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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, 2012
Table of Contents
JINTRODUCTORYSECTION
TABLE OF CONTENTS
Letterof Transmittal...........................................................................................................................................
v
Mission Statement and Vision Statement..........................................................................................................
x
CityCouncil and Staff.......................................................................................................................................xi
LocationMap....................................................................................................................................................xii
OrganizationalChart .......................................................................................................................................xiii
FINANCIAL SECTION
Independent Auditor's Report on Basic Financial Statements
..................................................................1
Management's Discussion and Analysis........................................................................................................ 3
Basic Financial Statements:
Government -wide Financial Statements:
Statementof Net Assets......................................................................................................................17
Statementof Activities........................................................................................................................18
Fund Financial Statements:
Major Governmental Funds:
BalanceSheet.................................................................................................................................. 22
Balance Sheet - Reconciliation of Governmental Fund Balances to
Net Assets of Governmental Activities...................................................................................... 23
Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................ 24
Reconciliation of the Net Change in Fund Balances - Total Governmental
Funds with the Statement of Activities....................................................................................... 25
Proprietary Funds:
Statementof Net Assets.................................................................................................................. 28
Statement of Revenues, Expenses, and Changes in Fund Net Assets ........................................... 29
Statementof Cash Flows................................................................................................................. 30
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2012
Table of Contents
FINANCIAL SECTION (Continued)
Fiduciary Funds:
Statement of Fiduciary Net Assets................................................................................................. 32
Statement of Changes in Fiduciary Net Assets.............................................................................. 33
Notes to Basic Financial Statements........................................................................................................ 35
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual -
Budgetary Basis
GeneralFund................................................................................................................................... 78
Traffic and Housing Mitigation Special Revenue Fund................................................................. 79
Gas Tax Special Revenue Fund...................................................................................................... 80
Supplementary Information:
Non -major Governmental Funds:
CombiningBalance Sheets................................................................................................................. 86
Combining Statements of Revenues, Expenditures, and Changes
inFund Balances......................................................................................................................... 92
Budgeted Non -major Government Funds:
Combining Schedules of Revenues, Expenditures, and Changes
in Fund Balances — Budget and Actual............................................................................. 98
Internal Service Funds:
Combining Statements of Net Assets...............................................................................................108
Combining Statements of Revenues, Expenses and Changes in Fund Net Assets .........................110
Combining Statements of Cash Flows.............................................................................................112
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2012
Table of Contents
STATISTICAL SECTION
Financial Trends:
Net Assets by Component — Last Ten Fiscal Years................................................................................ 118
Changes in Net Assets — Last Ten Fiscal Years..................................................................................... 120
Fund Balances of Governmental Funds — Last Ten Fiscal Years........................................................... 124
Changes in Fund Balance of Governmental Funds — Last Ten Fiscal Years .......................................... 126
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years ............................128
Property Tax Rates - All Direct and Overlapping Governments— Last Ten Fiscal Years ......................129
Principal Property Tax Payers — Current Year and Ten Years Ago.......................................................13 0
Property Tax Levies and Collections — Last Ten Fiscal Years...............................................................131
Debt Capacity:
Ratio of Outstanding Debt by Type — Last Ten Fiscal Years.................................................................132
Computation of Direct and Overlapping Debt........................................................................................133
Computation of Legal Bonded Debt Margin..........................................................................................134
Revenue Bond Coverage Parking Facility — Last Nine Fiscal Years.....................................................135
Redevelopment Pledged Revenue Coverage — Last Ten Fiscal Years ...................................................
136
Demographic and Economic Information:
Demographic and Economic Statistics — Last Ten Fiscal Years............................................................137
PrincipalEmployers................................................................................................................................13
8
Operating Information:
Full -Time Equivalent City Government Employees by Function
— Last Ten Fiscal Years.......................................................................................................................139
Operating Indicators by Function/Program — Last Ten Fiscal Years.....................................................140
Capital Asset Statistics by Function/Program — Last Ten Fiscal Years.................................................142
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r CITYOF
MAYOR GARY O. PHILLIPS
COUNCILMEMBER DAMON CONNOLLY
' ' ' ' ' �1bMo� N.
COUNCILMEMBER BARBARA HELLER
COUNCILMEMBER MARL LEVINE
n(COUNCILMEMBER ANDREW CUYUGAN MCCULLOUGH
November 15, 2012
Honorable Mayor, Members of the City Council and Residents of San Rafael:
The Comprehensive Annual Financial Report (CAFR) of the City of San Rafael for the year ended
June 30, 2012, is hereby submitted as required by local ordinances, State statutes and bond
covenants. This financial report has been prepared in conformance with Generally Accepted
Accounting Principles as promulgated by the Governmental Accounting Standards Board (GASB)
and includes the report of the independent certified public accounting firm, Maze and Associates
Accountancy Corporation, who has issued an unqualified ("clean") opinion on the City of San
Rafael's financial statements for the fiscal year ended June 30, 2012.
The independent audit of the financial statements is part of a broader, federally mandated "Single
Audit" designed to meet the needs of federal grantor agencies. The standards governing Single
Audit engagements require the independent auditor to report on the audited agency's internal
controls and compliance with legal requirements, with special emphasis on such controls and
requirements involving the administration of federal awards. These reports will be available in the
City's separately issued Single Audit Report.
Responsibility for both the data accuracy, and the completeness and fairness of the presentation,
rests with management. To the best of our knowledge and belief, the data presented is accurate in all
material respects and is reported in a manner that presents fairly the financial position and results of
operations of the various funds and component units of the City of San Rafael. Further, the CAFR is
prepared in accordance with procedures and policies set by the Government Finance Officers
Association. The analysis of the financial condition and the result of operations are in the
Management's Discussion and Analysis document in the financial section. The CAFR is organized
into three sections:
1. Introductory section, which is unaudited, includes this letter of transmittal, an organizational
chart and a list of the City of San Rafael's elected and appointed officials.
2. Financial section, includes the general-purpose financial statements, related footnote
disclosures, and the combining and individual fund and account group financial statements and
schedules, as well as the independent auditors' report.
3. Statistical section, which is unaudited, includes selected financial and demographic information,
presented on a multi -year basis. Generally, ten-year data is presented for expenditures, revenues,
assessed valuation for local properties and construction activity.
1400 FIFTH AVENUE - PO Box 151560 . SAN RAFAEL, CA 94915-1560
WWW. CITYOFSANRAFAEL. ORG
v
CAFR TRANSMITTAL LETTER
REPORTING ENTITY — PROFILE OF THE GOVERNMENT
The City of San Rafael provides a full range of municipal services required by statute or charter,
namely: police and fire protection, construction and maintenance of streets, parks, storm drains and
other infrastructure, community services (including recreation and childcare), community
development (encompassing building, planning and code enforcement), and a library system with
two branches. The City performed certain infrastructure construction and economic development
activities through a separate, redevelopment agency until its dissolution on January 31, 2012. The
City of San Rafael accepted the role of successor agency to the Redevelopment Agency per Council
action on January 3, 2012. The City and former Redevelopment Agency compose the San Rafael
Joint Powers Financing Authority, which was established for the purpose of financing
redevelopment projects. The San Rafael Sanitation District is a discretely presented component unit
of the City of San Rafael and is presented independent of City financial information. For a further
explanation of these entities, refer to Footnote No. 1 in the Financial Section of the CAFR.
The City participates in various organizations through formally organized and separate entities
established under the Joint Exercise of Powers Act of the State of California. As separate legal
entities, these agencies exercise full powers and authorities within the scope of the related Joint
Powers Agreement including the preparation of annual budgets, accountability for all funds, and
the power to make and execute contracts. Obligations and liabilities of the separate entities are
not those of the City. For a further explanation of these separate entities, refer to Footnote No. 13 in
the CAFR.
In 1874, the City of San Rafael became the first incorporated City in the County, later becoming a
charter city in 1913 by vote of city residents. The City Council comprises five members; four are
elected at large to four-year terms. The mayor is elected separately to a four-year term. The City's
land area is 22 square miles, including 17 square miles of land and five of water and tidelands. San
Rafael's population in 2012 was 58,305.
The City of San Rafael is located 17 miles north of San Francisco in Marin County. Protected by its
Mediterranean like setting along the shores of the San Francisco Bay, the City enjoys a mild climate
year round. As the County seat, San Rafael is considered the commercial, financial, cultural and
civic hub of Marin County. Abundant recreational facilities are available in and around the City.
The City's cultural, park and recreational resources include --- 19 City parks, City and County open
space, and China Camp State Park. San Rafael is close to other attractions, including Muir Woods,
Mount Tamalpais, four other State parks, San Francisco, Oakland and the nearby wine country.
Downtown San Rafael is the location of many community events, including May Madness Classic
Car Parade, a 26 week Farmers Market Festival on Thursday Nights, First Friday Art Walks,
Twilight Criterium Bike Race, Mill Valley Film Festival, and the Winter Wonderland/Parade of
Lights. San Rafael is also the heart of the County's cultural activities with venues such as the Marin
Center, Falkirk Cultural Center, the Christopher B. Smith Film Center, and a host of diverse dining
and entertainment venues. Marin Center presents numerous ballets, concerts, speaking
engagements, and the award winning Marin County Fair. The Falkirk Cultural Center provides art
exhibits and children's programming. The City is also home to the distinguished Dominican
University of California.
vi
CAFR TRANSMITTAL LETTER
ECONOMIC FACTORS
The City has a diversified economic base, which includes high-tech, financial, service -based,
entertainment and industrial businesses. Downtown San Rafael provides a mix of restaurants, retail
stores and financial institutions. The City's diversified economic base is also reflected in a diverse
property tax base, which is 76% residential, 2 1 % commercial and 3% industrial. The top 30 sales
tax generators provide less than 50% of overall sales tax revenues.
San Rafael is a regional employment center. The number of jobs within the City exceeds the
number of employed residents. Approximately 72 percent of workers in San Rafael work for
companies, 10 percent work for the government and 14 percent are self-employed. The median
income for San Rafael households is $72,389.
For fiscal year 2012-2013, sales tax is projected to increase about 6%, Transaction Use Tax
(Measure S) is projected to increase about 3%. All other revenues, including business tax, franchise
tax, charges for services and permit fees are expected to be flat or experience modest increases.
We anticipate that economy will grow slowly the upcoming year, and that job gains will be limited.
The City has achieved significant progress by balancing the general fund budget without the use of
borrowed monies or reserves. However, the organization has deferred maintenance and capital
replacement for several years, and reduced its organizational capacity by approximately 20% over
the past five years.
The California state legislature enacted Assembly Bill xl 26 (the "Dissolution Act") which
terminated all redevelopment agencies formed under the Community Redevelopment Law, effective
February 1, 2012. Consequently, the City has had to absorb many of the economic development
activities formerly associated with the Redevelopment Agency with its general fund supported
operations. Future economic development activities and initiatives will likely require similar
support.
Demographic Data
A sampling of demographic information is provided to give the user an understanding of the
character and diversity that make San Rafael an exceptional place to live and work.
El Economic development organizations in San Rafael include the Business Improvement District,
Chamber of Commerce and the Marin County Economic Commission.
0 San Rafael's population grew from 56,628 in 2002 to 58,305 in 2012, a ten-year growth rate of
3.9%.
El Unemployment rates for 2012 were 7.9% (2011 was 9.6%) for the City and 6.7% countywide.
0 Countywide office vacancy rates in the second quarter of 2012 were 21.8% reduced from 27.8%
in 2011.
0 Median office rents in Central San Rafael during 2012 were $2.58 per square foot; in North San
Rafael the rate averaged $2.26.
0 Median industrial space rents averaged $1.00 per square foot for San Rafael.
vii
CAFR TRANSMITTAL LETTER
El Major shopping areas, as measured in available retail square footage, include the Downtown
corridor (938,000 aggregate), the Mall at Northgate (725,000), Montecito Center (130,000) and
Northgate One (113,900).
0 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.
0 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 rooms is 803.
0 Home buying and apartment rentals continue to be an affordability challenge both in San Rafael
and Marin County. Mean household incomes in San Rafael are $72,389 as of 2009, but less than
30% can afford to buy a median priced home. Rents for one bedroom apartments range from
$800-$1,900, while two bedroom apartments go for $1,150 to $2,350.
El While assessed property values have continued their decline in many regions throughout the
state, they have proven to be stable in San Rafael.
Recent growth and economic vibrancy:
• Terrapin Crossroads food and entertainment venue
• Construction of new Audi/VW dealership (49,995 sq. ft.)
• Ground breaking on new Target store (137,000 sq. ft.)
• New Honda dealership (22,034 sq. ft.)
• Completion a new 82 unit apartment building at 33 North
• TJ Max replacement of Borders (20,000 sq. ft.)
FINANCIAL INFORMATION
The City's Management Team is responsible for establishing and maintaining internal controls to
ensure that the City's assets are adequately protected from loss, theft or misuse. In addition,
management controls should ensure that proper accounting data is collected so as to prepare reports
in conformance with generally accepted accounting principles.
Internal accounting controls are designed to provide reasonable, but not absolute, assurance
regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2)
the reliability of financial records for preparing financial statements and maintaining accountability
for assets. The concept of reasonable assurance recognizes that the cost of a control should not
exceed the benefits likely to be derived. All internal control evaluations occur within the above
framework. We believe the City's internal accounting controls adequately safeguard assets and
provide reasonable assurance that financial transactions are properly recorded.
CAFR TRANSMITTAL LETTER
The City develops a budget based upon City Council priorities and department objectives. The
Finance Department maintains a traditional line item budget by major function. Budget control is
accomplished at the functional or division level within each fund. This budget creates a
comprehensive management and fiscal system aimed at achieving the objectives of each operating
level consistent with those that have been set for the community by the City Council. Each
department director is responsible for accomplishing goals within his or her functional area and
monitoring the use of his or her budget allocations consistent with policies set by the City Council
and monitored by the City Manager.
ACKNOWLEDGMENTS
The preparation of this City-wide document would not have been possible without the assistance
from each of the City's departments. We would like to specifically call out the diligent, dedicated
efforts of the Finance Department's staff. Appreciation goes to Van Bach, Accounting Supervisor,
Helen Yu, Accountant, and Carl Tregner, Accountant. These employees were instrumental in
coordinating the annual audit in a timely and professional manner. We believe this document meets
the Government Finance Officers Association's (GFOA) Certificate of Achievement for Excellence
in Financial Reporting requirements, and will be submitting it to the GFOA to determine its
eligibility. If accepted, this will mark the first time in more than ten years that the City received the
award.
Lastly, support by the Mayor and City Council Members, with an emphasis on community focus
and customer service, has allowed the Finance Department to bring professional level financial
leadership and management home to San Rafael.
Respectfully submitted,
Nancy Mackle
City Manager
e,,.
Mark Moses
Interim Finance Director
ix
A
C ITY 0 F
0
Misib"I (AtN
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
Gary 0. Phillips, Mayor
Barbara Heller, Council Member
Damon Connolly, Council Member
Marc Levine, Council Member
Andrew Cuyugan McCullough, Council Member
' 7 •
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City Council and Staff
City Council
Gary O. Phillips, Mayor
Barbara Heller, Council Member
Damon Connolly, Council Member
Marc B. Levine, Council Member
Andrew Cuyugan McCullough, Council Member
Elected Officials
Rob Epstein, City Attorney
Esther Beirne, City Clerk
Management Team
Nancy Mackle, City Manager
Jim Schutz, Assistant City Manager
Paul Jensen, Community Development Director
Sarah Houghton, Library Director
Chris Gray, Fire Chief
Stephanie Lovette, Economic Development Director
Carlene McCart, Community Services Director
Mark Moses, Interim Finance Director
Nader Mansourian, Public Works Director
Diana Bishop, Police Chief
Doris Toy, District Manager/ Engineer- SRSD
CAFR Team
Mark Moses, Interim Finance Director
Van Bach, Accounting Supervisor
Helen Yu, Accountant
Carl Tregner, Accountant
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X11
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FINANCIAL SECTION
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INDEPENDENT AUDITOR'S REPORT
ON BASIC FINANCIAL STATEMENTS
To the Honorable Mayor and Members of the City Council
City of San Rafael, California
We have audited the financial statements of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the City of San Rafael, California, as of and
for the year ended June 30, 2012, which collectively comprise the City's basic financial statements as
listed in the Table of Contents. These financial statements are the responsibility of the City's
management. Our responsibility is to express an opinion on these financial statements based on our
audit. We did not audit the component unit financial statements of the San Rafael Sanitation District
(District), which represents 15% and 13% of the assets and revenues and 1% and 12% of liabilities and
expenses of the reporting entity, respectively. These component unit financial statements were audited by
other auditors, whose report thereon has been furnished to us. Our opinion, insofar as it relates to the
amounts included for this entity, is based solely on the report of these other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards for financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance as to whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion the basic financial statements referred to above present fairly, in all material respects, the
financial position of the governmental activities, the business -type activities, each major fund, and the
aggregate remaining fund information of the City of San Rafael as of June 30, 2012, and the respective
changes in the financial position and cash flows, where applicable, thereof for the year then ended, in
conformity with generally accepted accounting principles in the United States of America.
As discussed in Note 1N, the City restated beginning fund balances of the General Fund, the
Redevelopment Agency Capital Projects Fund, beginning net assets of the Governmental Activities Liability
Insurance Internal Service Fund, the Workers' Compensation Internal Service Fund, and Retiree Health
(OPEB) Internal Service Fund.
As discussed in Note 16, pursuant to ABxl 26 adopted by the State of California which was validated by the
California Supreme Court on December 28, 2011, the San Rafael Redevelopment Agency has been
dissolved and its assets turned over to and liabilities assumed by Successor Agencies effective January 31,
2012. Certain transactions undertaken by the Redevelopment Agency of the City of San Rafael prior to the
date of dissolution may be subject to review by the State as discussed in Note 16, but the effect of that
review can not be determined as of June 30, 2012.
In accordance with Government Auditing Standards, we have also issued our report dated November 15,
2012, on our consideration of the City of San Rafael's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in assessing the
results of our audit.
Accounting principles generally accepted in the United States of America require that Management's
Discussion and Analysis and budgetary comparison information for the General, Traffic and Housing
Mitigation Special Revenue and Gas Tax Special Revenue Funds be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic or historical
context. We have applied certain limited procedures to this information in accordance with generally
accepted auditing standards in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any assurance
on the information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that comprise the
City of San Rafael's financial statements as a whole. The Introductory Section, Supplemental Information,
and Statistical Section listed in the Table of Contents are presented for purposes of additional analysis and
are not a required part of the financial statements. The Supplemental Information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records used
to prepare the financial statements. The information has been subjected to the auditing procedures applied
in the audit of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
financial statements or to the financial statements themselves, and other additional procedures in accordance
with generally accepted auditing standards in the United States of America. In our opinion, the
Supplemental Information is fairly stated in all material respects in relation to the basic financial statements
as a whole. The Introductory and Statistical Sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on them.
November 15, 2012
2
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2012
This analysis of the City of San Rafael's (City) financial performance provides an overview of the City's financial activities
for the fiscal year ended June 30, 2012. Please read it in conjunction with the basic financial statements and the
accompanying notes to those basic financial statements.
FINANCIAL HIGHLIGHTS
Government -wide Highlights:
• Net Assets —The assets of the City exceeded its liabilities as of June 30, 2012 by $240.9 million.
Activities — During the fiscal year the City's total revenues ($91.1 million) were greater than expenses for
governmental and business -type activities ($87.8 million) by $3.3 million.
• Changes in Net Assets — The City's total net assets increased by $32.3 million in fiscal year 2012. Most of this
increase was due to the transfer of $31.0 million of debt from the terminated Redevelopment Agency to the
Successor Agency Private -Purpose Trust Fund. Net assets of governmental activities increased by $31.9 million,
while net assets of the business type activities increased by $0.4 million.
Fund Highlights:
• Governmental Funds — Fund Balances- As of the close of fiscal year 2012, the City's governmental funds
reported combined ending fund balances of $30.8 million, an increase of $0.6 million from the prior year. Of
this total amount, $1.3 million is nonspendable, $16.9 million is restricted, $5.8 million is committed, and
$6.8 million is assigned.
• Governmental Fund revenues were $85.2 million; an increase of $2.3 million from fiscal year 2011. This increase
was attributable to stronger General fund and Emergency Medical Service fund revenue performance.
• Governmental Fund expenditures decreased by $3.2 million to $81.9 million in fiscal year 2012, from $85.1 million
in the prior year, due to expenditure reductions in the Gas tax and Grants funds.
• Enterprise Fund financial results remained relatively flat in fiscal year 2012.
OVERVIEW OF FINANCIAL STATEMENTS
The Comprehensive Annual Financial Report is composed of the following:
L Introductory section, which includes the Transmittal Letter and general information
2. Management's Discussion and Analysis (this part)
3. Basic Financial Statements, which include the Government -wide and the Fund financial statements along
with the Notes to these financial statements
4. Combining statements for Non -Major Governmental Funds, Internal Services Funds, and Fiduciary Funds.
5. Statistical Information
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements, which have 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 Redevelopment Agency of the
City of San Rafael and the San Rafael Joint Powers Financing Authority. These component units are, for practical purposes,
departments of the City and have been included in the basic financial statements as integral parts of the primary government
using the blended method.
This report also contains other supplementary information in addition to the basic financial statements for further information
and analysis.
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2012
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
Governmental 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, City activities are separated 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 fees to customers to cover the full costs of certain services it provides. The City's
Parking Services program is the City's sole business -type activity.
Discretely Presented Component Units - The government —wide financial statements include not only the City itself (the
primary government), but also the San Rafael Sanitation District, a legally separate entity 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.
The government -wide financial statements can be found on pages 17 through 19 of this report.
Fund Financial Statements and Major Component Unit Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for
specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance -related legal requirements. All of the funds of the City are divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
H
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2012
The fund financial statements provide detailed 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
No. 34 and replaces the concept of combining like funds and presenting them in total. Instead, each major fund is presented
individually, with all non -major funds summarized and presented in a single column. Further detail on the non -major funds
is presented on pages 86 through 106 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 reconciliations are
presented on the page immediately following each governmental fund financial statement.
The City has thirty-five governmental funds, of which three are considered major funds for presentation purposes.
Each major fund is presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances. The City's three major funds are - the General
Fund, Gas Tax, and Traffic and Housing Mitigation. Data from the other thirty-two governmental funds are combined
into a single, aggregated presentation. The basic governmental fund financial statements can be found on pages 22
through 25 of this report. Individual fund data for each of these non -major governmental funds is provided in the form
of combining statements on pages 86 through 106 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, and reports it as a major
fund. 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 vehicle replacement, building maintenance, radio systems, telephone systems,
personal computer replacement program, self -insured workers compensation, general liability, and dental programs, and
other employee and retiree benefits programs. Because these services predominantly benefit governmental rather than
business -type functions, they have been included within governmental activities in the government -wide financial statements.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more
detail. Like the government -wide financial statements, proprietary fund financial statements use the accrual basis of
accounting. There is no reconciliation needed between the government -wide financial statements for business -type
activities and the proprietary fund financial statements.
The basic proprietary fund financial statements can be found on pages 28 through 30 of this report.
Fiduciary Funds — The City acts as an agent on behalf of others, holding amounts collected, and disbursing them as directed
or required. The City's fiduciary activities are reported in the separate Statements of Fiduciary Net Assets and the Agency
Funds Statement of Changes in Assets and Liabilities. These activities are excluded from the City's other financial
statements because the City cannot use these assets to finance its own operations.
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2012
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government -wide
and fund financial statements. The notes to the financial statements can be found on pages 35 through 74 of this report.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary
information. One section includes budgetary comparison statements for the major funds (general, 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 78 through 80 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Statement of Net Assets
Net assets are a good indicator of the City's financial position. During this fiscal year, net assets of the City were
$240.9 million, an increase of $32.3 million from the prior year.
The following is the condensed Statement of Net Assets for the fiscal years ended June 30, 2012 and 2011.
