HomeMy WebLinkAboutFY2013-14-CAFR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDING JUNE 30, 2014
Loma Alta Open Space Preserve
This Page Left Intentionally Blank
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2014
City of San Rafael, California
P.O. Box 151560
1400 Fifth Avenue
San Rafael, California 94915-1560
Prepared by the Finance Department of the City of San Rafael
This Page Left Intentionally Blank
Bike Race at Mission
INTRODUCTORY
SECTION
This Page Left Intentionally Blank
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2014
Table of Contents
INTRODUCTORY SECTION
TABLE OF CONTENTS
Letter of Transmittal .................................................................................................................................... v
Mission Statement and Vision Statement .................................................................................................... x
City Council and Staff ................................................................................................................................ xi
Location Map ............................................................................................................................................. xii
Organizational Chart .................................................................................................................................xiii
Certificate of Award for Excellence in Financial Reporting .................................................................... xiv
FINANCIAL SECTION
Independent Auditor's Report .................................................................................................................. 1
Management’s Discussion and Analysis .................................................................................................. 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ............................................................................................................. 23
Statement of Activities .................................................................................................................. 24
Fund Financial Statements:
Major Governmental Funds:
Balance Sheet ............................................................................................................................ 28
Balance Sheet - Reconciliation of Governmental Fund Balances to
Net Position of Governmental Activities .............................................................................. 29
Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 30
Reconciliation of the Net Change in Fund Balances - Total Governmental
Funds with the Statement of Activities ................................................................................. 31
Proprietary Funds:
Statement of Net Position .......................................................................................................... 34
Statement of Revenues, Expenses, and Changes in Fund Net Position .................................... 35
Statement of Cash Flows ........................................................................................................... 36
i
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2014
Table of Contents
FINANCIAL SECTION (Continued)
Fiduciary Funds:
Statement of Fiduciary Net Position ......................................................................................... 38
Statement of Changes in Fiduciary Net Position....................................................................... 39
Notes to Basic Financial Statements .................................................................................................. 41
Required Supplementary Information:
Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual -
Budgetary Basis
General Fund ............................................................................................................................. 84
Traffic and Housing Mitigation Special Revenue Fund ............................................................ 85
Gas Tax Special Revenue Fund ................................................................................................. 86
Supplementary Information:
Non-major Governmental Funds:
Combining Balance Sheets ........................................................................................................... 92
Combining Statements of Revenues, Expenditures, and Changes
in Fund Balance ..................................................................................................................... 98
Budgeted Non-major Government Funds:
Combining Schedules of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual ...................................................................... 104
Internal Service Funds:
Combining Statements of Net Position ....................................................................................... 114
Combining Statements of Revenues, Expenses and Changes in Fund Net Position .................. 116
Combining Statements of Cash Flows ........................................................................................ 118
Agency Funds:
Combining Statements of Changes in Assets and Liabilities ..................................................... 122
ii
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2014
Table of Contents
STATISTICAL SECTION
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ............................................................................. 126
Changes in Net Position – Last Ten Fiscal Years .................................................................................... 128
Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................................................ 132
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ......................................... 134
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ............................ 136
Property Tax Rates - All Direct and Overlapping Governments– Last Ten Fiscal Years ...................... 137
Principal Property Tax Payers – Current Year and Nine Years Ago ...................................................... 138
Property Tax Levies and Collections – Last Ten Fiscal Years ............................................................... 139
Debt Capacity:
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ................................................................. 140
Computation of Direct and Overlapping Debt ........................................................................................ 141
Computation of Legal Bonded Debt Margin .......................................................................................... 142
Revenue Bond Coverage Parking Facility – Last Ten Fiscal Years ....................................................... 143
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years ............................................................ 144
Principal Employers – Last Six Years .................................................................................................... 145
Operating Information:
Full-Time Equivalent City Government Employees by Function
– Last Ten Fiscal Years....................................................................................................................... 146
Operating Indicators by Function/Program – Last Ten Fiscal Years ..................................................... 148
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ................................................. 150
iii
This Page Left Intentionally Blank
CAFR TRANSMITTAL LETTER
REPORTING ENTITY -PROFILE OF THE GOVERNMENT
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 park and
recreational resources include 25 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, as
well as San Francisco, Oakland and the wine country.
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 on
January 1,2014 was 58,566, an increase of 0.4% from the January 1,2013 popUlation of58,339.
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, Second 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.
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, recreation, childcare, permits, planning, code enforcement, and a library system serving two
locations. The City performed certain infrastructure construction and economic development activities
through a separate Redevelopment Agency until its dissolution on February 1,2012. 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 California Municipal Finance Authority compose the San Rafael Joint Powers Financing
Authority, which was originally established by the City and former Redevelopment Agency for the purpose
of financing redevelopment and other 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 ofthe 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. 12 in the CAFR.
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, 19% commercial, 2% industrial, unsecured and others 3%. The top 50 sales tax producers
provide 59% of overall sales tax revenues.
For fiscal year 2014-2015, sales tax is projected to increase over the prior year by approximately 6%. A
new Transaction Use Tax (Measure E) .75% took effect in April 2014. This tax supplanted the former
TUT (Measure S) of .50%. The revenue from this tax is projected to reach $11.2 million, with one-third of
the funds allocated to public safety facilities construction and improvements. Total Measure E revenues
account for 16.5% of General Fund Revenues. Property-related taxes are projected to increase by
approximately 4%. All other revenues, including business tax, franchise tax, charges for services and
permit fees are expected to experience modest increases.
It is anticipated that economy will continue to grow during the upcoming year, but job gains will be limited.
The City continues to fund current year operating expenses without the use of one-time revenues or
reserves. In addition, significant resources have been added over the past year to the general fund operating
reserves, and other uses such as: technology to support City operations, facilities and open space
maintenance, and to reduce retiree benefit-related pension and health liabilities.
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.
I2Sl Economic development organizations in San Rafael include the Downtown Business Improvement
District, Chamber of Commerce and the Marin Economic Forum.
I2Sl Marin County's top 10 employers include Kaiser Permanente, BioMarin, Autodesk, Dominican
University of California, Bradley Real Estate, Macy's, Wells Fargo, FICO, Community Action Marin
and Bernard Osher Marin lCe.
I2Sl Major shopping areas, as measured in available retail square footage, include the Downtown corridor
(938,000 aggregate), Northgate Mall (725,000), Montecito Center (130,000) and Northgate One
(113,900).
I2Sl The top three sales tax categories in 2014 for San Rafael are as follows: 1. Autos and Transportation, 2.
General Consumer Goods, 3. Building and Construction.
I2Sl Several hotels and motels support tourism activity, led by 235 room facilities for both the Embassy
Suites and Four Points Sheraton. Citywide, the total number of hotel rooms is 786.
I2Sl Home buying and apartment rentals continue to be an affordability challenge both in San Rafael and
Marin County. Rents for one bedroom apartments range from $1,275-$1,900, while two bedroom
apartments go for $1,624 to $2,900.
vii
CAFR TRANSMITTAL LETTER
Recent growth and economic vibrancy:
• BioMarin purchased the San Rafael Corporate Center (315,000 sq. ft. on a 13 acre campus) in
March 2014 to be its corporate headquarters
• BioMarin commenced construction of a new research and development building (86,000 sq. ft.)
along with a 600 space parking garage in August 2014
• Construction commenced in July 2014 of the SMART (Sonoma Marin Area Rapid Transit) tracks
as well as the platforms and related infrastructure for the Downtown and Civic Center Stations -
anticipated service to start in 2016
• Construction commenced of a 16 unit apartment building at 1867 Lincoln Avenue
• Construction commenced ofa 10,000 sq. ft. office building (DaVita Dialysis) at 1415 Third Street
• New Home Goods store (30,000 sq. ft.) scheduled to open in fall 2014
• New Sprouts Market (24,000 sq. ft.) scheduled to open in late 2014 or early 2015
FINANCIAL INFORMATION
The City's management 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 . It is management's belief that
the City's internal accounting controls adequately safeguard assets and provide reasonable assurance that
financial transactions are properly recorded.
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.
viii
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
x
City Council and Staff
City Council
Gary O. Phillips, Mayor
Damon Connolly, Vice Mayor
Maribeth Bushey, Council Member
Kate Colin, Council Member
Andrew Cuyugan McCullough, Council Member
Elected Officials
Rob Epstein, City Attorney
Esther Beirne, City Clerk
Executive Team
Nancy Mackle, City Manager
Jim Schutz, Assistant City Manager
Diana Bishop, Chief of Police
Deirdre Dolan, Human Resources Director
Chris Gray, Fire Chief
Sarah Houghton, Library Director
Paul Jensen, Community Development Director
Stephanie Lovette, Economic Development Manager
Nader Mansourian, Public Works Director
Carlene McCart, Community Services Director
Mark Moses, Finance Director
Doris Toy, District Manager/Engineer-SRSD
CAFR Team
Mark Moses, Finance Director
Van Bach, Accounting Manager
Helen Yu, Senior Accountant
Carl Tregner, Accountant
xi
xii
Ci
t
y
of
Sa
n
Ra
f
a
e
l
Or
g
a
n
i
z
a
Ɵon
a
l
Ch
a
r
t
El
e
c
t
o
r
a
t
e
Ci
t
y
AƩor
n
e
y
Ci
t
y
Ma
n
a
g
e
r
As
s
i
s
t
a
n
t
Ci
t
y
Ma
n
a
g
e
r
Bo
a
r
d
s
&
Co
m
m
i
s
s
i
o
n
s
Ci
t
y
Cl
e
r
k
Ma
y
o
r
& Ci
t
y
Co
u
n
c
i
l
In
f
o
r
m
a
Ɵon
Te
c
h
n
o
l
o
g
y
Pa
r
k
i
n
g
Se
r
v
i
c
e
s
Hu
m
a
n
Re
s
o
u
r
c
e
s
Vo
l
u
n
t
e
e
r
&
Su
s
t
a
i
n
a
b
i
l
i
t
y
Pr
o
g
r
a
m
s
Ec
o
n
o
m
i
c
De
v
e
l
o
p
m
e
n
t
Di
v
i
s
i
o
n
Po
l
i
c
e
De
p
a
r
t
m
e
n
t
Co
m
m
u
n
i
t
y
Se
r
v
i
c
e
s
De
p
a
r
t
m
e
n
t
Fi
r
e
De
p
a
r
t
m
e
n
t
Co
m
m
u
n
i
t
y
De
v
e
l
o
p
m
e
n
t
De
p
a
r
t
m
e
n
t
De
p
a
r
t
m
e
n
t
of
Pu
b
l
i
c
Wo
r
k
s
Fi
n
a
n
c
e
De
p
a
r
t
m
e
n
t
Li
b
r
a
r
y
xiii
xiv
Farmers Market
FINANCIAL SECTION
This Page Left Intentionally Blank
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
City of San Rafael, California
Report on Financial Statements
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 (City), California, as of
and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements as listed in the table of contents. We did not audit the
component unit financial statements of the San Rafael Sanitation District, which represents 17% and 14%
of the assets and revenues and 1% and 11% 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 auditors.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of the financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
1
Opinions
In our opinions, based on our audit and the report of other auditors the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, each major fund, the aggregate remaining fund information and the
discretely presented component unit of the City as of June 30, 2014, and the respective changes in
financial position and, where applicable, cash flows thereof for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
Emphasis of Matters
As discussed in Note 1N, the City made prior period adjustments to the beginning net positions and
beginning fund balances of the Governmental Activities, Business-type Activities and various funds.
Management adopted the provisions of the following Governmental Accounting Standards Board
Statements, which became effective during the year ended June 30, 2014 that affected the format and
nomenclature of the financial statements:
Statement 65 - Items Previously Reported as Assets and Liabilities. See Note 1G to the financial
statements for relevant disclosures.
The emphasis of these matters does not constitute a modification to our opinions.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management’s
Discussion and Analysis, and budgetary comparison information for the General Fund, Traffic and
Housing Mitigation Fund, and Gas Tax Fund 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 the required supplementary information in accordance with auditing
standards generally accepted 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements as a whole. The Introductory Section, Supplementary
Information, and Statistical Section as listed in the Table of Contents are presented for purposes of
additional analysis and are not required parts of the basic financial statements.
2
The Supplementary Information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the Supplementary
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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated September 29,
2014, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and 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
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City’s internal control
over financial reporting and compliance.
Pleasant Hill, California
September 29, 2014
3
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
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, 2014. Please read it in conjunction with the basic financial statements and the
accompanying notes to those basic financial statements.
FINANCIAL HIGHLIGHTS
Government-wide:
Net Position – The assets of the City exceeded its liabilities as of June 30, 2014 by $240.2 million.
Activities – During the fiscal year the City’s total revenues of $97.6 million were greater than expenses for
governmental and business-type activities of $94.8 million by $2.8 million.
Changes in Net Position – The City’s total net position increased by $2.8 million in fiscal year 2013-2014. Net
position of governmental activities increased by $2.9 million, while net position of the business type activities
reduced by $87 thousand.
Fund Level:
Governmental Funds – Fund Balances- As of the close of fiscal year 2013-2014, the City’s governmental
funds reported combined ending fund balances of $44.7 million, an increase of $6.2 million from the
adjusted fund balance of the prior year. Of this total amount, $0.5 million is nonspendable, $30.2 million is
restricted, $2.2 million is committed, and $11.8 million is assigned.
Governmental fund revenues were $93.6 million, a decrease of $0.5 million from fiscal year 2012-2013. This
decrease was caused by fewer grant and one-time funded projects in fiscal year 2013-2014.
Governmental fund expenditures increased by $1.5 million to $88.5 million, from $87.0 million in the prior year,
due to expenditure increases in the General fund, Gas Tax fund, and Equipment Replacement Capital Projects
fund.
Enterprise fund operating revenue increased by $0.5 million to $4.5 million, from $4.0 million in the prior year.
This was attributable to an increase in parking rates that became effective in February 2014. Enterprise fund
operating expenses were $3.9 million, an increase of $0.6 million from the prior fiscal year, due primarily to
parking meter replacements.
OVERVIEW OF FINANCIAL STATEMENTS
The Comprehensive Annual Financial Report is composed of the following:
1. 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. This report also contains other supplementary information in
addition to the basic financial statements for further information and analysis.
5
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
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 Position and the Statement of Activities and Changes in Net Position report information about the
City as a whole. 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 Position presents information on all of the City’s assets and liabilities, with the difference between
the two reported as net position. Over time, increases in net position 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 Position presents information showing how the City’s net position
changed during the year. All changes in net position 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 Position and the Statement of Activities and Changes in Net Position, 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, 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
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 21 through 25 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.
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 in Governmental
Accounting Standards Board Statement No. 34. 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 89 through
111 of this report.
6
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
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-two governmental funds, of which four are considered major funds for presentation purposes.
Each major fund is presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances. The City’s four major funds are - the General
Fund, Gas Tax, Traffic and Housing Mitigation, and Equipment Replacement. Data from the other twenty-eight
governmental funds are combined into a single, aggregated presentation. The basic governmental fund financial
statements can be found on pages 27 through 36 of this report. Individual fund data for each of these non-major
governmental funds is provided in the form of combining statements on pages 89 through 111 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 building maintenance, workers compensation, general liability, and
self-insured dental program, 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 33 through 36 of this report.
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those
funds are not available to support the City’s own programs. 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 Position and the Agency Funds Statement of Changes in Assets and Liabilities. The City’s
fiduciary funds include a private-purpose trust fund to account for activities of the City of San Rafael Successor Agency,
and an agency fund that accounts for resources held by the City in a custodial capacity for the Pt. San Pedro Road
Assessment District. Information for the fiduciary funds can be found on pages 37 through 39 of this report.
7
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
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 41 through 80 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 81 through 86 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
Net position is one indicator of the City’s financial position. During this fiscal year, the net position of the City
was $227.4 million from Governmental Activities, and $12.8 million from Business-type Activities, for a total of
$240.2 million. This represents an increase of $2.8 million from the prior year net position.
The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2014 and 2013.
Increase Increase
2014 2013 (Decrease) 2014 2013 (Decrease)
Current and other assets $67,001 $60,443 * $6,558 $2,289 $2,598 * ($309)
Capital assets 190,815 193,223 (2,408) 17,035 16,924 111
Total assets 257,816 253,666 4,150 19,324 19,522 (198)
Current and other liabilities 7,901 7,250 * 651 385 495 * (110)
Noncurrent liabilities 22,486 21,886 * 600 6,103 6,104 (1)
Total liabilities 30,387 29,136 1,251 6,488 6,599 (111)
Net Position:
Invested in capital assets,
net of related debt 190,286 193,223 (2,937) 10,786 10,670 116
Restricted 37,339 34,672 * 2,667
Unrestricted (196) (3,365) * 3,169 2,050 2,253 * (203)
Total net position $227,429 $224,530 * $2,899 $12,836 $12,923 * ($87)
* The City adjusted its fiscal year 2012-2013 net position. Please see detailed information in Note 1N
Governmental Activities Business-Type Activities
Summary of Net Position
June 30, (in thousands)
Current governmental liabilities increased by approximately $651 thousand, primarily due to an increase in
invoices received after fiscal year-end and an increase in liability claims payable (Note 13). The increase in total
net position from fiscal year 2012-2013 to fiscal year 2013-2014 is chiefly attributable to positive general fund
operating results and the accumulation of funds for specific purposes (e.g., gas tax, equipment replacement,
childcare, emergency medical services, and capital improvement, etc.).
8
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
The net position in business-type activities, which reflects the activity of the Parking Services program, was
decreased by $87 thousand from the previous year due to impact of one-time replacement of 806 parking meters.
At June 30, 2014, the largest portion of net position, 84 percent, consisted of the City’s investment in capital assets
net of related debt. This component represents the total amount of funds required to acquire capital assets less any
related debt used for such acquisition that is still outstanding. The City uses these assets to provide services to
residents. 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 position, 15 percent, is subject to external restrictions, and their use is determined by those
restrictions whether legal or by covenant.
The remaining portion, 1 percent, is not subject to external restrictions, but may be assigned to reserves or other specified
funding needs.
9
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
Statement of Activities - Governmental
The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ended June 30,
2014 and 2013:
Increase
2014 2013 (Decrease)
Revenues
Program revenues:
Charges for services $24,651 $27,031 ($2,380)
Operating grants and contributions 4,698 4,085 613
Capital grants and contributions 763 5,877 (5,114)
Total program revenues 30,112 36,993 (6,881)
General revenues:
Property taxes 18,440 17,318 1,122
Sales taxes 27,759 24,262 3,497
Paramedic tax 3,816 3,805 11
Transient occupancy tax 2,332 2,185 147
Franchise tax 3,261 3,331 (70)
Business license tax 2,589 2,508 81
Other taxes 3,452 2,930 522
Investment earnings 184 992 (808)
Miscellaneous 1,141 2,581 (1,440)
Total general revenues 62,974 59,912 3,062
Transfers in 450 424 26
Total revenues and transfers 93,536 97,329 (3,793)
Expenses
General government 9,086 10,203 (1,117)
Public safety 43,800 41,966 1,834
Public works and parks 22,126 17,695 4,431
Community development 3,451 3,403 48
Culture and recreation 11,847 11,330 517
Interest on long-term debt 327 284 43
Total expenses 90,637 84,881 5,756
Change in net position $2,899 $12,448 ($9,549)
Summary of Changes in Net Position
June 30, (in thousands)
Governmental Activities
10
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
The City’s governmental activities net position increased by $2.9 million during fiscal year 2013-2014. Charges for
services were approximately $2.4 million lower than the previous year, at which time a large payment was made for
traffic and housing mitigation. Capital grants and contributions were $5.1 million lower, reflecting the reduction in grants
and one-time reimbursements. Meanwhile, the City recorded a $5.3 million year-over-year increase in property tax, sales
taxes, and other taxes revenues. Fiscal year 2013-2014 expenditures exceeded those of the previous fiscal year by $5.8
million, as a result of additional spending in public safety and public works.
Revenue highlights:
Sales tax (including Triple Flip Backfill and transactions and use taxes) increased by $3.5 million, a 14.4
percent increase compared to the previous fiscal year. Automobile sales contributed heavily to this trend, as
well as an increased transactions and use tax that became effective in the final quarter of the year. Transient
Occupancy Tax revenues increased by $147 thousand, or 6.7 percent, fueled by lower vacancy rates and
higher room rates when compared to those of the previous year.
Other taxes increased by $522 thousand, led by a $471 thousand increase in property transfer tax.
Operating grants and contributions increased by $613 thousand, or 15.1 percent. The increase resulted from
$345 thousand of new GEMT grants, $503 thousand in additional Gas tax revenues. These revenues were
offset partially by a reduction in general government grants. The following charts display the City’s
governmental activities for fiscal year 2013-2014, highlighting the proportionate elements of the Revenue
and Expenses by program.
Capital grants and contributions totaled $0.8 million, a drop of $5.1 million from the previous year.
Significant reductions in federal and local transportation and infrastructure grants account for most of this
decline.
11
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
Expenses and Program Revenues
Governmental Activities
Program Revenue Expenses
Total expenses for governmental activities were $90.6 million (excluding interest on long-term debt of $327 thousand).
Program revenues offset total expenditures as follows:
Those who directly benefited from programs contributed $24.7 million in charges for services.
A total of $5.5 million in operating and capital projects were funded by outside agencies through operating,
capital grants, and contributions.
As a result, total expenses that were funded by tax revenues, investment income and other general revenues were
$60.4 million.
