HomeMy WebLinkAboutFY2014-15 CAFR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2015
View overlooking San Rafael and the Bay
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2015
City of San Rafael, California
1400 Fifth Avenue
San Rafael, California 94901
Prepared by the Finance Department of the City of San Rafael
Downtown San Rafael
INTRODUCTORY
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2015
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 Achievement 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 ............................................................................................................. 25
Statement of Activities .................................................................................................................. 26
Fund Financial Statements:
Major Governmental Funds:
Balance Sheet ............................................................................................................................ 30
Balance Sheet - Reconciliation of Governmental Fund Balances to
Net Position of Governmental Activities .............................................................................. 31
Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 32
Reconciliation of the Net Change in Fund Balances - Total Governmental
Funds with the Statement of Activities ................................................................................. 33
Proprietary Funds:
Statement of Net Position .......................................................................................................... 36
Statement of Revenues, Expenses, and Changes in Fund Net Position .................................... 37
Statement of Cash Flows ........................................................................................................... 38
i
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2015
Table of Contents
FINANCIAL SECTION (Continued)
Fiduciary Funds:
Statement of Fiduciary Net Position ......................................................................................... 40
Statement of Changes in Fiduciary Net Position ....................................................................... 41
Notes to Basic Financial Statements .................................................................................................. 43
Required Supplementary Information:
Schedule of the City’s Proportionate Share of the Net Pension Liability ..................................... 88
Schedule of Contributions – Last 10 Years .................................................................................. 89
Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual -
Budgetary Basis
General Fund ............................................................................................................................. 92
Traffic and Housing Mitigation Special Revenue Fund ............................................................ 93
Gas Tax Special Revenue Fund ................................................................................................. 94
Supplementary Information:
Non-major Governmental Funds:
Combining Balance Sheets ......................................................................................................... 100
Combining Statements of Revenues, Expenditures, and Changes
in Fund Balance ................................................................................................................... 106
Budgeted Non-major Government Funds:
Combining Schedules of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual ...................................................................... 112
Internal Service Funds:
Combining Statements of Net Position ....................................................................................... 122
Combining Statements of Revenues, Expenses and Changes in Fund Net Position ................... 124
Combining Statements of Cash Flows ........................................................................................ 126
Agency Funds:
Combining Statements of Changes in Assets and Liabilities ...................................................... 130
ii
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2015
Table of Contents
STATISTICAL SECTION
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ............................................................................. 134
Changes in Net Position – Last Ten Fiscal Years .................................................................................... 136
Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................................................ 140
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .......................................... 142
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ............................ 144
Property Tax Rates - All Overlapping Governments– Last Ten Fiscal Years ........................................ 145
Principal Property Tax Payers – Current Year and Nine Years Ago ...................................................... 146
Property Tax Levies and Collections – Last Ten Fiscal Years ............................................................... 147
Debt Capacity:
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ................................................................. 148
Computation of Direct and Overlapping Debt ........................................................................................ 149
Computation of Legal Bonded Debt Margin .......................................................................................... 150
Revenue Bond Coverage Parking Facility – Last Ten Fiscal Years ....................................................... 151
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years ............................................................ 152
Principal Employers – Last Seven Calendar Years ................................................................................ 153
Operating Information:
Full-Time Equivalent City Government Employees by Function
– Last Ten Fiscal Years ....................................................................................................................... 155
Operating Indicators by Function/Program – Last Ten Fiscal Years ...................................................... 156
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .................................................. 158
iii
1400 5TH AVENUE · SAN RAFAEL, CA 94901
WWW.CITYOFSANRAFAEL.ORG
December 22, 2015
Honorable Mayor, Members of the City Council and Residents of San Rafael:
The Comprehensive Annual Financial Report (“CAFR”) of the City of San Rafael (“City”) for the year
ended June 30, 2015, is hereby submitted as required by local ordinances, state statutes and bond covenants.
This financial report has been prepared in conformance with Generally Accepted Accounting Principles as
promulgated by the Governmental Accounting Standards Board and includes the report of the independent
certified public accounting firm, Maze and Associates Accountancy Corporation, which has issued an
unqualified, or “clean” opinion on the City’s financial statements for the fiscal year ended June 30, 2015.
The independent audit of the financial statements is part of a broader, federally mandated examination
known as a “Single Audit”, which is designed to meet the needs of federal grantor agencies. The standards
governing Single Audits require the independent auditor to report on the audited agency’s internal controls
and compliance with legal requirements, with special emphasis on such controls and requirements
involving the administration of federal funding. These reports will be available in the City’s separately
issued Single Audit Report.
City Management is responsible for both the data accuracy, and the completeness and fairness of the
presentation of this report. To the best of our knowledge and belief, the data presented is accurate in all
material respects and is reported in a manner that presents fairly the financial position and results of
operations of the various funds and component units of the City. Further, the CAFR is prepared in
accordance with procedures and policies set by the Government Finance Officers Association. The analysis
of the financial condition and the result of operations can be found in the financial section of the
Management’s Discussion and Analysis document. The CAFR is organized into three sections:
1. Introductory section, which is unaudited, includes this letter of transmittal, an organizational chart and a
list of the City’s elected and appointed officials.
2. Financial section, includes the general-purpose financial statements, related footnote disclosures, and
the combining and individual fund and account group financial statements and schedules, as well as the
independent auditors' report.
3. Statistical section, which is unaudited, includes selected financial and demographic information,
presented on a multi-year basis. Generally, ten-year data is presented for expenditures, revenues,
assessed valuation for local properties and construction activity.
v
CAFR TRANSMITTAL LETTER
The most significant change in the presentation of the City’s financial statements is the implementation of
Governmental Accounting Standards Board Statement No. 68 (GASB 68), Accounting and Financial
Reporting for Pensions. The purpose of this reporting requirement is to improve the decision-making
usefulness of information in financial reports and enhance its value for assessing accountability and inter-
period equity by requiring recognition of the entire net pension liability and a more comprehensive measure
of pension expense. The implementation of GASB 68 required a prior period adjustment to the City’s net
position as of July 1, 2014.
For the purpose of preparing the fiscal year 2014-2015 financial statements, the City used the most current
net pension liability information that had been provided by MCERA at the time of the audit.
Following the completion of the audit (opinion dated September 30, 2015), on November 4, 2015, MCERA
issued its GASB 67/68 Report as of June 30, 2015. The auditor’s opinion has been dual dated, in order to
accommodate the disclosure of this subsequently acquired information in the financial statements. More
detailed information can be found in the Management’s Discussion and Analysis and in Note 9D – Pension
Plans in the financial section of this report.
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 19 city parks, 393 acres of developed parkland, city and county open space,
and China Camp State Park. San Rafael is close to other attractions, including the Golden Gate Bridge,
Muir Woods, Point Reyes National Seashore, Mount Tamalpais, multiple state parks, San Francisco,
Oakland and the Sonoma and Napa 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 while the mayor is elected separately to a four-year term. The City’s land area is 22
square miles, including seventeen square miles of land and 5 of water and tidelands. San Rafael's
population on January 1, 2015 was 59,214, an increase of 1.1% from the January 1, 2014 population of
58,566.
Downtown San Rafael is the location of many community events, including the May Madness Classic Car
Parade, Thursday night Farmers Market Festivals six months out of the year, Second Friday Art Walks, the
Twilight Criterium Bike Race, Mill Valley Film Festival, Winter Wonderland/Parade of Lights, and many
more. San Rafael is also the heart of the County’s cultural activities with venues such as the Marin Center,
which presents numerous ballets, concerts, speaking engagements as well as the award winning Marin
County Fair; the Falkirk Cultural Center, providing art exhibits and children's programming; the
Christopher B. Smith Film Center, and a host of other diverse dining and entertainment venues. 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
vi
CAFR TRANSMITTAL LETTER
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, and now conducts its economic development activities with funding from its General Fund.
The City and California Municipal Finance Authority compose the San Rafael Joint Powers Financing
Authority, 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 Note 1 – Summary of Significant Accounting Policies in the
Financial Section of the CAFR.
The City participates in various organizations through formally organized and separate entities
established under the Joint Exercise of Powers Act of the State of California. As separate legal entities,
these agencies exercise full powers and authorities within the scope of the related Joint Powers
Agreement including the preparation of annual budgets, accountability for all funds, and the power to
make and execute contracts. Obligations and liabilities of the separate entities are not those of the City.
For a further explanation of these separate entities, refer to Note 12 – Jointly Governed Organizations in the
CAFR.
ECONOMIC FACTORS
The City has a diversified economic base, which includes an assortment of high-tech, financial, service-
based, entertainment and industrial businesses. Downtown San Rafael provides a mix of restaurants, retail
shops and financial institutions. The City’s varied economic base is reflected also in its diverse property tax
base, which is 77% residential, 18% commercial, 2% industrial, 1% unsecured and others. The top 50 sales
tax producers provide 61% of overall sales tax revenues.
Fiscal year 2014-2015, marked the first full year of the Measure E Transaction Use Tax (TUT). This 0.75%
tax took effect in April 2014, supplanting the former TUT (Measure S) of 0.50%. The revenue from this
tax is projected to reach $11.5 million, with one-third of the funds allocated to public safety facilities
construction and improvements. Total Measure E revenues account for 16% of General Fund Revenues.
Property-related taxes are projected to increase by approximately 5%. All other revenues, including
business tax, franchise tax, charges for services and permit fees are expected to experience modest
increases.
It is anticipated that the 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
The following is a sample of demographic and economic attributes that make San Rafael an exceptional
place to live and work.
vii
CAFR TRANSMITTAL LETTER
Economic development organizations in San Rafael include the San Rafael Chamber of Commerce,
Downtown Business Improvement District, and the Marin Economic Forum.
Marin County’s top 10 employers include Kaiser Permanente, Marin General Hospital, BioMarin
Pharmaceutical, Autodesk, Dominican University of California, Bradley Real Estate, Macy’s, Wells
Fargo, FICO, and W Bradley Electric.
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).
The top three sales tax categories in 2014 for San Rafael were: 1. Autos and Transportation (30%), 2.
General Consumer Goods (18%), and 3. Building and Construction (15%).
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 787.
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 $1,700 to $2,500, while two bedroom
apartments go for $2,200 to $3,700. The median home value in San Rafael is $836,900.
Recent growth and economic vibrancy:
BioMarin Pharmaceutical recently completed a new research and development building (86,000
sq. ft.) along with a 600 space parking garage.
BioMarin Pharmaceutical is seeking entitlements for a new office building (72,000 sq. ft.) along
with the second phase of the parking garage (an additional 300 parking spaces). Should this project
be approved, the BioMarin corporate headquarters facility will include a total of 473,000 sq. ft. at its
campus.
Construction is proceeding for various infrastructure projects related to the SMART (Sonoma Marin
Area Rapid Transit) train. Train tracks, platforms and related infrastructure for the Downtown and
Civic Center Stations are all under construction. Train service is anticipated to start in 2016.
A new16-unit apartment building was built at 1867 Lincoln Avenue.
A new 10,000 sq. ft. office building (DaVita Dialysis) was built at 1415 Third Street.
A new Sprouts Market (24,000 sq. ft.) opened in early 2015.
A 40-unit apartment building at 815 B Street is proceeding with its entitlements – the current status
is that environmental documents were released for public review.
Whistlestop has submitted an application to build a 40-unit senior apartment building along with a
senior services center at its current location at 930 Tamalpais Avenue.
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 ensure
that proper accounting data is collected so as to prepare reports in conformance with generally accepted
accounting principles.
viii
CAFR TRANSMITTAL LETTER
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 her or his budget allocations consistent with
policies set by the City Council and monitored by the City Manager.
ACKNOWLEDGMENTS
The preparation of this City-wide document would not have been possible without the assistance from each
of the City’s departments. We would like to specifically call out the diligent, dedicated efforts of the
Finance Department's staff: appreciation goes to Van Bach, Accounting Manager; Carl Tregner,
Accountant; and Francis Law, Accountant. These employees were instrumental in coordinating the annual
audit in a timely and professional manner. We believe this document meets the Government Finance
Officers Association’s (GFOA) Certificate of Achievement for Excellence in Financial Reporting
requirements, and will be submitting it to the GFOA to determine its eligibility. If accepted, this will mark
the fourth consecutive year that the City received the award.
Lastly, we appreciate the ongoing leadership and support from the Mayor, City Councilmembers and the
City Council Finance Committee. Their strong commitment to financial accountability and stewardship
provide inspiration to the organization for a high level of achievement.
Respectfully submitted,
Mark Moses
Finance Director
ix
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
Andrew McCullough, Vice Mayor
Maribeth Bushey, Councilmember
Kate Colin, Councilmember
John Gamblin, Councilmember
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
Kevin McGowan, Acting Director of Public Works
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
Francis Law, 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
Plaza Sculpture
FINANCIAL SECTION
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, 2015, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements as listed in the table of contents.
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 did not audit
the component unit financial statements of the San Rafael Sanitation District, which represents 17%, 27%,
and 14%, respective, of the assets, net position, and revenue of the entity-wide reporting entity. These
component unit financial statements were audited by other auditors, whose report thereon has been
furnished to us and our opinion, insofar as it relates to the amounts included for the San Rafael Sanitation
District, is based solely on the report of these auditors. 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, 2015, 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
Pension Accounting Change - Management adopted the provisions of the following Governmental
Accounting Standards Board Statements, which became effective during the year ended June 30, 2015 that
had material effects on the financial statements, as discussed in Note 1 to the financial statements:
Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment of GASB
Statement No. 27.
Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date -
an amendment of GASB Statement No. 68.
In addition, as discussed in Note 1P, the City made prior period adjustments to the beginning net positions
of the Equipment Replacement Fund.
Additional Information on Pension Liability - As discussed in Note 9D to the financial statements, on
November 2, 2015 City staff presented the City’s financial statements, along with our original report
dated September 30, 2015 to Council for acceptance, at which time City staff and Council discussed the
Pension Accounting Change required by GASB 68. After some discussion, management elected to
include actuarial information as of June 30, 2014, under the disclosure requirement of Paragraph 80(f) of
GASB 68. This information is more recent than the June 30, 2013 actuarial information used for the
reporting of pension liability as of June 30, 2015, pursuant to GASB 68 requirements. Accordingly,
management has included more recent actuarial and related data, as it was received subsequent to the
release of our original opinion.
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 required supplementary information 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.
2
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.
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 30,
2015, 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 30, 2015 (except for Note 9D, which is as of December 22, 2015)
3
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
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, 2015. Please read it in conjunction with the basic financial statements
and the accompanying notes to those basic financial statements.
FINANCIAL HIGHLIGHTS
Government-wide:
In the fiscal year ended June 30, 2015, the City of San Rafael implemented Governmental Accounting
Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions. The implementation
of this pronouncement required a prior period adjustment and reduced the City’s net position as of
July 1, 2014, by $108.3 million of which $104.8 million was for governmental activities and $3.5 million
was for business-type activities.
Net Position – The assets of the City exceeded its liabilities as of June 30, 2015 by $151.5 million.
Activities – During the fiscal year the City’s total revenues of $104.4 million were greater than expenses for
governmental and business-type activities of $84.8 million by $19.6 million.
Changes in Net Position – The City’s total net position increased by $19.6 million in fiscal year 2014-
2015. Net position of governmental activities increased by $19.1 million, while net position of the
business-type activities increased by $0.5 million.
Fund Level:
Governmental Funds – As of the close of fiscal year 2014-2015, the City’s governmental funds reported
combined ending fund balances of $47.8 million, an increase of $7.9 million from the adjusted fund
balance of the prior year. Of this total amount, $0.4 million is nonspendable, $31.8 million is restricted,
$0.9 million is committed, $13.1 million is assigned, and $1.6 million is unassigned.
Governmental fund revenues were $95.6 million, an increase of $2.0 million from fiscal year 2014-2015.
This increase was primarily driven by the Measure E TUT revenues, which were in effect for their first full
fiscal year.
Governmental fund expenditures increased by $0.5 million to $89.0 million, from $88.5 million in the prior
year, due primarily to expenditure increases in the General Fund.
Enterprise fund operating revenue increased by $0.7 million to $5.2 million, from $4.5 million in the prior
year. This was attributable to an increase in parking rates that became effective in February 2014 and,
therefore, were in effect for the entire fiscal year. Enterprise fund operating expenses were $4.1 million, a
modest increase of $0.2 million from the prior fiscal year.
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
5
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
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.
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 tax, sales and use taxes, user
fees, interest income, franchise fees, hotel taxes, business licenses, and property transfer taxes, plus state and
federal grants finance these activities.
Business-type Activities – The City charges fees to customers to cover the full costs of certain services it provides.
The City’s Parking Services program is the City’s sole business-type activity.
Discretely Presented Component Units – The government–wide financial statements include not only the City itself
(the primary government), but also the San Rafael Sanitation District, a legally separate entity for which the City is
financially accountable. Financial information for the San Rafael Sanitation District is reported separately from the
financial information presented for the primary government.
The government-wide financial statements can be found on pages 25 through 27 of this report.
6
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
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 100 through 119 of this report.
Governmental Funds – Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information
may be useful in evaluating a government’s near-term financial capacity.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for government funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance
sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities. These
reconciliations are presented on the page immediately following each governmental fund financial statement.
The City has thirty-one governmental funds, of which three are considered major funds for presentation purposes.
Each major fund is presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances. The City’s three major funds are: the General
Fund, Gas Tax, and Traffic and Housing Mitigation. Data from the other twenty-eight governmental funds are
combined into a single, aggregated presentation. The basic governmental fund financial statements can be found
on pages 30 through 33 of this report. Individual fund data for each of these non-major governmental funds is
provided in the form of combining statements on pages 100 through 119 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;
vehicle, equipment and computer replacement; workers’ compensation; general liability; self-insured dental
program; 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.
7
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
The basic proprietary fund financial statements can be found on pages 36 through 38 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
40 through 41 of this report.
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 43
through 85 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 88 through 94 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
For financial statements beginning with the year ended June 30, 2015, the City has implemented GASB 68,
Accounting and Financial Reporting for Pensions—an amendment of GASB Statement No. 27. The intention of
this Statement is to improve the decision-making usefulness of information in employer and governmental non-
employer contributing entity financial reports and enhance its value for assessing accountability and inter-period
equity by requiring recognition of the entire net pension liability and a more comprehensive measure of pension
expense.
The implementation of GASB 68 required a restatement of the City’s June 30, 2014 ending balances, and resulted
in a $108.3 million decrease in net position as of that date. (The net positions for Governmental Activities and
Business-type activities were reduced by $104.8 million and $3.5 million, respectively.)
For the current fiscal year, the City reported total, noncurrent liabilities of $103.2 million ($94.9 million for
Governmental Activities and $8.3 million for Business-type Activities). Of this amount, $74.3 million is
attributable to the net pension liability as calculated under the audit’s measurement date of June 30, 2014.
8
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
Subsequent to the completion of the fiscal year 2014-2015 audit, the Marin County Employees’ Retirement
Association issued a new GASB 67/68 report (as of June 30, 2015) which measured the City’s net pension liability
at $142.3 million, a $68.0 million increase from the previous year. The primary factors driving the increase in were:
changes to generational mortality assumptions, a reduction in the investment rate of return from 7.50% to 7.25%,
and lower than expected investment income in fiscal year 2014-2015. (For more detailed information, see Note 9 –
Pension Plans on pages 67-74 of this report.)
During this fiscal year, the net position of the City was $141.7 million from Governmental Activities and $9.8
million from Business-type Activities, for a total of $151.5 million. This represents an increase of $19.6 million
from the prior year, restated net position.
The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2015 and 2014.