Assets:
Current assets
Capital assets, net
Total assets
Liabilities:
Current liabilities
Long-term liabilities
Total liabilities
Net Assets:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
Governmental Activities
1)n» IM >
June 30,
(amounts in millions)
Increase Business -Type Activities Increase
(Decrease) 2012 2011 (Decrease)
$ 64.5 $ 51.0 $ 13.5 $ 2.7 $ 2.4 $ 0.3
195.7 202.0 (6.3) 17.1 17.4 (0.3)
260.2 253.0 7.2 19.8 19.8 0.0
11.0 16.3 (5.3) 0.4 0.4 -
21.5 40.9 (19.4) 6.3 6.6 (0.3)
32.5 57.2 (24.7) 6.7 7.0 (0.3)
192.4 174.3 18.1 10.6 10.8 (0.2)
24.7 21.3 3.4 - - -
10.6 0.2 10.4 2.5 1.9 0.6
$ 227.7 $ 195.8 $ 31.9 $ 13.1 $ 12.7 $ 0.4
0
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2012
At June 30, 2012, the largest portion of net assets (84.5 percent) consisted of the City's investment in capital assets net of
related debt. This component portrays the total amount of funds required to acquire those assets less any related debt used
for such acquisition that is still outstanding. The City uses these capital assets to provide services to citizens. The increase in
total net assets from fiscal year 2011 to fiscal year 2012 is largely attributable to a reduction in long-term liabilities from the
transfer of Redevelopment Agency debt to the Successor Agency Private -Purpose Trust.
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 (10.8 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, 2012, 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.
Net Assets as of June 30, 2012
$300
0
Invesment in Capital Assets, Restricted Unrestricted Total Net Assets
p2012 $203.01 $24.69 $13.15 $240.85
7
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2012
Statement of Activities
The following is the condensed Statement of Activities and Changes in Net Assets for the fiscal years ended June 30, 2012
and 2011:
City of San Rafael
Statements of Activities and Changes in Net Assets
For the Fiscal Years Ended June 30,
(amounts in millions)
Governmental Activities Increase Business -Type Activities Increase
2012 2011 (Decrease) 2012 2011 (Decrease)
Revenues:
Program revenues
$ 29.3 $
25.5 $
3.8 $
3.9 $
4.0 $
(0.1)
General revenues
57.9
57.7
0.2
-
-
-
Total revenues
87.2
83.2
4.0
3.9
4.0
(0.1)
Expenses
84.3
91.3
(7.0)
3.5
3.7
(0.2)
Change in net assets
before transfers
2.9
(8.1)
11.0
0.4
0.3
0.1
Transfers
29.0
0.5
28.5
(0.0)
(0.5)
0.5
Net Assets:
Beginning, as restated
195.8
203.4
(7.6)
12.7
12.9
(0.2)
Ending, as restated
$ 227.7 $
195.8 $
31.9 $
13.1 $
12.7 $
0.4
Governmental Activities:
The City's governmental activities net assets increased by $31.9 million, which represents a 16.3% increase from the
previous year. The most significant factor in this change was the transfer of $31.0 million in debt from the Redevelopment
Agency to the Successor Agency Private -Purpose Trust.
Revenue highlights:
• Sales tax (including Triple Flip Backfill and Measure S transactions and use tax) increased by $0.7 million, a
3.4 percent increase compared to fiscal year 2011. The New Honda dealership and TJ Maxx store are the main
contributors to the increase. The economic year -over year sales tax results exceeded 5.0 percent; however, one-
time positive adjustments to the Triple Flip Backfill and Measure S in fiscal year 2011 reduced the actual year -
over -year increase.
• Paramedic tax increased by $146 thousand, or 4.0 percent. The paramedic tax rate was increased from $85 to
$89 per unit for residential units, and from $0.11 per square -foot to $0.12 for all commercial/industrial sites in
the City of San Rafael. The rates of the other three jurisdictions that receive paramedic services remained the
same.
• Transient Occupancy Tax revenues increased by $200 thousand, or 13.5 percent.
• Permits and Licenses increase by $232 thousand, or 16.4 percent.
• Charges for services increased by $3.8 million, or 23.7 percent, which included $2.0 million to fund leave
accrual, retiree medical, and building maintenance.
8
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2012
Governmental Activities - Revenues:
$5,863,977 , 6.7%
$600,781 , 0.7%
$23,451,968 , 26.9%
$14,657,278 , 16.8%
Governmental Activities - Expenses:
Governmental Activities
Revenues By Source
June 30, 2012
Total Revenues - $87.2 million
$205,413 , 0.2%
$20,107,637 , 23.0%
22,355,749, 25.6%
Governmental Activities
Expenses by Function
$11,020,663 , 13.1% June 30, 2012
Total Expenses - $84.3 million
$1,224,991 , 1.5%
$4,587,557 , 5.4% J $10,171,337 , 12.1%
$39,876,910 , 47.3%
$17,423,033 , 20.7%
Property Taxes
® Sales Taxes
❑ Other Taxes
❑ Charges for Services
■ Miscellaneous
Grants and Contributions
■ Investment Earnings
p General Government
®Public Safety
❑ P ublic Wo rks and P arks
❑ Community Development
■ Culture and Recreation
❑Debt Service
Total expenses for governmental activities were $83.1 million (excluding interest on long-term debt of $1.2 million).
Program revenues offset total expenditures as follows:
• Those who directly benefited from programs contributed $23.4 million in charges for services.
• A total of $5.9 million in capital projects was funded by outside agencies through capital grants and
contributions.
A
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2012
As a result, total expenses that were funded by tax revenues, investment income and other general revenues were $53.8
million.
Functional expenses for the years ended June 30, 2012 were as follows:
Expenses by Function
For the fiscal year ended June 30, 2012
Function
Amount
Percent of Total
General Government
$ 10,171,337
12.1%
Public Safety
39,876,910
47.3%
Public works and parks
17,423,033
20.7%
Community development
4,587,557
5.4%
Culture and recreation
11,020,663
13.1%
Interest on Debt
1,224,991
1.5%
Total Expenses
$ 84,304,491
100%
Business -type Activities:
Net assets for business -type activities were $13.1 million, a $0.4 million increase from the prior fiscal year. Parking services
is the City's only business -type activity with income derived from program revenues of $3.9 million. Program revenues
include parking meter coin income of $1.5 million, and parking garage hourly parking income of $0.7 million. Revenues
also include parking and non -vehicle code fines totaling $1.7 million. Total expenses for parking services were $3.5 million
and transfers out to general fund and non -major governmental fund for support totaled $0.5 million during fiscal year 2012.
FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS
Governmental Funds
Fund Balance Classifications
In February 2009, the Governmental Accounting Standards Board (GASB) issued Statement No. 54, "Fund Balance
Reporting and Governmental Fund Type Definitions" that is applicable to the financial statements issued by governmental
entities for the reporting period ended June 30, 2011. The objective of GASB Statement No. 54 is to enhance the usefulness
of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by
clarifying the existing governmental fund type definitions. Before GASB 54, fund balances for the governmental funds were
classified in three categories: reserved, unreserved designated and unreserved undesignated. Under GASB 54, fund balances
are classified in five categories: nonspendable, restricted, committed, assigned, and unassigned based on hierarchy of
constraint. Further details on fund balance classifications can be found in Note 9B.
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, unassigned 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 $30.8
million, an increase of $0.6 million from the prior year; $1.3 million is nonspendable, $16.9 million is restricted, $5.8 million
is committed, and $6.8 million is assigned.
10
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2012
General Fund — The General Fund is the primary operating fund of the city.
General Fund — During fiscal year 2011-12, the City transferred the general liability and workers' compensation
claims payable and the corresponding cash reserves from General Fund to the Liability Insurance and Workers'
Compensation Internal Service Funds. The fund balance of the General Fund as of June 30, 2012 was $2.8 million,
representing $40.0 thousand decrease from the prior year; $0.5 million is nonspendable, $0.1 million is restricted, $0.7
million is committed, $1.5 million is assigned, which includes $1.3 million for emergencies and cash flow needs and
is to be used to meet the 10% reserve requirement as defined by the City's financial management policies.
General Fund Budgetaa Iffighli ts:
The final amended General Fund budget projected total revenue at $54.7 million, total expenditures at $54.4 million, total
interfund transfers at a net of $0.3 million, with the resulting projected increase in fund balance of $10.0 thousand.
Actual revenues, at $54.9 million, exceeded the final budget by $0.2 million, while actual expenditures were $0.1 million
under budget at $54.3 million. Net transfers out of $0.7 million exceeded the budgeted amount by $0.4 million, due to a
required transfer to Gas Tax related to a prior year. As a result, there was a net decrease to the fund balance of $43.9
thousand.
Gas Tax Fund — The City established this fund to manage its allocation of State gasoline taxes and local funding for street
maintenance projects. At June 30, 2012, Gas tax had a total fund balance of $4.5 million of which $2.9 million is committed
for construction projects approved by the City Council.
Redevelopment Agency Capital Project Fund — The Redevelopment Agency was responsible for assisting in the clearance
and rehabilitation of areas determined to be in a declining condition in the City. The Agency's operations were 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. Effective January 31, 2012, the Redevelopment Agency was dissolved. On February 1, 2012,
the Fund's remaining net assets were transferred to the San Rafael Redevelopment Agency Successor Agency and City
Housing Successor, which are reported as a Private -Purpose Trust Fund on the Statement of Fiduciary Net Assets and as a
Special Revenue fund, respectively.
Non -major Governmental Funds — The City's non -major funds are presented in the basic financial statements in the
aggregate. At June 30, 2012, non -major funds had a total fund balance of $14.2 million of which 46.8% ($6.6 million) is
legally restricted for specific purposes by external funding source providers and 53.2% ($7.6 million) is committed for
special purposes by the City Council. More information about these aggregated non -major funds can be found in the
combining statements which immediately follow the required supplementary information.
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 proprietary fund net assets increased by $0.4
million reflecting net operations results in the Parking Services fund.
11
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2012
CAPITAL ASSETS AND DEBT ADWS11STRATION
Capital Assets
The City's investment in capital assets for its governmental and business -type activities as of June 30, 2012 amounts to
$212.8 million, net of accumulated depreciation of $136.1 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 $1.6
million, offset by accumulated depreciation and retirements of $8.2 million, thereby equaling a net decrease of $6.6 million.
Major capital asset additions during the current fiscal included work in process such as the City Hall HVAC Upgrades,
Dominican/Black Canyon Landscape, Puerto Suello- Transit Center Connector, Grand Ave. Pedestrian Bicycle (Bay Trail),
and Traffic Signal Cabinet & Controller Upgrades.
Capital Projects
➢ Freitas Park Phase H project (Playground) was completed in 2012
➢ Francisco Blvd, East Improvement project was completed in 2012
➢ Terra Linda North San Rafael Improvement project was completed in 2012
➢ Canal St. Pedestrian Access & Safety Improvement project was completed in 2012
Additional information on the City's capital assets can be found in Note 5 on pages 52 through 53 of this report.
Debt Administration
Each of the City's debt is discussed in more detail in Note 7 to the financial statements. As previously discussed, the
Redevelopment Agency dissolved on January 31, 2012. On February 1, 2012, the outstanding debt of the Redevelopment
Agency was transferred to the Successor Agency, which is presented as a Private Purpose Trust Fund on the Statement of
Fiduciary Net Assets. See Note 16 to the financial statements for additional information. The City's long-term obligations
for the fiscal years 2012 and 2011 were as follows:
Governmental Business -Type
Activities Activities Total
2012 2011
Revenue Bonds $ - $ -
Tax Allocation Bonds - 33.3
Taxable Pension Obligation Bonds 4.5 4.5
Court Fine Promissory Note - 0.1
Note Payable 0.2 0.2
Capitalized Leases - 0.1
Total Outstanding Debt $ 4.7 $ 38.2
2012 2011 2012 2011
$ 6.4 $ 6.6 $ 6.4 $ 6.6
- - - 33.3
- - 4.5 4.5
- 0.1
0.2 0.2
- 0.1
> It aaQ
12
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2012
ECONOMIC CLIMATE AND NEXT YEAR'S BUDGET
Many factors were considered in preparing the City's budget for fiscal year 2012-2013. The general fund budget was
balanced with strategic remedies that included:
o Continued employee concessions of 4% of compensation from all employee groups, which resulted in a $1.5
million savings to the general fund.
o Reduced childcare services.
o Reduced maintenance of small parks.
o Reduced resources in planning, and potentially in administrative and program support.
o One-time reduction in contributions to the Vehicle Replacement Fund and Equipment Replacement Fund.
These -actions allowed the City to prepare a balanced budget without reliance on borrowed funds or use of reserves.
The projected trends for sales tax and transactions and use tax (Measure S), which combined represent the City's biggest tax
revenue generators, are for continued growth. For fiscal year 2012-2013, sales tax is projected to increase by just under 6
transactions and use tax (Measure S) is projected to increase by about 3%.
The City's second largest tax generator is property tax. The City is expecting the fiscal year 2013 tax roll to remain relatively
flat, in recognition of recent drops in commercial property, prompted by commercial vacancies.
The City's largest expenditure by far relates to personnel costs. Salaries and benefits are tied to the labor agreements
with each bargaining group. All bargaining groups agreed to a two-year contract that provides for a compensation
reduction equal to 4.0%. This contract extends through fiscal year 2012-13.
Fiscal year 2012-2013 will be the first full year in decades that the City has not had the advantage of its Redevelopment
Agency to promote economic development initiatives. Although the City no longer has the opportunity to finance
economic development activities with tax increment financing, the general fund has absorbed the cost of some of the
programs associated with continuing economic development outreach and promotion.
Please refer to Note 16 for further information on the dissolution of Redevelopment Agency.
REQUEST FOR INFORMATION
This financial report is designed to provide our residents, businesses, customers, and investors and creditors with a
general overview of the City's finances and to demonstrate the City's accountability for providing high quality
services within the limits of our fiscal resources. If you have questions about this report or need additional financial
information, contact the City of San Rafael — Finance Department, 1400 Fifth Avenue, Room 204, San Rafael,
California 94901.
13
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CITY OF SAN RAFAEL
STATEMENT OF NET ASSETS AND
STATEMENT OF ACTIVITIES
The Statement of Net Assets and the Statement of Activities summarize the entire City's financial activities
and financial position. They are also referred to as Government -wide financial statements.
The Statement of Net Assets reports the difference between the City's total assets and the City's total
liabilities, including all the City's capital assets and all its long-term debt. The Statement of Net Assets
focuses the reader on the composition of the City's net assets, by subtracting total liabilities from total
assets.
The Statement of Net Assets summarizes the financial position of all of the City's Governmental Activities
in a single column, and the financial position of all the City's Business -type Activities in a single column;
these columns are followed by a total column which presents the financial position of the entire City.
The City's Governmental Activities include the activities of its General Fund, along with all its Special
Revenue, Capital Projects and Debt Service Funds. Since the City's Internal Service Funds service these
Funds, their activities are consolidated with Governmental Activities, after eliminating inter -fund
transactions and balances. The City's Business -type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City's net assets. It is also prepared on the
full accrual basis, which means it includes all the City's revenues and all its expenses, regardless of when
cash changes hands. This differs from the "modified accrual" basis used in the Fund financial statements,
which reflect only current assets, current liabilities, available revenues and measurable expenditures.
The Statement of Activities presents the City's expenses first, listed by program, and follows these with the
expenses of its business -type activities. Program revenues -that is, revenues which are generated directly by
these programs - are then deducted from program expenses to arrive at the net expense of each
governmental and Business -type program. The City's general revenues are then listed in the Governmental
Activities or Business -type Activities column, as appropriate, and the Change in Net Assets is computed and
reconciled with the Statement of Net Assets.
Both these Statements include the financial activities of the City, the City of San Rafael Redevelopment
Agency (until its dissolution on January 31, 2012), and the San Rafael Joint Powers Financing Authority
which are legally separate but are component units of the City because they are controlled by the City,
which is financially accountable for their activities. The balances and the activities of the discretely
presented component units of the San Rafael Sanitation District are included in these statements as
separate columns.
15
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CITY OF SAN RAFAEL
STATEMENT OF NET ASSETS
JUNE 30, 2012
Component
Primary Government
San Rafael
Governmental
Business -Type
Sanitation
Activities
Activities
Total
District
ASSETS
Cash and investments available for operations (Note 2)
$44,123,709
$2,701,549
$46,825,258
$14,585,504
Restricted cash and investments (Note 2)
11,254,352
11,254,352
Receivables:
Accounts
2,703,367
20,924
2,724,291
12,960
Taxes
4,159,404
4,159,404
Grants
584,704
584,704
Interest
35,487
35,487
Loans (Note 4)
1,592,606
1,592,606
Prepaid expenses and others
22,423
22,423
195,394
Capital assets (Note 5):
Nondepreciable
83,637,497
8,620,853
92,258,350
570,331
Depreciable, net
112,042,133
8,474,705
120,516,838
33,539,960
Total Assets
260,155,682
19,818,031
279,973,713
48,904,149
LIABILITIES
Accounts payable
1,923,037
63,866
1,986,903
491,763
Deposits payable
31,451
31,451
Interest payable
76,685
76,685
Developer bonds payable
321,766
321,766
Interest payable
243,942
243,942
Claims payable (Note 14):
Due in one year
1,842,820
1,842,820
Due in more than one year
5,456,542
5,456,542
Compensated absences (Note 1J):
Due in one year
551,176
6,479
557,655
Due in more than one year
3,824,027
79,554
3,903,581
Long-term debt (Notes 6 and 7):
Due in one year
6,001,208
190,000
6,191,208
Due in more than one year
4,659,000
6,255,000
10,914,000
Net OPEB liability (Note 12)
7,594,000
7,594,000
Total Liabilities
32,448,969
6,671,584
39,120,553
491,763
NET ASSETS (Note 9):
Invested in capital assets, net of related debt
192,361,245
10,650,558
203,011,803
34,110,291
Restricted for:
Special revenue projects
19,453,720
19,453,720
Capital projects
4,953,563
4,953,563
Debt service
285,922
285,922
Total Restricted Net Assets
24,693,205
24,693,205
Unrestricted
10,652,263
2,495,889
13,148,152
14,302,095
Total Net Assets
$227,706,713
$13,146,447
240,853,160
$48,412,386
See accompanying notes to fmancial statements
17
CITY OF SAN RAFAEL
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUKE 30, 2012
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Functions/Programs
Expenses
Services
Contributions
Contributions
Primary Government
Governmental Activities:
General government
$10,171,332
$1,986,791
$189,740
Public safety
39,876,910
7,122,396
609,325
Public works and parks
17,423,033
5,214,267
1,738,824
$2,705,696
Community development / redevelopment
4,587,557
3,255,367
102,000
Culture and recreation
11,020,663
5,873,147
518,392
Interest on long-term debt and fiscal charges
1,224,991
Total Governmental Activities 84,304,486
23,451,968 3,158,281 2,705,696
Business -type Activities
Parking services 3,446,482 3,901,175
Total Business -type Activities 3,446,482 3,901,175
Total Primary Government $87,750,968 $27,353,143 $3,158,281 $2,705,696
Component Unit
San Rafael Sanitation District $10,185,779 $12,368,889
General revenues:
Taxes:
Property
Sales
Paramedic
Transient occupancy
Franchises
Business licenses
Other
Investment earnings
Miscellaneous
Aid from other governmental agencies
Transfers
Total general revenues and transfers
Extraordinary item:
Transfer to Successor Agency (Note 16)
Change in Net Assets
Net Assets, beginning of year, as restated (Note 1N)
Net Assets, end of year
See accompanying notes to financial statements
18
Net (Expenses) Revenues and Changes in Net Assets
Component
Primary Government Unit
San Rafael
Governmental Business -Type Sanitation
Activities Activities Total District
($7,994,801)
(32,145,189)
(7,764,246)
(1,230,190)
(4,629,124)
(1,224,991)
(54,988,541)
($7,994,80.1)
(32,145,189)
(7,764,246)
(1,230,190)
(4,629,124)
(1,224,991)
(54,988,541)
$454,693 454,693
454,693 454,693
(54,988,541) 454,693 (54,533,848)
d,"1 11011) 1111n
20,107,637
20,107,637
1,192,566
22,355,749
22,355,749
3,807,545
3,807,545
1,866,575
1,866,575
3,076,094
3,076,094
2,332,146
2,332,146
3,574,918
3,574,918
205,413
7,675 213,088
38,191
542,816
542,816
9,613
57,960
(57,960)
57,926,853
(50,285) 57,876,568
1,240,370
28,925,831
28,925,831
31,864,143 404,408 32,268,551 3,423,480
195,842,570 12,742,039 208,584,609 44,988,906
$227,706,713 $13,146,447 $240,853,160 $48,412,386
19
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FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year. Only
individual major funds are presented in the Fund Financial Statements, while non -major funds are combined
in a single column. Individual non -major funds may be found in the Supplemental Section.
The funds described below were determined to be Major Funds by the City in fiscal 2012.
GENERAL FUND
Established to account for all financial resources necessary to carry out basic governmental activities of
the City which are not accounted for in another fund. The General Fund supports essential City services
such as police and fire protection, building and street maintenance, libraries, recreation, parks and open
space maintenance.
TRAFFIC AND HOUSING MITIGATION FUND
Established to maintain long-term developer contributions for major housing and street improvement
projects.
GAS TAX FUND
Established to receive and expend the City's allocation of the State gasoline taxes.
21
ASSETS
Cash and investments available for operations (Note 2)
Restricted cash and investments (Note 2)
Receivables:
Accounts
Taxes
Grants
Interest
Loans (Note 4)
Prepaids
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Deposits payable
Developer bonds payable
Note payable (Note 6)
Interest payable
Deferred revenue
Total Liabilities
Fund Balances (Note 9):
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2012
Traffic and
Other
Total
Housing
Governmental
Governmental
General
Mitigation
Gas Tax
Funds
Funds
$5,455,184
$9,341,095
$4,359,401
$13,053,146
$32,208,826
76,188
76,188
1,795,113
835,316
2,630,429
3,890,915
168,855
99,634
4,159,404
58,879
123,776
402,049
584,704
35,487
35,487
811,517
60,001
721,088
1,592,606
15,481
6,942
22,423
$12,138,764
$9,401,096
$4,652,032
$15,118,175
$41,310,067
$1,020,369
$170,785 $690,656
$1,881,810
31,451
31,451
320,266
1,500
321,766
6,001,208
6,001,208
17,988
17,988
1,976,020
244,556
2,220,576
9,367,302
170,785 936,712
10,474,799
Nonspendable
527,509
$60,001
728,030
1,315,540
Restricted
76,188
9,341,095
1,608,641
5,907,223
16,933,147
Committed
651,121
2,872,606
2,262,651
5,786,378
Assigned
1,516,644
5,283,559
6,800,203
Total Fund Balances
2,771,462
9,401,096
4,481,247
14,181,463
30,835,268
Total Liabilities and Fund Balances
$12,138,764
$9,401,096
$4,652,032
$15,118,175
$41,310,067
See accompanying notes to basic financial statements
22
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET ASSETS OF GOVERNMENTAL ACTIVITIES
DUNE 30, 2012
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
building, 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.
