HomeMy WebLinkAboutFY2015-16 CAFR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDING JUNE 30, 2016
Sunset at Loch Lomond Marina
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2016
City of San Rafael, California
1400 Fifth Avenue
San Rafael, California 94901
Prepared by the Finance Department of the City of San Rafael
San Rafael Theater
INTRODUCTORY
SECTION
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2016
Table of Contents
INTRODUCTORY SECTION
TABLE OF CONTENTS
Letter of Transmittal .................................................................................................................................... v
Mission Statement and Vision Statement ................................................................................................... xi
City Council and Staff ............................................................................................................................... xii
Location Map ............................................................................................................................................ xiii
Organizational Chart ................................................................................................................................. xiv
Certificate of Achievement for Excellence in Financial Reporting ........................................................... xv
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
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CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2016
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:
Post-Employment Healthcare Benefits Schedule of Funding Progress ........................................ 93
Schedule of Contributions – Last 10 Years .................................................................................. 94
Schedule of the City’s Proportionate Share of the Net Pension Liability ..................................... 96
Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual -
Budgetary Basis
General Fund ............................................................................................................................. 98
Traffic and Housing Mitigation Special Revenue Fund ............................................................ 99
Gas Tax Special Revenue Fund ............................................................................................... 100
Supplementary Information:
Non-major Governmental Funds:
Combining Balance Sheets ......................................................................................................... 106
Combining Statements of Revenues, Expenditures, and Changes
in Fund Balance ................................................................................................................... 112
Budgeted Non-major Governmental Funds:
Combining Schedules of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual ...................................................................... 118
Internal Service Funds:
Combining Statements of Net Position ....................................................................................... 128
Combining Statements of Revenues, Expenses and Changes in Fund Net Position ................... 130
Combining Statements of Cash Flows ........................................................................................ 132
Agency Funds:
Combining Statements of Changes in Assets and Liabilities ...................................................... 136
ii
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2016
Table of Contents
STATISTICAL SECTION
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ............................................................................. 140
Changes in Net Position – Last Ten Fiscal Years .................................................................................... 142
Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................................................ 146
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .......................................... 148
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ............................ 150
Property Tax Rates - All Overlapping Governments– Last Ten Fiscal Years ........................................ 151
Principal Property Tax Payers – Current Year and Nine Years Ago ...................................................... 152
Property Tax Levies and Collections – Last Ten Fiscal Years ............................................................... 153
Debt Capacity:
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ................................................................. 154
Computation of Direct and Overlapping Debt ........................................................................................ 155
Computation of Legal Bonded Debt Margin .......................................................................................... 156
Revenue Bond Coverage Parking Facility – Last Ten Fiscal Years ....................................................... 157
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years ............................................................ 158
Principal Employers – Last Eight Calendar Years ................................................................................. 159
Operating Information:
Full-Time Equivalent City Government Employees by Function
– Last Ten Fiscal Years ....................................................................................................................... 160
Operating Indicators by Function/Program – Last Ten Fiscal Years ...................................................... 162
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .................................................. 164
iii
October 17, 2016
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, 2016, 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, 2016.
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.
CITY OF SAN RAFAEL : 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 j CITYOFSANRAFA EL.ORG
Gary 0. Phillips, Mayor • Kate Colin, Vice Mayor • Maribeth Bushey, Councilmember • John Gamblin, Councilmember • Andrew Cuyugan McCullough, Council member v
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, fmancial, 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 colUlty, 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, 2016 was
60,582, an increase of 0.1% from the January 1, 2015 population of 60,507 (revised from
59,214).
Downtown San Rafael is the location of many community events, including the 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 ColUlty'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 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 ColUlcil action
on January 3, 2012, and now conducts its economic development activities with funding
from its General Fund.
CITY OF SAN RAFAEL : 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 ! CITYOFSANRAFAEL.ORG
Gary 0. Phillips, Mayor • Kate Colin, Vice Mayor • Maribeth Bushey, Councilmember • John Gamblin, Councilmember • Andrew Cuyugan McCullough, Councilmember vi
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 fmancial 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.
Fiscal year 2015-2016 marks the second year of implementation of Governmental
Accounting Standards Board Statement No. 68 (GASB 68), Accounting and Financial
Reportingfor 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 net pension
liability reported as of June 30,2016, is based on the latest available GASB 67/68 report
prepared by the Marin County Employees' Retirement Association (MCERA), which was
prepared as of June 30, 2015. The next report is anticipated to be completed within the next
60 days. The City expects the measurement of its net pension obligation to increase from
the $142.3 million reported in this year's financial reports. The primary factor contributing
to this increase is the annual investment return for fiscal year 2015-2016 which, at 1.68%,
fell significantly short of the assumed 7.25% rate. More detailed and specific information
will be available once MCERA releases its report.