Increase Increase
2015 2014 (Decrease) 2015 2014 (Decrease)
Current and other assets $80,056 $67,001 $13,055 $2,679 $2,289 $390
Capital assets 191,074 190,815 259 16,742 17,035 (293)
Total assets 271,130 257,816 13,314 19,421 19,324 97
Deferred outflows related to pension (Note 9) 21,622 0 21,622 734 0 734
Current and other liabilities 10,664 7,901 2,763 509 385 124
Noncurrent liabilities 94,916 22,486 72,430 8,294 6,103 2,191
Total liabilities 105,580 30,387 75,193 8,803 6,488 2,315
Deferred inflows related to pension (Note 9) 45,498 0 45,498 1,546 0 1,546
Net Position:
Net investment in capital assets 190,621 190,286 335 10,745 10,786 (41)
Restricted 33,389 37,339 (3,950) 0 0 0
Unrestricted (82,336) (196) (82,140) (939) 2,050 (2,989)
Change due to Implementation of GASB 68 0 (104,830) 104,830 0 (3,528) 3,528
& GASB 71 (See Note 1)
Total net position $141,674 $122,599 $19,075 $9,806 $9,308 $498
Governmental Activities Business-Type Activities
Summary of Net Position
June 30, 2015 & 2014 (in thousands)
Governmental assets increased by $13.3 million, primarily due to increases in cash accumulated from positive
operating results and set aside for specific purposes (e.g., public safety facility construction and improvements,
emergency and cash flow reserve, and childcare reserve). In addition, a long-term receivable of $4.5 million from
San Rafael Sanitation District is now being recognized for the District’s share of pension and OPEB liabilities.
Current and other liabilities increased by approximately $2.8 million, primarily due to accrual of large invoices at
the close of the year, coupled with an increase in liability claims payable (Note 13).
The net position in business-type activities, which reflects the activity of the Parking Services program, increased
by $498 thousand from the previous year due to the first full fiscal year of operations since the parking meter rates
were increased in February 2014.
At June 30, 2015, the largest portion of net position in the amount of $201.4 million 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.
9
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
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 of $33.4 million is subject to external restrictions, and their use is determined by
those restrictions whether legal or by covenant. The remaining portion, unrestricted negative $83.3 million,
represents the extent to which the net investment in capital assets and restricted net position exceed total assets.
Invested in Capital Assets (net)$201,366
Restricted 33,389
Unrestricted (83,275)
Total Net Position $151,480
Net Position as of 6/30/2015
Total = $ 151,480 (in thousands)
10
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
Statement of Activities - Governmental
The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ended
June 30, 2015 and 2014:
Increase
2015 2014 (Decrease)
REVENUES
Program revenues:
Charges for services $19,758 $24,651 ($4,893)
Operating grants and contributions 4,186 4,698 (512)
Capital grants and contributions 1,308 763 545
Total program revenues 25,252 30,112 (4,860)
General revenues:
Property taxes 19,039 18,440 599
Sales taxes 32,270 27,759 4,511
Paramedic tax 3,820 3,816 4
Transient occupancy tax 2,662 2,332 330
Franchise tax 3,272 3,261 11
Business license tax 2,670 2,589 81
Other taxes 3,296 3,452 (156)
Investment earnings 216 184 32
Miscellaneous 2,255 1,141 1,114
Total general revenues 69,500 62,974 6,526
TOTAL REVENUES 94,752 93,086 1,666
EXPENSES
General government 9,100 9,086 14
Public safety 39,969 43,800 (3,831)
Public works and parks 16,893 22,126 (5,233)
Community/economic development 3,128 3,451 (323)
Culture and recreation 11,198 11,847 (649)
Interest on long-term debt 284 327 (43)
TOTAL EXPENSES 80,572 90,637 (10,065)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 14,180 2,449 11,731
OTHER FINANCING SOURCES (USES)
Transfers in 433 450 (17)
Total Other Financing Sources (Uses) 433 450 (17)
Special Item (See Note 4H) 4,462 0 4,462
Net Change in Net Position 19,075 2,899 16,176
Beginning Net Position as of 7/1/2014 122,599 224,530 (101,931)
Change due to implementation of
GASB 68 & 71 (See Note 1P) - (104,830) 104,830
Ending Net Position as of 6/30/2015 $141,674 $122,599 $19,075
Governmental Activities
11
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
The City’s governmental activities net position increased by $19.1 million during fiscal year 2014-2015. Charges
for services were approximately $4.9 million lower than those of the previous year. A significant portion of the
drop, $2.7 million, is due the change in the method of accounting for those of personnel reimbursements from the
San Rafael Sanitation District (SRSD), a discretely presented component unit. In previous years, the City treated
the reimbursements as charges for services; beginning in fiscal year 2014-2015, the reimbursements offset a
receivable that was established for this activity.
Meanwhile, the City recorded a $4.5 million year-over-year increase in Sales taxes, $2.8 million of which was due
to the fact that this was the first full year of the Measure E transactions and use tax. Property taxes and transient
occupancy taxes registered year-over year increases of $0.6 million and $0.3 million, respectively. Miscellaneous
revenues were up $1.1 million, led by approximately $0.8 million in delayed reimbursements of State-mandated
costs.
The fiscal year 2014-2015 governmental expenditures were $10 million less than those of the previous fiscal year.
This drop results from: 1) the implementation of GASB 68, which changed the methodology by which current
period pension expenses are reported; and 2) the change in the treatment of the SRSD personnel costs, which are no
longer reported as City expenditures.
The following graph shows governmental revenues by source:
$19,758
4,186
1,308
67,028
216 2,255
Revenues by Source
Governmental Activities
Total ‐$94,751
(in thousands)
Charges for services
Operating grants and contributions
Capital grants and contributions
Taxes
Investment earnings
Miscellaneous
12
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
Total expenses for governmental activities were $80.6 million (excluding interest on long-term debt of $284
thousand). Program revenues offset total expenditures as follows:
Those who directly benefited from programs contributed $19.8 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
$69.9 million.
Functional expenses for the year ended June 30, 2015 were as follows:
Function Amount Percent of Total
General government $9,100 11.3%
Public safety 39,969 49.6%
Public works and parks 16,893 21.0%
Community development 3,128 3.9%
Culture and recreation 11,198 13.9%
Interest on debt 284 0.3%
Total expenses $80,572 100%
Expenses by Function
For the fiscal year ended June 30, 2015 (in thousands)
13
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
Statement of Activities – Business-type
Increase
2015 2014 (Decrease)
Revenues
Program revenues:
Charges for services $5,174 $4,485 $689
Total program revenues 5,174 4,485 689
General revenues:
Miscellaneous 7 4 3
Total general revenues 7 4 3
TOTAL REVENUES 5,181 4,489 692
Expenses
General government 4,250 4,125 125
TOTAL EXPENSES 4,250 4,125 125
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 931 364 567
OTHER FINANCING SOURCES (USES)
Transfers out (433) (450) 17
Total Other Financing sources (uses)
Net Change in Net Position 498 (86) 584
Net Position, Beginning 9,308 12,922 (3,614)
Change due to implementation of
GASB 68 & 71 (See Note 1P) - (3,528) 3,528
Net Position, Ending $9,806 $9,308 $498
Summary of Changes in Net Position
June 30, 2015 & 2014 (in thousands)
Business-Type Activities
The net position for business-type activities was increased by $584 thousand in fiscal year 2015 from the prior
fiscal year. Due to the implementation of GASB 68 and 71, the beginning fund balance was reduced by $3.53
million (See Note 1P).
Parking services is the City’s only business-type activity with income derived from program revenues of $5.2
million. Program revenues include parking meter coin income of $1.9 million and parking garage hourly and
monthly parking income of $1.3 million. Revenues also include parking and non-vehicle code fines totaling $2.0
million. Total expenses for parking services were $4.3 million and transfers out to general fund and non-major
governmental fund for support totaled $433 thousand during the fiscal year 2014-2015.
14
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
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 June 30, 2015, the City reported a combined ending fund balance of $47.8 million of all its total
governmental funds (an increase of $7.9 million from the prior year restated): $0.4 million is non-spendable, $31.8
million is restricted, $0.9 million is committed, $13.1 million is assigned and $1.6 million is unassigned.
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, 2015 was $14.4 million (an increase of
$7 million from the adjusted prior year balance): $0.4 million is non-spendable, $12.4 million is assigned, and $1.6
million is unassigned. The assigned portion of the balance includes $6.5 million for emergency and cash flow
needs, which represents a 27 percent increase from the prior year and now exceeds the minimum target reserve of
ten percent of operating expenditures.
General Fund Budgetary Highlights:
The original adopted General Fund budget projected total revenue of $68.2 million and transfers-in of $1.3 million
for total resources of $69.5 million. The budget appropriated expenditures of $62.9 million and transfers-out of
$1.7 million for a total appropriation of $64.6 million.
Actual revenues, at $70.7 million, exceeded the original budgeted revenues by $2.5 million. This positive
performance was driven by tax revenues (property tax, sales tax, and transient occupancy tax) that exceeded budget
projections, coupled with the receipt of delayed SB-90 State Mandate Costs reimbursements that were not expected
to be received until later in the following fiscal year.
Fiscal year 2014-2015 General Fund revenues exceeded expenditures and net transfers by $7.0 million. Of this
amount, $3.5 million was assigned to Measure E – Public Safety Facility reserve; $1.4 million was added to the
Emergency Cash Flow reserve; $0.3 million was added to the General Plan / Long Range Planning reserve;
$0.2 million was used to establish an Infrastructure reserve; and $1.6 million was retained in Unassigned General
Fund balance.
15
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
Adopted Budget Revised Budget Actual
Revenues $68,153 $69,106 $70,747
Transfers in 1,290 1,290 1,039
Total resources 69,443 70,396 71,786
Expenditures 62,854 $63,286 63,096
Transfers out 1,650 1,698 1,698
Total uses 64,504 64,984 64,794
Net Operating Results $4,939 $5,412 $6,992
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2015 (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 decreased from
$12.6 million to $12.3 million. Revenues totaled $0.3 million, while $0.6 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 and other qualifying expenditures.
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 and net transfers by $621 thousand in fiscal year
2014-2015 and the ending fund balance increased from $7.0 million as of June 30, 2014, to $7.6 million as of June
30, 2015.
Major expenditures during fiscal year 2014-2015 include $1.7 million for H Street roadway improvements,
$1.1 million annual resurfacing of the City’s most severely worn roadways, $337 thousand for the Downtown rail
readiness project, and $516 thousand for Traffic Signal Controller Upgrades and Traffic Signal LED Relamping.
The largest sources of revenues included $1.7 million from State gasoline taxes, $809 thousand in local Measure A
funds, $1.5 million in development impact fees, and $697 thousand in reimbursements.
Non-major Governmental Funds – The City’s non-major funds are presented in the basic financial statements in
the aggregate. At June 30, 2015, non-major funds had a total fund balance of $13.5 million, a $.6 million increase
from the previous year. The increase resulted from a $378 thousand increase to the childcare operating and capital
reserves, a $474 thousand increase in Library reserves, $529 thousand increase in Parkland dedication reserves, and
$601 thousand decrease in capital project set-aside.
Of the ending total non-major fund balances of $13.5 million: $11.9 million (88%) is legally restricted for specific
purposes by external funding source providers, $0.9 million (7%) is committed for special purposes by the City
Council, and $ 0.7 million (5 %) is assigned. Additional information about these aggregated non-major funds is
presented in the combining statements which immediately follow the required supplementary information.
16
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
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 in the Summary of Changes in Net Position –
Business-type Activities at page 14, the City’s proprietary fund net position was increased by $498 thousand during
the fiscal year. The Parking Services Fund is the City’s sole business-type (Enterprise) activity.
Proprietary fund operating revenue increased by $0.7 million in fiscal year 2014-2015 to $5.2 million from
$4.5 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, and thus in effect for the entire fiscal year. The Enterprise fund operating
expenses were $4.1 million in fiscal year 2014-2015, a modest increase of $0.2 million from the prior fiscal year at
which time the parking meters were replaced.
The City’s Internal Service Funds are also reported in this Proprietary Fund classification. In fiscal year 2014-2015,
the Internal Services Funds were comprised of: Building Maintenance, Employee Benefits, Liability Insurance,
Workers’ Compensation, Dental Insurance, Employee Retirement, and OPEB/Retiree Medical. The following two
funds have now been reclassified into Internal Service Funds:
Vehicle Replacement Fund – In prior years, this fund was part of the equipment replacement fund under the major
Capital Project Fund. Effective in fiscal year 2014-2015, the city separated out the vehicle portion and established
the Vehicle Replacement Fund to manage the replacement of vehicles. In addition, this fund was reclassified from a
Capital Project Fund to an Internal Service Fund. As of June 30, 2015, the Vehicle Replacement Fund had a total
fund balance of $7.2 million, with $2.4 million available for vehicle replacement.
Equipment Replacement Fund – In prior years, this fund was part of the equipment replacement fund under the
major Capital Project Fund. Effective in fiscal year 2014-2015, the City separated out the equipment portion and
established the Equipment Replacement Fund to manage the replacement of equipment, including computer
systems and technology. In addition, this fund was reclassified from a Capital Project Fund to an Internal Service
Fund. As of June 30, 2015, the Equipment Replacement fund had a total fund balance of $3.0 million, with
$0.7 million available for fire equipment replacement, $1.3 million for technology, and $0.2 million for police-
equipment replacement.
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, 2015
amounts to $207.8 million, net of accumulated depreciation of $155.2 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 $6.1 million, offset by accumulated depreciation of
$6.1 million, resulting in no net change to Capital Assets.
Additions to capital assets during fiscal year 2014-2015 included:
Land acquisition: 1309 5th Avenue, San Rafael - $0.8 million
17
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
Construction in Progress: $2.2 million:
H Street Drainage & Reconstruction - $1.7 million
Downtown Rail Readiness - $0.5 million
Infrastructure: $1.0 million
Pt. San Pedro Resurfacing - $0.6 million
Safe Routes to School: Davidson - $0.4 million
Building & structures: $1.2 million for the City Hall Improvements (HVAC renovation)
Machinery & Equipment: $0.8 million:
$0.6 million net increase in vehicles
$0.2 million net increase in equipment
The City’s Capital Assets for the fiscal years ending June 30, 2015 and 2014 were as follows:
2015 2014
Governmental Activities
Land $83,261 $82,464
Construction in progress 4,506 2,301
Land improvements 8,789 8,789
Buildings and structures 41,486 40,300
Machinery and equipment 18,927 18,102
Infrastructure 185,529 184,508
Less accumulated depreciation (151,423) (145,649)
Subtotal Governmental Activities 191,075 190,815
Business-type Activities
Land 8,621 8,621
Buildings and structures 10,714 10,714
Machinery and equipment 1,185 1,179
Less accumulated depreciation (3,778) (3,479)
Subtotal Business-type Activities 16,742 17,035
Total Capital Assets $207,817 $207,850
Summary of Capital Assets
June 30, 2015 & 2014 (in thousands)
Additional information on the City’s capital assets can be found in Note 5 on pages 60 through 62 of this report.
18
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
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 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 obligations for the fiscal years ending June 30, 2015 and 2014 were as follows:
2015 2014
Governmental Activity Debt:
2010 Taxable Pension Obligation Bonds $4,490 $4,490
PG & E City Hall HVAC Retrofit Note Payable 279 312
PG & E Street Light Retrofit Note Payable 175 217
Subtotal Governmental Activity Debt 4,944 5,019
Business-type Debt:
PG & E Parking Lot Lighting Retrofit Note Payable 55 62
2012 Authority Lease Revenue refunding Bonds, as adjusted 5,942 6,186
Subtotal Business-type Debt 5,997 6,248
Total Long-Term Obligations $10,941 $11,267
Summary of Long-Term Debt
June 30, 2015 & 2014 (in thousands)
19
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
ECONOMIC CLIMATE AND NEXT YEAR’S BUDGET
Six years after the official end of the Great Recession, the City’s revenues have finally broken through their pre-
recession peak. As the City looks ahead to fiscal year 2015-2016, management is encouraged by indicators that the
local economy will remain vibrant. However, relatively strong growth in the regional economy is tempered by
persistent uncertainty at the state, national, and international levels.
The nation continues to bounce back slowly, fueled by a resurgent housing market and consistent job growth.
While elements of the national economy are on the mend, 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 California economy continues to rebound from the recession. Although the 6.2% unemployment rate remains
above the national average of 5.3%, it continues to fall and remains on a convergent track with the national
average. Personal income has rebounded over the past few years, and the State continues to prosper from the flow
of capital into the technology companies who are attracted to California. Notwithstanding the State’s current
$8 billion surplus, major challenges persist. The “wall of debt” which, when pension and retiree medical liabilities
are considered, reaches into the hundreds of billions of dollars and managing the impact of the severe drought
affecting all 58 counties are likely to burden the State for several years.
Locally, the 3.3% Marin County unemployment rate is the second lowest in the State. According to the Marin
Economic Forum, the County added 2,600 payroll jobs and gained approximately 200 payroll businesses in 2014.
Real personal income is projected to grow at an average rate of just over 2% over the next year, and Marin
County’s taxable sales per capita are the third highest in the State. Marin County median home prices now hover
around $1 million and continue to rise, while the recovery of commercial real estate has led to stable rents
averaging $2.60 per square foot.
The City’s general fund is fueled by the momentum of three consecutive years of strong operating results. Service
levels have increased moderately over the past few years, with additional resources being allocated to homeless
issues, massage ordinance enforcement, open space management, and deferred maintenance. At the same time, the
City is fully funding its actuarially-determined, required contributions for both pension and retiree medical (OPEB)
obligations.
The City enters fiscal year 2015-2016 with approximately $4.4 million accumulated from a dedicated portion of its
Measure E transactions and use tax (TUT) for public safety facilities construction and improvements. One-third of
this twenty-year San Rafael three-quarter cent TUT, which became effective April 1, 2014, has been set aside by
City Council direction for this purpose.
Reductions in staffing and service levels, coupled with deferred maintenance of City facilities during past
economic downturns means that, although currently the City is able to maintain and, in some cases, improve on its
level of services and make some strategic investments for the City’s future, there will still be critical, unfunded
capital and maintenance needs.
The trends for sales tax and the transactions and use tax (Measure E), which combined represent the City’s largest
tax revenue generators, suggest continued, but moderate growth. For fiscal year 2015-2016, these taxes are
projected to increase by approximately four percent. During this year, the City also expects to receive
approximately $1.2 million in delayed sales tax disbursements associated with the termination of the Triple Flip.
(The Triple Flip was a 10-year structural change to the manner in which sales tax was distributed by the State.)
20
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2015
The City’s second largest tax generator is property tax. The City is expecting the fiscal year 2015-2016 tax roll to
increase by approximately five percent over the previous year. Other tax and non-tax revenues are expected to
grow moderately, in the range of two to four percent.
The City’s largest expenditure relates to personnel costs. Salaries and benefits are tied to the labor agreements with
each bargaining group. With the exception of SEIU-Childcare, which has a two-year contract terminating on
October 31, 2015, the City’s labor units are all operating under contracts that expire on June 30, 2016. Negotiated
compensation increases in effect through June 30, 2016 range between 3.0 and 3.5% for the year.
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. The City maintains a
AA- issuer credit rating with Standard & Poor’s Ratings Services.
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. These 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.
21
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.
