050
(3,614,388)
(7,817,1 10)
(9,418,979)
(84,0533544)
(274,647)
(I ,128,894)
(I ,240,659)
(4,7277059)
755,982
t 6,665
(3,889,035)
(8,946,004)
(9,886,991)
(88,780,603)
(104,904,021)
(7,371,259)
755,982
16,665
(111,502,633)
128,490,354
(2,256,612)
(80,531)
2,116,206
128,269417
$214,857,670 ($111,926) ($366,868) ($2,942) $214,375,934
45
CITY OF SA N RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
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 and 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
Balance Balance
June 30, 2008 Additions Transfers June 30, 2009
$816205853 $856201853
122,861 12201
8,743,714 8,743,714
9,004,106 $1,23Q415 10,234,521
1,1035388 195195 $193607 151423190
10,107,494 1,249,610 19,607 11,376,711
(1,251,724) (18Q,181) (1,431,905)
(3295155) (124,063) (165665) (4693883)
(1,580,879) (304,244) (16,665) (1,901,788)
8,526,615 945,366 2,942 9,474,923
$17,2711329 $945,366 $2,942 $18,218,637
Balance Balance
.Tune 30, 2008 Additions .tune 30, 2009
$1153329 $115,329
136,065 $2,982,265 3,118,330
251,394 2,982,265 3,233,659
12,152,655 12,152,655
33,428,586 33,428,586
371,394 39,658 411,052
451952,635 39,658 45,992,293
(8,173,169) (211,397) (8,384,566)
(11,227,869) (815,481) (12,043,350)
(148,597) (36,489) (185,0861
(19,549,635) (1,063,367) (20fiD,002)
26,403,000 (13023,709) 25,379,291
Total District's capital assets $26,654,394 $1,958,556 $281612,950
CITY OF SA N RAFAEL
►f�Il M. xyl 1C� _._ `T[� �hh�i,[�� lf.`fI ll�l Y �1►/1 �1►`Y 11.`!
For the Year Ended June 30, 2009
NOTE 5 - CAPITAL ASSETS (Continued)
Capital Asset Contributions - Some capital assets may have been acquired using Federal and State grant
funds, or were contributed by developers or other governments. These contributions are accounted for as
revenues at the time the capital assets are contributed.
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 $140,110
Public safety 984,230
Public works and parks 51434,105
Community development/redevelopment 65,676
Culture and recreation 747,138
Total Governmental Activities $7,371,259
Business -type Activities
Parking services
Total Business -type Activities
$304,244
$304,244
47
CITY OF SA N RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 6 - LONG-TERM OBLIGATIONS
A summary of governmental and business -type activities transactions for the fiscal year ended June 30,
20093 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 12/1/2022
2002 Tax Allocation Refunding Bonds
2.00%-5.25%, due 12/1/2021
Total Tax Allocation Bonds
Ground Lease Note Payable,
8.00%, due 11/1/2024
Court Fine Repayment Promissory Note,
3.873%, due November 2011
Fire Truck Capitalized Lease Obligations,
2.92%, due 3/24/2009
Telephone System Capitalized Lease Obligations,
4.28%, due 05/30/2012
Total Governmental Long-term Debt
Business -type Activities
2003 Authority Lease Revenue Bonds
3.004.70%, due 4/l/2033
Total
Enterprise Fund Debt
San Rafael Sanitation District
2001 Certificates of Participation
3.25-4.40%, due 8/1/2012
Less: unamortized discount/ issuance cost
Total District Debt
Authorized
Balance
Balance
Current
and Issued
June 30, 2008 Additions
Retirements June 30, 2009
Portion
$5,250,000 $780,000 $325,000 $455,000 $455,000
21,115,000 15,810,000 730,000 15,080,000 765,000
2,38904 3,907,161 $221,531 4,12802
2 5 , 02 0, 000 17, 820, 000
1,235,000 16,585,000 1,29Q,000
37,537,161 221,531 1,965,000 35,793,692 2,055,000
169,000 169,000
1,133,458 816,119
668,134 ]41,485
318,000 259,670
222,019
141,485
169,000
594,100 23Q,772
60,854 198,816 63,486
$39,703,435 $221,531 $2,714,358 $37,21008
7,605,000 $7,140,000
$7,140,000
4,710,000 $2,220,000
(86,235)
$2,133,765
$2,804,258
$165,000 $6,975,000 170,000
$165,000 $6,97500 $170,000
$410,000 $1,810,000 43Q000
(27,968) (58,267)
$382,032 01,751,733 $43Q000
�yMWI]OL"irral&NN
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 6 - LONG-TERM OBLIGATIONS (Continued)
A. 1997Autlzorny Revenue Bonds
On January 28, 1997, the San Rafael Joint Powers Financing Authority issued the 1997 Aurthority
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. hnterest 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 confinned against private property within
the Reassessment District. This pledge of revenues ends upon repayment of the $468 thousand in
remaining debt service on the Authority's long-term debt which is scheduled to occur in fiscal 2010.
For fiscal year 2009 pledged special assessment revenues amounted to $246 thousand and debt service
of these Bonds amounted to $391 thousand.
B. I999 Tax Allocation Bonds and Capital Appreciation Bonds
On June 16, 1999, the Agency issued Tax Allocation Bonds in the amoLmt 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 (refunded in 2002), by a pledge and a lien on tax revenues and amounts on deposit in
certain funds and accounts held by the fiscal agent.
The pledge of future tax increment revenues ends upon repayment of the $28.8 million in remaining
debt service on the Redevelopment Agency's long-term debt which is scheduled to occur in 2022. For
fiscal year 2009 tax increment revenues amounted to $1.5 million and debt service amounted to $1.5
million.
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
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
Fax 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 semiammally 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.
The pledge of future tax increment revenues ends upon repayment of the $21.1 million in remaining
debt service on the Redevelopment Agency's long term debt which is scheduled to occur in 2021. For
fiscal year 2009 tax increment revenues amounted to $2.1 million and debt service also amounted to
$2.1 million.
D. 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, 2009 was
$169,000 plus accrued interest of $185,394 which is recorded as interest payable.
E. Capitalized Lease Obligations
The City leased two fire trucks in the amount of $668,134. The annual lease payment of $72,295 for
fiVC 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.
F. 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 the 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.
50
CITY OF SA N RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 6 - LONG-TERM OBLIGATIONS (Continued)
G. 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.
H. 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 1
from 2006 to 2033, in amounts ranging from $150,000 to $290,000. Interest is payable semiannually on
April 1 and October 1. The bonds maturing on or after April 1, 2011 are subject to optional redemption
prior to maturity on or after April 1, 2010 at the option of the City, as a whole on any date. The Lease
Revenues are secured by lease payments made by the City to the Authority for leasing the City
facilities.
I. 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.
51
CITY OF SAN RAF EL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 6 - LONG-TERM OBLIGATIONS (Continued)
Future debt service requirements, including interest and capital leases, at June 30, 2009, 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
2010 $2,804,258 $195439498 $170,000 $326,666 $4303000 $6%310
2011 2,4569103 194242130 175,000 3213141 440,000 50,820
2012 294573555 11307,310 1855000 314,141 9401000 209680
2013 25380,000 1,186,144 190,000 306,741
2014 2,505,000 1,0625151 2009000 299,141
2015 - 2019 14,5491946 3,2849730 1,1259000 1,364,838
2020 - 2024 13,5909054 6749713 1,395,000 1,089,612
2025 - 2029 1693000 11770,000 7153500
2030 - 2033 15765,000 2263000
Totals 40,911,916 $10,482,676 $6,975,000 $4,963,780 1,810,000 $140,810
Reconciliation oflong-term debt:
Less unaccreted discount (3,701,308)
Less unamortized original issue discount (58,267)
$37,210,608
NOTE 7 -DEBT WITHOUT CITY COMIVIITMENT
$1,751,733
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
Description
162475 Belvedere
Apartments
St. Marks School
55 Fairfax
Apartments
San Rafael Commons
Apartments
Martinelli House
Kaiser Foundation
Hospitals
Original
Amount
$3,590,529
5,605,000
3,000,000
6,100,000
1,000,000
275,000,000
San Rafael Redevelopment Agency Martinelli House
Multifamily Housing Revenue Bonds-2007 Series A Project 6,OOQ000
Outstanding
June 30, 2009
$1,342,934
5,125,000
2,700,000
5,700,000
195,630,000
2,540,163
52
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June au, 2uu9
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 terms 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 fmld. 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.
f.7C3
CITY OF SAN RAFAEL
TEST BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 9 — EMPLOYEES RETIREMENT PLAN
A. Plan Description
The City contributes to the Marin County Employees' Retirement Association (Association). All full-
time and permanent part-time employees who work at least 75% of a full time position are eligible to
participate.
The Association 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 Association 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
Association, 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 Association 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 50.90% and 58.69% of payroll to Fund for Police and Fire personnel, respectively, and
26.70% for other covered employees for the year ended June 30, 2009.
C. Annual Pension Cost
The annual required contribution was determined as part of the actuarial performed as of June 30, 2008.
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 2008 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 gain of 9.8%. 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 Association 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
required contributions and related rates for the year ended June 30 were as follows:
Fiscal Year Annual
Ended Pension Cost
Percentage of Net
54
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 9 — EMPLOYEES RETIREMENT PLAN (Continued) I
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:
Actuarial Excess Excess (Deficit)
Actuarial Actuarial Accrued (Deficit) Assets Over AAI
Valuation Value Liability (AAL) Assets Funded Covered As a % of
Date of Assets Entry Age Over AAL Ratio Payroll Payroll
6/30/06 $209,785,000 $3061079,000 ($96,294,000) 69% $285606,000 (279%)
6/30/07 235,7563000 325,2195000 (8%4635000) 72% 3031805000 (277%)
6/30/08 262,677,000 3603298,000 (97,6215000) 73% 3138543000 (306%)
NOTE 10 - PUBLIC AGENCY RETIltEMENT SYSTEM (DEFINED CONTRIBUTION
RETIREMENT PLANS)
The City contribtrtes 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 H 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.
The City has established the voluntary Retirement Separation Program in fiscal year 2009.
During the year, the City and employees contributed $71,156. The total covered payroll of employees
participating in the plan for the year ended June 30, 2009, was $1,897,489. The total payroll for the
year was $40,377,568a
55
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 10 - PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION
RETIREMENT PLANS) (Continued)
Additionally, me 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 Association. 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 $146,524 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 Marin County Employees' Retirement Association
within 120 days of retirement from City employment. At June 30, 2009, 301 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.
During fiscal year 2009, the City implemented the provisions of Governmental Accounting Standards
Board Statement No. 45, Accounting and Financial Reporting by Employers for Postempyment
Benefits Other Than Pensions. This Statement establishes uniform financial reporting standards for
employers providing postemployment benefits other than pensions (OPEB). The provisions of this
statement are applied prospectively and do affect prior years financial statements. Required
disclosures are presented below.