Functional expenses for the years ended June 30, 2014 were as follows:
Function Amount Percent of Total
General government $9,086 10.0%
Public safety 43,800 48.3%
Public works and parks 22,126 24.4%
Community development 3,451 3.8%
Culture and recreation 11,847 13.1%
Interest on debt 327 0.4%
Total expenses $90,637 100%
Expenses by Function
For the fiscal year ended June 30, 2014 (in thousands)
12
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
Statement of Activities – Business-type
Increase
2014 2013 (Decrease)
Revenues
Program revenues:
Charges for services $4,485 $3,991 $494
Total program revenues 4,485 3,991 494
General revenues:
Investment earnings 4 4 0
Total general revenues 4 4 0
Total revenues 4,489 3,995 494
Expenses
Parking services 4,126 3,545 581
Total expenses 4,126 3,545 581
Transfers out 450 424 26
Total expenses and transfers 4,576 3,969 607
Change in net position ($87) $26 ($113)
Summary of Changes in Net Position
June 30, (in thousands)
Business-Type Activities
Net position for business-type activities was $12.8 million, an $87 thousand decrease from the prior fiscal year. Parking
services is the City’s only business-type activity with income derived from program revenues of $4.5 million. Program
revenues include parking meter coin income of $1.5 million, and parking garage hourly and monthly parking income of
$1.0 million. Revenues also include parking and non-vehicle code fines totaling $2.0 million. Total expenses for parking
services were $4.1 million and transfers out to general fund and non-major governmental fund for support totaled $450
thousand during fiscal year 2013-2014.
13
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS
Governmental Funds
Fund Balance Classifications
In February 2009, the Governmental Accounting Standards Board issued Statement No. 54 (GASB 54), “Fund Balance
Reporting and Governmental Fund Type Definitions.” The objective of GASB 54 was to enhance the usefulness of fund
balance information by providing clearer fund balance classifications that can be applied. 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 8B.
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 $44.7
million, an increase of $6.2 million from the prior year; $0.5 million is nonspendable, $30.2 million is restricted, $2.2
million is committed, and $11.8 million is assigned.
General Fund – The General Fund is the primary operating fund of the city.
General Fund – The fund balance of the General Fund as of June 30, 2014 was $7.4 million, a $3.9 million
increase from the adjusted prior year balances; $503 thousand is nonspendable and $6.9 million is assigned. The
assigned portion of the balance includes $5.1 million for emergency and cash flow needs, which is a 122 percent
increase from prior year.
General Fund Budgetary Highlights:
The original, adopted General Fund budget projected total revenue of $60.3 million and transfers in of $1.2 million for
total resources of $61.5 million. This budget appropriated expenditures of $59.5 million and transfers out of $2.0 million,
for a total of $61.5 million.
Actual revenues, at $64.3 million, exceeded the original budgeted revenues by $4.0 million. This positive performance
was driven by tax revenues (property tax, sales tax, transient occupancy tax), including a new transactions and use tax that
went into effect on April 1, 2014. Additional resources were contributed via a $0.6 million interest free PG&E loan.
Of the $4.6 million in additional resources, $0.9 million was assigned to a public safety facilities reserve, and $2.9 million
was added to the emergency cash flow reserve. The balance of $0.8 million was used to fund energy improvements made
possible by the PG&E loan.
14
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
Adopted Budget Revised Budget Final Results
Revenues $60,254 $63,663 $64,283
Other financing sources 568 568
Transfers in 1,241 1,241 1,225
Total resources 61,495 65,472 66,076
Expenditures 59,526 $60,147 59,699
Transfers out 1,925 2,498 2,498
Total uses 61,451 62,645 62,197
Net Operating Results $44 $2,827 $3,879
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2014 (in thousands)
Traffic and Housing Mitigation Fund – The City uses this fund to collect developer contributions to be used for major
street improvement and housing infrastructure projects. During the year, the fund balance increased from $12.5 million to
$12.6 million. Revenues totaled $0.2 million, while $0.1 million was charged against this fund to support the maintenance
of the City-wide traffic model. The balance in the fund is being held in anticipation of major street projects identified in
the General Plan 2020.
Gas Tax Fund – The City uses this fund to manage its allocation of State gasoline taxes and local funding for street
maintenance projects. Gas tax revenues exceeded expenditures by $874 thousand in fiscal year 2013-2014 and the ending
fund balance increased from $6.1 million as of June 30, 2013, to $7.0 million as of June 30, 2014.
Major expenditures in fiscal year 2014-2015 included $1.2 million for annual resurfacing of the City’s most severely
worn roadways, $693 thousand for the Canal St. and Kerner Pedestrian & Transit Improvements, and $630 thousand for
Pt. San Pedro Resurfacing. The largest sources of revenues included $1.9 million from State gasoline taxes, $960
thousand in local Measure A and Measure B funds, and $933 thousand in development impact fees.
Equipment Replacement Fund – The City established this capital project fund to manage the replacement of vehicles and
equipment, including computer systems and technology. At June 30, 2014, the Equipment Replacement fund had a total
fund balance of $4.9 million, with $2.8 million available for vehicle replacements, $1.2 million for technology, and $0.9
million for public-safety equipment. During fiscal year 2013-2014, $2.8 million of current funds were allocated to
equipment replacements and $3.0 million was spent; of which $1.9 million was expended for vehicles, $1.0 million for
technology, and $0.1 million for public safety equipment.
Non-major Governmental Funds – The City’s non-major funds are presented in the basic financial statements in the
aggregate. At June 30, 2014, non-major funds had a total fund balance of $12.9 million, a $1.5 million increase from the
previous year. The increase resulted from a $450 thousand increase to the childcare operating and capital reserves, a $600
thousand increase in emergency medical services operating and capital reserves, and $350 thousand capital project set-
aside.
Of the ending total non-major fund balances, 82 percent ($10.6 million) is legally restricted for specific purposes by
external funding source providers, 12 percent ($1.5 million) is committed for special purposes by the City Council, $9
thousand is non-spendable, and 6 percent ($0.8 million) is assigned. Additional information about these aggregated non-
major funds is presented in the combining statements which immediately follow the required supplementary information.
15
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
Proprietary Funds
The City’s proprietary funds are presented in the basic financial statements in a manner similar to that found in the
government-wide financial statements, but in more detail. As noted on page 13 the business-type activities previously, the
City’s fund net position decreased by $87 thousand. Parking Services is the City’s only business-type (enterprise) activity.
The fund operating revenue increased by $0.5 million to $4.5 million, from $4.0 million in the prior year. This was
attributable to an increase in parking rates from $1.00 per hour to $1.50 per hour implemented in February 2014.
Enterprise fund operating expenses were $3.9 million, an increase of $0.6 million from the prior fiscal year, due primarily
to parking meter replacements.
The City’s internal service funds are also reported in this classification. During the fiscal year, the net position increased
by $887 thousand, as resources were added to building maintenance, employee retirement and retiree medical funds.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2014 amounts to
$207.8 million, net of accumulated depreciation of $149.1 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 net additions to the City’s investment in capital assets for the current
fiscal year was $4.5 million, offset by accumulated depreciation of $7.5 million, resulting in a net decrease of $2.3
million.
Additions to capital assets included:
Equipment: Vehicles $1.1 million
Infrastructure:
o Pt. San Pedro Median Landscaping - $1.8 million
o Canal Lifeline Phase II - $0.8 million
o Other - $0.4 million
Building & structures: 3rd & Cijos Parking Lot Reconstruction $0.4 million
The City’s Capital Assets for the fiscal years ending June 30, 2014 and 2013 were as follows:
16
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
2014 2013
Governmental Activities
Land $82,464 $82,464
Construction in progress 2,301 2,548
Land improvements 8,789 8,789
Buildings and structures 40,300 40,321
Machinery and equipment 18,102 16,921
Infrastructure 184,508 181,556
Less accumulated depreciation (145,649) (139,376)
Subtotal Governmental Activities 190,815 193,223
Business-type Activities
Land 8,621 8,621
Buildings and structures 10,714 10,328
Machinery and equipment 1,179 1,139
Less accumulated depreciation (3,479) (3,164)
Subtotal Business-type Activities 17,035 16,924
Total Capital Assets $207,850 $210,147
Summary of Capital Assets
June 30, (in thousands)
Additional information on the City’s capital assets can be found in Note 5 on pages 58 through 60 of this report.
17
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
Debt Administration
The City’s debt is discussed in more detail in Note 6 to the financial statements. The debt of the former Redevelopment
Agency is now reported under the Successor Agency, which is presented as Private-Purpose Trust Fund on the Statement
of Fiduciary Net Position. See Note 15 to the financial statements for additional information. The City’s long-term debt
for the fiscal years ending June 30, 2014 and 2013 were as follows:
2014 2013
Governmental Activity Debt:
2010 Taxable Pension Obligation Bonds $4,490 $4,490
Ground Lease Note Payable 169
PG & E City Hall HVAC Retrofit Note Payable 312
PG & E Street Light Retrofit Note Payable 217
Subtotal Governmental Activity Debt 5,019 4,659
Business-type Debt:
PG & E Parking Lot Lighting Retrofit Note Payable 62
2012 Authority Lease Revenue refunding Bonds, as adjusted 6,186 6,431 *
Subtotal Business-type Debt 6,248 6,431
Total Long-Term Debt $11,267 $11,090 *
Summary of Long-Term Debt
June 30, (in thousands)
* The City adjusted its fiscal year 2012-2013 long-term obligations balances to reflect the requirements of
GASB Statement No. 65. Please see detailed information in Note 1N.
18
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
ECONOMIC CLIMATE AND NEXT YEAR’S BUDGET
Five years after the official end of the Great Recession, the City’s revenues have just begun to exceed their pre-recession
peak. As the City looks ahead to fiscal year 2014-2015, management is encouraged by indicators that a modest recovery
is underway. However, relatively strong growth in our regional economy is tempered by persistent uncertainty at the
national and international level.
The nation has been bouncing back slowly, fueled by a resurgent housing market and consistent job growth. Overall, the
national economy is on the mend, but there are many longer-term issues the nation must address, including funding
changes to the national healthcare system, long-term underemployment and unemployment, and resolving underfunded
federal entitlements and state and local pensions.
The State has begun to make a dent in its accumulated debt, a portion of which (budgetary debt) was incurred over the
past decade to avoid spending cuts. Even when this debt is cleared, the State will have substantial long-term debt and
unfunded liabilities with which will claim resources otherwise available for services. California continues to be a leader
in the nation’s employment recovery with business expansion across most regions and industries. California, the nation’s
largest labor market accounting for about 11% all of U.S. jobs, recently became one of eighteen states whose employment
levels have now topped their pre-recession levels for nonfarm employment. However, even with this employment growth,
the State unemployment rate is 7.3%, which exceeds the national rate of 6.3%. Locally, there has been greater resilience,
where the Marin County unemployment rate hovers at 4%, the lowest level statewide. This is one example of how the
impact of the recession and subsequent recovery throughout the state has not been uniform.
The City’s general fund is fueled by the momentum of two consecutive years of strong operating results. Service levels
have increased moderately over the past two years, with additional resources being allocated to homeless issues,
massage ordinance enforcement and open space management. At the same time, the City is fully funding its actuarially-
determined, required contributions for both pension and retiree medical (OPEB) obligations. In addition, on November
5, 2013, San Rafael voters approved Measure E. This new, twenty-year San Rafael three-quarter cent TUT became
effective April 1, 2014, and supplanted the former Measure S one-half cent TUT, which had been in effect since April 1,
2006, and was originally scheduled to terminate on March 31, 2016. Fiscal year 2014-2015 will mark the first full year of
this new transaction tax, one-third of which has been set aside by the City Council for public safety facilities construction
and improvements.
Reductions in staffing and service levels, coupled with deferral of maintenance of City facilities and infrastructure were
used to cope with past economic downturns. Consequently, although the City is able to maintain and, in some cases,
improve on its level of services, and even make some strategic investments for the City’s future, there will still be
unfunded needs.
Sales tax and transactions and use tax (Measure E), which combined represent the City’s biggest tax revenue generators,
are anticipated to continue to grow. For fiscal year 2014-2015, sales tax is projected to increase by approximately six
percent. Transactions and use tax is projected to increase by about 40%; however, most of this increase is due to the fact
that the new Measure E rate will be in effect during the entire year. The higher rate was used only during the final three
months of the prior fiscal year.
The City’s second largest tax generator is property tax. The City is expecting the fiscal year 2014-2015 tax roll to increase
by approximately five percent over the previous year.
The City’s largest expenditure relates to personnel costs. Salaries and benefits are tied to the labor agreements with
each bargaining group. Most labor units are on a two-year contract that expires on June 30, 2016. The exception is
SEIU, which is in the second year of a two-year agreement that expires on June 30, 2015. Negotiated compensation
increases in effect through June 30, 2016, range from approximately 2.0 – 3.5% annually.
19
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
In the bond markets, the San Rafael name is recognized as a high credit municipal entity given both the City’s financial
strength and solid financial management. Because the City’s bonds are highly sought by investors and are fairly
competitive in the marketplace, the City can borrow funds at reasonably attractive rates. Although no debt issuances took
place in the past fiscal year, Standard & Poor’s Ratings Services upgraded the City to a AA- issuer credit rating last
winter.
General Fund ending balances are anticipated to grow in the near term providing the City Council with options to increase
reserves or to fund one-time needs in the future. Reserves are important to ensure the stability and reliability of City
services.
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.
20
CITY OF SAN RAFAEL
STATEMENT OF NET POSITION AND
STATEMENT OF ACTIVITIES
The Statement of Net Position 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 Position 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 Position
focuses the reader on the composition of the City’s net position, by subtracting total liabilities from total
assets.
The Statement of Net Position 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 position. 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
Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City and the San Rafael Joint Powers
Financing Authority which are legally separate but are considered to be 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 San Rafael Sanitation District, a discretely presented component unit, are
included in these statements in a separate column.
21
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
STATEMENT OF NET POSITION
JUNE 30, 2014
Component
Unit
Primary Government San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
ASSETS
Cash and investments available for operations (Note 2) $53,257,705 $2,264,638 $55,522,343 $21,802,809
Restricted cash and investments (Note 2) 76,371 76,371
Receivables:
Accounts 3,043,348 24,778 3,068,126 73,201
Taxes 6,176,263 6,176,263
Grants 677,636 677,636
Interest 64,694 64,694
Loans (Note 4) 811,512 811,512
Long-term receivable from the Successor Agency (Note 15D) 1,779,324 1,779,324
Prepaid expenses and others 113,616 113,616 233,188
Net Pension asset (Note 9C) 1,000,000 1,000,000
Capital assets (Note 5):
Nondepreciable 84,765,332 8,620,853 93,386,185 493,289
Depreciable, net 106,049,782 8,413,977 114,463,759 33,730,047
Total Assets 257,815,583 19,324,246 277,139,829 56,332,534
LIABILITIES
Accounts payable 4,093,001 65,722 4,158,723 543,145
Deposits payable 288,381 288,381
Interest payable 51,597 51,597
Developer deposits payable 487,927 487,927
Unearned revenue 343,442 343,442
Claims payable (Note 13):
Due in one year 2,079,523 2,079,523
Due in more than one year 4,510,183 4,510,183
Compensated absences (Note 1K):
Due in one year 533,712 15,267 548,979
Due in more than one year 3,735,983 106,873 3,842,856
Long-term debt (Note 6):
Due in one year 75,172 251,816 326,988
Due in more than one year 4,943,667 5,996,423 10,940,090
Net OPEB liability (Note 11) 9,296,000 9,296,000
Total Liabilities 30,386,991 6,487,698 36,874,689 543,145
NET POSITION (Note 8):
Net investment in capital assets 190,286,275 10,786,591 201,072,866 34,223,336
Restricted for:
Special revenue projects:
Housing and street improvements 20,559,221 20,559,221
Stormwater 1,832,039 1,832,039
Emergency medical services 1,220,792 1,220,792
Other 6,083,375 6,083,375
Capital projects 7,478,171 7,478,171
Debt service 165,543 165,543
Total Restricted Net Position 37,339,141 37,339,141
Unrestricted (196,824) 2,049,957 1,853,133 21,566,053
Total Net Position $227,428,592 $12,836,548 $240,265,140 $55,789,389
See accompanying notes to financial statements
23
CITY OF SAN RAFAEL
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2014
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General government $9,085,672 $2,838,940 $188,133
Public safety 43,800,158 6,014,034 1,165,545
Public works and parks 22,125,336 6,101,460 2,951,627 $762,719
Community development 3,451,244 3,279,251
Culture and recreation 11,846,818 6,417,003 392,837
Interest on long-term debt and fiscal charges 327,350
Total Governmental Activities 90,636,578 24,650,688 4,698,142 762,719
Business-type Activities
Parking services 4,125,476 4,485,394
Total Business-type Activities 4,125,476 4,485,394
Total Primary Government $94,762,054 $29,136,082 $4,698,142 $762,719
Component Unit
San Rafael Sanitation District $11,378,055 $13,732,496
General revenues:
Taxes:
Property
Sales
Paramedic
Transient occupancy
Franchise
Business license
Other
Investment earnings
Miscellaneous
Aid from other governmental agencies
Transfers (Note 3B)
Total general revenues and transfers
Change in Net Position
Net Position, beginning of year, as adjusted (Note 1N)
Net Position, end of year
See accompanying notes to financial statements
Program Revenues
24
Component
Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
($6,058,599)($6,058,599)
(36,620,579)(36,620,579)
(12,309,530)(12,309,530)
(171,993)(171,993)
(5,036,978)(5,036,978)
(327,350)(327,350)
(60,525,029)(60,525,029)
$359,918 359,918
359,918 359,918
(60,525,029) 359,918 (60,165,111)
$2,354,441
18,439,619 18,439,619 1,345,018
27,758,971 27,758,971
3,816,070 3,816,070
2,332,277 2,332,277
3,260,958 3,260,958
2,588,728 2,588,728
3,452,171 3,452,171
184,171 4,375 188,546 151,729
1,140,743 1,140,743
22,125
449,917 (449,917)
63,423,625 (445,542) 62,978,083 1,518,872
2,898,596 (85,624) 2,812,972 3,873,313
224,529,996 12,922,172 237,452,168 51,916,076
$227,428,592 $12,836,548 $240,265,140 $55,789,389
Primary Government
Net (Expenses) Revenues and Changes in Net Position
25
This Page Left Intentionally Blank
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 year 2013-2014.
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 SPECIAL REVENUE FUND
Established to maintain long-term developer contributions for major housing and street improvement
projects.
GAS TAX SPECIAL REVENUE FUND
Established to receive and expend the City’s allocation of the State gasoline taxes.
EQUIPMENT REPLACEMENT CAPITAL PROJECTS FUND
Established to provide for the replacement of vehicles and equipment.
27
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2014
Capital
Projects Fund
Traffic and Other Total
Housing Equipment Governmental Governmental
General Mitigation Gas Tax Replacement Funds Funds
ASSETS
Cash and investments available for operations (Note 2) $4,422,768 $12,521,107 $6,887,416 $5,009,889 $12,201,281 $41,042,461
Restricted cash and investments (Note 2)76,371 76,371
Receivables:
Accounts 2,014,927 36,967 726,641 2,778,535
Taxes 5,756,649 177,888 241,726 6,176,263
Grants 50,145 627,491 677,636
Interest 64,615 79 64,694
Loans (Note 4) 398,546 54,287 32,814 325,865 811,512
Long-term receivable from the
Successor Agency (Note 15) 1,779,324 1,779,324
Prepaids 104,792 8,719 113,511
Total Assets $14,541,621 $12,575,394 $7,152,416 $5,042,703 $14,208,173 $53,520,307
LIABILITIES
Accounts payable $3,064,081 $172,326 $165,120 $646,979 $4,048,506
Deposits payable 62,710 225,671 288,381
Developer deposits payable 402,190 85,737 487,927
Unearned revenue 343,442 343,442
Compensated absences:
Due in one year 270 270
Total Liabilities 3,528,981 172,326 165,120 1,302,099 5,168,526
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - SB90 reimbursement receivable 1,863,829 1,863,829
Unavailable revenue - long-term receivable from Successor Agency 1,779,324 1,779,324
Total Deferred Inflows of Resources 3,643,153 3,643,153
Fund Balances (Note 8):
Nonspendable 503,338 8,719 512,057
Restricted $12,575,394 6,980,090 10,629,580 30,185,064
Committed 661,361 1,524,464 2,185,825
Assigned 6,866,149 4,216,222 743,311 11,825,682
Total Fund Balances 7,369,487 12,575,394 6,980,090 4,877,583 12,906,074 44,708,628
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $14,541,621 $12,575,394 $7,152,416 $5,042,703 $14,208,173 $53,520,307
See accompanying notes to basic financial statements
Special Revenue Funds
28
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2014
Total fund balances reported on the governmental funds balance sheet $44,708,628
Amounts reported for Governmental Activities in the Statement of Net Position 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.189,861,961
Internal service funds are used by management to charge the cost of management of
(1,496,886)
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.(5,018,839)
Compensated absences (4,269,425)
Unavailable revenue 3,643,153
NNet position of governmental activities $227,428,592
See accompanying notes to financial statements
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 Position.
