HomeMy WebLinkAboutFY2009-10 CAFRCALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDING JUNE 30, 201 0
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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CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30,2010
Prepared by
FINANCE DEPARTMENT
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INTRODUCTORY
SECTION
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CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2010
I INTRODUCTORY SECTION I
TABLE OF CONTENTS
Table of Contents
Letter of Trallslnittal ............................................................................................................................................ i
Mission Statement .............................................................................................................................................. v
Cit)! Officials ..................................................................................................................................................... vi
Location Map .................................................................................................................................................... vii
Organization Chart .......................................................................................................................................... viii
I FINANCIAL SECTION I
Independent Auditor's Report on Basic Financial Statements .................................................................. 1
Management's Discussion and Analysis ........................................................................................................ 3
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets ...................................................................................................................... 17
Statement of Activities ....................................................................................................................... 18
Fund Financial Statements:
Major Governmental Funds:
Balance Sheet .................................................................................................................................. 22
Balance Sheet -Reconciliation of Governmental Fund Balances to
Net Assets of Governmental Activities ...................................................................................... 25
Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................ 26
Reconciliation of the Net Change in Fund Balances -Total Governmental
Funds with the Statement of Activities ...................................................................................... 28
Proprietary Funds:
Statement of Net Assets .................................................................................................................. 30
Statement of Revenues, Expenses, and Changes in Fund Net Assets ........................................... 3 1
Statement of Casll Flows ................................................................................................................ 32
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30,2010
Table of Contents
I FINANCIAL SECTION (Continued)
Notes to Basic Financial Statements ....................................................................................................... 33
Required Supplementary Information:
Schedules of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual -
Budgetary Basis
General Fund ................................................................................................................................... 68
Traffic and Housing Mitigation Special Revenue Fund ................................................................. 69
Gas Tax Special Revenue FUl1d ...................................................................................................... 70
Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual -
Budgetary Basis
Redevelopment Agency Capital Projects Fund .............................................................................. 73
Non-major Governmental Funds:
Combining Balance Sheet .................................................................................................................. 78
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balance ........................................................................................................................... 84
Budgeted Non-major Goven1ffient Funds:
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances -Budget and Actual ............................................................................. 90
Internal Service Funds:
Combining Statement of Net Assets ................................................................................................ 102
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets ........................... 104
Combining Statement of Cash Flows ............................................................................................... 106
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30,2010
Table of Contents
I STATISTICAL SECTION
Financial Trends:
Net Assets by Component -Last Eight Fiscal Years ............................................................................. 112
Changes in Net Assets -Last Eight Fiscal Years .................................................................................... 114
Fund Balances of Governmental Funds -Last Ten Fiscal Years ............................................................ 118
Changes in Fund Balance of Governmental Funds -Last Ten Fiscal Years ......................................... 120
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property -Last Nine Fiscal Years .......................... 122
Property Tax Rates -All Direct and Overlapping Governments-Last Ten Fiscal years ...................... 123
Principal Property Tax Payers -Current Year and Ten Years Ago ....................................................... 124
Property Tax Levies and Collections -Last Ten Fiscal Years ............................................................... 125
Debt Capacity:
Ratio of Outstanding Debt by Type -Last Ten Fiscal Years ................................................................. 126
COlnputation of Direct and Overlapping Debt. ....................................................................................... 127
Computation of Legal Bonded Debt Margin .......................................................................................... 128
Revenue Bond Coverage Parking Facility -Last Seven Fiscal Years ................................................... 129
Redevelopment Pledged Revenue Coverage -Last Ten Fiscal Years .................................................... 130
Demographic and Economic Information:
Demographic and Economic Statistics -Last Ten Fiscal Years ............................................................ 131
Principal Employers ................................................................................................................................ 132
Operating Information:
Full-Time Equivalent City Government Employees by Function
-Last Ten Fiscal Years ...................................................................................................................... 133
Operating Indicators by Function/Program -Last Ten Fiscal Years ..................................................... 134
Capital Asset Statistics by Function/Program -Last Ten Fiscal Years ................................................. 136
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CITY OF
JanualY 31,2011
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 Annual Financial Report (CAFR) of the City of San Rafael for the year ended June 30,
2010, is hereby sublnitted as n1andated 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 celtified public accountants audits this repoli.
Responsibility for both the data accuracy, and the completeness and fairness of the presentation, rests with
Inanagement. 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 indep~ndent celtified public accounting
firm, Maze and Associates Accountancy Corporation.
Further, the CAFR is prepared in accordance with procedures and policies set by the Govermnent 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. Introductol)' section, which is unaudited~ includes this letter of transmittal, an organizational chart and a
list of the City of San Rafaers elected and appointed officials.
2. Financial section includes the general-purpose financial statements, related footnote disclosures, and
the combining and individual fund and account group financial statements and schedules, as well as the
independent auditors I report.
3. Statistical section, which is unaudited, includes selected financial and demographic information,
presented 011 a lnulti-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, ComlTIunity 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 repOli. The San Rafael Sanitation District
is a discretely presented component unit of the City of San Rafael and is presented independent of City
financial infonnation. For a further explanation of these entities, refer to Footnote No.1 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
ll1ake 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. The 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 2010 was 58,822.
The City of San Rafael is located 17 miles north of San Francisco in Marin County. Protected by its
MeditelTanean 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 Cityls 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 countly.
Each year business merchants and the SRDA sponsor community events~ including the Classic Car Parade,
Falmers' Market, Winter Wonderland, Italian Street Painting Festival and the Parade of Lights. San Rafael
is home to Marin Countis cultural activities. Marin Center presents numerous ballets, concerts and
speaking engagements. The Falkirk Cultural Center provides art exhibits and children's programming.
ECONOMIC CONDITION
San Rafael is a regional employment center. The number of jobs within the City exceeds the number of
employed residents. Our diversified economic mix includes high-tech) financial, service based,
enteltainment and industrial businesses. Approximately 72 percent of workers in San Rafael work for
cOlnpanies, 10 percent work tor the government and 14 percent are self-en1ployed. The median incon1e for
San Rafael households is $67,789.
There may be slight economic improvement for the fiscal year 2010·2011. Sales tax trends are slightly
better than 2009, while property taxes are slightly lower. Job growth looks to get better in the coming
months. In 2010 more Marin homeowners have lost their houses to foreclosure than in 2009.
The econOlUY will grow slowly the rest of this year, and job gains will be limited. Major reductions to the
City's budget included layoffs, furloughs, deferring equipment replacements, deferring raises, and changing
service hours. These changes were needed to balance fiscal year 2009-2010 and are also built into fiscal
year 2010-2011 budgets. San Rafael will look ahead and plan for the next two years budget.
H
CAFR TRANSMITTAL LETTER
Demographic Data
A sampling of demographic information is provided to give the user an understanding of the character and
diversity that Inake San Rafael an exceptional place to live and 'work.
rzg Economic development organizations in San Rafael include the Redevelopnlent Agency, Business
Inlprovement District, Chamber of COlnmerce and the Marin County Economic Commission.
129 San Rafael's population rate grew at about 0.5% per annunl from 2001 (56,534) to 2010 (58,822).
129 Unemployment rates for 2010 were 9.9% (2009 was 7.6%) for the City and 8.30/0 countywide.
f2S] Countywide office vacancy rates decreased to 21.1 % in 2010, from 24.5% in 2009.
rzg Median office rents in Central San Rafael were $2.75 per square foot; in North San Rafael the rate
averaged $2.45.
I3J Median industrial space rents averaged $0.95 per square foot for San Rafael.
I3J Major shopping areas, as measured in available retail square footage, include the Downtown corridor
(938,000 aggregate), the Mall at NOlthgate (725,000), Montecito Center (130,000) and Northgate One
(113,900).
129 Total Marin County land acreage of 388,712 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.
i2Sl Several hotels and motels support tourism activity, led by 235 room facilities for both the Embassy
Suites and Four Points Sheraton. Citywide, the total number of hotel roonlS is 803.
[2S] Home buying and apartment rentals continue to be a challenge both in San Rafael and Marin County.
Mean household incomes in San Rafael are $67,789 as of 2009, but less than 30% can afford to buy a
median priced home. Rents for one bedroom apartments range from $800-$ t900, while two bedroom
aparttnents go for $1,150 to $2,350.
MAJOR INITIATIVES
Current Year Projects., Accomplishments and Service Efforts
The City Council adopted a onewyear budget in July of2010 for the 2010-2011 fiscal year.
These objectives support Departlnent goals, the City CounciPs five-year goals, and our Mission Statement.
Progress reports are provided to the City Council and community at six-month intelvals during the two-
year budget.
The City issued the Tax and Revenue Anticipation Notes (TRANS) to bridge the gap between its regular
flow of operating expenditures and the receipts of its semi-annual property taxes.
The City issued the 2010 Taxable Pension Obligation Bonds. The bonds are being issued to refund a
portion of the obligations of the City to the Marin County Employees' Retirement Association. The City is
not obligated to levy or pledge taxes to Inake payments on the Bonds.
San Rafael's fiscal practices are codified in the City's Financial Management Policies. The Policies were
adopted to Inanage current and long-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 Tealn is responsible for establishing and maintaining internal controls to ensure
that the City's assets are adequately protected from loss, theft or nlisuse. In addition, managenlent controls
should ensure that proper accounting data is collected so as to prepare reports in confOlmance with
generally accepted accolmting principles.
Internal accolmting controls are designed to provide reasonable, but not absolute, assurance regal'ding: (1)
the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of
financial records for preparing financial statenlents 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 aSSlU'ance 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 nlajor function. Budget control is
accomplished at the functional or division level within each fund. This budget creates a comprehensive
management and fiscal systenl 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 accoll1plishing 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 finn. This year, the accounting firm
of Maze and Associates Accountancy Corporation perfol111ed the audit. The audit requirement has been
Inet and the auditors' opinion has been included in this report.
Acknowledgment -The preparation of this docUlnent was accomplished through the diligent, dedicated
efforts of the Finance Department's staft: Appreciation goes to Van Bach, Accolmting Supervisor, Helen
Yu, Accountant, and Carl Tregner, Accountant. All of these top-notch employees were instrumental in
coordinating the annual audit in a titnely and professional manner. Also, Sylvia Gonzalez, the City
Manager's Administrative Assistant, helped assenlble the City's Comprehensive Annual Financial RepOlt.
Lastly, staff support by the Mayor and City COlmcil Members, with an emphasis on community focus and
customer service, has allowed the Finance Depmtment to bring professional level financial leadership and
management home to San Rafael. Staff expects to continue producing high quality products, including
award winning annual finmlcial repOlts. The City Council's opelmess to change and support in plaI1ning
and conducting the operations of the City in a responsible, progressive manner elnpowers staff to achieve
impOltant goals through a commitment to excellence, professionalism and community interest.
iv
CUldy Mosser
Finance Director
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
Marc Levine, Council Member
v
City Officials
City Council
Albert J. Boro, Mayor
Greg Brockbank, Council Member
Damon Connolly, Council Member
Barbara Heller, Council Member
Marc B. Levine, Council Member
Elected Officials
Rob Epstein, City Attorney
Esther Beirne, City Clerk
Management Team
Ken Nordhoff, City Manager
Jim Schutz, Assistant City Manager
Nancy Mackle, Deputy City Manager
Bob Brown, Community Development Director
David Dodd, Library Director
Chris Gray, Fire Chief
Nancy Mackle, Economic Development Director
Carlene McCart, Community Services Director
Cindy Mosser, Finance Director
Parviz Mokhtari, Interim Public Works Director
Matt Odetto, Police Chief
Doris Toy, District Manager/Engineer-SRSD
VI
Sant ~ Rosa o
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Greater San Francisco
Bay Ar ea
LOCATION
vii
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, Concord
Hayward
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. Fremont o
San :J ose . 0
City of San Rafael
Organizational Chart
Electorate
I I
City
Mayor and
City City Council
Attorney Clerk
I
~.
City Boards and
Manager Commissions
Assistant
City Manager
Deputy
City Manager
I I I I I I
Management
Services Economic Police Fire Community Community Public Library Finance
(IT, HR , Parking , Development Department Department Services Development Works Services Departmen t
Emergency Services)
FINANCIAL SECTION
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MAZE&
ASSOCIATES
INDEPENDENT AUDITOR'S REPORT
ON BASIC FINANCIAL STATEMENTS
To the Honorable Mayor and Members of the City Council
City of San Rafael, Califonlia
ACCOUNTANCY CORPORATION
3478 Buskirk Ave. -Suite 215
Pleasant Hill, California 94523
(925) 930-0902 • FAX (925) 930-0135
maze@mazeassociates.com
www.mazeassociates.com
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of San Rafael as of and for the year
ended June 30, 2010, which collectively comprise the City's basic financial statelnents as listed in the
Table of Contents. These financial statements are the responsibility of the City's managelnent. Our
responsibility is to express an opinion on these financial statelnents based on our audit. We did not audit
the component unit frnancial. statements of the San Rafael Sanitation District (District), which represents
14% and 13% of the assets and revenues and 3% and 9% of liabilities and expenses of the reporting entity,
respectively. These component unit frnancial 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
fmancial 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 fmancial statements referred to above present fairly, in all material respects, the
fmancial position of the governmental activities, the business-type activities, each Inajor fund, and the
aggregate remaining fund information of the City of San Rafael as of June 30, 2010, and the respective
changes in the fmancial 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 29,
2010, 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 frnancial 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.
A Professional Corporation
1
As discussed in note 1M to the financial statements, the City transferred the general liability and workers'
compensation claims payable and the corresponding cash reserves from the Liability Insurance and
Workers' Compensation Internal Service Funds to the General Fund. As a result, the beginning fund
balance of the General Fund was increased by $3,716,971. There was no effect on the beginning net assets
balances of the Liability Insurance Internal Service Fund, Workers' Compensation Internal Service Fund,
nor governmental-type activities due to the above transfers.
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
of San Rafael. This information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
The introductory section 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 thelll.
~)t! ~
October 29,2010
2
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30,2010
This analysis of the City of San RafaeY s (City) financial performance provides an overview of the City's financial
activities for the fiscal year ended June 30, 2010. 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, 2010 by $208.0
million.
Expense Activities -During the fiscal year the City's total revenues ($83.7 million) are less than expenses
for governmental and business-type activities ($92.6 million) by $8.9 million. Excluding Depreciation
(non-cash expense of $7.9 million), collected revenues were $1.0 million below expenses.
Changes in Net Assets -The City's total net assets decreased by $8.9 million in fiscal year 2010. Net assets
of governmental activities decreased by $8.7 million, while net assets of the business type activities
decreased by $0.2 million.
Fund Highlights:
Governmental Funds -Fund Balances-As of the close of fiscal year 2010, the City's governmental
funds reported combined ending fund balances of $35.5 million, an increase of $4.0 million from the
prior year. Of this total amount, $17.1 million represents reserved fund balances and $5.0 million is
designated.
General Fund -The fund balance of the general fund on June 30, 2010 was $6.8 million, an increase of
$2.9 million from the prior year. $1.8 million was held in reserve, and $5.0 million is designated for
contingent liabilities and to meet our 10% reserve requirement as defined by the City's Financial
Management Policies.
Long-Term Debt:
The City's total outstanding debt decreased by $1.4 million (3.0 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.
3
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2010
Government-Wide Financial Statements
The Government-Wide Financial Statements present the financial picture of the City and provide readers
with a broad view of the City's finances. These statements present governmental activities and business-
type activities separately and include all assets of the City (including infrastructure) as well as all liabilities
(including long-term debt). Additionally, certain interfund receivables, payables and other interfund
activity have been eliminated as prescribed by Government Accounting Standards Board (GASB)
Statement No. 34.
The Statement of Net Assets and the Statement of Activities and Changes in Net Assets report information about the
City as a whole and about its activities. These statements include all assets and liabilities of the City using the
accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the
current year's revenues and expenses are taken into account, regardless of when cash is received or paid.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases in net assets may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The Statement of Activities and Changes in Net Assets presents information showing how the City's net assets
changed during the year. All changes in net assets are reported as soon as the underlying event giving rise to the
change occurs, regardless of timing of related cash flows.
In the Statement of Net Assets and the Statement of Activities and Changes in Net Assets, we separate the City
activities as follows:
Governmental Activities-Most of the City's basic services are reported in this category, including Public Safety,
Public Works and Parks, Community Development and 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 City's Parking Services program is reported as a business-type activity.
Discretely Presented Component Units -The government-wide financial statements include not only the City itself
(known as the primary government), but also a legally separate entity, the San Rafael Sanitation District for
which the City is financially accountable. Financial information for the San Rafael Sanitation District is reported
separately from the financial information presented for the primary government itself.
The government-wide financial statements can be found on pages 15 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.
4
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30,2010
The fund financial statements provide detail information about each of the City's most significant funds, called
Major Funds. The concept of Major Funds, and the determination of which are major funds, was established by
GASB Statement 34 and replaces the concept of combining like funds and presenting them in total. Instead, each
Major Fund is presented individually, with all Non-major Funds summarized and presented in a single column.
Further detail on the Non-major funds is presented on pages 75 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 21
through 28 of this report. Individual fund data for each of these non-major governmental funds is
provided in the form of combining statements on pages 75 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 29 through 32 of this report.
5
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 3D, 2010
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 33
through 64 of this report.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information. One section includes budgetary comparison statements for the major funds
(general, redevelopment agency capital project, gas tax, and traffic and housing mitigation). The other section is
a schedule of funding progress for the Marin County Employees' Retirement System. All budgeted positions that
are filled by either full-time or permanent part-time employees (working seventy-five percent of full time
equivalent) are eligible to participate in this system. Required supplementary information can be found on pages
65 through 70 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 $208.0 million, which is a decrease of $8.9 million from the prior year.
The following is the condensed Statement of Net Assets for the fiscal years ended June 30, 2009 and 2010.
City of San Rafael
Statements of Net Assets
June 30,
(Amounts in Millions)
Governmental Activities Increase Business-Type Activities Increase
2010 2009 (Decrease) 2010 2009 (Decrease)
Assets:
Current assets $ 40.4 $ 40.0 $ 0.4 $ 2.4 $ 2.3 $ 0.1
Capital assets, net 208.2 214.4 (6.2) 17.8 18.2 (0.4)
Total assets 248.6 254.4 (5.8) 20.2 20.5 (0.3)
Liabilities:
Current liabilities 8.9 9.1 (0.2) 0.4 0.3 0.1
Long-term liabilities 44.7 41.5 3.2 6.8 7.0 (0.2)
Total liabilities 53.6 50.6 3.0 7.2 7.3 (0.1)
Net Assets:
Invested in capital assets,
net of related debt 173.5 178.7 (5.2) 11.0 11.3 (0.3)
Restricted 26.2 25.7 0.5
Unrestricted (4.6) (0.7) (3.9) 2.0 1.9 0.1
Total net assets $ 195.1 $ 203.7 $ (8.6) $ 13.0 $ 13.2 $ (0.2)
6
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30,2010
At June 30, 2010, the largest portion of net assets (88.7 percent) consists of the City's invesbnent 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 2008-2009 to 2009-2010 is largely attributable to a netting
of capital assets acquisition against depreciation expense for the year. Total depreciation for this current year
was $7.9 million, while capital asset acquisition totaled $1.9 million, leaving a net decrease of $6.0 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 (12.6 percent) is subject to restrictions
imposed by external parties and their use is determined by those restrictions and agreements.