Compensated absences
Deferred revenue
Net assets of governmental activities
See accompanying notes to financial statements
$30,835,268
195,679,630
8,231,396
(225,954)
(4,659,000)
(4,375,203)
2,220,576
$227,706,713
23
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2012
REVENUES
Taxes and special assessments
Licenses and permits
Fines and forfeitures
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Community development / redevelopment
Culture and recreation
Capital outlay
Capital improvement / special projects
Debt service:
Principal (Note 7)
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in (Note 3A)
Transfers out (Note 3A)
Total Other Financing Sources (Uses)
Traffic and
Other
Total
Housing
Governmental
Governmental
General
Mitigation
Gas Tax
Funds
Funds
$43,437,974
$7,957,142
$51,395,116
1,648,890
1,648,890
801,758
801,758
153,195
$27,797
$8,379
126,190
315,561
6,431,644
2,557,421
1,548,331
10,537,396
2,060,631
287,609
955,691
16,345,502
19,649,433
368,840
502,117
870,957
54,902,932
315,406
3,521,491
26,479,282
85,219,111
8,659,643
124,230
8,783,873
31,753,176
7,558,375
39,311,551
8,228,225
70,565
19,343
3,200,689
11,518,822
2,913,184
842,320
3,755,504
2,198,155
8,147,518
10,345,673
200,203
411,973
700,207
1,312,383
115,781
394,281
3,094,109
3,604,171
124,222
2,394,098
2,518,320
85,415
649,806
735,221
54,278,004
70,565
825,597
26,711,352
81,885,518
624,928
244,841
2,695,894
(232,070)
3,333,593
1,535,944
792,139
2,211,563
4,539,646
(2,204,744)
(447,579)
(2,211,970)
(4,864,293)
(668,800)
344,560
(407)
(324,647)
EXTRAORDINARY ITEM
Transfers (out) to Successor Agency
and Housing Successor (Note 16)
(2,352,584)
(2,352,584)
Net Change in Fund Balances
(43,872) 244,841 3,040,454 (2,585,061)
656,362
FUND BALANCES, BEGINNING OF YEAR, as restated
(Note 1N)
2,815,334 9,156,255 1,440,793 16,766,524
30,178,906
FUND BALANCES, END OF YEAR
$2,771,462 $9,401,096 $4,481,247 $14,181,463
$30,835,268
See accompanying notes to financial statements
24
CITY OF SAN RAFAEL
Reconciliation of the
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED RUNE 30, 2012
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.
Capital outlay and capital projects expenditures are therefore added back to fund balance
Non -capitalized capital outlay expenditures were reclassified to various governmental activities
Depreciation expense is deducted from the fund balance
Loss on retirement of capital assets is deducted from the 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 premium amortization is added back to fund balance
Debt amount being transferred to Successor Agency 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):
Interest payable
Compensated absences
Deferred revenue
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 financial statements
$656,362
4,916,554
(3,323,339)
(7,207,621)
(693,868)
2,518,320
(128,938)
79,860
31,022,577
95,150
(262,891)
1,857,826
2,334,151
$31,864,143
25
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PROPRIETARY FUND FINANCIAL STATEMENTS
Proprietary funds account for City operations financed and operated in a manner similar to a private
business enterprise. The intent of the City is that the cost of providing goods and services be financed
primarily through user charges.
The City reports its only proprietary fund, an enterprise fund, as a major fund.
PARKING SERVICES FUND
Established to maintain parking garages, lots and spaces in the Downtown Parking District (established
over 40 years ago), and to pay for parking enforcement, meter collection, and downtown office services.
27
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
JUNE 30, 2012
Business -type
Activities -
Governmental
Enterprise Funds
Activities
Parking
Internal
Services
Service Funds
ASSETS
Current Assets:
Cash and investments available for operations (Note 2)
$2,657,939
$11,958,493
Restricted cash and investments (Note 2)
11,178,164
Accounts receivable
20,924
72,938
Total Current Assets
2,678,863
23,209,595
Noncurrent Assets:
Capital assets (Note 5):
Nondepreciable
8,620,853
Depreciable, net
8,474,705
Total Noncurrent Assets
17,095,558
Total Assets
19,774,421
23,209,595
LIABILITIES
Current Liabilities:
Accounts payable
63,866
41,227
Interest payable
76,685
Compensated absences, due in one year (Note 1J)
6,479
Claims payable, due in one year (Note 14)
1,842,820
Long-term debt, due in one year (Note 7)
190,000
Total Current Liabilities
337,030
1,884,047
Noncurrent Liabilities:
Compensated absences (Note IJ)
79,554
Claims payable (Note 14)
5,456,542
Long-term debt (Note 7)
6,255,000
OPEB liability (Note 12)
7,594,000
Total Noncurrent Liabilities
6,334,554
13,050,542
Total Liabilities
6,671,584
14,934,589
NET ASSETS (Note 9):
Invested in capital assets, net of related debt
10,650,558
Restricted
3,584,164
Unrestricted
2,452,279
4,690,842
Total Net Assets
13,102,837
$8,275,006
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.
43,610
Net assets business -type activities
$13,146,447
See accompanying notes to financial statements
28
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED DUNE 30, 2012
OPERATING REVENUES
Charges for current services
Other operating revenues
Total Operating Revenues
OPERATING EXPENSES
Personnel
Insurance premiums and claims
Maintenance and repairs
Depreciation (Note 5)
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 3A)
Transfers out (Note 3A)
Change in Net Assets
NET ASSETS, BEGINNING OF YEAR, as restated (Note 1N)
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
Business -type
Activities -
Enterprise Funds
Parking
Services
Governmental
Internal
$2,204,565
$7,302,228
1,696,610
1,098,584
3,901,175
8,400,812
1,865,957
5,323,966
56,548
218,861
328,034
948,400
669,590
3,198,939
6,212,417
702,236
2,188,395
7,675
107,901
(312,291)
(280,004)
(304,616)
(172,103)
397,620
2,016,292
400,000
749,707
(457,960)
(367,100)
339,660
2,398,899
See accompanying notes to financial statements
12,763,177 5,876,107
13,102,837 $8,275,006
339,660
64,748
$404,408
at
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds
Cash payments to suppliers for goods and services
Cash payments to employees
Other operating revenues
Cash Flows from Operating Activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt
Interfund receipts (payments)
Interest expense
Cash Flows from Noncapital
Financing Activities
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal payments on revenue bonds
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,
as restated (Note 1N)
CASH AND CASH EQUIVALENTS, END OF YEAR
Reconciliation of operating income (loss) to net cash
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
Prepaids and deposits
Accounts payable
Compensated absence obligations
Claims payable
Business -type
Activities -
Enterprise Funds
Parking
Services
Governmental
A _+:_,:+:__
Internal
$2,204,565
$8,294,885
(1,064,600)
(2,471,720)
(1,962,827)
1,705,234
1,098,584
882,372
6,921,749
(57,960) 382,607
(280,004)
(57,960) 102,603
(185,000)
(314,141)
(499,141)
7,675 107,901
7,675 107,901
332,946 7,132,253
2,324,993 4,826,240
$2,657,939 $11,958,493
$702,236 $2,188,396
328,034
8,624 992,656
(59,652) (229,479)
(96,870)
1 non 1 '7_1
Net Cash Provided by Operating Activities $882,372 $6,921,749
See accompanying notes to basic financial statements
30
FIDUCIARY FUND FINANCIAL STATEMENTS
Fiduciary funds are used to account for assets held by the City as an agent or custodian for other entities.
The financial activities of such funds are excluded from the Government -wide financial statements and
presented in fund statements that consist of a Statement of Net Assets.
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
A private -purpose trust fund was established to account for the activities of the Successor Agency to the
San Rafael Redevelopment Agency.
31
ASSETS
CITY OF SAN RAFAEL
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET ASSETS
DUNE 30, 2012
Cash and investments (Note 2)
Cash and investments with fiscal agent (Note 2)
Receivable:
Taxes
Interest
LIABILITIES
Accounts payable
Interest payable
Notes payable
Long-term debt (Note 16):
Due within one year
Due more than one year
Total Assets
Total Liabilities
NET ASSETS (DEFICIT):
Held in trust for private purpose
See accompanying notes to financial statements
Successor Agency
to the
Redevelopment
Agency
Private -Purpose
Trust Fund
$1,110,123
1,375,314
472,959
2,053
$2,960,449
$169,517
255,838
299,489
2,425,000
28,730,062
31,879,906
($28,919,457)
32
CITY OF SAN RAFAEL
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2012
Successor Agency
to the
Redevelopment Agency
Private -Purpose
Trust Fund
ADDITIONS
Property taxes $1,069,690
Use of money and property 2,330
Other revenue 1,354
Total Additions 1,073,374
DEDUCTIONS
General government 329,621
Interest expense 737,379
Total Deductions
Net change in net assets
before extraordinary item
EXTRAORDINARY ITEM (Note 16)
Assets transferred to/liabilities assumed
by Successor Agency
NET ASSETS HELD IN TRUST FUND
FOR OTHER PURPOSES
1,067,000
6,374
(28,925,831)
Beginning of year
End of year ($28,919,457)
See accompanying notes to financial statements
33
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of the Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements present the City of
San Rafael (the City) as the Primary Government, with its component units for which the City is
considered financially accountable. The component units discussed below are included in the City's
reporting entity because of the significance of their operational and financial relationships with the
City.
B. Description of Blended Component Units
The accompanying basic financial statements include all funds and boards and commissions that
are controlled by the City Council. The basic financial statements include the City's blended
component units, entities for which the City is considered to be financially accountable. A
blended component unit, although a legally separate entity, is in substance, part of the City's
operations and so data from this entity is combined with the City. The City's blended component
units are described below.
San Rafael Redevelopment Agency — The San Rafael Redevelopment Agency (Agency) was
established under the provisions of the Community Redevelopment Law (California Health and
Safety Code, commencing with Section 33000) primarily to assist in the clearance and
rehabilitation of areas determined to be in a declining condition in the City. Financial activity of
the Agency commenced in July 1983. Under the Agency's Redevelopment Plan (Plan), approved in
November 1982, the Agency was to assist in the development of the property located in the central
San Rafael business core and east San Rafael. The Agency received incremental tax revenues on
the developed property attributable to increases in assessed value. The Agency functioned as an
independent entity with the City Council serving 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.
As discussed in Note 16, the Agency was dissolved effective January 31, 2012.
San Rafael Joint Powers Financing Authority — The San Rafael Joint Powers Financing
Authority (Authority) was created by the City of San Rafael pursuant to Articles 1 and 2 of Chapter
5 of Division 7 of Title 1 of the Government Code of the State of California for the purpose of
assisting in the financing and refinancing of certain assessment district and redevelopment -related
activities in the City. The Authority is administered by a governing board whose members are the
City Council of the City of San Rafael.
All of the Authority's assets, liabilities, revenues
Financial Statements. The Agency's capital asset
s
35
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Description of Discretely Presented Component Unit
San Rafael Sanitation District — The San Rafael Sanitation District (District) was formed in 1947
under Section 4700 of the California Health and Safety Code to provide wastewater transmission
over the southern two-thirds of the City and adjacent unincorporated areas. The City contracts with
the District to maintain the collection systems in the City and unincorporated areas.
The District is governed by a three -member Board of Directors who are appointed to four-year
terms. The City Council of the City appoints two out of the three board members and has the ability
to remove the two board members at will.
The District's activities are reported as a discretely presented component unit in a separate column
in the basic financial statements which includes the District's assets, liabilities, revenues, expenses,
results of operations and cash flows. The District's fiscal year ends on June 30 and its separately
issued component unit financial statements can be obtained at Central Marin Sanitation Agency,
Finance Department, 1301 Andersen Drive, San Rafael, California 94901.
D. Basis of Presentation
Government -wide Statements - The Statement of Net Assets and the Statement of Activities
display information about the primary government (the City) and its component units. These
statements include the financial activities of the overall City government, except for fiduciary
activities. Interfund transfers and amounts owed between funds within the primary government
have been eliminated from the statements. Amounts representing interfund services and uses
remain in the statements. These statements distinguish between the governmental and business -
type activities of the City. Governmental activities generally are financed through taxes,
intergovernmental revenues, and other nonexchange transactions. Business -type activities are
financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program
revenues for each segment of the business -type activities of the City and for each function of the
City's governmental activities. Direct expenses are those that are specifically associated with a
program or function. Program revenues include (a) charges paid by the recipients of goods or
services offered by the programs, (b) grants and contributions that are restricted to meeting the
operational needs of a particular program and (c) fees, grants and contributions that are restricted
to financing the acquisition or construction of capital assets. Revenues that are not classified as
program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City's
funds, including fiduciary funds and blended component units. Separate statements for each fund
category — governmental, proprietary, and fiduciary — 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 non-maj or funds.
36
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are those in
which each party receives and gives up essentially equal values. Nonoperating revenues, such as
subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
E. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or
expenditures/expenses equal to ten percent of their fund -type total and five percent of the grand
total. The General Fund is always a major fund. The City may also select other funds it believes
should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial
statements:
General Fund — Established to account for all financial resources necessary to carry out basic
governmental activities of the City which are not accounted for in another fund.
Traffic and Housing Mitigation Fund — Established to maintain developer contributions for
major housing and street improvement projects.
Gas Tax Fund - Established to receive and expend the City's allocation of the State gasoline
taxes.
The City reported its only enterprise fund as a major fund in the accompanying financial
statements. The enterprise fund 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, current employee
benefits, liability insurance, workers' compensation, dental insurance, pension plan reserve, and
retiree health (OPEB).
Fiduciary Fund - Successor Agency to the Redevelopment Agency Private -Purpose Trust
Fund — Established to account for the accumulation of resources held by the City as Successor
Agency to the Redevelopment Agency to be used for payments at appropriate amounts and times
in the future. The financial activities of the fund are excluded from the Government -wide
financial statements, but are presented in the separate Fiduciary Fund financial statements.
37
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. Basis of Accounting
The government -wide, proprietary, fiduciary and discretely presented component unit financial
statements are reported using the economic resources measurement focus and the full accrual
basis of accounting. Revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred, regardless of when the related cash flows take place. Fiduciary funds are
custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
Governmental funds are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Under this method, revenues are recognized when
measurable and available. The City considers all revenues reported in the governmental funds to
be available if the revenues are collected within sixty days after year-end. Expenditures are
recorded when the related fund liability is incurred, except for principal and interest on long-term
debt, claims and judgments, and compensated absences, which are recognized as expenditures to
the extent they have matured. General capital asset acquisitions are reported as expenditures in
governmental funds. Proceeds from long-term debt and acquisitions under capital leases are
reported as other financing sources.
Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental
revenues, interest revenue, charges for services, fines and forfeitures. 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 Governmental Accounting Standards Board
pronouncements.
38
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Budgets, Budgetary Accounting, And Encumbrances
The City adopts a budget on an annual basis, to be effective July 1 for the ensuing fiscal year. The
budget reflects estimated revenues and expenditures for each fiscal year, except for capital projects
funds and the Peacock GAP Assessment District Special Revenue Fund. Projects in Capital
Projects Fund are budgeted by the Council on a multi -year basis. 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
fund level, which is the legal level of control. The City Manager is authorized to transfer budgeted
amounts between accounts, departments or funds; the Council must approve any increase in the
City's total budget. Several supplemental appropriations were approved during the course of the
year.
The following funds incurred expenditures in excess of appropriations during fiscal year 2011-
2012:
Fund Amount
Recreation Revolving Special Revenue $235,437
Baypoint Lagoons Assessment District Special Revenue 4,391
Household Hazmat Facility Special Revenue 51,287
Childcare Special Revenue 16,722
Library Assessment Special Revenue 10,899
Development Services Special Revenue 86,792
Emergency Medical Services Special Revenue 290,511
Pt. San Pedro -Maintenance Portion Special Revenue 2,448
Low and Moderate Income Housing Special Revenue 75,914 (a)
Pt. San Pedro-Debt-CIP Payment Debt Service 3,443
(a) Due to the dissolution of Redevelopment Agency, the budgeted amount was
presented in the former RDA funds.
Sufficient resources were available within the funds to finance these excesses.
Encumbrance accounting, under which purchase orders 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.
WE
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H. Cash Equivalents
For purposes of the statement of cash flows, the City considers all highly liquid investments
(including all restricted assets) with maturity of three months or less when purchased to be cash
equivalents. The City maintains a cash and investment pool that is available for use by all funds.
As the proprietary funds' share of this pool is readily available when needed, such share is also
considered to be cash equivalent. Deposit assets in the proprietary funds are related to insurance
and benefits and are not considered cash equivalents for purposes of the statement of cash flows.
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.
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
$59000. 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 20 — 50 years
Machinery and equipment 4 — 20 years
Infrastructure 15 — 50 years
J. Compensated Absences
Compensated absences are accrued as earned. Upon termination, employees are paid for all unused
vacation at their current hourly rates. Unused sick leave may be compensable up to 600 hours,
depending upon the provisions of the MOUs, which vary by bargaining unit.
The long-term portion of the liability for compensated absences for governmental fund type
operations is recorded as compensated absences in the government -wide financial statements.
Compensated absences are liquidated by the fund that has recorded the liability. Proprietary fund
liabilities are recorded within their respective funds.
M
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The changes of the compensated absences were as follows:
Governmental Business -Type
Activities Activities
Total
Beginning Balance
$4,112,312
$182,903
$4,295,215
Additions
3,825,731
348
3,826,079
Payments
(3,562,840) (97,218)
(3,660,058)
Ending Balance
$4,375,203
$86,033
$4,461,236
Current Portion
$551,176
$6,479
$557,655
K. Property Tax Levy, Collection and Maximum Rates
State of California Constitution Article XIII A provides that the combined maximum property tax
rate on any given property may not exceed 1 % of its assessed value unless an additional amount for
general obligation debt has been approved by voters. Assessed value is calculated at 100% of
market value as defined by Article X1H 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 remits tax monies to the City in three installments, as follows:
55% remitted on December 15
40% remitted on April 15
5% remitted on June 15
L. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
(GAAP) requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent asset and liabilities at the dates of the financial
statements and the reported amounts of revenues and expenditures/expenses during the reporting
periods. Actual results could differ from those estimates.
41
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
M. New Fund/Closed Funds
The Low and Moderate Income Housing Special Revenue Fund was established to account for
the activities related to the assets assumed by the City as Housing Successor to the San Rafael
Redevelopment Agency for the housing activities of the former Redevelopment Agency.
The Pt. San Pedro Debt-CIP Portion Payment Special Assessment District Debt Service Fund and
Maintenance Portion Special Revenue Fund were established to accumulate funds for payment of
principal and interest for Pt. San Pedro Assessment District Bonds and ongoing maintenance
needs.
The OPEB/Retiree Medical Internal Service Fund was established to account for activities
related to the funding, administration and procurement of retiree medical benefits. In past years,
this activity was included in the Employee Benefits Internal Service Fund.
The Successor Agency to the Redevelopment Agency Private -Purpose Trust Fund was established
to account for the activities of the Successor agency to the former Redevelopment Agency.
The Redevelopment Agency Capital Projects Fund and Redevelopment Agency Debt Service Fund
were closed as of January 31, 2012, as a result of the dissolution of the Redevelopment Agency
discussed in Note 16.
N. Prior Period Adjustments
During fiscal year 2011-2012, the City made the following prior period adjustments to restate its
previously issued financial statements:
a. Removed claims liability previously reported in the Government -Wide financial statements,
within Governmental Activities, within Governmental Activities, and recorded the claims
activities in the Liability Insurance and Workers' Compensation Internal Service Funds.
As a result of transferring these activities, the General Fund transferred a cash balance of
$3,970,177 that had been set aside for payment of these claims, to the corresponding
Internal Service Funds. The City also adjusted claims payable balance to match with the
actuarial report.
b. Recorded an outstanding advance between the Redevelopment Agency and the City. The
advance is related to Resolution Number 4250 adopted during fiscal year 1971-1972,
whereby, the City advanced the Redevelopment Agency $20,000, at 7% interest per annum.
The principal balance, plus accrued interest, was $291,326 as of January 31, 2012.
c. Removed the Pension Obligation Bond liability from the Employee Retirement Internal
Service Fund and recorded the debt balance within the Governmental Activities.
d. The Net OPEB Obligation (NOO) had been erroneously calculated during fiscal years
2009-2010 and 2010-2011, therefore, the OPEB liability was recalculated and adjusted
within the newly created OPEB/Retiree Medical Internal Service Fund.
e. To record cash held in 401(h) Trust dedicated to fund OPEB obligations and omitted from
previous statements.
42
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
f. Compensated absences was recalculated and it was determined that $40,918 had been
double -recorded in prior years.
The results of these restatements are as follows:
Government -Tide Financial Statements
Governmental Activities Net Assets
As previously reported $187,434,535
Advance recorded between City and Agency (b) (291,326)
Net adjustment to OPEB obligation (d) 891,000
Record cash held in 401(h) Trust set -aside for OPEB (e) 11,178,465
Claims liability adjustments, net (a) (3,329,186)
Compensated Absences adjustment (e) (40,918)
Beginning net assets, as restated $195,842,570
Fund Level Financial Statements
General Fund
As previously reported $6,785,511
Cash set aside for claims moved to Internal Service Funds (3,970,177)
Beginning fund balance, as restated $2,815,334
Redevelopment Agency Capital Projects Fund
As previously reported
$6,124,258
Advance to other funds
(291,326)
Beginning fund balance, as restated
$5,832,932
Liability Insurance Internal Service Fund
As previously reported
$1,560,736
Claims payable - Adjust to match with the actuarial report
(2,146,448)
Beginning fund balance, as restated
($585,712)
Workers' Compensation Internal Service Fund
As previously reported
$584,605
Claims payable - Adjust to match with the actuarial report
(1,182,738)
Beginning fund balance, as restated
($598,133)
Employee Retirement Internal Service Fund
As previously reported
($1,492,798)
Move pension obligation bonds to Government -wide financial statement (c)
4,490,000
Beginning fund balance, as restated
$2,997,202
OPEB/Retiree Medical Internal Service Fund
As previously reported
$0
Cash held in 401(h) trust set aside for OPEB
11,178,465
Record Net OPEB Obligation (NOO) balance
(7,594,000)
Beginning fund balance, as restated
$3,584,465
43
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 2 -CASH AND INVESTMENTS
The City's goal is to invest at the maximum yield, consistent with safety and liquidity.
A. Policies
The City invests in individual investments and in investment pools. Individual investments are
evidenced by specific identifiable securities instruments, or by an electronic entry registering the
owner in the records of the institution issuing the security, called the book entry system. In order to
increase security, the City employs the Trust Department of a bank as the custodian of certain City
managed investments, regardless of their form.
California Law requires banks and savings and loan institutions to pledge government securities
with a market value of 110% of the City's cash on deposit, or first trust deed mortgage notes with a
market value of 150% of the deposit, as collateral for these deposits. Under California Law this
collateral is held in a separate investment pool by another institution in the City's name and places
the City ahead of general creditors of the institution.
The City's investments are carried at fair value, as required by generally accepted accounting
principles. The City adjusts the carrying value of its investments to reflect their fair value at
each fiscal year end, and it includes the effects of these adjustments in income for that fiscal
year.
B. Classification
Cash and investments as of June 30, 2012, are classified in the financial statements as shown below,
based on whether or not their use is restricted under the terms of City debt instruments or agency
agreements.
Financial Statement Presentation:
Statement of Net Assets:
City of San Rafael:
Cash and investments available for operations
Restricted cash and investments
Total Primary Government Cash and Investments
San Rafael Sanitation District (Component Unit):
Cash and investments available for operations
Total San Rafael Sanitation District Cash and
Investments
Statement of Fiduciary Net Assets (separate statement):
Successor Agency to the Redevelopment Agency:
Cash and investments available for operations
Restricted cash and investments
Total Fiduciary Cash and Investments
Total Cash and Investments
$46,8251258
11,254,352
58,079,610
14,585,504
1495859504
I,110,123
1,375,314
294859437
$7591501551
44
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 2 - CASH AND INVESTMENTS (Continued)
The City does not normally allocate investments by fund. Each proprietary fund's portion of Cash
and Investments Available for Operations is in substance a demand deposit available to finance
operations, and is considered a cash equivalent in preparing the statement of cash flows.