29
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2014
Capital
Projects Fund
Traffic and Other Total
Housing Equipment Governmental Governmental
General Mitigation Gas Tax Replacement Funds Funds
REVENUES
Taxes and special assessments $51,510,233 $5,175,909 $56,686,142
Licenses and permits 1,934,755 1,934,755
Fines and forfeitures 669,553 669,553
Use of money and properties 265,034 $22,882 $11,361 $7,804 56,008 363,089
Intergovernmental 6,703,119 3,516,270 1,733,919 11,953,308
Charges for services 2,124,933 191,217 933,095 2,721,722 13,978,366 19,949,333
Other revenue 1,075,311 4,025 43,768 103,469 818,834 2,045,407
Total Revenues 64,282,938 218,124 4,504,494 2,832,995 21,763,036 93,601,587
EXPENDITURES
Current:
General government 8,546,690 132,143 8,678,833
Public safety 35,138,757 6,762,005 41,900,762
Public works and parks 9,793,235 80,054 302,542 3,522,126 13,697,957
Community development 3,296,375 3,296,375
Culture and recreation 2,545,446 8,560,921 11,106,367
Capital outlay 42,016 1,543,875 569,009 2,154,900
Capital improvement / special projects 17,288 1,783,845 3,011,995 2,355,648 7,168,776
Debt service:
Principal 39,642 169,000 208,642
Interest and fiscal charges 279,605 47,745 327,350
Total Expenditures 59,699,054 80,054 3,630,262 3,011,995 22,118,597 88,539,962
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 4,583,884 138,070 874,232 (179,000) (355,561) 5,061,625
OTHER FINANCING SOURCES (USES)
Proceeds from PG&E loans (Note 6C) 568,481 568,481
Transfers in (Note 3A) 1,225,080 2,430,222 3,655,302
Transfers out (Note 3A) (2,498,336) (555,529) (3,053,865)
Total Other Financing Sources (Uses) (704,775) 1,874,693 1,169,918
Net Change in Fund Balances 3,879,109 138,070 874,232 (179,000) 1,519,132 6,231,543
FUND BALANCES, BEGINNING OF YEAR
AS ADJUSTED (NOTE 1N)3,490,378 12,437,324 6,105,858 5,056,583 11,386,942 38,477,085
FUND BALANCES, END OF YEAR $7,369,487 $12,575,394 $6,980,090 $4,877,583 $12,906,074 $44,708,628
See accompanying notes to financial statements
Special Revenue Funds
30
CITY OF SAN RAFAEL
Reconciliation of the
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2014
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $6,231,543
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 9,323,676
Non-capitalized capital outlay expenditures were reclassified to various governmental activities (5,463,081)
Depreciation expense is deducted from the fund balance (7,148,744)
Loss on retirement of capital assets is deducted from the fund balance (72,681)
Long-Term Debt Proceeds and Payments
Loan proceeds provide current financial resources to governmental funds. However, it increases long-term
(568,481)
208,642
Accrual of Non-Current Items
The amount below included in the Statement of Activities does not require the use of current financial resources
Interest payable 42,943
Compensated absences (1,544)
Unavailable revenue (539,718)
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.886,041
Change in Net Position of Governmental Activities $2,898,596
See accompanying notes to financial statements
and therefore is not reported as revenue or expenditures in governmental funds (net change):
liabilities in the Statement of Net Position.
Repayments on long-term debt principal are expenditures in the governmental
funds, but in the Statement of Net Position the repayments reduce long-term liabilities.
31
This Page Left Intentionally Blank
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, whether external or internal.
The City reports its only enterprise fund, as a major fund.
PARKING SERVICES FUND
Established to maintain parking garages, lots and spaces in the Downtown Parking District, and to pay for
parking enforcement and meter collection.
INTERNAL SERVICE FUNDS
Established to 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.
33
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2014
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
ASSETS
Current Assets:
Cash and investments available for operations (Note 2)$2,232,439 $12,247,443
Accounts receivable 24,778 264,813
Prepaids 105
Total Current Assets 2,257,217 12,512,361
Noncurrent Assets:
Net Pension Asset (Note 9C)1,000,000
Capital assets (Note 5):
Nondepreciable 8,620,853 953,153
Depreciable, net 8,413,977
Total Noncurrent Assets 17,034,830 1,953,153
Total Assets 19,292,047 14,465,514
LIABILITIES
Current Liabilities:
Accounts payable 65,722 44,495
Interest payable 51,597
Compensated absences, due in one year (Note 1K)15,267
Claims payable, due in one year (Note 13)2,079,523
Long-term debt, due in one year (Note 6)251,816
Total Current Liabilities 384,402 2,124,018
Noncurrent Liabilities:
Compensated absences (Note 1K)106,873
Claims payable (Note 13)4,510,183
Long-term debt (Note 6)5,996,423
Net OPEB liability (Note 11)9,296,000
Total Noncurrent Liabilities 6,103,296 13,806,183
Total Liabilities 6,487,698 15,930,201
NET POSITION (Note 8):
Net investment in capital assets 10,786,591 953,153
Restricted for:
Employee retirement 1,000,000
Unrestricted 2,017,758 (3,417,840)
Total Net Position 12,804,349 ($1,464,687)
Some amounts reported for business-type activities in the
Statement of Net Position are different because certain internal
service fund assets and liabilities are included with business-type
activities.32,199
Net position business-type activities $12,836,548
See accompanying notes to financial statements
34
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2014
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
OPERATING REVENUES
Charges for current services $2,445,411 $7,388,050
Other operating revenues 2,039,983 1,165,484
Total Operating Revenues 4,485,394 8,553,534
OPERATING EXPENSES
Personnel 2,077,639
Insurance premiums and claims 6,364,360
Maintenance and repairs 50,129 316,841
Depreciation (Note 5)314,419
General and administrative 1,473,876 857,510
Total Operating Expenses 3,916,063 7,538,711
Operating Income 569,331 1,014,823
NONOPERATING REVENUES (EXPENSES)
Investment income 4,375 23,388
Interest expense (210,063)
Total Nonoperating Revenues (Expenses)(205,688)23,388
Income Before Transfers 363,643 1,038,211
TRANSFERS IN (Note 3A)8,114 125,000
TRANSFERS OUT (Note 3A)(458,031) (276,520)
Change in Net Position (86,274) * 886,691
NET POSITION, BEGINNING OF YEAR, AS ADJUSTED (NOTE 1N )12,890,623 (2,351,378)
NET POSITION, END OF YEAR $12,804,349 ($1,464,687)
* Reconciliation of the Change in Net Position with the Statement of Activities
Change in Net Position ($86,274)
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.650
Change in Net Position of Business-type Activities ($85,624)
See accompanying notes to financial statements
35
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2014
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $2,445,411 $7,504,654
Cash payments to suppliers for goods and services (1,634,674) (7,406,922)
Cash payments to employees (2,064,413)
Other operating revenues 2,040,067 1,165,484
Payment to OPEB Trust (220,000)
Cash Flows from Operating Activities 786,391 1,043,216
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts 8,114 873,239
Interfund payments (458,031) (276,520)
Cash Flows from Noncapital
Financing Activities (449,917) 596,719
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Proceeds from loan payable 66,380
Principal payments on revenue bonds (248,819)
Interest expenses and fiscal charges (211,288)
Acquisition of capital assets (425,043) (953,153)
Cash Flows from Capital and
Related Financing Activities (818,770) (953,153)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 4,375 23,388
Cash Flows from Investing Activities 4,375 23,388
NET INCREASE IN CASH AND CASH EQUIVALENTS (477,921) 710,170
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 2,710,360 11,537,273
CASH AND CASH EQUIVALENTS, END OF YEAR $2,232,439 $12,247,443
Reconciliation of operating income to net cash
provided by operating activities:
Operating income $569,331 $1,014,823
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation 314,419
Net change in assets and liabilities:
Accounts receivable 84 116,604
Prepaids and deposits 6,879 7,506
Net OPEB liabilities (220,000)
Accounts payable (117,548) (550,074)
Compensated absence obligations 13,226
Claims payable 674,357
Net Cash Provided by Operating Activities $786,391 $1,043,216
See accompanying notes to basic financial statements
36
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 Position.
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY – PRIVATE PURPOSE
TRUST FUND
Established to account for the activities of the Successor Agency to the San Rafael Redevelopment
Agency.
PT. SAN PEDRO ROAD ASSESSMENT DISTRICT AGENCY FUND
Established to accumulate funds for payment of principal and interest for Pt. San Pedro Road Median
Landscaping Assessment District bonds.
37
CITY OF SAN RAFAEL
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2014
Successor Agency
to the
Redevelopment
Agency
Private-Purpose Agency
Trust Fund Funds
ASSETS
Cash and investments (Note 2) $1,368,251
Restricted cash and investments (Note 2) 1,364,458 $297,808
Receivable:
Taxes 3,155,038 1,210
Interest 392
Prepaids 570
Total Assets $5,888,709 $299,018
LIABILITIES
Accounts payable $18,561
Interest payable 38,065 $29,704
Other long-term obligations (Note 15D) 1,779,324
Due to bondholders 269,314
Long-term debt (Note 15C):
Due within one year 2,675,000
Due more than one year 23,923,469
Total Liabilities 28,434,419 $299,018
NET POSITION (DEFICIT)
Held in trust for private purpose ($22,545,710)
See accompanying notes to financial statements
38
CITY OF SAN RAFAEL
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2014
Successor Agency
to the
Redevelopment Agency
Private-Purpose
Trust Fund
ADDITIONS
Property taxes $3,153,201
Use of money and property 1,731
Bond premium 79,860
Other revenue 827,487
Total Additions 4,062,279
DEDUCTIONS
General government 446,030
Interest expense 1,097,697
Total Deductions 1,543,727
Change in Net Position 2,518,552
NET POSITION HELD IN TRUST FUND
FOR OTHER PURPOSES
Beginning of year (25,064,262)
End of year ($22,545,710)
See accompanying notes to financial statements
39
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
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 Joint Powers Financing Authority – The San Rafael Joint Powers Financing Authority
(Authority) was formed by the City of San Rafael and the former San Rafael Redevelopment
Agency (Agency) 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. On March
18, 2013, the Agency was replaced by the California Municipal Finance Authority (CMFA) in order
that the life of the Authority would extend beyond that of the Agency. The Authority is administered
by a governing board whose members are the City Council of the City of San Rafael.
As of June 30, 2014, the Authority had no assets or liabilities to report. For the fiscal year ended
June 30, 2014, the Authority had no revenues or expenditures to report. Separate financial
statements are not prepared for the Authority.
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 the San Rafael Sanitation District, 111
Morphew Street, San Rafael, California 94901.
41
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Basis of Presentation
Government-wide Statements - The Statement of Net Position 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-major funds.
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 and Other Reported 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 Special Revenue Fund – Established to maintain long-term
developer contributions for major housing and street improvement projects.
42
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Gas Tax Special Revenue Fund - Established to receive and expend the City’s allocation of the
State gasoline taxes.
Equipment Replacement Capital Projects Fund – Established to provide for the replacement
of vehicles and equipment.
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, and to pay for parking enforcement, meter collection, and downtown
enforcement services.
The City also reports the following fund types:
Internal Service Funds - These funds account for: building maintenance, employee benefits,
liability insurance, workers’ compensation, dental insurance, pension plan reserve, and retiree
health (OPEB).
Fiduciary Fund – These funds include: Successor Agency to the Redevelopment Agency Private-
Purpose Trust Fund – which accounts for the accumulation of resources held by the Successor
Agency to the Redevelopment Agency to be used for payments at appropriate amounts and times
in the future; Pt. San Pedro Road Assessment District Agency Fund – which accumulates funds
for the payment of principal and interest for Pt. San Pedro Road Median Landscaping District
bonds. The financial activities of these funds are excluded from the government-wide financial
statements, but are presented in the separate Fiduciary Fund financial statements.
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 with the exception of
sales and use tax revenues which are reported as available if collected within ninety days of 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.
43
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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 position 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.
G. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet will sometimes report a
separate section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until
then.
In addition to liabilities, the statement of financial position or balance sheet will sometimes report
a separate section for deferred inflows of resources. This separate financial statement element,
deferred inflows of resources, represents an acquisition of net position or fund balance that
applies to a future period(s) and so will not be recognized as an inflow of resources (revenue)
until that time. The City has only one item, which arises only under a modified accrual basis of
accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable
revenue, is reported only in the governmental funds balance sheet. The governmental funds
report unavailable revenues from three sources: taxes receivable, interest on interfund advances
and loans receivable. These amounts are deferred and recognized as an inflow of resources in the
period that the amounts become available.
44
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H Budgets, Budgetary Accounting, and Encumbrances
The City adopts an annual budget which is effective July 1 for the ensuing fiscal year. The budget
reflects estimated revenues and expenditures, except for the capital projects funds and the Peacock
Gap Assessment District Debt Service Fund. Appropriations and spending authorizations for
projects in the capital projects funds and some special revenue funds are approved by the City
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 in order to respond to emerging needs, changes in resources, or shifting priorities.
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 operating expenditures as well as any
appropriations for capital projects.
Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles for the
General Fund and Special Revenue Funds.
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.
I. 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.
J. 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 exceed
$5,000. The similar threshold for infrastructure is $25,000.
45
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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
K. 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. The long-term portion of governmental
activities compensated absences is liquidated primarily by the General Fund.
The changes of the compensated absences were as follows:
Governmental Business-Type
Activities Activities Total
Beginning Balance $4,267,881 $108,914 $4,376,795
Additions 3,633,575 104,538 3,738,113
Payments (3,631,761) (91,312) (3,723,073)
Ending Balance $4,269,695 $122,140 $4,391,835
Current Portion $533,712 $15,267 $548,979
46
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
L. Property Tax Levy, Collection and Maximum Rates
State of California Constitution Article XIII A provides that the combined maximum property tax
rate on any given property may not exceed 1% of its assessed value unless an additional amount for
general obligation debt has been approved by voters. Assessed value is calculated at 100% of market
value as defined by Article XIII A and may be adjusted by no more than 2% per year unless the
property is sold, transferred, or substantially improved. The State Legislature has determined the
method of distribution of receipts from a 1% tax levy among the counties, cities, school districts and
other districts. Marin County assesses properties, bills for and collects property taxes on the
schedule that follows:
Secured Unsecured
Valuation/lien dates January 1 January 1
Levy dates July 1 July 1
Due dates (delinquent as of) 50% on November 1 (December 10) July 1 (August 31)
50% on February 1 (April 10)
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
M. 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.
N. Prior Period Adjustments
During fiscal year 2013-2014, the City made the following prior period adjustments to some of
its fund balances as of June 30, 2013:
47
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1. Net Other Post Employment Benefits (OPEB) Obligation
a. The Net OPEB Obligation (NOO) was presented incorrectly in the financial
statements ending June 30, 2013. The City’s contributions to its 401(h) fund
(which served as its OPEB trust until June 2013) preceded the implementation of
GASB Statement No. 45 in fiscal year 2009. Therefore, these contributions were
not eligible contributions in the calculation of NOO, and the 401(h) balance
should not have been recorded as an asset in the internal service fund. This
adjustment does not impact the actuarial valuation of OPEB liability, nor does it
affect the actuarially required contribution (ARC), both of which were calculated
correctly.
2. Street maintenance activities have been recategorized to the General Fund.
a. The City had been reporting these funds in a Special Revenue Fund. The City has
determined that these funds are more appropriately reported in the General Fund.
3. Accrual of certain personnel expenses and tax revenues
a. The City adjusted its beginning balances to record a liability for payroll payable
as of June 30, 2013. This liability reflects expenses of the period from June 16 to
June 30, 2013, paid on July 15, 2013. In previous years, similar expenses were
recorded on a cash basis. The following funds are affected: General Fund, Traffic
and Housing Mitigation, Gas Tax, Equipment Replacement, Other Governmental
Funds (Public Safety, Grants, Stormwater, Emergency Medical Services, Library
Assessment, Household Hazmat Facility, and Telephone Replacement), Parking
Services, and Internal Service Funds (Employee Benefits, Liability Insurance,
Workers Compensation, and OPEB/Retiree Medical).
b. The City adjusted its beginning balances to record an asset for taxes receivable as
of June 30, 2013. This included sales and property taxes collected and earned in
fiscal year 2012-2013 for which payments were received in fiscal year 2013-
2014. In previous years, similar revenues were recorded on a cash basis.
4. Reporting changes for activities funded by outside sources
a. The City has chosen to recategorize the Camp Chance program from the General
Fund to the Public Safety Special Revenue Fund.
b. The City has chosen to recategorize the Library Donation program from the
General Fund to the Library Special Revenue Fund.
5. Governmental Accounting Standards Board (GASB) Statement No. 65 consistency of
prior year reporting
a. When the City issued the 2012 Authority Lease Revenue Refunding Bonds in
fiscal year 2012-2013, the cost of issuance was deferred in the Parking Services
Enterprise Fund. GASB Statement No. 65, which is being implemented in fiscal
year 2013-2014, requires these costs to be expensed when incurred. In order to
provide better comparability between the fiscal year 2013-2014 financial
statements and future financial statements, the City has accordingly adjusted the
fund balance at June 30, 2013.
48
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Summary of the adjustment are as follows:
Government-wide Financial Statements
Governmental Activities Net Position
As previously reported $240,154,521
Payroll liability ( 3a )(1,955,959)
Sales and Use Tax Receivables ( 3b )359,575
Net OPEB Obligation ( 1a )(14,028,141)
Beginning net position, as adjusted $224,529,996
Business-Type Activities Net Position
As previously reported $13,171,688
Payroll liability ( 3a )(72,855)
GASB 65 - Cost of Issuance for 2012 Bonds ( 5a )(176,661)
Beginning net position, as adjusted $12,922,172
Fund Level Financial Statements
General Fund
As previously reported $3,804,787
Payroll liability ( 3a )(1,250,967)
Sales and Use Tax Receivables ( 3b )359,575
Recategorize reporting for Camp Chance program to Public Safety Special Revenue Fund ( 4a ) (38,237)
Recategorize reporting for Library donation program to Library Special Revenue Fund ( 4b ) (18,068)
Recategorize funds previously reported in the Street Maintenance and Cleaning Special Revenue Fund ( 2a ) 633,288
Beginning fund balance, as adjusted $3,490,378
Traffic and Housing Mitigation Fund
As previously reported $12,440,041
Payroll liability ( 3a )(2,717)
Beginning fund balance, as adjusted $12,437,324
Gas Tax Fund
As previously reported $6,106,499
Payroll liability ( 3a )(641)
Beginning fund balance, as adjusted $6,105,858
Equipment Replacement Fund
As previously reported $5,065,918
Payroll liability ( 3a )(9,335)
Beginning fund balance, as adjusted $5,056,583
Other Governmental Funds
As previously reported $12,167,954
Payroll liability ( 3a )(204,029)
Move reporting for Camp Chance program to Public Safety Special Revenue Fund previously in General Fund ( 4a ) 38,237
Move reporting for Library donation program to Library Special Revenue Fund previously in General Fund ( 4b ) 18,068
Recategorize funds previously reported in the Street Maintenance and Cleaning Special Revenue Fund ( 2a ) (633,288)
Beginning fund balance, as adjusted $11,386,942
49
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Proprietary Fund - Parking Services Fund
As previously reported $13,140,139
Payroll liability ( 3a )(72,855)
GASB 65 - Cost of Issuance for 2012 Bonds ( 5a )(176,661)
Beginning fund balance, as adjusted $12,890,623
Proprietary Fund - Internal Service Funds
As previously reported $12,165,033
Payroll liability ( 3a )(488,270)
Net OPEB Obligation ( 1a )(14,028,141)
Beginning fund balance, as adjusted ($2,351,378)
NOTE 2 - CASH AND INVESTMENTS
A. Policies
The City maintains an investment policy that emphasizes safety, liquidity and reasonable market
yield. This policy is reviewed and approved by the City Council annually.
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.
50
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 2 - CASH AND INVESTMENTS
B. Classification
Cash and investments as of June 30, 2014, 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.
Statement of Net Position:
City of San Rafael:
Cash and investments available for operations $55,522,343
Restricted cash and investments 76,371
Total Primary Government Cash and Investments 55,598,714
San Rafael Sanitation District (Component Unit)
Cash and investments available for operations 21,802,809
Total San Rafael Sanitation District Cash and Investments 21,802,809
Statement of Fiduciary Net Position (separate statement):
Successor Agency to the Redevelopment Agency:
Cash and investments available for operations 1,368,251
Restricted cash and investments 1,364,458
Total Successor Agency Cash and Investments 2,732,709
Pt. San Pedro Road Assessment District Agency Fund 297,808
Total Fiduciary Cash and Investments 3,030,517
Total Cash and Investments $80,432,040
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.
51
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 2 - CASH AND INVESTMENTS (Continued)
C. Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s investment policy and the California Government Code allow the City to invest in the
following provided the credit ratings of the issuers are acceptable to the City, and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of
the California Government Code, or the City’s 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 N/A No limit No limit
U.S. Agency Securities and Instruments 5 years AAA No limit No limit
Repurchase Agreements 1 year A-1 No limit No limit
Prime Commercial Paper 270 days A-1 25% 10% of total outstanding
commercial paper
Bankers’ Acceptances 180 days A-1 40% $2,000,000
Medium-Term Corporate Notes 5 years A 30% 5% of portfolio
Negotiable Certificates of Deposit 5 years A-1 30% 5% of portfolio
Non-negotiable Certificates of Deposit 5 years N/A 30% 5% of portfolio
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 Bonds
related to Special Assessment Districts and
Special Tax Districts
30 years N/A N/A N/A
The San Rafael Sanitation District maintains all of its cash in the County of Marin pooled
investment fund for the purpose of increasing interest earnings through pooled investment
activities.
The County Pool includes both voluntary and involuntary participation from external entities.