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 fmancial institutions. The City's varied
economic base is reflected in its property tax base, which is 71% residential, 19%
commercial; 4% institutional, 6% unsecured and others. The top 50 sales tax producers
provide 59% of overall sales tax revenues.
CITY OF SAN RAFAEL j 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 J CITYOFSANRAFAEL.ORG
Gary 0. Phillips. Mayor • Kate Colin, Vice Mayor • Maribeth Bushey, Councilmember • John Gamblin, Councilmember • Andrew Cuyugan McCullough, Councilmember vii
Fiscal year 2015-2016, marked the second full year of the Measure E Transaction and 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 was approximately $11.5 million in the
year ended June 30, 2016, with one-third of the funds allocated to the San Rafael Essential
Facilities project, which includes construction and improvements to several public safety
facilities. Approximately $6.3 million has been accumulated for this project, for which
design work is well underway and construction expected to begin in the upcoming fiscal
year. Total Measure E revenues account for 16% of General Fund Revenues. Regular
sales tax revenues, which have shown a significant recovery over the past few years,
account for 30% of General Fund revenues; while property-related taxes, which have also
recovered well, account for 23% of General Fund revenues.
Demographic Data
The following is a sample of demographic and economic attributes that make San Rafael an
exceptional place to live and work.
� 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, Novato Community Hospital 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 2016 for San Rafael were: 1. Autos and
Transportation (33.1 %), 2. General Consumer Goods (20%), and 3. Building and
Construction (18.8%).
� 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.
� Establishing and maintaining affordable residential housing for sale and lease continues
to be a challenge both in San Rafael and throughout Marin County. Rents for one
bedroom apartments range from $2,000 to $2,440, while two bedroom apartments go
for $2,625 to $3,505. The median home value in San Rafael is $880,300.
Recent growth and economic vibrancy:
• BioMarin Pharmaceutical received approvals for a new office building (72,000 sq.
ft.) along with the second phase of the parking garage (an additional 300 parking
spaces to the recently completed 600 space garage).
CITY OF SAN RAFAEL : 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG
Gary 0. Phillips, Mayor • Kate Colin, Vice Mayor • Maribeth Bushey, Councilmember • John Gamblin, Councilmember • Andrew Cuyugan McCullough, Councilmember
viii
• BioMarin Pharmaceutical purchased a 3 acre site across from its Corporate Center
site and intends to apply for 200,000 square feet of additional office space. Upon
approval and construction of the new office buildings, the BioMarin
Pharmaceutical corporate headquarters facility will include a total of 673,000
square feet at its campus.
• The former Y ardbirds Garden Center was re-tenanted with an Ace Hardware store.
This 8,000 square feet property was one of the last large vacancies along the Fourth
Street commercial corridor and it signifies the return to near full occupancy for
retail stores iri the Downtown core for the first time since the recession.
• Construction is nearing completion for various projects related to the SMART
(Sonoma Marin Area Rapid Transit) train. Train tracks, platforms and related
infrastructure are all completed for the Downtown and Civic Center Stations. Train
service is scheduled to start in late 2016.
• Construction is nearing completion for the first phase of 'The Village at Loch
Lomond'. This project features 80 housing units; 22,000 square feet of commercial
space; new recreation areas along the shoreline, and improved marina facilities.
• A 40 unit apartment building at 815 B Street approved.
• Whistlestop plans to build a 50 unit senior apartment building along with a senior
services center next to the proposed new 200,000 square feet BioMarin
Pharmaceutical office building at 999 Third Street.
• Vacancy rates are reaching all-time lows for retail and office space in the
Downtown area and for industrial space throughout the city. Asking rents have
increased throughout all market types.
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.
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.
CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 , CITYOFSANRAFAEL.ORG
Gary 0. Phillips, Mayor • Kate Colin, Vice Mayor • Maribeth Bushey, Councilmember • John Gamblin, Councilmember • Andrew Cuyugan McCullough, Councilmember ix
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; and Francis Law, Senior 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 fifth
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
CITY OF SAN RAFAEL : 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 ] CITYOFSANRAFAEL.ORG
Gary 0. Phillips. Mayor • Kate Colin, Vice Mayor • Maribeth Bushey, Councilmember • John Gamblin, Councilmember • Andrew Cuyugan McCullough, Councilmember x
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
[L
City Council and Staff
City Council
Gary O. Phillips, Mayor
Kate Colin, Vice Mayor
Andrew McCullough, Councilmember
Maribeth Bushey, Councilmember
John Gamblin, Councilmember
Elected Officials
Rob Epstein, City Attorney
Esther Beirne, City Clerk
Executive Team
Jim Schutz, City Manager
Cristine Alilovich, Assistant City Manager
Diana Bishop, Chief of Police
Stacey Peterson, Human Resources Director
Chris Gray, Fire Chief
Sarah Houghton, Library Director
Paul Jensen, Community Development Director
Bill Guerin, Public Works Director
Carlene McCart, Community Services Director
Mark Moses, Finance Director
Doris Toy, District Manager/Engineer-SRSD
CAFR Team
Mark Moses, Finance Director
Van Bach, Accounting Manager
Francis Law, Senior Accountant
[LL
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San Rafael Gerstle Park Neighborhood
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 accompanying 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, 2016, 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 18%, 30%,
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, 2016, 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.
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.
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.
2
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 12,
2016, 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
October 12, 2016
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
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, 2016. Please read it in conjunction with the basic financial statements
and the accompanying notes to those basic financial statements.
FINANCIAL HIGHLIGHTS
Government-wide:
Net Position – The assets of the City exceeded its liabilities as of June 30, 2016 by $131.7 million.
Activities – During the fiscal year the City’s total expenses of $115.7 exceeded revenues of $105.7 million
for governmental and business-type activities million by $10.0 million.
Changes in Net Position – The City’s total net position decreased by $10.0 million in fiscal year
2015-2016. Net position of governmental activities decreased by $10.0 million, while net position of the
business-type activities remained the same.
Fund Level:
Governmental Funds – As of the close of fiscal year 2015-2016, the City’s governmental funds reported
combined ending fund balances of $50.2 million, an increase of $2.4 million from the fund balance of the
prior year. Of this total amount, $0.5 million is nonspendable, $27.5 million is restricted, $3.8 million is
committed, $16.6 million is assigned, and $1.8 million is unassigned.
Governmental fund revenues were $100.6 million, an increase of $5.0 million from the previous fiscal year.
In addition to moderate economic growth, this increase was enhanced by the termination of the State’s
triple flip sales tax distribution program, which generated a one-time catch up of approximately $1.2
million for which distribution had been delayed.
Governmental fund expenditures increased by $9.5 million to $98.5 million, from $89.0 million in the prior
year, due primarily to increased capital expenditures for street maintenance, public safety infrastructure and
other capital improvement program expenditures.
Enterprise fund operating revenue remained level relative to the prior year, at $5.2 million. Enterprise
operating expenditures totaled $4.6 million, an increase of $0.5 million over the previous year. The increase
was attributable primarily to the allocation of pension expense to the parking fund.
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
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
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.
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
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 the major funds were established in the
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 106 through 125 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 twenty-nine 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-six 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 106 through 125 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.
The basic proprietary fund financial statements can be found on pages 36 through 38 of this report.
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
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 89 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 93 through 100 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
Net position is one indicator of the City’s financial position. During this fiscal year, the net position of the City
was $131.7 million from Governmental Activities and $9.8 million from Business-type Activities, for a total of
$141.5 million. This represents a decrease of $10.0 million from the prior year net position.
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2016 and 2015:
Increase Increase
2016 2015 (Decrease) 2016 2015 (Decrease)
Current and other assets $86,543 $80,056 $6,487 $3,050 $2,679 $371
Capital assets 194,086 191,074 3,012 16,699 16,742 (43)
Total assets 280,629 271,130 9,499 19,749 19,421 328
Deferred outflows related to pension (Note 9) 57,287 21,622 35,665 1,939 734 1,205
Current and other liabilities 11,843 10,664 1,179 500 509 (9)
Noncurrent liabilities 161,643 94,916 66,727 10,259 8,294 1,965
Total liabilities 173,486 105,580 67,906 10,759 8,803 1,956
Deferred inflows related to pension (Note 9) 32,710 45,498 (12,788) 1,107 1,546 (439)
Net Position:
Net investment in capital assets 193,707 190,621 3,086 10,958 10,745 213
Restricted 31,287 33,389 (2,102) 0 0 0
Unrestricted (93,274) (82,336) (10,938) (1,136) (939) (197)
Total net position $131,720 $141,674 ($9,954) $9,822 $9,806 $16
Governmental Activities Business-Type Activities
Summary of Net Position
(in thousands)
Governmental assets increased by $9.5 million, primarily due to increases in cash and short-term receivables
associated with positive operating results and set aside for specific purposes (e.g., public safety facility construction
and improvements, other capital improvement projects, and risk management reserves). Current and other liabilities
increased by approximately $1.2 million, primarily due to an increase in unearned revenue. Noncurrent
governmental liabilities increased by $66.7 million, mostly attributable to the increase in net pension liability (Note
9).