56
CITY OF SA N RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 11— POST -EMPLOYMENT HEALTH CARE BENEFITS (Continued)
The provisions and benefits of the City's Other Post Employment Benefit Plan, in effect at June 30,
2009, are summarized as follows:
Elected Officials, Mid -Management,
& Unrepresented Management
All other Bargaining Units
Eligibility
Retire directly from the City:
Age 50 with 10 years services OR
30 years service (Miscellaneous), 20
. years service (Safety) OR
- Disability Retirement
Up to cap and it varies by
Benefit
Full premium
bargaining units
Spouse Benefit
Continuation to surviving spouse
Medicare Part B
Full reimbursement
None
Other
No dental vision, or life benefits
Funding Policy and Actuarial Assumptions
The annual required contribution (ARC) was determined as part of a June 30, 2007 actuarial
valuation using the entry age normal actuarial cost method. This is a projected benefit cost method,
which takes into account those benefits that are expected to be earned in the future as well as those
already accrued. The actuarial assumptions included (a) 4.50% investment rate of return and (b)
3.00% of general inflation increase, and (c) a healthcare trend of declining annual increases ranging
from 10.4% to 11.3% in 2009 to 4.50% for year starting 2017. In addition, the fixed dollar benefit
amounts are assumed to increase according to general inflation in the future and the premium related
benefits are assumed to increase with the healthcare trend rate. The actuarial methods and
assumptions used include techniques that smooth the effects of short-term volatility in actuarial
accrued liabilities and the actuarial value of assets. Actuarial calculations reflect a long-term
perspective and actuarial valuations involve estimates of the value of reported amounts and
assumptions about the probability of events far into the future. Actuarially determined amounts are
subject to revision at least biannually as results are compared to past expectations and new estimates
are made about the future. The City's OPEB unfunded actuarial accrued liability is being amortized
as a level percentage of projected payroll using a 30 year amortization period.
57
CITY OF SA N RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 11— POST=EMPLOYMENT HEALTH CARE BENEFITS (Continued)
In accordance with the City's budget, the City's annual contributions to the Plan are based on pay -as -
mu -go financing. Generally accepted accounting principles permit assets to be treated as OPEB
assets and deducted from the Actuarial Accrued Liability when such assets are placed in an
irrevocable trust or equivalent arrangement. Contributions a 401 (h) account held and administered
by the MCERA were made by the City in prior years and were included in the June 30, 2007
actuarial study. During the fiscal year ended June 30, 2009, the City has calculated and recorded the
Net OPEB Obligation, representing the difference between the ARC, and contributions, as presented
below:
Fiscal Year
Ended
June 30, 2009
Annual
Requited
Contribution
(ARC)
(000's omitted)
$4,269
Annual
Pension Cost
(000's omitted)
$4,269
Actual
Contribution
(000's omitted)
$2,236
Percentage
of ARC
Contributed
52%
Net OPEB
Obligation
(000's omitted)
$2,033
The Schedule of Funding Progress presents trend information about whether the actuarial value of
pIan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Trend data from the June 30, 2007 actuarial study is presented below:
Valuation
Date
1/1/2007
Actuarial
Value of
Assets
(000's omitted)
$14,563
Accrued
Liability
(000's omitted)
$565624
Overfunded
(Underfunded)
Actuarial
Unfunded Liability as
Accrued Covered a Percentage of
Liability Funded Payroll Covered
(000's omitted) Ratio (000's omitted) Payroll
($42,061) 26% $38,480 409.31%
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.
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 12 — JOINTLY GOVERNED ORGANIZATIONS (Continued)
A. The Marin County Integrated On -Line Library System (System)
The Marin County 11t 51 ted 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 17.06% 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 $117,616 to the System
for operating costs for the year ended June 30, 2009. 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 General Services Authority (MGSA)
The MGSA was formed by the County of Marin and twelve local agencies to acquire street light
facilities, operate the facilities during 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 MGSA was $2,103 for the year ended June 30, 2009. Financial statements
of the MGSA can be obtained at 27 Commercial Boulevard, Suite C, Novato, CA 94949.
C. Tlae 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 rata share based on an agreed -upon formula established by a majority of the
Governing Board. The members entered into a Project Operating Agreement on February 1, 1999.
Under the Operating Agreement, members are obligated to contribute service payments to cover the
Authority's operation and debt service. The City's portion of the obligation is 16.913%. The first
operating service payment was in July 1999. The first debt service payment was in August 2002.
The City contributed $637,578 for the Authority's operation and debt service for the fiscal year
ended June 30, 2009. 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.
59
CITY OF SA N RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 12 — JOINTLY GOVERNED ORGANIZATIONS (Continued)
D. The Countywide Plan1"Its 6ency
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. Financial statements of the Agency can be obtained at 3501 Civic Center Drive,
San Rafael, California 94903.
E. The 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 $150,292 for the year ended June 30, 2009. Financial
statements of the Agency can be obtained at 371 Bel Marin Keys Blvd, Suite 100, Novato, CA
94949.
F. 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 $15,320 for the year ended June 30, 2009. 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. Financial statements of the Corporation can be obtained at P.O. Box 151560, San
Rafael, CA 94915.
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 13 - RISK MANAGEMENT
The City manages risk by participating in Ube 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
Liability Coverage
The City is a member of the California Joint Powers Risk Management Authority (CJPRMA) which
covers general liability claims up to $40,000,000. The City also purchases commercial insurance for
property damage claims with an insured amount of $98,575,604. The City is self -insured up to a
maximum of $500,000 for each general liability claim and $25,000 for each property damage claim.
Once the self -insured retention is met CJPRMA becomes responsible for payment of all claims up to the
limit. During the fiscal year ended June 30, 2009, the City contributed $260,851 for coverage during the
current year and received a refund of $120,550 of prior year excess contributions. Financial statements
for the risk pools may be obtained from CJPRMA, 2333 San Ramon Valley Blvd., Suite 250, San
Ramon, CA 95608,
Workers' Compensation Coverage
The City purchased insurance for workers' compensation through AIG Excess Workers' Compensation
and Employers Liability Insurance with coverage up to statL�tory limits. The City is self -insured up to a
minimum of $750,000 for each worker's compensation claim.
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 �u�insured 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.
Cfl
CITY OF SA N RAF EL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
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
infonnation 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' Totals, as of June 30
Liability Compensation 2009 2008
$437,518 $3,822,6] 1 $4,260,129 $4,558,181
442,143 (141,850) 300,293 1,329,653
(4725300) (371,151) (843,451) (1,627,705)
$407,361 $3,309,610 $3,716,971 $4,260,129
$300,000 $2,100,000 $2,400,000 $2,284,387
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, City's Web site needs an ADA overhaul, and a
significant amount of items relate to curb ramps. As of June 30, 2009, the City has mad significant
progress in improving the accessibility of its programs, activities, services and facilities. The majority
of the remaining items relate to curb ramps. The City's latest estimate is 583 ramps remaining to be
constructed and the estimated average cost is $5,800 per curb ramp.
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 amount of $179,000 each fiscal year beginning with fiscal year 2002-03 through fiscal year
2021-22.
62
CITY OF SA N RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2009
NOTE 15 — SUBSEQUENT EVENT
The State of California adopted AB26 4X in July 2009 which directs that a portion of the
incremental property taxes received by redevelopment agencies be paid to the County
supplemental educational revenue augmentation fund (SERAF) in fiscal years 2009-10 and 2010-
11. The State Department of Finance will determine each agency's SERAF payment by
November 15 of each year, and payments are due by May 10 of the applicable year. Based on
the calculations in AB26 4X, the Agency's SERAF's are estimated to be $1,370,626 in fiscal
year 2009-10 and $282,188 in fiscal year 2010-11. The Agency can use any legally available
funds to make the SERAF payments. The payment due in fiscal year 2009-10 represents 42% of
the Agency's cash and investments available for operations at June 30, 2009. The obligation to
make the SERAF payment is subordinate to obligations to repay bonds, however if the Agency
fails to make the SERAF payment the Agency may not encumber or expend future funds other
than to pay pre-existing indebtedness, contractual obligations and 75% of the amount expended
on Agency administration for the preceding fiscal year until the SERAF is paid in full. The
Agency's obligation is in addition to amounts due pursuant to the Fiscal Agreement as discussed
above in Note 6.
63
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REQUIRED SUPPLEMENTAL INFORMATION
65
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 Gas Tax
Special Revenue Funds.
67
CITY OF SAN RAFAEL
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
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
FUND BALANCES, END OF YEAR
FOR THE YEAR ENDED DUNE 305 2009
Budgeted Amounts
Original Final
$47,364,401
L279,148
7693070
479,680
61683,510
2,235,555
1265560
58,937,924
$45,560,864
1,288, 198
769,070
1993680
7,0993360
2,020,555
16L560
Actual
Amounts
$42,951,759
1,467,413
660,338
1567747
7,018,197
L923,653
2383614
Variance with
Final Budget
Positive
(Negative)
($2,609,105)
1791215
(108,732)
(42,933)
(81,163)
(96,902)
77,054
57,099,287 54,416,721 (2,682,566)
6,893,355 6,958,424 6,811,591
35,4265487 355463,104 35,056,051
7,403,440 75361,116 75299,137
4,196,345 4,150,415 4,0045061
2,456,440 25448,378 2,463,777
4,320 845712 159,230
233,900 303,900 5185251
222,020 222,020 222,019
146,833
407,053
61,979
146,354
(15,399)
(74,518)
(214,351)
56,836,307 56,992,069 56,534,117 457,952
2,101,617 107,218 (2,117,396) (2,224,614)
2,202,950 2,902,090 4,06Q090
(4,561,000) (4,039,229) (4,265,229)
(25358,050) (1,1375139) (205,139)
($256,433) ($1,0295921
1,158,000
(226,000)
932,000
(2,3227535) ($1,2921614)
6,218,765
$3,896,230
CITY OF SAN RAFAEL
TRAFFIC AND HOUSING MITIGATION SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
REVENUES
Use of money and property
Charges for services
Otherrevenue
Total Revenues
EXPENDITURES
Current:
Public works and parks
Capital outlay
Capital improvement/special projects
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)
$2100
$81,000
$233,585
$152,585
145,124
145,124
215819
21,819
2100
81,000
4005528
3193528
66,230
66,230
67,917
(11687)
221,187
(221,187)
110745705
15074,705
66,230
11140,935
2895104
851,831
(45,230)
(15059,935)
1115424
1,171,359
($45,230)
($1,059,935)
1113424
$L1711359
9,873,946
$9,985,370
i•
CITY OF SAN RAFAEL
GAS TAX SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
Budgeted Amounts
Original Final
REVENUES
Use of money and property $32,860
Intergovernmental L027,500
Charges for services 6363000
Otherrevenue
Total Revenues
EXPENDITURES
Current:
Public works and parks
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
FUND BALANCES, END OF YEAR
Actual
Amounts
$32,860 $36,703
2,7721351 6,487,634
6367000 988,593
65,823
Variance With
Final Budget
Positive
(Negative)
$3,843
3,7153283
3527593
65,823
1,696,360 3,441,211 7,578,753 4,137,542
74, 840
1,2151640
1,290,480
7Q,640 63,162 7,478
1,659,954 336493700 (1,989,746)
11366,672 3,431,818 (2,0651146)
3,097,266 7,144,680 (4,047,414)
405,880 343,945 434,073
350,00
(350,000)
167,217 167,217
(350,000) (350,000)
182,783
$55,880 $161,162
(182,783)
$251,290
2,141,002
$2,392,292
90,128
70
CITY OF SAN RAFAEL
REDEVELOPMENT AGENCY CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2009
Budgeted Amounts
Original Final
REVENUES
Taxes and special assessments $900,000 $900,000
Use of money and property 263,240 263,240
hntergovernmental
Charges for services 13,580 135580
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works and parks
Community development/redevelopment
Capital outlay
Capital improvement/special projects
Total Expenditures
Net Assets (Accumulated Deficit), beginning of year
OVER (UNDER) EXPENDITURES
Net Change in Fund Balances
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
Actual
Amounts
$980,997
127,051
554,559
27,153
16,791
1,176, 820 1,176,820 1,706, 551
21,650
1635910
1,587,810
322,470
21,650
163,910
1,6373280
322,470
30,660
147,756
1,568,018
5695099
328,116
2,095,840 2,145,310 2,643,649
(919,020) (968,490) (937,098)
($919,020) ($968,490)
(937,098)
5,926,137
$4,989,039
Variance with
Final Budget
Positive
(Negative)
$80,997
(136,189)
554,559
13,573
16,791
529,731
(9,010)
16,154
6%262
(56%099)
(5,646)
498,33
31,392
$31,392
71
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SUPPLEMENTARY INFORMATION
73
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NON -MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Recreation Revolving Fund -Established to administer the Recreation Department's program and
facility rental charge and accounts for the Recreation Memorial Fund.