The District is a voluntary participant. The State of California statutes require certain special
districts and other governmental entities to maintain their cash surplus with the County Treasurer.
The District has approved by resolution, the investment policy of the County of Marin which
complies with the California Government Code.
52
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
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
Maturity
U.S. Treasury Obligations 5 years to no
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
Bankers’ Acceptances 360 days Highest Category Rating No Limit
Money Market Funds N/A Highest Category Rating No Limit
Prime Commercial Paper 270 days Highest Category Rating No Limit
N/A Highest Category Rating No Limit
Municipal Obligations N/A Two Highest 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.
Maximum
Percentage of
Portfolio
Guaranteed Investment Contracts (fully
collateralized) (A)
Authorized Investment Type Minimum Credit Quality
53
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 2 - CASH AND INVESTMENTS (Continued)
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of
an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its
fair value to changes in market interest rates. The City also manages its interest rate risk by holding
most investments to maturity, thus reversing unrealized market gains and losses.
Information about the sensitivity of the fair values of the City’s investments (including investments
held by bond trustee) to market interest rate fluctuations is provided by the following table that
shows the distribution of the City’s investments by maturity or earliest call date:
12 Months 13 to 24 25 to 60 More than
Type of Investment or Less Months Months 60 Months Total
City and Fiduciary:
Money Market Mutual Funds $1,450,449 $1,450,449
Local Agency Investment Fund 31,397,521 31,397,521
U.S. Treasury Notes $2,755,403 2,755,403
U.S. Agency Securities and Instruments $500,410 3,014,455 3,514,865
Medium-Term Corporate Notes 1,040,465 1,040,465
Investment in Pt. San Pedro Bonds 55,900 58,800 195,500 $1,387,200 1,697,400
Total Investments $32,903,870 $559,210 $7,005,823 $1,387,200 41,856,103
Cash in banks and on hand 16,773,128
Total City and Fiduciary Cash and Investments 58,629,231
San Rafael Sanitary District:
Cash in banks and County Investment Pool 21,802,809
Total District's Cash and Investments 21,802,809
Total Cash and Investments $80,432,040
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The City reports its investment in LAIF at the fair value amount provided by LAIF,
which is the same as the value of the pool share. The balance is available for withdrawal on
demand, and is based on the accounting records maintained by LAIF, which are recorded on an
amortized cost basis. Included in LAIF’s investment portfolio are collateralized mortgage
obligations, mortgage-backed securities, other asset-backed securities, loans to certain state
funds, and floating rate securities issued by federal agencies, government-sponsored enterprises,
United States Treasury Notes and Bills, and corporations. At June 30, 2014, these investments
matured in an average of 232 days.
Money Market Mutual Funds are available for withdrawal on demand. The investment portfolio
of the Money Market Mutual Fund had an average maturity of 24 days at June 30, 2014.
54
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 2 - CASH AND INVESTMENTS (Continued)
The County’s investment pool is not registered with the Securities and Exchange Commission as
an investment company. The pool has a credit rating of “AAA/V1.” Investments made by the
Treasurer are regulated by the California Government Code and by the County’s investment
policy. The objectives of the policy are in order of priority, safety, liquidity, yield, and public
trust. The County has established a treasury oversight committee to monitor and review the
management of public funds maintained in the investment pool in accordance with Article 6
Section 27131 of the California Government Code. The oversight committee and the Board of
Supervisors review and approve the investment policy annually. The County Treasurer prepares
and submits a comprehensive investment report to the members of the oversight committee and
the investment pool participants every month. The report covers the types of investments in the
pool, maturity dates, par value, actual costs and fair value. At June 30, 2014 the County’s
investment pool had a weighted average maturity of 264 days.
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, 2014, 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 AA- AA+ Aaa/AAA Total
City and Fiduciary:
Money Market Mutual Funds $1,450,449 $1,450,449
U.S. Agency Securities and Instruments $3,514,865 3,514,865
Medium-Term Corporate Notes $512,915 527,550 1,040,465
Total rated investments $512,915 $4,042,415 $1,450,449 6,005,779
Not rated:
Local Agency Investment Fund 31,397,521
U.S. Treasury Notes 2,755,403
Investment in Pt. San Pedro Bonds 1,697,400
Cash in banks and on hand 16,773,128
Total City and Fiduciary Cash and Investments 58,629,231
San Rafael Sanitary District:
Not rated:
Cash in banks and County Investment Pool 21,802,809
Total District's Cash and Investments 21,802,809
Total Cash and Investments $80,432,040
G. Concentration Risk
The City’s investments with any one issuer that are greater than five percent of the total
investments are in either an external investment pool or mutual funds and are therefore exempt.
55
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 3 - INTER-FUND TRANSACTIONS
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, and operating expenses.
Transfers between funds during the fiscal year ended June 30, 2014, were as follows:
From Fund To Fund Amount
General Fund Non-Major Governmental Funds $2,365,222 ( A )
Parking Services Enterprise Fund 8,114 ( B )
Internal Service Fund 125,000 ( C )
Non-Major Governmental Funds General Fund 555,529 ( D )
Internal Service Funds General Fund 276,520 ( D )
Parking Services Enterprise Fund General Fund 393,031 ( D )
Non-Major Governmental Funds 65,000 ( A )
$3,788,416
( A ) Transfers to the Non-Major Governmental Funds were for administrative costs, program support,
capital projects, and grant matching.
( B ) Transfer to Parking Services was for utility rebate due to that fund from a previous period.
( C ) Transfer to the Building Maintenance Internal Service Fund was for miscellaneous facility repairs.
( D ) Transfers to the General Fund were for the purpose of reimbursing administrative costs, fire
dispatch costs, and debt service.
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.
NOTE 4 – LOANS RECEIVABLE
A. Summary of Loans Receivable
The City has identified the portion of fund balance represented by these loans as nonspendable as
discussed in Note 8. At June 30, 2014, these loans totaled:
Employee Loans $1,822
Centertown Associates 223,365
One "H" Street Associates 54,287
Fire Chief Loan 396,724
Marin Housing Authority 102,500
Town of Ross 32,814
Total $811,512
56
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 4 – LOANS RECEIVABLE (Continued)
B. Employee Loans
The City administers a computer loan program that supports the use of technology by employees.
Employees are permitted to borrow up to $1,500 for the purchase of computer hardware and software.
The loans are interest-free, have maximum terms of one year, and are repaid through automatic
payroll deductions.
C. Centertown Associates Loan
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. As of June 30, 2014, the balance of the loan was $223,365.
D. One “H” Street Associates Loan
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 final payment due January 18, 2034.
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, 2014, the balance of the loan
was $396,724.
F. Marin Housing Authority Loans
On May 17, 2012, the former Redevelopment Agency and the City, as Housing Successor to the
Redevelopment Agency, loaned Marin Housing Authority $165,000, at zero percent interest for the
purchase of a low and moderate income unit. With the dissolution of the Redevelopment Agency
effective February 1, 2012, the assets of the Redevelopment Agency Low and Moderate Income
Housing fund, including this Marin Housing Authority loan, was assumed by the City’s Low and
Moderate Income Housing Special Revenue fund. On February 6, 2013, the City loaned Marin
Housing Authority an additional $235,000 at zero percent interest for the purchase of another low and
moderate income unit. Both Loans were repaid in fiscal year 2013-2014.
On May 15, 2014, the City made a new loan of $102,500 to Marin Housing Authority for a low and
moderate income unit. As with other loans made under this program, this loan becomes due upon the
sale of the unit.
57
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 4 – LOANS RECEIVABLE (Continued)
G. Town of Ross Loan
In September 2013, the City Council authorized the sale of a police vehicle to the Town of Ross. The
terms of the sale included a total sales price of $39,614 to be paid in installment payments. The first
installment in the amount of $6,800 was paid in October 2013, upon the execution of the note, leaving
a balance of $32,814 as of June 30, 2014. Additional payments of $10,938 will be due on November
1, 2014, 2015, and 2016.
NOTE 5 - CAPITAL ASSETS
Changes in capital assets during the fiscal year consisted of:
Balance Balance
June 30, 2013 Additions Retirements Transfers June 30, 2014
Governmental Activities
Capital assets not being depreciated:
Land $82,464,364 $82,464,364
Construction in progress 2,547,610 $2,621,479 ($10,378) ($2,857,743) 2,300,968
Total capital assets not being depreciated 85,011,974 2,621,479 (10,378) (2,857,743) 84,765,332
Capital assets being depreciated:
Land improvements 8,788,985 8,788,985
Buildings and structures 40,321,544 (22,003)40,299,541
Machinery and equipment 16,920,645 2,012,967 (916,877) 85,116 18,101,851
Infrastructure 181,556,030 179,302 2,772,627 184,507,959
Total capital assets being depreciated 247,587,204 2,192,269 (938,880) 2,857,743 251,698,336
Less accumulated depreciation for:
Land improvements (4,987,622) (272,351)(5,259,973)
Buildings and structures (13,497,200) (1,204,682)(14,701,882)
Machinery and equipment (12,969,169) (977,577) 876,577 (13,070,169)
Infrastructure (107,922,396) (4,694,134)(112,616,530)
Total accumulated depreciation (139,376,387) (7,148,744) 876,577 (145,648,554)
Total net capital assets being depreciated 108,210,817 (4,956,475) (62,303) 2,857,743 106,049,782
Total governmental activity capital assets $193,222,791 ($2,334,996) ($72,681)$190,815,114
58
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 5 - CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2013 Additions Retirements Transfers June 30, 2014
Business-type Activities
Capital assets not being depreciated:
Land $8,620,853 $8,620,853
Construction in process $385,550 ($385,550)
Total capital assets not being depreciated 8,620,853 385,550 (385,550) 8,620,853
Capital assets being depreciated:
Buildings and structures 10,328,264 385,550 10,713,814
Machinery and equipment 1,139,277 39,493 1,178,770
Total capital assets being depreciated 11,467,541 39,493 385,550 11,892,584
Less accumulated depreciation for:
Buildings and structures (2,274,056) (209,814)(2,483,870)
Machinery and equipment (890,132) (104,605)(994,737)
Total accumulated depreciation (3,164,188) (314,419)(3,478,607)
Total net capital assets being depreciated 8,303,353 (274,926)385,550 8,413,977
Total business-type activity capital assets $16,924,206 $110,624 $17,034,830
Balance Transfers & Balance
June 30, 2013 Additions Retirements Adjustments June 30, 2014
San Rafael Sanitation District
Capital assets not being depreciated:
Land and easements $115,329 $115,329
Construction in progress 244,720 $1,712,119 ($1,578,879) 377,960
Total capital assets not being depreciated 360,049 1,712,119 (1,578,879) 493,289
Capital assets being depreciated:
Subsurface lines 20,411,490 283,960 1,564,822 22,260,272
Sewage collection facilities 36,749,373 ($119,102) 14,057 36,644,328
General plant and administration 1,193,751 241,729 1,435,480
Total capital assets being depreciated 58,354,614 525,689 (119,102) 1,578,879 60,340,080
Less accumulated depreciation for:
Subsurface lines (9,569,621) (379,594)(9,949,215)
Sewage collection facilities (15,254,347) (827,501) 119,102 (15,962,746)
General plant and administration (549,803) (148,269)(698,072)
Total accumulated depreciation (25,373,771) (1,355,364) 119,102 (26,610,033)
Total net capital assets being depreciated 32,980,843 (829,675)1,578,879 33,730,047
Total District's capital assets $33,340,892 $882,444 $34,223,336
59
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 5 - CAPITAL ASSETS (Continued)
Capital Asset Contributions - Some capital assets may have been acquired using Federal and State
grant funds, or were contributed by developers or other governments. These contributions are
accounted for as revenues at the time the capital assets are contributed.
Depreciation Allocation - Depreciation expense is charged to functions and programs based on
their usage of the related assets. The amounts allocated to each function or program are as
follows:
Governmental Activities
General government $164,792
Public safety 765,194
Public works and parks 5,418,051
Community development/redevelopment 43,945
Culture and recreation 756,762
Total Governmental Activities $7,148,744
Business-type Activities
Parking services $314,419
Total Business-type Activities $314,419
NOTE 6 – LONG TERM DEBT
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.
A summary of governmental and business-type activities transactions for the fiscal year ended
June 30, 2014, are as follows:
Authorized Balance Balance Current
and Issued June 30, 2013 Additions Retirements June 30, 2014 Portion
Governmental Activities:
2010 Taxable Pension Obligation Bonds
6.00%-6.25%, due 7/1/2025 $4,490,000 $4,490,000 $4,490,000
Total Pension Obligation Bonds 4,490,000 4,490,000
Ground Lease Note Payable,
8.00%, due 11/1/2024 169,000 169,000 $169,000
PG & E City Hall HVAC Retrofit Note Payable 334,585 $334,585 22,187 312,398 $33,280
0.00%, due 11/30/2023
PG & E Street Light Retrofit Note Payable 233,896 233,896 17,455 216,441 41,892
0.00%, due 8/31/2019
Total Governmental Long-term Debt $4,659,000 $568,481 $208,642 $5,018,839 $75,172
Business-type Activities
PG & E Parking Lot Lighting Retrofit Note Payable $66,380 $66,380 $4,544 $61,836 $6,816
0.00%, due 11/30/2023
2012 Authority Lease Revenue Refunding Bonds
2.00-4.00%, due 4/1/2033 6,750,000 $6,445,000 245,000 6,200,000 245,000
Less: unamortized bond discount (14,322) * (725) (13,597)
Total Enterprise Fund Debt $6,430,678 * $66,380 $248,819 $6,248,239 $251,816
*The balances as of June 30, 2013 have been adjusted to reflect the requirements of GASB Statement No. 65.
60
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 6 - LONG-TERM DEBT (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 on 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 1x26 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. The Note was repaid in full in fiscal year
2013-2014.
C. Pacific Gas and Electric Note Payable
On September 30, 2013, the City executed a note payable agreement with Pacific Gas and
Electric (PG&E) in the amount of $634,861, bearing no interest. The debt was assumed as a
means to finance energy-efficient retrofit projects which include updating existing heating,
ventilation and air conditioning (HVAC) unit in City Hall and converting the street and parking
lot light to light emitting diode (LED). $334,585 of the loan is for the HVAC projects and
$300,276 of the loan is for the LED projects. Repayment of the loan commenced in December
2013, and is due monthly until paid in full in 2023.
D. 2012 Authority Lease Revenue Refunding Bonds
On August 7, 2012, the Authority issued 2012 Authority Lease Revenue Refunding Bonds in the
amount of $6,750,000 bearing interest at rates from 2.00% to 4.00%. The proceeds of the Series
2012 Bonds were used to repay the Authority’s 2003 Authority Lease Revenue Bonds that
financed the construction of the 3rd and C Street parking structure and achieved lower interest
rates and lower annual debt service payments. The refunding resulted in a net present value
savings to the City in debt service of $670,496. In addition, the requisition price exceeded the net
carrying amount of the old debt by $295,278. The Series 2012 Bonds are payable from lease
payments made by the City to the Authority for leasing the City facilities. Principal payments are
due annually on April 1 and interest payable semiannually on October 1 and April 1. The bonds
are payable from revenues consisting primarily of certain Base Rental payments payable by the
City of San Rafael. The Bonds maturing on or prior to April 1, 2022 are not subject to optional
redemption prior to their maturity. The Bonds maturing on or after April 1, 2023 are subject to
optional redemption as a whole or in part on any date after April 1, 2022 at the option of the
Authority, at a redemption price equal to the principal amount of the Bonds subject to
redemption, plus accrued interest to the date fixed for redemption, without premium.
61
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 6 - LONG-TERM DEBT (Continued)
E. Future Debt Service
Future debt service requirements, including interest, at June 30, 2014, are as follows:
For the Year Governmental Activities Business-type Activities
Ended June 30 Principal Interest Principal Interest
2015 $75,172 $276,512 $251,816 $206,388
2016 75,172 276,512 256,816 201,488
2017 175,172 273,512 266,816 193,988
2018 280,172 264,362 276,816 186,188
2019 495,172 245,612 281,816 178,088
2020 - 2024 2,677,979 798,442 1,532,756 761,590
2025 - 2029 1,240,000 78,756 1,750,000 507,518
2030 - 2033 1,645,000 164,400
Totals $5,018,839 $2,213,708 $6,261,836 $2,399,648
Reconciliation of Long-term debt:
Less: unamortized discount (13,597)
$6,248,239
NOTE 7 – DEBT WITHOUT CITY COMMITMENT
The City has sponsored the issuance of the following debt, for which the City is not liable for
repayment but acts as an agent for the property owners and bondholders:
Project Original Outstanding
Description Amount June 30, 2014
San Rafael Redevelopment Agency 162-175 Belvedere
Multifamily Housing Revenue Bonds-2000A Apartments $3,590,529 $1,193,972
California Statewide Communities
Development Authority Revenue Bonds-2002 St. Marks School 5,605,000 4,320,000
San Rafael Redevelopment Agency
Variable Rate Demand Multifamily 55 Fairfax
Housing Revenue Bonds-2001A Apartments 3,000,000 2,500,000
San Rafael Redevelopment Agency San Rafael Commons
Multifamily Housing Revenue Bonds-2001 Apartments 6,100,000 5,185,000
City of San Rafael Kaiser Foundation
Variable Rate Revenue Bonds-2001 Series B Hospitals 75,000,000 75,000,000
Variable Rate Revenue Bonds-2001 Series C 200,000,000 120,630,000
San Rafael Redevelopment Agency Martinelli House
Multifamily Housing Revenue Bonds-2007 Series A Project 6,000,000 2,071,847
Multifamily Housing Revenue Bonds-2007 Series B Martinelli House 1,000,000 245,218
Pt. San Pedro Road Median Landscaping Pt. San Pedro Road 1,750,000 1,697,400
Assessment District Limited Obligation Bonds-2012 Median Landscaping
62
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 8 – NET POSITION AND FUND BALANCE
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflow over all its liabilities, and
deferred inflows regardless of fund. Net Position is divided into three captions. These captions apply
only to Net Position, which is determined only at the Government-wide level and business type
activity and are described below:
Net Investment in Capital Assets describes the portion of Net Position 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 Position 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.
Unrestricted describes the portion of Net Position which is not restricted to use.
B. Fund Balance
In the fund financial statements, fund balances represent the net current assets of each fund. Net
current assets generally represent a fund’s cash and receivables, less its liabilities. 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 resolution of the City Council which may be
altered only by resolution of the City Council. Encumbrances and nonspendable amounts subject to
council commitments are included along with spendable resources.
63
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
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 Manager as
designated by the City Council and may be changed at the discretion of the City Council or City
Manager. This authorization is given through Resolution No. 13173 which adopts the City’s Fund
Balance Policy. 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
Detailed classifications of the City’s fund balances, as of June 30, 2014, are below:
Special Revenue Funds Capital Projects
General Fund
Traffic and
Housing
Mitigation Gas Tax
Equipment
Replacement
Other
Governmental
Funds Total
Fund balances:
Nonspendable:
Loans receivable $398,546 $398,546
Prepaids 104,792 $8,719 113,511
Total Nonspendable 503,338 8,719 512,057
Restricted for:
Assessment District capital projects 300,338 300,338
Baypoint Lagoons Assessment District 215,380 215,380
Bedroom tax capital projects 32,475 32,475
Business improvement 3,484 3,484
Childcare 534,119 534,119
Development services 949,178 949,178
Emergency medical services 1,212,073 1,212,073
1997 financing authority revenue bonds debt service 146,095 146,095
Gas tax $6,980,090 6,980,090
Grants 960,991 960,991
Household hazmat facility 267,980 267,980
Library 194,196 194,196
Library assessment 626,488 626,488
Loch Lomond Assessment District 654,275 654,275
Low and Moderate Income Housing 1,003,737 1,003,737
Mariposa Assessment District debt service 16,573 16,573
Measure A Open Space 245,215 245,215
Parkland dedication 887,066 887,066
Peacock Gap Assessment District debt service 2,875 2,875
Public safety 200,121 200,121
Pt. San Pedro - Maintenance Portion 178,700 178,700
Recreation revolving 134,686 134,686
Sewer Maintenance 31,496 31,496
Storm water 1,832,039 1,832,039
Traffic and housing mitigation $12,575,394 12,575,394
Total Restricted 12,575,394 6,980,090 10,629,580 30,185,064
(Continued)
64
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
Special Revenue Funds Capital Projects
General Fund
Traffic and
Housing
Mitigation Gas Tax
Equipment
Replacement
Other
Governmental
Funds Total
Committed to:
Capital improvement capital projects 1,504,723 1,504,723
Equipment replacement capital projects 661,361 661,361
Park capital projects 19,741 19,741
Total Committed 661,361 1,524,464 2,185,825
Assigned to:
Emergency and cash flow 5,119,456 5,119,456
Equipment replacement capital projects 4,216,222 4,216,222
General plan / long range planning 855,693 855,693
Measure E - Public Safety Facility 891,000 891,000
Open space capital projects 127,029 127,029
Park capital projects 3,096 3,096
Radio replacement capital projects 391,931 391,931
Telephone replacement capital projects 221,255 221,255
Total Assigned 6,866,149 4,216,222 743,311 11,825,682
Total Fund Balances $7,369,487 $12,575,394 $6,980,090 $4,877,583 $12,906,074 $44,708,628
NOTE 9 – EMPLOYEES RETIREMENT PLAN
A. Plan Description
The City’s retirement plan is administered by the Marin County Employees’ Retirement Association
(Association). All full-time and regular part-time employees who work at least 75% of a full time
position are eligible to participate.