For the year ended June 30, 2010, the City reported positive balances of net assets in capital and restricted net
assets for governmental activities. Business-type activities reported positive net assets in capital and unrestricted
net assets.
$250.00
$200.00
~ $150.00
.2 $100.00
~ $50.00
$0.00
Net Assets
III II I
($50.00) +-In-~-s-m-e-nt-in-C-a-p-i~-IA-s-~-t-s,~--------------~----------------~--------------~
net of related debt Restricted Unrestricted Total Net Assets
7
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2010
Statement of Activities
The following is the condensed Statement of Activities and Changes in Net Assets for the fiscal years ended June
30,2010 and 2009:
(Amounts in Millions)
Governmental Activities Increase Business-Type Activities Increase
2010 2009 (Decrease) 2010 2009 (Decrease)
Revenues:
Prograrnrevenues $ 25.8 $ 31.4 $ (5.6) $ 4.2 $ 4.5 $ (0.3)
General revenues 53.6 57.1 (3.5) 0.1 (0.1)
Total revenues 79.4 88.5 (9.1) 4.2 4.6 (0.4)
Expenses 88.6 93.0 (4.4) 4.0 3.6 0.4
Change in net assets
before transfers (9.2) (4.5) (4.7) 0.2 1.0 (0.8)
Transfers 0.5 0.4 $ 0.1 (0.5) (0.4) $ (0.1)
Net Assets:
Beginning, as restated 203.7 207.8 13.2 12.6
Ending $ 195.0 $ 203.7 $ 12.9 $ 13.2
Governmental Activities:
The City's governmental activities decreased net assets by $8.7 million, which represents a 4.0% decrease from
last year. Key elements of this change were as follows:
Revenue highlights:
• Property Tax revenues decreased by $0.3 million or 1.0 percent in 2010.
• Sales tax decreased by $2.9 million or approximately 13.3 percent compared to fiscal year 2009.
• Paramedic tax increased by $279,000 or 9 percent.
• Motor vehicles revenues decreased by $26,000 or 13.4 percent.
• Transient Occupancy Tax revenues decreased by $121,000 or 7 percent.
.. Investment earnings decreased by $416,000 or 58 percent.
8
CITY OF SAN RAFAEL
Management's Discussion and Analysis
!!is~arre~r Ef!.tl~d JU11:e ~~,~91~
Governmental Activities -Revenues:
25.00/0
14.80/0
Governmental Activities
Revenues By Source
June 30, 2010
Property Taxes
Sales Taxes
DOther Taxes
DCharges for Services
• Miscellaneous
DGrants and Contributions
.1 nvestment Earnings
Governmental Activities -Expenses:
Governmental Activities
Expenses by Function
June 30,2010
2.5% 9.3% General Government
Public Safety
DPublic Works and Parks
DCom munity Development
.Culture and Recreation
D Debt Service
Total expenses for governmental activities were $86.4 million (not including interest on long-term debt of $2.2
million). Program revenues offset total expenditures as follows:
• Those who directly benefited from programs contributed $20.0 million in charges for services.
• A total of $2.1 million in capital projects was funded by outside agencies through capital grants and
contributions.
9
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30,2010
As a result, total expenses that were funded by tax revenues; investment income and other general revenues
were $64.3 million.
Functional expenses for the years ended June 30, 2010 were as follows:
Expenses by Function
For the fiscal year ended June 30,2010
Function Amount Percent of Total
General G overnm ent $ 8,396,759 9.5%
Public Safety 42,752,033 48.2%
Public works and parks 17,401,923 19.6%
Co m m unity dev elo pm en t 6,738,873 7.6%
Culture and recreation 11,139,225 12.6%
In t ere s ton Deb t 2,200,024 2.5%
Total Exp ense s $ 88,628,837 100.0 %
Business-Type Activities:
Net assets for business-type activities were $13.0 million, a $0.2 million decrease from the prior fiscal year.
Parking services is the City's only business type activity and income is derived from program revenues of $4.2
million. Program revenues include parking meter coin at $1.4 million, and parking garage hourly parking at $0.7
million. Revenues also include parking and non-vehicle code fines totaling $2.1 million. Total expenses for
parking services were $4.0 million during fiscal year 2009-2010.
FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS
Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the City's financial capacity. In
particular, unreserved fund balance may serve as a useful measure of a government's net resources available for
spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances
of $35.5 million. Approximately, $13.3 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 iridicate that it is not available for spending because it has already been legally committed.
General Fund -The General Fund is the primary operating fund of the city.
At the end of the current fiscal year, unreserved fund balance of the general fund was $5.0 million, while total
fund balance reached $6.8 million. $5.0 million is designated for contingent liabilities and emergency cash flow
to meet our 10% reserve requirement as defined by the City's Financial Management Policies. As a measure of
the general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to
total fund expenditures. Unreserved fund balance represents 9 percent of total general fund expenditures
including transfers out, while total fund balance represents 12 percent of that same amount.
10
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2010
The available fund balance in the City's General Fund increased by $2.9 million compared to the 2009 fiscal year.
This increase resulted from:
• City transferred the general liability and worker's compensation claims payable and corresponding cash
reserves from the Liability Insurance and Workers' Compensation Internal Service Funds to the General
Fund. The transfer was due to the fact that these claim liabilities had been settled mostly with resources
from the General Fund. As a result of the transfer, the beginning fund balance of the General fund was
increased by $3.7 million.
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 2010, the reserved fund balance was $5.9
million, a decrease of $0.2 million from the prior year. A total of $5.5 million in fund balance as of June 30,2010
was reserved for future capital project and housing programs.
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail. As discussed in the business-type activities previously, the City's net assets
decreased by $0.2 million as a result of operations in the Parking Services fund.
GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended budget totaled $56.1 million, including a decrease of $2.3 million in appropriations to the
originally adopted budget.
During the year, both revenues and expenditures did not exceed the final budgetary estimate. Overall,
expenditures exceeded revenues by $1.6 million. The transfers in exceeded the transfers out by $0.8 million.
11
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30,2010
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, 2010
amounts to $226.0 million, net of accumulated depreciation of $121.1 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 $1.9 million, offset by accumulated depreciation and
retirements of $8.5 million, thereby equaling a net decrease of $6.6 million.
Major capital asset additions during the current fiscal included work in process Third/Union Intersection
Improvement, Northgate Gap Closure project, Terra Linda North San Rafael Improvement, and Corporate
Center Storm Water Pump Station Renovation. The City also purchased four vehicles, which included three PD
motorcycles and one PD swat trailer.
Capital Projects
)Po Medway / Canal Intersection Improvement project was completed in 2010
)Po Third/Union Intersection Improvement project was completed in 2010
Additional information on the City's capital assets can be found in Note 5 on pages 47 through 48 of this report.
Debt Administration
As of June 30, 2010, 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 2010 and 2009 were as follows:
Revenue Bonds $
Special Assessment Bonds
Tax Allocation Bonds
Court Fine Promissory note
Redevelopment note
Capitalized Leases
Compensated Absences
Total Outstanding Debt $
Governmental
Activities
Business-Type
Activities
2010 2009 2010 2009
35.4
0.4
0.2
0.1
4.3
40.4
$ 0.5 $
35.8
0.6
0.2
0.2
6.8
4.5 0.2
$
----
$ 41.8 $ 7.0 $
7.0 $
0.2
7.2 $ ---------------
12
Total
2010
6.8 $
35.4
0.4
0.2
0.1
4.5
47.4 $
2009
7.5
35.8
0.6
0.2
0.2
4.7
49.0 ----
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30,2010
ECONOMIC CLIMATE AND NEXT YEAR'S BUDGET
Many factors were considered in preparing the City's budget for fiscal year 2010-2011. 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 $290,000.
o Non-Safety Employee Furloughs of 5 percent of approximately $500,000 reduction in the General Fund.
o Reduction of force through 12 Layoffs and an elimination of vacant position for a totaling saving of $1.3
million.
o Partial year deferrals for the Fire Association scheduled salary increase.
o Issuing the Tax and Revenue Anticipation Notes (TRANS) for $6,080,000 to bridge the gap between the
City's regular flow of operating expenditures and the receipt of its semi-annual property taxes.
o Issuing the Taxable Pension Obligation Bonds for $4,490,000 to refund a portion of the obligations of the
City to the Marin County Employees' Retirement Association.
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 fifteen percent. The credit crisis instigated a slow down in the sale of property causing a 47 %
reduction in the City's property transfer tax.
The City's second largest tax generator is property tax. The City will experience a net taxable value decrease of
1.3% for the 2010-2011 tax roll.
The City's largest expenditure by far relates to personnel costs. Salaries and benefits are tied to the labor
agreements with each bargaining group.
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 fmancial 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-tenn 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 fmancial position of all the City's Govermllental Activities in a
single column, and the fmancial position of all the City's Business-Type Activities in a single column; these
columns are followed by a total column which presents the fmancial 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 fmancial statements,
which reflect only current assets, current liabilities, available revenues and measurable expenditures.
The Stateillent of Activities presents the City's expenses first, listed by program, and follows these with the
expenses of its business-type activities. Program revenues-that is, revenues which are generated directly
by these programs-are then deducted from program expenses to arrive at the net expense of each
governmental and business-type program. The City's general revenues are then listed in the Governmental
Activities or Business-type Activities column, as appropriate, and the Change in Net Assets is computed and
reconciled with the Statement of Net Assets.
Both these Statements include the financial activities of the City, the City of San Rafael Redevelopment
Agency, and the San Rafael Joint Powers Financing Authority which are legally separate but are
component units of the City because they are controlled by the City, which is financially accountable for
their activities. The balances and the activities of the discretely presented component units of the San
Rafael Sanitation District are included in these statements as separate columns.
15
This Page Left Intentionally Blank
ASSETS
CITY OF SAN RAFAEL
STATEMENT OF NET ASSETS
JUNE 30,2010
Primary Government
Governmental Business-Type
Activities Activities
Cash and investments available for operations (Note 2) $30,243,023 $2,329,531
Restricted cash and investments (Note 2) 472,566
Receivables:
Accounts 2,766,533 54,684
Taxes 3,714,557
Grants 2,045,488
Interest 71,238
Loans (Note 4) 956,570
Internal balances (Note 3) (11,578) 11,578
Prepaid expenses and other 155,440 5,025
Capital assets (Note 5):
Nondepreciable 84,178,516 8,620,853
Depreciable, net 124,040,673 9,134,972
Total Assets 248,633,026 20,156,643
LIABILITIES
Accounts payable 2,450,006 115,606
Deposits payable 31,451
Interest payable 315,920 80,285
Developer bonds payable 346,766
Arbitrage payable 25,127
Unearned revenue 244,419
Due to other agency
Claims payable (Note 13):
Due in one year 2,200,000
Due in more than one year 1,398,587
Compensated absences (Note lJ):
Due in one year 726,403 15,310
Due in more than one year 3,550,579 172,263
Long-term debt (Note 6):
Due in one year 2,531,103 175,000
Due in more than one year 33,492,543 6,630,000
Net OPEB liability (Note 11) 6,265,000
Total Liabilities 53,577,904 7,188,464
NET ASSETS (Note 8):
Invested in capital assets, net of related debt 173,536,144 10,950,825
Restricted for:
Special revenue projects 13,520,130
Capital projects 3,630,528
Debt service 2,245,163
Redevelopment projects 6,754,433
Total Restricted Net Assets 26,150,254
Unrestricted (4,631,276) 2,017,354
Total Net Assets $195,055,122 $12,968,179
See accompanying notes to financial statements
17
Component
Unit
San Rafael
Sanitation
Total District
$32,572,554 $14,208,051
472,566 472,367
2,821,217 12,956
3,714,557
2,045,488
71,238 651
956,570
160,465 217,733
92,799,369 530,686
133,175,645 27,847,036
268,789,669 43,289,480
2,565,612 752,188
31,451
396,205 25,117
346,766
25,127
244,419
2,200,000
1,398,587
741,713
3,722,842
2,706,103 440,000
40,122,543 909,701
6,265,000
60,766,368 2,127,006
184,486,969 27,037,027
13,520,130
3,630,528
2,245,163 447,901
6,754,433
26,150,254 447,901
(2,613,922) 13,677,546
$208,023,301 $41,162,474
CITY OF SAN RAFAEL
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30,2010
Functions/Programs
Primary Government
Governmental Activities:
General government
Public safety
Public works and parks
Community development / redevelopment
Culture and recreation
Interest on long-term debt
Total Governmental Activities
Business-type Activities
Parking services
Total Business-type Activities
Total Primary Government
Component Unit
San Rafael Sanitation District
Expenses
$8,396,759
42,752,033
17,401,923
6,738,873
11,139,225
2,200,024
88,628,837
4,016,198
4,016,198
$92,645,035
$9,087,354
General revenues:
Taxes:
Property
Sales
Paramedic
Charges for
Services
$1,665,460
6,308,912
3,916,874
2,830,179
5,280,458
20,001,883
4,244,404
4,244,404
$24,246,287
$11,559,549
Motor vehicles
Transient occupancy
Franchises
Business licenses
Other
Investment earnings
Miscellaneous
Aid from other governmental agencies
G~nons~eofc~it~a~ct
Transfers
Program Revenues
Operating
Grants and
Contributions
$42,357
667,688
1,981,929
1,029,081
3,721,055
$3,721,055
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
18
Capital
Grants and
Contributions
$1,347,532
769,374
2,116,906
$2,116,906
Net (Expenses) Revenues and Changes in Net Assets
Component
Primary Government Unit
San Rafael
Governmental Business-Type Sanitation
Activities Activities Total District
($6,688,942) ($6,688,942)
(35,775,433) (35,775,433)
(10,155,588) (10,155,588)
(3,139,320) (3,139,320)
(4,829,686) ( 4,829,686)
(2,200,024) (2,200,024)
(62,788,993) (62,788,993)
$228,206 228,206
228,206 228,206
(62,788,993) 228,206 (62,560,787)
$2,472,195
21,684,131 21,684,131 823,187
19,055,124 19,055,124
3,489,494 3,489,494
171,518 171,518
1,558,243 1,558,243
2,868,332 2,868,332
2,317,664 2,317,664
1,411,583 1,411,583
302,180 17,678 319,858 93,274
541,390 541,390
415,391
221,791 221,791
458,300 (458,300)
54,079,750 (440,622) 53,639,128 1,331,852
(8,709,243) (212,416) (8,921,659) 3,804,047
203,764,365 13,180,595 216,944,960 37,358,427
$195,055,122 $12,968,179 $208,023,301 $41,162,474
19
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FUND FINANCIAL STATEMENTS
Major funds are defmed generally as having significant activities or balances in the current year.
The funds described below were detennined to be Major Funds by the City in fiscal 2010. Individual
non-major funds may be found in the Supplemental section.
GENERAL FUND
Established to accounts for all fmancial resources and transactions except those required to be accounted for
in other funds.
TRAFFIC AND HOUSING MITIGATION FUND
Established to maintain a long-tenn 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
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2010
Traffic and
Housing
General Mitigation Gas Tax
Cash and investments available for operations (Note 2) $3,971,946 $8,781,150 $896,459
Restricted cash and investments (Note 2) 75,633
Receivables:
Accounts 177,106 16,333
Taxes 3,553,167 93,454
Grants 1,181,624
Interest 65,542
Loans (Note 4) 583,300 65,715
Due from other funds (Note 3A) 307,723
Prepaid expenses 28,214
Total Assets $8,454,908 $9,154,588 $2,187,870
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $1,301,396 $136,430
Deposits payable 31,451
Developer bonds payable 320,266
Arbitrage payable
Due to other funds (Note 3A)
Deferred revenue
Total Liabilities 1,653,113 136,430
Fund Balances (Note 8):
Reserved for:
Encumbrances 132,507 128,683
Petty cash 3,645
Project development 576,995
Loans receivable 583,300 $65,715
Prepaid expense 28,214
Debt service
Court fine audit 363,328
Assessment districts/open space 75,633
Improvement projects
Traffic and housing 9,088,873
Unreserved, designated:
Emergency and cash flow 1,439,586
Contingent liabilities 3,598,587
Unreserved, undesignated
Special Revenue Funds 1,922,757
Capital Projects Funds
Debt Service Funds
Total Fund Balances 6,801,795 9,154,588 2,051,440
Total Liabilities and Fund Balances $8,454,908 $9,154,588 $2,187,870
See accompanying notes to basic financial statements
22
Redevelopment
Agency
Capital
Projects
$6,209,353
279,001
21,900
3,276
26,624
5,663
307,555
$6,853,372
$48,812
25,000
25,127
98,939
307,555
3,022,911
2,526,868
897,099
6,754,433
$6,853,372
Other Total
Governmental Governmental
Funds Funds
$9,665,909 $29,524,817
117,932 472,566
1,497,511 1,712,850
64,660 3,714,557
837,240 2,045,488
33 71,238
956,570
60,226 367,949
1,985 30,199
$12,245,496 $38,896,234
$933,712 $2,420,350
31,451
1,500 346,766
25,127
367,949 367,949
244,419 244,419
1,547,580 3,436,062
261,190
3,645
576,995
956,570
1,985 30,199
210,133 210,133
363,328
75,633
3,022,911
11,615,741
1,439,586
3,598,587
6,855,270 8,778,027
3,630,528 4,527,627
10,697,916 35,460,172
$12,245,496 $38,896,234
23
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET -RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET ASSETS OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2010
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.
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
Claims payable
. Net assets of governmental activities
See accompanying notes to financial statements
25
$35,460,172
208,219,189
1,855,896
(315,920)
(36,023,646)
(4,276,982)
(6,265,000)
(3,598,587)
$195,055,122
CITY OF SAN RAP AEL
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2010 .
Traffic and
Housing
General Mitigation
REVENUES
Taxes and special assessments $39,717,752
Licenses and permits 1,515,069
Fines and forfeitures 787,411
Use of money and properties 155,196 $69,445
Intergovernmental 6,736,930
Charges for services 1,936,405 21,407
Other revenue 197,843 29,836
Total Revenues 51,046,606 120,688
EXPENDITURES
Current:
General government 6,701,085
Public safety 32,218,288
Public works and parks 7,678,081 65,159
Community development I redevelopment 3,100,343
Culture and recreation 2,316,695
Capi,tal outlay 178,887 886,311
Capital improvement I special projects 268,801
Debt service:
Principal (Note 6) 230,772
Interest and fiscal charges
Total Expenditures 52,692,952 951,470
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,646,346) (830,782)
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital asset
Bond issuance (Note 6)
Payment to refunded bonds (Note 6)
Bond premiums (Note 6)
Transfers in (Note 3B) 3,487,383
Transfers out (Note 3B) (2,652,443)
Total Other Financing Sources (Uses) 834,940
Net Change in Fund Balances (811,406) (830,782)
FUND BALANCES, BEGINNING OF YEAR, AS ADmSTED (Note 1M) 7,6l3,201 9,985,370
FUND BALANCES, END OF YEAR $6,801,795 $9,154,588
See accompanying notes to financial statements
26
Redevelopment
Agency
Capital
Gas Tax Projects
$953,833
$9,835 67,161
2,855,978 746,874
672,654 16,177
83,796 67,216
3,622,263 1,851,261
31,350
18,662 105,922
1,298,251
3,559
1,735,342 396,999
1,757,563 1,832,522
1,864,700 18,739
221,791
1,524,864
(2,205,552)
(2,205,552) 1,746,655
(340,852) 1,765,394
2,392,292 4,989,039
$2,051,440 $6,754,433
Other Total
Governmental Governmental
Funds Funds
$7,006,956 $47,678,541
$3,750 1,518,819
787,411
132,237 433,874
2,661,921 13,001,703
13,140,682 15,787,325
338,069 716,760
23,283,615 79,924,433
1,264,632 7,997,067
7,355,803 39,574,091
2,863,845 10,731,669
4,398,594
7,288,989 9,605,684
821,802 1,890,559
1,035,466 3,436,608
2,573,486 2,804,258
1,979,372 1,979,372
25,183,395 82,417,902
(1,899,780) (2,493,469)
221,791
14,660,000 14,660,000
(14,315,000) (14,315,000)
1,038,185 1,038,185
2,482,313 7,494,560
(1,553,155) (6,411,150)
2,312,343 2,688,386
412,563 194,917
10,285,353 35,265,255
$10,697,916 $35,460,172
27
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, 2010
NET CHANGE IN FUND BALANCES -TOTAL GOVERNMENTAL FUNDS
Amounts reported for Governmental Activities in the Statement of Activities are
different because of the following:
Capital Assets Transactions
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets
is capitalized and allocated over their estimated useful lives and reported as depreciation expense.