C. Investments Authorized by the California Government Code and the City's Investment Policy
The City's investment policy and the California Government Code allow the City to invest in the
following provided the credit ratings of the issuers are acceptable to the City; and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of
the California Government Code, or the City's Investment Policy where it is more restrictive:
Minimum
Maximum
Maximum
Maximum
Credit
Percentage of
Investment in
Authorized Investment Type
Maturity
Quality
Portfolio
One Issuer
U.S. Government Obligation
5 years
No limit
No limit
U.S. Agency Securities and
5 years
AAA
No limit
No limit
Instruments
Repurchase Agreements
1 year
A-1
No limit
No limit
Prime Commercial Paper
270 days
A-1
25%
$1,0001000
Bankers' Acceptances
180 days
A-1
40%
$200,000
Medium -Term Corporate Notes
5 years
A
30%
$11000,000
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 Investment Fund
N/A
N/A
N/A
N/A
Money Market Mutual Funds
N/A
AAA
10%
N/A
Limited Obligation Improvement
30 years
N/A
N/A
N/A
Bonds related to Special
Assessment Districts and
Special Tax Districts
The San Rafael Sanitation District adopted the investments policy of the Treasurer and Tax
Collector of the County of Marin. Accordingly, the District, following the County, may invest in
U.S. Treasury and agency securities, commercial papers, bankers' acceptances, time deposits,
repurchase agreements, and the State of California LAIF. The District, additionally, may invest
in the Marin County Investment Pool. At year-end, the District's investments were in
compliance with the above provisions.
45
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 2 - CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City and the Successor Agency to the Redevelopment Agency 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 there are insufficient
resources to meet debt repayment obligations. The California Government Code requires these
funds to be invested in accordance with City ordinance bond indentures or State statute. The table
below identifies the investment types that are authorized for investments held by fiscal agents. The
table also identifies certain provisions of these debt agreements:
Maximum
Maximum Minimum Credit Percentage of
Authorized Investment Type Maturity Quality Portfolio
5 years to no
U.S. Treasury Obligations
maximum
N/A
No Limit
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-1
No limit
Category
Bankers' Acceptances
360 days
Highest Rating
No Limit
Category
Money Market Funds
N/A
Highest Rating
No Limit
Category
Prime Commercial Paper
270 days
Highest Rating
No Limit
Guaranteed Investment Contracts
Category
(fully collateralized) (A)
N/A
Highest Rating
No Limit
Two Highest
Municipal Obligations
N/A
Category Ratings
No Limit
Medium -Term Corporate Notes
5 Years
A
No Limit
Non -Negotiable Certificates of
Deposit
180 Days
N/A
No Limit
Negotiable Certificates of
Deposit
5 Years
N/A
No limit
Local Agency Investment Fund N/A N/A N/A
(A) Guaranteed Investment Contracts must be fully collateralized with U.S. Treasury Obligations or
U.S. Agency Obligations.
46
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 2 - CASH AND INVESTMENTS (Continued)
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. The City also manages its interest rate risk by
holding most investments to maturity, thus reversing unrealized market gains and losses.
Information about the sensitivity of the fair values of the City's investments (including investments
held by bond trustee) to market interest rate fluctuations is provided by the following table that
shows the distribution of the City's investments by maturity or earliest call date:
Type of Investment
City and Successor Agency:
Money Market Mutual Funds
Local Agency Investment Fund
MCERA 401(h) Trust Fund
Total Investments
Cash in banks and on hand
12 Months
or Less
Total
$1,375,314
$1,375,314
44,148,048
44,148,048
11,178,164
11,178,164
Total City and Successor Agency 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
$56,701,526
56,701,526
3,863,521
60,565,047
14,585,504
14,585,504
$75,150,551
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 LAW 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, 2012, these investments
matured in an average of 268 days.
Money Market Mutual Funds are available for withdrawal on demand and at June 30, 2012,
matured in an average of 52 days.
47
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 2 - CASH AND INVESTMENTS (Continued)
F. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. Presented below is the actual rating as of June 30, 2012, for each of the
Primary Government's investment types as provided by Standard and Poor's or Fitch investment
rating systems, except as noted:
Type of Investment
City and Successor Agency:
Money Market Mutual Funds
Total rated investments
Not rated:
Local Agency Investment Fund
MCERA 401(h) Trust Fund
Cash in banks and on hand
Total City and Trust Cash and Investments
San Rafael Sanitation District:
Not rated:
Cash in banks and short-term
pooled investments
Total District's Cash and
Investments
Total Cash and Investments
G. Concentration Risk
Aaa/AAA Total
$1,375,314 $1,375,314
1,375,314
44,148,048
11,178,164
3,863,521
60,565,047
14,585,504
14,585,504
$75,150,551
The City's investments that are greater than five percent of the total investments are in either an
external investment pool or mutual funds and are therefore exempt.
NOTE 3 -INTER-FUND T12ANSACTIONS
A. 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.
48
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 3 - INTER -FUND TRANSACTIONS (Continued)
Transfers between funds during the fiscal year ended June 30, 2012, were as follows:
From Fund
General Fund
Gas Tax Fund
Non -Major Governmental Funds
Parking Services Enterprise Fund
Internal Service Funds
To Fund
Gas Tax
Non -Major Governmental Funds
Internal Service Funds
General Fund
Non Major Governmental Fund
General Fund
Gas Tax Fund
Parking Services Enterprise Fund
Internal Service Funds
Non Major Governmental Fund
General Fund
Non -Major Governmental Funds
General Fund
Internal Services Funds
Non -Major Governmental Funds
Amount
$413,860 ( C )
1,414,364 (A)
376,520 (B )
440,000 ( C )
7,579 (A)
652,984 (C)
378,279 (C)
400,000 (D )
143,187 (D )
637,520 (B )
392,960 (C)
65,000 (A)
50,000 ( C )
230,000 (B )
87,100 (A)
$5,689,353
( A) Transfers to the Non -major Governmental Funds were for administrative costs, program support,
capital projects, and special projects.
( B) Transfers to the Internal Service Funds were to fund internal operations.
( C) Transfers to the General Fund and Gax Tax Fund were for street maintenance support, administrative costs,
and dispatch contract.
( D) Transfers to Parking Services Enterprise Fund and Internal Service Funds for Capital Projects.
B. Internal Balances
Internal balances are presented in the Government -wide financial statements only. They represent
the net interfund receivables and payables remaining after the elimination of all such balances within
governmental and business -type activities.
49
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 4 —LOANS RECEIVABLE AND DEFERRED REVENiTE
A. Summary of Loans Receivable
The City has reserved the portion of fund balance represented by these loans. At June 30, 2012,
these loans totaled:
Employee Loans
Centertown Associates
One "H" Street Associates
Fire Chief Loan
Successor Agency to Redevelopment Agency Trust Fund
Marin Housing Authority
Total
R Employee Loans
$225327
3211088
60,001
48%701
299,489
400,000
$1,592,606
The City administers a computer loan program that supports the use of technology by employees.
Employees are permitted to borrow up to $1,500 (reduced in April 2012 from the previous maximum
of $2,500) for the purchase of computer hardware and software. The loans are interest -free, have
maximum terms of three years, and are repaid through automatic payroll deductions.
C. Centertown Associates
On August 20, 1990, the former Redevelopment Agency 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 final payment
is due on July 31, 2065. With the dissolution of the Redevelopment Agency effective February 1,
2012, the assets of the Agency's Low and Moderate Income Housing fund, including the Centertown
Associates loan, were assumed by the City's Low and Moderate Income Housing Special Revenue
Fund.
D. One "H" Street Associates
On January 18, 1994, 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.
50
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 4 — LOANS RECEIVABLE AND DEFERRED REVENUE (Continued)
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, 2012, the balance of
the loan was $489,701.
F. Redevelopment Agency Loan
In 1972, the City loaned the former Redevelopment Agency $20,000 at an annual rate of 7%. This
obligation, with a principal and accrued interest balance totaling $299,489, was assumed by the
Successor Agency of the Redevelopment Agency Private Purpose Trust. The obligation was
included in the Third Recognized Obligation Payment Schedule, approved by the Successor Agency
Oversight Board on August 31, 2012, and approved by the California Department of Finance on
October 15, 2012.
G. Marin Housing Authority Loans
In 2012, the City, as Housing Successor to the Redevelopment Agency, loaned Marin Housing
Authority $23 5,000 and $165,000 at zero percent interest for the purchase of two low and moderate
income units. The loan will be repaid upon the sale of the units. With the dissolution of the
Redevelopment Agency effective February 1, 2012, the assets of the Redevelopment Agency Low
and Moderate Income Housing fund, including these Marin Housing Authority loans, were assumed
by the City's Low and Moderate Income Housing Special Revenue fund.
51
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 5 - CAPITAL ASSETS
Changes in capital assets during the fiscal year consisted of:
Governmental Activities
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Land improvements
Buildings and structures
Machinery and equipment
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Land improvements
Buildings and structures
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total net capital assets being depreciated
Total governmental activity capital assets
Business -type Activities
Capital assets not being depreciated:
Land
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings and structures
Machinery and equipment
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and structures
Machinery and equipment
Total accumulated depreciation
Total net capital assets being depreciated
Total business -type activity capital assets
Balance
Balance
June 30, 2011
Additions
Retirements
Transfers
June 30, 2012
$82,464,364
$82,464,364
2,570,961
$844,007
($689,796)
($1,552,039)
1,173,133
85,035,325
844,007
(689,796)
(1,552,039)
83,637,497
8,236,061
344,855
8,580,916
38,830,105
25,540
38,855,645
16,003,757
749,208
(149,045)
16,603,920
180,016,012
1,181,644
181,197,656
243,085,935
749,208
(149,045)
1,552,039
245,238,137
(4,438,328)
(274,647)
(4,712,975)
(11,224,475)
(1,136,519)
(12,360,994)
(12,033,483)
(1,033,978)
144,973
(12,922,488)
(98,437,070)
(4,762,477)
(103,199,547)
(126,133,356)
(7,207,621)
144,973
(133,196,004)
116,952,579
(6,458,413)
(4,072)
1,552,039
112,042,133
$201,987,904
($5,614,406)
($693,868)
$195,679,630
Balance
Balance
June 30, 2011
Additions
Retirements
Adjustment
June 30, 2012
$8,620,853
8,620,853
10,234,521
1,115,233
11,349,754
(1,836,524) ($210,538)
(710,491) (117,496)
(2,547,015) (328,034)
8,802,739 (328,034)
$17,423,592 ($328,034)
$8,620,853
8,620,853
10,234,521
($18,097) 1,097,136
(18,097) 11,331,657
(16,456) (2,063,518)
34,553 (793,434)
18,097 (2,856,952)
8,474,705
$17,095,558
52
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
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
Transfers &
Balance
June 30, 2011
Additions
Adjustments
June 30, 2012
$115,329
$115,329
1,129,447
$1,941,755
$2,616,200
455,002
1,244,776
1,941,755
2,616,200
570,331
18,266,110
58,939
(1,395,360)
19,720,409
35,590,971
(1,220,840)
36,811,811
1,083,582
109,416
1,192,998
54,940,663 168,355 (2,616,200) 57,725,218
(8,859,789) (341,176) (9,200,965)
(13,706,164) (824,283) (14,530,447)
(291,375) (162,471) (453,846)
(22,857,328) (1,327,930) (24,185,258)
32,083,335 (1,159,575) (2,616,200) 33,539,960
$33,328,111 $782,180 $34,110,291
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
$534,927
768,068
5,110,614
47,406
746,606
$7,207,621
$328,034
$328,034
53
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 6 —NOTE PAYABLE
San Rafael Tax and Revenue Anticipation Note
On July 25, 2011, the City authorized and issued 2011-12 Tax and Revenue Anticipation Notes
(TRANs) in the principal amount of $6,000,000. The TRANS were issued to finance City operating
expenditures until the City received its semi-annual property taxes, which were pledged for debt service
on the TRANs. The TRANs bore interest at 0.35% per year which was due along with principal on
August 3, 2012. During fiscal 2011-12, the City collected property related taxes amounting to
$20,107,637 which were sufficient to cover the $6.001,208 in principal and interest due and repaid on
the TRAM.
NOTE 7 -LONG-TERM OBLIGATIONS
The City generally incurs long-term debt to finance projects or purchase assets which will have useful
lives equal to or greater than the related debt.
With the dissolution of the Redevelopment Agency as discussed in Note 16, the City as Successor
Agency and Housing Successor assumed the long-term debt and loans for housing and non -housing
obligations of the Redevelopment Agency as of February 1, 2012. This was reported as a transfer and as
an Extraordinary Item in the Statement of Activities.
A summary of governmental and business -type activities transactions for the fiscal year ended June 30,
2012, are as follows:
Governmental Activities:
San Rafael Redevelopment Agency
1999 Tax Allocation Bonds
Capital Appreciation Bonds
5.580/o-5.6%, due 12/l/2022
2002 Tax Allocation Refunding Bonds
2.00%-5.25%, due 12/1/2021
2009 Tax Allocation Refunding Bonds
3.00% 5.00%, due 12/1/2022
Add: deferred bond premium costs
Total Tax Allocation Bonds
Extraordinary
Item
Debt assumed
Authorized
Balance
by Successor Balance Current
and Issued
June 30, 2011
Additions Retirements
Agency June 30, 2012 Portion
$2,389,004
$4,610,174
$128,938
$4,739,112
25,020,000
13,945,000
$1,420,000
12,525,000
14,660,000
13,785,000
905,000
12,880,000
958,325
79,860
878,465
33,298,499
128,938 2,404,860
31,022,577
2010 Taxable Pension Obligation Bonds
60/,6.25%, due 7/l/2025
Total Pension Obligation Bonds
Ground Lease Note Payable,
8.00'/% due l l/l/2024
Court Fine Repayment Promissory Note,
3.873%, due November 2011
Telephone System Capitalized Lease Obligations,
4.28%, due 05/30/2012
Total Governmental Long-term Debt
Business -type Activities
2003 Authority Lease Revenue Bonds
3.00-4.70%, due 4/l/2033
Total Enterprise Fund Debt
San Rafael Sanitation District
2001 Certificates of Participation
3.25-4.40%, due 8/1/2012
Total District Debt
4,490,000 4,490,000
4,490,000
$4,490,000
4,490,000
169,000 169,000 169,000
1,133,458 124,222 124,222
318,000 69,098 69,098
$38,150,819 $128,938 $2,598,180 $31,022,577 $4,659,000
7,605,000 $6,630,000 $185,000 $6,445,000 $190,000
$6,630,000 $185,000 $6,445,000 $190,000
4,710,000 $940,000 $940,000
$940,000 $940,000
54
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 7 - LONG-TERM OBLIGATIONS (Continued)
A. 2010 Taxable Pension Obligation Bonds
On July 1, 2010, the City issued 2010 Taxable Pension Obligation Bonds in the amount of
$4,490,000 bearing interest at rates from 6.00% to 6.25%. Interest on the Bonds are payable on
January 1 and July 1 on each year. Principal payable on the Bonds will be paid on July 1 starting
July 1, 2016. The Bonds were issued to prefund a portion of the obligations of the City to the
Marin County Employees' Retirement Association. Payment of the principal 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 to the Bonds.
B. Ground Lease Note Payable
On November 6, 1989, the City of San Rafael Redevelopment Agency signed a $169,000
promissory note with Bridge Housing Corporation, bearing interest at 8% with principal and
accrued interest due and payable in November 2024. The note was assumed to finance the purchase
of certain property by the Agency. Assembly Bill lx26 dissolved all California redevelopment
agencies, effective January 31, 2012, and required the transfer all assets and liabilities to the
Successor Agency. The City of San Rafael as Housing Successor assumed the liabilities of the
Successor Agency of the Housing fund. This note will be repaid from City Housing Successor Low
and Moderate Income Housing special revenue fund.
C. 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 was 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 bore interest at 3.873% per annum
and had been repaid as of June 30, 2012.
D. Telephone System Capital Lease
On May 30, 2007, the City entered into a capital lease agreement in the amount of $318,000 to
purchase telephone related network equipment and services. Principal and interest payments are
due each May 30 and November 30, commencing November 30, 2007, until November 30, 2011.
The capital lease bore interest at 4.28% per annum and had been repaid as of June 30, 2012.
E. 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. As of June 30, 2012, no redemption has occurred. The Lease
Revenues are secured by lease payments made by the City to the Authority for leasing the City
facilities.
55
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 7 - LONG-TERM OBLIGATIONS (Continued)
F. Discretely Presented Component Unit — San Rafael Sanitation District — 2001 Certificates of
Participation
The District and its Financing Corporation on May 1, 2001, issued $4,710,000 of Certificates of
Participation at a discount of $35,702. The certificates were to be used (1) to refund in whole the
outstanding Series 1991 Certificates of Participation, (2) to finance the District's share of a new
construction corporation yard, (3) to fund in whole or in part, a reserve fund for certificates, and (4)
to pay certain costs of issuing the certificates. The certificates are fully registered with principal
due annually on August 1 and interest payable semi-annually on February 1 and August 1. The
certificates are subject to optional prepayment on any date on or after August 1, 2009. Terms of the
Trust Agreement call for a premium at 101 % to exercise optional prepayment between August 1,
2009, and July 31, 2010, and no premium August 1, 2010, and after. The certificates had been
repaid as of June 30, 2012.
G. Future Debt Service
Future debt service requirements, including interest, at June 30, 2012, are as follows:
For the Year
Ended June 30
2013
2014
2015
2016
2017
2018 - 2022
2023 - 2027
2028 - 2032
2033 - 2033
Governmental Activities
Principal
Interest
$276,512
276,512
276,512
276,512
$100,000
273,512
2,050,000
1,083,729
2,509,000
303,443
Business -type Activities
Principal
Interest
$190,000
$306,741
200,000
299,141
205,000
291,141
215,000
282,685
225,000
273,548
1,280,000
1,209,446
1,605,000
879,130
2,050,000
436,250
475,000
23,750
Totals $4,659,000 $2,766,732 $6,445,000 $4,001,832
m
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 8 —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:
Project
Original
Outstanding
Description
Amount
June 30, 2012
San Rafael Redevelopment Agency
162-175 Belvedere
Multifamily Housing Revenue Bonds
Apartments
$3,590,529
$1,258,905
California Statewide Communities
Development Authority Revenue Bonds
St. Marks School
5,605,000
4,675,000
San Rafael Redevelopment Agency
Variable Rate Demand Multifamily
55 Fairfax
Housing Revenue Bonds
Apartments
3,000,000
2,600,000
San Rafael Redevelopment Agency
San Rafael Commons
Multifamily Housing Revenue Bonds-2001
Apartments
6,100,000
5,440,000
Martinelli House
1,000,000
City of San Rafael
Kaiser Foundation
Variable Rate Revenue Bonds
Hospitals
275,000,000
195,630
San Rafael Redevelopment Agency
Martinelli House
Multifamily Housing Revenue Bonds-2007 Series A
Project
6,000,000
2,148,678
Multifamily Housing Revenue Bonds-2007 Series B
Martinelli House
1,000,000
269,069
NOTE 9 —NET ASSETS AND FUND BALANCE
A. Net Assets
Net Assets is the excess of all the City's assets over all its liabilities, regardless of fund. Net Assets
are divided into three captions. These captions apply only to Net Assets, which is determined only at
the Government -wide level and business type activity and are described below:
Invested in Capital Assets, net of related debt describes the portion of Net Assets which is represented
by the current net book value of the City's capital assets, less the outstanding balance of any debt issued
to finance these assets.
Restricted describes the portion of Net Assets which is restricted to use by the terms and conditions of
agreements with outside parties, governmental regulations, laws, or other restrictions which the City
cannot unilaterally alter. These principally include assets restricted due to low and moderate income
housing loan agreements.
Unrestricted describes the portion of Net Assets which is not restricted to use.
57
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 9 — NET ASSETS AND FUND BALANCE (Continued)
B. Fund Balance
In the fund financial statements, fund balances represent the net current assets of each fund. Net
current assets generally represent a fund's cash and receivables, less its liabilities. The City's fund
balances are classified in accordance with Governmental Accounting Standards Board Statement
Number 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions, which
requires the City to classify its fund balances based on spending constraints imposed on the use of
resources. For programs with multiple funding sources, the City prioritizes and expends funds in the
following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following
hierarchy is ranked according to the degree of spending constraint:
Nonspendable represents balances set aside that do not represent available, spendable resources even
though they are a component of assets. Fund balances required to be maintained intact, such as
Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable,
and land held for redevelopment are included. However, if proceeds realized from the sale or
collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are
required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws,
regulations, or enabling legislation which requires the resources to be used only for a specific
purpose. Encumbrances and nonspendable amounts subject to restrictions are included along with
spendable resources.
Committed fund balances have constraints imposed by formal action of the City Council which may
be altered only by formal action of the City Council. Encumbrances and nonspendable amounts
subject to council commitments are included along with spendable resources.
Assigned fund balances are amounts constrained by the City's intent that they be used for a specific
purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its
designee and may be changed at the discretion of the City Council or its designee. This category
includes encumbrances; Nonspendables, when it is the City's intent to use proceeds or collections for
a specific purpose; and residual fund balances, if any, of Special Revenue, Capital Projects and Debt
Service Funds which have not been restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or
assigned. This includes the residual general fund balance and residual fund deficits, if any, of other
governmental funds.
58
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 9 - NET ASSETS AND FUND BALANCE (Continued)
Detailed classifications of the City's Fund Balances, as of June 30, 2012, are below:
Major Special Revenue Funds
Traffic and
Other
Housing
Governmental
General Fund
Mitigation Gas Tax
Funds
Total
Fund balances:
Nonspendable:
Loans receivable
$512,028
$60,001
$721,088
$1,293,117
Prepaids
15,481
6,942
22,423
Total Nonspendable
527,509
60,001
728,030
1,315,540
Restricted for:
Assessment District capital projects
223,946
223,946
Assessment Districts/open space
76,188
76,188
Baypoint Lagoons Assessment District
173,237
173,237
Bedroom tax capital projects
18,626
18,626
Business improvement
4,437
4,437
Capital improvement capital projects
200,870
200,870
Childcare
2,664
2,664
Emergency medical services
550,335
550,335
1997 financing authority revenue bonds debt service
145,623
145,623
Gas tax
$1,608,641
1,608,641
Grants
569,936
569,936
Household hazmat facility
161,997
161,997
Library
10,383
10,383
Library assessment
560,726
560,726
Loch Lomond Assessment District
918,513
918,513
Mariposa Assessment District debt service
16,519
16,519
Parkland dedication
663,126
663,126
Peacock Gap Assessment District debt service
2,875
2,875
Public safety
188,465
188,465
Pt. San Pedro-Debt-CIP Portion Prat
120,905
120,905
Pt. San Pedro- Maintenance Portion
85,975
85,975
Recreation revolving
14,879
14,879
Street maintenance and cleaning
549,292
549,292
Storm water
723,894
723,894
Traffic and housing mitigation
9,341,095
9,341,095
Total Restricted
76,188
9,341,095 1,608,641
5,907,223
16,933,147
Committed to:
Assessment District capital projects
19,677
19,677
Capital improvement capital projects
19,486
19,486
Low and Moderate Income Housing
1,170,583
1,170,583
Childcare
1,485
1,485
Development services
137,600
137,600
Gas tax
2,872,606
2,872,606
Household hazmat facility
56,253
56,253
Library
95,538
95,538
Park capital projects
11,115
11,115
Parkland dedication
275,725
275,725
Project development
651,121
651,121
Recreation revolving
101,585
101,585
Storm water
278,160
278,160
Street maintenance and cleaning
82,643
82,643
Telephone replacement capital projects
12,801
12,801
Total Committed
651,121
2,872,606
2,262,651
5,786,378
Assigned to:
Contractual commitments
81,899
81,899
Development services
650,503
650,503
Emergency and cash flow
1,319,745
1,319,745
Equipment replacement capital projects
3,613,149
3,613,149
Household hazmat facility
2,048
2,048
Library
140,177
140,177
Open space capital projects
134,559
134,559
Park capital projects
504
504
Project development
115,000
115,000
Radio replacement capital projects
560,363
560,363
Recreation revolving
12,649
12,649
Sewer Maintenance
31,140
31,140
Telephone replacement capital projects
138,467
138,467
Total Assigned
1,516,644
5,283,559
6,800,203
Total Fund Balances
$2,771,462
$9,401,096 $4,481,247
$14,181,463
$30,835,268
59
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 10 — EMPLOYEES RETIREMENT PLAN
A. Plan Description
The City contributes to the Marin County Employees' Retirement Association (Association). All full-
time and permanent part-time employees who work at least 75% of a full time position are eligible to
participate.