The Association is a multiple-employer retirement system governed by the 1937 Act of the California
Government Code. The Association acts as a common administrative and investment agent for defined
benefit retirement plan 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. Copies of the Association’s annual financial reports,
which include required supplementary information for each plan may be obtained from the Marin
County Employees’ Retirement Association, One McInnis Parkway, Suite 100, San Rafael, California
94903.
65
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 9 – EMPLOYEES RETIREMENT PLAN (Continued)
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 plan benefits when due. The City
contribution rates for the year ended June 30, 2014 were as follows:
City of San Rafael Misc Tier 1 46.91%
City of San Rafael Misc Tier 2 43.38%
City of San Rafael Fire Tier 1 72.93%
City of San Rafael Fire Tier 2 68.64%
City of San Rafael Safety Police Tier 1 71.69%
City of San Rafael Safety Police Tier 2 77.87%
PEPRA Misc 42.01%
PEPRA Safety 65.19%
C. Annual Pension Cost
The annual required contribution was determined as part of the actuarial valuation performed as of
June 30, 2012. The employer rates for normal cost are 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 2012 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 1.6%. 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 uses a 17-year level percentage, open method to amortize the
unfunded actuarial liability. 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 Annual APC Pension
June 30 (APC) Contribution Contributed Obligation (Asset)
2012 $14,627,709 $14,627,709 100% $0
2013 15,522,832 16,522,832 106% (1,000,000)
2014 17,576,796 17,576,796 100% (1,000,000)
The Plans’ actuarial value (which differs from market value) and funding progress over the most recent
three years available is set forth below at their actuarial valuation date of June 30:
Actuarial Excess Excess (Deficit)
Actuarial Actuarial Accrued (Deficit)Assets Over AAL
Valuation Value Liability (AAL) Assets Funded Covered As a % of
Date of Assets Entry Age Over AAL Ratio Payroll Payroll
6/30/11 $258,963,000 $412,743,000 ($153,780,000) 63% $31,692,000 (485%)
6/30/12 267,317,000 437,785,000 (170,468,000) 61% 31,182,000 (547%)
6/30/13 286,344,000 447,641,000 (161,297,000) 64% 31,429,000 (513%)
66
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 9 – EMPLOYEES RETIREMENT PLAN (Continued)
D. Public Employees’ Pension Reform Act (PEPRA)
Assembly Bill 340 (AB 340) created the Public Employees’ Pension Reform Act (PEPRA) that
implemented new benefit formulas and final compensation periods, as well as new contribution
requirements for new employees hired on or after January 1, 2013, who meet the definition of new
member under PEPRA.
The table below provides the details of the new provisions.
Miscellaneous Safety
Benefit Formula 2.0 % @ 62 2.7% @ 57
Final Compensation
Period
Average of the highest 3
years
Average of the highest 3
years
67
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 10 - PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION
RETIREMENT PLANS)
The City contributes to the Public Agency Retirement System (PARS), which administers 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 benefits a participant will receive depend on the amount contributed
to the participant’s account, and the returns earned on investments on those contributions. The Plan’s
trust administrator is Phase II, P.O. Box 12919, Newport Beach, California 92658.
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 $79,754. The total covered payroll of
employees participating in the plan for the year ended June 30, 2014, was $2,126,773. The total payroll
for the year was $36,714,626.
Additionally, the City participates in a 401(a) tax qualified plan for eligible executive management and
mid-management employees, and elected officials. This program is separate from the Marin County
Employees’ Retirement Association. Under this plan, the percent amount of contribution which can
range from 3% to 4.6% of base salary of participating employees. During the year, the City contributed
$212,849 to the plan on behalf of these employees.
68
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS
The City provides certain health care benefits for retired employees and their spouses. The benefit
provisions were established under the authority of the 1937 Act, Section 31450, et. seq. of the
Government Code. Employees who meet the vesting criteria become eligible for these benefits if they
receive a retirement benefit from the Marin County Employees’ Retirement Association within 120
days of retirement from City employment. At June 30, 2014, 325 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,
2014, are summarized as follows:
Elected Officials, Mid-Management, &
Unrepresented Management All other Bargaining Units
Eligibility
- Age 50 (age 55 if hired >7/1/11) with 10 years services (Including reciprocity) OR
-
- Disability Retirement
Benefit Hired ≤ 1/1/09 Full premium/cap Hired ≤ 1/1/10 Up to cap
Hired > 1/1/09 PEMHCA Min Hired > 1/1/10 PEMHCA Min
Surviving Spouse Benefit Continuation to surviving spouse
Medicare Part B Hired < 4/1/07 Full reimbursement None
Hired ≥ 4/1/07 None
Other No Dental, Vision, or Life Benefits
Retire directly from the City:
30 years service (Miscellaneous), 20 years service (Safety) OR
Funding Policy and Actuarial Assumptions
The City’s funding policy requires a minimum annual contribution equivalent to the annual required
contribution (ARC).
The 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 the
years starting 2021. In addition, the fixed dollar benefit amounts are assumed to be held flat in the
future and the premium related benefits are assumed to increase with the healthcare trend rate.
69
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
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 in its June 30, 2011 actuarial valuation, and a 21-year fixed (closed)
period for June 30, 2014 in its June 30, 2013 actuarial valuation.
Funding Progress and Funded Status
During the fiscal year ended June 30, 2014, the City has recorded a Net OPEB Liability in the
Statements of Net Position, representing the difference between the ARC and actual contributions, as
presented below. The Net OPEB Liability was adjusted at June 30, 2013. The purpose of this
adjustment was to correct the calculation of contributions eligible to offset the ARC in determining
the Net OPEB Obligation. Additional information is provided in Note 1 to these financial statements.
Amounts
(in thousands)
Annual required contribution (ARC) $2,496
Interest on net OPEB obligation 704
Adjustment to annual required contribution (820)
Annual OPEB cost 2,380
Contributions made:
Benefits payment 2,100
Additional contribution to OPEB Trust 500
Total contributions 2,600
Change in net OPEB obligation/(asset)(220)
Net OPEB Obligation (Asset) at June 30, 2013, as adjusted 9,516
Net OPEB Obligation (Asset) at June 30, 2014 $9,296
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 to and withdrawals from a 401(h) account held and administered by the
MCERA were made by the City in prior years and included in actuarial valuations prior to June 30,
2013. On June 25, 2013, the assets were transferred from the 401(h) account to an irrevocable trust
under the California Employers’ Retiree Benefit Trust Fund (CERBT) managed by CalPERS. As of
June 30, 2014, the account balance in the CERBT was $15,492,266.
70
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
For the fiscal year ended June 30, 2014, 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 (Asset)
Ended (000's omitted) (000's omitted) (000's omitted) Contributed (000's omitted)
June 30, 2012 $2,312 $3,233 $2,124 66%$9,594
June 30, 2013 2,434 2,495 2,573 103%9,516
June 30, 2014 2,496 2,380 2,600 109%9,296
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, 2013, actuarial study is presented below:
Overfunded
(Underfunded)
Actuarial Actuarial
Unfunded Annual Liability as
Value of Accrued Accrued Covered a Percentage of
Valuation Assets Liability Liability Funded Payroll Covered
Date (000's omitted) (000's omitted) (000's omitted) Ratio (000's omitted) Payroll
6/30/2009 $12,773 $56,262 ($43,489) 23%$35,401 (123%)
6/30/2011 10,861 35,156 (24,295) 31%31,692 (77%)
6/30/2013 12,505 33,549 (21,044) 37%31,429 (67%)
71
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS
The City participates in the jointly governed organizations discussed below through formally organized
and separate entities established under the Joint Exercise of Powers Act of the State of California. As
separate legal entities, these entities exercise full powers and authorities within the scope of the related
Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the
power to make and execute contracts and the right to sue and be sued. Each joint organization is
governed by a board consisting of representatives from member municipalities. Each board controls the
operations of the respective joint organization, including selection of management and approval of
operating budgets, independent of any influence by member municipalities beyond their representation
on that board. Obligations and liabilities of this joint organization are not the City’s responsibility and
the City does not have an equity interest in the assets of each joint organization except upon dissolution
of the joint organization.
A. The Marin County Integrated On-Line Library System (System)
The MARINet Library Consortium was formed to provide for the procurement, ownership, operation,
maintenance, and governance of shared library services among the libraries, public and academic, in
Marin County. Current services shared and paid for on a consortial level through annual membership
dues include an integrated library system including patron database, cataloging system, and online
catalog of materials; delivery of items between libraries in Marin, a statewide library delivery service
called Link+, numerous online resources, and more. 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 annual
operating costs is 16.40 % or $193,729 for the year ended June 30, 2014. Financial statements of the
System can be obtained from the County Librarian, Marin County Free Library, Marin County Civic
Center, 3501 Civic Center Drive, San Rafael, California 94903.
B. The Marin General Services Authority (MGSA)
The MGSA was formed by the County of Marin and twelve local agencies to acquire street light
facilities, operate the facilities during an eminent domain action against PG&E, and coordinate 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.
MGSA services now include street light maintenance, abandoned vehicle abatement, taxicab
regulation and administrative responsibility for MarinMap. The City’s contribution to MGSA was
$3,102 for the year ended June 30, 2014. Financial statements of the MGSA can be obtained at 555
Northgate Drive, Suite 230, San Rafael, California 94903.
72
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
C. The Marin Emergency Radio Authority (MERA)
MERA was formed on February 28, 1998, by the County of Marin and 25 local agencies within the
County to plan, finance, implement, manage, own, and operate a County-wide public safety and
emergency radio system. The Governing Board consists of one representative from each member.
On February 1, 1999, the Authority issued the 1999 Revenue Bonds in the amount of $26,940,000
with interest rates ranging from 4.75% to 5.01%, maturing on August 15, 2016, to finance the
acquisition and installation of the system. The costs of maintenance, operation, and debt service are
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 $278,969 of the Authority’s operation and debt service for the fiscal year ended
June 30, 2014. 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 95 Rowland Way, Novato,
California 94945.
D. The Countywide Planning Agency
The Agency was established on October 16, 1990, by the County of Marin and the cities of
Belvedere, Corte Madera, Fairfax, Larkspur, Mill Valley, Novato, Ross, San Anselmo, San Rafael,
Sausalito, and Tiburon 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 $85,516 for the year ended June 30, 2014. Financial
statements of the Agency can be obtained at 555 Northgate Drive, Suite 230, San Rafael, California
94903.
F. The Marin County Hazardous and Solid Waste Joint Powers Authority
The Authority was established by the County, local cities, and waste franchising districts to finance,
prepare and implement source reduction and recycling elements on a county-wide integrated waste
management plan as required by State Assembly Bill 939. The City’s contribution to the Authority
was $15,843 for the year ended June 30, 2014. Financial statements of the Authority can be obtained
at 3501 Civic Center Drive, San Rafael, California 94903.
73
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
G. Regional Government Services and Local Government Services
Regional Government Services (RGS) and Local Government Services (LGS) were established in
2001 to provide administrative, support and staffing services to other California public agencies.
RGS and LCS help their clients address the increasing demand for local services with limited
revenues and assist with the recruitment and retention of key employees. The members are the cities
of Dublin, Larkspur and San Rafael, the town of Yountville and the Association of Bay Area
Governments (ABAG). Each agency’s chief executive officer appoints a seat on the Board of
Directors for RGS and on the Board of Directors for LGS. Financial statements of LGS and RGS can
be obtained at P.O. Box 1350, Carmel Valley, CA. 93924
NOTE 13 - RISK MANAGEMENT
The City is exposed to various exposures related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City established the Risk
Management Internal Service Fund to account for and finance its uninsured risks of loss. The City
manages risk by participating in a public entity risk pool (described below), purchasing insurance and
by retaining certain risks.
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 purpose of CJPRMA is to spread the adverse
effects of general liability losses among the member agencies. The City also purchases commercial
insurance for property damage claims with an insured amount of $99,236,049. 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, 2014, the City contributed $228,801 for
coverage during the current year and received a refund of $80,692 of prior year excess contributions.
Five years after settlement of all claims for a program year, CJPRMA retroactively adjusts premium
deposits for any excess or deficiency in deposits related to paid claims and reserves. CJPRMA
refunds excess contributions to members from time to time, based on the results of actuarial studies
of each program year’s claims experience. Financial statements for the risk pools may be obtained
from CJPRMA at 3201 Doolan Road, Suite 285, Livermore, California 94551.
74
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 13 - RISK MANAGEMENT (Continued)
Workers’ Compensation Coverage
The City purchases 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 $1,000,000 for each worker’s compensation claim.
B. Insurance Internal Service Funds and Financial Reporting
The City records estimated liabilities for claims filed up to the amounts for which it retains risk in the
General Liability and Workers Compensation Internal Service Funds. Charges to the General Fund
and other funds are based on relative general liability and workers compensation risk associated with
the activities of each fund. Charges are recorded in the funds as expenditures or expenses and as
revenues in the respective 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 Statements of Net Position. The
liability is based on an actuarial valuation prepared as of June 30, 2014:
General Workers' Totals, as of June 30
Liability Compensation 2014 2013
Balance, beginning of year $1,102,787 $4,812,562 $5,915,349 $7,299,362
Current year claims and changes
in estimates 567,100 1,978,491 2,545,591 16,366
Claims paid (541,451) (1,329,783) (1,871,234) (1,400,379)
Balance, end of year $1,128,436 $5,461,270 $6,589,706 $5,915,349
Due in one year $487,266 $1,592,257 $2,079,523 $1,939,300
Due in more than one year 641,170 3,869,013 4,510,183 3,976,049
Total claim liabilities $1,128,436 $5,461,270 $6,589,706 $5,915,349
The claims settlements have not exceeded insurance coverage for the past three years.
75
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 14 - 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 August 2004, the City of San Rafael entered into a ten-year 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). At the City’s request, the
Settlement Agreement was revised in 2013, and now expires in February 2019.
The original Settlement Agreement called for the construction of 797ADA compliant curb ramps
throughout San Rafael. The Department of Justice has approved the City’s request to reduce this
number to 765 ramps. As of June 30, 2014, the City had constructed 397 ramps.
SEC Municipalities Continuing Disclosure Cooperation Initiative (MCDC Initiative)
In September 2014, one of the City’s underwriters communicated to the City that, as a result of
completing its review related to continuing disclosure and issuer statements about prior
compliance, it would be self-reporting four items under the MCDC initiative. The City has initiated
its own review and, based on the results of that review, will determine its course of action with
respect to the MCDC initiative prior to the December 1, 2014 deadline.
NOTE 15 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-
PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES
A. Redevelopment Dissolution
In an effort to mitigate its budget deficit, the State of California adopted ABx1 26 on June 28, 2011,
amended by AB1484 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, ABx1 26 and AB1484 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 requires the State Controller to order the
asset returned to the redevelopment agency. This review was performed in May 2013, and a report
issued on July 29, 2013 (see section B of this footnote).
76
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 15 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-
PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
The City elected to become the Successor Agency to the Redevelopment 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.
Pursuant to the dissolution of the City of San Rafael Redevelopment Agency, 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.
B. Due Diligence and Other Required Reviews
Low and Moderate Income Housing Fund Due Diligence Review
Pursuant to Health and Safety Code 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 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 contended that the transfers were lawfully made and
requested a meet-and-confer session. Following this meeting, the DOF upheld its position and
demanded payment of $1,371,751. The full payment was made from the Low and Moderate Income
Housing Fund to the Marin County Auditor Controller on December 19, 2012. The Auditor
Controller has indicated the housing funds have been distributed to the taxing entities.
Non-Housing Funds Due Diligence Review
Pursuant to Health and Safety Code section 34179.6(c), the City of San Rafael Successor Agency
submitted an Oversight Board approved Non-Housing Funds Due Diligence Review to the California
Department of Finance (DOF) on February 26, 2013. As of the end of the 45-day review period,
there was no requirement to pay funds from the Non-Housing funds.
State Asset Transfer Review
Pursuant to Health and Safety Code section 34167.5, the State Controller’s Office is required to
review the records of the former redevelopment agency for asset transfers that took place after
January 1, 2011, between the city or county, or city and county that created a redevelopment agency,
or any other public agency, and the redevelopment agency through its termination on January 31,
2012. The State Controller’s Office is required to order that such assets, except those that already had
been committed to a third party prior to June 28, 2011, the effective date of ABx1 26, be turned over
to the Successor Agency. The State Controller’s Office completed this review on May 17, 2013, and
issued its report on July 29, 2013. The report resulted in no action required by the City of San Rafael
Successor Agency.
77
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 15 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-
PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
C. Long-Term Debt
1999 Tax Allocation Bonds and Capital Appreciation Bonds
On June 16, 1999, the former 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 former Agency’s
Central San Rafael Redevelopment Project Area.
In December, 2009 of the former Agency exercised the redemption option of the Current Interest
Bonds. The outstanding balance of the Bonds was 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 former 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 former Agency related to the Central San Rafael Redevelopment
Project Area.
2009 Tax Allocation Refunding Bonds
On December 14, 2009, the former 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 former 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.
78
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 15 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-
PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
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 former Agency 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 $32.1 million in remaining debt service on the Bonds, which is
scheduled to occur in 2023. For fiscal year June 30, 2014, tax increment revenues amounted to $3.6
million which was used to make the debt service payments of $3.6 million.
The following table summarizes the activity for the fiscal year ended June 30, 2014:
Authorized Balance Balance Current
and Issued June 30, 2013 Additions Retirements June 30, 2014 Portion
San Rafael Redevelopment Agency
1999 Tax Allocation Bonds
Capital Appreciation Bonds
5.58%-5.6%, due 12/1/2022 $2,389,004 $5,147,830 $291,895 $5,439,725
2002 Tax Allocation Refunding Bonds
2.00%-5.25%, due 12/1/2021 25,020,000 11,030,000 $1,575,000 9,455,000 $1,655,000
2009 Tax Allocation Refunding Bonds
3.00%-5.00%, due 12/1/2022 14,660,000 11,950,000 965,000 10,985,000 1,020,000
Add: deferred bond premium costs 798,605 79,861 718,744
Total Successor Agency Long-term Debt $28,926,435 $291,895 $2,619,861 $26,598,469 $2,675,000
Debt Service Requirements
Annual debt service requirements are shown below:
For the Year Governmental Activities
Ended June 30 Principal Interest
2015 $2,675,000 $893,201
2016 2,800,000 766,926
2017 2,930,000 634,276
2018 3,080,000 484,026
2019 3,190,000 370,676
2020 - 2023 13,595,000 668,513
Totals 28,270,000 $3,817,618
Reconciliation of long-term debt:
Less unaccreted discount (2,390,275)
Add deferred bond premium costs 718,744
$26,598,469
79
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
NOTE 15 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-
PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
D. Other Long-Term Obligations
During the fiscal year ending June 30, 2013, the San Rafael Successor Agency Oversight Board
approved two personnel-related obligations of the former Redevelopment Agency. On August 30,
2012, the Oversight Board approved the inclusion of $1,904,431, representing the unfunded pension
liability attributable to former Redevelopment Agency employees; the repayment is being made in
ten equal, annual installments. On January 22, 2013, the Oversight Board approved the inclusion of
$502,000, representing the unfunded OPEB (retiree medical) liability attributable to former
Redevelopment Agency employees; the repayment is being made in nine equal, annual installments.
This repayment for fiscal year 2013-2014 was made early in June 2013.
The following table summarizes the activity for the fiscal year ended June 30, 2014:
Approved Balance Balance
Amount June 30, 2013 Additions Retirements June 30, 2014
Unfunded Pension Liability $1,904,431 $1,713,988 $380,886 $1,333,102
Unfunded OPEB Liability 502,000 446,222 446,222
Total Long Term Obligations $2,160,210 $380,886 $1,779,324
E. Commitment and Contingencies
State Approval of Enforceable Obligation
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. As
of June 30, 2014, the Successor Agency had prepared six ROPS, all of which have been approved
by the Oversight Board and the California Department of Finance. The 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 Department of Finance cannot be determined at this
time. The City expects such amounts, if any, to be immaterial.
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.
The California State Attorney General’s Office has been in contact with the Successor Agency to
inform the Successor Agency of the litigation process that will resolve the issue in the amount paid
on July 12, 2012. The City has initiated this process and anticipates that it will be concluded during
the first half of fiscal year 2014-2015.
80
REQUIRED SUPPLEMENTAL INFORMATION
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.
Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles for the General
Fund and Special Revenue Funds.