23
CITY OF SAN RAFAEL
STATEMENT OF NET POSITION
JUNE 30, 2015
Component
Unit
Primary Government San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
ASSETS
Cash and investments available for operations (Note 2) $63,237,818 $2,591,915 $65,829,733 $22,797,010
Restricted cash and investments (Note 2) 76,511 76,511
Receivables:
Accounts 2,271,117 29,963 2,301,080 171,107
Taxes 6,304,844 6,304,844
Grants 1,413,862 12,967 1,426,829
Interest 88,756 88,756
Loans (Note 4) 653,654 653,654
Long-term receivable from the Successor Agency (Note 15D) 1,533,103 1,533,103
Long-term receivable from San Rafael Sanitation District (Note 4H) 4,462,815 4,462,815
Internal balances (Note 3B) (41,417) 41,417
Prepaid expenses and others 54,990 2,815 57,805 54,209
Capital assets (Note 5):
Nondepreciable 87,767,431 8,620,853 96,388,284 706,633
Depreciable, net 103,307,321 8,121,247 111,428,568 38,485,196
Total Assets 271,130,805 19,421,177 290,551,982 62,214,155
DEFERRED OUTFLOWS
Deferred outflows related to pension (Note 9) 21,621,747 734,769 22,356,516
Total Deferred Outflows 21,621,747 734,769 22,356,516
LIABILITIES
Accounts payable 6,993,900 185,681 7,179,581 1,643,501
Deposits payable 301,941 301,941
Interest payable 50,372 50,372
Developer deposits payable 457,413 457,413
Unearned revenue 362,356 362,356
Claims payable (Note 13):
Due in one year 1,945,792 1,945,792
Due in more than one year 5,373,626 5,373,626
Compensated absences (Note 1K):
Due in one year 528,049 16,215 544,264
Due in more than one year 3,696,341 113,508 3,809,849
Long-term debt (Note 6):
Due in one year 75,172 256,816 331,988
Due in more than one year 4,868,495 5,740,332 10,608,827
Long-term payable to the City of San Rafael (Note 4H)4,462,815
Net OPEB liability (Note 11) 9,164,000 9,164,000
Net Pension Liability (Note 9) 71,813,362 2,440,425 74,253,787
Total Liabilities 105,580,447 8,803,349 114,383,796 6,106,316
DEFERRED INFLOWS
Deferred inflows related to pension (Note 9) 45,498,330 1,546,164 47,044,494
Total Deferred Inflows 45,498,330 1,546,164 47,044,494
NET POSITION (Note 8):
Net investment in capital assets 190,621,085 10,744,952 201,366,037 39,191,829
Restricted for:
Special revenue projects:
Housing and street improvements 20,785,243 20,785,243
Stormwater 1,715,857 1,715,857
Emergency medical services 1,187,276 1,187,276
Other 7,538,627 7,538,627
Capital projects 1,996,249 1,996,249
Debt service 165,972 165,972
Total Restricted Net Position 33,389,224 33,389,224
Unrestricted (82,336,534) (938,519) (83,275,053) 16,916,010
Total Net Position $141,673,775 $9,806,433 $151,480,208 $56,107,839
See accompanying notes to financial statements
25
CITY OF SAN RAFAEL
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2015
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General government $9,099,858 $1,379,523 $284,762
Public safety 39,968,631 4,966,251 920,694
Public works and parks 16,893,164 3,078,267 2,670,155 $1,308,027
Community development 3,128,373 3,796,684
Culture and recreation 11,198,151 6,537,646 309,839
Interest on long-term debt and fiscal charges 284,288
Total Governmental Activities 80,572,465 19,758,371 4,185,450 1,308,027
Business-type Activities
Parking services 4,249,597 5,173,557 - -
Total Business-type Activities 4,249,597 5,173,557 - -
Total Primary Government $84,822,062 $24,931,928 $4,185,450 $1,308,027
Component Unit
San Rafael Sanitation District $11,375,239 $14,629,758 -$ -$
General revenues:
Taxes:
Property
Sales:
Sales and Use
Measure E half-cents sales tax
Measure E quarter-cents sales tax
Measure S
Paramedic
Transient occupancy
Franchise
Business license
Other
Investment earnings
Miscellaneous
Aid from other governmental agencies
Transfers (Note 3A)
Total general revenues and transfers
Special Item (Note 4H)
Change in Net Position
Net Position, beginning of year, as adjusted (Note 1P)
Net Position, end of year
See accompanying notes to financial statements
Program Revenues
26
Component
Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
($7,435,573) ($7,435,573)
(34,081,686) (34,081,686)
(9,836,715) (9,836,715)
668,311 668,311
(4,350,666) (4,350,666)
(284,288) (284,288)
(55,320,617) (55,320,617)
- $923,960 923,960
- 923,960 923,960
(55,320,617) 923,960 (54,396,657)
$3,254,519
19,039,443 19,039,443 1,319,852
21,056,482 21,056,482
7,702,530 7,702,530
3,498,470 3,498,470
12,433 12,433
3,820,240 3,820,240
2,661,878 2,661,878
3,272,390 3,272,390
2,670,071 2,670,071
3,295,751 3,295,751
216,066 7,008 223,074 171,804
2,254,901 2,254,901
35,090
432,630 (432,630)
69,933,285 (425,622) 69,507,663 1,526,746
4,462,815 - 4,462,815 (4,462,815)
19,075,483 498,338 19,573,821 318,450
122,598,292 9,308,095 131,906,387 55,789,389
$141,673,775 $9,806,433 $151,480,208 $56,107,839
Primary Government
Net (Expenses) Revenues and Changes in Net Position
27
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 2014-2015.
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.
29
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2015
Traffic and Other Total
Housing Governmental Governmental
General Mitigation Gas Tax Funds Funds
ASSETS
Cash and investments available for operations (Note 2) $11,912,244 $12,208,886 $8,250,560 $12,534,207 $44,905,897
Restricted cash and investments (Note 2)76,511 76,511
Receivables:
Accounts 1,212,870 36,967 855,237 2,105,074
Taxes 5,906,885 157,965 239,994 6,304,844
Grants 7,940 101,879 1,304,043 1,413,862
Interest 88,654 102 88,756
Loans (Note 4) 350,282 51,430 230,066 631,778
Long-term receivable from the
Successor Agency (Note 15D) 1,533,103 1,533,103
Prepaids 49,017 2,359 51,376
Total Assets $21,060,995 $12,260,316 $8,547,371 $15,242,519 $57,111,201
LIABILITIES
Accounts payable $3,531,630 $946,426 $1,135,236 $5,613,292
Deposits payable 86,477 $21,098 194,366 301,941
Developer deposits payable 455,913 1,500 457,413
Unearned revenue 362,356 362,356
Total Liabilities 4,074,020 21,098 946,426 1,693,458 6,735,002
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - SB90 reimbursement receivable 1,092,071 1,092,071
Unavailable revenue - long-term receivable from Successor Agency 1,533,103 1,533,103
Total Deferred Inflows of Resources 2,625,174 2,625,174
Fund Balances (Note 8):
Nonspendable 399,299 2,359 401,658
Restricted 12,239,218 7,600,945 11,902,021 31,742,184
Committed 931,871 931,871
Assigned 12,374,002 712,810 13,086,812
Unassigned 1,588,500 1,588,500
Total Fund Balances 14,361,801 12,239,218 7,600,945 13,549,061 47,751,025
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $21,060,995 $12,260,316 $8,547,371 $15,242,519 $57,111,201
See accompanying notes to basic financial statements
Special Revenue Funds
30
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2015
Total fund balances reported on the governmental funds balance sheet $47,751,025
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.184,061,860
Internal service funds are used by management to charge the cost of management of
7,630,903
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.(4,943,667)
Compensated absences (4,224,390)
Unavailable revenue 2,625,174
Long-term receivables from San Rafael Sanitation District 4,462,815
Deferred outflow related to pension 21,621,747
Net pension liability (71,813,362)
Deferred inflow related to pension (45,498,330)
NNet position of governmental activities $141,673,775
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.
31
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2015
Traffic and Other Total
Housing Governmental Governmental
General Mitigation Gas Tax Funds Funds
REVENUES
Taxes and special assessments $56,541,604 $5,262,624 $61,804,228
Licenses and permits 2,456,820 2,456,820
Fines and forfeitures 505,029 51,047 556,076
Use of money and properties 290,103 $35,984 $22,785 95,885 444,757
Intergovernmental 7,846,436 3,028,659 2,358,408 13,233,503
Charges for services 2,660,869 288,728 1,513,798 10,883,399 15,346,794
Other revenue 446,272 729,150 601,581 1,777,003
Total Revenues 70,747,133 324,712 5,294,392 19,252,944 95,619,181
EXPENDITURES
Current:
General government 9,530,931 21,473 651,283 10,203,687
Public safety 36,564,699 7,389,816 43,954,515
Public works and parks 10,392,192 1,582,658 783,793 12,758,643
Community development 3,416,859 3,416,859
Culture and recreation 2,801,488 8,815,289 11,616,777
Capital outlay 2,465,703 2,033,221 4,498,924
Capital improvement / special projects 30,676 132,053 307,538 1,716,719 2,186,986
Debt service:
Principal 75,172 75,172
Interest and fiscal charges 284,288 284,288
Total Expenditures 63,096,305 132,053 4,377,372 21,390,121 88,995,851
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 7,650,828 192,659 917,020 (2,137,177) 6,623,330
OTHER FINANCING SOURCES (USES)
Transfers in (Note 3A) 1,039,150 528,835 2,780,164 4,348,149
Transfers out (Note 3A) (1,697,664) (528,835) (825,000) (3,051,499)
Total Other Financing Sources (Uses) (658,514) (528,835) (296,165) 2,780,164 1,296,650
Net Change in Fund Balances 6,992,314 (336,176) 620,855 642,987 7,919,980
FUND BALANCES, BEGINNING OF YEAR
AS ADJUSTED (NOTE 1P) 7,369,487 12,575,394 6,980,090 12,906,074 39,831,045
FUND BALANCES, END OF YEAR $14,361,801 $12,239,218 $7,600,945 $13,549,061 $47,751,025
See accompanying notes to financial statements
Special Revenue Funds
32
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, 2015
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $7,919,980
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.
this is the amount by which capital outlays exceeded depreciation expense in the current period.(1,488,520)
Long-Term Debt Proceeds and Payments
75,172
Accrual of Non-Current Items
The amount below included in the Statement of Activities does not require the use of current financial resources
Compensated absences 45,033
Unavailable revenue (1,017,979)
Long-term receivable from San Rafael Sanitary District 4,462,815
Net Pension Liability Transactions
Governmental funds record pension expense as it is paid. However,
in the Statement of Activities those costs are reversed as deferred outflows/(inflows)
and an increase/(decrease) in net pension liability.8,140,355
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.938,627
Change in Net Position of Governmental Activities $19,075,483
See accompanying notes to financial statements
and therefore is not reported as revenue or expenditures in governmental funds (net change):
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.
33
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.
35
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2015
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
ASSETS
Current Assets:
Cash and investments available for operations (Note 2) $2,591,915 $18,331,921
Receivable:
Accounts 29,963 166,043
Loans 21,876
Grants 12,967
Prepaids 2,815 3,614
Total Current Assets 2,637,660 18,523,454
Noncurrent Assets:
Capital assets (Note 5):
Nondepreciable 8,620,853 204,136
Depreciable, net 8,121,247 6,808,756
Total Noncurrent Assets 16,742,100 7,012,892
Total Assets 19,379,760 25,536,346
DEFERRED OUTFLOWS
Deferred outflows related to pension (Note 9) 734,769
Total Deferred Outflows 734,769
LIABILITIES
Current Liabilities:
Accounts payable 185,681 1,380,608
Interest payable 50,372
Compensated absences, due in one year (Note 1K) 16,215
Claims payable, due in one year (Note 13) 1,945,792
Long-term debt, due in one year (Note 6) 256,816
Total Current Liabilities 509,084 3,326,400
Noncurrent Liabilities:
Compensated absences (Note 1K) 113,508
Claims payable (Note 13)5,373,626
Long-term debt (Note 6) 5,740,332
Net OPEB liability (Note 11)9,164,000
Net Pension Liability (Note 9) 2,440,425
Total Noncurrent Liabilities 8,294,265 14,537,626
Total Liabilities 8,803,349 17,864,026
DEFERRED INFLOWS
Deferred inflows related to pension (Note 9) 1,546,164
Total Deferred Inflows 1,546,164
NET POSITION (Note 8):
Net investment in capital assets 10,744,952 7,012,892
Unrestricted (979,936) 659,428
Total Net Position 9,765,016 $7,672,320
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.41,417
Net position business-type activities $9,806,433
See accompanying notes to financial statements
36
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2015
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
OPERATING REVENUES
Charges for current services $3,134,849 $10,873,971
Other operating revenues 2,038,708 1,022,167
Total Operating Revenues 5,173,557 11,896,138
OPERATING EXPENSES
Personnel 1,931,672 170,597
Insurance premiums and claims 6,281,991
Maintenance and repairs 41,222 475,593
Depreciation (Note 5)299,122 844,108
General and administrative 1,781,636 2,463,285
Total Operating Expenses 4,053,652 10,235,574
Operating Income 1,119,905 1,660,564
NONOPERATING REVENUES (EXPENSES)
Investment income 7,008 53,880
Interest expense (205,163)
Miscellaneous income 87,421
Total Nonoperating Revenues (Expenses) (198,155) 141,301
Income Before Transfers 921,750 1,801,865
CONTRIBUTIONS 10,000
TRANSFERS OUT (Note 3A) (432,630) (864,020)
Change in Net Position 489,120 * 947,845
NET POSITION, BEGINNING OF YEAR, AS ADJUSTED (NOTE 1P ) 9,275,896 6,724,475
NET POSITION, END OF YEAR $9,765,016 $7,672,320
* Reconciliation of the Change in Net Position with the Statement of Activities
Change in Net Position $489,120
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.9,218
Change in Net Position of Business-type Activities $498,338
See accompanying notes to financial statements
37
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2015
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $3,134,849 $10,983,679
Cash payments to suppliers for goods and services (1,705,714) (7,323,673)
Cash payments to employees for salaries and benefits (2,200,722) (170,597)
Other operating revenues 2,020,556 1,022,167
Payment to OPEB Trust (132,000)
Cash Flows from Operating Activities 1,248,969 4,379,576
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Contributions 10,000
Interfund payments (432,630) (864,020)
Cash Flows from Noncapital
Financing Activities (432,630) (854,020)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal payments on revenue bonds (251,091)
Interest expenses and fiscal charges (206,388)
Acquisition of capital assets (6,392) (2,592,268)
Proceeds from sale of property 87,421
Cash Flows from Capital and
Related Financing Activities (463,871) (2,504,847)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 7,008 53,880
Cash Flows from Investing Activities 7,008 53,880
NET INCREASE IN CASH AND CASH EQUIVALENTS 359,476 1,074,589
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 2,232,439 17,257,332
CASH AND CASH EQUIVALENTS, END OF YEAR $2,591,915 $18,331,921
Reconciliation of operating income to net cash
provided by operating activities:
Operating income $1,119,905 $1,660,564
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation 299,122 844,108
Net change in assets and liabilities:
Accounts receivable (18,152) 98,770
Loans receivable 10,938
Prepaids and deposits (2,815) (3,509)
Net OPEB liabilities (132,000)
Accounts payable 119,959 1,170,993
Compensated absence obligations 7,583
(Decrease) increase in due to retirement system (276,633)
Claims payable 729,712
Net Cash Provided by Operating Activities $1,248,969 $4,379,576
See accompanying notes to basic financial statements
38
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.
39
CITY OF SAN RAFAEL
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2015
Successor Agency
to the
Redevelopment
Agency
Private-Purpose Agency
Trust Fund Funds
ASSETS
Cash and investments (Note 2) $2,486,284
Restricted cash and investments (Note 2) 23,843 $294,330
Receivable:
Taxes 2,923,853 1,134
Interest 504
Prepaids 304
Total Assets $5,434,788 $295,464
LIABILITIES
Accounts payable $6,792
Interest payable 31,169 $28,726
Other long-term obligations (Note 15D) 1,533,103
Due to bondholders 266,738
Long-term debt (Note 15C):
Due within one year 2,800,000
Due more than one year 21,352,050
Total Liabilities 25,723,114 $295,464
NET POSITION (DEFICIT)
Held in trust for private purpose ($20,288,326)
See accompanying notes to financial statements
40
CITY OF SAN RAFAEL
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2015
Successor Agency
to the
Redevelopment Agency
Private-Purpose
Trust Fund
ADDITIONS
Property taxes $3,337,015
Use of money and property 1,902
Other revenue 319,803
Total Additions 3,658,720
DEDUCTIONS
General government 286,450
Interest expense 1,114,886
Total Deductions 1,401,336
Change in Net Position 2,257,384
NET POSITION HELD IN TRUST FUND
FOR OTHER PURPOSES
Beginning of year (22,545,710)
End of year ($20,288,326)
See accompanying notes to financial statements
41
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
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.
Activities of the Authority are reported in the Parking Services Enterprise Funds. 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 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 City contracts with the District to maintain the collection systems in the City and surrounding
unincorporated areas. These employees are paid through the City’s payroll department and
participate in the City’s cost-sharing multiple-employer defined benefit pension plan administered
by the Marin County Employees’ Retirement Association (Association). These costs are the
obligation of the District and not the City. As discussed in Note 4H, a receivable from the District
has been established.
43
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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.
44
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
Gas Tax Special Revenue Fund - Established to receive and expend the City’s allocation of the
State gasoline taxes.
The City reported its only enterprise fund as a major fund in the accompanying financial
statements. The enterprise fund is:
Parking Services Fund – Established to maintain parking garages, lots and spaces in the
Downtown Parking District, 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; vehicle, equipment and
computer replacement; employee benefits; liability insurance; workers’ compensation; dental
insurance; employee retirement; and retiree medical (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. Agency funds are
custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
45
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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.
46
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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. Unavailable revenue, a type of deferred inflow of resources, is reported 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.
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.
The following funds incurred expenditures in excess of appropriations during the fiscal year*:
Fund Amount
Recreation Revolving Special Revenue $117,378
Household Hazmat Facility Special Revenue 9,507
*Sufficient resources were available within the funds to support the additional expenditures
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. All unencumbered appropriations lapse at year end.
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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.
48
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The changes of the compensated absences were as follows:
Governmental Business-Type
Activities Activities Total
Beginning Balance $4,269,695 $122,140 $4,391,835
Additions 3,728,859 107,325 3,836,184
Payments (3,774,164) (99,742) (3,873,906)
Ending Balance $4,224,390 $129,723 $4,354,113
Current Portion $528,049 $16,215 $544,264
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.
49
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. Measurement of Risk Management Internal Service Fund Liabilities
In Fiscal Year 2014-2015, the City adopted a new methodology for determining the liabilities in
the Worker’s Compensation and General Liability fund liabilities. Previously, the City used the
expected values (50% confidence level) of outstanding losses in calculating these liabilities. The
new methodology employs a 70% confidence level for the value of outstanding losses as well as
an allowance for unallocated loss adjustment expenses and other measurable financial exposure.
O. Implementation of Accounting Standards
GASB Statement No. 68 – In June 2012, GASB issued Statement No. 68, Accounting and
Financial Reporting for Pensions—an amendment of GASB Statement No. 27. The intention of
this Statement is to improve the decision-usefulness of information in employer and
governmental non-employer contributing entity financial reports and enhance its value for
assessing accountability and inter-period equity by requiring recognition of the entire net pension
liability and a more comprehensive measure of pension expense.
GASB Statement No. 71 – In November 2013, GASB issued Statement No. 71, Pension
Transition for Contributions Made Subsequent to the Measurement Date—an amendment of
GASB Statement No. 68. The intension of this Statement is to eliminate the source of a potential
significant understatement of restated beginning net position and expense in the first year of
implementation of Statement 68 in the accrual-basis financial statements of employers and non-
employer contributing entities.
P. Prior Period Adjustments
Implementation of Accounting Standards:
The implementation of GASB Statements No. 68 and No. 71 required the City to make prior
period adjustments. As a result, the beginning net positions of the Governmental Activities and
Business-Type Activities were reduced by $104,830,300 and $3,528,453, respectively. The
beginning net position of the Parking Services Fund and Employee Retirement Fund were also
reduced by $3,528,453 and $1,000,000, respectively, as part of this implementation. See Note 9
for additional information.
Equipment Replacement Funds Recategorization
In fiscal year 2014-2015, the City contributed fixed assets to the Building Replacement Fund from
the fixed asset account group. It also reclassified the Equipment Replacement Fund, Technology
Replacement Fund, Fire Equipment Replacement Fund and Police Equipment Replacement Fund
from Governmental Capital Project Funds to Internal Service Funds.