Baypoint Lagoons Assessment District Fund -The Baypoint Lagoons Lighting and Landscape
District was formed to protect and enhance wildlife habitat and water quality in Baypoint (Spinnaker)
Lagoon and the adjacent diked salt marsh.
Household Hazmat Facility Fund - Established to account for State mandated hazardous
materials information, collection, and reporting. Expenditures include inspection of businesses for
compliance with regulations. This fund also serves as the depository for countywide Household
Hazardous Waste Program.
Childcare Fund -Established to administer and account for childcare programs at 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.
NON -MAJOR GOVERNMENTAL FUNDS
Sewer Maintenance Fund — Established under the terms of the JrA to provide all necessary
maintenance to the Sanitation District's gravity collection sewer system.
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 fimds 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 from multiple -unit housing used to pay for
maintaining and developing parks within local neighborhoods.
Assessment Districts Fund —Established to account for ongoing construction and improvement
needs within the following assessment districts: Peacock Gap, Kerner Boulevard, Sun Valley/Lucas
Valley Open Space, East San Rafael Drainage Assessment District 1.
Park Capital Projects Fund —Established to account for capital improvements for all City owned
parks, whether paid for by City fimds, 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.
76
NON -MAJOR GOVERNMENTAL FUNDS
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.
ASSETS
Cash and investments
Restricted cash and investments
Receivables:
Accounts
Taxes
Grants
Interest
Prepaids and deposits
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Developer bonds payable
Due to other funds
Deferred revenue
Due to other agency
Compensated absence
Total Liabilities
Fund Balances:
Reserved for:
Encumbrances
Prepaids and deposits
Debt service
Unreserved, undesignated
Total Fund Balances
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2009
Recreation
Revolving
$91,900
228,917
SPECIAL REVENUE FUNDS
Baypoint
Lagoons
Assessment
District
$108,685
152
11,105
$331,922 $108,837
$83,353
216,130
299,483
Household
Hazmat
Facility
$326,000
Childcare
$52,986
43,745
Street
Maintenance
and Cleaning
$547,741
117,613
$326,000 $96,731 $665,354
$226, 165 $25,022
8,121
3,497
5,129
$7,042
234,286 33,648 7,042
334
21,$108,837 91,714 63,083
321439 108,837 91,714 6303
658,312
658,312
Total Liabilities and Fund Balances $331,922 $108,837 $326,000 $96,731 $665,354
658,312
658,312
Total Liabilities and Fund Balances $331,922 $108,837 $326,000 $96,731 $665,354
SPECIAL REVENUE FUNDS
Loch Lomond
Assessment Public Development Parkland
District Library Safety Stormwater Services Grants Dedication
$8589764 $118,209 $177,594 $734,668 $6605573 $607,402 $1,237,197
21,697
89 4,733
905270 299,329
$858,853 $208,479 $199,291 $739,401 $660,573 $906,731 $1,237,197
$8,571
$228 $34,411
15,741
8,571 228 50,152
$31,031 $9,307
1,500
32,531 9,307
$858,853 199,908 199,063 689,249 628,042 897,424 $1,237,197
858,853 199,908 199,063 689,249 628,042 897,424 1,237,197
$858,853 $208,479 $1995291 $739,401 $660,573 $9065731 $1,2371197
(Continued)
79
ASSETS
Cash and investments
Restricted cash and investments
Receivables:
Accounts
Taxes
Grants
Interest
Prepaids and deposits
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Developer bonds payable
Due to other funds
Deferred revenue
Due to other agency
Compensated absence
Total Liabilities
Fund Balances:
Reserved for:
Encumbrances
Prepaids and deposits
Debt service
Unreserved, undesignated
Total Fund Balances
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2009
SPECIAL REVENUE FUNDS
Emergency
Medical
Services
$594,795
19,767
Business Sewer
Improvement Maintenance
$4,916 $302,068
DEBT SERVICE FUNDS
Peacock Gap
Assessment
District
$2,875
$614,562 $4,916 $302,068 $2,875
$65,615
65,615
$5 $259,995
5 259,995
548,947 4,911
548,947 4,911
42,073
42,073
$2,875
2,875
Mariposa
Assessment
District
$16,259
$16,259
$16,259
16,259
Total Liabilities and Fund Balances $614,562 $4,916 $302,068 $2,875 $16,259
DEBT SERVICE FUNDS
1997
Financing
Authority Redevelopment Capital
Revenue Bonds Agency Improvement
$274,648 $33,941
3321571 15837
1,362
$570,711
CAPITAL PROJECT FUNDS
Bedroom Assessment
Tax Districts
$30,411 $223,741
Park
Capital Open
Projects Space
$15,060 $143,577
$608,581 $35,826 $570,711 $30,411 $223,741 $15,060 $143,577
$]05,044
79,460
184,504
$608,581
$353826 3865207 $305411 $2235741 $153060 $143,577
608,581 353826 386,207 303411 2235741 15,060 1435577
$608,581 $35,826 $570,711 $30,411 $223,741 $15,060 $143,577
(Continued)
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2009
ASSETS
Cash and investments
Restricted cash and investments
Receivables:
Accounts
Taxes
Grants
Interest
Prepaids and deposits
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Developer bonds payable
Due to other funds
Deferred revenue
Due to other agency
Compensated absence
Total Liabilities
Fund Balances:
Reserved for:
Encumbrances
Prepaids and deposits
Debt service
Unreserved, undesignated
Total Fund Balances
Total Liabilities and Fund Balances
CAPITAL PROJECT FUNDS
Equipment Radio Telephone
Replacement Replacement Replacement
$2,050,523
34,864
$431,476
$74,812
Total
Non -Major
Governmental
Funds
$9,320,009
4095220
729,091
26,103
1,004,055
48
11,105
$2,085,387 $431,476 $74,812 $11,499,631
$20,184
20,184
1,220
2,063,983 $431,476
2,065,203
$2,085,387
431,476
$8,727
8,727
66,085
66,085
$431,476 $74,812
$884,700
1,500
87,581
219,627
5,129
15,741
1,214,278
1,220
11,105
6273715
9,645,313
10,285,353
$11,499,631
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
REVENUES
Taxes and special assessments
License and permits
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)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balance, Beginning
Fund Balance, Ending
Recreation
Revolving
$761
2000
2,0895342
% 192
2,178,295
3,856,042
55,454
SPECIAL REVENUE FUNDS
Baypomt
Lagoons
Assessment
District
$25,368
Household
Hazmat
Facility
Street
Maintenance
Childcare and Cleaning
2,277 $1,086 $2,135 $]8,296
75799 389,834 15170,225
1,375,518 21799,342
97640 2,765 8,392
27,645
4,896
1,394,043 3,194,076 ],196,913
1,337,960
7,988
3,482,129
1,774,164
207,593
3,911,496 4,896 1,345,948 3,482,129 1,981,757
(1,733,201) 22,749 48,095 (288,053) (784,844)
1,732,760
1,732,760
(441) 22,749
3200 8608
$32,439 $108,837
48,095
43,619
253,920 1,228,170
(272,282)
253,920
(34,133)
97,216
955,888
171,044
487,268
$91,714 $63,083 $658,312
Loch Lomond
Assessment
District
$14,796
19,776
34,572
53
Public
Library Safety
SPECIAL REVENUE FUNDS
Stormwater
$5,500
Development Parkland
Services Grants Dedication
665
$44,677 $3,721 14,$41,023 $17,401
341,690 795059 33328 915,117
61147 55680 7923996 253219
30,545 1,895 841791 6300
423,059 90,355 816,489 151,033 996,318
142,U 8
1,399,144
114,190
1635227
279,808 10,166 58,829 195,892
4,334 187,922
82
$8583853 1)199,908
171,612
520
100,000
3 ] 7,223
270,257
662,215
25,611
(1)
161,374
1,000
53 393,998 152,904 1,621,200 195,892 1,350,215
34,519 29,061 (62,549) (804,711) (44,859) (353,897) 188,684
90,000 1,034, 816 296,601 885962
(173075) (253000)
(17,075) 90,000 1,0343816 2713601 88,962
345519 115986 273451 2303105 (443859) (82,296) 277,646
4595144 672,901 979,720 959,551
$199,063 $6891249 $628,042 $8975424 $1,237,197
(Continued)
CITY OF SAN RAFAEL
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 303 2009
SPECIAL REVENUE FUNDS
Emergency
Medical
Services
REVENUES
Taxes and special assessments $3,210,317
License and permits
Use of money and property 655
Intergovernmental
Charges for services 2,0255709
Otherrevenue
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)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balance, Beginning
Business
Iprovement
m
$181
13,000
16,057
Sewer
Maintenance
$395
1,671,525
5,236,681 29,238 1,671,920
4,573,223
4,573,223
663,458
8,460
(347,950)
(339,490)
323,968
29,252
1,528,320
29,252 1,528,320
14) 143,600
(143,600)
(143,600)
224,979 4,925 42,073
DEBT SERVICE FUNDS
Peacock Gap
Assessment
District
Mariposa
Assessment
District
$260
260
260
260
$2,875 15,999
Fund Balance, Ending
$548,947 $45911 $42,073 $25875 $165259
DEBT SERVICE FUNDS CAPITAL PROJECT FUNDS
1997
Financing Park
Authority Redevelopment Capital Bedroom Assessment Capital Open
Revenue Bonds Agency Improvement Tax Districts Projects Space
$246,031 $3,5%775 $20,400
20,619 396 $6,278 5,246 $429 $35343
5185229
6,003
266,650 3,569,171 5245507 25,646 61432 35343
3,768 11,576
824,465 22,751 3,511
3255000 065,000
655889 103,775
390,889 3,568,775 828,233 11,576 22,751 3,511
(124,239) 396 (303,726) 14,070 (16,319) (168)
11,499
(1,750) (154,400) (2003000)
(1,750) (142,901) (200,000)
(1253989) 396 (446,627) (185,930) (16,319) (168)
734,570 353430 8325834 216,341 $2231741 31,379 1433745
$6087581 $35,826 $386,207 $30,411 $223,741 $1500 $143,577
(Continued)
CITY OF SAN RAFAEL
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
REVENUES
Taxes and special assessments
License and permits
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)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balance, Beginning
Fund Balance, Ending