The Association is an agent multiple -employer defined benefit retirement plan that acts as a common
investment and administrative agent for various local governmental agencies within the County of
Marin. The Association provides retirement, disability, and death benefits based on the employee's
years of service, age, and final compensation. Employees vest after five years of service and are eligible
to receive retirement benefits after 10 years of service and having attained the age of 50, or 30 years of
service (20 years for safety employees) regardless of age. These benefits provisions and all other
requirements are established under the County Employees' Retirement Law of 1937. The City's
retirement plan is included in a separately issued report from the Marin County Employees' Retirement
Association, which can be obtained from Marin County Employee's Retirement Association, 3501
Civic Center Drive, Room 408, Civic Center, San Rafael, California 94903.
B. Funding Policy
The funding policy of the Association provides for actuarially determined periodic contributions by the
City at rates such that sufficient assets will be available to pay Fund benefits when due. The City
contributed 53.76% and 68.77% of payroll to Fund for Police and Fire personnel, respectively, and
40.78% for other covered employees for the year ended June 30, 2012.
C. Annual Pension Cost
The annual required contribution was determined as part of the actuarial performed as of June 30, 2011.
The employer rates for normal cost is determined using the Entry Age Normal Actuarial 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 2011 actuarial valuation include an assumed rate of
return on invested assets of 7.50%, annual payroll increases reflecting 3.25% for inflation and an
approximate range of 0.50% to 5.00% for merit and longevity. The actual rate of return on investments
was a gain of 23.40%. 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 3.25% over the amortization period. The City uses the actuarially
determined percentages of payroll to calculate and pay contributions to the Association. 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
(APQ
Contributed
Obligation
2010
$12,745,613
100%
$0
2011
15,40%519
100%
0
2012
14,627,709
100%
0
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 10 —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
Actuarial
Actuarial
Accrued
Valuation
Value
Liability (AAL)
Date
of Assets
Entry Age
6/30/09
$239,841,000
$379,801,000
6/30/10
248,500,000
394,889,000
6/30/11
258,963,000
412,743,000
Excess
Excess (Deficit)
(Deficit)
Assets Over AAI
Assets
Funded
Covered
As a % of
Over AAL
Ratio
Payroll
Payroll
($139,960,000)
63%
$32,413,000
(432%)
(146,389,000)
63%
30,320,000
(483%)
(153,780,000)
63%
31,692,000
(485%)
NOTE 11 - PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION
RETIREMENT PLANS)
The City contributes to the Public Agency Retirement System (PARS), which is a defined contribution
retirement plan. A defined contribution retirement plan provides retirement benefits in return for
services rendered, provides an individual account for each participant, and specifies how contributions
to the individual's accounts are determined instead of specifying the amount of benefits the individual is
to receive. The plan is administered by Phase H located at P.O. Box 12919, Newport Beach, California
92658.
Under a defined contribution retirement 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 part-time and temporary employees of the City become
participants in the plan from the date that they are hired. An eligible employee is any employee who, at
any time during which the employer maintains this plan, is not accruing a benefit under the Marin
County Employees' Retirement Fund.
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 each contributed $58,965. The total covered payroll of
employees participating in the plan for the year ended June 30, 2012, was $1,572,396. The total payroll
for the year was $35,391,347.
Additionally, the City participates in a 401(a) tax qualified plan for eligible non -represented
managementimid-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 $125,834 to the plan on behalf of the
eligible employees.
61
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 12 —POST-EMPLOYMENT HEALTH CARE BENEFITS
The City provides certain health care benefits for retired employees and their spouses. The benefit
provisions were established under the authority of the 1937 Act, Section 31450, et. seq. of the
Government Code. Employees who meet the vesting criteria 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, 2012, 316 retirees and surviving spouses
received post -employment health care benefits.
The provisions and benefits of the City's Other Post Employment Benefit Plan, in effect at June 30,
2012, are summarized as follows:
Elected Officials, Mid -Management, &
Unrepresented Management
All other Bargaining Units
Eligibility
Retire directly from the City:
- Age 50 (age 55 if hired > 7/l/l 1) with 10 years services (Including reciprocity) OR
- 30 years service (Miscellaneous), 20 years service (Safety) OR
- Disability Retirement
Benefit
Hired < 1/l/09 Full premium/cap
Hired < 1/1/10 Up to cap
Hired > l/1/09 PEMHCA Min
Hired > 1/1/10 PEMHCA Min
Surviving Spouse Benefit
Continuation to surviving spouse
Medicare Part B
Hired < 4/l/07 Full reimbursement
None
Hired > 4/1/07 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, 2011, 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) 4.25% investment rate of return and (b)
3.25% of general inflation increase, and (c) a healthcare trend of declining annual increases ranging
from 9.40% in 2013 to 5.00% for years starting 2021. 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. Projections of benefits for financial reporting
purposes are based on the substantive plan (the plan as understood by the City and the plan members)
and include the types of benefits provided at the time of each valuation and the historical pattern of
sharing benefit costs between the City and plan members at that point. 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 biennially 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 23-year fixed (closed) period for June 30, 2012
Unfunded Actuarially Accrued Liability.
62
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 12 — POST -EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Funding Progress and Funded Status
During the fiscal year ended June 30, 2012, the City has recorded a Net OPEB Obligation in the
Statement of Net Assets, representing the difference between the ARC and actual contributions, as
presented below:
Amounts
(in thousands)
Annual required contribution (ARC) $2,312
Interest on net OPEB obligation 621
Adjustment to annual required contribution 300
Annual OPEB cost 3,233
Contributions made:
Benefits payment 2,124
Total contributions 2,124
Change in net OPEB obligation/(asset) 1,109
Net OPEB Obligation (Asset) at June 30, 2011, as restated* 6,485
Net OPEB Obligation (Asset) at June 30, 2012 $7,594
*See Note I.N. for explanation of restatement.
In accordance with the City's budget, the City's annual contributions to the Plan are based on pay-as-
you-go financing. Generally accepted accounting principles permit assets to be treated as OPEB
assets and deducted from the Actuarial Accrued Liability when such assets are placed in an
irrevocable trust or equivalent arrangement. Contributions a 401(h) account held and administered
by the MCERA were made by the City in prior years and were included in the June 30, 2011,
actuarial study, as of June 30, 2012 the account balance is $11,178,164. During the fiscal year ended
June 30, 2012, the City has calculated and recorded the Net OPEB Obligation, representing the
difference between the ARC, and contributions, as presented below:
Annual
Required
Annual
Contribution
OPEB Cost
Actual
Percentage
Net OPEB
Fiscal Year
(ARC)
(AOC)
Contribution
of AOC
Obligation
Ended
(000's omitted)
(000's omitted)
(000's omitted)
Contributed
(000's omitted)
June 30, 2010
$4,390
$5,576
$2,344
31%
$5,265
June 30, 2011
4,025
3,868
25648
66%
6,485
June 30, 2012
25312
3,233
2,124
92%
7,594
63
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 12 — POST -EMPLOYMENT 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, 2011, actuarial study is presented below:
Actuarial
Value of
Valuation
Assets
Date
(000's omitted)
6/30/2007
$14,563
6/30/2009
12,773
6/30/2011
10,861
Unfunded
Accrued
Accrued
Liability
Liability
Funded
(000's omitted)
(000's omitted)
Ratio
$52,767
($38,204)
28%
56,262
(43,489)
23%
35,156
(24,295)
31%
NOTE 13 —JOINTLY GOVERNED ORGANfZATIONS
Annual
Covered
Payroll
(000's omitted)
$36,470
35,401
33,819
Overfunded
(Underfunded)
Actuarial
Liability as
a Percentage of
Covered
Payroll
104.75%
122.85%
(71.84%
The City participates in the jointly governed organizations discussed below through formally organized
and separate entities established under the Joint Exercise of Powers Act of the State of California. As
separate legal entities, these entities exercise full powers and authorities within the scope of the related
Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the
power to make and execute contracts and the right to sue and be sued. Each joint organization is
governed by a board consisting of representatives from member municipalities. Each board controls the
operations of the respective joint organization, including selection of management and approval of
operating budgets, independent of any influence by member municipalities beyond their representation
on that board. Obligations and liabilities of this joint organization are not the City's responsibility and
the City does not have an equity interest in the assets of each joint organization except upon dissolution
of the joint organization.
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 17.5% 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 $142,681 to the System for
operating costs for the year ended June 30, 2012. Financial statements of the System can be obtained
at the County Librarian, Marin County Free Library, Civic Center, Administration Building, San
Rafael, California 94903.
64
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 13 — 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 MSLAJPA.
The City's contribution to MGSA was $3,134 for the year ended June 30, 2012. Financial statements
of the MGSA can be obtained at 27 Commercial Boulevard, Suite C, Novato, CA 94949.
C. The Marin Emergency Radio Authority (MER,4)
MERA was formed on February 28, 1998, by the County of Marin and 25 local agencies within the
County to plan, finance, implement, manage, own, and operate a County -wide public safety and
emergency radio system. The Governing Board consists of one representative from each member.
On February 1, 1999, the Authority issued the 1999 Revenue Bonds in the amount of $26,940,000
with interest rates ranging from 4.75% to 5.01 %, maturing on August 15, 2016, to finance the
acquisition and installation of the system. The costs of maintenance, operation, and debt service will
be divided on a pro rata share based on an agreed -upon formula established by a majority of the
Governing Board. The members entered into a Project Operating Agreement on February 1, 1999.
Under the Operating Agreement, members are obligated to contribute service payments to cover the
Authority's operation and debt service. The City's portion of the obligation is 16.913%. The first
operating service payment was in July 1999. The first debt service payment was in August 2002.
The City contributed $256,400 or the Authority's operation and debt service for the fiscal year ended
June 30, 2012. 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 member of the City Council of each
participating city. Financial statements of the Agency can be obtained at 3501 Civic Center Drive,
San Rafael, California 94903.
E. The Marin Telecommunications Agency
The Agency was established to regulate the rates for cable television service and equipment and to
advise the participants of their license authority. The Governing Board of the Marin
Telecommunications Agency consists of one member from each of the eleven participating agencies.
The City's contribution to the Agency was $61,026 for the year ended June 30, 2012. Financial
statements of the Agency can be obtained at 371 Bel Marin Keys Blvd, Suite 100, Novato, CA
94949.
11
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 13 — 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 $13,187 for the year ended June 30, 2012. Financial statements of the Authority can be obtained
at 3501 Civic Center Drive, San Rafael, California 94903.
G. Friends of San Rafael
Friends of San Rafael is a California nonprofit Public Benefit Corporation established to help finance
and accomplish the City's efforts to erect, construct and maintain public buildings, roads,
monuments, plazas, parks, gardens, safety features and similar public improvement and
infrastructure. Financial statements of the Corporation can be obtained at P.O. Box 151560, San
Rafael, CA 94915.
NOTE 14 - RISK MANAGEMENT
The City manages risk by participating in the public entity risk pools described below and by retaining
certain risks.
Public entity risk pools are formally organized and separate entities established under the Joint Exercise
of Powers Act of the State of California. As separate legal entities, those entities exercise full powers
and authorities within the scope of the related Joint Powers Agreements including the preparation of
annual budgets, accountability for all funds, the power to make and execute contracts and the right to
sue and be sued. Each risk pool is governed by a board consisting of representatives from member
municipalities. Each board controls the operations of the respective risk pool, including selection of
management and approval of operating budgets, independent of any influence by member municipalities
beyond their representation on that board. Obligations and liabilities of these risk pools are not the
City's responsibility.
A. Risk Coverage
Liability Coverage
The City is a member of the California Joint Powers Risk Management Authority (CJPRMA) which
covers general liability claims up to $40,000,000. The City also purchases commercial insurance for
property damage claims with an insured amount of $98,988,149. The City is self -insured up to
$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 liability claims up to the
limit. During the fiscal year ended June 30, 2012, the City contributed $222,403 for coverage during the
current year and received a refund of $133,846 of prior year excess contributions. Financial statements
for the risk pools may be obtained from CJPRMA, 3252 Constitution Dr., Livermore CA 94551.
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 14 -RISK MANAGEMENT (Continued)
Workers' Compensation Coverage
The City purchased insurance for workers' compensation through Safety National Casualty Corporation
Excess Workers' Compensation and Employers Liability Insurance with coverage up to statutory limits.
The City is self -insured up to $750,000 for each worker's compensation claim.
The contributions made to each risk pool equal the ratio of their respective payrolls to the total payrolls
of all entities participating in the same layer of each program, in each program year. Actual surpluses or
losses are shared according to a formula developed from overall loss costs and spread to member
entities on a percentage basis after a retrospective rating.
B. Insurance Internal Service Funds
The Governmental Accounting Standards Board (GASB) requires municipalities to record their liability
for uninsured claims and to reflect the current portion of this liability as an expenditure in their financial
statements. As discussed above, the City has coverage for such claims, but it has retained the risk for
the deductible or uninsured portion of these claims.
The City's liability for uninsured general liability claims and workers' compensation claims, including
claims incurred but not reported, are reported in the Statement of Net Assets. The liability is based on
historical trend information provided by its third party administrators and was computed as follows at
June 30:
Balance, beginning of year
Current year claims and changes
in estimates
Claims paid
Balance, end of year
Current portion
General Workers' Totals, as of June 30
Liability Compensation 2012 2011
$434,716 $3,535,461 $3,970,177 $3,598,587
2,482,475 1,458,131 3,940,606 2,387,289
(336,027) (275,394) (611,421) (2,015,699)
$2,581,164 $4,718,198 $7,299,362 $3,970,177
$472,257 $1,370,563 $1,842,820 $2,200,000
The claims settlements have not exceeded insurance coverage for the past three years.
NOTE 15 - COMMITMENTS AND CONTINGENCIES
Litigation
The City is subject to litigation arising in the normal course of business. In the opinion of the City
Attorney there is no pending litigation which is likely to have a material adverse effect on the
financial position of the City.
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 eight
years and is in the process of completing the few remaining projects identified in the Settlement
Agreement.
67
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 15 - COMMITMENTS AND CONTINGENCIES (Continued)
Among those projects is the construction of 800 curb ramps throughout San Rafael. As of June 30,
2012, the City has construction 361 ramps with plans to install the remaining ramps over the life of
the Agreement, which expires in 2014.
NOTE 16 — REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY
ACTIVITIES
A. Redevelopment Dissolution
In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, amended
by AB 1484 on June 27, 2012, which suspended all new redevelopment activities except for limited
specified activities as of that date and dissolved redevelopment agencies on January 31, 2012.
The suspension provisions prohibited all redevelopment agencies from a wide range of activities,
including incurring new indebtedness or obligations, entering into or modifying agreements or
contracts, acquiring or disposing of real property, taking actions to adopt or amend redevelopment
plans and other similar actions, except actions required by law or to carry out existing enforceable
obligations, as defined in ABx1 26.
In addition, ABxl 26 and AB 1484 directed the State Controller to review the activities of all
redevelopment agencies and successor agencies to determine whether an asset transfer between an
agency and any public agency occurred on or after January 1, 2011. If an asset transfer did occur and
the public agency that received the asset is not contractually committed to a third party for the
expenditure or encumbrance of the asset, the legislation purports to require the State Controller to
order the asset returned to the redevelopment agency. The State Controller's Office has not yet
scheduled its asset transfer review.
Effective January 31, 2012, all redevelopment agencies were dissolved. Certain assets of the
Redevelopment Agency Capital Projects Fund were distributed to the Housing Successor and all
remaining Redevelopment Agency assets and liabilities were distributed to the Successor Agency.
The City elected to become the Housing Successor and on February 1, 2012, certain housing assets
were transferred to the City's Low and Moderate Income Housing Special Revenue Fund.
The City also elected to become the Successor Agency and on February 1, 2012, the Redevelopment
Agency's remaining net assets were distributed to the Successor Agency. ABx1 26 requires the
establishment of an Oversight Board to oversee the activities of the Successor Agency and one was
established on April 2, 2012. The activities of the Successor Agency are subject to review and
approval of the Oversight Board, which is comprised of seven members.
The activities of the Successor Agency are reported in the Successor Agency to the Redevelopment
Agency Private -Purpose Trust Fund as the activities are under the control of the Oversight Board. The
City provides administrative services to the Successor Agency to wind down the affairs of the former
Redevelopment Agency.
68
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 16 — REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY
ACTIVITIES (Continued)
A summary of assets distributed and liabilities assumed by the Successor Agency, reported as an
Extraordinary Item, is presented below:
ASSETS
Current assets:
Cash and investments
Total current assets
Noncurrent assets:
Restricted cash and investments
Loan receivable
Capital assets
Land
Depreciable capital assets, net
Total noncurrent assets
Total Assets
LIABILITIES
Current liabilities:
Accounts payable
Interest payable
Advances from the City of San Rafael
Long-term debt - due within one year
Total current liabilities
Noncurrent liabilities:
Long-term debt - due in more than one year
Total noncurrent liabilities
Total Liabilities
NET ASSETS
Governmental
Transfer to
Transfer to Ending
Activities
Successor
Housing Balance
(Prior to transfer)
Agency
Successor January 31, 2012
$2,672,320
($1,283,907)
($1,388,413)
2,672,320
(1,283,907)
(1,388,413)
1,375,315
(1,375,315)
553,307
(553,307)
39,000
(39,000)
17,381
(17,381)
1,985,003
(1,375,315)
(609,688)
4,657,323
(2,659,222)
(1,998,101)
31,973
(15,312)
(16,661)
255,838
(255,838)
291,326
(291,326)
579,137
(562,476)
(16,661)
31,191,577
(31,022,577)
(169,000)
31,191,577
(31,022,577)
(169,000)
31,770,714
(31,585,053)
(185,661)
($27,113,391)
$28,925,831
($1,812,440)
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 16 — REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY
ACTIVITIES (Continued)
See Notes 2, 4 and 5 for details of the cash and investments, loans and capital assets assumed by the
Housing Successor Agency.
B. Long Term Debt
1999 Tax Allocation Bonds and Capital Appreciation Bonds
On June 165 199% the Agency issued Tax Allocation Bonds in the amount of $23,504,004. The bonds
were issued as Current Interest Bonds in the aggregate principal amount of $21,115,000 and as Capital
Appreciation Bonds in the original amount of $2,389,004. The proceeds of the bonds were used to
finance certain redevelopment activities of benefit to the Agency's Central San Rafael Redevelopment
Project Area.
In December, 2009 of the Agency exercised the redemption option of the Current Interest Bonds. The
outstanding balance of the Bonds were refunded, on a current basis, through the issuance of the 2009
Tax Allocation Refunding Bonds as discussed 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%. Interest on the
Capital Appreciation Bonds will compound on each interest premium date and will be payable solely at
maturity. The bonds are secured, on parity with the 1992 and 1995 bonds (refunded in 2002), by a
pledge and a lien on tax revenues and amounts on deposit in certain funds and accounts held by the
fiscal agent.
2002 Tax Allocation Refunding Bonds
On October 9, 2002, the Agency issued Tax Allocation Refunding Bonds in the amount of $25,020,000.
The proceeds of the bonds were used to refund the 1992 Tax Allocation Refunding Bonds and the 1995
Tax Allocation Bonds. The Bonds mature annually each December 1 from 2002 to 2022, in amounts
ranging from $540,000 to $1,920,000 and bear interest at rates ranging from 2.00% to 5.25%. Interest is
payable semiannually on June 1 and December 1. The Bonds maturing on or after December 1, 2013,
are subject to optional redemption prior to maturity, in whole or in part, and by lot within any one
maturity, prior to their respective maturity dates, on any date on or after December 1, 2012, at a price
equal to the principal amount, plus accrued interest on the redemption date. The bonds are payable
from tax revenues to be derived from the redevelopment activities of the Agency related to the Central
San Rafael Redevelopment Project Area.
70
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 16 — REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY
ACTIVITIES (Continued)
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 Interest 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 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 any one 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 Income 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 $39.2 million in remaining debt service on the Bonds, which is
scheduled to occur in 2023. For fiscal year June 30, 2012, tax increment revenues transferred to the
City by the County of Marin amounted to $3.5 million which was used to make the debt service
payments of $3.5 million.
The Successor Agency assumed the long-term debt of the Redevelopment Agency as of February 1,
2012. The debt issues and transactions are summarized below and discussed in detail in Note 7.
Governmental Activities:
San Rafael Redevelopment Agency
1999 Tax Allocation Bonds
Capital Appreciation Bonds
5.58%-5.6%, due 12/1/2022
2002 Tax Allocation Refunding Bonds
2.00%-5.251/o, due 12/1/2021
2009 Tax Allocation Refunding Bonds
3.00%-5.000/o, due 12/1/2022
Add: deferred bond premium costs
Transfer from
Redevelopment
Authorized Agency as of
and Issued February 1, 2012
$2,389,004
25,020,000
$4,739,112
12,525,000
14,660,000 12,880,000
878,465
Balance Current
Additions June 30, 2012 Portion
$132,485 $4,871,597
12,525,000 $1,495,000
12,880,000 930,000
878,465
Total Governmental Long-term Debt $31,022,577 $132,485 $31,155,062 $2,425,000
71
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 16 — REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY
ACTIVITIES (Continued)
Debt Service Requirements
Annual debt service requirements are shown below:
For the Year
Ended June 30
2013
2014
2015
2016
2017
2018 - 2022
2023 - 2027
Totals
Reconciliation of long-term debt:
Less unaccreted discount
Add deferred bond premium costs
C. Commitment and Contingencies
1. State Approval of Enforceable Obligation
Governmental Activities
Principal
$2,425,000
2,540,000
2,675,000
2,800,000
2,930,000
16,335,000
3,530,000
Interest
1,140,269
1,023,576
893,201
766,926
634,276
1,486,715
36,500
33,235,000 $5,981,463
(2,958,403)
878,465
$31,155,062
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi-annually that
contains all proposed expenditures for the subsequent six-month period. The ROPS is subject to the
review and approval of the Oversight Board as well as the State Department of Finance. The State
Department of Finance has stated that all items on a future ROPS are subject to a subsequent review.
The amount, if any, of current obligations that may be denied by the State Department of Finance
cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
2. State Asset Transfer Review
The activities of the former Redevelopment Agency and the Successor Agency are subject to further
examination by the State of California and the amount, if any, of expenditures which may be disallowed
by the State cannot be determined at this time. In addition, the State Controller's Office will be
conducting a review of the propriety of asset transfers between the former Redevelopment Agency or
the Successor Agency and any public agency that occurred on or after January 1, 2011 and the amount,
if any, of assets that may be required to be returned to the Successor Agency cannot be determined at
this time. The City expects such amounts, if any, to be immaterial.
72
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 16 — REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY
ACTIVITIES (Continued)
3. Low and Moderate Income Housing Fund Due Diligence Review
Pursuant to Health and Safety Code (HSC) section 34179.6 (c), the City of San Rafael Successor
Agency (Agency) submitted an Oversight Board approved Low and Moderate Income Housing Due
Diligence Review (DDR) to the California Department of Finance (DOF) on October 15, 2012. In
November 2012, the DOF sent correspondence to the City questioning a transfer of $1,371,751 for
cash and investment transfers made. The City contends the transfers were lawfully made and has
requested a "meet and confer" with the DOF regarding this issue, which has yet to be scheduled by
the DOF.
4. Demand for True -Up Payment
Pursuant to Health and Safety Code section 34183.5 (b), Successor Agencies are required to remit a
True -Up Payment representing a calculation of tax increment collected in December 2011 by the
former Redevelopment Agency in excess of the enforceable obligations, as approved by the County
Auditor/Controller. On July 9, 2012 the Successor Agency received a Demand from the County
Auditor/Controller that had calculated a True -Up Payment of $1,731,446. Management reviewed the
calculation and believes it is inaccurate. Management's calculation of the True -Up Payment amounted
to $148,589 and on July 12, 2012 the Successor Agency remitted that amount to the County
Auditor/Controller. The remaining unpaid balance of the Demand has not been recorded in the
accompanying financial statements as management believes its calculation is accurate.