Expenditures for capital assets are added back to fund balance.
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
Bond proceeds provide current financial resources to governmental funds, but
issuing debt increases long-term liabilities in the Statement of Net Assets.
Repayment of bond principal is an expenditure in the governmental funds, but
in the Statement of Net Assets the repayment reduces long-term liabilities.
Principal debt service payments are added back to fund balance
Bond interest accretion is deducted from fund balance
Bond issuance is deducted from the fund balance
Payment to refunded bonds is added back to 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 governmental funds (net change):
Deferred bond premiums
Interest payable
Compensated absences
Deferred revenue
Net OPEB liability
Claims payable
Allocation of Internal Service Fund Activities
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The net revenue of the internal service fund is reported with governmental activities.
Change in Net Assets of Governmental Activities
See accompanying notes to fmancial statements
28
$194,917
1,900,428
(462,800)
(7,594,373)
2,804,258
(234,111 )
(14,660,000)
14,315,000
(1,038,185)
13,459
225,945
(720,250)
(4,232,000)
118,384
660,085
($8,709,243)
MAJORPROPRrnTARYFUNDS
Proprietary funds account for City operations fmanced 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 fund as a major proprietary fund.
P~GSERVICESFUND
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.
29
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
JUNE 30,2010
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)
Compensated absences, due in one year (Note lJ)
Long-term debt, due in one year (Note 6)
Total Current Liabilities
Noncurrent Liabilities:
Compensated absences (Note lJ)
Long-term 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 business-type activities in the
Statement of Net Assets are different because certain internal
service fund assets and liabilities are included with business-type
activities.
Net assets business-type activities
See accompanying notes to financial statements
30
Business-type
Activities -
Enterprise
Funds
Parking
Services
$2,329,531
54,684
5,025
2,389,240
8,620,853
9,134,972
17,755,825
20,145,065
115,606
80,285
15,310
175,000
386,201
172,263
6,630,000
6,802,263
7,188,464
10,950,825
2,005,776
12,956,601
11,578
$12,968,179
Governmental
Activities
Internal
Service Funds
$718,206
1,053,683
845,684
125,241
2,742,814
2,742,814
29,656
845,684
875,340
875,340
1,867,474
$1,867,474
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2010
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
NONOPERATING REVENUES (EXPENSES)
Investment income
Interest expense
Total Nonoperating Revenues (Expenses)
Income Before Transfers
Transfers in (Note 3 B)
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 business-type activities in the Statement
of Activities are different because the portion of the net income of certain
internal service funds 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
31
Business-type
Activities -
Enterprise
Funds
Parking
Services
$2,177,414
2,066,990
4,244,404
2,201,739
212,156
335,909
935,069
3,684,873
559,531
17,678
(325,285)
(307,607)
251,924
(458,300)
(206,376)
13,162,977
12,956,601
(206,376)
(6,040)
($212,416)
Governmental
Activities
Internal
Service Funds
$5,489,286
1,832,187
7,321,473
5,161,152
82,827
833,659
6,077,638
1,243,835
35,320
35,320
1,279,155
529,890
(1,155,000)
654,045
1,213,429
$1,867,474
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2010
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 NON CAPITAL
FINANCING ACTIVITIES
Interfund payments
Cash Flows from Noncapital
Financing Activities
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Proceeds received from sale of capital assets
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 INCREASE IN CASH AND CASH EQUIVALENTS
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
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation
Net change in assets and liabilities:
Accounts receivable
Prep aids and deposits
Accounts payable
Compensated absence obligations
Claims payable
Net Cash Provided by (Used in) Operating Activities
Business-type
Activities -
Enterprise
Funds
Parking
Services
$2,172,389
(1,145,225)
(2,179,133)
2,104,076
952,107
(458,300)
(458,300)
126,903
(170,000)
(326,667)
(369,764)
17,678
17,678
141,721
2,187,810
$2,329,531
$559,531
335,909
37,086
(5,025)
2,000
22,606
$952,107
See accompanying notes to basic financial statements
32
Governmental
Activities
Internal
Service Funds
$5,482,782
(9,926,709)
1,832,187
(2,611,740)
(625,110)
(625,110)
35,320
35,320
(3,201,530)
3,919,736
$718,206
$1,243,835
(6,504)
(120,054)
(12,046)
(3,716,971)
($2,611,740)
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of the Financial Reporting Entity
As required by generally accepted accounting principles, the fmancial 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 fmancial relationships with the
City.
B. Description of Blended Component Units
The accompanying basic financial statements include all funds and boards and cOinmissions 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 Redeveloplnent 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 cOinmenced 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 fmancing and refmancing 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.
33
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30,2010
I NOTE 1 -SUMl\1ARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C Description of Discretely Presented Component Unit
San Rafael Sanitation District -The San Rafael Sanitation District (District) was fonned in 1947
under Section 4700 of the California Health and Safety Code to provide wastewater translnission
over the southern two-thirds of the City and adjacent unincorporated areas. The City contracts with
the District to maintain the collection systems in the City and unincorporated areas.
The District is governed by a three-melnber Board of Directors who are appointed to four-year
terms. The City Council of the City appoints two out of the three board Inembers 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 fmancial statelnents 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 fmancial statements can be obtained at Central Marin Sanitation Agency,
Finance Department, 1301 Andersen Drive, San Rafael, CalifoDlia 94901.
D. Basis of Presentation
Government-wide Statements -The Statement of Net Assets and the Statement of Activities
display infonnation 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 infonnation 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.
34
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I 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 governlnental funds 111 the accompanying financial
statements:
General Fund -Accounts for all financial resources and transactions except those required to be
accounted for in other funds.
Traffic and Housing Mitigation Fund -Established to maintain long-term developer deposits
for major housing and street improvement projects.
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 accOlnpanying financial
statements. The enterprise funds is:
Parking Services Fund -Established to maintain parking garages, lots and spaces in the
Downtown Parking District (established over 40 years ago), and to pay for parking enforcement,
meter collection, and downtown officer services.
The City also reports the following fund types:
Internal Service Funds -These funds account for: building maintenance, employee benefits,
liability insurance, workers' compensation, dental insurance, all of which are provided to other
departments on a cost-reimbursement basis.
35
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. Basis of Accounting
The government-wide, proprietary and discretely presented component unit financial statelnents
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 intergovermnental
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.
36
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 1 -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, departlnents 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 cOlmnitments 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 Major Special Revenue Fund incurred expenditures in excess of their budget.
Sufficient resources were available within each department to finance these overages.
Traffic and Housing Mitigation Special Revenue Fund $840,500
H. Cash Equivalents
F or 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.
L 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.
37
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The City has included the value of all infrastructure capital assets into its Basic Financial
Statements using the Basic Approach for infrastructure reporting.
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.
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 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.
The City has assigned the useful lives listed below to capital assets:
Buildings, improvements, and structures
Machinery and equipment
Infrastructure
J. Compensated Absences
20 -50 years
5 -15 years
15 -50 years
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
Inaximum amount as specified under labor contract provisions. The vested portion is available for
current use or, if unused, is payable at termination or retirement.
The long-term portion of the liability for compensated absences for governmental fund type
operations is recorded as compensated absences in the government-wide fmancial statements.
Compensated absences are liquidated by the fund that has recorded the liability. Proprietary fund
liabilities are recorded within their respective funds.
The changes of the compensated absences were as follows:
Governmental Business-Type
Activities Activities Total
Beginning Balance $4,579,797 $164,967 $4,744,764
Additions 3,537,724 136,007 3,673,731
Payments {3,840,5392 (113,401) (3,953,940)
Ending Balance $4,276,982 $187,573 $4,464,555
Current Portion $726,403 $15,310 $741,713
38
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
K. Property Tax Levy, Collection and Maximum Rates
State of California Constitution Article xm 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 defmed by Article xm 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 1
July 1
50% on November 1 (December 10)
50% on February 1 (April 10)
Unsecured
January 1
July 1
July 1 (August 31)
The term ''unsecured'' refers to taxes on personal property 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 property tax distribution," known as the Teeter Plan, by
the City and the County of Marin. The Teeter Plan authorized the auditor-controller of the County
of Marin to allocate 100% of the secured property taxes billed, but not yet paid. The County of
Marin relnits tax monies to the City in three installments, as follows:
L. Use of Estimates
55 % remitted on December 15
40% remitted on April 15
5% remitted on June 15
The preparation of fmancial statements in conformity with generally accepted accounting principles
requires Inanagelnent 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. Change in the Application of an Accounting Principle
During fiscal year 2009-10, the City transferred the general liability and workers' compensation
claims payable and the corresponding cash reserves from the Liability Insurance and Workers'
Compensation Internal Service Funds to the General Fund. The transfer was due to the fact that
these claim liabilities had been settled mostly with resources from the General Fund.
Since General Fund is on modified accrual accounting basis, expenditures and liabilities related to
these claims payable should only be recognized when they are due. The full amounts of these
claims payable are reported in the accrual-based government-wide Statement of Net Assets.
As a result of the above transfer, the beginning fund balance of the General Fund was increased by
$3,716,971.
39
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I 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. illdividual 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. ill order to
increase security, the City employs the Trust Department of a bank as the custodian of certain City
managed inves1:Inents, 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 inves1:Inent 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.
B. Classification
Cash and inves1:Inents as of June 30, 2010, are classified in the fmancial 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
Restricted cash and investments
Total Primary Government Cash and Investments
San Rafael Sanitation District:
Cash and investments available for operations
Restricted cash and investments
Total San Rafael Sanitation District Cash and
Investments
Total Cash and Investments
$32,572,554
472,566
33,045,120
14,208,051
472,367
14,680,418
$47,725,538
The City does not allocate investments by fund. Each proprietary fund's portion of Cash and
illvestments Available for Operations is in substance a demand deposit available to fmance
operations, and is considered a cash equivalent in preparing the statement of cash flows.
40
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30,2010
I NOTE 2 -CASH AND INVESTMENTS (Continued)
C. Investments Authorized by the California Government Code and the City's Investment Policy
The City's investment policy and the California Government Code allow the City to invest in the
following provided the credit ratings of the issuers are acceptable to the City; and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of
the California Government Code, or the City's mvestment Policy where it is more restrictive:
Minimum Maximum Maximum
Maximum Credit Percentage of mvestment in One
Authorized mvestment T~pe Maturity Quality Portfolio Issuer
U.S. Government Obligation 5 years No limit No limit
U.S. Agency Securities and 5 years AAA No limit No limit
mstruments
Repurchase Agreements 1 year A-I No limit No limit
Prime Commercial Paper 270 days A-I 25% $1,000,000
Bankers' Acceptances 180 days A-I 40% $2,000,000
Medium-Term Corporate Notes 5 years A 30% $1,000,000
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 mvestment Fund N/A N/A N/A N/A
Money Market Mutual Funds N/A AAA 10% N/A
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. Treasmy and agency securities, commercial paper, banker's acceptances, time deposits,
repurchases agreelnents, and the State of California LAIF. The district, additionally, may invest in
the Marin County mvestment Pool. At year-end, the District's investments were in cOlnpliance with
the above provisions.
41
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 2 -CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents
under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged
as reserves to be used if the City fails to meet its obligations under these debt issues. The California
Government Code requires these funds to be invested in accordance with City ordinance bond
indentures or State statute. The table below identifies the investment types that are authorized for
investments held by fiscal agents. The table also identifies certain provisions of these debt
agreements:
Maximum Minimum Maximum Percentage of
Authorized Investment Type Maturity Credit Quality Portfolio
5 years to
U.S. Treasury Obligations no N/A No Limit
11laXlmmll
U.S. Agency Securities 3-5 years N/A No Limit
U.S. Agency Instruments 5 years AAA No Limit
Repurchase Agreements 1 year A-I No limit
Category
Bankers' Acceptances 360 days Highest No Limit
Rating
Category
Money Market Funds N/A Highest No Limit
Rating
Category
Prime Commercial Paper 270 days Highest No Limit
Rating
Guaranteed Investment Category
Contracts (fully N/A Highest No Limit
collateralized) (A) Rating
Two Highest
Municipal Obligations N/A Category No Limit
Ratings
Medium-Term Corporate 5 Years A No Limit Notes
Non-Negotiable Certificates
of Deposit 180 Days N/A No Limit
Negotiable Certificates of
Deposit 5 Years N/A No limit
Local Agency Investment N/A N/A N/A Fund
(A) Guaranteed Investment Contracts must be fully collateralized with u.S. Treasury Obligations or
U.S. Agency Obligations.
42
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 2 -CASH AND INVESTMENTS (Continued)
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. The City also manages its interest rate risk by
holding most investments to maturity, thus reversing unrealized market gains and losses.
Information about the sensitivity of the fair values of the City's investments (including investments
held by bond trustee) to market interest rate fluctuations is provided by the following table that
shows the distribution of the City's investments by maturity or earliest call date:
12 Months
TYEe of Investment or Less
City:
U.S. Federal Agency Securities $2,042,665
Money Market Mutual Funds 1,781,725
Local Agency Investment Fund 25,083,410
Corporation Notes
Total Investments $28,907,800
Cash in banks and on hand
Total City Cash and Investments
San Rafael Sanitation District:
Cash in banks and short-term pooled investments
Total District's Cash and
Investments
Total Cash and Investments
13 to 24 25 to 60
Months Months
$1,028,594 $1,514,468
523,825
$1,552,419 $1,514,468
Total
$4,585,727
1,781,725
25,083,410
523,825
31,974,687
1,070,433
33,045,120
14,680,418
14,680,418
$47,725,538
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, 2010, these investments
matured in an average of 203 days.
Money Market Mutual Funds are available for withdrawal on delnand and at June 30, 2010,
matured in an average of38 days.
43
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 2 -CASH AND INVESTMENTS (Continued)
F. Credit Risk
G.
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, 2010, 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 Aa2/AA+ AaalAAA Total
City:
U.S. Federal Agency Securities $4,585,727
Money Market Mutual Funds 1,781,725
Corporation Notes $523,825
Total rated investments $6,891,277
Not rated:
Local Agency Investment Fund 25,083,410
Cash in banks and on hand 1,070,433
Total City Cash and Investments 33,045,120
San Rafael Sanitation District:
Not rated:
Cash in banks and short-term
pooled investments $14,680,418
Total District's Cash and
Investments 14,680,418
Total Cash and Investments $47,725,538
Concentration of Credit Risk
Investments in anyone issuer, other than U. S. Treasury securities, money market Inutual funds,
and California Local Agency Investment Funds that represent 5% or more of total City-wide
investments are as follows at June 30,2010:
Reporting Unit
Entity-wide
General Fund
Issuer
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Mortgage Corporation
Federal Farm Credit Bank
GE Capital Corporate Medium Term Notes
44
Investment TyPe
Federal Agencies Obligation
Federal Agencies Obligation
Federal Agencies Obligation
Federal Agencies Obligation
Corporate Bonds
Amount
$2,530,157
$2,530,157
1,012,124
1,043,438
523,825
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
NOTE 3 -INTER-FUND TRANSACTIONS
A. Inter-fund Receivables and Payables
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-
term loans expected to be repaid in the next fiscal year.
As of June 30, 2010, the Childcare Special Revenue Fund owed the Recreation Revolving Special
Revenue Fund $60,226 and the Sewer Maintenance Special Revenue Fund owed the Traffic and
Housing Mitigation Special Revenue Fund $307,723.
The Employee Benefits Internal Service Fund owed the Liability Insurance and Workers'
Compensation Internal Service Funds $827,090 and $18,594 respectively.
B. Transfers
Resources may be transferred from one City fund to another. Transfers routinely fund capital
projects or capital outlays, lease or debt service payments, operating expenses and low and
moderate-income housing projects.
Transfers between funds during the fiscal year ended June 30, 2010, were as follows:
From Fund To Fund
General Fund Non-Major Governmental Funds
Internal Service Funds
Gas Tax Fund General Fund
Redevelopment 'Agency Capital Projects Fund
Non-Major Governmental Funds
Redevelopment Agency Debt Service Fund Redevelopment Agency Capital Projects Fund
Non-Major Governmental Funds General Fund
Parking Services Enterprise Funds General Fund
Non-Major Governmental Funds
Internal Service Funds General Fund
Non-Major Governmental Funds
(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 to fund internal operations.
Amount
$2,322,551
529,890
1,469,934
695,856
39,762
829,008
724,149
393,300
65,000
900,000
55,000
$8,024,450
(C) Transfers to the General Fund were for administrative costs, costs of dispatch and street maintenance support.
(D) Transfers to the Redevelopment Agency Capital Projects fund were to fund capital projects.
45
A
B
C
D
A
D
C
C
A
C
A
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
NOTE 3 -INTER-FUND TRANSACTIONS (Continued)
C Internal Balances
Internal balances are presented in the Entity-wide fmancial statements only. They represent the net
interfund receivables and payables remaining after the elimination of all such balances within
governmental and business-type activities.