CAPITAL PROJECT FUNDS
Equipment Radio Telephone
Replacement Replacement Replacement
$49,080 $12,015
1,395,510 649,380
123,193
$2,708
302,000
Total
Non -Major
Governmental
Funds
$7,086,387
5,500
2935034
334585280
13,299,742
416,273
1,567,783 661,395 304,708 24,559,216
311,476
642,097
141,485
3,106
1,098,164
469,619
637,578 238,449 1,217,275
6,153,921
5,348,674
757695584
448,828
2,328,672
637,578
23,817
(437,520) (40Q,000)
(437,520) (4003000)
32,099 (3767183)
2,033,104
60,854
2,492,339
10,470
1,683,240
3095773
27,442,533
(5,065)
(21883,317)
4,745,188
(L999,577)
2,745,611
(59065) (137,706)
8075659 71,150 1Q423,059
$2,0655203 $431,476 $66,085 $10,285,353
This Page Left Intentionally Blank
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 303 2009
REVENUES
Taxes and special assessments
Licenses and permits
Fines and forfeitures
Use of money and property
Intergovermnental
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)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
FUND BALANCES, BEGINNING OF YEAR
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
$5,000
$761 ($4,239) 800
2000
207000
2,079,840
209,342 91502
49,850
%192 185342
2,154,690 2,178,295 23,605 25,800
3,551,086
2,480
45,000
3,856,042
55,454
(304,956)
2,480
(I A54)
3,598,566 3,911,496 (3I2,930)
$25,368 $368
2,277 1,477
27,645 1,845
4,896 (4,896)
4,896 (4,896)
(1,443,876) (I,733,201) (289,325) 25,800 22,749 (3,051)
1,386,760 1,732,760 346,000
1,386,760 1,732,760 346,000
($57,116) (441) $56,675 $25,800
32,880
$32,439
22,749
$108,837
r'1
SPECIAL REVENUE FUNDS
Household Hazmat Facility
Variance
Final Positive Final
Budget Actual (Negative) Budget
Childcare
Actual
Street Maintenance and Cleaning
Variance Variance
Positive Final Positive
(Negative) Budget Actual (Negative)
$1,550 $1,086 ($464) $2,135 $2,135 $21,090 $18,296 ($2,794)
5,330 7,799 2,469 $417,548 389,834 (27,714) 50105 13170,225 668,420
173852780 1,375,518 (103262) 21936,600 2,799,342 (137,258)
9,640 9,640 2,765 25765 2,580 8,392 5,812
1,39200 1,394,043 1,383 31354,148 3,194,076 (I60,072) 525,475 1)196,913 671,438
11329,330 1,337,960 (81630)
1,831,180 1,774,164 57,016
33514,283 3,4823129 32,154
11,890 11,890 1193310 119,310
6,750 71988 (1,238) (100,000) 207,593 (307,593)
1,336,080 1,345,948 (9,868) 3,526,173 3,482,129 44,044 1,850,490 1,981,757 (131,267)
56,580 48,095 (8,485) (172,025) (288,053) (116,028) (1,325,015) (784,844) 540,171
300,430 253,920 (46,510) 1,228,170 1,228,170
(46,510) 46,510 (214,282) (272,282) (58,000)
253,920 253,920 1501308 95508 (58,000)
$56,580 48,095 ($8,485) $81,895
43.619
(34,133) ($116,028) ($311,127)
97,216
$63,083
171,044 $482,171
487,268
$658,312
(Continued)
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 305 2009
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 govenvnent
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)
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
Final
Budget
$ 14, 800
2000
Variance
Positive
Actual (Negative)
Library
Variance
Final Positive
Budget Actual (Negative)
19,776 (224) $26,060 $44,677 $18,617
189,690 341,690 15200
41000 6, 147 2,147
209000 30,545 10,545
34,800 34,572 (228) 239,750 423,059 183,309
34,800
$34,800
137,692
56,500
53 (53) 194,192
114,190 23,502
279,808 (223,308)
393,998 (199,806)
34,S19 (281) 45,558 29,061 (16,497)
(17,075) (17,075)
(17,075) (17,075)
34,519 (281) $28,483
824,334
$858,853
11,986
187.922
$199,908
($16,497)
SPECIAL REVENUE FUNDS
Public Safety
Variance
Final Positive Final
Budget Actual (Negative) Budget
$1,220
$3,721
$2,501
60,100
79,059
18,959
700
500
(1,320)
500
1,895
1,395
68,820
90,355
21,535
$5,500
2,260
] 0,950
878,640
Stormwater
Actual
$5,500
14,665
3,328
792,996
Development Services
Variance Variance
Positive Final Positive
(Negative) Budget Actual (Negative)
3,715
3,328
(85,644)
897,350 816,489 (80,861)
$34,170 $41,023 $6,853
25,219 25,219
93,445 84,791 (8,654)
127,615 151,033 23,418
168,570 142,738 25,832
1,580,530 1,399,144 181,386
324,740 1631227 161,513
4,000 10,166 (6,166) 58,829 (58,829) 93,445 195,892 (102,447)
172,570 152,904 1906 005,270 1,621,200 284,070 93,445 195,892 (102,447)
(103,750) (62,549) 413201 (1,0077920) (8043711) 203,209 34,170 (44,859) ($79,029)
90,000 90,000
1,034,816 1,034,816
90,000 90,000 1,034,816 1,034,816
($13,750) 273451 $411201 $26,896 230,105 $203,209 $34,170
171,612
$199,063
459,144
$689,249
(44,859) ($79,029)
672,901
$628,042
(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 303 2009
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
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
OTFIER FINANCING SOURCES (USES)
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
C7»ll]/:f11�1�L�11111�1��11L/3.y
Grants Parkland Dedication
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$26,450 $17,401 ($9,049)
1,4023832 915,117 (487,715)
134,410 63,800 (70,610)
1,563,692 996,318 (567,374
520 (520)
1 l 2,240 100, 000 12,240
490,583 317,223 173,360
90,124 270,257 (18Q133)
1,2611170 662,215 5983955
1,954,117 1,350,215 603,902
$10,650
$700 ($9,950)
25,611
25,611
(1)
161,374
(1)
16 L374
100
100
10, 65 0 18 8, 6 84 178, 034
(390,425) (353,897) 36,528 ] 0,650 188,684 178,034
296,601 296,601
(25,000) (25,000)
271,601 27101
($ll8,824) (82,296) $36,528
979,720
$897,424
88,962 88,962
88,962 88,962
$99,612 277,646 $178,034
959,551
$1,237,197
SPECIAL REVENUE FUNDS
Emergency Medical Services Business Improvement
Variance Variance
Final Positive Final Positive Final
Budget Actual (Negative) Budget Actual (Negative) Budget
$3,310,000 $3,210,317 ($99,683)
655 655 $560 $181 ($379)
16,510 1300 (37510)
1,9009000 2,025,709 125,709
22,520 16,057 (6,463)
5,21000 5123601 2601 395590 29,238 (10,352)
4,508,536 4,573,223
1,000
(64,687)
1,000
39,580 29,252 10,328
$6,970
1,9241550
Sewer
Maintenance
Variance
Positive
Actual (Negative)
$395
1,671,525
(253,025)
1,931,520 1,671,920 (259,600)
1,782,866 1,528,320 254,546
4,509,536 4,573,223 (63,687) 39,580 29,252 10,328 1,782,866 1,528,320 254,546
700,464 663,458 (37,006) 10 (14) (24) 148,654 1431600 (5,054)
8,460 8,460
(347,950) (347,950)
(339,490) (339,490)
(143,600) (143,600)
(1435600) (1433600)
$360,974 323,968 ($37,006) $10 (14) ($24) $5,054
224,979 4,925
$548,947 $4,911
42,073
$42,073
(Continued)
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
REVENUES
Taxes and special assessments
Licenses and pen -nits
Fines and forfeitures
Use of money and property
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
Generalgovenunent
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)
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
FOR THE YEAR ENDED DUNE 30, 2009
DEBT SERVICE FUND
Mariposa Assessment District
Variance
Final Positive
Budget Actual (Negative)
$260 ($820)
1997 Financing Authority Revenue Bonds
Variance
Final Positive
Budget Actual (Negative)
$300,440
2,620
260 (820) 303,060
$246,031 ($54,409)
2Q619 17,999
266,650 (36,4]0)
180,000 325,000 (145,000)
52,030 65,889 (]3,859)
232,030 390,889 (158,859)
260 (820) 7],030 (124,239) ($195,269)
260
15,999
(1,750) (1,750)
1,750) (1,750)
($820) $69,280 (]25,989) ($195,269)
734.570
$608,581
DEBT SERVICE FUND
CAPITAL PROJECT FUND
Redevelopment Agency Capital Improvement Open Space
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$3,568,780 $3,568,775
3,568,780 3,569,171
1,965,000
1,965,000
1,603,780
1,603,775
3,5685780
3,568,775
ft3!Zi7
396
35.430
$35,826
396 $6,278
5187229
$391 524,507
3,768
$81,750 824,465
F7
$6,278 $5,470 $3,343 ($2,127)
518,229
524,507 5,470 3,343 (2,127)
(3,768)
(742,715)
5 81,750 828,233 (746,483)
12,960 3,511 9,449
12,960 3,511 9,449
396 (81,750) (303,726) (221,976) (7,490) (l68)
l 1,499 11,499
(154,400) (154,400)
(142,901) (142,901)
$396 ($224,651) (446,627) ($221,976) ($7,490)
832,834
$386,207
(Continued)
7,322
(168) $7,322
143,745
$143,577
m
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, 2009
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 govermnent
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)
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 FUND
Equipment Replacement
Variance
Final Positive
Budget Actual (Negative)
$42,000 $49,080 $7,080
1,395,510 ],395,510
3600 1233193 87,193
Radio Replacement
Variance
Final Positive
Budget Actual (Negative)
$32,860
649,380
$12,015
649,380
($20,845)
1,473,510 1,567,783 94,273 682,240 661,395 (20,845)
307,930 311,476 (3,546) 649,380 637,578 11,802
45,040 45,040
77040 642,097 1277943
142,190 141,485 705
13,890 3,106 10,784
1,279,090
1,098,164
180,926
649,380
637,578
11,802
1942420
469,619
275,199
3200
23,817
(9,043)
(437,520) (437s2o>
(400,000> (400,000>
(437,520)
(437,520)
(400,000)
(400,000)
($243,100)
323099 $275,199
($367,140)
(376,183) ($9,043)
2,033,104
$2,065,203
(Continued)
807,659
$431,476
CAPITAL PROJECT FUND
Telephone ReplacemenC
Variance
Final Positive
Budget Actual (Negative)
$300 $2,708 $2,408
30200 30200
302,300 304,708 2,408
230,000 238,449 (8,449)
60,850
6Q854
10,470
10,470
301,320
3093773 (85449)
980 (5,065) (6,045)
$980 (5,065) ($6,045)
71,150
$663085
This Page Left Intentionally Blank
INTERNAL 1
Internal service funds account for department services and financing performed for other departments
within the same governmental jurisdiction. Funding comes from charges assessed to the departments
benefiting from the service.