50
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
As a result of these changes, the July 1, 2014 balances were restated as follows:
Fund Level Entity-wide Level
Internal Service Enterprise Governmental Business-type Governmental Total
Classifications Funds Fund Funds Activities Activities Activities
Net Position/Fund Balance:
Balances as previously reported ($1,464,687) $12,804,349 $44,708,628 $12,836,548 $227,428,592 $240,265,140
Increase (Decrease) in
Net Position/Fund Balance
Reclassification of Equipment Replacement Fund 4,877,583 (4,877,583)
Capital Assets 4,311,579
Implementation of GASB 68 and 71 (1,000,000) (3,528,453)(3,528,453) (104,830,300) ($108,358,753)
Total Recategorizations 8,189,162 (3,528,453) (4,877,583) (3,528,453) (104,830,300) (108,358,753)
Net Position/Fund Balance:
As adjusted $6,724,475 $9,275,896 $39,831,045 $9,308,095 $122,598,292 $131,906,387
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.
51
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 2 - CASH AND INVESTMENTS
B. Classification
Cash and investments as of June 30, 2015, 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 $65,829,733
Restricted cash and investments 76,511
Total Primary Government Cash and Investments 65,906,244
San Rafael Sanitation District (Component Unit)
Cash and investments available for operations 22,797,010
Total San Rafael Sanitation District Cash and Investments 22,797,010
Statement of Fiduciary Net Position (separate statement):
Successor Agency to the Redevelopment Agency:
Cash and investments available for operations 2,486,284
Restricted cash and investments 23,843
Total Successor Agency Cash and Investments 2,510,127
Pt. San Pedro Road Assessment District Agency Fund 294,330
Total Fiduciary Cash and Investments 2,804,457
Total Cash and Investments $91,507,711
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.
52
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
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.
53
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
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
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
54
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
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 More than
Type of Investment or Less 12 Months Total
City and Fiduciary:
Money Market Mutual Funds $582,543 $582,543
Local Agency Investment Fund 28,761,550 28,761,550
U.S. Treasury Notes $4,761,738 4,761,738
U.S. Agency Securities and Instruments 500,985 7,015,038 7,516,023
Medium-Term Corporate Notes 2,577,550 2,577,550
Investment in Pt. San Pedro Bonds 1,641,500 1,641,500
Total Investments $29,845,078 $15,995,826 45,840,904
Cash in banks and on hand 20,065,340
Total City and Investments 65,906,244
Fiduciary:
Money Market Mutual Funds 23,843 23,843
Local Agency Investment Fund 712,859 712,859
Total Investments 736,702 736,702
Cash in banks and on hand 2,067,755
Total Fiduciary Cash and Investments 2,804,457
Total City and Fiduciary Cash and Investments 68,710,701
San Rafael Sanitary District:
Cash in banks and County Investment Pool 22,797,010
Total District's Cash and Investments 22,797,010
Total Cash and Investments $91,507,711
55
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 2 - CASH AND INVESTMENTS (Continued)
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, 2015, these investments matured in an average of 239 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 34 days at June 30, 2015.
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.
56
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 2 - CASH AND INVESTMENTS (Continued)
F. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. Presented below is the actual rating as of June 30, 2015, for each of the Primary
Government’s investment types as provided by Standard and Poor’s or Moody’s investment rating
systems, except as noted:
Type of Investment A AA- AA AA+ Aaa/AAA AAA/V1 Total
City (except Fiduciary Funds):
Money Market Mutual Funds $582,543 $582,543
U.S. Agency Securities and Instruments 7,516,023 7,516,023
Medium-Term Corporate Notes $504,745 $1,055,545 $501,475 $515,785 2,577,550
Total rated investments $504,745 $1,055,545 $501,475 $515,785 $8,098,566 10,676,116
Not rated:
Local Agency Investment Fund 28,761,550
U.S. Treasury Notes 4,761,738
Investment in Pt. San Pedro Bonds 1,641,500
Cash in banks and on hand 20,065,340
Total City Cash and Investments 65,906,244
Fiduciary:
Money Market Mutual Funds $23,843 23,843
Total rated investments $23,843 23,843
Not rated:
Local Agency Investment Fund 712,859
Cash in banks and on hand 2,067,755
Total Fiduciary Cash and Investments 2,804,457
Total City and Fiduciary Cash and Investments 68,710,701
Component Unit
San Rafael Sanitary District:
Investment in County Pool (Rated AAA/V1)$22,797,010 22,797,010
Total District's Cash and Investments 22,797,010 22,797,010
Total Cash and Investments $91,507,711
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.
57
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
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, 2015, were as follows:
From Fund To Fund Amount
General Fund Non-Major Governmental Funds $1,697,664 (A)
Traffic and Housing Mitigation Fund Gas Tax Fund 528,835 (B)
Gas Tax Fund General Fund 400,000 (C)
Non-major Governmental Funds 425,000 (D)
Internal Service Funds General Fund 276,520 (E)
Non-Major Governmental Funds 587,500 (A)
Parking Services Enterprise Fund Non-Major Governmental Funds 70,000 (A)
General Fund 362,630 (E)
$4,348,149
and grant matching.
(B) Transfer to Gas Tax Fund for Downtown Rail Readiness Project.
(C) Transfers to the General Fund were for street maintenance support, administrative costs, and engineering support.
(D) Transfer to Capital Improvement Fund for the Puerto Suello Transit Center Connector.
(E) Transfers to General Fund were for the purpose of reimbursing administrative costs and debt service.
(A) Transfers to the Non-Major Governmental Funds were for administrative costs, program support, capital projects,
B. Internal Balances
GASB 34 requires internal balances to be 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 or
restricted as discussed in Note 8. At June 30, 2015, these loans totaled:
Employee Loans $5,857
Centertown Associates 230,066
One "H" Street Associates 51,430
Fire Chief Loan 344,425
Town of Ross 21,876
Total $653,654
58
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
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. As of June 30, 2015, the balance of the employee loans receivable was $5,857.
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, 2015, the balance of the loan was $230,066.
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. As of June 30, 2015,
the balance of this loan was $51,430.
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, 2015, the balance of the loan
was $344,425.
F. Marin Housing Authority Loans
On May 15, 2014, the City made a 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 became due upon the
sale of the unit. This loan was paid off during this fiscal year 2014-2015, leaving a zero balance as of
June 30, 2015.
59
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
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
balance of this loan was $21,876 as of June 30, 2015. Payments of $10,938 will be due on November
1, 2015 and 2016.
H. Other Receivables
The City provides staffing to San Rafael Sanitation District (District) under a contractual arrangement
originated in 1987 that requires the District to pay all related employee costs incurred by the City on
its behalf. Accordingly, the cost of providing pension and post-employment health benefits incurred
by the City for the District staff but not yet funded are reflected by the District as a noncurrent
liability, and by the City as a noncurrent receivable. The obligation as of June 30, 2015 is $4,462,815,
and is composed of the following:
Long-term receivable from San Rafael Sanitation District:
Defined benefit pension liability allocation (GASB 68) $3,388,815
Other post-employment benefit liability allocation (GASB 45) 263,000
Other post-employment benefit liability in excess of GASB 45 allocation 811,000
Total long-term receivable from San Rafael Sanitation District $4,462,815
NOTE 5 - CAPITAL ASSETS
Changes in capital assets during the fiscal year consisted of:
Balance Balance
June 30, 2014 Additions Retirements Transfers June 30, 2015
Governmental Activities
Capital assets not being depreciated:
Land $82,464,364 $789,569 $7,235 $83,261,168
Construction in progress 2,300,968 3,872,714 (1,667,419) 4,506,263
Total capital assets not being depreciated 84,765,332 4,662,283 (1,660,184) 87,767,431
Capital assets being depreciated:
Land improvements 8,788,985 8,788,985
Buildings and structures 40,299,541 237,355 948,874 41,485,770
Machinery and equipment 18,101,851 2,234,653 ($1,409,436)18,927,068
Infrastructure 184,507,959 309,447 711,310 185,528,716
Total capital assets being depreciated 251,698,336 2,781,455 (1,409,436) 1,660,184 254,730,539
Less accumulated depreciation for:
Land improvements (5,259,973) (270,056)(5,530,029)
Buildings and structures (14,701,882) (1,188,882)(15,890,764)
Machinery and equipment (13,070,169) (980,047) 1,407,463 (12,642,753)
Infrastructure (112,616,530) (4,743,142)(117,359,672)
Total accumulated depreciation (145,648,554) (7,182,127) 1,407,463 (151,423,218)
Total net capital assets being depreciated 106,049,782 (4,400,672)(1,973) 1,660,184 103,307,321
Total governmental activity capital assets $190,815,114 $261,611 ($1,973)$191,074,752
60
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 5 - CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2014 Additions June 30, 2015
Business-type Activities
Capital assets not being depreciated:
Land $8,620,853 $8,620,853
Total capital assets not being depreciated 8,620,853 8,620,853
Capital assets being depreciated:
Buildings and structures 10,713,814 10,713,814
Machinery and equipment 1,178,770 $6,392 1,185,162
Total capital assets being depreciated 11,892,584 6,392 11,898,976
Less accumulated depreciation for:
Buildings and structures (2,483,870) (205,363) (2,689,233)
Machinery and equipment (994,737) (93,759) (1,088,496)
Total accumulated depreciation (3,478,607) (299,122) (3,777,729)
Total net capital assets being depreciated 8,413,977 (292,730) 8,121,247
Total business-type activity capital assets $17,034,830 ($292,730) $16,742,100
Balance Transfers & Balance
June 30, 2014 Additions Retirements Adjustments June 30, 2015
San Rafael Sanitation District
Capital assets not being depreciated:
Land and easements $115,329 $115,329
Construction in progress 377,960 $6,071,040 ($5,857,696) 591,304
Total capital assets not being depreciated 493,289 6,071,040 (5,857,696) 706,633
Capital assets being depreciated:
Subsurface lines 22,260,272 65,579 3,334,178 25,660,029
Sewage collection facilities 36,644,328 23,458 2,523,518 39,191,304
General plant and administration 1,435,480 180,259 1,615,739
Total capital assets being depreciated 60,340,080 269,296 5,857,696 66,467,072
Less accumulated depreciation for:
Subsurface lines (9,949,215) (410,041)(10,359,256)
Sewage collection facilities (15,962,746) (831,046)(16,793,792)
General plant and administration (698,072) (130,756)(828,828)
Total accumulated depreciation (26,610,033) (1,371,843)(27,981,876)
Total net capital assets being depreciated 33,730,047 (1,102,547)5,857,696 38,485,196
Total District's capital assets $34,223,336 $4,968,493 $39,191,829
61
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
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 $113,631
Public safety 792,793
Public works and parks 5,469,173
Community development/redevelopment 52,164
Culture and recreation 754,366
Total Governmental Activities $7,182,127
Business-type Activities
Parking services $299,122
Total Business-type Activities $299,122
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, 2015, are as follows:
Authorized Balance Balance Current
and Issued June 30, 2014 Additions Retirements June 30, 2015 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
PG & E City Hall HVAC Retrofit Note Payable
0.00%, due 11/30/2023 334,585 312,398 $33,280 279,118 $33,280
PG & E Street Light Retrofit Note Payable
0.00%, due 8/31/2019 233,896 216,441 41,892 174,549 41,892
Total Governmental Long-term Debt $5,018,839 $75,172 $4,943,667 $75,172
Business-type Activities
PG & E Parking Lot Lighting Retrofit Note Payable
0.00%, due 11/30/2023 $66,380 $61,836 $6,816 $55,020 $6,816
2012 Authority Lease Revenue Refunding Bonds
2.00-4.00%, due 4/1/2033 6,750,000 6,200,000 245,000 5,955,000 250,000
Less: unamortized bond discount (13,597)(725) (12,872)
Total Enterprise Fund Debt $6,248,239 $251,091 $5,997,148 $256,816
62
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
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. 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.
C. 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. The rights to these
lease payments have been irrevocably transferred by the Authority to the Trustee. Activities
related to the Series 2012 Bonds are reported in the Parking Services Enterprise Fund. Principal
payments are due annually on April 1 and interest is payable semiannually on October 1 and
April 1. 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.
63
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 6 - LONG-TERM DEBT (Continued)
D. Future Debt Service
Future debt service requirements, including interest, at June 30, 2015, are as follows:
For the Year Governmental Activities Business-type Activities
Ended June 30 Principal Interest Principal Interest
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 485,261 219,662 291,816 169,838
2021 - 2025 2,792,718 637,530 1,570,940 716,040
2026 - 2030 640,000 20,006 1,810,000 447,042
2031 - 2034 1,255,000 100,588
Totals $4,943,667 $1,937,196 6,010,020 $2,193,260
Reconciliation of Long-term debt:
Less: unamortized discount (12,872)
$5,997,148
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, 2015
San Rafael Redevelopment Agency 162-175 Belvedere
Multifamily Housing Revenue Bonds-2000A Apartments $3,590,529 $1,161,535
California Statewide Communities
Development Authority Revenue Bonds-2002 St. Marks School 5,605,000 4,125,000
San Rafael Redevelopment Agency
Variable Rate Demand Multifamily 55 Fairfax
Housing Revenue Bonds-2001A Apartments 3,000,000 2,300,000
San Rafael Redevelopment Agency San Rafael Commons
Multifamily Housing Revenue Bonds-2001 Apartments 6,100,000 5,155,000
City of San Rafael Kaiser Foundation
Variable Rate Revenue Bonds-2001 Series C Hospitals 200,000,000 120,630,000
San Rafael Redevelopment Agency Martinelli House
Multifamily Housing Revenue Bonds-2007 Series A Project 6,000,000 2,031,633
Multifamily Housing Revenue Bonds-2007 Series B Martinelli House 1,000,000 232,740
Pt. San Pedro Road Median Landscaping Pt. San Pedro Road
Assessment District Limited Obligation Bonds-2012 Median Landscaping 1,750,000 1,641,500
64
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
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. 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. Nonspendable amounts subject to council
commitments are included along with spendable resources.
Assigned fund balances are amounts constrained by the City’s intent that they be used for a specific
purpose, but are neither restricted nor committed. Intent is expressed by the City 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 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.
65
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
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, 2015, are below:
Special Revenue Funds
General Fund
Traffic and
Housing
Mitigation Gas Tax
Other
Governmental
Funds Total
Fund balances:
Nonspendable:
Loans receivable $350,282 $350,282
Prepaids 49,017 $2,359 51,376
Total Nonspendable 399,299 2,359 401,658
Restricted for:
Assessment District capital projects 300,478 300,478
Baypoint Lagoons Assessment District 217,912 217,912
Bedroom tax capital projects 51,090 51,090
Business improvement 3,484 3,484
Childcare 897,286 897,286
Development services 999,395 999,395
Emergency medical services 1,185,463 1,185,463
1997 financing authority revenue bonds debt service 146,524 146,524
Gas tax $7,600,945 7,600,945
Grants 1,036,902 1,036,902
Household hazmat facility 259,758 259,758
Library 636,909 636,909
Library assessment 657,427 657,427
Loch Lomond Assessment District 669,018 669,018
Low and Moderate Income Housing 945,080 945,080
Mariposa Assessment District debt service 16,573 16,573
Measure A Open Space 345,312 345,312
Parkland dedication 1,416,360 1,416,360
Peacock Gap Assessment District debt service 2,875 2,875
Public safety 170,834 170,834
Pt. San Pedro - Maintenance Portion 168,660 168,660
Recreation revolving 27,573 27,573
Sewer Maintenance 31,496 31,496
Storm water 1,715,857 1,715,857
Traffic and housing mitigation $12,239,218 12,239,218
Total Restricted 12,239,218 7,600,945 11,902,266 31,742,429
(Continued)
66
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
Special Revenue Funds
General Fund
Traffic and
Housing
Mitigation Gas Tax
Other
Governmental
Funds Total
Committed to:
Capital improvement capital projects $904,122 $904,122
Equipment replacement capital projects
Park capital projects 27,749 27,749
Total Committed 931,871 931,871
Assigned to:
Contractual commitments $115,665 $115,665
Emergency and cash flow 6,500,000 6,500,000
Infrastructure reserve 200,000 200,000
General plan / long range planning 1,168,867 1,168,867
Measure E - Public Safety Facility 4,389,470 4,389,470
Open space capital projects 123,337 123,337
Radio replacement capital projects 395,110 395,110
Telephone replacement capital projects 194,363 194,363
Total Assigned 12,374,002 712,810 13,086,812
Unassigned to:
General Fun d 1,588,500 1,588,500
1,588,500 1,588,500
Total Fund Balances $14,361,801 $12,239,218 $7,600,945 $13,549,306 $47,751,270
NOTE 9 – PENSION PLANS
A. Plan Description
The City’s retirement plan is administered by the Marin County Employees’ Retirement Association
(MCERA). All full-time and permanent part-time employees who work at least 75% of a full time
position are eligible to participate.
MCERA is a cost-sharing multiple-employer retirement system governed by the 1937 Act of the
California Government Code. MCERA acts as a common administrative and investment agent for
defined benefit retirement plan for various local governmental agencies within the County of Marin.
MCERA 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 MCERA’s annual financial reports, which
include required supplementary information for each participant in the plan, may be obtained from the
Marin County Employees’ Retirement Association, One McInnis Parkway, Suite 100, San Rafael,
California 94903.
67
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 9 – PENSION PLANS (Continued)
B. Funding Policy
The funding policy of MCERA 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 employer rates for
normal cost are determined using the Entry Age Normal Actuarial Cost Method, which takes into
account those benefits that are expected to be earned in the future as well as those already accrued.
The actual rate of return on investments during the year was 13.89%. 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 smoothed return yielded 7.61%. MCERA uses a 17-year
level percentage, open method to amortize the unfunded actuarial liability. The City uses the actuarially
determined percentages of payroll to calculate and pay contributions to MCERA. The required
contributions were determined as part of the actuarial valuation performed as of June 30, 2013.
Contributions to the plan from the City were $17,802,358 for the year ended June 30, 2015, based on a
total payroll of $38,294,270, of which $31,073,560 represented the basis for the plan contributions. Of
the total payroll subject to plan contributions, $1,297,149 is attributable to the San Rafael Sanitation
District (SRSD), a component unit of the City.
The City contribution rates for the year ended June 30, 2015 were as follows:
Employer Employee
Contribution Rate Contribution Rate Benefit Basis
City of San Rafael Misc Tier 1 46.00% 0.00% - 15.83% 2.7% @ 55 Highest year
City of San Rafael Misc Tier 2 42.93% 6.91% - 11.64% 2.0% @ 55 Highest year
City of San Rafael Fire Tier 1 71.89% 0.00% - 18.58% 3.0% @ 50 Highest year
City of San Rafael Fire Tier 2 67.84% 10.73% - 13.50% 3.0% @ 55 Highest year
City of San Rafael Safety Police Tier 1 70.76% 0.00% - 18.97% 3.0% @ 50 Highest year
City of San Rafael Safety Police Tier 2 74.04% 11.25% - 16.77% 3.0% @ 55 Highest year
PEPRA Misc 38.04% 8.59% - 9.59% 2.0% @ 62 Average three highest years
PEPRA Safety 62.71% 13.11% 2.7% @ 57 Average three highest years
C. Pension Liability and Pension Expense
At June 30, 2015, the City reported a liability of $74,253,787 for its proportionate share of the net
pension liability, deferred inflows of $47,044,494, deferred outflows, due to the change of assumptions,
of $4,554,158, and deferred outflows of $17,802,358 from pension contributions made after the
measurement date. Consequently, the net impact on the City’s Statement of Net Position before
allocations is $98,941,765. After allocations to the San Rafael Sanitation District, the net impact on the
City’s Statement of Position is $95,552,950.
The proportionate share of the annual pension expense is $9,356,796, or 29.77% of payroll.