I 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, 2010,
these loans totaled:
B. Employee Loans
Employees' Loans
Centertown Associates
One "H" Street Associates
Fire Chief Loan
Total
$21,337
307,555
65,715
561,963
$956,570
Effective February 1, 2000, the City agreed to loan elnployees up to $2,500 for the purchase of
cOlnputer hardware and software. The loan program, which stipUlates that employees may not have
more than one loan outstanding, provides fmancial 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 a 60-unit affordable Centertown apartment complex and is fully
secured by a deed of trust. The fmal 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 fmal 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, until the loan is paid
off, the interest rate of the loan will be adjusted based upon the then reported quarter-to-date Local
Agency Investment Fund rate on the City's investment portfolio. As of June 30, 2010, the balance of
the loan was $561,963
46
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
NOTE 5 -CAPITAL ASSETS
Changes in capital assets during the fiscal year consist of:
Balance
June 30, 2009 Additions Retirements
Governmental Activities
Capital assets not being depreciated:
Land $82,710,795 ($246,431)
Construction in progress 3,395,722 $1,679,049 (170,533)
Total capital assets not being depreciated 86,106,517 1,679,049 (416,964)
Capital assets being depreciated:
Land improvements 8,239,061 (3,000)
Buildings and structures 38,830,105
Machinery and equipment 16,174,963 216,831 (302,006)
Infrastructure 176,527,921 4,548
Total capital assets being depreciated 239,772,050 221,379 (305,006)
Less accumulated depreciation for:
Land improvements (3,889,035) (274,646)
Buildings and structures (8,946,004 ) (1,141,953)
Machinery and equipment (9,886,991) (1,335,611) 259,170
Infrastructure (88,780,603) (4,842,163)
Total accumulated depreciation (111,502,633) (7,594,373) 259,170
Total net capital assets being depreciated 128,269,417 (7,372,994) (45,836)
Total governmental activity capital assets $214,375,934 ($5,693,945) ($462,800)
Balance
June 30, 2009 Additions
Business-type Activities
Capital assets not being depreciated:
Land $8,620,853
Construction in progress 122,861
Total capital assets not being depreciated 8,743,714
Capital assets being depreciated:
Buildings and structures 10,234,521
Machinery and equipment 1,142,190
Total capital assets being depreciated 11,376,711
Less accumulated depreciation for:
Buildings and structures (1,431,905) (202,309)
Machinery and equipment (469,883) (133,600)
Total accumulated depreciation (1,901,788) (335,909 2
Total net capital assets being depreciated 9,474,923 (335,909)
Total business-type activity capital assets $18,218,637 ($335,909)
47
Balance
Transfers June 30, 2010
$82,464,364
($3,190,086) 1,714,152
(3,190,086) 84,178,516
8,236,061
38,830,105
16,089,788
3,190,086 179,722,555
3,190,086 242,878,509
(4,163,681)
(10,087,957)
(10,963,432)
(93,622,766)
(118,837,836)
3,190,086 124,040,673
$208,219,189
Balance
Retirements June 30,2010
$8,620,853
($122,861)
(122,861) 8,620,853
10,234,521
(26,957) 1,115,233
(26,957) 11,349,754
(1,634,214)
22,915 (580,568)
22,915 (2,214,782)
(4,042) 9,134,972
($126,903) $17,755,825
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30,2010
I NOTE 5 -CAPITAL ASSETS (Continued)
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
Total District's capital assets
Balance
June 30, 2009
$115,329
3,118,330
3,233,659
12,152,655
33,428,586
411,052
45,992,293
(8,384,566)
(12,043,350)
(185,086)
(20,613,002)
25,379,291
$28,612,950
Additions
$448,679
448,679
995,490
2,156,162
422,789
3,574,441
(231,307)
(833,514)
(41,865)
(1,106,686)
(683,897)
($235,218)
Transfers &
Adjustments
($3,151,652)
(3,151,652)
($3,151,652)
Balance
June 30, 2010
$115,329
415,357
530,686
13,148,145
35,584,748
833,841
49,566,734
(8,615,873)
(12,876,864)
(226,951)
(21,719,688)
27,847,046
$28,377,732
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
Public safety
Public works and parks
Community development/redevelopment
Culture and recreation
Total Governmental Activities
Business-type Activities
Parking services
Total Business-type Activities
48
$209,800
1,007,762
5,564,101
63,716
748,994
$7,594,373
$335,909
$335,909
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
NOTE 6 -LONG-TERM OBLIGATIONS
A summary of governmental and business-type activities transactions for the fiscal year ended June 30,
2010, follows:
Authorized Balance Balance Current
and Issued June 30, 2009 Additions Retirements June 30, 2010 Portion
Governmental Activities:
San Rafael Joint Powers Financing Authority
1997 Authority Revenue Bonds
4.00%-6.00%, due 9/2/2011 $5,250,000 $455,000 $455,000
San Rafael Redevelopment Agency
1999 Tax Allocation Bonds
Current Interest Bonds
4.5%-5.00%, due 12/1/2022 21,115,000 15,080,000 15,080,000
Capital Appreciation Bonds
5.58%-5.6%, due 12/1/2022 2,389,004 4,128,692 $234,111 $4,362,803
2002 Tax Allocation Refunding Bonds
2.00%-5.25%, due 12/1/2021 25,020,000 16,585,000 1,290,000 15,295,000 $1,350,000
2009 Tax Allocation Refunding Bonds
3.00%-5.00%, due 12/1/2022 14,660,000 14,660,000 14,660,000 875,000
Add: deferred bond premium costs 1,038,185 1,038,185
Total Tax Allocation Bonds 35,793,692 15,932,296 16,370,000 35,355,988 2,225,000
Ground Lease Note Payable,
8.00%, due 11/112024 169,000 169,000 169,000
Court Fine Repayment Promissory Note,
3.873%, due November 2011 1,133,458 594,100 230,772 363,328 239,870
Telephone System Capitalized Lease Obligations,
4.28%, due 05/30/2012 318,000 198,816 63,486 135,330 66,233
Total Governmental Long-term Debt $37,210,608 $15,932,296 $17,119,258 $36,023,646 $2,531,103
Business-type Activities
2003 Authority Lease Revenue Bonds
3.00-4.70%, due 4/1/2033 7,605,000 $6,975,000 $170,000 $6,805,000 $175,000
Total Enterprise Fund Debt $6,975,000 $170,000 $6,805,000 $175,000
San Rafael Sanitation District
2001 Certificates of Participation 4,710,000 $1,810,000 $430,000 $1,380,000 $440,000
3.25-4.40%, due 8/1/2012
Less: unamortized discount! issuance cost (58,267) (27,968) (30,299)
Total District Debt $1,751,733 $402,032 $1,349,701 $440,000
49
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 6 -LONG-TERM OBLIGATIONS (Continued)
A. 1997 Authority Revenue Bonds
On January 28, 1997, the San Rafael Joint Powers Financing Authority issued the 1997 Authority
Revenue Bonds in the amount of $5,250,000 bearing interest at rates from 4.00% to 6.00%. The
proceeds of the bonds were used to consolidate and refund the previously issued Limited Obligation
Refunding Bonds. These bonds had been repaid as of June 30,2010.
B. 1999 Tax Allocation Bonds and Capital Appreciation Bonds
On June 16, 1999, the Agency issued Tax Allocation Bonds in the amount of $23,504,004. The bonds
were issued as Current illterest 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 illterest 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 frOlu 4.50% to 5.00%. illterest is
payable semiannually on June 1 and December 1. The Current illterest 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 Deceluber 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%.
In December, 2009 of the Agency exercised the redemption option. The outstanding balance of the
Bonds were refunded, on a current basis, through the issuance of the 2009 Tax Allocation Refunding
Bonds as discussed on Note 6D below.
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%. illterest 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.
C 2002 Tax Allocation Refunding Bonds
On October 9,2002, the Agency issued Tax Allocation Refunding Bonds in the amount of $25,020,000.
The proceeds of the bonds were used to refund the 1992 Tax Allocation Refunding Bonds and the 1995
Tax Allocation Bonds. The Bonds mature annually each December 1 from 2002 to 2022, in amounts
ranging from $540,000 to $1,920,000 and bear interest at rates ranging from 2.00% to 5.25%. illterest is
payable semiannually on June 1 and December 1. The Bonds maturing on or after December 1,2013,
are subject to optional redemption prior to maturity, in whole or in part, and by lot within anyone
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.
50
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 6 -LONG-TERM OBLIGATIONS (Continued)
D. 2009 Tax Allocation Refunding Bonds
On December 14, 2009, the Agency issued 2009 Tax Allocation Refunding Bonds in the amount of
$14,660,000 bearing interest at rates from 3.00% to 5.00%. The proceeds of the Series 2009 Bonds
were used to refund the Agency's 1999 Tax Allocation Current mterest Bonds, to advance funds to the
City to finance street and parking improvements for the benefit of the Agency's Central San Rafael
Redevelopment Project. Principal payments are due annually on December 30 and interest payable
semiannually on June 30 and December 30.
The Series 2009 Bonds are payable from tax revenues derived from the Central San Rafael
Redevelopment Project Area. The refunding resulted in the decrease of debt service payments over the
next 14 years by $420,000 and an economic gain of$1,516,619.
The Series 2009 Bonds maturing on or before December 1,2019, are not subject to optional redemption
prior to their respective stated maturities. The Series 2009 Bonds maturing on or after December 1,
2020, are subject to optional redemption as a whole or in part either on a pro rata basis among
maturities or in inverse order of maturity, and by lot within anyone maturity, prior to their respective
maturity dates, at the option of the Agency, on any date on or after December 1,2019, at a price equal to
the principal amount of such Series 2009 Bonds called for redemption, together with interest accrued on
the date fixed for redemption, without premium.
The Agency has pledged all future tax increment revenues, less amounts required to be set aside in the
Low and Moderate mcome Housing Fund, for the repayment of the 1999 Capital Appreciation Bonds,
and the 2002 and 2009 Tax Allocation Refunding Bonds. The pledge of all future tax increment
revenues ends upon repayment of $46.3 Inillion in remaining debt service on the Bonds, which is
scheduled to occur in 2023. For fiscal year 2010 tax increment revenues amounted to $4.4 million and
debt service also amounted to $4.0 million.
E. Note Payable
At June 30, 2010, Note 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 [mance the
purchase of certain property by the Agency.
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.
51
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I 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 paYlnents 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.
L 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 fmance 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 selniannually 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 premiUln at 101 % to exercise optional prepayment between August 1, 2009, and
July 31,2010, and no premium August 1,2010, and after.
52
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 6 -LONG-TERM OBLIGATIONS (Continued)
J. Future Debt Services
Future debt service requirements, including interest and capital leases, at June 30, 2010, were as
follows:
Component Unit
For the Year Govermnental Activities Business-t~Ee Activities San Rafael Sanitation District
Ended June 30 PrinciEal Interest PrinciEal Interest PrinciEal Interest
2011 $2,531,103 $1,348,505 $175,000 $321,141 $440,000 $50,820
2012 2,517,555 1,245,710 185,000 314,141 940,000 20,680
2013 2,425,000 1,140,269 190,000 306,741
2014 2,540,000 1,023,576 200,000 299,141
2015 2,675,000 893,201 205,000 291,141
2016 -2020 15,270,000 2,552,923 1,175,000 1,316,263
2021 -2025 10,494,000 371,494 1,460,000 1,023,796
2026 -2030 1,860,000 627,000
2031 -2033 1,355,000 137,750
Totals 38,452,658 $8,575,678 $6,805,000 $4,637,114 1,380,000 $71,500
Reconciliation oflong-term debt:
Less unaccredited discount (3,467,197)
Less unamortized original issue discount (30,299)
Add deferred bond premium costs 1,038,185
$36,023,646 $1,349,701
I NOTE 7 -DEBT WITHOUT CITY COMMITMENT
The City has sponsored the issuance of the following debt, for which the City is not liable for
repayment but is only acting as an agent for the property owners and bondholders:
San Rafael Redevelopment Agency
Multifamily Housing Revenue Bonds
California Statewide Communities
Development Authority Revenue Bonds
San Rafael Redevelopment Agency
Variable Rate Demand Multifamily
Housing Revenue Bonds
San Rafael Redevelopment Agency
Multifamily Housing Revenue Bonds-200 1
City of San Rafael
Variable Rate Revenue Bonds
San Rafael Redevelopment Agency
Multifamily Housing Revenue Bonds-2007 Series A
Multifamily Housing Revenue Bonds-2007 Series B
Project
DescriEtion
162-175 Belvedere
Apartments
St. Marks School
55 Fairfax
Apartments
San Rafael Commons
Apartments
53
Kaiser Foundation
Hospitals
Martinelli House
Project
Martinelli House
Original
Amount
$3,590,529
5,605,000
3,000,000
6,100,000
275,000,000
6,000,000
1,000,000
Outstanding
June 30, 2010
$1,316,570
4,985,000
2,600,000
5,580,000
195,630,000
2,211,770
288,668
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I 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 detennined only at
the Goverrnnent-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 tenns 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 fmancial statements, fund balances represent the net current assets of each fund. Net
current assets generally represent a fund's cash and receivables, less its liabilities. Portions of a
fund's balance may be reserved or designated for future expenditure.
c. Reservations
Reserves are restrictions placed by outside entities, such as other governments, which restrict the
expenditures of the reserved funds to the purpose intended by the entity which provided the funds. The
City cannot modify or remove these restrictions or reserves.
D. Designations
Designations are imposed by City Council to reflect the future spending plans or concerns about the
availability of future resources. Designations may be modified, amended, or removed by Council
action.
54
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
INOTE9-E~LOYEESRETmEMENTPLAN
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 defmed 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 fmal 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' Retirelnent 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 Retirelnent 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, 2010.
C Annual Pension Cost
The annual required contribution was determined as part of the actuarial performed as of June 30, 2009.
The employer rates for normal cost is determined using the Entry Age Normal Actuarial Cost Method,
proj ected 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 2009 actuarial
valuation include an assumed rate of return on invested assets of 7.75%, annual payroll increases
reflecting 3.5% for inflation and an approximate range of 0.50% to 8.00% for merit and longevity. The
actual rate of return on investments was a loss of 19.8%. 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 Percentage of Net
Ended Pension Cost APC Pension
June 30 {APC} Contributed Obligation
2008 $13,754,798 100% $0
2009 13,746,154 100% 0
2010 12,745,613 100% 0
55
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 9 -EMPLOYEES RETIREMENT PLAN (Continued)
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 ABe Over AAL Ratio Payroll Payroll
6/30107 $235,756,000 $325,219,000 ($89,463,000) 72% $30,180,000 (277%)
6/30108 262,677,000 360,298,000 (97,621,000) 73% 31,854,000 (306%)
6/30109 239,841,000 379,801,000 (139,960,000) 63% 32,413,000 (432%)
NOTE 10 -PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION
RETIREMENT PLANS)
The City contributes to the Public Agency Retirement System (PARS), which is defmed contribution
retirement plan. A defmed 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 adillinistered by Phase II located at P.O. Box 10009, Costa Mesa, California
92627.
Under a defmed 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 eillployee is any employee who, at any time during
which the employer maintains this plan, is not accruing a benefit under the Marin County Employees'
Retirement Fund.
As determined by the plan, each employee must contribute 3.75% of gross earnings to the plan. The
City contributes an additional 3.75% of the employee's gross earnings. Contributions made by an
employee and the employer vest immediately.
During the year, the City and employees contributed $60,216. The total covered payroll of employees
participating in the plan for the year ended June 30, 2010, was $1,605,760. The total payroll for the
year was $38,075,807.
Additionally, the City participates in a 401(a) tax qualified plan for eligible non-represented
management/mid-management employees. This is an employer only contribution program separate
from the Marin County Employees' Retirement 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 $138,629 to the plan on behalf of the
eligible employees.
56
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 11-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, 2010, 296 retirees and surviving
spouses received post-employment health care benefits. Those expenditures are reduced by
reimbursements from the Marin County retirement Office by the annual amount set forth in the County
Retirement Rules and Regulations 1937 Act as amended and in Sections 31450 et. seq. of the
Government Code.
The provisions and benefits of the City's Other Post Employment Benefit Plan, in effect at June 30,
2010, are summarized as follows:
Elected Officials, Mid-Management, I
& Unrepresented Management All other Bargaining Units
Elifdbility Retire directly from the City:
-Age 50 with 10 years services OR
30 years service (Miscellaneous), 20
-years service (Safety) OR
-Disability Retirement
Benefit Hired::S 111109 Full premium/cap Hired::S 111110 Up to cap
Hired> 111/09 PEMHCA Min Hired> 11111 0 PEMHCA Min
Spouse Benefit Continuation to surviving spouse
Medicare Part B Hired < 4/1107 Full reimbursement None
Hired 2: 4/1107 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, 2009, 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)
3.50% of general inflation increase, and (c) a healthcare trend of declining annual increases ranging
from 9.80% in 2012 to 5.00% for years starting 2018. 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 maximum 30 year combined amortization period.
57
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 11-POST-ElMPLOYMENT HEALTH CARE BENEFITS (Continued)
Funding Progress and Funded Status
During the fiscal year ended June 30, 2010, the City has recorded a Net OPEB Obligation in the Post
Retirement Internal Service Fund, representing the difference between the ARC and actual
contributions, as presented below:
Annual required contribution (ARC)
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost
Contributions made:
Benefits payment
Trust pre funding
Total contributions
Change in net OPEB obligationJ(asset)
Net OPEB Obligation (Asset) at June 30, 2009
Net OPEB Obligation (Asset) at June 30, 2010
Amounts
(in thousands)
$4,390
119
1,067
5,576
2,344
(1,000)
1,344
4,232
2,033
$6,265
In accordance with the City's budget, the City's annual contributions to the Plan are based on pay-as-
you-go fmancing. 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 arrangelnent. 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, 2009,
actuarial study. During the fiscal year ended June 30, 2010, the City has calculated and recorded the
Net OPEB Obligation, representing the difference between the ARC, and contributions, as presented
below:
Annual
Required
Contribution Annual Actual Percentage Net OPEB
Fiscal Year (ARC) Pension Cost Contribution of ARC Obligation
Ended {ODD's omitted} {ODD's omitted} {ODD's omitted} Contributed {ODD's omitted}
June 30, 2009 $4,269 $4,269 $2,236 52% $2,033
June 30, 2010 4,390 5,576 2,344 53% 5,265
58
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE II-POST-ElVIPLOYMENT HEALTH CARE BENEFITS (Continued)
The Schedule of Funding Progress presents trend information about whether the actuarial value of
plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Trend data from the June 30, 2010, actuarial study is presented below:
Valuation
Date
11112007
8117/2010
Actuarial
Unfunded
Value of Accrued Accrued
Assets Liability Liability
(OOO's omitted) (OOO's omitted) (OOO's omitted)
$14,563 $56,624 ($42,061)
12,763 58,909 (46,146)
I NOTE 12 -JOINTLY GOVERNED ORGANIZATIONS I
Funded
Ratio
26%
22%
Overfunded
(Underfunded)
Actuarial
Liability as
Covered a Percentage of
Payroll Covered
(OOO's omitted) _....;P.;,..a..;,.yr.;;.,o,;;...l_l_
$38,480 -109.31%
36,470 -126.53%
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 ~o 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 respectiv~ 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.
A. The Marin County Integrated On-Line Library System (System)
The Marin County Integrated On-Line Library System was formed to provide for the procurement,
ownership, operation, maintenance, and governance of an integrated on-line system that is jointly
owned and operated by the cities of San Rafael, Mill Valley, Sausalito, and the County of Marin.
The Governing Board of-the System consists of the library director or designated alternate of each
participant in the System. In accordance with the cost sharing formula developed by the library
directors of the participants, the City's share of the acquisition cost in the amount of $108,007
represents 17.34% 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 $118,320 to the System
for operating costs for the year ended June 30, 2010. Financial statements of the System can be
obtained at the County Librarian, Marin County Free Library, Civic Center, Administration Building,
San Rafael, California 94903.
59
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 12 -JOINTLY GOVERNED ORGANIZATIONS (Continued)
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 MSLAJP A.
The City's contribution to MGSA was $2,244 for the year ended June 30,2010. Financial statements
of the MGSA can be obtained at 27 Commercial Boulevard, Suite C, Novato, CA 94949.
c. The Marin Emergency Radio Authority (MERA)
MERA was fonned on February 28, 1998, by the County of Marin and 25 local agencies within the
County to plan, finance, implelnent, 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 $637,299 for the Authority's operation and debt service for the fiscal year
ended June 30, 2010. 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.
D. The Countywide Planning Agency
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 Inember 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 equiplnent 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 $94,582 for the year ended June 30, 2010. Financial
statements of the Agency can be obtained at 371 Bel Marin Keys Blvd, Suite 100, Novato, CA
94949.