83
CITY OF SAN RAFAEL
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and special assessments $48,079,249 $51,085,432 $51,510,233 $424,801
Licenses and permits 1,989,000 1,837,000 1,934,755 97,755
Fines and forfeitures 728,700 743,700 669,553 (74,147)
Use of money and properties 275,004 275,004 265,034 (9,970)
Intergovernmental 6,407,010 6,612,010 6,703,119 91,109
Charges for services 2,213,210 2,200,210 2,124,933 (75,277)
Other revenue 561,445 909,406 1,075,311 165,905
Total Revenues 60,253,618 63,662,762 64,282,938 620,176
EXPENDITURES
Current:
General government 8,159,440 8,714,511 8,546,690 167,821
Public safety 35,269,283 35,317,055 35,138,757 178,298
Public works and parks 9,808,085 9,808,089 9,793,235 14,854
Community development 3,203,831 3,302,834 3,296,375 6,459
Culture and recreation 2,510,691 2,542,192 2,545,446 (3,254)
Capital outlay 140,000 141,000 42,016 98,984
Capital improvement/special projects 158,560 44,929 17,288 27,641
Debt service:
Principal 39,642 (39,642)
Interest and fiscal charges 276,513 276,513 279,605 (3,092)
Total Expenditures 59,526,403 60,147,123 59,699,054 448,069
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 727,215 3,515,639 4,583,884 1,068,245
OTHER FINANCING SOURCES (USES)
Proceeds from PG&E loan 568,481 568,481
Transfers in 1,241,424 1,241,424 1,225,080 (16,344)
Transfers out (1,925,000) (2,498,336) (2,498,336)
Total Other Financing Sources (Uses) (683,576) (688,431) (704,775) (16,344)
Net Change in Fund Balances $43,639 $2,827,208 3,879,109 $1,051,901
FUND BALANCES, BEGINNING OF YEAR, AS ADJUSTED 3,490,378
FUND BALANCES, END OF YEAR $7,369,487
84
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, 2014
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and properties $22,700 $22,700 $22,882 $182
Charges for services 191,217 191,217
Other revenue 4,025 4,025
Total Revenues 22,700 22,700 218,124 195,424
EXPENDITURES
Current:
Public works and parks 79,310 80,311 80,054 257
Capital improvement/special projects 300,000 300,000 300,000
Total Expenditures 379,310 380,311 80,054 300,257
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (356,610) (357,611) 138,070 495,681
Net Change in Fund Balances ($356,610) ($357,611) 138,070 $495,681
12,437,324
FUND BALANCES, END OF YEAR $12,575,394
FUND BALANCES, BEGINNING OF YEAR, AS ADJUSTED
85
CITY OF SAN RAFAEL
GAS TAX SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and properties $9,000 $9,000 $11,361 $2,361
Intergovernmental 4,537,787 4,662,787 3,516,270 (1,146,517)
Charges for services 1,043,600 1,043,600 933,095 (110,505)
Other revenue 43,768 43,768
Total Revenues 5,590,387 5,715,387 4,504,494 (1,210,893)
EXPENDITURES
Current:
Public works and parks 31,160 2,111,162 302,542 1,808,620
Capital outlay 2,338,826 2,538,826 1,543,875 994,951
Capital improvement/special projects 3,081,890 3,251,890 1,783,845 1,468,045
Total Expenditures 5,451,876 7,901,878 3,630,262 4,271,616
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 138,511 (2,186,491) 874,232 3,060,723
Net Change in Fund Balances $138,511 ($2,186,491) 874,232 $3,060,723
FUND BALANCES, BEGINNING OF YEAR, AS ADJUSTED 6,105,858
FUND BALANCES, END OF YEAR $6,980,090
86
SUPPLEMENTARY INFORMATION
This Page Left Intentionally Blank
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Recreation Revolving Fund – Established to administer the Community Services 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 ten sites
throughout the City.
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.
89
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.
Measure A Open Space Special Revenue Fund – Established to account for the use of proceeds
distributed by the County of Marin from Measure A, as well as other supplementary matching or
City-funding for the operation or maintenance of open space, park or recreation lands.
DEBT SERVICE FUNDS
Peacock Gap Assessment District Fund – Established to accumulate funds for the payment of
principal and interest for the 1993 Bonds which matured 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 matured 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 matured 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.
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.
90
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.
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 organization.
91
SPECIAL REVENUE FUNDS
Baypoint
Lagoons Household Loch Lomond
Recreation Assessment Hazmat Assessment
Revolving District Facility Childcare District
ASSETS
Cash and investments $291,951 $215,177 $240,970 $540,791 $654,150
Restricted cash and investments
Receivables:
Accounts 234,825 217,407
Taxes 203 125
Grants 22,379
Interest
Loans
Prepaids
Total Assets $526,776 $215,380 $458,377 $563,170 $654,275
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $48,648 $106,160 $28,781
Deposits payable
Developer deposits payable 84,237
Unearned revenue 343,442
Compensated absences:
Due in one year 270
Total Liabilities 392,090 190,397 29,051
Fund Balances:
Nonspendable
Restricted 134,686 $215,380 267,980 534,119 $654,275
Committed
Assigned
Total Fund Balances 134,686 215,380 267,980 534,119 654,275
Total Liabilities and Fund Balances $526,776 $215,380 $458,377 $563,170 $654,275
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2014
92
Library Public Development Parkland
Library Assessment Safety Stormwater Services Grants Dedication
$202,742 $675,344 $183,035 $1,865,435 $950,296 $917,595 $691,422
19,246 45,000
3,643 6,254
227,315 202,339
$202,742 $678,987 $202,281 $1,871,689 $995,296 $1,144,910 $893,761
$8,546 $52,499 $2,160 $19,650 $2,739 $32,491 $6,695
20,000 41,879 151,428
1,500
8,546 52,499 2,160 39,650 46,118 183,919 6,695
194,196 626,488 200,121 1,832,039 949,178 960,991 887,066
194,196 626,488 200,121 1,832,039 949,178 960,991 887,066
$202,742 $678,987 $202,281 $1,871,689 $995,296 $1,144,910 $893,761
(Continued)
SPECIAL REVENUE FUNDS
93
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2014
Low and
Emergency Pt. San Pedro Moderate
Medical Business Sewer Maintenance Income
Services Improvement Maintenance Portion Housing
ASSETS
Cash and investments $975,066 $15,848 $211,787 $178,115 $557,870
Restricted cash and investments
Receivables:
Accounts 88,000 122,163
Taxes 30,096 585
Grants 143,395
Interest 79
Loans 325,865
Prepaids 8,719
Total Assets $1,245,276 $15,848 $211,787 $178,700 $1,005,977
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $24,484 $180,291 $2,240
Deposits payable $12,364
Developer deposits payable
Unearned revenue
Compensated absences:
Due in one year
Total Liabilities 24,484 12,364 180,291 2,240
Fund Balances:
Nonspendable 8,719
Restricted 1,212,073 3,484 31,496 $178,700 1,003,737
Committed
Assigned
Total Fund Balances 1,220,792 3,484 31,496 178,700 1,003,737
Total Liabilities and Fund Balances $1,245,276 $15,848 $211,787 $178,700 $1,005,977
SPECIAL REVENUE FUNDS
CITY OF SAN RAFAEL
94
SPECIAL
REVENUE
FUNDS DEBT SERVICE FUNDS CAPITAL PROJECT FUNDS
1997
Peacock Gap Mariposa Financing
Measure A Assessment Assessment Authority Capital Bedroom Assessment
Open Space District District Revenue Bonds Improvement Tax Districts
$63,175 $2,875 $16,573 $146,095 $1,491,005 $32,475 $300,823
76,371
200,820
32,063
$263,995 $2,875 $16,573 $146,095 $1,523,068 $32,475 $377,194
$18,780 $18,345 $76,856
18,780 18,345 76,856
245,215 $2,875 $16,573 $146,095 $32,475 300,338
1,504,723
245,215 2,875 16,573 146,095 1,504,723 32,475 300,338
$263,995 $2,875 $16,573 $146,095 $1,523,068 $32,475 $377,194
(Continued)
95
Total
Park Non-Major
Capital Open Radio Telephone Governmental
Projects Space Replacement Replacement Funds
ASSETS
Cash and investments $22,837 $127,029 $391,931 $238,869 $12,201,281
Restricted cash and investments 76,371
Receivables:
Accounts 726,641
Taxes 241,726
Grants 627,491
Interest 79
Loans 325,865
Prepaids 8,719
Total Assets $22,837 $127,029 $391,931 $238,869 $14,208,173
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $17,614 $646,979
Deposits payable 225,671
Developer deposits payable 85,737
Unearned revenue 343,442
Compensated absences:
Due in one year 270
Total Liabilities 17,614 1,302,099
Fund Balances:
Nonspendable 8,719
Restricted 10,629,580
Committed $19,741 1,524,464
Assigned 3,096 $127,029 $391,931 221,255 743,311
Total Fund Balances 22,837 127,029 391,931 221,255 12,906,074
Total Liabilities and Fund Balances $22,837 $127,029 $391,931 $238,869 $14,208,173
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2014
96
This Page Left Intentionally Blank
SPECIAL REVENUE FUNDS
Baypoint
Lagoons Household Loch Lomond
Recreation Assessment Hazmat Assessment
Revolving District Facility Childcare District
REVENUES
Taxes and special assessments $25,368 $15,606
Use of money and properties $436 376 $374 $669 1,026
Intergovernmental 9,984 275,594
Charges for services 2,638,812 730,186 3,683,775
Other revenue 11,522 2,400 116,473
Total Revenues 2,660,754 25,744 732,960 3,960,038 133,105
EXPENDITURES
Current:
General government
Public safety 701,391
Public works and parks 4,881 54
Culture and recreation 3,972,745 3,749,177
Capital outlay
Capital improvement/special projects 23,779 856
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 3,996,524 4,881 702,247 3,749,177 54
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,335,770) 20,863 30,713 210,861 133,051
OTHER FINANCING SOURCES (USES)
Transfers in 1,400,000 250,000
Transfers out
Total Other Financing Sources (Uses)1,400,000 250,000
Net Change in Fund Balances 64,230 20,863 30,713 460,861 133,051
Fund Balance, Beginning, As Adjusted 70,456 194,517 237,267 73,258 521,224
Fund Balance, Ending $134,686 $215,380 $267,980 $534,119 $654,275
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
98
SPECIAL REVENUE FUNDS
Library Public Development Parkland
Library Assessment Safety Stormwater Services Grants Dedication
$873,622 $3,097
$404 1,140 $280 $3,387 $31,072 $1,865 1,472
878 76,783 728,832 99,262
6,649 2,085 783,015 46,441 9,840
5,198 74,718 10,591 1,750
13,129 874,762 153,866 796,993 77,513 732,447 113,671
43,775
236,908 104,730
667,063 29,933
23,518 815,012 469
14,627
35,327 3,772 73,683 960,631 162,139
58,845 815,012 240,680 740,746 1,139,069 177,235
(45,716) 59,750 (86,814) 56,247 77,513 (406,622) (63,564)
65,000 153,894
65,000 153,894
(45,716) 59,750 (21,814) 56,247 77,513 (252,728) (63,564)
239,912 566,738 221,935 1,775,792 871,665 1,213,719 950,630
$194,196 $626,488 $200,121 $1,832,039 $949,178 $960,991 $887,066
(Continued)
99
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
Low and
Emergency Pt. San Pedro - Moderate
Medical Business Sewer Maintenance Income
Services Improvement Maintenance Portion Housing
REVENUES
Taxes and special assessments $3,816,070 $73,072
Use of money and properties 1,145 $61 $354 322 $7,115
Intergovernmental 344,510
Charges for services 2,426,744 2,735,559
Other revenue 494,381
Total Revenues 6,588,469 61 2,735,913 73,394 501,496
EXPENDITURES
Current:
General government 875 87,493
Public safety 5,660,409
Public works and parks 2,486,871 60,990
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal 169,000
Interest and fiscal charges 47,745
Total Expenditures 5,660,409 875 2,486,871 60,990 304,238
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 928,060 (814) 249,042 12,404 197,258
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (306,842)(248,687)
Total Other Financing Sources (Uses)(306,842)(248,687)
Net Change in Fund Balances 621,218 (814)355 12,404 197,258
Fund Balance, Beginning, As Adjusted 599,574 4,298 31,141 166,296 806,479
Fund Balance, Ending $1,220,792 $3,484 $31,496 $178,700 $1,003,737
SPECIAL REVENUE FUNDS
100
SPECIAL
REVENUE
FUND DEBT SERVICE FUNDS
1997
Peacock Gap Mariposa Financing
Measure A Assessment Assessment Authority Capital Bedroom Assessment
Open Space District District Revenue Bonds Improvement Tax Districts
$358,619 $10,455
284 $30 $269 $2,315 50 $164
198,076
85,271 9,710
358,903 30 269 285,662 10,505 9,874
58,567
272,334
485,482 68,900
330,901 485,482 68,900
28,002 30 269 (199,820) 10,505 (59,026)
561,328
561,328
28,002 30 269 361,508 10,505 (59,026)
217,213 $2,875 16,543 145,826 1,143,215 21,970 359,364
$245,215 $2,875 $16,573 $146,095 $1,504,723 $32,475 $300,338
(Continued)
CAPITAL PROJECT FUNDS
101
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
CAPITAL PROJECT FUNDS
Total
Park Non-Major
Capital Open Radio Telephone Governmental
Projects Space Replacement Replacement Funds
REVENUES
Taxes and special assessments $5,175,909
Use of money and properties $43 $235 $692 $428 56,008
Intergovernmental 1,733,919
Charges for services 448,660 466,600 13,978,366
Other revenue 6,820 818,834
Total Revenues 6,863 235 449,352 467,028 21,763,036
EXPENDITURES
Current:
General government 132,143
Public safety 6,762,005
Public works and parks 3,522,126
Culture and recreation 8,560,921
Capital outlay 569,009
Capital improvement/special projects 1,327 4,042 637,749 452,343 2,355,648
Debt service:
Principal 169,000
Interest and fiscal charges 47,745
Total Expenditures 1,327 4,042 637,749 452,343 22,118,597
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 5,536 (3,807) (188,397)14,685 (355,561)
OTHER FINANCING SOURCES (USES)
Transfers in 2,430,222
Transfers out (555,529)
Total Other Financing Sources (Uses)1,874,693
Net Change in Fund Balances 5,536 (3,807) (188,397)14,685 1,519,132
Fund Balance, Beginning, As Adjusted 17,301 130,836 580,328 206,570 11,386,942
Fund Balance, Ending $22,837 $127,029 $391,931 $221,255 $12,906,074
102
This Page Left Intentionally Blank
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, 2014
SPECIAL REVENUE FUNDS
Recreation Revolving Baypoint Lagoons Assessment District
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $25,000 $25,368 $368
Licenses and permits
Use of money and properties $137 $436 $299 330 376 46
Intergovernmental 21,984 9,984 (12,000)
Charges for services 2,580,060 2,638,812 58,752
Other revenue 28,750 11,522 (17,228)
Total Revenues 2,630,931 2,660,754 29,823 25,330 25,744 414
EXPENDITURES
Current:
General government
Public safety
Public works and parks 5,000 4,881 119
Culture and recreation 3,881,008 3,972,745 (91,737)
Capital outlay
Capital improvement/special projects 151,190 23,779 127,411
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 4,032,198 3,996,524 35,674 5,000 4,881 119
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,401,267) (1,335,770) 65,497 20,330 20,863 533
OTHER FINANCING SOURCES (USES)
Transfers in 1,400,000 1,400,000
Transfers out
Total Other Financing Sources (Uses) 1,400,000 1,400,000
FUND BALANCES, BEGINNING OF YEAR
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES ($1,267) 64,230 $65,497 $20,330 20,863 $533
FUND BALANCES, BEGINNING OF YEAR,
AS ADJUSTED 70,456 194,517
FUND BALANCES, END OF YEAR $134,686 $215,380
104
Household Hazmat Facility Childcare Loch Lomond Assessment District
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$15,610 $15,606 ($4)
$240 $374 $134 $80 $669 $589 1,400 1,026 (374)
261,694 275,594 13,900
1,580,183 730,186 (849,997) 3,386,380 3,683,775 297,395
2,400 2,400 116,473 116,473
1,580,423 732,960 (847,463) 3,648,154 3,960,038 311,884 17,010 133,105 116,095
1,549,339 701,391 847,948
16,060 54 16,006
3,861,891 3,749,177 112,714
1,000 856 144
1,550,339 702,247 848,092 3,861,891 3,749,177 112,714 16,060 54 16,006
30,084 30,713 629 (213,737) 210,861 424,598 950 133,051 132,101
250,000 250,000
250,000 250,000
$30,084 30,713 $629 $36,263 460,861 $424,598 $950 133,051 $132,101
237,267 73,258 521,224
$267,980 $534,119 $654,275
(Continued)
SPECIAL REVENUE FUNDS
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, 2014
Library Library Assessment
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $876,995 $873,622 ($3,373)
Licenses and permits
Use of money and properties $622 $404 ($218) $1,000 1,140 140
Intergovernmental 878 878
Charges for services 6,000 6,649 649
Other revenue 3,051 5,198 2,147
Total Revenues 9,673 13,129 3,456 877,995 874,762 (3,233)
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation 109,222 23,518 85,704 838,982 815,012 23,970
Capital outlay
Capital improvement/special projects 16,000 35,327 (19,327)
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 125,222 58,845 66,377 838,982 815,012 23,970
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (115,549) (45,716) 69,833 39,013 59,750 20,737
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES ($115,549) (45,716) $69,833 $39,013 59,750 $20,737
FUND BALANCES, BEGINNING OF YEAR,
AS ADJUSTED 239,912 566,738
FUND BALANCES, END OF YEAR $194,196 $626,488
SPECIAL REVENUE FUNDS
106
Public Safety Stormwater
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$5,000 ($5,000)
$260 $280 $20 2,200 $3,387 1,187 $30,600 $31,072 $472
65,000 76,783 11,783
1,000 2,085 1,085 793,000 783,015 (9,985) 3,600 46,441 42,841
50,000 74,718 24,718 5,000 10,591 5,591 36,061 (36,061)
116,260 153,866 37,606 805,200 796,993 (8,207) 70,261 77,513 7,252
246,466 236,908 9,558
849,767 667,063 182,704
30,000 30,000
23,060 3,772 19,288 1,201,526 73,683 1,127,843 36,000 36,000
299,526 240,680 58,846 2,051,293 740,746 1,310,547 36,000 36,000
(183,266) (86,814) 96,452 (1,246,093) 56,247 1,302,340 34,261 77,513 $43,252
65,000 65,000
65,000 65,000
($118,266) (21,814) $96,452 ($1,246,093) 56,247 $1,302,340 $34,261 77,513 $43,252
221,935 1,775,792 871,665
$200,121 $1,832,039 $949,178
(Continued)
Development Services
SPECIAL REVENUE FUNDS
107
Grants Parkland Dedication
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $3,097 $3,097
Licenses and permits
Use of money and properties $1,500 1,472 (28)
Intergovernmental $734 $1,865 $1,131 99,262 99,262
Charges for services 1,180,427 728,832 (451,595)9,840 9,840
Other revenue 1,750 1,750
Total Revenues 1,181,161 732,447 (448,714) 1,500 113,671 112,171
EXPENDITURES
Current:
General government 61,000 43,775 17,225
Public safety 109,238 104,730 4,508
Public works and parks 32,111 29,933 2,178
Culture and recreation 469 (469)
Capital outlay 100,726 14,627 86,099
Capital improvement/special projects 1,326,700 960,631 366,069 375,000 162,139 212,861
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 1,529,049 1,139,069 389,980 475,726 177,235 298,491
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (347,888) (406,622) ($58,734) (474,226) (63,564) 410,662
OTHER FINANCING SOURCES (USES)
Transfers in 153,894 153,894
Transfers out
Total Other Financing Sources (Uses)153,894 153,894
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES ($193,994) (252,728) ($58,734) ($474,226) (63,564) $410,662
FUND BALANCES, BEGINNING OF YEAR,
AS ADJUSTED 1,213,719 950,630
FUND BALANCES, END OF YEAR $960,991 $887,066
FOR THE YEAR ENDED JUNE 30, 2014
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
CITY OF SAN RAFAEL
SPECIAL REVENUE FUNDS
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
108
Emergency Medical Services Business Improvement Sewer Maintenance
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$3,801,794 $3,816,070 $14,276
200 1,145 945 $20 $61 $41 $354 $354
344,510 344,510
2,425,000 2,426,744 1,744 $2,915,337 2,735,559 (179,778)
22,520 (22,520)
6,226,994 6,588,469 361,475 22,540 61 (22,479) 2,915,337 2,735,913 (179,424)
22,520 875 21,645
5,817,535 5,660,409 157,126
2,650,305 2,486,871 163,434
5,817,535 5,660,409 157,126 22,520 875 21,645 2,650,305 2,486,871 163,434
409,459 928,060 518,601 20 (814) (834) 265,032 249,042 (15,990)
(306,842) (306,842)(265,031) (248,687) 16,344
(306,842) (306,842)(265,031) (248,687) 16,344
$102,617 621,218 $518,601 $20 (814) ($834)$1 355 $354
599,574 4,298 31,141
$1,220,792 $3,484 $31,496
(Continued)
SPECIAL REVENUE FUNDS
109
Pt. San Pedro-Maintenance Portion Low and Moderate Income Housing
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $88,600 $73,072 ($15,528)
Licenses and permits
Use of money and properties 225 322 97 $250 $7,115 $6,865
Intergovernmental
Charges for services
Other revenue 70,000 494,381
Total Revenues 88,825 73,394 (15,431) 70,250 501,496 6,865
EXPENDITURES
Current:
General government 304,775 87,493 217,282
Public safety
Public works and parks 73,282 60,990 12,292
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal 169,000
Interest and fiscal charges 47,745
Total Expenditures 73,282 60,990 12,292 304,775 304,238 217,282
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 15,543 12,404 (3,139) (234,525) 197,258 431,783
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES $15,543 12,404 ($3,139) ($234,525) 197,258 $431,783
FUND BALANCES, BEGINNING OF YEAR,
AS ADJUSTED 166,296 806,479
FUND BALANCES, END OF YEAR $178,700 $1,003,737
BUDGET AND ACTUAL
CITY OF SAN RAFAEL
SPECIAL REVENUE FUNDS
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2014
110
Measure A 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)
$336,000 $358,619 $22,619
284 284 $30 $30 $260 $269 $9
336,000 358,903 22,903 30 30 260 269 9
135,000 58,567 76,433
286,000 272,334 13,666
421,000 330,901 90,099
(85,000) 28,002 113,002 30 30 260 269 9
($85,000) 28,002 $113,002 $30 30 $260 269 $9
217,213 16,543 145,826
$245,215 $16,573 $146,095
DEBT SERVICE FUNDSSPECIAL REVENUE FUNDS
111
This Page Left Intentionally Blank
INTERNAL SERVICE FUNDS
Internal service funds account for department services and financing performed for other departments
within the same governmental jurisdiction. Funding 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 – Established to maintain sufficient reserves to fund debt service
payments on the 2010 Taxable Pension Obligation Bonds and other pension related obligations.