The net position in business-type activities reflects the activity of the Parking Services program and increased by
$16 thousand from the previous year. The $2.0 million increase in noncurrent liabilities was driven by the increase
in net pension liability, but was substantially offset by a $1.2 million increase in deferred outflows and a
$0.4 million decrease in deferred inflows.
At June 30, 2016, the largest portion of net position in the amount of $204.7 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. 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.
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
A portion of the City's net position of $31.3 million is subject to external restrictions, and their use is determined by
those restrictions whether legal or by covenant. The remaining portion, unrestricted negative $94.4 million,
represents the extent to which the net investment in capital assets and restricted net position exceed total assets.
Invested in Capital Assets (net)$204,665
Restricted 31,287
Unrestricted (94,410)
Total Net Position $141,542
Net Position as of 6/30/2016
Total = $ 141,542 (in thousands)
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
Statement of Activities - Governmental
The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ended
June 30, 2016 and 2015:
Summary of Changes in Net Position
(in thousands)
Increase
2016 2015 (Decrease)
REVENUES
Program revenues:
Charges for services $21,310 $19,758 $1,552
Operating grants and contributions 4,678 4,186 492
Capital grants and contributions 1,471 1,308 163
Total program revenues 27,459 25,252 2,207
General revenues:
Property taxes 19,999 19,039 960
Sales taxes 34,348 32,270 2,078
Paramedic tax 4,226 3,820 406
Transient occupancy tax 3,063 2,662 401
Franchise tax 3,418 3,272 146
Business license tax 2,825 2,670 155
Other taxes 3,465 3,296 169
Investment earnings 300 216 84
Miscellaneous 1,387 2,255 (868)
Total general revenues 73,031 69,500 3,531
TOTAL REVENUES 100,490 94,752 5,738
EXPENSES
General government 12,953 9,100 3,853
Public safety 55,400 39,969 15,431
Public works and parks 22,929 16,893 6,036
Community/economic development 4,307 3,128 1,179
Culture and recreation 15,027 11,198 3,829
Interest on long-term debt 277 284 (7)
TOTAL EXPENSES 110,893 80,572 30,321
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES (10,403) 14,180 (24,583)
OTHER FINANCING SOURCES (USES)
Transfers in 449 433 16
Total Other Financing Sources (Uses) 449 433 16
Special Item * - 4,462 (4,462)
Net Change in Net Position (9,954) 19,075 (29,029)
Beginning Net Position, July 1, 2015 141,674 122,599 19,075
Ending Net Position, June 30,2016 $131,720 $141,674 ($9,954)
*-To establish GASB 45 and 68 receivable from San Rafael Sanitation District in fiscal
year 2015 (first year of implementation).
Governmental Activities
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
The City’s governmental activities net position decreased by $10.0 million during fiscal year 2015-2016. Charges
for services were approximately $1.6 million higher than those of the previous year. This increase was driven by
the reporting of San Rafael Sanitation District personnel reimbursement-related charges in the newly established
internal service fund.
Meanwhile, the City recorded a $2.1 million year-over-year increase in Sales taxes, $1.2 million of which was due
to a one-time catch up of sales tax revenues that were delayed during the 10-year State modification to sales tax
distribution (Triple Flip) which terminated on December 31, 2015. Property taxes and transient occupancy taxes
registered year-over year increases of $1.0 million and $0.4 million, respectively. Miscellaneous revenues were
down $0.9 million, due to by approximately $0.8 million in reimbursements of State-mandated costs recorded in
the previous year.
The fiscal year 2015-2016 governmental expenses were $30.3 million more than those of the previous fiscal year.