60
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 12 -JOINTLY GOVERNED ORGANIZATIONS (Continued)
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 $13,289 for the year ended June 30,2010. Financial statements of the Authority can be obtained
at 3501 Civic Center Drive, San Rafael, California 94903.
Go 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.
I NOTE 13 -RISK MANAGEMENT
The City manages risk by participating in the public entity risk pools described below and by retaining
certain risks.
Public entity risk pools are fonnally 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 $100,967,912. 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 30,2010, the City contributed $266,630 for coverage during the
current year and received a refund of $135,513 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.
61
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 13 -RISK MANAGEMENT (Continued)
Workers' Compensation Coverage
The City purchased insurance for workers' compensation through AIG Excess Workers' Compensation
and Employers Liability fusurance with coverage up to statutory lilnits. The City is self-insured up to a
minimum of $750,000 for each worker's compensation clann.
The contributions made to each risk pool equal the ratio of their respective payrolls to the total payrolls
of all entities participating in the same layer of each program, in each program year. Actual surpluses or
losses are shared according to a formula developed from overall loss costs and spread to member
entities on a percentage basis after a retrospective rating.
B. Insurance Internal Service Funds
The Governmental Accounting Standards Board (GASB) requires municipalities to record their liability
for uninsured claims and to reflect the current portion of this liability as an expenditure in their fmancial
statements. As discussed above, the City has coverage for such clanns, but it has retained the risk for
the deductible, or uninsured portion of these claims.
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 fusurance futernal Service Fund and
Workers' Compensation Internal Service Fund, respectively. The liability is based on historical trend
information provided by its third party administrators and was computed as follows at June 30:
General Workers' Totals, as of June 30
Liability Com}2ensation 2010 2009
Balance, beginning of year $407,361 $3,309,610 $3,716,971 $4,260,129
Current year claims and changes
in estimates 622,321 378,143 1,000,464 300,293
Claims paid (511,988} (606,860) (1,118,848) (843,451)
Balance, end of year $517,694 $3,080,893 $3,598,587 $3,716,971
Current portion $300,000 $1,900,000 $2,200,000 $2,400,000
The claiIns settlements have not exceeded insurance coverage for the past three years.
I 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
fmancial position of the City.
In 2004, the City of San Rafael entered into a Settlement Agreement with the federal Department of
Justice to bring City managed programs, activities, services and facilities into compliance with the
Americans with Disabilities Act (ADA). The City has made significant progress over the past six
years and is in the process of completing the few remaining projects identified in the Settlement
Agreement.
62
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
I NOTE 14 -COMMITMENTS AND CONTINGENCIES (Continued)
Among those projects is the construction of 800 curb ramps throughout San Rafael. As of October
2010, the City has construction 339 ramps with plans to install the remaining ramps over the life of
the Agreement, which expires in 2014.
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.
INOTE 15 -SUPPLEMENTAL EDUCATION REVENUE AUGMENTATION FUND (SERAF) I
The State of California adopted AB26 4X in July 2009 which directs that a portion of the
incremental property taxes received by redevelopment agencies, based on the property taxes
received in fiscal year 2006-07, be paid instead to the County supplemental educational revenue
augmentation fund (SERAF) in fiscal years 2009-10 and 2010-11. The State Department of
Finance detennines each agency's SERAF payment by November 15 of each year, and payments
are due by May 10 of the applicable year. The Agency made its first SERAF payment of
$1,371,900 in fiscal year 2009-10.
Based on the calculations in AB26 4X, the Agency's SERAF payment is estimated to be $282,188
in fiscal year 2010-11. The Agency can use any legally available funds to make the SERAF
payments. The obligation to make the SERAF payment is subordinate to obligations to repay
bonds. However, if the Agency fails to make the full SERAF payment, the Agency may not
encumber or expend 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.
INOTE 16 -PROPOSITION lA
Under the provisions of Proposition 1A and as part of the fiscal year 2009-10 budget package
passed by the California State legislature on July 28, 2009, the State of California borrowed 8% of
property tax revenue, including those property taxes associated with the in-lieu motor vehicle
license fees, triple flip in lieu sales taxes, and supplemental property taxes, apportioned to the City.
The State is required to repay the $1,598,680 it borrowed from the City, plus interest, by June 30,
2013.
Authorized with the 2009-10 State budget package was the Proposition 1A Securitization Program
(Program), administered by the California Statewide Communities Development Authority
("California Communities"), a joint powers authority sponsored by the California State Association
of Counties and the League of California Cities. Under the Program, the participating cities
receive cash equal to their share of State borrowings and forgo interest they otherwise would have
received from the State on the unpaid borrowings. The City is a participant in the Program.
63
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2010
INOTE 16 -PROPOSITION lA (Continued) I
California COlnmunities simultaneously purchased the Proposition 1A receivables from the City
and other participants, and issued bonds to provide participants with proceeds to be remitted in two
equal installments due on January 15, 2010, and May 3, 2010. All costs of issuance and interest
were paid by the State of California. Participating local agencies have no obligation on the bonds
and no credit exposure to the State. As of June 30, 2010, the City received both installments due
under the Program and recorded them as property taxes in the same manner as if the State had not
exercised its rights under Proposition 1A. Since sales proceeds to the City equal the book value of
State borrowings no gain or loss was incurred.
INOTE 17 -SUBSEQUENT EVENT I
A. Tax and Revenue Anticipation Notes
Subsequent to June 30, 2010, the City of San Rafael issued the 2010-11 Tax and Revenue
Anticipation Notes (TRANS) in the principal amount of $6,080,000 which is due on July 28, 2011,
along with unpaid interest accruing. TRANs are short-term, tax-free bonds issued for the purpose of
covering potential cash-flow deficits for governmental agencies that rely heavily on property tax
distributions as a source of revenue. The City is issuing the TRANs to bridge the gap between its
regular flow of operating expenditures and the receipt of its semi-annual property taxes. The City
does not expect any direct fiscal nnpact from the issuance of the TRANs because the actual size of the
issuance is based on the City's anticipated cash flow needs. The TRAN is repayable from future City
property tax revenues.
B. Taxable Pension Obligation Bonds
On July 1,2010, the City issued the 2010 Taxable Pension Obligation Bonds (Bonds) for $4,490,000.
mterest on the Bonds will be payable on January 1 and July 1 of each year, commencing January 1,
2011. Principal payable on the Bonds will be paid on July 1 starting July 1, 2017. The Bonds are
being issued to refund a portion of the obligations of the City to the Marin County Employees'
Retirement Association. Payment of the principal of and interest on the Bonds is not limited to any
special source of funds and is payable from any legally available moneys of the City. The City is not
empowered or obligated to levy or pledge taxes to make payments on the Bonds.
64
REQUIRED SUPPLEMENTAL INFORMATION
65
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GENERAL FUND AND MAJOR SPECIAL REVENUE FUND
BUDGET-TO-ACTUAL STATEMENTS
GASB Statement 34 dictates that budget-to-actual information in the basic fmancial statements should be
limited to the General Fund and Inajor 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
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2010
REVENUES
Taxes and special assessments
Licenses and permits
Fines and forfeitures
Use of money and properties
Intergo vernmental
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, AS ADJUSTED
FUND BALANCES, END OF YEAR
68
Budgeted Amounts
Original Final
$43,680,980 $40,581,058
1,274,426 1,186,174
1,552,540 1,152,540
166,460 163,016
6,894,520 7,049,170
1,883,872 1,874,232
127,780 127,780
55,580,578 52,133,970
7,134,420 6,942,509
34,174,730 32,974,029
8,411,360 7,916,316
3,627,760 3,154,011
2,355,370 2,373,011
44,850 174,006
33,500 35,991
230,770 230,770
56,012,760 53,800,643
(432,182) (1,666,673)
2,556,800 3,088,449
(2,369,720) (2,266,561)
187,080 821,888
($245,102) ($844,785)
Actual
Amounts
$39,717,752
1,515,069
787,411
155,196
6,736,930
1,936,405
197,843
51,046,606
6,701,085
32,218,288
7,678,081
3,100,343
2,316,695
178,887
268,801
230,772
52,692,952
(1,646,346)
3,487,383
(2,652,443)
834,940
(811,406)
7,613,201
$6,801,795
Variance with
Final Budget
Positive
(Negative)
($863,306)
328,895
(365,129)
(7,820)
(312,240)
62,173
70,063
(1,087,364)
241,424
755,741
238,235
53,668
56,316
(4,881)
(232,810)
(2)
1,107,691
20,327
398,934
(385,882)
13,052
$33,379
CITY OF SAN RAFAEL
TRAFFIC AND HOUSING MITIGATION SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
REVENUES
Use of money and properties
Charges for services
Other revenue
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
FOR THE YEAR ENDED JUNE 30, 2010
Budgeted Amounts
Original Final
$21,000 $21,000
21,000 21,000
65,010 64,895
46,075
65,010 110,970
(44,010) (89,970)
($44,010) ($89,970)
69
Actual
Amounts
$69,445
21,407
29,836
120,688
65,159
886,311
951,470
(830,782)
(830,782)
9,985,370
$9,154,588
Variance with
Final Budget
Positive
(Negative)
$48,445
21,407
29,836
99,688
(264)
(886,311)
46,075
(840,500)
(740,812)
($740,812)
CITY OF SAN RAFAEL
GAS TAX SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
REVENUES
Use of money and properties
Intergovernmental
Charges for services
Other revenue
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 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 JUNE 30, 2010
Budgeted Amounts Actual
Original Final Amounts
$32,860 $32,860 $9,835
1,907,230 3,934,784 2,855,978
546,000 546,000 672,654
60,720 83,796
2,486,090 4,574,364 3,622,263
20,130 28,115 18,662
3,559
1,458,730 3,123,070 1,735,342
1,478,860 3,151,185 1,757,563
1,007,230 1,423,179 1,864,700
(990,000) (2,206,618) (2,205,552)
(990,000) (2,206,618) (2,205,552)
$17,230 ($783,439) ($340,852)
2,392,292
$2,051,440
70
Variance with
Final Budget
Positive
(Negative)
($23,025)
(1,078,806)
126,654
23,076
(952,101)
9,453
(3,559)
1,387,728
. 1,393,622
441,521
1,066
1,066
$442,587
SUPPLEMENTARY INFORMATION
71
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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 30,2010
REVENUES
Taxes and special assessments
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works and parks
Community development/redevelopment
Capital outlay
Capital improvement/special projects
Total Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital asset
Transfers in
Transfers (out)
Total Other Financing Sources (Uses)
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
Budgeted Amounts
Original
$2,398,120
148,240
13,580
2,559,940
27,720
112,450
3,057,720
480,910
3,678,800
(1,118,860)
($1,118,860)
73
Final
$900,000
148,240
13,580
1,061,820
29,672
108,761
1,556,032
480,910
2,175,375
1,216,706
(291,840)
924,866
(188,689)
($188,689)
Actual
Amounts
$953,833
67,161
746,874
16,177
67,216
1,851,261
31,350
105,922
1,298,251
396,999
1,832,522
221,791
1,524,864
1,746,655
1,765,394
1,765,394
4,989,039
$6,754,433
Variance with
Final Budget
Positive
(Negative)
$53,833
(81,079)
746,874
2,597
67,216
789,441
(1,678)
2,839
257,781
83,911
342,853
221,791
308,158
291,840
821,789
1,954,083
$1,954,083
This Page Left Intentionally Blank
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 Farmers Market.
75
NON-MAJOR GOVERNMENTAL FUNDS
Sewer Maintenance Fund -Established under the terms of the JP A to provide all necessary
maintenance to the Sanitation District's gravity collection sewer system.
DEBT SERVICE FUNDS
Peacock Gap Assessment District Fund -Established to accUlnulate 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 asseSSlnent district.
Mariposa Assessment District Fund -Established to accUlnulate funds for the payment of principal
and interest for the 1993 Bond, which matures in 2008. The proceeds were used to finance the
grading and paving of Mariposa Road.
1997 Financing Authority Revenue Bonds Fund -Established to accumulate funds for the
payment of principal and interest for the 1997 Revenue Bonds which matures in 2011. The proceeds
were used to purchase the previously issued special assessment bonds. Financing is to be provided
by property tax increments generated within the specific geographic region described by the bond
assessment district.
Redevelopment Agency Fund -Established to account for the principal payments, interest
payments, and related costs of the 1999 Project Tax Allocation Bonds, 2002 Tax Allocation
Refunding Bonds, and 2009 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 ValleylLucas
Valley Open Space, East San Rafael Drainage Assessment District 1.
Park Capital Projects Fund -Established to account for capital improvements for all City owned
parks, whether paid for by City funds, grants, donations, or partnership with the community.
Open Space Fund -Established for the acquisition of open space.
Equipment Replacement Fund -Established to provide replacement of equipment.
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.
77
ASSETS
Cash and investments
Restricted cash and investments
Receivables:
Accounts
Taxes
Grants
Interest
Prepaids and deposits
Due from other funds
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Developer bonds payable
Due to other funds
Deferred revenue
Total Liabilities
Fund Balances:
Reserved for:
Prepaids and deposits
Debt service
Unreserved, undesignated
Total Fund Balances
Total Liabilities and Fund Balances
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2010
SPECIAL REVENUE FUNDS
Baypoint
Lagoons Household
Recreation Assessment Hazmat
Revolving District Facility
$240,792 $129,630 $1,360
262,191 368,631
381
1,899
60,226
$565,108 $130,011 $369,991
$96,805 $238,656
244,419
341,224 238,656
223,884 $130,011 131,335
223,884 130,011 131,335
$565,108 $130,011 $369,991
78
Street
Maintenance
Childcare and Cleaning
$1,014,068
$16,259 154,537
87,011
$103,270 $1,168,605
$24,932
60,226
85,158
18,112 $1,168,605
18,112 1,168,605
$103,270 $1,168,605
SPECIAL REVENUE FUNDS
Loch Lomond
Assessment Public
District Library Safety Stormwater
$880,125 $60,316 $189,333 $1,038,482
20,000
224 11,709
67,373
$880,349 $127,689 $209,333 $1,050,191
$11,459 $336 $71,676
11,459 336 71,676
$880,349 116,230 208,997 978,515
880,349 116,230 208,997 978,515
$880,349 $127,689 $209,333 $1,050,191
79
Development
Services
$729,135
$729,135
$31,020
1,500
32,520
696,615
696,615
$729,135
Grants
$359,816
7,500
307,277
$674,593
$36,936
36,936
637,657
637,657
$674,593
Parkland
Dedication
$1,224,906
20
$1,224,926
$6,116
6,116
1,218,810
1,218,810
$1,224,926
(Continued)
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
Total Liabilities
Fund Balances:
Reserved for:
Prep aids and deposits
Debt service
Unreserved, undesignated
Total Fund Balances
Total Liabilities and Fund Balances
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2010
SPECIAL REVENUE FUNDS
Emergency
Medical Business Sewer
Services Improvement Maintenance
$247,484 $5,154
149,050 $519,323
52,346
1,985
$450,865 $5,154 $519,323
$49,958 $169,526
307,723
49,958 477,249
1,985
398,922 $5,154 42,074
400,907 5,154 42,074
$450,865 $5,154 $519,323
80
DEBT SERVICE FUNDS
Peacock Gap Mariposa
Assessment Assessment
District District
$2,875 $16,382
$2,875 $16,382
$2,875 $16,382
2,875 16,382
$2,875 $16,382
DEBT SERVICE FUNDS CAPITAL PROJECT FUNDS
1997 Redevelopment
Financing Agency Park
Authority Debt Capital Bedroom Assessment Capital Open
Revenue Bonds Service Improvement Tax Districts Projects Space
$146,168 $34,085 $150,326 $32,821 $223,741 $22,453 $141,009
10,590
373,680
33
$146,168 $44,708 $524,006 $32,821 $223,741 $22,453 $141,009
$149,263
149,263
$146,168 $44,708
374,743 $32,821 $223,741 $22,453 $141,009
146,168 44,708 374,743 32,821 223,741 22,453 141,009
$146,168 $44,708 $524,006 $32,821 $223,741 $22,453 $141,009
(Continued)
81
ASSETS
Cash and investments
Restricted cash and investments
Receivables:
Accounts
Taxes
Grants
Interest
Prep aids and deposits
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Developer bonds payable
Due to other funds
Deferred revenue
Total Liabilities
Fund Balances:
Reserved for:
Prepaids and deposits
Debt service
Unreserved, undesignated
Total Fund Balances
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2010
CAP IT AL PROJECT FUNDS
Equipment Radio Telephone
Replacement Replacement Replacement
$2,331,424 $444,024
$107,342
$2,331,424 $444,024 $107,342
$30,085 $16,944
30,085 16,944
2,301,339 $444,024 90,398
2,301,339 444,024 90,398
Total Liabilities and Fund Balances $2,331,424 $444,024 $107,342
82
Total
Non-Major
Governmental
Funds
$9,665,909
117,932
1,497,511
64,660
837,240
33
1,985
60,226
$12,245,496
$933,712
1,500
367,949
244,419
1,547,580
1,985
210,133
10,485,798
10,697,916
$12,245,496
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CITY OF SAN RAFAEL
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
SPECIAL REVENUE FUNDS
Baypoint
Lagoons Household
Recreation Assessment Hazmat
Revolving District Facility Childcare
REVENUES
Taxes and special assessments $25,368
License and permits
Use of money and propeliies $375 885 $422 $88
Intergovernmental 20,000 5,282 315,376
Charges for services 2,150,833 1,522,754 3,024,885
Other revenue 64,628 2,800
Total Revenues 2,235,836 26,253 1,528,458 3,343,149
EXPENDITURES
Current:
General government
Public safety 1,486,626
Public works and parks 5,079 7
Culture and recreation 3,510,563 3,388,120
Capital outlay
Capital improvement/special projects 72,178 2,204
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 3,582,741 5,079 1,488,837 3,388,120
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,346,905) 21,174 39,621 (44,971)
OTHER FINANCING SOURCES (USES)
Bond issuance
Payment to refunded bonds
Bond premiums
Transfers in 1,538,350
Transfers out
Total Other Financing Sources (Uses) 1,538,350
Net Change in Fund Balances 191,445 21,174 39,621 (44,971)
Fund Balance, Beginning 32,439 108,837 91,714 63,083
Fund Balance, Ending $223,884 $130,011 $131,335 $18,112
84
Street
Maintenance
and Cleaning
$5,039
536,160
1,139
542,338
100,835
100,835
441,503
68,790
68,790
510,293
658,312
$1,168,605
SPECIAL REVENUE FUNDS
Loch Lomond
Assessment Public Development Parkland
District Library Safety Stormwater Services Grants Dedication
$14,958 $540
$3,750
6,593 $40,577 $1,358 6,701 $31,739 $3,320 9,394
206,487 77,503 930,540