68
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 9 – PENSION PLANS (Continued)
The table below provides a summary of the key results during this reporting period.
Measurement Date
Description 6/30/2014 6/30/2013
Net Pension Liability $74,253,787 $124,935,549
Deferred Inflows 47,044,494
Deferred Outflows (4,554,158)
Additional Deferred Outflows - Actual FY 14-15 Contributions (17,802,358)
Impact on Statement of Net Position before Allocations 98,941,765 124,935,549
Allocation of NPL to SRSD 2,543,237 4,279,119
Allocation of Deferred Inflows (measurement date) to SRSD 1,611,302
Allocation of Deferred Outflows (measurement date) to SRSD (155,983)
Allocation of Additional Deferred Outflows (contributions) to SRSD (609,741)
Net Impact on Statement of Net Position, net of receivable from
SRSD (see Note 4H) 95,552,950 120,656,430
Pension Expense ($ Amount)9,356,796 N/A
Covered Payroll ($Amount) 31,429,178
Pension Expense (% of Payroll) 29.77%N/A
Summary of Results
Projection of Total Pension Liability and Net Pension Liability
Total Pension Liability (TPL) is the actuarial present value of projected benefit payments attributed to
past periods of employee service. For the purposes of Governmental Accounting Standards Board
Statement No. 68 (GASB 68), MCERA and the City have adopted a measurement date of
June 30, 2014. The beginning of year measurement of TPL is based on the actuarial valuation as of
June 30, 2013. The TPL at the end of the measurement year, June 30, 2014, is also measured as of the
valuation date of June 30, 2013, and projected to June 30, 2014. There were no significant events during
the projection period, therefore only the addition of service cost and interest cost offset by actual benefit
payments contribute to the change in TPL. (In future years, both the beginning and end of year TPL will
be measured as of a valuation date one year prior and projected to the appropriate date).
The Plan Fiduciary Net Position (FNP) is the fair or market value of assets. The FNP at the beginning of
the year is based on the actuarial valuation as of June 30, 2013. The FNP at the end of the measurement
year, June 30, 2014, is also measured as of the valuation date of June 30, 2013, and projected to
June 30, 2014. There were no significant events during the projection period, therefore only the
employer and employee contributions, net investment income, benefit payments and administrative
costs contribute to the change in FNP. (In future years, both the beginning and end of year FNP will be
measured as of a valuation date one year prior and projected to the appropriate date).
69
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 9 – PENSION PLANS (Continued)
The Net Pension Liability (NPL) is the City liability for benefits provided through its defined benefit
plan administered by MCERA. It is calculated by reducing the TPL by the FNP.
Actuarial assumptions:
As noted on the previous page, both the TPL as of June 30, 2013, and the TPL as of June 30, 2014, were
based upon the same data, actuarial methods and assumptions, and plan provisions as were used in the
actuarial valuation as of June 30, 2013. The actuarial assumptions were based on the results of an
actuarial experience study for the period of July 1, 2008 - June 30, 2011. The key assumptions in the
valuation were:
Inflation: 3.25%
Amortization growth rate: 3.25%
Salary increases: 3.25% plus merit component
COLA increases:
o 3.0% for those with a 4% COLA cap,
o 2.7% for those with a 3% COLA cap, and
o 1.9% for those with a 2% COLA cap
Investment rate of return: 7.5% net of investment expense
Post-Retirement Mortality: Sex distinct RP-2000 Combined Mortality, projected to 2010
using Scale AA, with ages set back one year for male and two years for female members
Because the same actual valuation was used for both the beginning and ending TPLs, there was no
change in TPL attributable to assumption changes.
The investment income exceeded the service cost, interest cost and administrative expense, which,
coupled with employer and employee contributions, resulted in a decrease in the Net Pension Liability
(NPL) from approximately $124.9 million as of June 30, 2013, to approximately $74.3 million as of
June 30, 2014. This amount is used for the purpose of reporting the City’s share of NPL in the current
reporting year, because the only MCERA GASB 67/68 report available at the time of the audit was that
prepared for its report as of June 30, 2014.
Asset Allocation Policy and Expected Long-term Rate of Return by Asset Class
The MCERA Board of Retirement has adopted an Investment Policy Statement (IPS), which provides
the framework for the management of MCERA’s investments. The IPS establishes MCERA’s
investment objectives and defines the principal duties of the Retirement Board, the custodian bank, and
the investment managers. The asset allocation plan is an integral part of the IPS and is designed to
provide an optimum and diversified mix of asset classes with return expectations to satisfy expected
liabilities while minimizing risk exposure. MCERA currently employs external investment managers to
manage its assets subject to the provisions of the policy. Plan assets are managed on a total return basis
with a long term objective of achieving and maintaining a fully funded status for the benefits provided
through the Plan. The following was the Retirement Board’s adopted asset allocation policy as of June
30, 2014:
70
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 9 – PENSION PLANS (Continued)
Asset Class Target AllocationLong-Term Expected Real Rate of Return
Domestic Equity 32% 5.35%
International Equity 22% 5.50%
Fixed Income 23% 0.75%
Real Estate 15% 3.90%
Private Equity 8% 6.25%
Total 100%
Determination of Discount Rate
The discount rate used to measure the Total Pension Liability was 7.5%. Related to the discount rate is
the funding assumption that employees will continue to contribute to the plan at the required rates and
employers will continue the historical and legally required practice of contributing to the plan based on
an actuarially determined contribution, reflecting a payment equal to annual normal cost, a portion of
the expected administrative expenses, an amortization payment for the extraordinary losses from 2008
amortized over a closed period (25 years remaining as of the June 30, 2013 actuarial valuation) and an
amount necessary to amortize the remaining Unfunded Actuarial Liability as a level percentage of
payroll over a closed period (17 years remaining as of the June 30, 2013 actuarial valuation).
A change in the discount rate would affect the measurement of the TPL. A lower discount rate results in
a higher TPL and higher discount rates results in a lower TPL. Because the discount rate does not affect
the measurement of assets, the percentage change in the NPL can be very significant for a relatively
small change in the discount rate. A one percent decrease in the discount rate increases the TPL by
approximately 13% and increases the NPL by approximately 114%. A one percent increase in the
discount rate decreases the TPL by approximately 10% and decreases the NPL by approximately 95%.
The table below shows the sensitivity of the NPL to a one percent decrease and a one percent increase in
the discount rate:
1%Discount 1%
Decrease Rate Increase
Description 6.50%7.50%8.50%
Total Pension Liability $762,606,311 $677,753,566 $607,192,271
Fiduciary Net Position 603,499,779 603,499,779 603,499,779
Net Pension Liability $159,106,532 $74,253,787 $3,692,492
Fiduciary Net Position as a Percentage of the Total Pension Liability 79.1%89.0%99.4%
Sensitivity of Net Pension Liability to Changes in Discount Rate
Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Pension Resources
The impact of experience gains or losses and assumption changes on the Total Pension Liability (TPL)
are recognized in the proportionate share of the pension expense over the average expected remaining
service life of all active and inactive members of the plan. As of the measurement date, this recognition
period was 4 years.
71
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 9 – PENSION PLANS (Continued)
During the measurement year, the City of San Rafael’s proportionate share of the Net Pension Liability
increased by $6,072,211. Of this amount, $1,518,053 was recognized in the current year, leaving a
balance of $4,554,158 to be reported as a deferred outflow that will be recognized in future years.
During the measurement year, the City of San Rafael’s proportionate share of the total contributions
was $4,804,506 less than its actual contribution. Of this amount, $1,201,127 was recognized in the
current year, leaving a balance of $3,603,379 to be reported as a deferred inflow that will be recognized
in future years.
The impact of investment gains and losses is recognized over a period of five years. During the
measurement year, there was an investment gain of approximately $54.3 million. Approximately
$10.9 million of that gain was recognized in the current year, leaving a balance of $43.4 million of
deferred inflows to be recognized at an equivalent amount over each of the next four years.
The following tables show the current balance and sources of deferred outflows and inflows related to
the City’s defined benefit retirement plan, and the scheduled recognition of these deferred amounts:
Deferred Deferred
Outflows of Inflows of
Description Resources Resources
Changes in assumptions $4,554,158
Changes in proportion and difference between City
contributions and proportionate share of contributions $3,603,379
Actual FY 14-15 contributions (post measurement date) 17,802,358
Net difference between projected and actual earnings
on pension plan investments 43,441,115
Deferred Inflows and Outflows Before Allocations $22,356,516 $47,044,494
Allocation to SRSD
Allocation of Deferred Inflows (measurement date) $1,611,302
Allocation of Deferred Outflows (measurement date) $155,983
Allocation of Additional Deferred Outflows (contributions) 609,741
Net Deferred Inflows and Outflows $21,590,792 $45,433,192
$17,802,358 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended
June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized as pension expense as follows:
Increase
(Decrease) of
Year ended June 30, Pension Expense
2016 (10,543,353)
2017 (10,543,353)
2018 (10,543,352)
2019 (10,860,278)
72
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 9 – PENSION PLANS (Continued)
For the year ended June 30, 2015, the City recognized a pension expense of $9,356,796. This expense is
allocated to Governmental activities by function, as well as to the Parking Fund. The table below
presents the sources of the pension expense.
Operating Expenses
Service cost $14,726,661
Employee contributions (5,569,237)
Administrative expenses 1,353,194
Sub-total 10,510,618
Financing Expenses
Interest cost 47,928,856
Expected return on assets (38,539,325)
Sub-total 9,389,531
Changes
Benefit changes -
Recognition of assumption changes 316,926
Recognition of liability gains and losses -
Recognition of investment gains and losses (10,860,279)
Sub-total (10,543,353)
Pension Expense $9,356,796
Pension Expense as % of Payroll 29.77%
Pension Expense for the year ended June 30, 2015
D. Subsequent Event – Updated Actuarial Information
On November 2, 2015 City staff presented the City’s financial statements to Council for acceptance,
at which time City staff and Council discussed the Pension Accounting Change required by GASB
68. After some discussion, management elected to disclose the impact on pension liability based on
actuarial information as of June 30, 2014, which is more recent than the June 30, 2013 actuarial
information used for the reporting of pension liability as of June 30, 2015, pursuant to GASB 68
requirements. On November 4, 2015, which followed the close of the fiscal year 2014-2015 audit, the
MCERA Board accepted its financial statements and its GASB 67/68 report, as of June 30, 2015. As
a result, the City became aware that its NPL increased significantly by $68 million to $142.3 million
due to a change in actuarial assumptions. MCERA’s updated report incorporated the following two
significant changes, both of which contributed to the increase in the measurement of pension liability:
Investment rate of return: reduced from 7.50% to 7.25%, net of investment expense
Post-Retirement Mortality: Adopted CALPERS mortality tables projected generationally using
Scale MP2014
73
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 9 – PENSION PLANS (Continued)
In addition to these factors, the MCERA investment return for the fiscal year ended June 30, 2015,
has been preliminary calculated to be 4.54%, which was short of the 7.25% assumption. MCERA
measured the City’s share of NPL at $142.3 million as of the report date, a $68 million increase from
that of the previous year. The table below compares the major assumptions and results:
Pension Liability, measured on
June 30, 2014 and reported by
the City at June 30, 2015
Pension Liability, measured on
June 30, 2015 and expected to
be reported by the City at June
30, 2016
MCERA Valuation Date June 30, 2013 June 30, 2014
Investment Rate of Return 7.50%7.25%
Mortality Assumptions RP-2000 CALPERS MP2014
Actual Investment Return n/a 4.54% (preliminary)
Net Pension Liability $74.3 million $142.3 million
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. No forfeitures were noted during the current period.
During the year, the City and employees each contributed $79,438. The total covered payroll of
employees participating in the plan for the year ended June 30, 2015, was $2,118,345. The total payroll
for the year was $38,294,270.
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
$217,298 to the plan on behalf of these employees.
74
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS
The City provides certain health care benefits for retired employees and their spouses under a cost
sharing defined benefit plan. 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, 2015, 323
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,
2015, 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
-
- Age 70
- 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, 2013 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) 4.00% investment rate of return and (b) 3.25% of general inflation increase,
and (c) a healthcare trend of declining annual increases ranging from 8.30% in 2015 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.
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 21-year fixed
(closed) period for June 30, 2014 in its June 30, 2013 actuarial valuation.
75
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Funding Progress and Funded Status
During the fiscal year ended June 30, 2015, 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:
Amounts
(in thousands)
Annual required contribution (ARC) $2,112
Interest on net OPEB obligation 705
Adjustment to annual required contribution (699)
Annual OPEB cost 2,118
Contributions made:
Benefits payment 2,100
Additional contribution to OPEB Trust 150
Total contributions 2,250
Change in net OPEB obligation/(asset)(132)
Net OPEB Obligation (Asset) at June 30, 2014 9,296
Net OPEB Obligation (Asset) at June 30, 2015 $9,164
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, 2015, the account balance in the CERBT was $15,607,756.
76
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
For the past three fiscal years, the City has calculated and recorded 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, 2013 $2,434 $2,495 $2,573 103% $9,516
June 30, 2014 2,496 2,380 2,600 109% 9,296
June 30, 2015 2,112 2,118 2,250 106% 9,164
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 last three actuarial studies 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% $36,470 (119%)
6/30/2011 9,861 35,156 (25,295) 28% 31,692 (80%)
6/30/2013 12,505 33,549 (21,044) 37% 31,429 (67%)
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, 2015. 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.
77
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
B. The Marin General Services Authority (MGSA)
The MGSA was formed by the County of Marin and twelve local agencies to acquire street light
facilities, operate the facilities during 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
$3,170 for the year ended June 30, 2015. Financial statements of the MGSA can be obtained at 555
Northgate Drive, Suite 230, San Rafael, California 94903.
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 $287,327 of the Authority’s operation and debt service for the fiscal year ended
June 30, 2015. 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 $119,231 for the year ended June 30, 2015. Financial
statements of the Agency can be obtained at 555 Northgate Drive, Suite 230, San Rafael, California
94903.
78
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
F. The Marin County Hazardous and Solid Waste Joint Powers Authority
The Authority was established by the County, local cities, and waste franchising districts to finance,
prepare and implement source reduction and recycling elements on a county-wide integrated waste
management plan as required by State Assembly Bill 939. The City’s contribution to the Authority
was $15,750 for the year ended June 30, 2015. Financial statements of the Authority can be obtained
at 3501 Civic Center Drive, San Rafael, California 94903.
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 $99,471,049. 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, 2015, the City contributed $248,844 for
coverage during the current year and received a refund of $44,876 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. Financial
statements for the risk pools may be obtained from CJPRMA at 3201 Doolan Road, Suite 285,
Livermore, California 94551.
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.
79
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 13 - RISK MANAGEMENT (Continued)
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, 2015:
General Workers'Totals, as of June 30
Liability Compensation 2015 2014
Balance, beginning of year $1,128,436 $5,461,270 $6,589,706 $5,915,349
Current year claims and changes
in estimates 724,471 2,012,974 2,737,445 2,545,591
Claims paid (525,867) (1,481,866) (2,007,733) (1,871,234)
Balance, end of year $1,327,040 $5,992,378 $7,319,418 $6,589,706
Due in one year $544,399 $1,401,393 $1,945,792 $2,079,523
Due in more than one year 782,641 4,590,985 5,373,626 4,510,183
Total claim liabilities $1,327,040 $5,992,378 $7,319,418 $6,589,706
The claims settlements have not exceeded insurance coverage for the past three years.
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, 2015, the City had constructed 400 ramps.
80
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
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).
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.
81
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 15 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-
PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
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.
Finding of Completion and Long-Range Property Management Plan
On November 24, 2014, the City of San Rafael received a finding of completion from the California
Department of Finance. The finding of completion enables the Successor Agency to place loan
agreements between the former redevelopment agency and the sponsoring entity on the Recognized
Obligations Payments Schedule (ROPS), as an enforceable obligation, provided the Oversight Board
makes a finding that the loan was for legitimate purposes in accordance with the Health and Safety
Code.
On May 24, 2015, in accordance with Health and Safety Code Section 34191.5(b), the City submitted
its Long-Range Property Management Plan (LRPMP) to the California Department of Finance. The
LRPMP was approved by the Oversight Board on May 18, 2015 by Resolution 2015-6.
The final resolution of the Long-Range Property Management plan is uncertain, and will be
dependent upon future actions taken by the State. The properties subject to the plan are currently
reflected in the City’s fixed assets and may be subject to transfer back to the Successor Agency. The
City does not believe that these adjustments, if required, will be material.
82
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
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.
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.
83
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
NOTE 15 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-
PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
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 $28.7 million in remaining debt service on the Bonds,
which is scheduled to occur in 2023. For fiscal year June 30, 2015, 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, 2015:
Authorized Balance Balance Current
and Issued June 30, 2014 Additions Retirements June 30, 2015 Portion
San Rafael Redevelopment Agency
1999 Tax Allocation Bonds
Capital Appreciation Bonds
5.58%-5.6%, due 12/1/2022 $2,389,004 $5,439,725 $308,442 $5,748,167
2002 Tax Allocation Refunding Bonds
2.00%-5.25%, due 12/1/2021 25,020,000 9,455,000 $1,655,000 7,800,000 $1,740,000
2009 Tax Allocation Refunding Bonds
3.00%-5.00%, due 12/1/2022 14,660,000 10,985,000 1,020,000 9,965,000 1,060,000
Add: deferred bond premium costs 718,744 79,861 638,883
Total Successor Agency Long-term Debt $26,598,469 $308,442 $2,754,861 $24,152,050 $2,800,000
Debt Service Requirements
Annual debt service requirements are shown below:
For the Year Governmental Activities
Ended June 30 Principal Interest
2016 $2,800,000 $766,926
2017 2,930,000 634,276
2018 3,080,000 484,026
2019 3,229,081 370,676
2020 3,309,082 297,019
2021 - 2023 10,380,354 371,494
Totals 25,728,517 $2,924,417
Reconciliation of long-term debt:
Less unaccreted discount (2,215,350)
Add deferred bond premium costs 638,883
$24,152,050
84
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2015
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.
The following table summarizes the activity for the fiscal year ended June 30, 2015:
Approved Balance Balance
Amount June 30, 2014 Additions Retirements June 30, 2015
Unfunded Pension Liability $1,904,431 $1,333,102 $190,443 $1,142,659
Unfunded OPEB Liability 502,000 446,222 55,778 390,444
Total Long Term Obligations $1,779,324 $246,221 $1,533,103
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, 2015, the Successor Agency had prepared eight 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.
85
REQUIRED SUPPLEMENTAL INFORMATION
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2015
Schedule of the City's Proportionate Share of the Net Pension Liability
Last 10 years*
6/30/2015
City's proportionate share 30.0453%
Proportionate share of total pension liability $677,753,565
Proportionate share of fiduciary net position 603,499,779
Proportionate share of the net pension liability $74,253,786
Plan fiduciary net position as a percentage of the total pension liability 89.04%
Covered employee payroll $31,429,178
Net pension liability as a percentage of covered employee payroll 236.26%
* - The fiscal year ended June 30, 2015 was the first year of implementation, therefore only one year is shown
88
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2015
Schedule of Contributions
City of San Rafael, an Agent Multiple-Employer Defined Benefit Pension
As of June 30, 2015
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
2015
Contractually required contribution 17,802,358$
Contributions in Relation to the
Contractually required contribution 17,802,358
Contribution Deficiency/ (Excess) -$
Covered employee payroll 31,073,560$
Contributions as a percentage of
covered employee payroll 57.29%
Notes to Schedule
Valuation Date / Timing 6/30/2013 (for contributions made in FY2014-2015)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2014-15):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Actuarial Loss from 2009
Remaining Amortization period Unfunded liability - 17 years / Extraordinary Actuarial Loss - 25 years
Asset valuation method 5-year smoothed market, 80% /120% corridor around market
Inflation 3.25%
Salary increases 3.25% plus merit component based on employee classification and years of service
Investment Rate of Return 7.50%
Retirement Age Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Healthy Mortality Sex distinct RP-2000 Combined Mortality projected to 2010 using Scale AA
with ages set back one year for male members / two years for female members
Disabled Mortality Sex distinct RP-2000 Combined Mortality projected to 2010 using Scale AA
with ages set forward three years for all members
89
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.