NOTE 17 — SUBSEQUENT EVENTS
A. Refunding of 2003 Authority Lease Revenue Bonds
The San Rafael Joint Power Financing Authority financed the construction of the P and C Street
parking structure in 2003 through the issuance of lease revenue bonds in the original principal amount
of $7,605,000. These bonds were issued for 30 years and had an average coupon of 4.77% and annual
debt service of approximately $500,000. Based on favorable market conditions, the Authority was able
to refinance the 2003 bonds in August 2012, and achieved lower interest rates and lower annual debt
service payments. The City will realize annual savings of $41,100 to $50,200 per year for a total
$670,496 in total savings over the remaining 21 years. Savings will begin in the fiscal year 2012/13.
This amount represents approximately 10% in present value savings.
B. Pt. San Pedro Road Median Landscaping Assessment District Limited Obligation Bonds
The Pt. San Pedro Road Median Landscaping Assessment District was formed in June 2011 for the
purpose of financing and maintaining median improvements that benefit property owners within the
assessment district. The annual assessment tax levy is dedicated to Assessment District
administration, debt service on bonds, and ongoing maintenance of the median improvements. The
City Council approved the project and the construction contract was awarded to the lowest bidder on
June 4, 2012 with instruction to proceed once financing had been secured.
73
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2012
NOTE 17 — SUBSEQUENT EVENTS (Continued)
The original engineer's plan estimated that the project would require the issuance of $1,750,000 in
bonds in order to support construction of the median improvements. The City chose to issue the bonds
as a private placement to avoid the financing expenses associated with selling the bonds in the
municipal market, and determined that there was sufficient liquidity in its investment portfolio to
purchase the bonds for its own portfolio. In August 2012, the Financing Authority issued, and the City
purchased the Assessment District bonds in the amount of $1,750,000 with an annual interest rate of
5.25%.
74
REQUIRED SUPPLEMENTAL INFORMATION
75
This Page Left Intentionally Blank
GENERAL FUND AND MAJOR SPECIAL REVENUE FUND
BUDGET -TO -ACTUAL STATEMENTS
GASB Statement No. 34 dictates that budget -to -actual information in the basic financial statements should
be limited to the General Fund and major Special Revenue Funds. This section is provided for the
presentation of Budget -to -Actual Statements for the General Fund, Traffic and Housing Mitigation, and the
Gas Tax Special Revenue Funds.
77
CITY OF SAN RAFAEL
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2012
REVENUES
Taxes and special assessments
Licenses and permits
Fines and forfeitures
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Community development/redevelopment
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
FUND BALANCES, BEGINNING OF YEAR, as restated
FUND BALANCES, END OF YEAR
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$42,673,640
$43,586,030
$43,437,974
($148,056)
1,406,350
1,585,350
1,648,890
63,540
459,200
715,200
801,758
86,558
168,200
148,200
153,195
4,995
6,608,580
6,396,784
6,431,644
34,860
1,561,470
1,958,000
2,060,631
102,631
107,360
299,840
368,840
69,000
52,984,800
54,689,404
54,902,932
213,528
5,876,750
8,046,511
8,659,643
(613,132)
33,368,550
32,457,705
31,753,176
704,529
8,446,080
8,396,035
8,228,225
167,810
3,022,310
2,926,923
2,913,184
13,739
2,278,530
2,232,732
2,198,155
34,577
44,850
40,764
200,203
(159,439)
40,000
105,000
115,781
(10,781)
123,460
123,460
124,222
(762)
85,232
85,415
(183)
53,200,530
54,414,362
54,278,004
136,358
(215,730)
275,042
624,928
349,886
2,490,940
1,526,692
1,535,944
9,252
(1,763,250)
(1,790,884)
(2,204,744)
(413,860)
727,690
(264,192)
(668,800)
(404,608)
$511,960
$10,850
(43,872)
($54,722)
2,815,334
$2,771,462
78
CITY OF SAN RAFAEL
TRAFFIC AND HOUSING MITIGATION SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2012
REVENUES
Use of money and properties
Charges for services
Total Revenues
EXPENDITURES
Current:
Public works and parks
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
Net Change in Fund Balances
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$48,100
$18,940
$27,797
$8,857
287,609
287,609
48,100
18,940
315,406
296,466
70,810
70,810
70,565
245
70,810
70,810
70,565
245
(22,710) (51,870)
($22,710) ($51,870)
244,841 $296,711
9,156,255
$9,401,096
79
CITY OF SAN RAFAEL
GAS TAX SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED DUNE 30, 2012
REVENUES
Use of money and properties
Intergovernmental
Charges for services
Total Revenues
EXPENDITURES
Current:
Public works and parks
Capital outlay
Capital improvement/special projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out)
Total Other Financing Sources (Uses)
Net Change in Fund Balances
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$10,090
$3,750
$8,379
$4,629
3,714,390
2,514,390
2,557,421
43,031
496,000
496,000
955,691
459,691
4,220,480
3,014,140
3,521,491
507,351
1,198,630
29,122
19,343
9,779
796,000
411,973
384,027
1,996,000
1,382,925
394,281
988,644
3,194,630
2,208,047
825,597
1,382,450
1,025,850
806,093
2,695,894
1,889,801
213,415 792,139 578;724
(440,000) (440,000) (447,579) (7,579)
(440,000) (226,585) 344,560 571,145
$585,850 $579,508 3,040,454 $2,460,946
1,440,793
$4,481,247
80
SUPPLEMENTARY INFORMATION
81
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
geotechnical 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.
Library Assessment Fund - Established to account for a special parcel tax dedicated to public
library services and facilities, equipment, and technology improvements.
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.
83
NON -MAJOR GOVERNMENTAL FUNDS (Continued)
Business Improvement Fund — Established to account for activities held in Downtown San Rafael,
such as the Farmers Market.
Sewer Maintenance Fund — Established under the terms of the JPA to provide all necessary
maintenance to the Sanitation District's gravity collection sewer system.
Pt. San Pedro Maintenance Portion Special Revenue Fund — Established to account for ongoing
maintenance needs within the Pt. San Pedro assessment district.
Low and Moderate Income Housing Special Revenue Fund — Established to account for the
activities related to the assets assumed by the City as Housing Successor to the San Rafael
Redevelopment Agency for the housing activities of the former Redevelopment Agency.
DEBT SERVICE FUNDS
Peacock Gap Assessment District Fund — Established to accumulate funds for the payment of
principal and interest for the 1993 Bonds which mature in 2005. The proceeds were used to refund
the 1984 Bonds, which provided for the construction of public improvements in the project area.
Financing is to be provided by property tax increments generated within the specific geographic
region described by the bond assessment district.
Mariposa Assessment District Fund - Established to accumulate funds for the payment of principal
and interest for the 1993 Bond, which matures in 2008. The proceeds were used to finance the
grading and paving of Mariposa Road.
1997 Financing Authority Revenue Bonds Fund — Established to accumulate funds for the
payment of principal and interest for the 1997 Revenue Bonds which matures in 2011. The proceeds
were used to purchase the previously issued special assessment bonds. Financing is to be provided
by property tax increments generated within the specific geographic region described by the bond
assessment district.
Pt. San Pedro Debt-CIP Portion Payment Debt Services Fund — Established to accumulate funds
for payment of principal and interest for Pt. San Pedro Assessment District bonds.
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.
84
NON -MAJOR GOVERNMENTAL FUNDS (Continued)
Assessment Districts Fund — Established to account for ongoing construction and improvement needs
within the following assessment districts: Peacock Gap, Kerner Boulevard, Sun Valley/Lucas Valley
Open Space, East San Rafael Drainage Assessment District 1.
Park Capital Projects Fund — Established to account for capital improvements for all City owned
parks, whether paid for by City funds, grants, donations, or partnership with the community.
Open Space Fund — Established for the acquisition of open space.
Equipment Replacement Fund - Established to provide replacement of equipment.
Radio Replacement Fund - Established to meet radio system operating costs, capital acquisition and
replacement, and operating lease obligations for the Public Works, Fire, Community Development and
Police Departments. The Marin Emergency Radio Authority (MERA) is a countywide JPA that has
taken the roll in procurement and installation of a new digital radio system. This fund supports San
Rafael's portion of the MERA efforts and related contractual obligations.
Telephone Replacement Fund — Established to provide ongoing support services for telephone
equipment and usage throughout the City.
Redevelopment Agency Capital Project Fund — Established to account for the capital projects
activities of the San Rafael Redevelopment Agency.
85
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUKE 30, 2012
SPECIAL REVENUE FUNDS
Baypoint
Lagoons
Household
Street
Recreation
Assessment
Hazmat
Maintenance
Revolving
District
Facility
Childcare
and Cleaning
ASSETS
Cash and investments
$235,546
$172,793
$208,504
$23,262
$631,935
Receivables:
Accounts
218,285
269,242
Taxes
444
Grants
1,831
18,287
Loans
Prepaids
Total Assets
$455,662
$173,237
$477,746
$41,549
$631,935
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
$81,993
$257,448
$37,400
Developer bonds payable
Deferred revenue
244,556
Total Liabilities
326,549
257,448
37,400
Fund Balances:
Nonspendable
Restricted
14,879
$173,237
161,997
2,664
$549,292
Committed
101,585
56,253
1,485
82,643
Assigned
12,649
2,048
Total Fund Balances
129,113
173,237
220,298
4,149
631,935
Total Liabilities and Fund Balances
$455,662
$173,237
$477,746
$41,549
$631,935
86
SPECIAL REVENUE FUNDS
Loch Lomond
Assessment Library
Public Development
District Library Assessment
Safety Stormwater Services Grants
$918,240 $248,266 $567,090
$155,828 $1,006,434 $798,916 $443,934
33,194
273 14,912
13,713
181,557
$918,513 $248,266 $582,002 $189,022 $1,020,147 $798,916 $625,491
$2,168
$21,276
$557
$18,093
$9,313
$55,555
1,500
2,168
21,276
557
18,093
10,813
55,555
$918,513 10,383
560,726
188,465
723,894
569,936
95,538
278,160
137,600
140,177
650,503
918,513 246,098
560,726
188,465
1,002,054
788,103
569,936
$918,513 $248,266
$582,002
$189,022
$1,020,147
$798,916
$625,491
(Continued)
87
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2012
SPECIAL REVENUE FUNDS
Emergency
Pt. San Pedro -
Parkland
Medical
Business
Sewer
Maintenance
Dedication
Services
Improvement
Maintenance
Portion
ASSETS
Cash and investments
$811,304
$363,667
$4,437
$9,828
$84,429
Receivables:
Accounts
25,000
204,208
45,000
Taxes
66,572
1,546
Grants
103,077
Loans
Prepaids
6,942
Total Assets
$939,381
$641,389
$4,437
$54,828
$85,975
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
$530
$84,112
$23,688
Developer bonds payable
Deferred revenue
Total Liabilities
530
84,112
23,688
Fund Balances:
Nonspendable
6,942
Restricted
663,126
550,335
$4,437
$85,975
Committed
275,725
Assigned
31,140
Total Fund Balances
938,851
557,277
4,437
31,140
85,975
Total Liabilities and Fund Balances
$939,381
$641,389
$4,437
$54,828
$85,975
88
SPECIAL
REVENUE
DEBT SERVICE FUNDS
Low and
1997
Pt. San Pedro-
Redevelopment
Moderate
Peacock Gap
Mariposa
Financing
Debt-CIP
Agency
Income
Assessment
Assessment
Authority
Portion
Debt
Housing
District
District
Revenue Bonds
Payment
Service
$1,130,196
$2,875
$16,519
$145,623
$118,731
40,387
2,174
721,088
$1,891,671 $2,875 $16,519 $145,623 $120,905
$721,088
$2,875 $16,519 $145,623 $120,905
1,170,583
1,891,671 2,875 16,519 145,623 120,905
$1,891,671 $2,875 $16,519 $145,623 $120,905
CAPITAL
PROJECT
FUNDS
Capital
Improvement
$123,242
97,297
$220,539
$183
183
200,870
19,486
220,356
$220,539
(Continued)
89
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUKE 30, 2012
ASSETS
Cash and investments
Receivables:
Accounts
Taxes
Grants
Loans
Prepaids
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Developer bonds payable
Deferred revenue
Total Liabilities
Fund Balances:
Nonspendable
Restricted
Committed
Assigned
Total Fund Balances
Total Liabilities and Fund Balances
CAPITAL PROJECT FUNDS
Park
Bedroom Assessment Capital Open Equipment
Tax Districts Projects Space Replacement
$18,626 $243,623 $21,510 $134,559 $3,670,827
$18,626 $243,623 $21,510 $134,559 $3,670,827
$9,891
9,891
$57,678
57,678
$18,626 $223,946
19,677
11,115
504 $134,559 3,613,149
18,626 243,623
11,619 134,559 3,613,149
$18,626 $243,623
$21,510 $134,559 $3,670,827
&E
CAPITAL PROJECT FUNDS
Redevelopment Total
Agency Non -Major
Radio Telephone Capital Governmental
Replacement Replacement Project Funds
$560,363 $182,039 $13,053,146
835,316
99,634
402,049
721,088
6,942
$560,363 $182,039 $15,118,175
$30,771 $690,656
1,500
244,556
30,771 936,712
728,030
5,907,223
12,801 2,262,651
$560,363 138,467 5,283,559
560,363 151,268 14,181,463
$560,363 $182,039 $15,118,175
91
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
REVENUES
Taxes and special assessments
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Community development / redevelopment
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXTRAORDINARY ITEM
Transfer (out) Successor Agency
and Housing Successor
Net Change in Fund Balances
Fund Balance, Beginning, as restated
Fund Balance, Ending
SPECIAL REVENUE FUNDS
Baypoint
Lagoons Household Street
Recreation Assessment Hazmat Maintenance
Revolving District Facility Childcare and Cleaning
$25,368
$606
489 $439
$10 $1,897
22,000
253,349
2,558,914
1,513,724
3,211,518
32,221
7,424
2,859 2,395
2,613,741
25,857 1,521,587
3,467,736 4,292
4,391
3,686,788
6,949
18,025
1,433,816
3,592,304
3,711,762 4,391 1,433,816 3,592,304
(1,098,021) 21,466 87,771 (124,568) 4,292
1,068,740 127,100
(40,000)
1,028,740 127,100
(69,281) 21,466 87,771 2,532 4,292
198,394 151,771 132,527 1,617 627,643
$129,113 $173,237 $220,298 $4,149 $631,935
92
SPECIAL REVENUE FUNDS
Loch Lomond
Assessment Library Public Development
District Library Assessment Safety Stormwater Services Grants
$15,606 $887,681
2,733 $38,288 1,427
$474 $2,839
$30,442
$1,094
123,429
66,905
991,712
6,666
3,713 785,256
48,378
29,300
5,030
52,532
10,000
18,339 197,683 889,108
76,122 788,095
131,352
1,002,806
147,503 100,000
50 983,474 10
5,167 794,800 68,459
7,561 157,099 69,694
91,939 6,885 86,782 676,714
50 104,667 794,800 154,388
1,140,573
86,792 914,867
18,289 93,016 94,308 (78,266)
(352,478)
44,560 87,939
65,000
267,990
85,213
(224,116)
65,000
267,990
(138,903)
18,289 93,016 94,308 (13,266) (84,488) 44,560 (50,964)
900,224 153,082 466,418 201,731 1,086,542 743,543 620,900
$918,513 $246,098 $560,726 $188,465 $1,002,054 $788,103 $569,936
(Continued)
93
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
REVENUES
Taxes and special assessments
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Community development / redevelopment
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXTRAORDINARY ITEM
Transfer (out) Successor Agency
and Housing Successor
Net Change in Fund Balances
Fund Balance, Beginning, as restated
Fund Balance, Ending
SPECIAL REVENUE FUNDS
Emergency
Pt. San Pedro -
Parkland
Medical
Business
Sewer
Maintenance
Dedication
Services
Improvement
Maintenance
Portion
$30,773
$3,807,545
$88,358
2,831
609
$32
65
84,114
6,500
2,780,846
$2,351,445
26,998
525
18,269
144,716
6,589,525
24,801
2,351,445
88,423
24,080
5,877,056
2,137,678
2,448
142,851
19,754
2,448
5,896,810
24,080
2,137,678
142,851
1,865
692,715
721
213,767
85,975
(117,647)
(281,980)
(216,000)
(117,647)
(281,980)
(216,000)
(115,782)
410,735
721
(2,233) 85,975
1,054,633
146,542
3,716
33,373
$938,851
$557,277
$4,437
$31,140 $85,975
Ell
SPECIAL
CAPITAL
REVENUE
PROJECT
FUNDS
DEBT SERVICE FUNDS
FUNDS
Low and
1997
Pt. San Pedro-
Redevelopment
Moderate Peacock Gap
Mariposa Financing
Debt-CIP
Agency
Income Assessment
Assessment Authority
Portion
Debt
Capital
Housing District
District Revenue Bonds
Payment
Service
Improvement
$124,257
$2,972,581
$2,139
$50 $437
91
51
$322
1,625
312,962
38,762
42,526
50 437
124,348
2,972,632
313,284
75,914
3,443
126,117
76,086
2,325,000
647,581
75,914 3,443 2,972,581 202,203
(33,388) 50 437 120,905 51 111,081
292,260
(292,260)
1,925,059 (44,882)
1,891,671 50 437 120,905 (44,831) 111,081
$2,875 16,469 145,186 44,831 109,275
$1,891,671 $2,875 $16,519 $145,623 $120,905 $220,356
(Continued)
95
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
REVENUES
Taxes and special assessments
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Community development / redevelopment
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXTRAORDINARY ITEM
Transfer (out) Successor Agency
and Housing Successor
Net Change in Fund Balances
Fund Balance, Beginning, as restated
Fund Balance, Ending
CAPITAL PROJECT FUNDS
Park
Bedroom Assessment
Capital
Open Equipment
Tax Districts
Projects
Space Replacement
$4,973
89 $577
$48
$406 $10,663
1,619,950
159,397
7,423
39,693
5,062 159,974
7,471
406 1,670,306
170,182
38,325 3,822 1,048,571
170,182 38,325
5,062 (10,208) (30,854) (3,416)
13,000
(13,000)
(13,000) 13,000
(7,938)
(10,208)
(17,854)
(3,416)
621,735
26,564
$253,831
29,473
137,975
2,991,414
$18,626
$243,623
$11,619
$134,559
$3,613,149
M
CAPITAL PROJECT FUNDS
Redevelopment Total
Agency Non -Major
Radio Telephone Capital Governmental
Replacement Replacement Projects Funds
$7,957,142
$1,107
$530
$25,727
126,190
1,548,331
648,660
481,000
20,845
16,345,502
69,289
502,117
649,767
481,530
115,861
26,479,282
24,236
124,230
7,558,375
69,195
3,200,689
842,320
842,320
8,147,518
700,207
614,913
386,473
45,574
3,094,109
69,098
2,394,098
2,225
649,806
614,913
457,796
981,325
26,711,352
34,854
23,734
(865,464)
(232,070)
292,260 2,211,563
(1,026,967) (2,211,970)
(734,707) (407)
(4,232,761) (2,352,584)
34,854 23,734 (5,832,932) (2,585,061)
525,509 127,534 5,832,932 16,766,524
$560,363 $151,268 $14,181,463
w
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2012
REVENUES
Taxes and special assessments
Licenses and permits
Fines and forfeitures
Use of money and properties
Intergovernmental
Charges for services
Otherrevenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXTRAORDINARY ITEM
Transfers to Successor Agency /
Housing Successor
FUND BALANCES, BEGINNING OF YEAR
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
FUND BALANCES, BEGINNING OF YEAR,
as restated
FUND BALANCES, END OF YEAR
SPECIAL REVENUE FUNDS
Recreation Revolving Baypoint Lagoons Assessment District
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$25,000 $25,368
$420
$606
$186 330 489
20,000
22,000
2,000
2,494,520
2,558,914
64,394
8,480
32,221
23,741
2,523,420
2,613,741
90,321 25,330 25,857
3,476,325 3,686,788 (210,463)
6,949 (6,949)
18,025 (18,025)
3,476,325 3,711,762 (235,437)
4,391
$368
159
527
(4,391)
4,391 (4,391)
(952,905) (1,098,021) (145,116) 25,330 21,466 (3,864)
1,068,740 1,068,740
(40,000) (40,000)
1,068,740 1,028,740 (40,000)
$115,835 (69,281) ($185,116) $25,330
198,394
$129,113
21,466 ($3,864)
151,771
$173,237
98
SPECIAL REVENUE FUNDS
Household Hazmat Facility
Variance
Final Positive Final
Budget Actual (Negative) Budget
Childcare
Actual
Street Maintenance and Cleaning
Variance Variance
Positive Final Positive
(Negative) Budget Actual (Negative)
$150
$439
$289
$10
$10 $1,370 $1,897 $527
5,330
(5,330)
$243,185 253,349
10,164
1,473,280
1,513,724
40,444
3,273,410 3,211,518
(61,892)
7,424
7,424
2,859
2,859 2,395 2,395
1,478,760
1,521,587
42,827
3,516,595 3,467,736
(48,859) 1,370 4,292 2,922
1,382,529 1,433,816 (51,287)
3,563,692 3,592,304 (28,612)
11,890 11,890
1,382,529 1,433,816 (51,287) 3,575,582 3,592,304 (16,722)
96,231 87,771 (8,460) (58,987) (124,568) (65,581) 1,370 4,292 2,922
127,100 127,100
(40,000) 40,000
87,100 127,100 40,000
$96,231 87,771 ($8,460) $28,113 2,532 ($25,581) $1,370
132,527 1,617
$220,298 $4,149
4,292 $2,922
627,643
$631,935
(Continued)
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2012
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
$15,610
$15,606
($4)
Licenses and permits
Fines and forfeitures
Use of money and properties
1,900
2,733
833
$40,390
$38,288
($2,102)
Intergovernmental
291,530
123,429
(168,101)
Charges for services
4,000
6,666
2,666
Other revenue
49,000
29,300
(19,700)
Total Revenues
17,510
18,339
829
384,920
197,683
(187,237)
EXPENDITURES
Current:
General government
Public safety
Public works and parks
50
50
Culture and recreation
148,858
5,167
143,691
Capital outlay
7,561
(7,561)
Capital improvement/special projects
139,981
91,939
48,042
Debt service
Principal
Interest and fiscal charges
Total Expenditures
50
50
288,839
104,667
184,172
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
17,460
18,289
829
96,081
93,016
(3,065)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXTRAORDINARY ITEM
Transfers to Successor Agency /
Housing Successor
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
$17,460
18,289
$829
$96,081
93,016
($3,065)
FUND BALANCES, BEGINNING OF YEAR,
900,224
153,082
as restated
FUND BALANCES, END OF YEAR
$918,513
$246,098
100
SPECIAL REVENUE FUNDS
Library Assessment
Public Safety
Stormwater
Variance
Variance
Variance
Final
Positive
Final Positive
Final
Positive
Budget
Actual
(Negative)
Budget Actual (Negative)
Budget
Actual (Negative)
$875,500
$887,681
$12,181
$5,000
($5,000)
2,260
(2,260)
$900
1,427
527
$340 $474 $134
2,200
$2,839 639
65,100 66,905 1,805
10,000 3,713 (6,287) 793,000 785,256 (7,744)
5,030 5,030
876 400 889 108 12 708 75 440 76 122 682 802 460 788 MI; (14 365)
783,901 794,800
154,821 147,503
(10,899)
10,000 6,885
7,318
3,115
1,078,895 983,474 95,421
100,000 157,099 (57,099)
l OJ,7V1 /7T,OVV 11V,077J 1VT,OG1 1JT,JUV 1V,TJ✓ 1,1/V,UJ✓ 1, 1TV,✓/✓ JV,JLL
92,499 94,308 1,809 (89,381) (78,266) 11,115 (376,435) (352,478) 23,957
4c nnn J<c nnn ')A7 oon ')A7 oon
$92,499 94,308 $1,809 ($24,381) (13,266) $11,115 ($108,445) (84,488) $23,957
466,418 201,731 1,086,542
$560,726 $188,465 $1,002,054
(Continued)
101
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2012
REVENUES
Taxes and special assessments
Licenses and permits
Fines and forfeitures
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXTRAORDINARY ITEM
Transfers to Successor Agency /
Housing Successor
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
FUND BALANCES, BEGINNING OF YEAR,
as restated
FUND BALANCES, END OF YEAR
SPECIAL REVENUE FUNDS
Development Services
Variance
Final Positive Final
Budget Actual (Negative) Budget
Grants
Variance
Positive
Actual (Negative)
$26,100 $30,442 $4,342 $730 $1,094 $364
1,304,831 991,712 (313,119)
48,378 48,378
52,532 52,532 67,000 10,000 (57,000)
26,100 131,352 105,252 1,372,561 1,002,806 (369,755)
5 5
100,000 100,000
10 (10)
377,220 68,459 308,761
133,126 69,694 63,432
86,782 (86,782) 894,466 676,714 217,752
86,792 (86,792) 1,504,817 914,867 589,950
26,100 44,560 $18,460 (132,256) 87,939 220,195
77,634 85,213 7,579
(50,000) (224,116) (174,116)
27,634 (138,903) (166,537)
$26,100 44,560 $18,460 ($104,622) (50,964) $53,658
743,543 620,900
$788,103
$569,936
102
SPECIAL REVENUE FUNDS
Parkland Dedication Emergency Medical Services Business Improvement
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$30,773 $30,773 $3,869,500 $3,807,545 ($61,955)
$2,040 2,831 791 609 609 $10 $32 $22
84,114 84,114 20,500 (20,500) 16,510 6,500 (10,010)
2,100,000 2,780,846 680,846
26,998 26,998 525 525 22,520 18,269 (4,251)
2,040 144,716 142,676 5,990,000 6,589,525 599,525 39,040 24,801 (14,239)
39,580 24,080 15,500
5,600,299 5,877,056 (276,757)
$255,000 142,851 112,149 6,000 19,754 (13,754)
255,000 142,851
112,149
5,606,299
5,896,810 (290,511) 39,580 24,080 15,500
(252,960) 1,865
254,825
383,701
692,715 309,014 (540) 721 1,261
(117,647)
(117,647)
(281,980)
(281,980)
(117,647)
(117,647)
(281,980)
(281,980)
($252,960) (115,782) $137,178 $101,721 410,735 $309,014 ($540) 721 $1,261
1,054,633 146,542 3,716
$938,851 $557,277 $4,437
(Continued)
103
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2012
REVENUES
Taxes and special assessments
Licenses and permits
Fines and forfeitures
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXTRAORDINARY ITEM
Transfers to Successor Agency /
Housing Successor
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
FUND BALANCES, BEGINNING OF YEAR,
as restated
FUND BALANCES, END OF YEAR
SPECIAL REVENUE FUNDS
Sewer Maintenance
Pt. San Pedro -Maintenance Portion
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$2,376,360 $2,351,445 ($24,915)
2,376,360 2,351,445 (24,915)
2,166,291 2,137,678 28,613
$88,358 88,358
65 $65
88,423 88,423
2,448 (2,448)
2,166,291
2,137,678
28,613
2,448
(2,448)
210,069
213,767
3,698
85,975
85,975
(216,000) (216,000)
(216,000) (216,000)
($5,931) (2,233) $3,698
33,373
$31,140
85,975 $85,975
$85,975
104
SPECIAL REVENUE FUNDS
DEBT SERVICE FUND
Low and Moderate Income Housing Mariposa Assessment District 1997 Financing Authority Revenue Bonds
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$228,000 ($228,000)
$2,139 $2,139 $40 $50 $10 310 $437 127
1,625 1,625
38,762
42,526 3,764 40 50
75,914 (75,914)
123,000
123,000
24,460
24,460
75,914 (75,914)
147,460
147,460
(33,388) (33,388)
40 50
10 80,850
437
($80,413)
1,925,059
(33,388) ($33,388)
$40 50
$10 $80,850
437
($80,413)
16,469
145,186
$1,891,671
$16,519
$145,623
(Continued)
105
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2012
REVENUES
Taxes and special assessments
Licenses and permits
Fines and forfeitures
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXTRAORDINARY ITEM
Transfers to Successor Agency /
Housing Successor
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
FUND BALANCES, BEGINNING OF YEAR,
as restated
FUND BALANCES, END OF YEAR
DEBT SERVICE FUND
Pt. San Pedro-Debt-CIP Payment Redevelopment Agency Debt Service
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$124,257 $124,257 $3,569,320 $2,972,581 ($596,739)
91 91 130 51 (79)
124,348 124,348 3,569,450 2,972,632 (596,818)
3,443 (3,443)
2,325,000 2,325,000
1,244,320 647,581 596,739
3,443 (3,443) 3,569,320 2,972,581 596,739
120,905 $120,905 130 51 ($79)
292,260 292,260
(292,260) (292,260)
120,905 $120,905 $130
$120,905
(44,882)
51 ($79)
44,831
106
INTERNAL SERVICE FUNDS
Internal service funds account for department services and financing performed for other departments
within the same governmental jurisdiction. Funding comes from charges assessed to the departments
benefiting from the service.