Approximately $25 million of this increase is attributable to the allocation of pension expense under GASB 68. The
remaining year-over-year increase is attributable to other operating costs, which increased by approximately $5
million, which is consistent with the rate of revenue growth supporting these expenses.
The following graph shows governmental revenues by source:
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
Total expenses for governmental activities were $110.6 million (excluding interest on long-term debt of $277
thousand). Program revenues offset total expenditures as follows:
Those who directly benefited from programs contributed $21.3 million in charges for services.
A total of $6.1 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, other general revenues and fund
balance were $83.2 million.
Functional expenses for the year ended June 30, 2016 were as follows:
Function Amount Percent of Total
General government $12,953 11.6%
Public safety 55,400 50.0%
Public works and parks 22,929 20.6%
Community development 4,307 3.9%
Culture and recreation 15,027 13.6%
Interest on debt 277 0.3%
Total expenses $110,893 100%
Expenses by Function
(in thousands)
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
Statement of Activities – Business-type
Increase
2016 2015 (Decrease)
Revenues
Program revenues:
Charges for services $5,212 $5,174 $38
Total program revenues 5,212 5,174 38
General revenues:
Miscellaneous 15 7 8
Total general revenues 15 7 8
TOTAL REVENUES 5,227 5,181 46
Expenses
General government 4,763 4,250 513
TOTAL EXPENSES 4,763 4,250 513
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 464 931 (467)
OTHER FINANCING SOURCES (USES)
Transfers out (448) (433) (15)
Total Other Financing sources (uses)
Net Change in Net Position 16 498 (482)
Fund Balance, Beginning as of 7/1/15 9,806 9,308 498
Net Position, Ending as of 6/30/16 $9,822 $9,806 $16
Summary of Changes in Net Position
(in thousands)
Business-Type Activities
For the periods ended June 30,
The net position for business-type activities was increased by $16 thousand in fiscal year 2015-2016 from the prior
fiscal year.
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 $4.8 million and transfers out to general fund and non-major
governmental fund for support totaled $448 thousand during the fiscal year 2015-2016.
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
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, 2016, the City reported a combined ending fund balance of $50.2 million of all its governmental
funds (an increase of $2.4 million from the prior year): $0.5 million is non-spendable, $27.5 million is restricted,
$3.8 million is committed, $16.6 million is assigned and $1.8 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, 2016 was $18.7 million (an increase of
$4.3 million from the prior year balance): $0.5 million is non-spendable, $16.4 million is assigned, and
$1.8 million is unassigned. The assigned portion of the balance includes $6.9 million for emergency and cash flow
needs, which meets the minimum target reserve of ten percent of operating expenditures.
General Fund Budgetary Highlights:
The original adopted General Fund budget projected total revenue of $72.7 million and transfers-in of $1.3 million
for total resources of $74.0 million. This budget appropriated expenditures of $67.1 million and transfers-out of
$2.6 million for total appropriations of $69.7 million. Transfers-out were later increased by $1.8 million to
accommodate the funding of the San Rafael Essential Facilities project from Measure E Transactions and Use Tax
(TUT), based on actual project expenditures.
Actual revenues, at $74.8 million, exceeded the original budgeted revenues by $2.1 million. This positive
performance was driven by tax revenues (primarily property tax and transient occupancy tax) that exceeded budget
projections, coupled with approximately $500K in unanticipated reimbursements for fire strike team activity.
Fiscal year 2015-2016 General Fund revenues exceeded expenditures and net transfers by $4.3 million. Of this
amount, $1.9 million was added to Measure E – Public Safety Facility reserve; $1.0 was assigned to one-time MOU
contractual obligations; $0.4 million was added to the Emergency Cash Flow reserve; $0.4 million was added to the
Infrastructure reserve; $0.3 million was added to the General Plan / Long Range Planning reserve; $0.2 million was
used for prepaid expenses, and $0.1 million was retained in Unassigned General Fund balance.
15
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
Adopted Budget Revised Budget Actual
Revenues $72,686 $74,756 $70,747
Transfers in 1,357 1,111 1,039
Total resources 74,043 75,867 71,786
Expenditures 67,112 $67,198 63,096
Transfers out 2,560 4,341 1,698
Total uses 69,672 71,539 64,794
Net Operating Results $4,371 $4,328 $6,992
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2016 (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
$12.2 million to $10.4 million. Revenues totaled $0.4 million, while $0.7 million was charged against this fund to
support the maintenance of the City-wide traffic model, including the Tamalpais Avenue queue cutter. In addition,
$1.5 million was transferred to the Gas Tax Fund to support the Downtown Rail Readiness project. 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 expenditures exceeded revenues and net transfers by $948 thousand in fiscal year
2015-2016 and the ending fund balance decreased from $7.6 million as of June 30, 2015, to $6.7 million as of June
30, 2016.