91
CITY OF SAN RAFAEL
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and special assessments $55,766,400 $56,302,761 $56,541,604 $238,843
Licenses and permits 1,883,000 2,083,000 2,456,820 373,820
Fines and forfeitures 463,368 463,368 505,029 41,661
Use of money and properties 269,474 269,474 290,103 20,629
Intergovernmental 6,968,712 7,084,898 7,846,436 761,538
Charges for services 2,255,000 2,355,000 2,660,869 305,869
Other revenue 547,299 547,299 446,272 (101,027)
Total Revenues 68,153,253 69,105,800 70,747,133 1,641,333
EXPENDITURES
Current:
General government 9,543,140 9,333,799 9,530,931 (197,132)
Public safety 36,741,618 36,755,281 36,564,699 190,582
Public works and parks 10,452,515 10,391,313 10,392,192 (879)
Community development 3,305,736 3,428,738 3,416,859 11,879
Culture and recreation 2,811,278 2,879,917 2,801,488 78,429
Capital outlay 130,000 130,000
Capital improvement/special projects 15,522 30,676 (15,154)
Debt service:
Principal 75,172 (75,172)
Interest and fiscal charges 351,685 284,288 67,397
Total Expenditures 62,854,287 63,286,255 63,096,305 189,950
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 5,298,966 5,819,545 7,650,828 1,831,283
OTHER FINANCING SOURCES (USES)
Transfers in 1,290,207 1,290,207 1,039,150 (251,057)
Transfers out (1,650,000) (1,697,664) (1,697,664)
Total Other Financing Sources (Uses)(359,793) (407,457) (658,514) (251,057)
Net Change in Fund Balances $4,939,173 $5,412,088 6,992,314 $1,580,226
FUND BALANCES, BEGINNING OF YEAR 7,369,487
FUND BALANCES, END OF YEAR $14,361,801
92
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, 2015
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and properties $20,400 $20,400 $35,984 $15,584
Charges for services 30,000 30,000 288,728 258,728
Total Revenues 50,400 50,400 324,712 274,312
EXPENDITURES
Capital improvement/special projects 300,000 132,053 167,947
Total Expenditures 300,000 132,053 167,947
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 50,400 (249,600) 192,659 442,259
OTHER FINANCING SOURCES (USES)
Transfers out (528,835) (528,835)
Total Other Financing Sources (Uses)(528,835) (528,835)
Net Change in Fund Balances $50,400 ($778,435) (336,176) $442,259
12,575,394
FUND BALANCES, END OF YEAR $12,239,218
FUND BALANCES, BEGINNING OF YEAR
93
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, 2015
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and properties $9,000 $9,000 $22,785 $13,785
Intergovernmental 2,147,763 2,400,265 3,028,659 628,394
Charges for services 843,600 843,600 1,513,798 670,198
Other revenue 762,625 729,150 (33,475)
Total Revenues 3,000,363 4,015,490 5,294,392 1,278,902
EXPENDITURES
Current:
General government 21,027 21,027 21,473 (446)
Public works and parks 3,571,934 5,279,963 1,582,658 3,697,305
Capital outlay 4,171,575 2,465,703 1,705,872
Capital improvement/special projects 1,771,917 307,538 1,464,379
Total Expenditures 3,592,961 11,244,482 4,377,372 6,867,110
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (592,598) (7,228,992) 917,020 8,146,012
OTHER FINANCING SOURCES (USES)
Transfers in 528,835 528,835
Transfers out (400,000) (825,000) (825,000)
Total Other Financing Sources (Uses)(400,000) (296,165) (296,165)
Net Change in Fund Balances ($992,598) ($7,525,157) 620,855 $8,146,012
FUND BALANCES, BEGINNING OF YEAR 6,980,090
FUND BALANCES, END OF YEAR $7,600,945
94
SUPPLEMENTARY INFORMATION
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.
97
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.
98
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.
99
SPECIAL REVENUE FUNDS
Baypoint
Lagoons Household Loch Lomond
Recreation Assessment Hazmat Assessment
Revolving District Facility Childcare District
ASSETS
Cash and investments $338,887 $230,682 $235,555 $922,930 $668,901
Restricted cash and investments
Receivables:
Accounts 193,220 248,611
Taxes 190 117
Grants 19,822
Interest
Loans
Prepaids 421
Total Assets $532,528 $230,872 $484,166 $942,752 $669,018
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $142,178 $12,960 $224,408 $30,944
Deposits payable
Developer deposits payable
Unearned revenue 362,356
Total Liabilities 504,534 12,960 224,408 30,944
Fund Balances:
Nonspendable 421
Restricted 27,573 $217,912 259,758 911,808 $669,018
Committed
Assigned
Total Fund Balances 27,994 217,912 259,758 911,808 669,018
Total Liabilities and Fund Balances $532,528 $230,872 $484,166 $942,752 $669,018
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2015
100
Library Public Development Parkland
Library Assessment Safety Stormwater Services Grants Dedication
$637,418 $666,443 $163,328 $1,773,547 $995,225 $967,524 $1,419,687
8,650 45,000 737
5,763
284,166
125
$637,543 $666,443 $171,978 $1,779,310 $1,040,225 $1,252,427 $1,419,687
$509 $9,261 $1,145 $43,453 $16,267 $91,950 $3,327
20,000 23,063 138,096
1,500
509 9,261 1,145 63,453 40,830 230,046 3,327
125
636,909 657,182 170,833 1,715,857 999,395 1,022,381 1,416,360
637,034 657,182 170,833 1,715,857 999,395 1,022,381 1,416,360
$637,543 $666,443 $171,978 $1,779,310 $1,040,225 $1,252,427 $1,419,687
(Continued)
SPECIAL REVENUE FUNDS
101
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2015
Low and
Emergency Pt. San Pedro Moderate
Medical Business Sewer Maintenance Income
Services Improvement Maintenance Portion Housing
ASSETS
Cash and investments $848,757 $16,691 $182,852 $184,558 $629,585
Restricted cash and investments
Receivables:
Accounts 251,096 91,145
Taxes 26,906 548
Grants 77,055
Interest 102
Loans 230,066
Prepaids 1,813
Total Assets $1,205,627 $16,691 $182,852 $185,106 $950,898
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $18,351 $151,356 $16,446 $5,818
Deposits payable $13,207
Developer deposits payable
Unearned revenue
Total Liabilities 18,351 13,207 151,356 16,446 5,818
Fund Balances:
Nonspendable 1,813
Restricted 1,185,463 3,484 31,496 $168,660 945,080
Committed
Assigned
Total Fund Balances 1,187,276 3,484 31,496 168,660 945,080
Total Liabilities and Fund Balances $1,205,627 $16,691 $182,852 $185,106 $950,898
SPECIAL REVENUE FUNDS
CITY OF SAN RAFAEL
102
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
$242,499 $2,875 $16,573 $146,524 $201,085 $51,090 $223,967
76,511
16,778
206,470
923,000
$448,969 $2,875 $16,573 $146,524 $1,140,863 $51,090 $300,478
$103,657 $236,741
103,657 236,741
345,312 $2,875 $16,573 $146,524 $51,090 $300,478
904,122
345,312 2,875 16,573 146,524 904,122 51,090 300,478
$448,969 $2,875 $16,573 $146,524 $1,140,863 $51,090 $300,478
(Continued)
103
Total
Park Non-Major
Capital Open Radio Telephone Governmental
Projects Space Replacement Replacement Funds
ASSETS
Cash and investments $27,749 $123,337 $395,110 $220,828 $12,534,207
Restricted cash and investments 76,511
Receivables:
Accounts 855,237
Taxes 239,994
Grants 1,304,043
Interest 102
Loans 230,066
Prepaids 2,359
Total Assets $27,749 $123,337 $395,110 $220,828 $15,242,519
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $26,465 $1,135,236
Deposits payable 194,366
Developer deposits payable 1,500
Unearned revenue 362,356
Total Liabilities 26,465 1,693,458
Fund Balances:
Nonspendable 2,359
Restricted 11,902,021
Committed $27,749 931,871
Assigned $123,337 $395,110 194,363 712,810
Total Fund Balances 27,749 123,337 395,110 194,363 13,549,061
Total Liabilities and Fund Balances $27,749 $123,337 $395,110 $220,828 $15,242,519
CAPITAL PROJECT FUNDS
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2015
104
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
Fines and forfeitures
Use of money and properties $25,687 667 $551 $2,176 1,947
Intergovernmental 17,595 281,001
Charges for services 2,725,379 145,795 3,751,090
Other revenue 15,664 1,407 3,895
Total Revenues 2,784,325 26,035 147,753 4,038,162 17,553
EXPENDITURES
Current:
General government
Public safety 155,625
Public works and parks 23,503 2,810
Culture and recreation 4,237,745 3,685,473
Capital outlay
Capital improvement/special projects 28,272 350
Total Expenditures 4,266,017 23,503 155,975 3,685,473 2,810
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,481,692)2,532 (8,222) 352,689 14,743
OTHER FINANCING SOURCES (USES)
Transfers in 1,375,000 25,000
Total Other Financing Sources (Uses)1,375,000 25,000
Net Change in Fund Balances (106,692)2,532 (8,222) 377,689 14,743
Fund Balance, Beginning 134,686 215,380 267,980 534,119 654,275
Fund Balance, Ending $27,994 $217,912 $259,758 $911,808 $669,018
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2015
106
SPECIAL REVENUE FUNDS
Library Public Development Parkland
Library Assessment Safety Stormwater Services Grants Dedication
$867,181 $20,533
$51,047
$1,420 1,838 $221 $5,256 $33,174 2,710 3,936
29,335 70,000 933,899
6,701 2,200 778,048 49,399
463,733 79,916
501,189 869,019 152,337 783,304 82,573 987,656 24,469
32,356 537,034
251,625 603,938
456,115
16,446 838,325 37,300
38,640
41,905 443,371 44,318 45,375
58,351 838,325 251,625 899,486 32,356 1,223,930 82,675
442,838 30,694 (99,288) (116,182) 50,217 (236,274) (58,206)
70,000 297,664 587,500
70,000 297,664 587,500
442,838 30,694 (29,288) (116,182) 50,217 61,390 529,294
194,196 626,488 200,121 1,832,039 949,178 960,991 887,066
$637,034 $657,182 $170,833 $1,715,857 $999,395 $1,022,381 $1,416,360
(Continued)
107
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2015
Low and
Emergency Pt. San Pedro - Moderate
Medical Business Sewer Maintenance Income
Services Improvement Maintenance Portion Housing
REVENUES
Taxes and special assessments $3,820,240 $73,077
Fines and forfeitures
Use of money and properties 1,921 509 $8,273
Intergovernmental 77,055
Charges for services 2,341,127
Other revenue 14,963
Total Revenues 6,240,343 73,586 23,236
EXPENDITURES
Current:
General government 81,893
Public safety 6,273,859
Public works and parks 83,626
Culture and recreation
Capital outlay
Capital improvement/special projects
Total Expenditures 6,273,859 83,626 81,893
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (33,516)(10,040) (58,657)
OTHER FINANCING SOURCES (USES)
Transfers in
Total Other Financing Sources (Uses)
Net Change in Fund Balances (33,516)(10,040) (58,657)
Fund Balance, Beginning 1,220,792 $3,484 $31,496 178,700 1,003,737
Fund Balance, Ending $1,187,276 $3,484 $31,496 $168,660 $945,080
SPECIAL REVENUE FUNDS
108
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
$422,004 $18,615
601 $429 $2,679 $140
949,523
16,778
422,605 429 968,980 18,615 140
104,769
217,739
1,994,581
322,508 1,994,581
100,097 429 (1,025,601) 18,615 140
425,000
425,000
100,097 429 (600,601) 18,615 140
245,215 $2,875 $16,573 146,095 1,504,723 32,475 300,338
$345,312 $2,875 $16,573 $146,524 $904,122 $51,090 $300,478
(Continued)
CAPITAL PROJECT FUNDS
109
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2015
CAPITAL PROJECT FUNDS
Total
Park Non-Major
Capital Open Radio Telephone Governmental
Projects Space Replacement Replacement Funds
REVENUES
Taxes and special assessments $5,262,624
Fines and forfeitures 51,047
Use of money and properties $364 $710 $676 95,885
Intergovernmental 2,358,408
Charges for services 648,660 435,000 10,883,399
Other revenue $5,225 601,581
Total Revenues 5,225 364 649,370 435,676 19,252,944
EXPENDITURES
Current:
General government 651,283
Public safety 7,389,816
Public works and parks 783,793
Culture and recreation 8,815,289
Capital outlay 2,033,221
Capital improvement/special projects 313 4,056 646,191 462,568 1,716,719
Total Expenditures 313 4,056 646,191 462,568 21,390,121
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 4,912 (3,692)3,179 (26,892) (2,137,177)
OTHER FINANCING SOURCES (USES)
Transfers in 2,780,164
Total Other Financing Sources (Uses)2,780,164
Net Change in Fund Balances 4,912 (3,692)3,179 (26,892) 642,987
Fund Balance, Beginning 22,837 127,029 391,931 221,255 12,906,074
Fund Balance, Ending $27,749 $123,337 $395,110 $194,363 $13,549,061
110
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, 2015
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 $25,500 $25,368 ($132)
Licenses and permits
Fines and forfeitures
Use of money and properties $25,250 $25,687 $437 280 667 387
Intergovernmental 29,363 17,595 (11,768)
Charges for services 2,885,830 2,725,379 (160,451)
Other revenue 28,750 15,664 (13,086)
Total Revenues 2,969,193 2,784,325 (184,868) 25,780 26,035 255
EXPENDITURES
Current:
General government
Public safety
Public works and parks 40,871 23,503 17,368
Culture and recreation 4,113,608 4,237,745 (124,137)
Capital outlay
Capital improvement/special projects 35,031 28,272 6,759
Total Expenditures 4,148,639 4,266,017 (117,378) 40,871 23,503 17,368
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,179,446) (1,481,692) (302,246) (15,091) 2,532 17,623
OTHER FINANCING SOURCES (USES)
Transfers in 1,300,000 1,375,000 75,000
Transfers out
Total Other Financing Sources (Uses) 1,300,000 1,375,000 75,000
FUND BALANCES, BEGINNING OF YEAR
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES $120,554 (106,692) ($227,246) ($15,091) 2,532 $17,623
FUND BALANCES, BEGINNING OF YEAR 134,686 215,380
FUND BALANCES, END OF YEAR $27,994 $217,912
112
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)
$160 $551 $391 $300 $2,176 $1,876 800 1,947 1,147
272,691 281,001 8,310
145,788 145,795 7 3,520,095 3,751,090 230,995
1,000 1,407 407 3,895 3,895
146,948 147,753 805 3,793,086 4,038,162 245,076 16,410 17,553 1,143
145,468 155,625 (10,157)
37,836 2,810 35,026
3,866,867 3,685,473 181,394
1,000 350 650
146,468 155,975 (9,507) 3,866,867 3,685,473 181,394 37,836 2,810 35,026
480 (8,222) (8,702) (73,781) 352,689 426,470 (21,426) 14,743 36,169
100,000 25,000 (75,000)
100,000 25,000 (75,000)
$480 (8,222) ($8,702) $26,219 377,689 $351,470 ($21,426) 14,743 $36,169
267,980 534,119 654,275
$259,758 $911,808 $669,018
(Continued)
SPECIAL REVENUE FUNDS
113
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, 2015
Library Library Assessment
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $875,000 $867,181 ($7,819)
Licenses and permits
Fines and forfeitures
Use of money and properties $20,540 $1,420 ($19,120)850 1,838 988
Intergovernmental 25,800 29,335 3,535
Charges for services 7,038 6,701 (337)
Other revenue 463,733 463,733
Total Revenues 53,378 501,189 447,811 875,850 869,019 (6,831)
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation 16,446 (16,446) 875,648 838,325 37,323
Capital outlay
Capital improvement/special projects 66,183 41,905 24,278
Total Expenditures 66,183 58,351 7,832 875,648 838,325 37,323
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (12,805) 442,838 455,643 202 30,694 30,492
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 ($12,805) 442,838 $455,643 $202 30,694 $30,492
FUND BALANCES, BEGINNING OF YEAR 194,196 626,488
FUND BALANCES, END OF YEAR $637,034 $657,182
SPECIAL REVENUE FUNDS
114
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)
$221 $221 2,200 $5,256 3,056 $31,600 $33,174 $1,574
$70,000 70,000
2,200 2,200 772,800 778,048 5,248 1,500 49,399 47,899
75,000 79,916 4,916 5,000 (5,000)
145,000 152,337 7,337 785,000 783,304 (1,696) 33,100 82,573 49,473
90,000 32,356 57,644
278,372 251,625 26,747
825,870 456,115 369,755
1,138,544 443,371 695,173
278,372 251,625 26,747 1,964,414 899,486 1,064,928 90,000 32,356 57,644
(133,372) (99,288) 34,084 (1,179,414) (116,182) 1,063,232 (56,900) 50,217 $107,117
70,000 70,000
70,000 70,000
($63,372) (29,288) $34,084 ($1,179,414) (116,182) $1,063,232 ($56,900) 50,217 $107,117
200,121 1,832,039 949,178
$170,833 $1,715,857 $999,395
(Continued)
SPECIAL REVENUE FUNDS
Development Services
115
Grants Parkland Dedication
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $20,533 $20,533
Licenses and permits
Fines and forfeitures $70,000 $51,047 ($18,953)
Use of money and properties 1,180 2,710 1,530 $1,200 3,936 2,736
Intergovernmental 1,173,566 933,899 (239,667)
Charges for services
Other revenue 197,000 (197,000)
Total Revenues 1,441,746 987,656 (454,090) 1,200 24,469 23,269
EXPENDITURES
Current:
General government 682,600 537,034 145,566
Public safety 605,976 603,938 2,038
Public works and parks 225,000 225,000
Culture and recreation 37,300 (37,300)
Capital outlay 39,334 38,640 694
Capital improvement/special projects 288,320 44,318 244,002 1,036,994 45,375 991,619
Total Expenditures 1,841,230 1,223,930 617,300 1,036,994 82,675 954,319
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (399,484) (236,274) 163,210 (1,035,794) (58,206) 977,588
OTHER FINANCING SOURCES (USES)
Transfers in 297,664 297,664 587,500 587,500
Transfers out
Total Other Financing Sources (Uses)297,664 297,664 587,500 587,500
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES ($101,820) 61,390 $163,210 ($448,294) 529,294 $977,588
FUND BALANCES, BEGINNING OF YEAR 960,991 887,066
FUND BALANCES, END OF YEAR $1,022,381 $1,416,360
SPECIAL REVENUE FUNDS
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2015
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
CITY OF SAN RAFAEL
116
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)
$3,816,506 $3,820,240 $3,734
500 1,921 1,421
174,371 77,055 (97,316)
2,535,000 2,341,127 (193,873)$251,057 ($251,057)
6,526,377 6,240,343 (286,034)251,057 (251,057)
6,596,635 6,273,859 322,776
6,596,635 6,273,859 322,776
(70,258) (33,516) 36,742 251,057 (251,057)
(251,057)251,057
(251,057)251,057
($70,258) (33,516) $36,742
1,220,792 $3,484 $31,496
$1,187,276 $3,484 $31,496
(Continued)
SPECIAL REVENUE FUNDS
117
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 $73,077 ($15,523)
Licenses and permits
Use of money and properties 240 509 269 $250 $8,273 $8,023
Intergovernmental
Charges for services
Other revenue 70,000 14,963 (55,037)
Total Revenues 88,840 73,586 (15,254) 70,250 23,236 (47,014)
EXPENDITURES
Current:
General government 305,000 81,893 223,107
Public safety
Public works and parks 86,000 83,626 2,374
Culture and recreation
Capital outlay
Capital improvement/special projects
Total Expenditures 86,000 83,626 2,374 305,000 81,893 223,107
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,840 (10,040) (12,880) (234,750) (58,657) 176,093
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 $2,840 (10,040) ($12,880) ($234,750) (58,657) $176,093
FUND BALANCES, BEGINNING OF YEAR 178,700 1,003,737
FUND BALANCES, END OF YEAR $168,660 $945,080
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2015
BUDGET AND ACTUAL
CITY OF SAN RAFAEL
SPECIAL REVENUE FUNDS
118
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)
$350,000 $422,004 $72,004
210 601 391 $200 $429 $229
350,210 422,605 72,395 200 429 229
145,030 104,769 40,261
325,000 217,739 107,261
470,030 322,508 147,522
(119,820) 100,097 219,917 200 429 229
($119,820) 100,097 $219,917 $200 429 $229
245,215 $16,573 146,095
$345,312 $16,573 $146,524
DEBT SERVICE FUNDSSPECIAL REVENUE FUNDS
119
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.