Building Maintenance Fund - Established to account for construction projects and cyclical large
dollar maintenance tasks (roof, painting) completed on City owned buildings.
Employee Benefits Fund - This fund is utilized for the payment of retiree benefits, unemployment
insurance, accumulated leave requirements and other negotiated benefits not tied to a specific
department.
Liability Insurance Fund - Established to maintain sufficient reserves for outstanding claims. All
costs associated with liability premiums are paid from this fund.
Workers' Compensation Fund - Established to maintain sufficient reserves for injury claims. All
costs associated with workers compensation, including safety training, wellness programs, claim
expenses and insurance premiums are paid from this fund.
Dental Insurance Fund - Set up to maintain sufficient reserves for dental claims. All costs
associated with dental claims and administrations are paid from this fund.
Employee Retirement Fund — Set up to account for the principal payments, interest payments, and
related cost of the 2010 Taxable Pension Obligation Bonds.
OPEB/Retiree Medical Fund — Established to account for activities related to the funding,
administration and procurement of retiree medical benefits. In past years, this activity was included in
the Employee Benefits Internal Service Fund.
107
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF NET ASSETS
JUKE 30, 2012
ASSETS
Current Assets:
Cash and investments
Restricted cash and investments
Accounts receivable
Total Assets
LIABILITIES
Current Liabilities:
Accounts payable
Claims payable - due in one year
Non -current Liabilities:
Claims payable - due in more than one year
OPEB liability
Total Liabilities
NET ASSETS:
Restricted
Unrestricted
Total Net Assets
Building
Employee
Liability
Workers'
Maintenance
Benefits
Insurance
Compensation
$745,549
$322,088
$2,588,343
$4,727,633
72,938
745,549
395,026
2,588,343
4,727,633
5,913
15,026
7,179
9,435
472,257
1,370,563
2,108,907
3,347,635
5,913
15,026
2,588,343
4,727,633
739,636 380,000
$739,636 $380,000
108
OPEB/
Dental Employee Retiree
Insurance Retirement Medical Total
$211,170 $3,002,190 $361,520 $11,958,493
11,178,164 11,178,164
72,938
211,170 3,002,190 11,539,684 23,209,595
3,674 41,227
1,842,820
5,456,542
7,594,000 7,594,000
3,674 7,594,000 14,934,589
3,584,164 3,584,164
207,496 3,002,190 361,520 4,690,842
$207,496 $3,002,190 $3,945,684 $8,275,006
109
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED DUNE 30, 2012
OPERATING REVENUES
Charges for current services
Other operating revenues
Total Operating Revenues
OPERATING EXPENSES
Insurance premiums and claims
Maintenance and repairs
General and administrative
OPEB expense
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Investment income
Interest expense
Total Nonoperating
Revenues (Expenses)
Net income (loss) before transfers
Transfers in
Transfers out
Change in Net Assets
NET ASSETS, BEGINNING OF YEAR (RESTATED)
NET ASSETS, END OF YEAR
Building
Employee
Liability
Workers'
Maintenance
Benefits
Insurance
Compensation
$376,190
$2,938,512
$1,506,154
$1,417,815
8,700
946,998
133,846
384,890
3,885,510
1,640,000
1,417,815
3,102,630
780,249
823,501
218,651
210
16,888
652,702
235,539
3,755,332
780,249
823,711
149,351
130,178
859,751
594,104
1,274
5,961
4,029
1,274
5,961
4,029
150,625
130,178
865,712
598,133
243,187
230,000
(280,000)
393,812
360,178
585,712
598,133
345,824 19,822 (585,712) (598,133)
$739,636 $380,000
110
OPEB/
Dental Employee Retiree
Insurance Retirement Medical Total
$473,320 $228,718 $361,519 $7,302,228
9,040 1,098,584
482,360 228,718 361,519 8,400,812
388,416 229,170 5,323,966
218,861
669,590
388,416
229,170
6,212,417
93,944
(452)
361,519
2,188,395
613
96,024
107,901
(280,004)
(280,004)
613
(183,980)
(172,103)
94,557
(184,432)
361,519
2,016,292
276,520
749,707
(87,100)
(367,100)
94,557
4,988
361,519
2,398,899
112,939
2,997,202
3,584,165
5,876,107
$207,496
$3,002,190
$3,945,684
$8,275,006
111
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED DUNE 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds
Cash payments to suppliers for goods and services
Other operating revenues
Cash Flows from Operating Activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Proceeds from issuance of long term debt
Interfund receipts (payments)
Interest expense
Cash Flows from Noncapital
Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Investment received
Cash Flows from Investing Activities
Net increase (decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
as restated
CASH AND CASH EQUIVALENTS, END OF YEAR
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)
Net change in assets and liabilities:
Accounts receivable
Prepaids and deposits
Accounts payable
Claims payable
Net Cash Provided by (Used in) Operating Activities
Building
Employee
Liability
Workers'
Maintenance
Benefits
Insurance
Compensation
$376,190
$3,931,168
$1,506,154
$1,417,815
(237,821)
(3,982,920)
(346,098)
2,709,102
8,700
946,998
133,846
147,069
895,246
1,293,902
4,126,917
243,187 (573,158) 523,158
243,187
(573,158) 523,158
1,274
5,961
4,029
1,274
5,961
4,029
391,530
322,088 1,823,021
4,130,946
354,019
765,322
596,687
$745,549
$322,088 $2,588,343
$4,727,633
$149,351 $130,178 $859,751 $594,104
992,656
(2,282) (227,588) (565) (2,647)
434,716 3,535,460
$147,069 $895,246 $1,293,902 $4,126,917
112
OPEB/
Dental
Employee
Employee
Insurance
Retirement
Retirement
Total
$473,320
$228,718
$361,520
$8,294,885
(384,813)
(229,170)
(2,471,720)
9,040
1,098,584
97,547
(452)
361,520
6,921,749
189,420 382,607
(280,004) (280,004)
(90,584) 102,603
613 96,024 107,901
613 96,024 107,901
98,160 4,988 361,520 7,132,253
113,010 2,997,202 4,826,240
$211,170 $3,002,190 $361,520 $11,958,493
$93,944 ($452) $361,520 $2,188,396
992,656
3,603 (229,479)
3,970,176
$97,547 ($452) $361,520 $6,921,749
113
This Page Left Intentionally Blank
STATISTICAL SECTION
This Page Left Intentionally Blank
STATISTICAL SECTIgN
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 Direct and 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 Function/Program
3. Capital Asset Statistics by Function/Program
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 government
wide information include information beginning in that year.
117
CITY OF SAN RAFAEL
NET ASSETS BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
$290,000
$2409000
$1909000
$140,000
h
$90,000
$40,000
($10,000)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
®Net of Related Debt ®Restricted ®Unrestricted
Governmental activities
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets,
net of related debt
Unrestricted
Total business -type activities net assets
Primary government
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total primary government net assets
As of June 30
2003 2004 2005
2006
$198,031,181
$202,215,793
$194,658,126
$175,806,100
2,933,294
2,708,397
2,378,641
620,889
16,216,230
9,775,565
14,167,627
32,739,318
$217,180,705
$214,699,755
$211,204,394
$209,166,307
$8,464,417 $8,749,750 $8,615,483 $9,819,435
1,078,245 1,447,467 1,900,504 2,113,659
$9,542,662 $10,197,217 $10,515,987 $11,933,094
$206,495,598
$210,965,543
$203,273,609
$185,625,535
2,933,294
2,708,397
2,378,641
620,889
17,294,475
11,223,032
16,068,131
34,852,977
$226,723,367
$224,896,972
$221,720,381
$221,099,401
118
As of June 30
2007 2008 2009 2010 2011 2012
$171,849,149
$176,724,820
$178,744,119
$173,536,144
$174,281,922
$192,361,245
31,124,935
26,848,900
25,721,231
26,150,254
21,322,937
24,693,205
4,499,136
4,273,937
(700,985)
(4,631,276)
(8,170,324)
10,652,263
$207,473,220
$207,847,657
$203,764,365
$195,055,122
$187,434,535
$227,706,713
$9,717,501 $10,130,329 $11,243,637 $10,950,825 $10,793,592 $10,650,558
2,226,838 2,471,117 1,936,958 2,017,354 1,948,447 2,495,889
$11,944,339 $12,601,446 $13,180,595 $12,968,179 $12,742,039 $13,146,447
$181,566,650
$186,855,149
$189,987,756
$184,486,969
$185,075,514
$203,011,803
31,124,935
26,848,900
25,721,231
26,150,254
21,322,937
24,693,205
6,725,974
6,745,054
1,235,973
(2,613,922)
(6,221,877)
13,148,152
$219,417,559
$220,449,103
$216,944,960
$208,023,301
$200,176,574
$240,853,160
119
CITY OF SAN RAFAEL
CHANGES IN NET ASSETS
Last Ten 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 and fiscal charges
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
120
2007 2008 2009 2010 2011 2012
$8,908,433 $8,621,079 $8,075,344 $8,396,759 $8,269,846 $10,171,332
37,271,272 40,845,347 42,708,538 42,752,033 44,735,486 39,876,910
20,998,749 22,105,367 23,036,676 17,401,923 17,408,038 17,423,033
4,384,408 5,811,866 5,759,171 6,738,873 7,804,650 4,587,557
9,729,485 10,300,230 11,505,896 11,139,225 11,487,999 11,020,663
2,183,683 1,989,620 1,907,229 2,200,024 1,621,605 1,224,991
83,476,030 89,673,509 92,992,854 88,628,837 91,327,624 84,304,486
3,110,254 3,282,235 3,563,235 4,016,198 3,785,751 3,446,482
3,110,254 3,282,235 3,563,235 4,016,198 3,785,751 3,446,482
$86,586,284 $92,955,744 $96,556,089 $92,645,035 $95,113,375 $87,750,968
$6,656,432 $8,090,636 $9,143,977 $9,087,354 $9,677,630 $10,185,779
$1,512,814 $1,494,784 $1,738,685 $1,665,460 $1,636,542 $1,986,791
5,279,785 5,562,072 5,906,445 6,308,912 6,167,925 7,122,396
4,030,060 4,983,288 4,753,817 3,916,874 4,141,103 5,214,267
2,815,009 3,247,024 2,915,872 2,830,179 2,676,663 3,255,367
4,521,004 4,870,884 5,253,683 5,280,458 5,362,497 5,873,147
3,701,901 3,463,616 3,544,248 3,721,055 3,651,902 3,158,281
2,786,761 3,239,509 7,311,173 2,116,906 1,857,670 2,705,696
24,647,334 26,861,177 31,423,923 25,839,844 25,494,302 29,315,945
31242,046 4,161,936 4,454,490 4,244,404 4,011,333 3,901,175
3,242,046 4,161,936 4,454,490 4,244,404 4,011,333 3,901,175
$27,889,380 $31,023,113 $35,878,413 $30,084,248 $29,505,635 $33,217,120
$7,857,916 $9,366,305 $10,567,647 $11,559,549 $12,223,779 $12,368,889
($58,828,696) ($62,812,332) ($61,568,931) ($62,788,993) ($65,833,322) ($54,988,541)
131,792 879,701 891,255 228,206 225,582 454,693
($58,696,904) ($61,932,631) ($60,677,676) ($62,560,787) ($65,607,740) ($54,533,848)
$1,201,484 $1,275,669 $1,423,670 $2,472,195 $2,546,149 $2,183,110
121
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:
Investment earnings
Aid from other government agencies
Transfers
Total Business -Type Activities
Total Primary Government
Component Unit:
San Rafael Sanitation District
Property Taxes
Investment earnings
Miscellaneous
Aid from other governmental agencies
Total Component Unit
Change in Net Assets
Governmental Activities
Business -Type Activities
Total Primary Government
Change in Net Assets
Component Unit Activities
CITY OF SAN RAFAEL
CHANGES IN NET ASSETS
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2003 2004 2005 2006
$13,983,697
$14,895,188
$17,385,722
$20,848,887
16,779,878
17,166,966
17,132,100
18,188,524
3,055,575
3,329,680
3,642,184
3,017,488
3,317,710
2,495,598
4,657,817
372,726
5,465,495
5,476,044
5,151,205
6,963,448
1,897,339
809,242
1,112,548
1,248,409
(500,819)
1,843,458
498,200
876,907
361,195
232,398
142,970
15,720
201,191
46,074,731
44,813,888
49,974,203
51,201,868
17,772
29,534
28,522
44,536
40,735
1,309,893
(232,398)
(142,970)
(15,720)
(201,191)
(214,626)
(113,436)
53,537
1,153,238
$45,860,105
$44,700,452
$50,027,740
$52,355,106
$560,269
$591,078
$125,959
$179,479
104,358
75,739
117,348
237,206
154,919
141,314
609,419
645,804
$805,941
$821,736
$852,726
$1,062,489
($13,895,954)
($2,480,950)
($1,566,415)
($2,673,917)
350,537
654,555
205,662
1,417,107
($13,545,417)
($1,826,395)
($1,360,753)
($1,256,810)
$664,343
$1,335,436
$1,625,137
$1,254,347
122
2007
$20,360,475
24,484,356
2,998,925
331,620
8,830,955
1,669,181
2008
2009
2010
2011
2012
22,195,606
$21,978,859
$21,684,131
$21,632,733
$20,107,637
25,764,457
21,970,262
19,055,124
21,623,445
22,355,749
3,503,555
3,210,317
3,489,494
3,661,064
3,807,545
257,320
197,989
171,518
297,425
1,678,912
1,558,243
1,644,262
1,866,575
2,941,149
2,868,332
2,990,539
3,076,094
2,405,934
2,317,664
2,296,460
2,332,146
9,242,241
1,561,835
1,411,583
1,930,531
3,574,918
1,583,056
717,968
302,180
176,502
205,413
221,791
491,488
296,454
461,224
541,390
1,496,174
542,816
(1,133,458)
212,170
344,080
361,190
458,300
463,600
57,960
58,245,712
63,186,769
57,485,639
54,079,750
58,212,735
57,926,853
91,623
121,486
49,084
17,678
11,878
7,675
(212,170)
(344,080)
(361,190)
(458,300)
(463,600)
(57,960)
(120,547)
(222,594)
(312,106)
(440,622)
(451,722)
(50,285)
$58,125,165
$62,964,175
$57,173,533
$53,639,128
$57,761,013
$57,876,568
$755,763
$803,071
$855,511
$823,187
$1,214,519
$1,192,566
367,887
341,032
206,752
93,274
59,265
38,191
3,546
3,540
340,642
577,860
381,144
415,391
6,499
9,613
$1,464,292
$1,725,509
$1,446,947
$1,331,852
$1,280,283
$1,240,370
($582,984)
$374,437
($4,083,292)
($8,709,243)
($7,620,587)
$2,938,312
11,245
657,107
579,149
(212,416)
(226,140)
404,408
($571,739)
$1,031,544
($3,504,143)
($8,921,659)
($7,846,727)
$3,342,720
$2,665,776
$3,001,178
$2,870,617
$3,804,047
$3,826,432
$3,423,480
123
Thousands
$55,000
$45,000
$35,000
$25,000
$15,000
$5,000
($5,000)
2003
CITY SAN RAFAEL
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Total Fund Balance
2004 2005 2006 2007 2008 2009 2010 2011 2012
® Total Fund Balance
2003 2004 2005 2006 2007
General Fund
Pre-GASB 54 Presentation:
Reserved
$2,357,904
$1,451,036
$2,442,881
$2,335,391
$905,068
Unreserved
4,139,618
4,246,152
5,779,680
3,362,151
5,016,929
GASB 54 Presentation:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General Fund
$6,497,522
$5,697,188
$8,222,561
$5,697,542
$5,921,997
All Other Governmental Funds
Pre-GASB 54 Presentation:
Reserved
$36,695,318
$32,471,197
$26,599,557
$21,603,724
$20,773,760
Unreserved, reported in:
Special Revenue Funds
6,317,972
5,574,048
5,628,187
7,168,753
81107,477
Capital Project Funds
Debt Service Funds
4,734,986
Expendable Trust Fund
GASB 54 Presentation:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
$43,013,290
$38,045,245
$32,227,744
$28,772,477
$33,616,223
(a) The change in total fund balance for the General Fund and other governmental funds
is explained in Management's Discussion and Analysis.