Building Maintenance Fund -Established to account for construction projects and cyclical large dollar
maintenance tasks (roof, painting) completed on City owned buildings.
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.
Print Shop and Mail Fund —Set up to maintain sufficient reserves for printing and mail payment. All
costs associated with printing and mail expenses are paid from this fund.
101
ASSETS
Current Assets:
Cash and investments
Accounts receivable
Due from other funds
Prepaids and deposits
Total Assets
LIABILITIES
Current Liabilities:
Accounts payable
Due to other funds
Claims payable
Total Current Liabilities
Noncurrent Liabilities:
Claims payable
Total Noncurrent Liabilities
Net Assets Total Liabilities
NET ASSETS:
Unrestricted
Total Net Assets
Building
Maintenance
$148,344
148,344
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
JUNE 305 2009
Employee
Liability
Workers'
Dental
Print
Shop
Benefits
Insurance
Compensation
Insurance
and
Mail Total
$928,241 $2,820,814 $7,360 $14,977 $3,919,736
$1,0477179 1,047,179
855,578 8553578
L729 3,458 5,187
1,047,179 929,970 3,6793850 7,360 14,977 53827,680
20,115 1,337 707 5,751 4,150 9,642 41,702
855,578 855,578
300,000 231007000 2,400,000
2J 15 856,915 300,707 2005,751 4,150 91642 3,297,280
] 07,361 1,209,610 1,316,971
107,361 1,209,610 1,316,971
20,115 856,915 408,068 3,315,361 4,150 9,642 4,6143251
128,229
190,264
521,902
364,489
3,210
5,335
1,213,429
$128,229
$190,264
$52%902
$364,489
$3,210
$53335
$1,213,429
1®2
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED JUNE 302 2009
OPERATING REVENUES
Charges for current services
Other operating revenues
Total Operating Revenues
OPERATING EXPENSES
Insurance premiums and claims
Maintenance and repairs
General and administrative
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Investment income
Total Nonoperating
Revenues(Expenses)
Net income (loss) before transfers
Transfers in
Transfers out
Change in Net Assets
NET ASSETS, BEGINNING OF YEAR
NET ASSETS, END OF YEAR
Building
Employee
Liability
Workers'
Dental
Print
Shop
Maintenance
Benefits
Insurance
Compensation
Insurance
and
Mail Total
$11Q,690 $1,339,897
$1,571,440 $2,011,247
$527,628
$186,038 $5,746,940
135193397
151,916
14>330
L6853643
11000 2,859,294
1,723,356 2,011,247
541,958
186,038 71432,583
2,389,901
948,104
1,130,245
541,960 156,613
5,166,823
419,774
817342
32,927
534043
574192
163
7LI63
645,518
419,774 279641093
948,267
1,2119587
541,960 2603703
6,346,384
(309,084) (1047799)
775,089
7993660
(2) (74,665)
17086,199
3,794
25,881 98,135
3,794 25,881 98,135
(3057290) (1047799) 800,970 897,795
88,501
448
448
128,258
128,258
446 (74,665) 1,214,457
80,000 168,501
(500,000)
(75Q000)
(915,000)
(2,165,000)
(2167789) (6047799)
50,970
(177205) 446
5,335 (782,042)
345,018 7957063
4703932
3811694 2,764
179959471
$128,229 $190,264
$52L902
$3643489 $31210
$5,335 $172132429
103
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds
Cash payments to suppliers for goods and services
Other operating revenues
Cash Flows from Operating Activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts (payments)
Cash Flows from Noncapital
Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Investment received
Cash Flows from Investing Activities
Net Increase (Decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)
Net change in assets and liabilities:
Accounts receivable
Prepaids and deposits
Accounts payable
Claims payable
Net Cash Provided by (Used in) Operating Activities
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED .TUNE 30, 2009
Building
Employee
Liaty
Workers'
Dental
Print Shop
Maintenance
Benefits
Insurance
Compensation
Insurance
and Mail
Total
$110,690
$1,5433046
$17571,440
$2,011D247
$527,628
$186,038
$5,950,089
(460,668)
(2,9635272)
(978,411)
(1,723,516)
(542,000)
(2515061)
(6,9187928)
19519,397
151,916
147330
176852643
(349,978) 99,171 744,945 287,731 (42) (65,023) 716,804
SSsol (99,u1) (7so,000) (1,77os78)
Sssol (99,171) (7so,000> (1,77os78)
3,794 25,881 98,135
3,794 25,881 98,135
(zs7,683) zo,sz6 (1,384,712)
80,000 (2,457,?48)
80,000 (? 451,248)
448 128,258
4a8 128,2s8
406 14,977 (1,606,186)
406,027
907,415
4,205,526
6,954
5,525,922
$148,344
$9283241
$278207814
$7,360
$14,977 $3,9192736
($309,084) ($104,799) $775,089 $799,660
203,149
2,389 (119)
(40,894) 821 (25376) lj91
(30,157) (5137001)
($2) ($74,665) $1,086,199
203,149
2,270
(40) 99642 (31,656)
(543,158)
($349,978) $997171 $7441945 $287,731 ($42) ($652023) $71604
104
� � �
Classic Car Paratle
This Page Left Intentionally Blank
STATISTICAL SECTION
This part of the Uty's Comprehensive Annual Financial Report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary
infonnation says about the City's overall financial health. In contrast to the financial section, the statistical section
information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial perfonnance and
well being have changed over time:
1. Net Assets by Component
2. Changes in Net Assets
3. Fund Balances of Govermnental Funds
4. Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City's most significant local revenue source, the
property tax:
1. Assessed and Estimated Actual Value of Taxable Property
2. Property Tax Rates, All Overlapping Governments
3. Principal Property Taxpayers
4. Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current levels of
outstanding debt and the City's ability to issue additional debt in the future:
l . Ratio of Outstanding Debt by Type
2. Computation of Direct and Overlapping Debt
3. Computation of Legal Bonded Debt Margin
4. Bonded Debt Pledged Revenue Coverage, Redevelopment Agency Tax Allocation Bonds
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within
which the City's financial activities take place:
l . Demographic and Economic Statistics
2. Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the
City's financial report relates to the services the City provides and the activities it performs:
1. Full -Time Equivalent City Government Employees by Function
2. Operating Indicators by Function/Program
3. Capital Asset Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Comprehensive Amlual Financial
Reports for the relevant year. The City implemented GASB Statement 34 in 2003; schedules presenting
govermnentwide information include information beginning in that year.