Vehicle Replacement Fund – Established to provide for the replacement of vehicles.
Equipment Replacement Fund – Established to provide for the replacement of computers and
equipment.
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.
121
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2015
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
ASSETS
Current Assets:
Cash and investments $1,252,318 $3,363,615 $2,361,733 $708,522 $1,384,731
Accounts receivable 44,175 44,876
Loans receivable 21,876
Prepaids 765 2,849
Capital assets:
Nondepreciable assets 204,136
Depreciable assets, net 1,247,349 4,693,475 867,932
Total Assets 2,703,803 8,123,141 3,230,430 708,522 1,432,456
LIABILITIES
Current Liabilities:
Accounts payable 254,128 915,557 188,037 8,320
Claims payable - due in one year 544,399
Non-current Liabilities:
Claims payable - due in more than one year 782,641
OPEB liability
Total Liabilities 254,128 915,557 188,037 8,320 1,327,040
NET POSITION:
Net investment in capital assets 1,451,485 4,693,475 867,932
Unrestricted 998,190 2,514,109 2,174,461 700,202 105,416
Total Net Position $2,449,675 $7,207,584 $3,042,393 $700,202 $105,416
122
OPEB/
Workers' Dental Employee Retiree
Compensation Insurance Retirement Medical Total
$6,418,746 $128,267 $2,284,238 $429,751 $18,331,921
76,992 166,043
21,876
3,614
204,136
6,808,756
6,418,746 128,267 2,284,238 506,743 25,536,346
10,953 3,613 1,380,608
1,401,393 1,945,792
4,590,985 5,373,626
9,164,000 9,164,000
6,003,331 3,613 9,164,000 17,864,026
7,012,892
415,415 124,654 2,284,238 (8,657,257) 659,428
$415,415 $124,654 $2,284,238 ($8,657,257) $7,672,320
123
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2015
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
OPERATING REVENUES
Charges for current services $700,000 $1,350,481 $2,272,424 $775,000 $914,880
Other operating revenues 27,850 44,876
Total Operating Revenues 700,000 1,350,481 2,272,424 802,850 959,756
OPERATING EXPENSES
Personnel 166,162 4,435
Insurance premiums and claims 861,089
Maintenance and repairs 426,448 38,000 11,145
General and administrative 1,559,098 619,762 170,513
Depreciation expense 3,375 746,971 93,762
Total Operating Expenses 429,823 784,971 1,830,167 624,197 1,031,602
Operating Income (Loss)270,177 565,510 442,257 178,653 (71,846)
NONOPERATING REVENUES (EXPENSES)
Investment income 3,458 8,809 4,982 6,232 4,452
Miscellaneous Income 87,421
Total Nonoperating
Revenues (Expenses)3,458 96,230 4,982 6,232 4,452
Net income (loss) before transfers 273,635 661,740 447,239 184,885 (67,394)
CONTRIBUTIONS 10,000
TRANSFERS OUT (587,500)
Change in Net Position (313,865) 661,740 457,239 184,885 (67,394)
NET POSITION, BEGINNING OF YEAR,
AS ADJUSTED 2,763,540 6,545,844 2,585,154 515,317 172,810
NET POSITION, END OF YEAR $2,449,675 $7,207,584 $3,042,393 $700,202 $105,416
124
OPEB/
Workers' Dental Employee Retiree
Compensation Insurance Retirement Medical Total
$1,686,340 $399,223 $450,000 $2,325,623 $10,873,971
2,644 946,797 1,022,167
1,686,340 401,867 450,000 3,272,420 11,896,138
170,597
1,790,808 408,628 3,221,466 6,281,991
475,593
110,570 3,342 2,463,285
844,108
1,901,378 408,628 3,342 3,221,466 10,235,574
(215,038) (6,761) 446,658 50,954 1,660,564
19,108 557 6,283 (1) 53,880
87,421
19,108 557 6,283 (1) 141,301
(195,930) (6,204) 452,941 50,953 1,801,865
10,000
(276,520)(864,020)
(195,930) (6,204) 176,421 50,953 947,845
611,345 130,858 2,107,817 (8,708,210) 6,724,475
$415,415 $124,654 $2,284,238 ($8,657,257) $7,672,320
125
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2015
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $700,000 $1,317,244 $2,272,424 $775,000 $950,696
Cash payments to suppliers for goods and services (189,557) 786,041 (1,456,575) (627,274) (836,013)
Cash payments to employees for salaries and benefits (166,162) (4,435)
Other operating revenues 27,850 44,876
Payment to OPEB Trust
Cash Flows from Operating Activities 510,443 2,103,285 649,687 171,141 159,559
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Contributions 10,000
Interfund payments (587,500)
Cash Flows from Noncapital
Financing Activities (587,500)10,000
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (443,543) (1,654,098) (494,627)
Proceeds from sale of property 87,421
Cash Flows from Investing Activities (443,543) (1,566,677) (494,627)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 3,458 8,809 4,982 6,232 4,452
Cash Flows from Investing Activities 3,458 8,809 4,982 6,232 4,452
Net increase (decrease) in cash and cash equivalents (517,142) 545,417 170,042 177,373 164,011
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,769,460 2,818,198 2,191,691 531,149 1,220,720
CASH AND CASH EQUIVALENTS, END OF YEAR $1,252,318 $3,363,615 $2,361,733 $708,522 $1,384,731
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$270,177 $565,510 $442,257 $178,653 ($71,846)
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation 3,375 746,971 93,762
Net change in assets and liabilities:
Accounts receivable (44,175)35,816
Loans receivable 10,938
Prepaids and deposits (765)(2,849)
Net OPEB Liability
Accounts payable 236,891 824,041 114,433 (7,512) (166)
Claims payable 198,604
Net Cash Provided by (Used in) Operating Activities $510,443 $2,103,285 $649,687 $171,141 $159,559
126
OPEB/
Workers' Dental Employee Employee
Compensation Insurance Retirement Retirement Total
$1,686,873 $399,223 $450,000 $2,432,219 $10,983,679
(1,366,200) (408,659) (3,342) (3,222,094) (7,323,673)
(170,597)
2,644 946,797 1,022,167
(132,000) (132,000)
320,673 (6,792) 446,658 24,922 4,379,576
10,000
(276,520) (864,020)
(276,520)(854,020)
(2,592,268)
87,421
(2,504,847)
19,108 557 6,283 (1) 53,880
19,108 557 6,283 (1) 53,880
339,781 (6,235) 176,421 24,921 1,074,589
6,078,965 134,502 2,107,817 404,830 17,257,332
$6,418,746 $128,267 $2,284,238 $429,751 $18,331,921
($215,038) ($6,761) $446,658 $50,954 $1,660,564
844,108
533 106,596 98,770
10,938
105 (3,509)
(132,000) (132,000)
4,070 (31)(733) 1,170,993
531,108 729,712
$320,673 ($6,792) $446,658 $24,922 $4,379,576
127
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.
129
CITY OF SAN RAFAEL
AGENCY FUNDS
COMBINING STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED JUNE 30, 2015
Balance Balance
June 30, 2014 Additions Deductions June 30, 2015
Pt. San Pedro Road Assessment District
Assets
Restricted cash and investments $297,808 $1,210 $4,688 $294,330
Taxes receivable 1,210 1,134 1,210 1,134
Total Assets $299,018 $2,344 $5,898 $295,464
Liabilities
Interest payable $29,704 $978 $28,726
Due to bondholders 269,314 $2,344 4,920 266,738
Total Liabilities $299,018 $2,344 $5,898 $295,464
Balance Balance
June 30, 2014 Additions Deductions June 30, 2015
Total Agency Fund
Assets
Restricted cash and investments $297,808 $1,210 $4,688 $294,330
Taxes receivable 1,210 1,134 1,210 1,134
Total Assets $299,018 $2,344 $5,898 $295,464
Liabilities
Interest payable $29,704 $978 $28,726
Due to bondholders 269,314 $2,344 4,920 266,738
Total Liabilities $299,018 $2,344 $5,898 $295,464
130
Public Works Truck
STATISTICAL SECTION
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 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.
133
CITY OF SAN RAFAEL
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
As of June 30
2006 2007 2008 2009
Governmental activities
Net investment in capital assets $175,806,100 $171,849,149 $176,724,820 $178,744,119
Restricted 620,889 31,124,935 26,848,900 25,721,231
Unrestricted 32,739,318 4,499,136 4,273,937 (700,985)
Total governmental activities net position $209,166,307 $207,473,220 $207,847,657 $203,764,365
Business-type activities
Net investment in capital assets $9,819,435 $9,717,501 $10,130,329 $11,243,637
Unrestricted 2,113,659 2,226,838 2,471,117 1,936,958
Total business-type activities net position $11,933,094 $11,944,339 $12,601,446 $13,180,595
Primary government
Net investments in capital assets $185,625,535 $181,566,650 $186,855,149 $189,987,756
Restricted 620,889 31,124,935 26,848,900 25,721,231
Unrestricted 34,852,977 6,725,974 6,745,054 1,235,973
Total primary government net position $221,099,401 $219,417,559 $220,449,103 $216,944,960
(a) The City adjusted certain beginning balances during fiscal years 2013-2014 and 2014-2015. Financial data shown for
proceeding years were not adjusted for the presentation.
($90,000)
($40,000)
$10,000
$60,000
$110,000
$160,000
$210,000
$260,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Th
o
u
s
a
n
d
s
Net of Related Debt Restricted Unrestricted
134
2010 2011 2012 2013 2014 2015 (a)
$173,536,144 $174,281,922 $192,361,245 $193,222,791 $190,286,275 $190,621,085
26,150,254 21,322,937 24,693,205 35,780,412 37,339,141 33,389,224
(4,631,276) (8,170,324) 10,652,263 11,151,318 (196,824) (82,336,534)
$195,055,122 $187,434,535 $227,706,713 $240,154,521 $227,428,592 $141,673,775
$10,950,825 $10,793,592 $10,650,558 $10,670,190 $10,786,591 $10,744,952
2,017,354 1,948,447 2,495,889 2,501,498 2,049,957 (938,519)
$12,968,179 $12,742,039 $13,146,447 $13,171,688 $12,836,548 $9,806,433
$184,486,969 $185,075,514 $203,011,803 $203,892,981 $201,072,866 $201,366,037
26,150,254 21,322,937 24,693,205 35,780,412 37,339,141 33,389,224
(2,613,922) (6,221,877) 13,148,152 13,652,816 1,853,133 (83,275,053)
$208,023,301 $200,176,574 $240,853,160 $253,326,209 $240,265,140 $151,480,208
135
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2006 2007 2008 2009
Expenses
Governmental Activities:
General government $6,252,533 $8,908,433 $8,621,079 $8,075,344
Public safety 33,178,537 37,271,272 40,845,347 42,708,538
Public works and parks 23,401,246 20,998,749 22,105,367 23,036,676
Community development 4,194,249 4,384,408 5,811,866 5,759,171
Culture and recreation 8,652,445 9,729,485 10,300,230 11,505,896
Interest on long-term debt and fiscal charges 1,725,559 2,183,683 1,989,620 1,907,229
Total Governmental Activities Expenses 77,404,569 83,476,030 89,673,509 92,992,854
Business-Type Activities:
Parking services 2,761,511 3,110,254 3,282,235 3,563,235
Total Business-Type Activities Expenses 2,761,511 3,110,254 3,282,235 3,563,235
Total Primary Government Expenses $80,166,080 $86,586,284 $92,955,744 $96,556,089
Component Unit:
San Rafael Sanitation District $6,148,915 $6,656,432 $8,090,636 $9,143,977
Program Revenues
Governmental Activities:
Charges for services:
General government $402,094 $1,512,814 $1,494,784 $1,738,685
Public safety 5,085,679 5,279,785 5,562,072 5,906,445
Public works and parks 3,799,861 4,030,060 4,983,288 4,753,817
Community development 3,190,832 2,815,009 3,247,024 2,915,872
Culture and recreation 4,368,274 4,521,004 4,870,884 5,253,683
Operating grants and contributions 2,745,570 3,701,901 3,463,616 3,544,248
Capital grants and contributions 3,936,474 2,786,761 3,239,509 7,311,173
Total Government Activities Program Revenues 23,528,784 24,647,334 26,861,177 31,423,923
Business-Type Activities:
Charges for services:
Parking services 3,025,380 3,242,046 4,161,936 4,454,490
Total Business-Type Activities Program Revenues 3,025,380 3,242,046 4,161,936 4,454,490
Total Primary Government Program Revenues $26,554,164 $27,889,380 $31,023,113 $35,878,413
Component Unit:
Charges for services:
San Rafael Sanitation District $6,340,773 $7,857,916 $9,366,305 $10,567,647
Net (Expense)/Revenue
Governmental Activities ($53,875,785) ($58,828,696) ($62,812,332) ($61,568,931)
Business-Type Activities 263,869 131,792 879,701 891,255
Total Primary Government Net Expense ($53,611,916) ($58,696,904) ($61,932,631) ($60,677,676)
Component Unit Activities $191,858 $1,201,484 $1,275,669 $1,423,670
Fiscal Year Ended June 30,
136
2010 2011 2012 2013 2014 2015
$8,396,759 $8,269,846 $10,171,332 $10,202,530 $9,085,672 $9,099,858
42,752,033 44,735,486 39,876,910 41,966,065 43,800,158 39,968,631
17,401,923 17,408,038 17,423,033 17,695,164 22,125,336 16,893,164
6,738,873 7,804,650 4,587,557 3,403,158 3,451,244 3,128,373
11,139,225 11,487,999 11,020,663 11,330,058 11,846,818 11,198,151
2,200,024 1,621,605 1,224,991 283,805 327,350 284,288
88,628,837 91,327,624 84,304,486 84,880,780 90,636,578 80,572,465
4,016,198 3,785,751 3,446,482 3,545,387 4,125,476 4,249,597
4,016,198 3,785,751 3,446,482 3,545,387 4,125,476 4,249,597
$92,645,035 $95,113,375 $87,750,968 $88,426,167 $94,762,054 $84,822,062
$9,087,354 $9,677,630 $10,185,779 $10,169,082 $11,378,055 $11,375,239
$1,665,460 $1,636,542 $1,986,791 $2,655,749 $2,838,940 $1,379,523
6,308,912 6,167,925 7,122,396 6,478,321 6,014,034 4,966,251
3,916,874 4,141,103 5,214,267 7,837,472 6,101,460 3,078,267
2,830,179 2,676,663 3,255,367 3,984,204 3,279,251 3,796,684
5,280,458 5,362,497 5,873,147 6,075,129 6,417,003 6,537,646
3,721,055 3,651,902 3,158,281 4,085,073 4,698,142 4,185,450
2,116,906 1,857,670 2,705,696 5,876,993 762,719 1,308,027
25,839,844 25,494,302 29,315,945 36,992,941 30,111,549 25,251,848
4,244,404 4,011,333 3,901,175 3,990,706 4,485,394 5,173,557
4,244,404 4,011,333 3,901,175 3,990,706 4,485,394 5,173,557
$30,084,248 $29,505,635 $33,217,120 $40,983,647 $34,596,943 $30,425,405
$11,559,549 $12,223,779 $12,368,889 $12,413,123 $13,732,496 $14,629,758
($62,788,993) ($65,833,322) ($54,988,541) ($47,887,839) ($60,525,029) ($55,320,617)
228,206 225,582 454,693 445,319 359,918 923,960
($62,560,787) ($65,607,740) ($54,533,848) ($47,442,520) ($60,165,111) ($54,396,657)
$2,472,195 $2,546,149 $2,183,110 $2,244,041 $2,354,441 $3,254,519
137
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2006 2007 2008 2009
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property $20,848,887 $20,360,475 $22,195,606 $21,978,859
Sales 18,188,524 24,484,356 25,764,457 21,970,262
Special assessments 3,017,488 2,998,925 3,503,555
Paramedic 3,210,317
Motor vehicles 372,726 331,620 257,320 197,989
Transient occupancy 1,678,912
Franchise 2,941,149
Business license 2,405,934
Other 6,963,448 8,830,955 9,242,241 1,561,835
Investment earnings 1,248,409 1,669,181 1,583,056 717,968
Gain (Loss) on disposal of assets
Miscellaneous 361,195 491,488 296,454 461,224
Special item - Court fines repayment (1,133,458)
Transfers 201,191 212,170 344,080 361,190
Total Government Activities 51,201,868 58,245,712 63,186,769 57,485,639
Business-Type Activities:
Investment earnings 44,536 91,623 121,486 49,084
Aid from other government agencies 1,309,893
Transfers (201,191) (212,170) (344,080) (361,190)
Total Business-Type Activities 1,153,238 (120,547) (222,594) (312,106)
Total Primary Government $52,355,106 $58,125,165 $62,964,175 $57,173,533
Component Unit:
San Rafael Sanitation District
Property Taxes $179,479 $755,763 $803,071 $855,511
Investment earnings 237,206 367,887 341,032 206,752
Miscellaneous 3,546 3,540
Aid from other governmental agencies 645,804 340,642 577,860 381,144
Total Component Unit $1,062,489 $1,464,292 $1,725,509 $1,446,947
Special Item
Governmental Activities
Component Unit Activities
Change in Net Position
Governmental Activities ($2,673,917) ($582,984) $374,437 ($4,083,292)
Business-Type Activities 1,417,107 11,245 657,107 579,149
Total Primary Government ($1,256,810) ($571,739) $1,031,544 ($3,504,143)
Change in Net Position
Component Unit Activities $1,254,347 $2,665,776 $3,001,178 $2,870,617
Fiscal Year Ended June 30,
138
2010 2011 2012 2013 2014 2015
$21,684,131 $21,632,733 $20,107,637 $17,317,772 $18,439,619 $19,039,443
19,055,124 21,623,445 22,355,749 24,262,282 27,758,971 32,269,915
3,489,494 3,661,064 3,807,545 3,804,985 3,816,070 3,820,240
171,518 297,425
1,558,243 1,644,262 1,866,575 2,185,287 2,332,277 2,661,878
2,868,332 2,990,539 3,076,094 3,331,160 3,260,958 3,272,390
2,317,664 2,296,460 2,332,146 2,507,785 2,588,728 2,670,071
1,411,583 1,930,531 3,574,918 2,929,915 3,452,171 3,295,751
302,180 176,502 205,413 991,762 184,171 216,066
221,791
541,390 1,496,174 542,816 2,580,882 1,140,743 2,254,901
458,300 463,600 57,960 423,817 449,917 432,630
54,079,750 58,212,735 57,926,853 60,335,647 63,423,625 69,933,285
17,678 11,878 7,675 3,739 4,375 7,008
(458,300) (463,600)(57,960) (423,817) (449,917) (432,630)
(440,622) (451,722)(50,285) (420,078) (445,542) (425,622)
$53,639,128 $57,761,013 $57,876,568 $59,915,569 $62,978,083 $69,507,663
$823,187 $1,214,519 $1,192,566 $1,177,469 $1,345,018 $1,319,852
93,274 59,265 38,191 25,591 151,729 171,804
415,391 6,499 9,613 56,589 22,125 35,090
$1,331,852 $1,280,283 $1,240,370 $1,259,649 $1,518,872 $1,526,746
$4,462,815
($4,462,815)
($8,709,243) ($7,620,587) $2,938,312 $12,447,808 $2,898,596 $19,075,483
(212,416) (226,140)404,408 25,241 (85,624)498,338
($8,921,659) ($7,846,727) $3,342,720 $12,473,049 $2,812,972 $19,573,821
$3,804,047 $3,826,432 $3,423,480 $3,503,690 $3,873,313 $318,450
139
CITY SAN RAFAEL
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
As of June 30
2006 2007 2008 2009 2010
General Fund
Pre-GASB 54 Presentation:
Reserved $2,335,391 $905,068 $2,196,153 $2,225,775 $1,763,622
Unreserved 3,362,151 5,016,929 4,022,612 1,670,455 5,038,173
GASB 54 Presentation:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General Fund $5,697,542 $5,921,997 $6,218,765 $3,896,230 $6,801,795
All Other Governmental Funds
Pre-GASB 54 Presentation:
Reserved $21,603,724 $20,773,760 $17,599,142 $16,680,568 $15,352,723
Unreserved, reported in:
Special Revenue Funds 7,168,753 8,107,477 7,413,808 8,641,239 8,778,027
Capital Project Funds 35,430 (1,030,293) 4,527,627
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 $28,772,477 $33,616,223 $28,364,144 $27,652,054 $28,658,377
(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 years 2013-2014 and 2014-2015. 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
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Th
o
u
s
a
n
d
s
Total Fund Balance
140
2011 2012 2013 2014 2015
$589,833 $527,509 $527,235 $503,338 $399,299
200,238 76,188
555,561 651,121 800,876
5,439,879 1,516,644 2,476,676 6,866,149 12,374,002
1,588,500
$6,785,511 $2,771,462 $3,804,787 $7,369,487 (a) $14,361,801 (a)
$377,180 $788,031 $51,521 $8,719 $2,359
19,289,367 16,856,959 20,769,546 30,185,064 31,742,184
3,864,322 5,135,257 8,447,495 2,185,825 931,871
4,124,029 5,283,559 6,511,850 4,959,533 712,810
$27,654,898 $28,063,806 $35,780,412 $37,339,141 $33,389,224
141
CITY OF SAN RAFAEL
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2006 2007 2008 2009 2010
Revenues
Taxes and special assessments $44,901,544 $52,472,246 $56,129,195 $51,019,143 $47,678,541
Licenses and permits 1,175,030 1,157,981 1,489,748 1,472,913 1,518,819
Fines and forfeitures 622,494 515,528 797,081 660,338 787,411
Use of money and properties 1,316,558 1,744,688 1,584,508 847,120 433,874
Intergovernmental 11,705,917 12,760,496 12,081,968 17,518,670 13,001,703
Charges for services 13,104,572 13,504,621 15,607,460 16,384,265 15,787,325
Other revenue 1,475,078 1,468,743 815,704 759,320 716,760
Total Revenues 74,301,193 83,624,303 88,505,664 88,661,769 79,924,433
Expenditures
Current:
General government 6,200,338 8,188,999 8,288,170 8,059,526 7,997,067
Public safety 33,321,967 36,264,321 40,299,862 41,209,972 39,574,091
Public works and parks 10,622,585 11,972,537 13,641,665 12,926,646 10,731,669
Community development 4,184,084 4,319,042 5,786,661 5,572,079 4,398,594
Culture and recreation 8,409,833 9,005,370 9,820,365 10,233,361 9,605,684
Capital outlay 60,411 6,716,630 6,243,517 5,048,044 1,890,559
Capital improvement / special projects 13,200,872 1,189,613 5,124,091 6,606,857 3,436,608
Debt service:
Capitalized lease obligation 130,315
Principal 2,525,000 2,287,255 2,504,370 2,714,358 2,804,258
Interest and fiscal charges 1,878,265 1,829,091 1,776,354 1,683,240 1,979,372
Total Expenditures 80,533,670 81,772,858 93,485,055 94,054,083 82,417,902
Excess (deficiency) of revenues over
(under) expenditures (6,232,477) 1,851,445 (4,979,391) (5,392,314) (2,493,469)
Other Financing Sources (Uses)
Issuance of debt 14,660,000
Payment to refunded bonds (14,315,000)
Bond premiums 1,038,185
Capital lease for equipment acquisition 318,000
Proceeds from PG&E loans
Proceeds from sale of capital asset 221,791
Transfers in 6,925,107 6,812,260 6,353,216 8,972,495 7,494,560
Transfers (out)(6,672,916) (6,958,046) (6,329,136) (6,614,806) (6,411,150)
Total other financing sources (uses)252,191 172,214 24,080 2,357,689 2,688,386
Extraordinary Item
Transfer to Successor Agency
Net Change in fund balances ($5,980,286) $2,023,659 ($4,955,311) ($3,034,625)$194,917
Debt service as a percentage of
noncapital expenditures 6.7%5.6%5.2%5.3%6.2%
Fiscal Year Ended June 30,
142
2011 2012 2013 2014 2015
$51,448,130 $51,395,116 $51,549,306 $56,686,142 $61,804,228
1,416,772 1,648,890 1,929,387 1,934,755 2,456,820
862,820 801,758 734,005 669,553 556,076
380,720 315,561 325,043 363,089 444,757
11,864,127 10,537,396 11,869,889 11,953,308 13,233,503
15,888,750 19,649,433 23,575,374 19,949,333 15,346,794
1,026,845 870,957 4,092,411 2,045,407 1,777,003
82,888,164 85,219,111 94,075,415 93,601,587 95,619,181
6,863,142 8,783,873 10,529,480 8,678,833 10,203,687
40,967,352 39,311,551 41,377,062 41,900,762 43,954,515
10,666,176 11,518,822 12,002,448 13,697,957 12,758,643
4,527,351 3,755,504 2,961,275 3,296,375 3,416,859
10,067,822 10,345,673 10,591,057 11,106,367 11,616,777
1,745,483 1,312,383 4,009,454 2,154,900 4,498,924
6,240,861 3,604,171 5,284,720 7,168,776 2,186,986
2,530,338 2,518,320 208,642 75,172
1,448,910 735,221 283,805 327,350 284,288
85,057,435 81,885,518 87,039,301 88,539,962 88,995,851
(2,169,271) 3,333,593 7,036,114 5,061,625 6,623,330
568,481
5,806,834 4,539,646 8,425,474 3,655,302 4,348,149
(4,657,326) (4,864,293) (6,711,657) (3,053,865) (3,051,499)
1,149,508 (324,647) 1,713,817 1,169,918 1,296,650
(2,352,584)
($1,019,763) $3,008,946 $6,397,347 $6,231,543 $7,919,980
5.2%4.2%0.4%0.7%0.4%
143
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)
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%
2015 7,991,224,952 2,120,065,908 249,864,918 115,675,852 10,476,831,630 417,217,272 10,894,048,902 10,894,048,902 0.11657%
(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
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Mi
l
l
i
o
n
s
Unsecured Property Secured Property
144
Fiscal School Misc. Special
Year City County (1)Districts Districts Total
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
2015 0.154 0.295 0.7651 0.0461 1.2599
Notes:
(1) Like other cities, San Rafael includes several property tax rate areas with different rates. A mean average is indicated.
Source: Marin County Assessors Office 2005/06 - 2014/15 Tax Rate Tables
CITY OF SAN RAFAEL
PROPERTY TAX RATES
ALL OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
145
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 $136,547,395 1.25% $82,427,151 0.99%
California Corporate Center AC 113,704,290 1.04%
Sutter Health 50,853,957 0.47%
Regency Center II Associates LP 43,760,844 0.40% 38,494,662 0.46%
Northbay Properties 11 43,428,710 0.40% 31,882,488 0.38%
Bay Apartment Communities Inc.41,597,687 0.38% 32,579,948 0.39%
Barbara Fasken 1995 Trust Etal 41,017,922 0.38%
Marin Sanitary Service 39,428,530 0.36% 30,374,668 0.37%
North Associates LLC 37,581,141 0.34%
MPB Associates LLC 36,320,878 0.33%
AMG Realty Partners LP 68,689,210 0.83%
San Rafael Corporate Center LLC 46,989,710 0.57%
Lucas Digital 34,968,499 0.42%
Rafael Town Center Investors LLC 30,662,293 0.37%
BIT Holdings Forty Five Inc.30,030,209 0.36%
Subtotal $584,241,354 5.36% $427,098,838 5.14%
Total Net Assessed Valuation:
Fiscal Year 2014-2015 $10,894,048,902
Fiscal Year 2005-2006 $8,312,743,278
2014-2015 2005-2006
146
Delinquent taxes
Fiscal as a Percent of
Year Rate Levies Allocations Collections Apportionments Delinquencies Allocations
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%
2015 1.00 (2)22,376,457 (2)22,376,457 (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 Status Reports
CITY OF SAN RAFAEL
PROPERTY TAX LEVIES AND COLLECTIONS (1)
LAST TEN FISCAL YEARS
$6
$9
$12
$16
$19
$22
$25
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Mi
l
l
i
o
n
s
Allocations
Apportionments
147
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
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 0 169,000 363,328 135,330 - 36,023,646
2011 33,298,499 0 169,000 124,222 69,098 $4,490,000 38,150,819
2012 0 0 169,000 0 0 4,490,000 4,659,000
2013 0 0 169,000 0 0 4,490,000 4,659,000
2014 0 0 528,839 0 0 4,490,000 5,018,839
2015 0 0 453,667 0 0 4,490,000 4,943,667
Parking Total Percentage
Fiscal Services Note Primary of Personal Per
Year Bonds Payable Total Government Income (a)Capita (a)
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 6,186,403 $61,836 6,248,239 11,267,078 0.43% 192.38
2015 5,942,128 55,020 5,997,148 10,940,815 n/a 184.77
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
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Mi
l
l
i
o
n
s
Total Governmental Total Business
148
CITY OF SAN RAFAEL
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 2015
2012-13 Assessed Valuation:$10,894,048,902
Redevelopment Incremental Valuation:2,360,528,567
Adjusted Assessed Valuation:$8,533,520,335
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2015 % Applicable (1) Debt 6/30/15
Marin Community College District $218,635,000 17.540% $38,348,579
San Rafael High School District 42,595,315 78.319% 33,360,225
Tamalpais Union High School District 132,610,000 0.080% 106,088
Dixie School District 20,335,810 66.291% 13,480,812
Ross School District 19,799,941 1.516% 300,167
Ross Valley School District 40,269,071 0.014%5,638
San Rafael School District 50,234,835 83.604% 42,073,575
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $127,675,084
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Marin County Certificates of Participation $68,906,897 17.509% $12,064,909
Marin County Pension Obligations 103,195,000 17.509% 18,068,413
Marin County Transit District General Fund Obligations 150,627 17.509%26,373
Marin Municipal Water District General Fund Obligations 122,544 22.432%27,489
Marin Community College District Certification of Participation 2,600,834 17.540% 456,186
San Rafael School District Certificates of Participation 3,650,000 83.604% 3,051,546
City of San Rafael General Fund Obligations 8,609,376 100.000% 8,609,376 (2)
City of San Rafael Pension Obligations 4,490,000 100.000% 4,490,000
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $46,794,292
Less: City of San Rafael lease revenue bonds supported by parking revenues 5,997,148
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 40,797,144
OVERLAPPING TAX INCREMENT DEBT (Successor Agency 20,154,004 100.000% 20,154,004
TOTAL GROSS DIRECT DEBT $13,099,376
TOTAL NET DIRECT DEBT $7,102,228
TOTAL OVERLAPPING DEBT $181,524,004
GROSS COMBINED TOTAL DEBT $194,623,380 (3)
NET COMBINED TOTAL DEBT $188,626,232
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.
(2) Include city's share of Marin Emergency Radio Authority refunding revenue bonds and $508,687 PG&E notes.
Ratios to 2014-15 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.17%
Total Gross Direct Debt ($13,009,376) 0.12%
Total Net Direct Debt ($7,102,228) 0.07%
Gross Combined Total Debt 1.79%
Net Combined Total Debt 1.73%
Total Overlapping Tax Increment Debt 0.85%
Source: MuniServices
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-
bonded capital lease obligations.
Ratios to Redevelopment Incremental Valuation ($2,360,528,567):
149
ASSESSED VALUATION:$10,894,048,902
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) 408,526,834
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:4,943,667
LEGAL BONDED DEBT MARGIN $403,583,167
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
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%
2015 408,526,834 4,943,667 403,583,167 1.22%
NOTE: (a)
Source: City of San Rafael's Finance Department
CITY OF SAN RAFAEL
COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2015
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
150
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
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 3,716,552 773,217 245,000 210,063 455,063 1.70
2015 5,180,554 4,031,161 1,149,393 245,000 205,163 450,163 2.55
Notes: On March 26, 2003, the City Financing Authority issued lease revenue bonds for the design and construction of a new parking facilit
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: San Rafael Finance Department Revenue and Expenditure Status Reports
0.00
1.00
2.00
3.00
4.00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Coverage
151
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
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 2,621,228 44,531 4.50% 255,846 22.89%
2015 59,214 n/a n/a n/a 258,972 22.87%
Source: (1) State of California, Department of Finance - Demographic Research Unit. The data represents the City's population as of
January 1, of each year.
(2) 2006-2009 Income Data--Demographic Estimates are based on the last available census. Projections are developed
by incorporating all of the prior census data released to date.
2010 and later- Income - US Census Bureau, most recent American Community Survey
(3) Unemployment Data: California Employment Development Department
0.00%
2.50%
5.00%
7.50%
10.00%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Unemployment Rate (%)
22.00%
22.50%
23.00%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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 (2)
152
Employer # (A) # (A) # (A) # (A) # (A) # (A) # (A)
Kaiser Permanente 1,575 4.82% 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.763 2.33% 1,095 3.52% 1,000 3.27% 878 3.25% 928 3.44% 1,028 3.83% 1,200 4.32%
Golden Gate Bridge Highway & Transp. Dist.------------8282.98%
San Rafael Elementary/High Schools Dist(s) 650 1.99% 600 1.93% 600 1.96% 600 2.22% 600 2.22% 600 2.23% 575 2.07%
City of San Rafael 581 1.78% 666 2.14% 643 2.10% 521 1.93% 592 2.19% 630 2.34% 633 2.28%
MHN -350 1.14% 350 1.30% 350 1.30% 350 1.30% - -
Dominican University of California 422 1.29% 354 1.14% 347 1.13% 346 1.28% 336 1.24% 370 1.38% 508 1.83%
Bradley Real Estate 418 1.28% 385 1.24% 369 1.21% 376 1.39% 350 1.30% - - - -
Macy's 380 1.16% 380 1.22% 380 1.24% 380 1.41% 450 1.67% 445 1.66% - -
Wells Fargo Bank 306 0.94% 308 0.99% 334 1.09% - - - - - - - -
Fair Issac Corp 300 0.92% 300 0.96% - - - - - - - - 350 1.26%
Community Action Marin 225 0.69% 300 0.96% 300 0.98% - - - - - - - -
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%- -
YMCA -- -- -- -- -- --3481.25%
San Rafael City High School District -- -- -- -- -- --2500.90%
Ghilotti Bros. - - - - - - - - - - - - 240 0.86%
Totals 5,620 17.19% 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
Note: Total employment in the City of San Rafael as of June 2015 was 32,700
*- The number of total employment for the City is available for the last seven fiscal years only.
Source: State of California, Employment Development Department, Labor Market Information Division
North Bay Business Journal, Annual Book of Lists
2010*
LAST SEVEN CALENDAR YEARS
2014* 2013*2015*
CITY OF SAN RAFAEL
PRINCIPAL EMPLOYERS
FISCAL YEAR 2014-2015
2009*2012* 2011*
153
CITY OF SAN RAFAEL
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Function
General Government 53.71 59.38 59.88 58.88 56.88 54.35 55.23 53.23 55.11 58.11
Public Safety 188.86 189.00 186.00 183.00 165.00 166.00 162.00 163.00 168.00 171.75
Public Works and Parks 74.80 76.80 78.80 78.80 60.80 62.80 62.00 60.00 61.00 62.00
Community Development 26.43 31.00 34.50 34.50 26.75 26.75 18.25 18.25 17.80 17.80
Culture and Recreation 77.49 80.22 85.90 85.90 83.49 89.82 81.56 80.76 83.66 84.23
Total 421.29 436.40 445.08 441.08 392.92 399.72 379.04 375.24 385.57 393.89
Source: City of San Rafael's Finance Department
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
FT
E
'
s
General Government Public Safety
Public Works and Parks Community Development
Culture and Recreation
155
2006 2007 2008 2009
Function/Program
Public safety:
Fire:
Inspection permit issued N/A 143 217 196
Police:
Police calls for service N/A 43,480 43,488 42,227
Law violations:
Part I crimes N/A 2,557 2,314 2,352
Physical arrests (adult and juvenile)N/A 3,809 4,182 4,487
Traffic violations N/A 5,197 9,241 5,777
Parking violations 33,610 36,228 42,481 44,913
Public works
Street resurfacing (miles) (Eng Div)1.08 N/A 4.95 2.77
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 8,000 8,000 8,000 8,000
Items in collection (thousands)
Library:
Items in collection (thousands)123.12 124.46 N/A 124.40
Total items borrowed (thousands)333.15 359.41 N/A N/A
Note: N/A denotes information not available.
CITY OF SAN RAFAEL
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
156
2010 2011 2012 2013 2014 2015
307 294 282 307 261 282
42,227 39,512 39,537 42,707 51,261 55,805
2,352 2,180 2,101 2,523 2,289 2,533
4,487 3,102 2,981 2,951 3,227 3,450
5,777 8,190 4,048 3,448 4,498 4,168
42,806 34,590 32,492 30,881 38,814 36,398
2.77 7.40 N/A 2.70 9.00 6.40
N/A N/A N/A N/A N/A N/A
N/A 10,809 178.9 7,500 10,700 11,000
9,524 9,000 12,075 7,082 9,857 10,023
151.88 158.30 159.18 125.92 168.62 127.76
371.12 435.66 366.46 392.23 478.96 443.64
157
2006 2007 2008 2009
Function/Program
Public safety:
Fire stations 6666
Police stations 1111
Police Fleet
Public works
Miles of streets 173 173 173 173
Street lights 4,435 4,435 4,435 4,435
Parking District lights
Traffic Signals 89 89 89 89
Culture and recreation:
Community services:
City parks 19 19 20 20
City parks acreage 41414242
Playgrounds 13 13 14 14
City trails 15 20 20 20
Community gardens 1111
Community centers 4 4 4 4
Senior centers 0000
Sports centers 0000
Performing arts centers 0000
Swimming pools 1111
Tennis courts 10 10 10 10
Basketball Courts 5555
Baseball/softball diamonds 5555
Soccer/football fields 2222
Library:
City Libraries 1112
Wastewater:
Miles of sanitary sewers 179 179 179 179
(1) Source: City of San Rafael's Finance Department
CITY OF SAN RAFAEL
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
158
2010 2011 2012 2013 2014 2015
666666
111111
173 173 173 173 173 173
4,435 4,435 4,435 4,435 4,435 4,435
89 89 89 89 89 89
20 20 20 20 20 20
42 42 42 42 42 42
14 14 14 14 14 14
20 20 20 20 20 20
111111
444444
000000
000000
000000
111111
10 10 10 10 10 10
555555
555555
222222
222222
179 179 179 179 145 145
159