124
As of June 30
2008 2009 2010 2011
2012
$2,196,153 $2,225,775 $1,763,622
4,022,612 1,670,455 5,038,173
$589,833
$527,509
200,238
76,188
555,561
651,121
5,439,879
1,516,644
$6,218,765
$3,896,230
$6,801,795 $6,785,511 (a) $2,771,462
$17,599,142
$16,680,568
$15,352,723
7,413,808
8,641,239
8,778,027
35,430
(1,030,293)
4,527,627
3,315,764
3,360,540
$377,180
19,289,367
3,864,322
4,124,029
$788,031
16,856,959
5,135,257
5,283,559
$28,364,144 $27,652,054 $28,658,377 $27,654,898 (a) $28,063,806
125
CITY OF SAN RAFAEL
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2003
2004
2005
2006
2007
Revenues
Taxes and special assessments
$39,284,643
$40,875,826
$42,901,520
$44,901,544
$52,472,246
Licenses and permits
735,109
928,303
929,993
1,175,030
1,157,981
Fines and forfeitures
770,632
791,975
1,088,459
622,494
515,528
Use of money and properties
1,897,339
1,024,199
1,244,406
1,316,558
1,744,688
Intergovernmental
9,405,422
8,049,002
10,522,095
11,705,917
12,760,496
Charges for services
10,102,392
10,423,754
11,407,622
13,104,572
13,504,621
Other revenue
3,568,297
735,976
1,135,485
1,475,078
1,468,743
Total Revenues 65,763,834 62,829,035 69,229,580 74,301,193 83,624,303
Expenditures
Current:
General government
4,740,703
5,014,452
5,539,191
6,200,338
8,188,999
Public safety
28,041,079
28,863,197
31,784,872
33,321,967
36,264,321
Public works and parks
9,491,552
9,257,991
9,294,419
10,622,585
11,972,537
Community development / redevelopment
3,253,947
3,875,542
3,763,614
4,184,084
4,319,042
Culture and recreation
7,176,097
7,145,264
7,538,607
8,409,833
9,005,370
Capital outlay
125,884
31,703
1,027,267
60,411
6,716,630
Capital improvement / special projects
11,058,796
9,825,103
9,253,661
13,200,872
1,189,613
Debt service:
Capitalized lease obligation
197,132
10,775
141,197
130,315
Principal
24,290,000
2,360,000
2,585,000
2,525,000
2,287,255
Interest and fiscal charges
4,046,170
2,456,357
2,140,673
1,878,265
1,829,091
Total Expenditures
92,421,360
68,840,384
73,068,501
80,533,670
81,772,858
Excess (deficiency) of revenues over
(under) expenditures
(26,657,526)
(6,011,349)
(3,838,921)
(6,232,477)
1,851,445
Other Financing Sources (Uses)
Issuance of debt
32,625,000
Payment to refunded bonds
Bond premiums
Capital lease for equipment acquisition
318,000
Contribution from Sanitation District
744,556
Proceeds from sale of capital asset
Transfers in
42,503,976
5,222,868
8,636,544
6,925,107
6,812,260
Transfers (out)
(42,971,248)
(4,979,898)
(7,740,324)
(6,672,916)
(6,958,046)
Total other financing sources (uses)
32,902,284
242,970
896,220
252,191
172,214
Extraordinary Item
Transfer to Successor Agency
Net Change in fund balances $6,244,758 ($5,768,379) ($2,942,701) ($5,980,286) $2,023,659
Debt service as a percentage of
noncapital expenditures 35.1% 8.2% 7.8% 6.7% 5.6%
126
Fiscal Year Ended June 30,
2008 2009 2010 2011 2012
$56,129,195
$51,019,143
$47,678,541
$51,448,130
$51,395,116
1,489,748
1,472,913
1,518, 819
1,416,772
1,648,890
797,081
660,338
787,411
862,820
801,758
1,584,508
847,120
433,874
380,720
315,561
12,081,968
17,518,670
13,001,703
11,864,127
10,537,396
15,607,460
16,384,265
15,787,325
15,888,750
19,649,433
815,704
759,320
716,760
1,026,845
870,957
88,505,664
88,661,769
79,924,433
82,888,164
85,219,111
8,288,170
8,059,526
7,997,067
6,863,142
8,783,873
40,299,862
41,209,972
39,574,091
40,967,352
39,311,551
13,641,665
12,926,646
10,731,669
10,666,176
11,518,822
5,786,661
5,572,079
4,398,594
4,527,351
3,755,504
9,820,365
10,233,361
9,605,684
10,067,822
10,345,673
6,243,517
5,048,044
1,890,559
1,745,483
1,312,383
5,124,091
6,606,857
3,436,608
6,240,861
3,604,171
2,504,370
2,714,358
2,804,258
2,530,338
2,518,320
1,776,354
1,683,240
1,979,372
1,448,910
735,221
93,485,055
94,054,083
82,417,902
85,057,435
81,885,518
(4,979,391)
(5,392,314)
(2,493,469)
(2,169,271)
3,333,593
14,660,000
(14,315,000)
1,038,185
221,791
6,353,216 8,972,495 7,494,560 5,806,834 4,539,646
(6,329,136) (6,614,806) (6,411,150) (4,657,326) (4,864,293)
24,080 2,357,689 2,688,386 1,149,508 (324,647)
(2,352,584)
($4,955,311) ($3,034,625) $194,917 ($1,019,763) $656,362
5.2% 5.3% 6.2% 5.2% 4.2%
127
$12,000
$10,000
$8,000
C
O
$6,000
$4,000
$2,000
$0
CITY OF SAN RAFAEL
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Unsecured Property Secured Property
Real Property
Total Real
Total
Fiscal
Residential
Commercial
Industrial
Secured
Unsecured
Total
Estimated
Direct
Year
Property
Property
Property
Other
Property
Property
Assessed (a)
Full Market (a)
Tax Rate (b)
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
0.20678%
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
0.20661%
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
0.19903%
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
0.19349%
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
0.18087%
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
0.17718%
2009
7,357,121,277
1,941,927,620
234,669,841
129,177,656
9,662,896,394
374,976,613
10,037,873,007
10,037,873,007
0.17951%
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%
2011
7,215,965,203
2,056,985,417
247,409,955
124,426,487
9,644,787,062
383,414,952
10,028,202,014
10,028,202,014
0.17851%
2012
7,317,280,602
2,036,262,351
247,485,238
118,579,648
9,719,607,839
384,950,872
10,104,558,711
10,104,558,711
0.17827%
Source: HdL Coren & Cone, Marin County Assessor 2001/02-2010/11 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.
128
CITY OF SAN RAFAEL
PROPERTY TAX RATES
ALL DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Fiscal
School
Misc. Special
Year
City
County (1)
Districts
Districts
Total
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
2011
0.154
0.295
0.7542
0.0461
1.2489
2012
0.154
0.295
0.7831
0.0461
1.2782
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 2002/03 - 2011/12 Tax Rate Tables
129
CITY OF SAN RAFAEL
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND TEN YEARS AGO
Taxpayer
Northgate Mall Associates
SR Corporation Center Phase 1
SR Corporation Center Phase Two
Sutter Health
Robert Dickson Trust
County of Marin
Regency Center II Associates LP
Northbay Properties 11
Marin Sanitary Service
Bay Apartment Communities
AMG Realty Partners LP
Lucas Digital Ltd. LLC
Autodesk Inc
4040 Civic Center LLC
Tele-Vue Systems Inc
Subtotal
Total Net Assessed Valuation:
Fiscal Year 2011-2012
Fiscal Year 2002-2003
2011-12
2002-2003
Percentage
Percentage
of Total City
of Total City
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
Value
Value
Value
Value
$128,055,911
1.27%
$80,357,695
1.16%
79,314,980
0.78%
45,538,519
0.65%
71,241,415
0.71%
0.00%
48,659,081
0.48%
0.00%
44,303,303
0.44%
0.00%
42,050,425
0.42%
0.00%
41,904,940
0.41%
36,325,034
0.52%
41,269,164
0.41%
30,142,083
0.43%
38,636,950
0.38%
0.00%
35,800,438
30,619,158
0.44%
68,508,225
0.98%
41,900,697
0.60%
37,334,639
0.54%
34,090,441
0.49%
30,959,326
0.45%
$571,236,607
5.65%
$435,775,817
6.26%
$10,104,558,711
$6,955,981,369
Source: HdL Coren & Cone, Marin County Assessor 2002-2003 & 2011-2012 Net Taxable Value History
130
0 $25
0
$22
$19
$16
$12
$9
$6
CITY OF SAN RAFAEL
PROPERTY TAX LEVIES AND COLLECTIONS (1>
LAST TEN FISCAL YEARS
--* Allocations
- 4-- Apportionments
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Delinquent taxes
Fiscal
as a Percent of
Year
Rate
Levies
Allocations Collections
Apportionments
Delinquencies
Allocations
2003
1.00
(2)
$13,983,697
(2)
$13,983,697
(2)
0.0%
2004
1.00
(2)
14,895,188
(2)
14,895,188
(2)
0.0%
2005
1.00
(2)
17,385,722
(2)
17,385,722
(2)
0.0%
2006
1.00
(2)
20,848,887
(2)
20,848,887
(2)
0.0%
2007
1.00
(2)
20,360,475
(2)
20,360,475
(2)
0.0%
2008
1.00
(2)
22,195,606
(2)
22,195,606
(2)
0.0%
2009
1.00
(2)
21,978,859
(2)
21,978,859
(2)
0.0%
2010
1.00
(2)
21,702,536
(2)
21,702,536
(2)
0.0%
2011
1.00
(2)
21,632,731
(2)
21,632,731
(2)
0.0%
2012
1.00
(2)
20,704,368
(2)
20,704,368
(2)
0.0%
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
131
CITY OF SAN RAFAEL
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
$60
c
0
$50
$40
$30
$20
$10
$0
0 Total Governmental ® Total Business
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Governmental Activities
RDA Tax
Financing
Court Fine
Capitalized
Pension
Fiscal
Allocation
Authority
Note
Promissory
Lease
Obligation
Year
Bonds
Revenue Bonds
Payable
Note
Obligations
Bonds
2003
$44,914,000
$2,820,000
$169,000
2004
43,239,004
2,340,000
169,000
2005
41,514,004
1,685,000
169,000
2006
40,849,107
1,155,000
169,000
$412,441
2007
39,217,501
950,000
169,000
$1,029,717
596,927
2008
37,537,161
780,000
169,000
816,119
401,155
2009
35,793,692
455,000
169,000
594,100
198,816
2010
35,355,988
169,000
363,328
135,330
2011
33,298,499
169,000
124,222
69,098
$4,490,000
2012
169,000
4,490,000
Business -Type
Activities
Parking
Total
Percentage
Fiscal
Services
Primary
of Personal
Year
Bonds
Total Government
Income (a)
2003
$7,605,000
$7,605,000
$55,508,000
2.54%
2004
7,605,000
7,605,000
53,353,004
2.34%
2005
7,605,000
7,605,000
50,973,004
2.14%
2006
7,455,000
7,455,000
50,040,548
1.97%
2007
7,300,000
7,300,000
49,263,145
1.85%
2008
7,140,000
7,140,000
46,843,435
1.73%
2009
6,975,000
6,975,000
44,185,608
1.67%
2010
6,805,000
6,805,000
42,828,646
1.85%
2011
6,630,000
6,630,000
44,780,819
1.87%
2012
6,445,000
6,445,000
11,104,000
n/a
Note: Debt amounts exclude any premiums, discounts, or other amortization amounts.
Sources:
City of San Rafael
State of California, Department of Finance (population)
U.S. Department of commerce, Bureau of the Census (income)
(a) See Schedule of Demographic and Economic Statistics for personal income and population
data.
Total
$47,903,000
45,748,004
43,368,004
42,585,548
41,963,145
39,703,435
37,210,608
36,023,646
38,150,819
4,659,000
Per
Capita (a)
973.72
933.04
890.76
872.56
848.68
804.39
757.08
728.11
770.28
190.45
132
CITY OF SAN RAFAEL
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 2012
2011-12 Assessed Valuation:
Redevelopment Incremental Valuation:
Adjusted Assessed Valuation:
$10,104,558,711
2,219,133,565
$7,885,425,146
Total Debt
City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:
6/30/2012
% Applicable (1)
Debt 6/30/12
Marin Community College District
$178,950,003
15.055%
$26,940,923
San Rafael High School District
50,185,315
74.314%
37,294,715
Tamalpais Union High School District
158,100,000
0.086%
135,966
Dixie School District
6,865,811
67.176%
4,612,177
Ross School District
18,164,940
1.660%
301,538
Ross Valley School District
22,060,000
0.015%
3,309
San Rafael School District
58,296,382
78.518%
45,773,153
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
$115,061,781
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Marin County Certificates of Participation
$77,042,311
15.027%
$11,577,148
Marin County Pension Obligations
110,185,000
15.027%
16,557,500
Marin County Transit District General Fund Obligations
205,024
15.027%
30,809
Marin Municipal Water District General Fund Obligations
166,801
19.121%
31,894
Marin Community College District Certification of Participation
2,800,837
15.055%
421,666
San Rafael School District Certificates of Participation
3,979,999
78.518%
3,125,016
City of San Rafael General Fund Obligations
9,383,112
100.000%
9,383,112 (2)
City of San Rafael Pension Obligations
4,490,000
100.000%
4,490,000
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT
$45,617,145
Less: City of San Rafael lease revenue bonds supported by enterprise revenues
6,445,000
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT
39,172,145
TOTAL GROSS DIRECT DEBT
$13,873,112
TOTAL NET DIRECT DEBT
$7,428,112
TOTAL OVERLAPPING DEBT
$153,160,747
GROSS COMBINED TOTAL DEBT
$160,678,926 (3)
NET COMBINED TOTAL DEBT
$154,233,926
(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.
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non -bonded capital lease
obligations.
Ratios to 2011-12 Assessed Valuation:
Total Overlapping Tax and Assessment Debt
Ratios to Adjusted Assessed Valuation:
Gross Combined Direct Debt ($13,873,112)
Net Combined Direct Debt ($7,428,112
Gross Combined Total Debt
Net Combined Total Debt
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/12:
Source: California Municipal Statistics, Inc.
1.14%
0.18%
0.09%
2.04%
1.96%
$0
133
CITY OF SAN RAFAEL
COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2012
ASSESSED VALUATION:
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:
LEGAL BONDED DEBT MARGIN
$10,104,558,711
378,920,952
4,490,000
$374,430,952
Total net debt
Total Net Debt
Legal
applicable to the limit
Fiscal
Debt
Applicable to
Debt
as a percentage
Year
Limit
Limit
Margin
of debt limit
2003
$260,849,301
$44,914,000
$215,935,301
20.80%
2004
274,836,486
43,239,004
231,597,482
18.67%
2005
288,902,692
41,514,004
247,388,688
16.78%
2006
311,727,085
40,849,107
270,877,978
15.08%
2007
337,021,287
39,217,501
297,803,786
13.17%
2008
357,440,434
37,537,161
319,903,273
11.73%
2009
376,420,238
35,793,692
340,626,546
10.51%
2010
381,164,135
35,355,988
345,808,147
10.22%
2011
376,057,576
37,788,499
338,269,077
11.17%
2011
378,920,952
4,490,000
374,430,952
1.20%
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
134
4.00
3.00
2.00
1.00
0.00
CITY OF SAN RAFAEL
REVENUE BOND COVERAGE
PARKING FACILITY
LAST NINE FISCAL YEARS
2004 2005 2006 2007 2008 2009 2010 2011 2012
—�— Coverage
Debt Service Requirements
Net Revenue
Fiscal
Gross
Operating
Available for
Year
Revenue (1)
Expenses (2)
Debt Service
Principal Interest
Total
Coverage
2004
$ 2,336,966
$ 1,498,740
$ 838,226
- -
-
N/A
2005
2,632,588
1,964,713
667,875
- $ 431,958 $
431,958
1.55
2006
3,069,915
2,155,435
914,480
$ 150,000 344,441
494,441
1.85
2007
3,331,754
2,344,285
987,469
155,000 339,904
494,904
2.00
2008
4,089,112
2,692,086
1,397,026
160,000 335,216
495,216
2.82
2009
4,425,813
2,980,083
1,445,730
165,000 330,379
495,379
2.92
2010
4,262,082
3,343,680
918,402
170,000 325,285
495,285
1.85
2011
4,023,211
3,101,411
921,800
175,000 319,391
494,391
1.86
2012
3,908,664
2,870,718
1,037,946
185,000 312,291
497,291
2.09
Notes:
On March 26, 2003, the City Financing Authority issued lease revenue bonds for the design and construction of a
new parking facility..
(1) Includes all Parking
Facility Operating Revenues and Non -operating Interest Revenue
(2) Includes all Parking Facility Operating Expenses less
Depreciation and Interest
Source:
City of San Rafael Annual Financial Statements
135
CITY OF SAN RAFAEL
REDEVELOPMENT PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
1999 RDA Tax Allocation Bonds (1)
Funding Source: RDA tax increment revenues
Fiscal
Year
Available
Revenue
Debt Service Requirements
Principal Interest Total
Coverage
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
2011
0
0
0
0
0
2002
RDA Tax Allocation Bonds
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage
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
2011
2,068,938
1,350,000
718,938
2,068,938
1.00
2009 RDA Tax Allocation Bonds (1)
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage
2010 $265,445 $ 265,445 $ 265,445 1.00
2011 1,494,725 $ 875,000 619,725 1,494,725 1.00
Notes: The available revenue in the tables above reflect only the amounts that were distributed to
the City of San Rafael Redevelopment Agency, and do not include the total tax revenues pledged or
provided as security to the RDA Tax Allocation Bonds listed above. The 1999 RDA Tax Allocation
Bonds, Current Interest Bonds portion were refunded by the issuance of the 2009 RDA
Tax Allocation Bonds in December 2009. The Capital Appreciation Bonds mature manually after
December 1, 2018.
The Redevelopment Agency was dissolved on January 31, 2012. On February 1, 2012,
all the debts and obligations were transferred to the Successor Agency Private -Purpose
Trust.
Source: San Rafael Finance Department
136
CITY OF SAN RAFAEL
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
23.00%
22.50%1
)0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
■ City Population as a % of County Population
w $50
$35
$30
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
—*— Per Capita Personal Income (2)
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
■ Personal Income (2) (in thousands
10.00%
750%
5.00%0
2.50%
0.00°/u
2003 2004 2005,;2006 2007 2008 2009 2010 2011 2012::
■ Unemployment Rate (%)
Personal
Per Capita
Average
Marin
City
Fiscal
City
Income (2)
Personal
Unemployment
County
Population
Year
Population (i)
(in thousands
Income (2)
Rate (3)
Population
% of County
2003
57,006
$2,181,297
$38,152
4.90%
249,808
22.82%
2004
57,182
2,282,733
39,991
4.40%
251,330
22.75%
2005
57,224
2,382,096
41,765
3.90%
252,485
22.66%
2006
57,349
2,544,221
44,400
3.50%
253,341
22.64%
2007
58,047
2,663,922
46,152
3.70%
255,982
22.68%
2008
58,235
2,703,213
46,557
4.60%
257,406
22.62%
2009
58,363
2,642,978
45,288
7.60%
258,618
22.57%
2010
58,822
2,317,704
39,402
9.90%
260,651
22.57%
2011
58,136
2,389,222
40,978
9.60%
254,692
22.83%
2012
58,305
n/a
n/a
7.70%
254,790
22.88%
Source (1) State of California, Department of Finance - Demographic Research Unit. The data represents the City's population as of
January 1, of each year.
(2) Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce. Data is Marin
county -wide rate.
(3) Employment Development Department, Labor Market Information Division. Data represents Marin county -wide rate
only and is not seasonally adjusted.
137
CITY OF SAN RAFAEL
PRINCIPAL EMPLOYERS
FISCAL YEAR 2011-2012
Number of
Employer
Employees
Kaiser Permanente
1,803
Autodesk, Inc.
878
Safeway
841
City of San Rafael
521
Comcast
620
Macy's
380
Bradley Real Estate
376
MIIN
350
Dominican University of California
346
Wells Fargo Bank
332
Totals
6,447
Percentage of
total employment
in San Rafael
6.68%
3.25%
3.11%
1.93%
2.30%
1.41%
1.39%
1.30%
1.28%
1.23%
23.88%
Source: State of California, Employment Development Department, Labor Market Information Division
San Francisco Business Times, 2011 Book of Lists
Note: Total employment in the City of San Rafael as of June 2011 was 27,000
138
CITY OF SAN RAFAEL
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
450.00
400.00
350.00
300.00
W 250.00
w 200.00
150.00
100.00
50.00
0.00
Function
General Government
Public Safety
Public Works and Parks
Community Development/Redevelopment
Culture and Recreation
Total
Source: City of San Rafael
El General Government ® Public Safety
❑ Public Works and Parks ❑ Community Development/Redevelopment
❑ Culture and Recreation
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
41.73
49.27
47.02
53.71
59.38
59.88
58.88
56.88
54.35
55.23
203.03
201.63
193.13
188.86
189.00
186.00
183.00
165.00
166.00
162.00
79.95
76.70
72.80
74.80
76.80
78.80
78.80
60.80
62.80
62.00
29.75
28.75
26.75
26.43
31.00
34.50
34.50
26.75
26.75
18.25
83.76
83.26
79.73
77.49
80.22
85.90
85.90
83.49
89.82
81.56
438.22 439.61 419.43 421.29 436.40 445.08 441.08 392.92 399.72 379.04
139
CITY OF SAN RAFAEL
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2003
2004
2005
2006
2007
2008
Function/Program
Public safety:
Fire:
Inspection permit issued
N/A
N/A
N/A
N/A
143
217
Police:
Police calls for service
N/A
N/A
N/A
N/A
43,480
43,488
Law violations:
Part I crimes
N/A
N/A
N/A
N/A
2,557
2,314
Physical arrests (adult and juvenile)
N/A
N/A
N/A
N/A
3,809
4,182
Traffic violations
N/A
N/A
N/A
N/A
5,197
9,241
Parking violations
26,308
30,946
39,421
33,610
36,228
42,481
Public works
Street resurfacing (miles) (Eng Div)
1.20
5.70
6.80
1.08
N/A
4.95
Potholes repaired (square miles)
N/A
N/A
N/A
N/A
N/A
N/A
Asphalt used for street repairs (tons)
N/A
N/A
N/A
N/A
N/A
N/A
Culture and recreation:
Recreation class participants
7,000
7,000
7,000
8,000
8,000
8,000
Items in collection (thousands)
Library:
Items in collection (thousands)
128.12
118.24
121.81
123.12
124.46
N/A
Total items borrowed (thousands)
338.60
332.33
299.30
333.15
359.41
N/A
Wastewater
Residential connections
Commercial connections
Other connections
Average daily sewage treatment (millions of gallons)
6.976
6.976
6.976
6.976
6.976
6.976
Note: N/A denotes information not available.
140
Function/Program
Public safety:
Fire:
Inspection permit issued
Police:
Police calls for service
Law violations:
Part I crimes
Physical arrests (adult and juvenile)
Traffic violations
Parking violations
Public works
Street resurfacing (miles) (Eng Div)
Potholes repaired (square miles)
Asphalt used for street repairs (tons)
Culture and recreation:
Recreation class participants
Items in collection (thousands)
Library:
Items in collection (thousands)
Total items borrowed (thousands)
Wastewater
Residential connections
Commercial connections
Other connections
Average daily sewage treatment (millions of gallons)
Note: N/A denotes information not available.
2009
2010
2011
2012
196
307
294
282
42,227
42,227
39,512
39,537
21352
2,352
2,180
2,101
4,487
4,487
3,102
2,981
5,777
5,777
8,190
4,048
44,913
42,806
34,590
32,492
2.77
2.77
7.40
N/A
N/A
N/A
N/A
N/A
N/A
N/A
112.6
178.9
800 9,524 9,000 12,075
124.40 151.88 158.30 159.18
N/A 371.12 435.66 366.46
6.976 6.976 6.976 6.976
141
Function/Program
Public safety:
Fire stations
Police stations
Police Fleet
Public works
Miles of streets
Street lights
Parking District lights
Traffic Signals
Culture and recreation:
Community services:
City parks
City parks acreage
Playgrounds
City trails
Community gardens
Community centers
Senior centers
Sports centers
Performing arts centers
Swimming pools
Tennis courts
Basketball Courts
Baseball/softball diamonds
Soccer/football fields
Library:
City Libraries
Wastewater
Miles of sanitary sewers
Number of treatment plants
(1) Source: City of San Rafael
CITY OF SAN RAFAEL
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2003 2004 2005 2006 2007 2008
6
6
6
6
6
6
1
1
1
1
1
1
171
172
172
173
173
173
4,200
4,333
4,333
4,435
4,435
4,435
85
85
85
89
89
89
19
19
19
19
19
20
41
41
41
41
41
42
13
13
13
13
13
14
15
15
15
15
20
20
2
2
2
1
1
1
4
4
4
4
4
4
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
1
1
1
1
1
10
10
10
10
10
10
5
5
5
5
5
5
5
5
5
5
5
5
2
2
2
2
2
2
1
1
1
1
1
1
178.40
179.15
179.15
179.15
179.15
179.15
53.50
57.60
57.60
57.60
57.60
57.60
1
1
1
1
1
1
142
Function/Program
Public safety:
Fire stations
Police stations
Police Fleet
Public works
Miles of streets
Street lights
Parking District lights
Traffic Signals
Culture and recreation:
Community services:
City parks
City parks acreage
Playgrounds
City trails
Community gardens
Community centers
Senior centers
Sports centers
Performing arts centers
Swimming pools
Tennis courts
Basketball Courts
Baseball/softball diamonds
Soccer/football fields
Library:
City Libraries
Wastewater
Miles of sanitary sewers
Number of treatment plants
(1) Source: City of San Rafael
2009 2010 2011 2012
6
6
6
6
1
1
1
1
173
173
173
173
4,435
4,435
4,435
4,435
89
89
89
89
20
20
20
20
42
42
42
42
14
14
14
14
20
20
20
20
1
1
1
1
4
4
4
4
0
0
0
0
0
0
0
0
0
0
0
0
1
1
1
1
10
10
10
10
5
5
5
5
5
5
5
5
2
2
2
2
2
2
2
2
179.15
179
179
179
57.60
58
58
58
1
1
1
1
143
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