107
This Page Left Intentionally Blank
$250,000
$200,000
$150,000
$100,000
$50,000
m
CITY OF SAN R.AFAEL
NET ASSETS BY COMPONENT
Last Seven Fiscal Years
(accrual basis of accounting)
2003 2004 2005 2006 2007 2008 2009
■NetofRelatedDebt ■Restricted ■Unrestricted
Governmextal activities
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets,
net of related debt
Unrestricted
Total business -type activities net assets
Primary government
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total primary goverment net assets
2003 2004 2005
$198,031,181
2,933,294
1622162230
$217,1802705
$8,464,417
1,078,245
$9,542,662
$206,495,598
2,933,294
17,294,475
$226,723,367
$202,215,793
2,708,397
9,775,565
$214,699,755
$8,749,750
1,447,467
$10,197,217
$210,965,543
2,708,397
11,223,032
$224,896,972
$194,658,126
2,378,641
147167,627
$211,204,394
$8,615,483
1,900,504
$10,515,987
$203,273,609
2,378,641
16,068,131
$221,720,381
2006 2007
$175,806,100
620,889
325739,318
$209,166,307
$9,819,435
2,113,659
$11,933,094
$185,625,535
620,889
34,852,977
$221,099,401
$171,849,149
31,124,935
42499,136
$ Z07,473,220
$9,717,501
2,226,838
311,944,339
$181,566,650
31,124,935
6,725,974
$219,417,559
2008 2009
$176,724,820
26,848,900
41273,937
$207,847,657
$1Q,130,329
2,471,117
$12,601,446
$186,855,149
26,848,900
6,745,054
$220,449,103
$178,744,119
25,721,231
(7009985)
$2 13,764,365
$11,243,637
1,936,958
$13,180,595
$189,987,756
25,721,231
1,235,973
$216,944,960
109
Expenses
Governmental Activities:
General government
Public safety
Public works and parks
Community development / redevelopment
Culture and recreation
Interest on long-term debt
Total Governmental Activities Expenses
Business -Type Activities:
Parking services
Total Business -Type Activities Expenses
Total Primary Government Expenses
Component Unit:
San Rafael Sanitation District
Program Revenues
Governmental Activities:
Charges for services:
General government
Public safety
Public works and parks
Community development / redevelopment
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total Government Activities Program Revenues
Business -Type Activities:
Charges for services:
Parking services
Total Business -Type Activities Program Revenues
Total Primacy Government Program Revenues
Component Unit:
Charges for services:
San Rafael Sanitation District
Net (Expense)/Revenue
Governmental Activities
Business -Type Activities
Total Primary Government Net Expense
Component Unit Activities
2003
$5,555,915
30,476,353
27,237,899
3,727,315
9,055,681
4,082,760
CITY OF SAN KAFAEL
CHANGES IN NET ASSETS
Last Seven Fiscal Years
(Accrual Basis of Accounting)
2004
Fiscal Year Ended June 30
2005 2006
$5,074,335 55,895,390
30,453,108 325891,692
16,0431092 16,820,453
31921,422 4,624,345
7,444,339 814503017
21516,659 2112%818
2007
$632525533 $8,908,433
33,1785537 37,2715272
235401,246 20,998,749
41194,249 493845408
8,652,445 9,729,485
11725,559 211835683
80,135,923 65,452,955 7Q811,715 77,404,569 83,476,030
1,245,316 I,539,441 2,451,941 2,761,511 3,110,254
1,245,316 1,539,441 2,451,941 2,761,511 3,110,254
$81,381,239 $66,992,396 $73,263,656 $8Q166,080 $86,586,284
$5,708,208 $5,297,737 $5,288,582 56,148,915 $6,656,432
$1,433,372
$1,487,595
2,530,916
2,203,371
3,072,849
2,6971858
1,691,427
1,982,211
35688,418
3,960,777
6,003,700
5,252,820
1,744,556
573,485
$1,831,269
$402,094
51,512,814
4,315,141
5,085,679
5,279,785
3,298,076
317995861
4,030,060
0745527
3,1905832
2,8155009
3,924,360
4,368,274
41521,004
3,321,135
2,7455570
3,701,901
606,589
3,936,474
2,786,761
20,165,238 18,1585117 19,271,097 23,5285784 2436475334
i,81o,479
�,307,432
2,604,066 3,025,380 3,24? 046
1,810,479 2,3073432 21604,066 3,0251380 35242,046
$21,9755717 $20,465,549 $211875,163 $26,554,164 $2758895380
$5,566,610 $5,811,437 $6,060,993 $6,340,773 57,857,9(6
($59,970,685)
($47,294,838)
(S51,540,618)
(553,875,785)
($58 828 6961
565,163
767,991
152,125
263,869
131,792
($59,405,522) ($46,526,847) ($5153885493) ($5336113916) ($58,696,904)
($141,598) $513,700 $772,411 $191,858 $1,201,484
110
2008
$8,621,079
40,845,347
22,105,367
5,811,866
1033007230
139891620
2009
$8,075,344
42,708,538
23,036,676
5,759,171
1 1,505,896
1,907,229
89,673,509 92,992,854
3,282,235 3,563,235
3,282,235 3,563,235
$92,955,744 $96,556,089
$8,09Q636 $9,143,977
$1,494,784
5,562,072
4,983,288
3,247,024
4,870,884
334633616
31239,509
$1,738,685
5,906,445
4,753,817
239153872
512537683
3,544,248
7,311,173
26,861,177 31,423,923
4,161,936 4,454,490
4,161,936 43454490
$31,023,113 535,878,413
$9,366,305 $1 Q567,647
($62,812,332) ($61,568,931)
879,701 891,255
($61,932,631) ($60,677,676)
$1,275,669 $1,423,670
111
General Revenues and Other Changes in Net Assets
Governmental Activities:
Taxes:
Property
Sales
Special assessments
Paramedic
Motor vehicles
Transient occupancy
Franchises
Business licenses
Other
Investment earnings
Loss on disposal of assets
Miscellaneous
Special item - Court fines repayment
Transfers
Total Government Activities
Business -Type Activities:
Investment earnings
Aid from other government agencies
Transfers
Total Business -Type Activities
Total Primary Government
Component Unit:
San Rafael Sanitation District
Property Taxes
Investment earnings
Miscellaneous
Aid from other governmental agencies
Total Component Unit
Change in Net Assets
Governmental Activities
Business -Type Activities
Total Primary Government
Change in Net Assets
Component Unit Activities
CITY OF SAN RAFAEL
CIIANGES IN NET ASSETS
(continued)
Last Seven Fiscal Years
(Accrual Basis of Accounting)
2003
$13,983,697
16,779,878
3,055,575
3,317,710
5,465,495
1,897,339
(5001819)
1,843,458
2004 2005 2006
$14,895,188
17,166,966
3,329,680
2,495,598
5,476,044
809,242
498,200
$17,385,722
17,13200
3,6423184
4,657,817
5,151,205
1,112,548
876,907
$20,848,887
18,188,524
3,017,488
372,726
6,963,448
1,248,409
361,195
232,398 142,970 15,720 201,191
2007
$20,360,475
24,484,356
2,9981925
331,620
8,830,955
1,669,181
491,488
(1,133,458)
212.170
46,074,731 44,813,888 49,974,203 51,201,868 58,245,712
17,772 29,534 28,522 44,536 91,623
40,735 1,309,893
(232,398) (142,970) (15,720) (201,191) (212,170)
(214,626) (113,436) 53,537 1,153,238 (120,547)
$452860,105 $44,70Q452 $50,027,740 $521355,106 $58,125,165
$560,269 $591,078
104,358 75,739
154,919
$125,959 $179,479 $755,763
117,348 237,206 367,887
609,419 645,804 340,642
$805,941 $821,736 $852,726 $102,489 $1464,292
($13,895,954) ($2,480,950) ($1,566,415) ($2,673,917) ($582,984)
350,537 654,555 205,662 1,417,107 11,245
(U3,545,417) ($1,826,395) ($1,360,753) ($1,256,810) ($571,739)
0
664,343 $1,335,436 01,625,137 $1,254,347 $2,665,776
112
2008
2009
22,195,606 $21,978,859
253764,457 21,970,262
3,503,555
3,210,317
2577320 1973989
1,678,912
2,941,149
2,405,934
9,242,241 17561,835
115837056 717,968
296,454 461,224
344,080 361,190
633186,769 57,485,639
1211486 49,084
(344,080) (361,190)
(2223594) (3123106)
$6239643175 $5711733533
$803,071
$855,511
341,032
206,752
3,546
37540
577,860
3813144
$177257509
$11446,947
$374,437 ($4,083,292)
657,107 579,149
$1,031,544 ($3,504,143)
$3,001,178 $2,870,617
113
This Page Left Intentionally Blank
GenemlFund
Reserved
Unreserved
Total General Fund
All Other Goven menhd Fonds
Reserved
Unreserved, reported in:
Special Revenue Funds
Debt Service Fonds
Capital Project Funds
Expendable Trust Fund
Total all other governmental funds
Thousaada
$601000
$507000
$40,000
$302000
$200000
$10,000
$0
CFI'Y SAN RAFAEL
FUND BALANCES OF GOVERNMENTAL FUNDS
WE Ten Fiscal Years
(Madsed Accrual Basis of Accounting)
2000 2001 2002 2003 2004 1005 2006 2007 2008 2009
■Reserved ■Unrexrved
As otJune 30.
2000 2001 2002 2003 2aa4 2005 2006 2007 2008 2009
$7
$34,781,234
$33,963,309
$22,579,186
$36,695,318
$32,471,197
$26,599,557
$21,603,724
$20,773,760
$17,599,142
$16,680,568
11,991,024
13,861,241
13,195,852
6,317,972
5,574,048
5,628,187
7,168,753
8,107,477
7,413,808
8,641,239
35,430
(ls0302293)
417342986
%315,764
39360,540
447,748
461,953
422188
$47,220.006
$48,286,503
$36.197,226
$43.013,290
$38.045,245
$32,227,744
$28.772,477
$33.616,223
S28.364.144
$27,652,054
(a) The change iv total fund balance for the General Fund and other govemmrntel fimds
is explained in Mmagement's Discussion and Analysis.
115
CITY OF SAN RAFAEL
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal
Year Ended June 30,
2000
2001
2002
2003
Revenues
Taxes and special assessments
$36,267,264
$39,753,729
$38,53002
$39,284,643
Licenses and permits
84605
844,793
690,077
735,109
Fines and forfeitures
1,466,685
13337,617
773,239
770,632
Use of money and property
2,616,579
33989,893
2,465,306
1,897,339
Intergovernmental
9,061,449
9,2233148
8,590,790
934057422
Charges for services
101590,021
12,019,807
9,704,113
107102,392
Other revenue
7,014,228
41684,447
1,148,767
3,568,297
Total Revenues
67,862,231
71,8533434
61,902,894
653763,834
Expenditm•es
Current:
General government
5,7253859
5,737,343
6,188,702
4,740,703
Public safety
23,756,604
24,437,700
25,898,206
28,041,079
Public works and parks
7,607,760
809,755
9,329,346
9,491,552
Community development / redevelopment
2,914,886
3,454,234
3,61008
37253,947
Culture and recreation
632177506
6,381,725
7,077,117
7,176,097
Capital outlay
486,424
2,92309
3071483
1257884
Capital improvement / special projects
1914793314
I Q935,705
15,760,086
11,058,796
Debt service:
Capitalized lease obligation
197,132
Principal
1,875,000
1,786,000
1,8491000
24,29000
Interest and fiscal charges
2,700,668
2,746,333
2,641,111
4,046,170
Total Expenditures
70,7643021
67,072,464
72,661,159
92,421,360
Excess (deficiency) of revenues over
(under) expenditures
(21901,790)
4,780,970
(I0,758,265)
(26,6573526)
Other Financing Sources (Uses)
Proceeds from issuance of debt
Contribution from Sanitation District
Capital lease for equipment acquisition
Transfers in
Transfers (out)
Total other financing sources (uses)
Net Change in fund balances
Debt service as a percentage of
noncapital expenditures
32,625,000
744,556
7,846,585
7,070,234
5,750,044
42,503,976
(8,333,854)
(7,830,234)
(6,432,801)
(42,971,248)
(487,269)
(760,000)
(682,757)
323902,284
($3,389,059) $4,020,970 ($117441,022)
(
)
)
a
$6,244,758
(a)
NOTE:
(a) The City nnplemented GASB Statement 34 in fiscal year 2003. Therefore this calculation is included only
for fiscal years subsequent to that date.