OPEB/Retiree Medical Fund – Established to account for activities related to the funding,
administration and procurement of retiree medical benefits.
113
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2014
Building Employee Liability Workers'
Maintenance Benefits Insurance Compensation
ASSETS
Current Assets:
Cash and investments $1,769,460 $531,149 $1,220,720 $6,078,965
Accounts receivable 80,692 533
Prepaids
Net Pension Asset
Capital assets:
Nondepreciable assets 953,153
Total Assets 2,722,613 531,149 1,301,412 6,079,498
LIABILITIES
Current Liabilities:
Accounts payable 17,237 15,832 166 6,883
Claims payable - due in one year 487,266 1,592,257
Non-current Liabilities:
Claims payable - due in more than one year 641,170 3,869,013
OPEB liability
Total Liabilities 17,237 15,832 1,128,602 5,468,153
NET POSITION:
Net investment in capital assets 953,153
Restricted
Unrestricted 1,752,223 515,317 172,810 611,345
Total Net Position $2,705,376 $515,317 $172,810 $611,345
114
OPEB/
Dental Employee Retiree
Insurance Retirement Medical Total
$134,502 $2,107,817 $404,830 $12,247,443
183,588 264,813
105 105
1,000,000 1,000,000
953,153
134,502 3,107,817 588,523 14,465,514
3,644 733 44,495
2,079,523
4,510,183
9,296,000 9,296,000
3,644 9,296,733 15,930,201
953,153
1,000,000 1,000,000
130,858 2,107,817 (8,708,210) (3,417,840)
$130,858 $3,107,817 ($8,708,210) ($1,464,687)
115
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2014
Building Employee Liability Workers'
Maintenance Benefits Insurance Compensation
OPERATING REVENUES
Charges for current services $517,000 $350,000 $864,270 $1,787,294
Other operating revenues 80,692
Total Operating Revenues 517,000 350,000 944,962 1,787,294
OPERATING EXPENSES
Insurance premiums and claims 875,351 1,634,893
Maintenance and repairs 316,841
General and administrative 563,708 168,743 123,059
Total Operating Expenses 316,841 563,708 1,044,094 1,757,952
Operating Income (Loss) 200,159 (213,708) (99,132) 29,342
NONOPERATING REVENUES (EXPENSES)
Investment income 3,439 3,266 2,541 10,591
Total Nonoperating
Revenues (Expenses) 3,439 3,266 2,541 10,591
Net income (loss) before transfers 203,598 (210,442) (96,591) 39,933
TRANSFERS IN 125,000
TRANSFERS OUT
Change in Net Position 328,598 (210,442) (96,591) 39,933
NET POSITION, BEGINNING OF YEAR,
AS ADJUSTED 2,376,778 725,759 269,401 571,412
NET POSITION, END OF YEAR $2,705,376 $515,317 $172,810 $611,345
116
OPEB/
Dental Employee Retiree
Insurance Retirement Medical Total
$400,259 $602,340 $2,866,887 $7,388,050
5,404 1,079,388 1,165,484
405,663 602,340 3,946,275 8,553,534
406,482 3,447,634 6,364,360
316,841
2,000 857,510
406,482 2,000 3,447,634 7,538,711
(819) 600,340 498,641 1,014,823
334 3,217 23,388
334 3,217 23,388
(485) 603,557 498,641 1,038,211
125,000
(276,520)(276,520)
(485) 327,037 498,641 886,691
131,343 2,780,780 (9,206,851) (2,351,378)
$130,858 $3,107,817 ($8,708,210) ($1,464,687)
117
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2014
Building Employee Liability
Maintenance Benefits Insurance
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $517,000 $350,000 $783,578
Cash payments to suppliers for goods and services (354,425) (562,815) (1,023,977)
Other operating revenues 80,692
Payment to OPEB Trust
Cash Flows from Operating Activities 162,575 (212,815) (159,707)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts 125,000
Interfund payments
Cash Flows from Noncapital
Financing Activities 125,000
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (953,153)
Cash Flows from Investing Activities (953,153)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 3,439 3,266 2,541
Cash Flows from Investing Activities 3,439 3,266 2,541
Net increase (decrease) in cash and cash equivalents (662,139) (209,549) (157,166)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 2,431,599 740,698 1,377,886
CASH AND CASH EQUIVALENTS, END OF YEAR $1,769,460 $531,149 $1,220,720
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$200,159 ($213,708) ($99,132)
Net change in assets and liabilities:
Accounts receivable (80,692)
Prepaids and deposits 3,522
Net OPEB Liability
Accounts payable (41,106)893 (5,532)
Claims payable 25,649
Net Cash Provided by (Used in) Operating Activities $162,575 ($212,815) ($159,707)
118
OPEB/
Workers' Dental Employee Employee
Compensation Insurance Retirement Retirement Total
$1,976,669 $400,259 $602,340 $2,874,808 $7,504,654
(1,114,290) (406,553) ($2,000) (3,942,862) (7,406,922)
5,404 1,079,388 1,165,484
(220,000) (220,000)
862,379 (890) 600,340 (208,666) 1,043,216
748,239 873,239
(276,520) (276,520)
471,719 596,719
(953,153)
(953,153)
10,591 334 3,217 23,388
10,591 334 3,217 23,388
872,970 (556) 1,075,276 (208,666) 710,170
5,205,995 135,058 1,032,541 613,496 11,537,273
$6,078,965 $134,502 $2,107,817 $404,830 $12,247,443
$29,342 ($819) $600,340 $498,641 $1,014,823
189,375 7,921 116,604
3,639 345 7,506
(220,000) (220,000)
(8,685)(71)(495,573) (550,074)
648,708 674,357
$862,379 ($890) $600,340 ($208,666) $1,043,216
119
This Page Left Intentionally Blank
AGENCY FUNDS
Agency Funds account of assets held by the City as agent for individuals, governmental entities, and non-public
organizations.
Pt. San Pedro Road Assessment District Fund - Established to accumulate funds for payment of principal and
interest for Pt. San Pedro Road Median Landscaping Assessment District bonds.
121
CITY OF SAN RAFAEL
AGENCY FUNDS
COMBINING STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED JUNE 30, 2014
Balance Balance
June 30, 2013 Additions Deductions June 30, 2014
Pt. San Pedro Road Assessment District
Assets
Restricted cash and investments $300,578 $31,190 $33,960 $297,808
Taxes receivable 1,486 1,210 1,486 1,210
Total Assets $302,064 $32,400 $35,446 $299,018
Liabilities
Interest payable $29,704 $29,704
Due to bondholders $302,064 2,696 $35,446 269,314
Total Liabilities $302,064 $32,400 $35,446 $299,018
Balance Balance
June 30, 2013 Additions Deductions June 30, 2014
Total Agency Fund
Assets
Restricted cash and investments $300,578 $31,190 $33,960 $297,808
Taxes receivable 1,486 1,210 1,486 1,210
Total Assets $302,064 $32,400 $35,446 $299,018
Liabilities
Interest payable $29,704 $29,704
Due to bondholders $302,064 2,696 $35,446 269,314
Total Liabilities $302,064 $32,400 $35,446 $299,018
122
Wildflowers
STATISTICAL SECTION
123
This Page Left Intentionally Blank
STATISTICAL SECTION
This part of the City’s Comprehensive Annual Financial Report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary information
says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not
subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well-
being have changed over time:
1. Net Position by Component
2. Changes in Net Position
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
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.
125
CITY OF SAN RAFAEL
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
As of June 30
2005 2006 2007 2008
Governmental activities
Invested in capital assets,
net of related debt $194,658,126 $175,806,100 $171,849,149 $176,724,820
Restricted 2,378,641 620,889 31,124,935 26,848,900
Unrestricted 14,167,627 32,739,318 4,499,136 4,273,937
Total governmental activities net position $211,204,394 $209,166,307 $207,473,220 $207,847,657
Business-type activities
Invested in capital assets,
net of related debt $8,615,483 $9,819,435 $9,717,501 $10,130,329
Unrestricted 1,900,504 2,113,659 2,226,838 2,471,117
Total business-type activities net position $10,515,987 $11,933,094 $11,944,339 $12,601,446
Primary government
Net investments in capital assets $203,273,609 $185,625,535 $181,566,650 $186,855,149
Restricted 2,378,641 620,889 31,124,935 26,848,900
Unrestricted 16,068,131 34,852,977 6,725,974 6,745,054
Total primary government net position $221,720,381 $221,099,401 $219,417,559 $220,449,103
(a) The City adjusted centain beginning balances druing fiscal year 2013-2014. Financial data shown for proceding years were
not adjusted for the presentation.
($10,000)
$40,000
$90,000
$140,000
$190,000
$240,000
$290,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Th
o
u
s
a
n
d
s
Net of Related Debt Restricted Unrestricted
126
2009 2010 2011 2012 2013 2014 (a)
$178,744,119 $173,536,144 $174,281,922 $192,361,245 $193,222,791 $190,286,275
25,721,231 26,150,254 21,322,937 24,693,205 35,780,412 37,339,141
(700,985) (4,631,276) (8,170,324) 10,652,263 11,151,318 (196,824)
$203,764,365 $195,055,122 $187,434,535 $227,706,713 $240,154,521 $227,428,592
$11,243,637 $10,950,825 $10,793,592 $10,650,558 $10,670,190 $10,786,591
1,936,958 2,017,354 1,948,447 2,495,889 2,501,498 2,049,957
$13,180,595 $12,968,179 $12,742,039 $13,146,447 $13,171,688 $12,836,548
$189,987,756 $184,486,969 $185,075,514 $203,011,803 $203,892,981 $201,072,866
25,721,231 26,150,254 21,322,937 24,693,205 35,780,412 37,339,141
1,235,973 (2,613,922) (6,221,877) 13,148,152 13,652,816 1,853,133
$216,944,960 $208,023,301 $200,176,574 $240,853,160 $253,326,209 $240,265,140
127
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2005 2006 2007 2008
Expenses
Governmental Activities:
General government $5,895,390 $6,252,533 $8,908,433 $8,621,079
Public safety 32,891,692 33,178,537 37,271,272 40,845,347
Public works and parks 16,820,453 23,401,246 20,998,749 22,105,367
Community development 4,624,345 4,194,249 4,384,408 5,811,866
Culture and recreation 8,450,017 8,652,445 9,729,485 10,300,230
Interest on long-term debt and fiscal charges 2,129,818 1,725,559 2,183,683 1,989,620
Total Governmental Activities Expenses 70,811,715 77,404,569 83,476,030 89,673,509
Business-Type Activities:
Parking services 2,451,941 2,761,511 3,110,254 3,282,235
Total Business-Type Activities Expenses 2,451,941 2,761,511 3,110,254 3,282,235
Total Primary Government Expenses $73,263,656 $80,166,080 $86,586,284 $92,955,744
Component Unit:
San Rafael Sanitation District $5,288,582 $6,148,915 $6,656,432 $8,090,636
Program Revenues
Governmental Activities:
Charges for services:
General government $1,831,269 $402,094 $1,512,814 $1,494,784
Public safety 4,315,141 5,085,679 5,279,785 5,562,072
Public works and parks 3,298,076 3,799,861 4,030,060 4,983,288
Community development 1,974,527 3,190,832 2,815,009 3,247,024
Culture and recreation 3,924,360 4,368,274 4,521,004 4,870,884
Operating grants and contributions 3,321,135 2,745,570 3,701,901 3,463,616
Capital grants and contributions 606,589 3,936,474 2,786,761 3,239,509
Total Government Activities Program Revenues 19,271,097 23,528,784 24,647,334 26,861,177
Business-Type Activities:
Charges for services:
Parking services 2,604,066 3,025,380 3,242,046 4,161,936
Total Business-Type Activities Program Revenues 2,604,066 3,025,380 3,242,046 4,161,936
Total Primary Government Program Revenues $21,875,163 $26,554,164 $27,889,380 $31,023,113
Component Unit:
Charges for services:
San Rafael Sanitation District $6,060,993 $6,340,773 $7,857,916 $9,366,305
Net (Expense)/Revenue
Governmental Activities ($51,540,618) ($53,875,785) ($58,828,696) ($62,812,332)
Business-Type Activities 152,125 263,869 131,792 879,701
Total Primary Government Net Expense ($51,388,493) ($53,611,916) ($58,696,904) ($61,932,631)
Component Unit Activities $772,411 $191,858 $1,201,484 $1,275,669
Fiscal Year Ended June 30,
128
2009 2010 2011 2012 2013 2014
$8,075,344 $8,396,759 $8,269,846 $10,171,332 $10,202,530 $9,085,672
42,708,538 42,752,033 44,735,486 39,876,910 41,966,065 43,800,158
23,036,676 17,401,923 17,408,038 17,423,033 17,695,164 22,125,336
5,759,171 6,738,873 7,804,650 4,587,557 3,403,158 3,451,244
11,505,896 11,139,225 11,487,999 11,020,663 11,330,058 11,846,818
1,907,229 2,200,024 1,621,605 1,224,991 283,805 327,350
92,992,854 88,628,837 91,327,624 84,304,486 84,880,780 90,636,578
3,563,235 4,016,198 3,785,751 3,446,482 3,545,387 4,125,476
3,563,235 4,016,198 3,785,751 3,446,482 3,545,387 4,125,476
$96,556,089 $92,645,035 $95,113,375 $87,750,968 $88,426,167 $94,762,054
$9,143,977 $9,087,354 $9,677,630 $10,185,779 $10,169,082 $11,378,055
$1,738,685 $1,665,460 $1,636,542 $1,986,791 $2,655,749 $2,838,940
5,906,445 6,308,912 6,167,925 7,122,396 6,478,321 6,014,034
4,753,817 3,916,874 4,141,103 5,214,267 7,837,472 6,101,460
2,915,872 2,830,179 2,676,663 3,255,367 3,984,204 3,279,251
5,253,683 5,280,458 5,362,497 5,873,147 6,075,129 6,417,003
3,544,248 3,721,055 3,651,902 3,158,281 4,085,073 4,698,142
7,311,173 2,116,906 1,857,670 2,705,696 5,876,993 762,719
31,423,923 25,839,844 25,494,302 29,315,945 36,992,941 30,111,549
4,454,490 4,244,404 4,011,333 3,901,175 3,990,706 4,485,394
4,454,490 4,244,404 4,011,333 3,901,175 3,990,706 4,485,394
$35,878,413 $30,084,248 $29,505,635 $33,217,120 $40,983,647 $34,596,943
$10,567,647 $11,559,549 $12,223,779 $12,368,889 $12,413,123 $13,732,496
($61,568,931) ($62,788,993) ($65,833,322) ($54,988,541) ($47,887,839) ($60,525,029)
891,255 228,206 225,582 454,693 445,319 359,918
($60,677,676) ($62,560,787) ($65,607,740) ($54,533,848) ($47,442,520) ($60,165,111)
$1,423,670 $2,472,195 $2,546,149 $2,183,110 $2,244,041 $2,354,441
129
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2005 2006 2007 2008
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property $17,385,722 $20,848,887 $20,360,475 $22,195,606
Sales 17,132,100 18,188,524 24,484,356 25,764,457
Special assessments 3,642,184 3,017,488 2,998,925 3,503,555
Paramedic
Motor vehicles 4,657,817 372,726 331,620 257,320
Transient occupancy
Franchise
Business license
Other 5,151,205 6,963,448 8,830,955 9,242,241
Investment earnings 1,112,548 1,248,409 1,669,181 1,583,056
Gain (Loss) on disposal of assets
Miscellaneous 876,907 361,195 491,488 296,454
Special item - Court fines repayment (1,133,458)
Transfers 15,720 201,191 212,170 344,080
Total Government Activities 49,974,203 51,201,868 58,245,712 63,186,769
Business-Type Activities:
Investment earnings 28,522 44,536 91,623 121,486
Aid from other government agencies 40,735 1,309,893
Transfers (15,720) (201,191) (212,170) (344,080)
Total Business-Type Activities 53,537 1,153,238 (120,547) (222,594)
Total Primary Government $50,027,740 $52,355,106 $58,125,165 $62,964,175
Component Unit:
San Rafael Sanitation District
Property Taxes $125,959 $179,479 $755,763 $803,071
Investment earnings 117,348 237,206 367,887 341,032
Miscellaneous 3,546
Aid from other governmental agencies 609,419 645,804 340,642 577,860
Total Component Unit $852,726 $1,062,489 $1,464,292 $1,725,509
Change in Net Position
Governmental Activities ($1,566,415) ($2,673,917) ($582,984) $374,437
Business-Type Activities 205,662 1,417,107 11,245 657,107
Total Primary Government ($1,360,753) ($1,256,810) ($571,739) $1,031,544
Change in Net Position
Component Unit Activities $1,625,137 $1,254,347 $2,665,776 $3,001,178
Fiscal Year Ended June 30,
130
2009 2010 2011 2012 2013 2014
$21,978,859 $21,684,131 $21,632,733 $20,107,637 $17,317,772 $18,439,619
21,970,262 19,055,124 21,623,445 22,355,749 24,262,282 27,758,971
3,210,317 3,489,494 3,661,064 3,807,545 3,804,985 3,816,070
197,989 171,518 297,425
1,678,912 1,558,243 1,644,262 1,866,575 2,185,287 2,332,277
2,941,149 2,868,332 2,990,539 3,076,094 3,331,160 3,260,958
2,405,934 2,317,664 2,296,460 2,332,146 2,507,785 2,588,728
1,561,835 1,411,583 1,930,531 3,574,918 2,929,915 3,452,171
717,968 302,180 176,502 205,413 991,762 184,171
221,791
461,224 541,390 1,496,174 542,816 2,580,882 1,140,743
361,190 458,300 463,600 57,960 423,817 449,917
57,485,639 54,079,750 58,212,735 57,926,853 60,335,647 63,423,625
49,084 17,678 11,878 7,675 3,739 4,375
(361,190) (458,300) (463,600)(57,960) (423,817) (449,917)
(312,106) (440,622) (451,722)(50,285) (420,078) (445,542)
$57,173,533 $53,639,128 $57,761,013 $57,876,568 $59,915,569 $62,978,083
$855,511 $823,187 $1,214,519 $1,192,566 $1,177,469 $1,345,018
206,752 93,274 59,265 38,191 25,591 151,729
3,540
381,144 415,391 6,499 9,613 56,589 22,125
$1,446,947 $1,331,852 $1,280,283 $1,240,370 $1,259,649 $1,518,872
($4,083,292) ($8,709,243) ($7,620,587) $2,938,312 $12,447,808 $2,898,596
579,149 (212,416) (226,140)404,408 25,241 (85,624)
($3,504,143) ($8,921,659) ($7,846,727) $3,342,720 $12,473,049 $2,812,972
$2,870,617 $3,804,047 $3,826,432 $3,423,480 $3,503,690 $3,873,313
131
CITY SAN RAFAEL
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
As of June 30
2005 2006 2007 2008 2009
General Fund
Pre-GASB 54 Presentation:
Reserved $2,442,881 $2,335,391 $905,068 $2,196,153 $2,225,775
Unreserved 5,779,680 3,362,151 5,016,929 4,022,612 1,670,455
GASB 54 Presentation:
Nonspendable
Restricted
Committed
Assigned
Total General Fund $8,222,561 $5,697,542 $5,921,997 $6,218,765 $3,896,230
All Other Governmental Funds
Pre-GASB 54 Presentation:
Reserved $26,599,557 $21,603,724 $20,773,760 $17,599,142 $16,680,568
Unreserved, reported in:
Special Revenue Funds 5,628,187 7,168,753 8,107,477 7,413,808 8,641,239
Capital Project Funds 35,430 (1,030,293)
Debt Service Funds 4,734,986 3,315,764 3,360,540
Expendable Trust Fund
GASB 54 Presentation:
Nonspendable
Restricted
Committed
Assigned
Total all other governmental funds $32,227,744 $28,772,477 $33,616,223 $28,364,144 $27,652,054
(a) The change in total fund balance for the General Fund and other governmental funds
is explained in Management's Discussion and Analysis.
(b) The City adjusted certain beginning balances during fiscal year 2013-2014. Financial data shown for preceding years were
not adjusted for the presentation.