5,640 5,630 792,009 25,215
3,605 6,290 125,171 18,073 220
21,551 256,309 90,781 802,460 182,125 951,933 10,154
139,714 100,000
55 971,816 10,799
98,654 291,652
166,708 50,157 28,541
241,333 6,133 102,753 536,694
55 339,987 145,847 1,138,524 113,552 978,503 28,541
21,496 (83,678) (55,066) (336,064) 68,573 (26,570) (18,387)
65,000 625,330 109,450
(342,647)
65,000 625,330 (233,197)
21,496 (83,678) 9,934 289,266 68,573 (259,767) (18,387)
858,853 199,908 199,063 689,249 628,042 897,424 1,237,197
$880,349 $116,230 $208,997 $978,515 $696,615 $637,657 $1,218,810
(Continued)
85
CITY OF SAN RAFAEL
CO:MBINING STATEIVlENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNIVlENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
SPECIAL REVENUE FUNDS DEBT SERVICE FUNDS
Emergency Peacock Gap Mariposa
Medical Business Sewer Assessment Assessment
Services Improvement Maintenance District District
REVENUES
Taxes and special assessments $3,489,494
License and permits
Use of money and properties 2,788 $25 $123
Intergovernmental 13,000
Charges for services 2,187,789 $1,908,257
Other revenue 15,580
Total Revenues 5,680,071 28,605 1,908,257 123
EXPENDITURES
Current:
General government 8,648 28,362
Public safety 5,629,463
Public works and parks 1,718,656
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 5,638,111 28,362 1,718,656
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 41,960 243 189,601 123
OTHER FINANCING SOURCES (USES)
Bond issuance
Payment to refunded bonds
Bond premiums
Transfers in
Transfers out (190,000) (189,600)
Total Other Financing Sources (Uses) (190,000) (189,600)
Net Change in Fund Balances (148,040) 243 123
Fund Balance, Beginning 548,947 4,911 42,073 $2,875 16,259
Fund Balance, Ending $400,907 $5,154 $42,074 $2,875 $16,382
86
CAPITAL PROJECT FUNDS
1997 Redevelopment
Financing Agency Park
Authority Debt Capital Bedroom Assessment Capital Open
Revenue Bonds Service Improvement Tax Districts Projects Space
$3,474,428 $2,168
$1,170 129 $2,497 242 $164 $1,072
557,573
7,229
1,170 3,474,557 560,070 2,410 7,393 1,072
576,396
70,531 3,640
455,000 2,055,000
6,683 1,964,852
461,683 4,019,852 646,927 3,640
(460,513) (545,295) (86,857) 2,410 7,393 (2,568)
14,660,000
(14,315,000)
1,038,185
75,393
(1,900) (829,008)
(1,900) 554,177 75,393
(462,413) 8,882 (11,464) 2,410 7,393 (2,568)
608,581 35,826 386,207 30,411 $223,741 15,060 143,577
$146,168 $44,708 $374,743 $32,821 $223,741 $22,453 $141,009
(Continued)
87
CITY OF SAN RAFAEL
COMBINING STATEJ\1ENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30,2010
CAP IT AL PROJECT FUNDS
Equipment Radio Telephone
Replacement Replacement Replacement
REVENUES
Taxes and special assessments
License and permits
Use of money and properties $16,318 $1,187 $31
Intergovernmental
Charges for services 490,990 648,660 378,020
Other revenue 93,334
Total Revenues 600,642 649,847 378,051
EXPENDITURES
Cunent:
General government 307,908 637,299 282,415
Public safety
Public works and parks 56,598
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal 63,486
Interest and fiscal charges 7,837
Total Expenditures 364,506 637,299 353,738
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 236,136 12,548 24,313
OTHER FINANCING SOURCES (USES)
Bond issuance
Payment to refunded bonds
Bond premiums
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances 236,136 12,548 24,313
Fund Balance, Beginning 2,065,203 431,476 66,085
Fund Balance, Ending $2,301,339 $444,024 $90,398
88
Total
Non-Major
Governmental
Funds
$7,006,956
3,750
132,237
2,661,921
13,140,682
338,069
23,283,615
1,264,632
7,355,803
2,863,845
7,288,989
821,802
1,035,466
2,573,486
1,979,372
25,183,395
(1,899,780)
14,660,000
(14,315,000)
1,038,185
2,482,313
(1,553,155)
2,312,343
412,563
10,285,353
$10,697,916
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 30, 2010
SPECIAL REVENUE FUNDS
Recreation Revolving Baypoint Lagoons Assessment District
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget ActUal (Negative)
REVENUES
Taxes and special assessments $25,000 $25,368 $368
Licenses and pennits
Fines and forfeitures
Use of money and properties $5,000 $375 ($4,625) 800 885 85
Intergovernmental 20,000 20,000
Charges for services 2,141,160 2,150,833 9,673
Other revenue 36,050 64,628 28,578
Total Revenues 2,202,210 2,235,836 33,626 25,800 26,253 453
EXPENDITURES
Current:
General government
Public safety
Public works and parks 5,079 (5,079)
Culture and recreation 3,314,299 3,510,563 (196,264)
Capital outlay 2,480 2,480
Capital improvement/special projects 31,200 72,178 (40,978)
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 3,347,979 3,582,741 (234,762) 5,079 (5,079)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,l45,769) (1,346,905) (201,136) 25,800 21,174 (4,626)
OTHER FINANCING SOURCES (USES)
Bond issuance
Payment to refunded bonds
Bond premiums
Transfers in 1,338,350 1,538,350 200,000
Transfers out
Total Other Financing Sources (Uses) 1,338,350 1,538,350 200,000
FUND BALANCES, BEGINNING OF YEAR
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES $192,581 191,445 ($1,136) $25,800 21,174 ($4,626)
FUND BALANCES, BEGINNING OF YEAR 32,439 108,837
FUND BALANCES, END OF YEAR $223,884 $130,011
90
Household Hazmat Facility
Final
Budget
$1,550
7,330
1,385,780
300
1,394,960
1,329,744
3,200
1,332,944
62,016
$62,016
Actual
$422
5,282
1,522,754
1,528,458
1,486,626
7
2,204
1,488,837
39,621
39,621
91,714
$131,335
Variance
Positive
(Negative)
($1,128)
(2,048)
136,974
(300)
133,498
(156,882)
(7)
996
(155,893)
(22,395)
($22,395)
SPECIAL REVENUE FUNDS
Final
Budget
$316,475
3,175,190
3,491,665
3,469,730
11,890
3,481,620
10,045
Childcare
Variance
Positive
Actual (Negative)
$88 $88
315,376 (1,099)
3,024,885 (150,305)
2,800 2,800
3,343,149 (148,516)
3,388,120 81,610
11,890
3,388,120 93,500
(44,971) (55,016)
41,000 (41,000)
(41,000) ________ 4_1,-,0_00 _
$10,045 (44,971) ===($=55=,0=16:::::)
63,083
$18,112
91
Street Maintenance and Cleaning
Final
Budget
$21,090
520,830
2,580
544,500
55,911
55,911
488,589
68,790
Actual
$5,039
536,160
1,139
542,338
100,835
100,835
441,503
68,790
___ 6_8,:....7_90_ 68,790
$557,379 510,293
658,312
$1,168,605
Variance
Positive
(Negative)
($16,051)
15,330
(1,441)
(2,162)
(44,924)
(44,924)
(47,086)
($47,086)
(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 30,2010
SPECIAL REVENUE FUNDS
Loch Lomond Assessment District Library
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $14,800 $14,958 $158
Licenses and permits
Fines and forfeitures
Use of money and properties 20,000 6,593 (13,407) $40,400 $40,577 $177
Intergovernmental 338,036 206,487 (131,549)
Charges for services 4,000 5,640 1,640
Other revenue 34,000 3,605 (30,395)
Total Revenues 34,800 21,551 (13,249) 416,436 256,309 (160,127)
EXPENDITURES
Current:
General government
Public safety
Public works and parks 55 (55)
Culture and recreation 156,975 98,654 58,321
Capital outlay
Capital improvement/special projects 219,610 241,333 (21,723)
Debt service
Principle
Interest and fiscal charges
Total Expenditures 55 (55) 376,585 339,987 36,598
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 34,800 21,496 (13,304) 39,851 (83,678) (123,529)
OTHER FINANCING SOURCES (USES)
Bond issuance
Payment to refunded bonds
Bond premiums
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES $34,800 21,496 ($13,304) $39,851 (83,678) ($123,529)
FUND BALANCES, BEGINNING OF YEAR 858,853 199,908
FUND BALANCES, END OF YEAR $880,349 $116,230
92
Final
Budget
$1,220
65,350
3,000
500
70,070
145,902
1,000
146,902
(76,832)
65,000
65,000
($11,832)
Public Safety
Actual
$1,358
77,503
5,630
6,290
90,781
139,714
6,133
145,847
Variance
Positive
(Negative)
$138
12,153
2,630
5,790
20,711
6,188
(5,133)
1,055
(55,066) ___ 2_1,::....7_66_
65,000
65,000
9,934 $21,766
199,063
$208,997
SPECIAL REVENUE FUNDS
Final
Budget
$5,000
2,260
10,950
793,000
811,210
1,238,439
324,740
1,563,179
Stormwater
Actual
$3,750
6,701
792,009
802,460
971,816
166,708
1,138,524
Variance
Positive
(Negative)
($1,250)
(2,260)
(4,249)
(991)
(8,750)
266,623
158,032
424,655
(751,969) _----:;..(3_3--'6,'--06_4-'-) __ 4_1--,5,,--90_5_
625,330 625,330
625,330 625,330
($126,639) 289,266 $415,905
689,249
$978,515
93
Development Services
Final
Budget
$34,750
34,750
34,750
$34,750
Actual
$31,739
25,215
125,171
182,125
10,799
102,753
113,552
68,573
68,573
628,042
$696,615
Variance
Positive
(Negative)
($3,011)
25,215
125,171
147,375
(10,799)
(102,753)
(113,552)
$33,823
$33,823
(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 30, 2010
SPECIAL REVENUE FUNDS
Grants Parkland Dedication
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $540 $540
Licenses and permits
Fines and forfeitures
Use of money and properties $26,850 $3,320 ($23,530) 9,394 9,394
Intergovernmental 1,752,421 930,540 (821,881)
Charges for services
Other revenue 139,410 18,073 (121,337) 220 220
Total Revenues 1,918,681 951,933 (966,748) 10,154 10,154
EXPENDITURES
Current:
General government
Public safety 111,630 100,000 11,630
Public works and parks
Culture and recreation 396,882 291,652 105,230
Capital outlay 51,565 50,157 1,408 $110,000 28,541 81,459
Capital improvement/special projects 1,592,627 536,694 1,055,933
Debt service:
Principle
Interest and fiscal charges
Total Expenditures 2,152,704 978,503 1,174,201 110,000 28,541 81,459
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (234,023) (26,570) 207,453 (110,000) (18,387) 91,613
OTHER FINANCING SOURCES (USES)
Bond issuance
Payment to refunded bonds
Bond premiums
Transfers in 109,450 109,450
Transfers out (342,649) (342,647) 2
Total Other Financing Sources (Uses) (233,199) (233,197) 2
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES ($467,222) (259,767) $207,455 ($110,000) (18,387) $91,613
FUND BALANCES, BEGINNING OF YEAR 897,424 1,237,197
FUND BALANCES, END OF YEAR $637,657 $1,218,810
94
Emergency Medical Services
Final
Budget
$3,491,000
2,300,000
5,791,000
17,680
5,382,664
1,000
5,401,344
389,656
Actual
$3,489,494
2,788
2,187,789
5,680,071
8,648
5,629,463
5,638,111
41,960
Variance
Positive
(Negative)
($1,506)
2,788
(112,211)
(110,929)
9,032
(246,799)
1,000
(236,767)
(347,696)
(190,000) _--,,"(1_9....;0,,-0o_0-,-) ____ _
(190,000) (190,000) ____ _
$199,656 (148,040) ($347,696)
548,947
$400,907
SPECIAL REVENUE FUNDS
Business Improvement Sewer Maintenance
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$560 $25 ($535) $2,050 ($2,050)
16,510 13,000 (3,510)
2,085,790 $1,908,257 (177,533)
22,520 15,580 (6,940)
39,590 28,605 (10,985) 2,087,840 1,908,257 (179,583)
39,580 28,362 11,218
1,885,066 1,718,656 166,410
39,580 28,362 11,218 1,885,066 1,718,656 166,410
10 243 233 202,774 189,601 (13,173)
089,600) _--,,"0_8....;9,,-60_°..::....) ____ _
(189,600) _---'-°_8....;9,'-60_°..::....) ____ _
$10 243 $233 $13,174 ($13,173)
4,911 42,073
$5,154 $42,074
(Continued)
95
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, 2010
DEBT SERVICE FUND
Mariposa Assessment District 1997 Financing Authority Revenue Bonds
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $220,330 ($220,330)
Licenses and pennits
Fines and forfeitures
Use of money and properties $1,080 $123 ($957) 2,620 $1,170 (1,450)
Intergovernmental
Charges for services
Other revenue
Total Revenues 1,080 123 (957) 222,950 1,170 (221,780)
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principle 181,000 455,000 (274,000)
Interest and fiscal charges 34,850 6,683 28,167
Total Expenditures 215,850 461,683 (245,833)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,080 123 (957) 7,100 (460,513) ($467,613)
OTHER FINANCING SOURCES (USES)
Bond issuance
Payment to refunded bonds
Bond premiums
Transfers in
Transfers out (1,900) (1,900)
Total Other Financing Sources (Uses) (1,900) (1,900)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES $1,080 123 ($957) $5,200 (462,413) ($467,613)
FUND BALANCES, BEGINNING OF YEAR 16,259 608,581
FUND BALANCES, END OF YEAR $16,382 $146,168
96
CAP IT AL PROJECT FUND
Redevelopment Agency Debt Service Capital Improvement Open Space
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$3,474,440 $3,474,428 ($12)
129 129 $2,497 $2,497 $5,470 $1,072 ($4,398)
$575,400 557,573 (17,827)
3,474,440 3,474,557 117 $575,400 560,070 (15,330) 5,470 1,072 (4,398)
575,400 576,396 (996)
71,074 70,531 543 12,960 3,640 9,320
2,055,000 2,055,000
1,973,630 1,964,852 8,778
4,028,630 4,019,852 8,778 646,474 646,927 (453) 12,960 3,640 9,320
(554,190) (545,295) $8,895 (71,074) (86,857) (15,783) (7,490) (2,568) 4,922
14,660,015 14,660,000 (15)
(14,315,000) (14,315,000)
1,038,185 1,038,185
3 (3) 20,393 75,393 55,000
(829,013) (829,008) 5
554,190 554,177 (13) 20,393 75,393 55,000
8,882 $8,882 ($50,681) (11,464) $39,217 ($7,490) (2,568) $4,922
35,826 386,207 143,577
$44,708 $374,743 $141,009
(Continued)
97
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 30,2010
CAPITAL PROJECT FUND
Equipment Replacement Radio Replacement
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments
Licenses and permits
Fines and forfeitures
Use of money and properties $42,000 $16,318 ($25,682) $32,860 $1,187 ($31,673)
Intergovernmental
Charges for services 490,990 490,990 648,660 648,660
Other revenue 46,950 93,334 46,384
Total Revenues 579,940 600,642 20,702 681,520 649,847 (31,673)
EXPENDITURES
Current:
General government 434,277 307,908 126,369 661,970 637,299 24,671
Public safety 65,000 65,000
Public works and parks 414,040 56,598 357,442
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principle
Interest and fiscal charges
Total Expenditures 913,317 364,506 548,811 661,970 637,299 24,671
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (333,377) 236,136 569,513 19,550 12,548 (7,002)
OTHER FINANCING SOURCES (USES)
Bond issuance
Payment to refunded bonds
Bond premiums
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES ($333,377) 236,136 $569,513 $19,550 12,548 ($7,002)
FUND BALANCES, BEGINNING OF YEAR 2,065,203 431,476
FUND BALANCES, END OF YEAR $2,301,339 $444,024
98
CAPITAL PROJECT FUND
Telephone Replacement
Final
Budget
$300
378,020
378,320
280,355
63,490
7,840
351,685
26,635
$26,635
Actual
$31
378,020
378,051
282,415
63,486
7,837
353,738
24,313
24,313
66,085
$90,398
Variance
Positive
(Negative)
($269)
(269)
(2,060)
4
3
(2,053)
(2,322)
($2,322)
99
This Page Left Intentionally Blank
INTERNAL SERVICE FUNDS
Internal service funds account for department services and financing performed for other departments
within the same governmental jurisdiction. Funding COlnes 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 cOlnpensation, 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 adlninistrations are paid from this fund.
Print Shop and Mail Fund -Set up to maintain sufficient reserves for printing and mail paYlnent.
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 Liabilities
NET ASSETS:
Unrestricted
Total Net Assets
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
JUNE 30, 2010
Building Employee Liability
Maintenance Benefits Insurance
$276,759
$1,053,683
$827,090
276,759 1,053,683 827,090
2,822 63
845,684
848,506 63
276,759 205,177 827,027
$276,759 $205,177 $827,027
102
Workers'
Compensation
$371,656
18,594
125,241
515,491
20,430
20,430
495,061
$495,061
Dental
Insurance
$67,266
67,266
3,816
3,816
63,450
$63,450
Print Shop
and Mail
$2,525
2,525
2,525
2,525
Total
$718,206
1,053,683
845,684
125,241
2,742,814
29,656
845,684
875,340
1,867,474
$1,867,474
103
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2010
Building Employee Liability Workers'
Maintenance Benefits Insurance Compensation
OPERATING REVENUES
Charges for current services $110,690 $1,262,677 $1,570,630 $1,888,327
Other operating revenues 1,680,391 135,513 7,750
Total Operating Revenues 110,690 2,943,068 1,706,143 1,896,077
OPERATING EXPENSES
Insurance premiums and claims 2,472,579 1,009,422 1,089,872
Maintenance and repairs 53,176
General and administrative 785,576
Total Operating Expenses 53,176 3,258,155 1,009,422 1,089,872
Operating Income (Loss) 57,514 (315,087) 696,721 806,205
NONOPERATING REVENUES (EXPENSES)
Investment income 2,016 8,404 24,367
Total Nonoperating
Revenues (Expenses) 2,016 8,404 24,367
Net income (loss) before transfers 59,530 (315,087) 705,125 830,572
Transfers in 144,000 330,000
Transfers out (55,000) (400,000) (700,000)
Change in Net Assets 148,530 14,913 305,125 130,572
NET ASSETS, BEGINNING OF YEAR 128,229 190,264 521,902 364,489
NET ASSETS, END OF YEAR $276,759 $205,177 $827,027 $495,061
104
Dental Print Shop
Insurance and Mail Total
$508,313 $148,649 $5,489,286
8,533 1,832,187
516,846 148,649 7,321,473
457,139 132,140 5,161,152
29,651 82,827
48,083 833,659
457,139 209,874 6,077,638
59,707 (61,225) 1,243,835
533 35,320
533 35,320
60,240 (61,225) 1,279,155
55,890 529,890
(1,155,000)
60,240 (5,335) 654,045
3,210 5,335 1,213,429
$63,450 $1,867,474
105
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2010
Building Employee
Maintenance Benefits
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $110,690 $1,256,173
Cash payments to suppliers for goods and services (73,291) (3,256,670)
Other operating revenues 1,680,391
Cash Flows from Operating Activities 37,399 (320,106)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts (payments) 89,000 320,106
Cash Flows from Noncapital
Financing Activities 89,000 320,106
CASH FLOWS FROM INVESTING ACTIVITIES
Investment received 2,016
Cash Flows from Investing Activities 2,016
Net increase (decrease) in cash and cash equivalents 128,415
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 148,344
CASH AND CASH EQUIVALENTS, END OF YEAR $276,759
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss) $57,514 ($315,087)
Net change in assets and liabilities:
Accounts receivable (6,504)
Prepaids and deposits
Accounts payable (20,115) 1,485
Claims payable
Net Cash Provided by (Used in) Operating Activities $37,399 ($320,106)
106
Liability Workers'
Insurance Compensation
$1,570,630 $1,888,327
(1,415,698) (4,506,586)
135,513 7,750
290,445 (2,610,509)
(1,227,090) 136,984
(1,227,090) 136,984
8,404 24,367
8,404 24,367
(928,241) (2,449,158)
928,241 2,820,814
$371,656
$696,721 $806,205
1,729 (121,783)
(644) 14,679
(407,361) (3,309,610)
$290,445 ($2,610,509)
Dental Print Shop
Insurance and Mail Total
$508,313 $148,649 $5,482,782
(457,473) (216,991) (9,926,709)
8,533 1,832,187
59,373 (68,342) (2,611,740)
55,890 (625,110)
55,890 (625,110)
533 35,320
533 35,320
59,906 (12,452) (3,201,530)
7,360 14,977 3,919,736
$67,266 $2,525 $718,206
$59,707 ($61,225) $1,243,835
(6,504)
(120,054)
(334) (7,117) (12,046)
(3,716,971)
$59,373 ($68,342) ($2,611,740)
107
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STATISTICAL SECTION
This Page Left Intentionally Blank
STATISTICAL SECTION
This part of the City'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
information 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 performance and
well being have changed over time:
1. Net Assets by Component
2. Changes in Net Assets
3. Fund Balances of Governmental 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:
1. Ratio of Outstanding Debt by Type
2. Computation of Direct and Overlapping Debt
3. Computation of Legal Bonded Debt Margin
4. Revenue Bond Coverage Parking Facility
5. Redevelopment Pledged Revenue Coverage
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:
1. 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 FunctionlProgram
3. Capital Asset Statistics by FunctionlProgram
Sources
Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial
Reports for the relevant year. The City implemented GASB Statement 34 in 2003; schedules presenting
govemmentwide information include information beginning in that year.