Fiscal
Year Ended June 30,
2004
2005
2006
2007
2008
2009
$40,875,826
$42,901,520
$44,901,544
$52,472,246
$56,1291195
$51,019,143
928,303
929,993
1,175,030
1,157,981
13489,748
1,472,913
7915975
15088,459
622,494
515,528
797,081
660,338
1,0243199
1,244,406
1,3165558
1,74408
1,584,508
847,120
830497002
10,522,095
11,705,917
123760,496
12,0810968
17,518,670
1 Q423,754
11,407,622
13,104,572
13,504,621
1507,460
16,3845265
735,976
1,135,485
1475,078
lA%743
8157704
7597320
623829,035
69,229,580
74,301,193
83,624,303
88,505,664
8801,769
5,0145452
5,539,191
6,200,338
81188,999
8,288,170
8,059,526
28,863,197
31,784,872
33,321,967
36,264,321
40,299,862
41,209,972
9,257,991
9,294,419
1022,585
11,972,537
13,64105
12,926,646
3,875,542
3,763,614
4,184,084
4,3193042
55786,661
51572,079
7,145,264
7,538,607
8A09,833
905,370
9,820,365
M2333361
31,703
1,027,267
60,411
6,716,630
6,2433517
5,0487044
9,82503
9,25301
13,200,872
1,189,613
5,124,091
606,857
IQ,775 141,197 13Q,315
2,360,000 2,585,000 2,525,000 2,287,255 2,504,370 2,714,358
234561357 2,140,673 1,878,265 1,829,091 1,7763354 17683,240
%840,384 7308,501 80,5333670 811772,858 93485,055 94,05403
(6,011,349) (3,838,921) (6,232,477) ],851,445 (4,979,391) (5,392,314)
318,000
5,222,868 8,636,544 6,925,107 6,812,260 6,353,216 8,972,495
(419793898) (7,740,324) (6,672,916) (6,958,046) (6,329,136) (63614,806)
242,970 896,220 252,191 172,214 2400 2,357,689
($51768,379) ($2,942,701) ($5,9803286) $2,023,659
($4,955,311) ($31034,625)
117
$1z,000
$10,000
$8,000
0
$6,000
$4,000
$2,000
$0
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXADLE PROPERTY
LAST EIGHT FISCAL YEARS
2002 2003 2004
2005
2006
2007
OmlbmUnsecured
Property
0001mSecured
Property
2008 2009
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct
Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b)
2002
2003
2004
2005
2006
2007
2008
2009
$4,516,490,542
4,827,556,658
5,160,984,286
5,510,630,728
6,018,318,932
6,544,841,348
7,024,610,641
7,357,121,277
$1,410,153,485
1,480,344,464
1,514,445,365
1,546,579,852
1,618,091,589
1,745,483,576
1,824,656,505
1,941,927,620
$126,299,23 8
128,546,036
130,514,420
146,822,250
177,974,231
197,040,979
214,341,528
234,66%841
$78,693,794
74,236,658
91,737,340
93,875,824
91,321,393
122,977,950
105,409,028
129,177,651
Source: HdL Coren &Cone, Marin County Assessor 2001/02-2008/09 Combined Tax Rolls
$6,131,637,059
6,510,683,816
6,897,681,411
7,297,908,654
7,905,706,145
8,610,343,853
9,169,017,702
9,662,896,389
$445,297,553
431,291,562
406,163,129
40750165133
376,8K454
36257275209
37459765613
$6,131,637,059
6,955,981,369
7,328,972,973
7,704,071,783
8,312,722,278
8,987,234,307
9,531,744,911
10,037,873,002
$6,131,637,059
6,955,981,369
7,328,972,973
7,704,071,783
8,312,722,278
8,987,234,307
9,531,744,911
10,037,873,002
0.29149%
0.32195%
0.32010%
0.30834%
0.30792%
0.30328%
0.30273%
0.30752%
(a) The State
Constitution requires property to be assessed at one hundred percent of the most
recent purchase price,
plus an increment of no more than two percent
annually,
plus any local over -rides. These values are considered to be full market values.
(b) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1%and allocates a portion of that amount, by an annual
calculation, to all the taxing entities within a tax rate area.
118
CITY OF SAN RAFAEL
PROPERTY TAX RATES
ALL OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Fiscal School Misc. Special
Year City County (1) Districts Districts Total
2000
0.154
0.295
0.5413
0.0461
1.0360
2001
0.154
0.295
0.5683
0.0461
1.0630
2002
0.154
0.295
0.5873
0.0461
1.0820
2003
0.154
0.295
0.6163
0.0461
1.1110
2004
2005
0.154
0.154
0.295
0.295
0.6483
0.6593
0.0461
0.0461
1.1430
1.1540
2006
0.154
0.295
0.6828
0.0461
1.1775
2007
0.154
0.295
0.7160
0.0461
1.2107
2008
0.154
0.295
0.7225
0.0461
1.2172
2009
0.154
0.295
0.7192
0.0461
1.2139
Notes:
(1) Like other cities, San Rafael includes several property tax rate areas with different rates. A mean average is indicated.
Source: Marie County Assessors OfFice 1999/00 - 2008/09 Tax Rate Tables
119
CITY OF SAN RAFAEL
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
Northgate Mall Associates
SR Corporation Center Phase 1 & 2
Hines San Rafael LLC
Sutter Health
Regency Center IT Associates LP
Marin Sanitary Service
4040 Civic Center
Bay Apartment Communities Inc
Northbay Properties 11
Rafael Town Center Investors LLC
AMG Realty Partners LP
Lucas Digital Ltd. LLC
Autodesk Inc
MHV Joint Venture
Home Depot USA Inc. L/L etal
F E Trotter Inc.
Fair Isaac & Co. Inc
WHLW Real Estate Ltd. Partners
Subtotal
Total Net Assessed Valuation:
Fiscal Year 2008-2009
Fiscal Year 1999-2000
Percentage
of Total City
Taxable Taxable
Assessed Assessed
Value Value
$97,270,425 1.0%
8%644,871 0.9%
80,92%782 0.8%
411564,999 0.4%
40,911,379 0.4%
38,347,115 0.4%
36,205,533 0.4%
34,497,679 0.3%
33,9501419 0.3%
335948,747 0.3%
1999-2000
Percentage
of Total City
Taxable Taxable
Assessed Assessed
Value Value
$89,5973441
34,230,569
63,750,047
40,982,654
33,142,893
25,443,053
21,816,912
21,7353510
19,637,270
19,037,112
$527,270,949 5.3% $369,373,461
$10,037,873,007
$5,163,095,206
Source: HdL Coren &Cone, Marin County Assessor 1999-2000 & 2008-2009 Net Taxable Value History
7.2%
CITY OF SAN RAFAEL
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
PROPERTY TAX LEVIES AND COLLECTIONS (1)
LAST TEN FISCAL YEARS
--�—Allocations
�—Apportionments
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Delinquent taxes
Fiscal as a Percent of
Year Rate Levies Allocations Collections ApportionmentsDelinquencies Allocations
2000 1.00 (2) 10,954,198 (2) 10,954,198 (2) 0.0%
2001 1.00 (2) 11,594,551 (2) 11,594,551 (2) 0.0%
2002 1.00 (2) 1232939952 (2) 1252939952 (2) 0.0%
2003 1.00 (2) 13,983,697 (2) 13,983,697 (2) 0.0%
2004 1.00 (2) 1438953188 (2) 145895,188 (2) 0.0%
2005 1.00 (2) 173385,722 (2) 175385,722 (2) 0.0%
2006 1.00 (2) 2038483887 (2) 2058489887 (2) 0.0%
2007 1.00 (2) 2033603475 (2) 2053609475 (2) 0.0%
2008 1.00 (2) 2231953606 (2) 225195,606 (2) 0.0%
2009 1.00 (2) 2139783859 (2) 215978,859 (2) 0.0%
Notes:
(1) Excludes State Reimbursed Exemptions and deductions for County property tax administration.
(2) Information not applicable. All general purpose property taxes are levied by the county and allocated
to other governmental entities.
Source: San Rafael Finance Department Revenue Reports
121
Elm
E�
CITY OF SAN RAFAEL
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Governmental Activities
RDA Tax Financing Court Fine Capitalized
Fiscal Allocation Authority Note Promissory Lease
Year Bonds Revenue Bonds Payable Note Obligations Total
2000 $47,0993004 $49315,000 $1693000 $51,583,004
2001 4598999004 31885,000 16%000 4%953,004
2002 43547%004 3,335,000 1695000 4639833004
2003 4459149000 2,820,000 1695000 473903,000
2004 43523%004 21340,000 1699000 4537483004
2005 4195143004 1,685,000 1695000 43,368,004
2006 401849,107 1,1559000 16%000 $412,441 4295853548
2007 3%217,501 9505000 1695000 $1,02%717 596,927 41,9635145
2008 3735375161 780,000 16%000 816,119 401,155 395703,435
2009 3557935692 455,000 16%000 594,100 198,816 379210,608
Business -Type Activities
Parking Total Percentage
Fiscal Services Primary of Personal Per
Year Bonds Total Government Income (a) Capita (a)
2000 $5155835004 0.31% $920
2001 49,953,004 0.30% 883.59
2002 4639833004 0.29% 828.76
2003 $7,605,000 $75605,000 553508,000 0.34% 973.72
2004 7,6055000 75605,000 5333533004 0.29% 933.04
2005 7,6055000 75605,000 503973,004 0.26% 890.76
2006 79455,000 75455,000 5030403548 0.24% 872.56
2007 7,300,000 7,300,000 493263,145 0.22% 848.68
2008 75140,000 751405000 46,8435435 N/A 804.39
2009 659753000 6,9755000 44,1855608 N/A 757.08
Note : Debt amounts exclude any premiums, discounts, or other amortization amounts.
Sources: City of San Rafael
State of California, Department of Finance (population)
U.S. Department of commerce, Bureau of the Census (income)
(a) See Schedule of Demographic and Economic Statistics for personal income and population data.
122
CITY OF SAN RAFAEL
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 2009
2008 09 Assessed Valuation:
Redevelopment Incremental Valuation:
Adjusted Assessed Valuation:
OVERLAPPING TAX AND ASSESSMENT DEBT:
Marin Community College District
San Rafael High School District
Tamalpais Union High School District
Dixie School District
Ross School District
Ross Valley School District
San Rafael School District
City of San Rafael 1915 Act Bonds
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
$10,037,813,007
2)1 91)093, 123
$7,8461719,884
Marin County Certificates of Participation
Marin County Pension Obligations
Marin County Transit District General Fund Obligations
Marin Municipal Water District General Fund Obligations
Marin Community College District Certification of Participation
Dixie School District Certificates of Participation
San Rafael School District Certificates of Participation
City of San Rafael General Fund Obligations
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT
COMBINED TOTAL DEBT
Total Debt
6/30/2009
;132318000
5616707315
18234051000
854851810
18,724,941
15,039,213
66,688,301
445,000
Applicable (1)
15.160%
73.930%
0.091
%
66,806%
1.857%
0.008%
78.095%
100.000%
City's Share of
Debt 6/30/09
$20,038,488
41,896,364
165,989
55669,030
347,722
1,203
52,080,229
445,000
$120,6441025
$43,098,270
15.135%
$6,522,923
112,7551000
15.135%
171065,469
238,124
15.135%
36,040
1935728
19,463%
375705
2,9405834
15.160%
445,830
555,000
66,806%
370,773
41280,000
78.095%
31342,466
1013877438
100.000%
101387,438
$381208,645
$158,852,670 (2)
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the City.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and ended capital capital lease obligations.
Ratios to 2008-09 Assessed Valuation:
Total Overlapping Tax and Assessment Debt
Ratios to Adjusted Assessed Valuation:
Combined Direct Debt
Combined Total Debt
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/09:
Source: California Municipal Statistics, Inc.