($5,000)
$5,000
$15,000
$25,000
$35,000
$45,000
$55,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Th
o
u
s
a
n
d
s
Total Fund Balance
132
2010 2011 2012 2013 2014
$1,763,622
5,038,173
$589,833 $527,509 $527,235 $503,338
200,238 76,188
555,561 651,121 800,876
5,439,879 1,516,644 2,476,676 6,866,149
$6,801,795 $6,785,511 $2,771,462 $3,804,787 $7,369,487 (a)
$15,352,723
8,778,027
4,527,627
377,180 $788,031 $51,521 $8,719
19,289,367 16,856,959 20,769,546 30,185,064
3,864,322 5,135,257 8,447,495 2,185,825
4,124,029 5,283,559 6,511,850 4,959,533
$28,658,377 $27,654,898 $28,063,806 $35,780,412 $37,339,141
133
CITY OF SAN RAFAEL
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2005 2006 2007 2008 2009
Revenues
Taxes and special assessments $42,901,520 $44,901,544 $52,472,246 $56,129,195 $51,019,143
Licenses and permits 929,993 1,175,030 1,157,981 1,489,748 1,472,913
Fines and forfeitures 1,088,459 622,494 515,528 797,081 660,338
Use of money and properties 1,244,406 1,316,558 1,744,688 1,584,508 847,120
Intergovernmental 10,522,095 11,705,917 12,760,496 12,081,968 17,518,670
Charges for services 11,407,622 13,104,572 13,504,621 15,607,460 16,384,265
Other revenue 1,135,485 1,475,078 1,468,743 815,704 759,320
Total Revenues 69,229,580 74,301,193 83,624,303 88,505,664 88,661,769
Expenditures
Current:
General government 5,539,191 6,200,338 8,188,999 8,288,170 8,059,526
Public safety 31,784,872 33,321,967 36,264,321 40,299,862 41,209,972
Public works and parks 9,294,419 10,622,585 11,972,537 13,641,665 12,926,646
Community development 3,763,614 4,184,084 4,319,042 5,786,661 5,572,079
Culture and recreation 7,538,607 8,409,833 9,005,370 9,820,365 10,233,361
Capital outlay 1,027,267 60,411 6,716,630 6,243,517 5,048,044
Capital improvement / special projects 9,253,661 13,200,872 1,189,613 5,124,091 6,606,857
Debt service:
Capitalized lease obligation 141,197 130,315
Principal 2,585,000 2,525,000 2,287,255 2,504,370 2,714,358
Interest and fiscal charges 2,140,673 1,878,265 1,829,091 1,776,354 1,683,240
Total Expenditures 73,068,501 80,533,670 81,772,858 93,485,055 94,054,083
Excess (deficiency) of revenues over
(under) expenditures (3,838,921) (6,232,477) 1,851,445 (4,979,391) (5,392,314)
Other Financing Sources (Uses)
Issuance of debt
Payment to refunded bonds
Bond premiums
Capital lease for equipment acquisition 318,000
Proceeds from PG&E loans
Proceeds from sale of capital asset
Transfers in 8,636,544 6,925,107 6,812,260 6,353,216 8,972,495
Transfers (out) (7,740,324) (6,672,916) (6,958,046) (6,329,136) (6,614,806)
Total other financing sources (uses) 896,220 252,191 172,214 24,080 2,357,689
Extraordinary Item
Transfer to Successor Agency
Net Change in fund balances ($2,942,701) ($5,980,286) $2,023,659 ($4,955,311) ($3,034,625)
Debt service as a percentage of
noncapital expenditures 7.8% 6.7% 5.6% 5.2% 5.3%
Fiscal Year Ended June 30,
134
2010 2011 2012 2013 2014
$47,678,541 $51,448,130 $51,395,116 $51,549,306 $56,686,142
1,518,819 1,416,772 1,648,890 1,929,387 1,934,755
787,411 862,820 801,758 734,005 669,553
433,874 380,720 315,561 325,043 363,089
13,001,703 11,864,127 10,537,396 11,869,889 11,953,308
15,787,325 15,888,750 19,649,433 23,575,374 19,949,333
716,760 1,026,845 870,957 4,092,411 2,045,407
79,924,433 82,888,164 85,219,111 94,075,415 93,601,587
7,997,067 6,863,142 8,783,873 10,529,480 8,678,833
39,574,091 40,967,352 39,311,551 41,377,062 41,900,762
10,731,669 10,666,176 11,518,822 12,002,448 13,697,957
4,398,594 4,527,351 3,755,504 2,961,275 3,296,375
9,605,684 10,067,822 10,345,673 10,591,057 11,106,367
1,890,559 1,745,483 1,312,383 4,009,454 2,154,900
3,436,608 6,240,861 3,604,171 5,284,720 7,168,776
2,804,258 2,530,338 2,518,320 208,642
1,979,372 1,448,910 735,221 283,805 327,350
82,417,902 85,057,435 81,885,518 87,039,301 88,539,962
(2,493,469) (2,169,271) 3,333,593 7,036,114 5,061,625
14,660,000
(14,315,000)
1,038,185
568,481
221,791
7,494,560 5,806,834 4,539,646 8,425,474 3,655,302
(6,411,150) (4,657,326) (4,864,293) (6,711,657) (3,053,865)
2,688,386 1,149,508 (324,647) 1,713,817 1,169,918
(2,352,584)
$194,917 ($1,019,763)$656,362 $8,749,931 $6,231,543
6.2%5.2%4.2%0.4%0.7%
135
CITY OF SAN RAFAEL
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
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)
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%
2013 7,265,617,525 1,987,170,644 245,917,096 115,453,836 9,614,159,101 384,534,108 9,998,693,209 9,998,693,209 0.17456%
2014 7,558,708,224 2,009,718,415 245,674,195 130,594,237 9,944,695,071 402,261,887 10,346,956,958 10,346,956,958 0.11985%
Source: HdL Coren & Cone, Marin County Assessor 2004/05-2013/14 Combined Tax Rolls
a)
b)
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.
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.
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Mi
l
l
i
o
n
s
Unsecured Property Secured Property
136
Fiscal School Misc. Special
Year City County (1)Districts Districts Total
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 1.2779
2013 0.154 0.295 0.7743 0.0461 1.2691
2014 0.154 0.295 0.7890 0.0461 1.2838
Notes:
(1) Like other cities, San Rafael includes several property tax rate areas with different rates. A mean average is indicate
Source: Marin County Assessors Office 2004/05 - 2013/14 Tax Rate Tables
CITY OF SAN RAFAEL
PROPERTY TAX RATES
ALL OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
137
CITY OF SAN RAFAEL
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Northgate Mall Associates $136,409,102 1.32% $81,704,246 1.06%
California Corporate Center AC 108,029,829 1.04% 45,612,096 0.59%
Sutter Health 50,624,561 0.49%
Robert Dickson Trust 46,092,851 0.45%0.00%
Regency Center II Associates LP 43,570,118 0.42% 37,740,887 0.49%
Northbay Properties 11 43,244,732 0.42% 31,274,028 0.41%
Bay Apartment Communities Inc 41,487,664 0.40% 32,016,734 0.42%
Marin Sanitary Service 38,913,644 0.38% 29,776,150 0.39%
33 North Associates LLC 37,701,909 0.36%
Autodesk Inc.36,232,837 0.35%
AMG Realty Partners LP 67,764,602 0.88%
Lucas Digital Ltd. LLC 34,446,736 0.45%
Rafael Town Center Investors LLC 29,576,303 0.38%
BIT Holdings Forty-Five Inc.29,441,403 0.38%
Subtotal $582,307,247 5.63% $419,353,185 5.44%
Total Net Assessed Valuation:
Fiscal Year 2013-2014 $10,346,956,958
Fiscal Year 2004-2005 $7,704,064,783
2013-14 2004-2005
138
Delinquent taxes
Fiscal as a Percent of
Year Rate Levies Allocations Collections ApportionmentsDelinquencies Allocations
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%
2013 1.00 (2)20,883,041 (2)20,883,041 (2)0.0%
2014 1.00 (2)22,001,357 (2)22,001,357 (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
CITY OF SAN RAFAEL
PROPERTY TAX LEVIES AND COLLECTIONS (1)
LAST TEN FISCAL YEARS
$6
$9
$12
$16
$19
$22
$25
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Mi
l
l
i
o
n
s
Allocations
Apportionments
139
CITY OF SAN RAFAEL
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
RDA Tax Financing Court Fine Capitalized Pension
Fiscal Allocation Authority Note Promissory Lease Obligation
Year Bonds Revenue Bonds Payable Note Obligations Bonds Total
2005 $41,514,004 $1,685,000 $169,000 - - - $43,368,004
2006 40,849,107 1,155,000 169,000 - $412,441 - 42,585,548
2007 39,217,501 950,000 169,000 $1,029,717 596,927 - 41,963,145
2008 37,537,161 780,000 169,000 816,119 401,155 - 39,703,435
2009 35,793,692 455,000 169,000 594,100 198,816 - 37,210,608
2010 35,355,988 - 169,000 363,328 135,330 - 36,023,646
2011 33,298,499 - 169,000 124,222 69,098 $4,490,000 38,150,819
2012 - - 169,000 - - 4,490,000 4,659,000
2013 - - 169,000 - - 4,490,000 4,659,000
2014 - - 528,839 - - 4,490,000 5,018,839
Parking Total Percentage
Fiscal Services Note Primary of Personal Per
Year Bonds Payable Total Government Income (a)Capita (a)
2005 $7,605,000 - $7,605,000 $50,973,004 2.14% $890.76
2006 7,455,000 - 7,455,000 50,040,548 1.97% 872.56
2007 7,300,000 - 7,300,000 49,263,145 1.85% 848.68
2008 7,140,000 - 7,140,000 46,843,435 1.73% 804.39
2009 6,975,000 - 6,975,000 44,185,608 1.67% 757.08
2010 6,805,000 - 6,805,000 42,828,646 1.85% 728.11
2011 6,630,000 - 6,630,000 44,780,819 1.87% 770.28
2012 6,445,000 - 6,445,000 11,104,000 0.46% 190.45
2013 6,445,000 - 6,445,000 11,104,000 0.44% 190.85
2014 6,200,000 $61,836 6,261,836 11,280,675 n/a 192.61
Notes : Debt amounts exclude any premiums, discounts, or other amortization amounts.
In August 2012, the series 2003 parking services bonds were refunded with series 2012 refunding bonds.
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.
Business-Type Activities
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Mi
l
l
i
o
n
s
Total Governmental Total Business
140
CITY OF SAN RAFAEL
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 2014
2012-13 Assessed Valuation:$10,346,956,958
Redevelopment Incremental Valuation:2,254,465,757
Adjusted Assessed Valuation:$8,092,491,201
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2014 % Applicable (1) Debt 6/30/14
Marin Community College District $220,770,000 17.627% 38,915,128
San Rafael High School District 45,315,315 78.208% 35,440,202
Tamalpais Union High School District 143,535,000 0.081% 116,263
Dixie School District 5,815,810 66.361% 3,859,430
Ross School District 20,399,941 1.546% 315,383
Ross Valley School District 42,074,867 0.015%6,311
San Rafael School District 53,105,819 84.432% 44,307,247
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $122,959,964
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Marin County Certificates of Participation $71,687,267 17.597% $12,614,808
Marin County Pension Obligations 106,085,000 17.597% 18,667,777
Marin County Transit District General Fund Obligations 169,271 17.597%29,787
Marin Municipal Water District General Fund Obligations 137,712 22.606%31,131
Marin Community College District Certification of Participation 2,675,834 17.627% 471,669
San Rafael School District Certificates of Participation 3,765,000 83.432% 3,141,215
City of San Rafael General Fund Obligations 9,216,414 100.000% 9,216,414 (2)
City of San Rafael Pension Obligations 4,490,000 100.000% 4,490,000
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $48,662,801
Less: City of San Rafael obligations supported by enterprise revenues 6,261,836
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 42,400,965
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):22,829,004 100.000% 22,829,004
TOTAL GROSS DIRECT DEBT $13,706,414
TOTAL NET DIRECT DEBT $7,444,578
TOTAL OVERLAPPING DEBT $180,745,355
GROSS COMBINED TOTAL DEBT $194,451,769 (3)
NET COMBINED TOTAL DEBT $188,189,933
(2) Include city's share of Marin Emergency Radio Authority refunding revenue bonds and $590,675 PG&E notes.
Ratios to 2013-14 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.19%
Total Gross Direct Debt ($13,706,414)0.13%
Total Net Direct Debt ($7,444,578)0.07%
Gross Combined Total Debt 1.88%
Net Combined Total Debt 1.82%
Ratios to Redevelopment Incremental Valuation ($2,254,465,757):
Total Overlapping Tax Increment Debt 1.01%
Source: MuniServices
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentage were
estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's
total taxable assessed value.
141
ASSESSED VALUATION:$10,346,956,958
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)$388,010,886
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:5,018,839
LEGAL BONDED DEBT MARGIN $382,992,047
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
2005 $288,902,692 $43,368,004 $245,534,688 17.66%
2006 311,727,085 42,585,548 269,141,537 15.82%
2007 337,021,287 41,963,145 295,058,142 14.22%
2008 357,440,434 39,703,435 317,736,999 12.50%
2009 376,420,238 37,210,608 339,209,630 10.97%
2010 381,164,135 36,023,646 345,140,489 10.44%
2011 376,057,576 38,150,819 337,906,757 11.29%
2012 378,920,952 4,659,000 374,261,952 1.24%
2013 374,950,995 4,659,000 370,291,995 1.26%
2014 388,010,886 5,018,839 382,992,047 1.31%
NOTE: (a)
Source: City of San Rafael's Management Service Department
CITY OF SAN RAFAEL
COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2014
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
142
CITY OF SAN RAFAEL
REVENUE BOND COVERAGE
PARKING FACILITY
LAST TEN FISCAL YEARS
Debt Service Requirements
Net Revenue
Fiscal Gross Operating Available for
Year Revenue (1) Expenses (2) Debt Service Principal Interest Total Coverage
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
2013 3,994,446 3,121,964 872,481 310,000 240,012 550,012 1.59
2014 4,489,769 3,391,581 1,098,188 245,000 210,063 455,063 2.41
Notes: On March 26, 2003, the City Financing Authority issued lease revenue bonds for the design and construction of a new p
On August 12,2012 , the City Financing Authority refunded the series 2003 lease revenue bonds with series 2012 lease
revenue refunding bonds to take advantage of lower interest rates.
(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
0.00
1.00
2.00
3.00
4.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Coverage
143
CITY OF SAN RAFAEL
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Personal Per Capita Average Marin City
Fiscal City Income (2)Personal Unemployment County Population
Year Population (1)(in thousands)Income (2) Rate (3)Population % of County
2005 $57,224 $2,382,096 $41,765 4.70% 252,485 22.66%
2006 57,349 2,544,221 44,400 4.20% 253,341 22.64%
2007 58,047 2,663,922 46,152 4.40% 255,982 22.68%
2008 58,235 2,703,213 46,557 5.60% 257,406 22.62%
2009 58,363 2,642,978 45,288 9.30% 258,618 22.57%
2010 58,822 2,317,704 39,402 9.80% 260,651 22.57%
2011 58,136 2,389,222 40,978 8.80% 254,692 22.83%
2012 58,305 2,438,291 41,908 5.50% 254,790 22.88%
2013 58,182 2,538,895 43,351 4.70% 254,007 22.91%
2014 58,566 n/a n/a 5.30% 255,846 22.89%
Source (1) State of California, Department of Finance - Demographic Research Unit. The data represents the City's populatio
January 1, of each year.
(2) Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce. Data is M
(3) Employment Development Department, Labor Market Information Division. Data represents Marin county-wide ra
only and is not seasonally adjusted.
0.00%
2.50%
5.00%
7.50%
10.00%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Unemployment Rate (%)
22.00%
22.50%
23.00%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
City Population as a % of County Population
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Personal Income (2) (in thousands)
$30
$35
$40
$45
$50
Th
o
u
s
a
n
d
s
Per Capita Personal Income…
144
Employer # (A) # (A) # (A) # (A) # (A) # (A)
Kaiser Permanente 1,637 5.26% 1,756 5.74%1,803 6.68% 1,330 4.93% 1,311 4.88% 2,267 8.15%
Autodesk, Inc. 1,095 3.52% 1,000 3.27% 878 3.25% 928 3.44% 1,028 3.83% 1,200 4.32%
City of San Rafael 666 2.14% 643 2.10% 521 1.93% 592 2.19% 630 2.34% 633 2.28%
San Rafael Elementary/High Schools Dist(s) 600 1.93% 600 1.96% 600 2.22% 600 2.22% 600 2.23% 575 2.07%
Macy's 380 1.22% 380 1.24% 380 1.41% 450 1.67% 445 1.66% - -
Bradley Real Estate 385 1.24% 369 1.21% 376 1.39% 350 1.30% - - - -
MHN 350 1.14% 350 1.30% 350 1.30% 350 1.30% - -
Dominican University of California 354 1.14% 347 1.13% 346 1.28% 336 1.24% 370 1.38% 508 1.83%
Wells Fargo Bank 308 0.99% 334 1.09% - - - - - - - -
Community Action Marin 300 0.96% 300 0.98% - - - - - - - -
Ghilotti Bros. - - - - - - - - - - 240 0.86%
Safeway - - - - 841 3.11% 452 1.67% 452 1.68% - -
Comcast - - - - 620 2.30% 619 2.29% 619 2.30% - -
Guide Dogs for the Blind -- -- -- --2871.07%--
Golden Gate Bridge Highway & Transp. Dist. - - - - - - - - - - 828 2.98%
Fair Issac Corp 300 0.96% - - - - - - - - 350 1.26%
YMCA -- -- -- -- --3481.25%
San Rafael City High School District -- -- -- -- --2500.90%
Totals 6,025 19.37% 6,079 19.87% 6,715 24.87% 6,007 22.25% 6,092 22.67% 7,199 25.90%
# - Number of employees
(A) percentage of total employment
Source: State of California, Employment Development Department, Labor Market Information Division
San Francisco Business Times, Annual Book of Lists
Note: Total employment in the City of San Rafael as of June 2014 was 31,100
*- The number of total employment for the City is available for the last six years only.
2012* 2011* 2010* 2009*
CITY OF SAN RAFAEL
PRINCIPAL EMPLOYERS
FISCAL YEAR 2013-2014
LAST SIX YEARS
2014* 2013*
145
CITY OF SAN RAFAEL
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
As of June 30,
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Function
General Government 47.02 53.71 59.38 59.88 58.88 56.88 54.35 55.23 53.23 55.11
Public Safety 193.13 188.86 189.00 186.00 183.00 165.00 166.00 162.00 163.00 168.00
Public Works and Parks 72.80 74.80 76.80 78.80 78.80 60.80 62.80 62.00 60.00 61.00
Community Development 26.75 26.43 31.00 34.50 34.50 26.75 26.75 18.25 18.25 17.80
Culture and Recreation 79.73 77.49 80.22 85.90 85.90 83.49 89.82 81.56 80.76 83.66
Total 419.43 421.29 436.40 445.08 441.08 392.92 399.72 379.04 375.24 385.57
Source: City of San Rafael
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
FT
E
'
s
General Government Public Safety
Public Works and Parks Community Development
Culture and Recreation
146
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2005 2006 2007 2008
Function/Program
Public safety:
Fire:
Inspection permit issued N/A N/A 143 217
Police:
Police calls for service N/A N/A 43,480 43,488
Law violations:
Part I crimes N/A N/A 2,557 2,314
Physical arrests (adult and juvenile)N/A N/A 3,809 4,182
Traffic violations N/A N/A 5,197 9,241
Parking violations 39,421 33,610 36,228 42,481
Public works
Street resurfacing (miles) (Eng Div)6.80 1.08 N/A 4.95
Potholes repaired (square miles)N/A N/A N/A N/A
Asphalt used for street repairs (tons)N/A N/A N/A N/A
Culture and recreation:
Recreation class participants 7,000 8,000 8,000 8,000
Items in collection (thousands)
Library:
Items in collection (thousands)121.81 123.12 124.46 N/A
Total items borrowed (thousands)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
Note: N/A denotes information not available.
As of June 30
148
2009 2010 2011 2012 2013 2014
196 307 294 282 307 261
42,227 42,227 39,512 39,537 42,707 51,261
2,352 2,352 2,180 2,101 2,523 2,289
4,487 4,487 3,102 2,981 2,951 3,227
5,777 5,777 8,190 4,048 3,448 4,498
44,913 42,806 34,590 32,492 30,881 38,814
2.77 2.77 7.40 N/A 2.70 9.00
N/A N/A N/A N/A N/A N/A
N/A N/A 10,809 178.9 7,500 10,700
8,000 9,524 9,000 12,075 7,082 9,857
124.40 151.88 158.30 159.18 125.92 168.62
N/A 371.12 435.66 366.46 392.23 478.96
6.976 6.976 6.976 6.976 6.976 6.976
149
2005 2006 2007 2008 2009
Function/Program
Public safety:
Fire stations 66666
Police stations 11111
Police Fleet
Public works
Miles of streets 172 173 173 173 173
Street lights 4,333 4,435 4,435 4,435 4,435
Parking District lights
Traffic Signals 85 89 89 89 89
Culture and recreation:
Community services:
City parks 19 19 19 20 20
City parks acreage 41 41 41 42 42
Playgrounds 13 13 13 14 14
City trails 15 15 20 20 20
Community gardens 21111
Community centers 4444 4
Senior centers 00000
Sports centers 00000
Performing arts centers 00000
Swimming pools 11111
Tennis courts 10 10 10 10 10
Basketball Courts 55555
Baseball/softball diamonds 55555
Soccer/football fields 22222
Library:
City Libraries 11112
(1) Source: City of San Rafael
CITY OF SAN RAFAEL
CAPTIAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
150
2010 2011 2012 2013 2014
66666
11111
173 173 173 173 173
4,435 4,435 4,435 4,435 4,435
89 89 89 89 89
20 20 20 20 20
42 42 42 42 42
14 14 14 14 14
20 20 20 20 20
11111
44444
00000
00000
00000
11111
10 10 10 10 10
55555
55555
22222
22222
151
This Page Left Intentionally Blank