111
$245 ,000
T
h $195,000
o
u
s $145 ,000
a
n
d
s
$95 ,000
$45,000
CITY OF SAN RAFAEL
NET ASSETS BY COMPONENT
Last Eight Fiscal Years
(accrual basis of accounting) .
($5 ,000) ~=r=~===!=~::::=t~~!==~=r=~==!=~~~~~
2003 2004 2005 2006 2007 2008 2009 2010
Net of Related Debt Restricted Unrestricted
As of June 30
2003 2004 2005
Governmental activities
Invested in capital assets,
net of related debt $198,031,181 $202,215,793 $194,658,126
Restricted 2,933,294 2,708 ,397 2,378 ,641
Unrestricted 16 ,216,230 9,775 ,565 14,167,627
Total governmental activities net assets $217,180,705 $214,699,755 $211 ,204,394
Busin ess-type ac tivities
Invested in capital assets,
net of related debt $8,464,417 $8 ,749 ,750 $8 ,615,483
Unrestricted 1,078 ,245 1,447,467 1,900,504
Total business-type activities net assets $9,542 ,662 $10 ,197,217 $10 ,515 ,987
P rimary governmen t
Invested in capital assets,
net of related debt $206,495 ,598 $210,965 ,543 $203 ,273 ,609
Restricted 2 ,933 ,294 2,708,397 2,378 ,641
Unrestricted 17,294,475 11 ,223 ,032 16,068 ,131
Total primary government net assets $226 ,723 ,367 $224 ,896,972 $221,720,381
112
2006
$175,806,100
620,889
32,739,318
$209,166,307
$9,819,435
2,113,659
$11,933,094
$185,625,535
620,889
34,852,977
$221,099,401
2007
$171,849,149
31,124,935
4,499,136
$207,473,220
$9,717,501
2,226,838
$11,944,339
$181,566,650
31,124,935
6,725,974
$219,417,559
As of June 30
2008
$176,724,820
26,848,900
4,273,937
$207,847,657
$10,130,329
2,471,117
$12,601,446
$186,855,149
26,848,900
6,745,054
$220,449,103
113
2009
$178,744,119
25,721,231
(700,985)
$203,764,365
$11,243,637
1,936,958
$13,180,595
$189,987,756
25,721,231
1,235,973
$216,944,960
2010
$173,536,144
26,150,254
(4,631,276)
$195,055,122
$10,950,825
2,017,354
$12,968,179
$184,486,969
26,150,254
(2,613,922)
$208,023,301
CITY OF SAN RAFAEL
CHANGES IN NET ASSETS
Last Eight Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2003 2004 2005 2006
Expenses
Governmental Activities:
General government $5,555,915 $5,074,335 $5,895,390 $6,252,533
Public safety 30,476,353 30,453,108 32,891,692 33,178,537
Public works and parks 27,237,899 16,043,092 16,820,453 23,401,246
Community development / redevelopment 3,727,315 3,921,422 4,624,345 4,194,249
Culture and recreation 9,055,681 7,444,339 8,450,017 8,652,445
Interest on long-term debt 4,082,760 2,516,659 2,129,818 1,725,559
Total Governmental Activities Expenses 80,135,923 65,452,955 70,811,715 77,404,569
Business-Type Activities:
Parking services 1,245,316 1,539,441 2,451,941 2,761,511
Total Business-Type Activities Expenses 1,245,316 1,539,441 2,451,941 2,761,511
Total Primary Government Expenses $81,381,239 $66,992,396 $73,263,656 $80,166,080
Component Unit:
San Rafael Sanitation District $5,708,208 $5,297,737 $5,288,582 $6,148,915
Program Revenues
Governmental Activities:
Charges for services:
General government $1,433,372 $1,487,595 $1,831,269 $402,094
Public safety 2,530,916 2,203,371 4,315,141 5,085,679
Public works and parks 3,072,849 2,697,858 3,298,076 3,799,861
Community development / redevelopment 1,691,427 1,982,211 1,974,527 3,190,832
Culture and recreation 3,688,418 3,960,777 3,924,360 4,368,274
Operating grants and contributions 6,003,700 5,252,820 3,321,135 2,745,570
Capital grants and contributions 1,744,556 573,485 606,589 3,936,474
Total Government Activities Program Revenues 20,165,238 18,158,117 19,271,097 23,528,784
Business-Type Activities:
Charges for services:
Parking services 1,810,479 2,307,432 2,604,066 3,025,380
Total Business-Type Activities Program Revenues 1,810,479 2,307,432 2,604,066 3,025,380
Total Primary Government Program Revenues $21,975,717 $20,465,549 $21,875,163 $26,554,164
Component Unit:
Charges for services:
San Rafael Sanitation District $5,566,610 $5,811,437 $6,060,993 $6,340,773
Net (Expense)/Revenue
Governmental Activities ($59,970,685) ($47,294,838) ($51,540,618) ($53,875,785)
Business-Type Activities 565,163 767,991 152,125 263,869
Total Primary Government Net Expense ($59,405,522) ($46,526,847) ($51,388,493) ($53,611,916)
Component Unit Activities ($141,598) $513,700 $772,411 $191,858
114
2007
$8,908,433
37,271,272
20,998,749
4,384,408
9,729,485
2,183,683
83,476,030
3,110,254
3,110,254
$86,586,284
$6,656,432
$1,512,814
5,279,785
4,030,060
2,815,009
4,521,004
3,701,901
2,786,761
24,647,334
3,242,046
3,242,046
$27,889,380
$7,857,916
($58,828,696)
131,792
($58,696,904)
$1,201,484
2008
$8,621,079
40,845,347
22,105,367
5,811,866
10,300,230
1,989,620
89,673,509
3,282,235
3,282,235
$92,955,744
$8,090,636
$1,494,784
5,562,072
4,983,288
3,247,024
4,870,884
3,463,616
3,239,509
26,861,177
4,161,936
4,161,936
$31,023,113
$9,366,305
($62,812,332)
879,701
($61,932,631)
$1,275,669
2009
$8,075,344
42,708,538
23,036,676
5,759,171
11,505,896
1,907,229
92,992,854
3,563,235
3,563,235
$96,556,089
$9,143,977
$1,738,685
5,906,445
4,753,817
2,915,872
5,253,683
3,544,248
7,311,173
31,423,923
4,454,490
4,454,490
$35,878,413
$10,567,647
($61,568,931)
891,255
($60,677 ,67 6)
$1,423,670
2010
$8,396,759
42,752,033
17,401,923
6,738,873
11,139,225
2,200,024
88,628,837
4,016,198
4,016,198
$92,645,035
$9,087,354
$1,665,460
6,308,912
3,916,874
2,830,179
5,280,458
3,721,055
2,116,906
25,839,844
4,244,404
4,244,404
$30,084,248
$11,559,549
($62,788,993)
228,206
($62,560,787)
$2,472,195
115
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
Gain (Loss) on disposal of assets
Miscellaneous
Special item -Court fines repayment
Transfers
Total Government Activities
Business-Type Activities:
Investrnentearnings
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
CHANGES IN NET ASSETS
(continued)
Last Eight Fiscal Years
(Accrual Basis of Accounting)
2003 2004
$13,983,697 $14,895,188
16,779,878 17,166,966
3,055,575 3,329,680
3,317,710 2,495,598
5,465,495 5,476,044
1,897,339 809,242
(500,819)
1,843,458 498,200
232,398 142,970
46,074,731 44,813,888
17,772 29,534
(232,398) (142,970)
(214,626) (113,4362
$45,860,105 $44,700,452
$560,269 $591,078
104,358 75,739
154,919
141,314
$805,941 $821,736
($13,895,954) ($2,480,950)
350,537 654,555
($13,545,4172 ($1,826,3952
$664,343 $1,335,436
116
2005 2006
$17,385,722 $20,848,887
17,132,100 18,188,524
3,642,184 3,017,488
4,657,817 372,726
5,151,205 6,963,448
1,112,548 1,248,409
876,907 361,195
15,720 201,191
49,974,203 51,201,868
28,522 44,536
40,735 1,309,893
(15,720) (201,191)
53,537 1,153,238
$50,027,740 $52,355,106
$125,959 $179,479
117,348 237,206
609,419 645,804
$852,726 $1,062,489
($1,566,415) ($2,673,917)
205,662 1,417,107
($1,360,753) ($1,256,8102
$1,625,137 $1,254,347
2007 2008 2009 2010
$20,360,475 22,195,606 $21,978,859 $21,684,131
24,484,356 25,764,457 21,970,262 19,055,124
2,998,925 3,503,555
3,210,317 3,489,494
331,620 257,320 197,989 171,518
1,678,912 1,558,243
2,941,149 2,868,332
2,405,934 2,317,664
8,830,955 9,242,241 1,561,835 1,411,583
1,669,181 1,583,056 717,968 302,180
221,791
491,488 296,454 461,224 541,390
(1,133,458)
212,170 344,080 361,190 458,300
58,245,712 63,186,769 57,485,639 54,079,750
91,623 121,486 49,084 17,678
(212,170) (344,080) (361,190) (458,300)
(120,547) (222,594) (312,106) (440,622)
$58,125,165 $62,964,175 $57,173,533 $53,639,128
$755,763 $803,071 $855,511 $823,187
367,887 . 341,032 206,752 93,274
3,546 3,540
340,642 577,860 381,144 415,391
$1,464,292 $1,725,509 $1,446,947 $1,331,852
($582,984) $374,437 ($4,083,292) ($8,709,243)
11,245 657,107 579,149 (212,416)
($571,739) $1,031,544 ($3,504,143) {$8,921,659)
$2,665,776 $3,001,178 $2,870,617 $3,804,047
117
Thousands
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
2001 2002
General Fund
Reserved
Unreserved
Total General Fund
All Other Governmental Funds
Reserved
Unreserved, reported in:
Special Revenue Funds
Capital Project Funds
Debt Service Funds
Expendable Trust Fund
Total all other governmental funds
CITY SAN RAFAEL
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2003 2004 2005 2006 2007 2008
Unreserved
As of June 30
2001 2002 2003 2004
$4,010,745 $3,347,494 $2,357,904 $1,451,036
6,155,738 5,112,926 4,139,618 4,246,152
$10,166,483 $8,460,420 $6,497,522 $5,697,188
$33,963,309 $22,579,186 $36,695,318 $32,471,197
13,861,241 13,195,852 6,317,972 5,574,048
461,953 422,188
$48,286,503 $36,197,226 $43,013,290 $38,045,245
(a) The change in total fund balance for the General Fund and other governmental funds
is explained in Management's Discussion and Analysis.
118
2009 2010
2005
$2,442,881
5,779,680
$8,222,561
$26,599,557
5,628,187
$32,227,744
As of June 30
2006 2007 2008 2009 2010
$2,335,391 $905,068 $2,196,153 $2,225,775 $1,763,622
3,362,151 5,016,929 4,022,612 1,670,455 5,038,173
$5,697,542 $5,921,997 $6,218,765 $3,896,230 $6,801,795 (a)
$21,603,724 $20,773,760 $17,599,142 $16,680,568 $15,352,723
7,168,753 8,107,477 7,413,808 8,641,239 8,778,027
35,430 (1,030,293) 4,527,627
4,734,986 3,315,764 3,360,540
$28,772,477 $33,616,223 $28,364,144 $27,652,054 $28,658,377 (a)
119
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,
2001 2002 2003 2004 2005
Revenues
Taxes and special assessments $39,753,729 $38,530,602 $39,284,643 $40,875,826 $42,901,520
Licenses and permits 844,793 690,077 735,109 928,303 929,993
Fines and forfeitures 1,337,617 773,239 770,632 791,975 1,088,459
Use of money and properties 3,989,893 2,465,306 1,897,339 1,024,199 1,244,406
Intergovernmental 9,223,148 8,590,790 9,405,422 8,049,002 10,522,095
Charges for services 12,019,807 9,704,1l3 10,102,392 10,423,754 11,407,622
Other revenue 4,684,447 1,148,767 3,568,297 735,976 1,135,485
Total Revenues 71,853,434 61,902,894 65,763,834 62,829,035 69,229,580
Expenditures
Current:
General government 5,737,343 6,188,702 4,740,703 5,014,452 5,539,191
Public safety 24,437,700 25,898,206 28,041,079 28,863,197 31,784,872
Public works and parks 8,669,755 9,329,346 9,491,552 9,257,991 9,294,419
Community development / redevelopment 3,454,234 3,610,108 3,253,947 3,875,542 3,763,614
Culture and recreation 6,381,725 7,077,117 7,176,097 7,145,264 7,538,607
Capital outlay 2,923,669 307,483 125,884 31,703 1,027,267
Capital improvement / special projects 10,935,705 15,760,086 11,058,796 9,825,103 9,253,661
Debt service:
Capitalized lease obligation 197,132 10,775 141,197
Principal 1,786,000 1,849,000 24,290,000 2,360,000 2,585,000
Interest and fiscal charges 2,746,333 2,641,111 4,046,170 2,456,357 2,140,673
Total Expenditures 67,072,464 72,661,159 92,421,360 68,840,384 73,068,501
Excess (deficiency) of revenues over
(under) expenditures 4,780,970 (10,758,265) (26,657,526) (6,011,349) (3,838,921)
Other Financing Sources (Uses)
Issuance of debt 32,625,000
Payment to refunded bonds
Bond premiums
Capital lease for equipment acquisition
Contribution from Sanitation District 744,556
Proceeds from sale of capital asset
Transfers in 7,070,234 5,750,044 42,503,976 5,222,868 8,636,544
Transfers (out) (7,830,234) (6,432,801) (42,971,248) (4,979,898) (7,740,324)
Total other financing sources (uses) (760,000) (682,757) 32,902,284 242,970 896,220
Net Change in fund balances $4,020,970 ($11,441,022) $6,244,758 ($5,768,379) ($2,942,701)
Debt service as a percentage of
noncapital expenditures 8.5% 7.9% 35.1% 8.2% 7.8%
120
Fiscal Year Ended June 30,
2006 2007 2008 2009 2010
$44,901,544 $52,472,246 $56.129,195 $51,019,143 $47,678,541
1,175,030 1,157,981 1,489,748 1,472,913 1,518,819
622,494 515,528 797,081 660,338 787,411
1,316,558 1,744,688 1,584,508 847,120 433,874
11,705,917 12,760,496 12,081,968 17,518,670 13,001,703
13.104,572 13,504,621 15,607,460 16,384,265 15,787,325
1,475,078 1,468,743 815,704 759,320 716,760
74,301,193 83,624,303 88,505,664 88,661,769 79,924,433
6,200,338 8,188,999 8,288,170 8,059,526 7,997,067
33,321,967 36,264,321 40,299,862 41,209,972 39,574,091
10,622,585 11,972,537 13,641,665 12,926,646 10,731,669
4,184,084 4,319,042 5,786,661 5,572,079 4,398,594
8,409,833 9,005,370 9,820,365 10,233,361 9,605,684
60,411 6,716,630 6,243,517 5,048,044 1,890,559
13,200,872 1,189,613 5,124,091 6,606,857 3,436,608
130,315
2,525,000 2,287,255 2,504,370 2,714,358 2,804,258
1,878,265 1,829,091 1,776,354 1,683,240 1,979,372
80,533,670 81,772,858 93,485,055 94,054,083 82,417,902
(6,232,477) 1,851,445 (4,979,391) (5,392,314) (2,493,469)
14,660,000
(14,315,000)
1,038,185
318,000
221,791
6,925,107 6,812,260 6,353,216 8,972,495 7,494,560
(6,672,916) (6,958,046) (6,329,136) (6,614,806) (6,411,150)
252.191 172,214 24,080 2,357,689 2,688,386
($5,980,286) $2,023,659 ($4,955,311 ) ($3,034,625) $194,917
6.7% 5.6% 5.2% 5.3% 6.2%
121
CITY OF SAN RAFAEL
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST NINE FISCAL YEARS
$12,000,----------------------------------,
$10,000 []
$8,000
$6,000
$4,000
$2,000
2002 2003 2004 2005 2006 2007 2008 2009 2010
I--Unsecured Property Secured Property I
Real ProEer~ Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct
Year ProEerty ProEerty ProEerty Other ProEer~ ProEerty Assessed {a} Full Market {a} Tax Rate {b}
2002 $4,516,490,542 $1,410,153,485 $126,299,238 $78,693,794 $6,131,637,059 $6,131,637,059 $6,131,637,059 0.29149%
2003 4,827,556,658 1,480,344,464 128,546,036 74,236,658 6,510,683,816 $445,297,553 6,955,981,369 6,955,981,369 0.32195% .
2004 5,160,984,286 1,514,445,365 130,514,420 91,737,340 6,897,681,411 431,291,562 7,328,972,973 7,328,972,973 0.32010%
2005 5,510,630,728 1,546,579,852 146,822,250 93,875,824 7,297,908,654 406,163,129 7,704,071,783 7,704,071,783 0.30834%
2006 6,018,318,932 1,618,091,589 177,974,231 91,321,393 7,905,706,145 407,016,133 8,312,722,278 8,312,722,278 0.30792%
2007 6,544,841,348 1,745,483,576 197,040,979 122,977,950 8,610,343,853 376,890,454 8,987,234,307 8,987,234,307 0.30328%
2008 7,024,610,641 1,824,656,505 214,341,528 105,409,028 9,169,017,702 362,727,209 9,531,744,911 9,531,744,911 0.30273%
2009 7,357,121,277 1,941,927,620 234,669,841 129,177,651 9,662,896,389 374,976,613 10,037,873,002 10,037,873,002 0.30752%
2010 7,335,863,721 2,052,276,292 244,857,019 130,177,994 9,763,175,026 401,201,906 10,164,376,932 10,164,376,932 0.19215%
Source: HdL Coren & Cone, Marin County Assessor 2001/02-2009/10 Combined Tax Rolls
(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.