1.20%
0.13%
2.03
m
123
CITY OF SAN RAFAEL
COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2009
ASSESSED VALUATION:
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:
LEGAL BONDED DEBT MARGIN
$10,037, 873,002
376,420,238
35,793,692
$412,213,930
Total net debt
Total Net Debt
Legal
applicable to the limit
Fiscal
Debt
Applicable to
Debt
as a percentage
Year
Limit
Limit
Margin
of debt limit
2002
$2291936,390
$ 43,479,004
$ 1861457,386
23.32%
2003
260,8495301
44,9147000
21559355301
20.80%
2004
274,836,486
43,239,004
231,597,482
18.67%
2005
288,902,692
41,514,004
2471388,688
16.78%
2006
3115727,085
40,849,107
2705877,978
15.08%
2007
337,021,287
395217,501
297,803,786
13.17%
2008
357,4405434
375537J61
319,903,273
11.73%
2009
3763420,238
35,793,692
340,626,546
10.51%
NOTE: (a) California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change
in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75%
is one-fourth
Source: California Municipal Statistics. Inc. and City of San Rafael's Management Service Department
124
• I I
3.00
2.00
0.00
2004 2005
Fiscal Gross Operating
Year Revenue (1) Expenses (2)
CITY OF SAN RAFAEL
REVENUE BOND COVERAGE
PARKING FACILITY
LAST SIX FISCAL YEARS
2006 2007
� Coverage
Net Revenue
Available for
Debt Service
Debt Service Requirements
2009
Principal Interest Total Coverage
2004
$ 25336,966
$ 11498,740
$ 8383226
2005
2,632,588
1,964,713
667,875
-
$ 431,958
$ 431,958
1.55
2006
3,069,915
2,155,435
914,480
$ 150,000
344,441
494,441
1.85
2007
3,331,754
2,3443285
9879469
1559000
3395904
494,904
IN
2008
430899112
256925086
13397,026
l%000
335,216
495,216
2.82
2009
4,503,574
299243365
1,5795209
1655000
330,379
495,379
3.19
Notes: On March 26, 2003, the City Financing Authority issued lease revenue bonds for the design and construction of a new par]
(1) Includes all Parking Facility Operating Revenues and Non -operating Interest Revenue
(2) Includes all Parking Facility Operating Expenses less Depreciation and Interest
Source: City of San Rafael Annual Financial Statements
125
CITY OF SAN RAFAEL
REDEVELOPMENT PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
1999 RDA Tax Allocation Bonds 2002 RDA Tax Allocation Bonds
Finding Source: RDA tax increment revenues Funding Source: RDA tax increment revenues
Fiscal
Available
Debt Service Requirements
Fiscal
Available
Debt Service Requirements
Year
Revenue
Principal Interest
Total
Coverage
Year
Revenue
Principal Interest Total
Coverage
2000
$1,497,200
$ 560,000
$ 937,200
$ 1,497,200
1.00
2000
N/A
N/A
N/A
N/A
N/A
2001
1,497,529
500,000
9977529
1,497,529
1.00
2001
N/A
N/A
N/A
N/A
N/A
2002
1A99A75
525,000
974,445
1A99A45
I.00
2002
N/A
N/A
N/A
N/A
N/A
2003
1,49900
5501000
9493600
174997600
I.00
2003
$2,069,768
$1,475,000
$ 5945768
$270692768
1.00
2004
11497,881
575,000
92201
1,497,881
1.00
2004
2706%425
111001000
969,425
2,0691425
1,00
2005
1,4997856
6052000
8943856
114997856
1.00
2005
2,067,225
171207000
947,225
21067,225
1.00
2006
1A953525
6307000
8657525
11495,525
1,00
2006
2,0697575
1, 14500
9247575
270691575
1.00
2007
1,499,769
6651000
8345769
1,499,769
1.00
2007
27066,475
%165,000
9011475
25066,475
1.00
2008
174975469
6957000
802A69
1A973469
1,00
2008
2,070,381
111957000
876,381
2,0717381
1.00
2009
1,498625
7301000
768,625
1,4981625
1.00
2009
2,0701150
132353000
835,150
2,0703150
1.00
126
CITY OF SAN RAFAEL
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
■City Population as a % of County Population
$100
N
c
$90
N
$80
0
$70
~
$60
$50
$40
$30
� Per Capita Personal Income (2)
Personal
Fiscal City Income (2)
Year Population (1) in millions)
$25,000
$20,000
$155000
$10,000
$5,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
■Personal Income (2) (in millions)
10.00%
0.00%
2000 2001 2002 2003 2004 2005 2006 2007 20p8 20
Per Capita
Personal
Income (2)
■ Unemployment Rate (%)
Average
Unemployment
Rate (3)
Marin
County
Population
City
Population
of County
2000 56,063 $16,766 $67,714 2.80% 247,289 22.67%
2001 56,534 16,900 68,135 3.50% 249,231 22.68%
2002 563691 169159 655558 4.90% 2505078 22.67%
2003 57,006 161341 66,620 4.90% 249,808 22.82%
2004 57,182 183115 745230 4.40% 2513330 22.75%
2005 57,224 19,485 79,688 3.90% 252,485 22.66%
2006 57,349 219266 86,719 3.50% 2535341 22.64%
2007 58,047 22,590 91,483 3.70% 255,982 22.68%
2008 58,235 n/a n/a 4.60% 257,406 22.62%
2009 58,363 n/a n/a TO% 258,618 22.57%
Source (1) State of California, Department of Finance -Demographic Research Unit. The data represents the City's
population as of January 1, of each year.
(2) Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce.
Data is Marin county -wide rate.
(3) Employment Development Department, Labor Market Information Division. Data represents Marin
county -wide rate only and is not seasonally adjusted.
127
CITY OF SAN RAFAEL
PRINCIPAL EMPLOYERS
FISCAL YEAR 200&2009
Number of
Employer Employees
Kaiser Permanente 2,267
Autodesk, Inc. 1,200
Golden Gate Bridge Highway & Transportation Disi 828
City of San Rafael 633
Dominican University of California 508
Fair Issac Corp. 350
YMCA 348
San Rafael City Elementary School District 335
San Rafael City High School District 250
Ghilotti Bros. Inc. 240
Totals 6,959
Percentage of
Total Employment
in San Rafael
8.15%
432%
2.98%
2.28%
1.83%
1.26%
1.25%
1.21%
0.90%
0.86%
25.03%
Total employment in the City of San Rafael as of October 2009 was 27,800
Solace: State of California, Employment Development Department, Labor Market Information Divis
Source: http://www.cajobmatch.com
Note: Data not available for ranking or total employment, or for nine years prior.
CITY OF SAN RAFAEL
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
450.00
400.00
350.00
300.00
W 250.00
w 200.00
150.00
100.00
50.00
0.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
■ General Government ■Public Safety
■ Public Works and Parks ❑ Community Development/Redevelopment
■ Culture and Recreation
Function
General Government
Public Safety
Public Works and Parks
Community Development/Redevelopment
Culture and Recreation
Total
Source: City of San Rafael
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
36.56
36.56
39.20
41.73
49.27
47.02
53.71
59.38
59.88
58.88
202.00
75.70
202.00
75.70
203.03
80.70
203.03
79.95
201.63
76.70
193.13
72.80
188.86
74.80
189.00
76.80
186.00
78.80
183.00
78.80
26.28
26.28
30.28
29.75
28.75
26.75
26.43
31.00
34.50
34.50
81.99
81.99
83.76
83.76
83.26
79.73
77.49
80.22
85.90
85.90
422.53 422.53 436.97 438.22 439.61 419.43 421.29 436.40 445.08 441.08
129
CITY OF SAN RAFAEL
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program
Public safety:
Fire:
Inspection permit issued
Police:
Police calls for service
Law violations:
Part I crimes
Physical arrests (adult and juvenile)
Traffic violations
Parking violations
Public works
Street resurfacing (miles)
Culture and recreation:
Recreation class participants
Library:
Total items borrowed (thousands)
Items in collection (thousands)
Wastewater
Residential connections
Commercial connections
Other connections
Average daily sewage treatment (millions of gallons)
Note: N/A denotes information not available.
2000 200I 2002 2003 2004
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
15,468
26,308
305946
n/a 7.16 n/a 1.20 5.70
6,000 6,000 6,000 7,000 7,000
121.96
122.71
121.85
128.12
118.24
315.20
318.72
336.57
338.60
332.33
6.976 6.976 6.976 6.976 6.976
130
2005 2006 2007
n/a
n/a
143
n/a
n/a
431480
n/a
n/a
23557
n/a
n/a
31809
n/a
n/a
53197
39,421
33,610
36,228
6.80
1.08
n/a
7,000
8,000
81000
121.81
123.12
124.46
299.30
333.15
359.41
6.976 6.976 6.976
2008 2009
217 196
433488 42,227
2,314 2,352
41182 4,487
9,241 5,777
42,481 445913
4.95 2.77
8,000 8,000
124,404
6.976 6.976
131
CITY OF SAN RAFAEL
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program
Public safety:
Fire stations
Police stations
Police Fleet
Public works
Miles of streets
Street lights
Parking District lights
Traffic Signals
Culture and recreation:
Community services:
City parks
City parks acreage
Playgrounds
City trails
Community gardens
Community centers
Senior centers
Sports centers
Performing arts centers
Swimming pools
Tennis courts
Basketball Courts
Baseball/softball diamonds
Soccer/football fields
Library:
City Libraries
Wastewater
Miles of sanitary sewers
Niunber of treatment plants
(1) Source: City of San Rafael
2000 2001 2002 2003 2004
6 6 6 6 6
1 1 1 1 1
165 165 171 171 172
4,167 41167 4,200 41200 4,333
86 86 85 85 85
19
19
19
19
19
41
41
41
41
41
13
13
13
13
13
15
15
15
15
15
2
2
2
2
2
4
4
4
4
4
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
1
1
1
1
10
10
10
10
10
5
5
5
5
5
5
5
5
5
5
0
2
2
2
2
171.32
175.82
176.90
178.40
179.15
42.30
49.30
51.40
53.50
57.60
1
1
1
1
1
132
zoos Zoo6 ZooI Zoos Zoo9
6
6
6
6
1
1
1
1
6
1
172
173
173
173
173
4,333
4,435
43435
4,435
4,435
85
89
89
89
89
19
19
19
20
20
41
41
41
42
42
13
13
13
14
14
15
15
20
20
20
2
1
1
1
1
4
4
4
4
4
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
1
1
1
1
10
10
10
10
10
5
5
5
5
5
5
5
5
5
5
2
2
2
2
2
1
1
1
1
2
179,15
179,15
179,15
179,15
179,15
57,60
57,60
57,60
57,60
57,60
1
1
1
1
1
133
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