122
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
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 0.154 0.295 0.6483 0.0461 1.1430
2005 0.154 0.295 0.6593 0.0461 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
2010 0.154 0.295 0.7402 0.0461 1.2349
Notes:
(1) Like other cities, San Rafael includes several property tax rate areas with different rates. A mean average is indicated.
Source: Marin County Assessors Office 1999/00 -2009/10 Tax Rate Tables
123
CITY OF SAN RAFAEL
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND TEN YEARS AGO
2009-10 1999-2000
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
N orthgate Mall Associates $112,797,140 1.1% $89,597,441 1.7%
SR Corporation Center Phase 1 72,881,400 0.7% 0.0%
Corac LLC 82,587,760 0.8% 0.0%
Sutter Health 44,602,859 0.4% 0.0%
Robert Dickson Trust 44,076,750 0.4% 0.0%
Regency Center II Associates LP 41,716,937 0.4% 34,230,569 0.7%
SR Corporation Center Phase Two 40,204,768 0.4% 0.0%
Marin Sanitary Service 39,236,039 0.4% 0.0%
4040 Civic Center 36,503,908 0.4% 0.0%
Bay Apartment Communities Inc 35,182,329 0.3% 0.0%
AMG Realty Partners LP 63,750,047 1.2%
Lucas Digital Ltd. LLC 40,982,654 0.8%
Autodesk Inc 33,142,893 0.6%
MHV Joint Venture 25,443,053 0.5%
Home Depot USA Inc. LIL etal 21,816,912 0.4%
F E Trotter Inc. 21,735,510 0.4%
Fair Isaac & Co. Inc 19,637,270 0.4%
WHL W Real Estate Ltd. Partners 19,037,112 0.4%
Subtotal $549,789,890 5.4% $369,373,461 7.2%
Total Net Assessed Valuation:
Fiscal Year 2009-2010 $10,164,376,932
Fiscal Year 1999-2000 $5,163,095,206
Source: HdL Coren & Cone, Marin County Assessor 1999-2000 & 2009-2010 Net Taxable Value History
124
III $24
§ $23
:: $22
:i $21
$20
$19
$18
$17
$16
$15
$14
$13
$12
$11
$10
$9
$8
$7
$6
Fiscal
~
2001
CITY OF SAN RAFAEL
PROPERTY TAX LEVIES AND COLLECTIONS (1)
LAST TEN FISCAL YEARS
I'\.
~ ...
I-+-Allocations I ~ ~
I A' I ./ I-*-pportlonments I /' ..«
./
~
..... -------..
~
~
2002 2003 2004 2005 2006 2007 2008
.-
v
2009
Year Rate Levies Allocations Collections A,Q,Qortionments Delinguencies
2001 1.00 (2) $11,594,551 (2) $11,594,551 (2)
2002 1.00 (2) 12,293,952 (2) 12,293,952 (2)
2003 1.00 (2) 13,983,697 (2) 13,983,697 (2)
2004 1.00 (2) 14,895,188 (2) 14,895,188 (2)
2005 1.00 (2) 17,385,722 (2) 17,385,722 (2)
2006 1.00 (2) 20,848,887 (2) 20,848,887 (2)
2007 1.00 (2) 20,360,475 (2) 20,360,475 (2)
2008 1.00 (2) 22,195,606 (2) 22,195,606 (2)
2009 1.00 (2) 21,978,859 (2) 21,978,859 (2)
2010 1.00 (2) 21,702,536 (2) 21,702,536 (2)
Notes:
(1) Includes 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
125
~
2010
Delinquent taxes
as a Percent of
Allocations
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
'" $60 = S
:§
$50
$40
$30
$20
$10
$0
Fiscal
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
.2010
Fiscal
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2001
RDATax
Allocation
Bonds
$45,899,004
43,479,004
44,914,000
43 ,239,004
41,514,004
40,849,107
39,217,501
37,537,161
35,793,692
35,355,988
2002
CITY OF SAN RAFAEL
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
2003 2004 2005 2006 2007 2008
Total Governmental Total Business I
Governmental Activities
Financing Court Fine Capitalized
Authority Note Promissory Lease
Revenue Bonds Pal::able Note Obligations
$3,885,000 $169,000
3,335,000 169,000
2,820,000 169,000
2,340,000 169,000
1,685,000 169,000
1,155,000 169,000 $412,441
950,000 169,000 $1,029,717 596,927
780,000 169,000 816,119 401,155
455,000 169,000 594,100 198,816
169,000 363,328 135,330
Business-Tl::Ee Activities
Parking Total Percentage
Services Primary of Personal Per
Bonds Total Government Income {a} CaEita {a}
$49,953,004 0.30% $883.59
46,983,004 0.29% 828.76
$7,605,000 $7,605,000 55,508,000 0.34% 973.72
7,605,000 7,605,000 53,353,004 0.29% 933.04
7,605,000 7,605,000 50,973,004 0.26% 890.76
7,455,000 7,455,000 50,040,548 0.24% 872.56
7,300,000 7,300,000 49,263,145 0.22% 848.68
7,140,000 7,140,000 46,843,435 0.21% 804.39
6,975,000 6 ,975,000 44,185,608 N/A 757.08
6,805,000 6,805,000 42,828,646 N/A 728.11
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)
2009
Total
$49,953,004
46,983,004
47,903,000
45,748,004
43,368,004
42,585,548
41,963,145
39,703,435
37,210,608
36,023,646
(a) See Schedule of Demographic and Economic Statistics for personal income and population data.
126
2010
CITY OF SAN RAFAEL
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 2010
2009-10 Assessed Valuation:
Redevelopment Incremental Valuation:
Adjusted Assessed Valuation:
OVERLAPPING TAX AND ASSESS:MENT 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
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
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
$10,164,376,932
2,256,322,101
$7,908,054,831
Total Debt
6/30/2010
$131,855,000
55,095,315
173,450,000
8,160,810
18,559,941
14,119,213
64,388,301
$39,289,112
112,325,000
219,185
178,320
2,900,834
285,000
4,185,000
9,946,032
Less: City of San Rafael lease revenue bonds supported by enterprise revenues
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
% Applicable (1)
14.967%
73.925%
0.087%
67.066%
1.763%
0.008%
77.956%
14.942%
14.942%
14.942%
19.061%
14.967%
67.066%
77.956%
100.000%
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the City.
(2) Include City's share of Marin Emergency Radio Authority refunding revenue bonds.
City's Share of
Debt 6/30/10
$19,734,738
40,728,661
150,902
5,473,129
327,212
1,130
50,194,544
$116,610,316
$5,870,579
16,783,602
32,751
33,990
434,168
191,138
3,262,459
9,946,032
$36,554,719
6,805,000
$29,749,719
153,165,035
$146,360,035
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded
capital lease obligations.
Ratios to 2009-10 Assessed Valuation:
Total Overlapping Tax and Assessment Debt
Ratios to Adjusted Assessed Valuation:
Combined Direct Debt
Combined Total Debt
Gross Combined Total Debt
Net Combined Total Debt
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/10:
Source: California Municipal Statistics, Inc.
127
1.15%
0.13%
0.04%
1.95%
1.86%
$0
(2)
(3)
Fiscal
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
CITY OF SAN RAFAEL
COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30,2010
ASSESSED VALUATION: $10,164,376,932
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) 381,164,135
LESS AMOUNT OF DEBT SUBJECT TO LIMIT: 35,355,988
LEGAL BONDED DEBT MARGIN $345,808,147
Total net debt
Total Net Debt Legal applicable to the limit
Debt Applicable to Debt as a percentage
Limit Limit Margin of debt limit
$229,936,390 $43,479,004 $186,457,386 18.91%
260,849,301 44,914,000 215,935,301 17.22%
274,836,486 43,239,004 231,597,482 15.73%
288,902,692 41,514,004 247,388,688 14.37%
311,727,085 40,849,107 270,877,978 13.10%
337,021,287 39,217,501 297,803,786 11.64%
357,440,434 37,537,161 319,903,273 10.50%
376,420,238 35,793,692 340,626,546 9.51%
381,164,135 35,355,988 345,808,147 9.28%
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
128
4.00
3.00
2.00
1.00
0.00
2004
Fiscal Gross
Year Revenue {I}
2004 $ 2,336,966
2005 2,632,588
2006 3,069,915
2007 3,331,754
2008 4,089,112
2009 4,503,574
2010 4,262,082
2005
CITY OF SAN RAFAEL
REVENUE BOND COVERAGE
PARKING FACILITY
LAST SEVEN FISCAL YEARS
2006 2007 2008
j-+-Coverage I
2009
Debt Service Reguirements
Net Revenue
Operating Available for
Ex~enses {2} Debt Service Princi~al Interest Total
$ 1,498,740 $ 838,226
1,964,713 667,875 $ 431,958 $ 431,958
2,155,435 914,480 $ 150,000 344,441 494,441
2,344,285 987,469 155,000 339,904 494,904
2,692,086 1,397,026 160,000 335,216 495,216
2,924,365 1,579,209 165,000 330,379 495,379
3,343,681 918,401 170,000 325,285 495,285
2010
Coverage
N/A
1.55
1.85
2.00
2.82
3.19
1.85
Notes: On March 26,2003, the City Financing Authority issued lease revenue bonds for the design and construction of a new
(1) Includes all Parking Facility Operating Revenues and Non-operating Investment Revenue
(2) Includes all Parking Facility Operating Expenses less Depreciation and Interest
Source: City of San Rafael Annual Financial Statements
129
CITY OF SAN RAFAEL
REDEVELOPMENT PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
1999 RDA Tax Allocation Bonds
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Reguirements
Year Revenue Princi~al Interest Total Coverage
2001 $1,497,529 500,000 997,529 1,497,529 1.00
2002 1,499,475 525,000 974,445 1,499,445 1.00
2003 1,499,600 550,000 949,600 1,499,600 1.00
2004 1,497,881 575,000 922,881 1,497,881 1.00
2005 1,499,856 605,000 894,856 1,499,856 1.00
2006 1,495,525 630,000 865,525 1,495,525 1.00
2007 1,499,769 665,000 834,769 1,499,769 1.00
2008 1,497,469 695,000 802,469 1,497,469 1.00
2009 1,498,625 730,000 768,625 1,498,625 1.00
2010 1,255,830 765,000 490,830 1,255,830 1.00
2002 RDA Tax Allocation Bonds
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Reguirements
Year Revenue Princi~al Interest Total Coverage
2001 N/A N/A N/A N/A N/A
2002 N/A N/A N/A N/A N/A
2003 $2,069,768 $1,475,000 $594,768 $2,069,768 1.00
2004 2,069,425 1,100,000 969,425 2,069,425 1.00
2005 2,067,225 1,120,000 947,225 2,067,225 1.00
2006 2,069,575 1,145,000 924,575 2,069,575 1.00
2007 2,066,475 1,165,000 901,475 2,066,475 1.00
2008 2,070,381 1,195,000 876,381 2,071,381 1.00
2009 2,070,150 1,235,000 835,150 2,070,150 1.00
2010 2,068,338 1,290,000 778,338 2,068,338 1.00
2009 RDA Tax Allocation Bonds
Funding Source: RDA tax increment revenues
Fiscal
Year
2010
Notes:
Source:
Available Debt Service Requirements
Revenue Princi~al Interest Total Coverage
265,445 o 265,445 265,445 1.00
The 1999 RDA Tax Allocation Bonds, Current Interest Bonds portion were refunded by the insurance of the 2009 RDA Tax Allocation Bonds in
December 2009. The Capital Appreciation Bonds mature annually after December 1,2018. No pledged revenue is required for 1999 Capital Appreciation
Bonds at June 30, 2010.
San Rafael Finance Department
130
CITY OF SAN RAFAEL
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
23.00% $25 ,000
•
22.50%
22.00%'-------'------'-----------'-----'---'-----'---1----'------'------'
2001 2002 2003 2004 2005 2006 2007 2008 2009 20 10 ,
I _ City Population as a % of County Population 1
(/) $100
"C $90 s::: n:s $80 (/)
:l
0 $70 .s:::
I-$60
$50
$40
$30
I----+-Per Capita Personal Income (2) 1
Personal
Fiscal City Income (2)
Year Population (1) (in millions)
2001 56,534 $16,900
2002 56,691 16,159
2003 57,006 16,341
2004 57,182 18,115
2005 57,224 19,485
2006 57,349 21,266
2007 58,047 22,590
2008 58,235 nla
2009 58,363 nla
2010 58,822 nla
$20,000
$15,000
$10,000
$5,000
$0
10 .00%
7.50%
5.00%
2 .50%
0.00%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Personal Income (2) (in millions) 1
",-............... /
20 01 2002 2003 2004 2005 2006 2007 2008 2009 2010
I_ Unemployment Rate (%) 1
Per Capita Average Marin City
Personal Unemployment County Population
Income (2) Rate (3) Population % of County
$68,135 3.50% 249,231 22.68%
65,558 4.90% 250,078 22.67%
66,620 4.90% 249,808 22.82%
74,230 4.40% 251,330 22.75%
79,688 3.90% 252,485 22.66%
86,719 3 .50% 253,341 22.64%
91,483 3.70% 255,982 22.68%
nla 4.60% 257,406 22.62%
nla 7.60% 258,618 22.57%
nla 9.90% 260,651 22.57%
Source: (1) State of Cali fomi a, 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.
131
EmElo~er
Kaiser Pennanente
Autodesk, Inc.
City of San Rafael
Comcast
Safeway
Macy's
CITY OF SAN RAFAEL
PRINCIPAL EMPLOYERS
FISCAL YEAR 2009-2010
Number of
EmElo~ees
1,311
1,028
630
619
452
445
Dominican University of California 370
MHN 350
Guide Dogs for the Blind 287
Wells Fargo Bank 265
Totals 5,757
Percentage of
Total Employment
in San Rafael
4.86%
3.81%
2.33%
2.29%
1.67%
1.65%
1.37%
1.30%
1.06%
0.98%
21.32%
Source: State of California, Employment Development Department, Labor Market
Infonnation Division San Francisco Business Times, 2010 Book of Lists
Note: Total employment in the City of San Rafael as of June 30, 2010 was 26,873
132
~
~ ~
~
CITY OF SAN RAFAEL
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
450.00
400.00
350.00
300.00
250.00
200.00
150.00
100.00
50.00
0.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Function
General Government
Public Works and Parks
Culture and Recreation
General Government
Public Safety
Public Works and Parks
Community DevelopmentlRedevelopment
Culture and Recreation
Total
Source: City of San Rafael
2001
36.56
202.00
75.70
26.28
81.99
422.53
2002 2003
39.20 41.73
203.03 203.03
80.70 79.95
30.28 29.75
83.76 83.76
436.97 438.22
133
Public Safety
D Community DevelopmentlRedevelopment
2004 2005 2006 2007 2008 2009 2010
49.27 47.02 53.71 59.38 59.88 58.88 54.88
201.63 193.13 188.86 189.00 186.00 183.00 165.00
76.70 72.80 74.80 76.80 78.80 78.80 60.80
28.75 26.75 26.43 31.00 34.50 34.50 26.75
83.26 79.73 77.49 80.22 85.90 85.90 83.49
439.61 419.43 421.29 436.40 445.08 441.08 390.92
CITY OF SAN RAFAEL
OPERATING INDICATORS BY FUNCTIONIPROGRAM
LAST TEN FISCAL YEARS
2001 2002 2003
FunctionlProgram
Public safety:
Fire:
Inspection permit issued nla nla nla
Police:
Police calls for service nla nla nla
Law violations:
Part I crimes nla nla nla
Physical arrests (adult and juvenile) nla nla nla
Traffic violations nla nla nla
Parking violations nla 15,468 26,308
Public works
Street resurfacing (miles) 7.16 nla 1.20
Potholes repaired (square miles) nla nla nla
Asphalt used for street repairs (tons) nla nla nla
Culture and recreation:
Recreation class participants 6,000 6,000 7,000
Library:
Items in collection (thousands) 122.71 121.85 128.12
Total items borrowed (thousands) 318.72 336.57 338.60
Wastewater
Other connections
Average daily sewage treatment (millions of gallons) 6.976 6.976 6.976
Note: N/A denotes information not available.
134
2004 2005
nla nla
nla nla
nla nla
nla nla
nla nla
30,946 39,421
5.70 6.80
nla nla
nla nla
7,000 7,000
118.24 121.81
332.33 299.30
6.976 6.976
2006 2007 2008 2009 2010
nla 143 217 196 307
nla 43,480 43,488 42,227 42,227
nla 2,557 2,314 2,352 2,352
nla 3,809 4,182 4,487 4,487
nla 5,197 9,241 5,777 5,777
33,610 36,228 42,481 44,913 42,806
1.08 nla 4.95 2.77 2.77
nla nla nla nla nla
nla nla nla nla nla
8,000 8,000 8,000 8,000 9,524
123.12 124.46 nla 124.40 151.88
333.15 359.41 nla nla 371.12
6.976 6.976 6.976 6.976 6.976
135
CITY OF SAN RAFAEL
CAPITAL ASSET STATISTICS BY FUNCTIONIPROGRAM
LAST TEN FISCAL YEARS
2001 2002 2003 2004 2005
FunctionlProgram
Public safety:
Fire stations 6 6 6 6 6
Police stations 1 1 1 1 1
Police Fleet
Public works
Miles of streets 165 171 171 172 172
Street lights 4,167 4,200 4,200 4,333 4,333
Parking District lights
Traffic Signals 86 85 85 85 85
Culture and recreation:
Community services:
City parks 19 19 19 19 19
City parks acreage 41 41 41 41 41
Playgrounds 13 13 13 13 13
City trails 15 15 15 15 15
Community gardens 2 2 2 2 2
Community centers 4 4 4 4 4
Senior centers 0 0 0 0 0
Sports centers 0 0 0 0 0
Performing arts centers 0 0 0 0 0
Swimming pools 1 1 1 1 1
Tennis courts 10 10 10 10 10
Basketball Courts 5 5 5 5 5
Baseball/softball diamonds 5 5 5 5 5
Soccer/football fields 2 2 2 2 2
Library:
City Libraries 1 1 1 1
Wastewater
Miles of sanitary sewers 175.82 176.90 178.40 179.15 179.15
49.30 51.40 53.50 57.60 57.60
Number of treatment plants 1 1 1 1 1
(1) Source: City of San Rafael
136
2006
6
1
173
4,435
89
19
41
13
15
1
4
0
0
0
1
10
5
5
2
1
179.15
57.60
1
2007
6
1
173
4,435
89
19
41
13
20
1
4
0
0
0
1
10
5
5
2
1
179.15
57.60
1
2008
6
1
173
4,435
89
20
42
14
20
1
4
0
0
0
1
10
5
5
2
1
179.15
57.60
1
2009
6
1
173
4,435
89
20
42
14
20
1
4
0
0
0
1
10
5
5
2
2
179.15
57.60
1
2010
6
1
173
4,435
89
20
42
14
20
1
4
0
0
0
1
10
5
5
2
2
179
58
1
137
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