Expenditures during fiscal year 2015-2016 totaled $7.1 million. In addition to routine street-related maintenance,
expenditures include $2.3 million for Downtown Rail Readiness, $1.2 million for miscellaneous street resurfacing,
$811K for Del Presidio Blvd–Pt. San Pedro resurfacing, and $638K for H Street drainage improvements.
The largest sources of revenues were $1.3 million in development impact fees, $1.2 million from State gasoline
taxes, $596 thousand in local Measure A funds, and $188 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, 2016, non-major funds had a total fund balance of $14.4 million, a $1.4 million increase
from the previous year. The increase included a $242 thousand increase to the childcare operating and capital
reserves, a $377 thousand increase in emergency medical services reserves. The remaining increase of
approximately $0.8 million is the net of capital accumulation for major projects (e.g., Andersen Drive), less
spending down on other capital projects (e.g., Rossi Pump Station, Terra Linda pool house improvements).
Of the ending total non-major fund balances of $14.4 million: $10.5 million (73%) is legally restricted for specific
purposes by external funding source providers, $3.8 million (26%) is committed for special purposes by the City
Council, and $ 0.1 million (1%) 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, 2016
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 36, the City’s proprietary fund net position was increased by $10.6 thousand
during the fiscal year. The Parking Services Fund is the City’s sole business-type (Enterprise) activity.
The proprietary fund operating revenue was increased by $36 thousand in fiscal year 2015-2016 to $5.212 million.
The Enterprise fund operating expenses were $4.6 million in fiscal year 2015-2016, an increase of $0.5 million
over the prior fiscal year.
The City’s Internal Service Funds are also reported in this Proprietary Fund classification. In fiscal year 2015-2016,
the Internal Services Funds were comprised of: Building Maintenance, Vehicle Replacement, Equipment
Replacement, Employee Benefits, Liability Insurance, Workers’ Compensation, Dental Insurance, Employee
Retirement, and OPEB/Retiree Medical. The following additional three funds have now been reclassified into
Internal Service Funds:
Radio Replacement Fund – In prior years, this fund was part reported under the Capital Projects Funds. Effective
in fiscal year 2015-2016, the City reclassified this fund to an Internal Service Fund. As of June 30, 2016, the Radio
Replacement Fund had a total net position of $383 thousand, all of which was unrestricted.
Telephone Replacement Fund – In prior years, this fund was part reported under the Capital Projects Funds.
Effective in fiscal year 2015-2016, the City reclassified this to an Internal Service Fund. As of June 30, 2016, the
Telephone Replacement Fund had a total net position of $338 thousand, all of which was unrestricted.
Sewer Maintenance – In prior years, this fund was reported under the Special Revenue Funds. Effective in fiscal
year 2015-2016, the City reclassified this fund to an Internal Service Fund to record both the cost of providing
services to the San Rafael Sanitation District and the charges for those services. As of June 30, 2016, the Sewer
Maintenance Fund had a total net position of $0.
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, 2016
amounts to $210.8 million, net of accumulated depreciation of $161.0 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 addition to the City’s
investment in capital assets for the current fiscal year was $8.7 million, offset by accumulated depreciation of
$5.7 million.
Additions to capital assets during fiscal year 2015-2016 included:
Construction in Progress: $7.0 million:
Downtown Rail Readiness - $2.5 million
San Rafael Essential Facilities - $1.8 million
Terra Linda Pool House - $1.0 million
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
Del Presidio Blvd-Pt. San Pedro Resurfacing - $0.8 million
Rossi Pump Station - $0.7 million
Other - $0.2 million
Infrastructure: $1.7 million
Puerto Suello - $1.7 million
The City’s Capital Assets for the fiscal years ending June 30, 2016 and 2015 were as follows:
2016 2015
Governmental Activities
Land $83,261 $83,261
Construction in progress 11,520 4,506
Land improvements 9,020 8,789
Buildings and structures 41,667 41,486
Machinery and equipment 18,477 18,927
Infrastructure 187,213 185,529
Less accumulated depreciation (157,072) (151,423)
Subtotal Governmental Activities 194,086 191,075
Business-type Activities
Land 8,621 8,621
Buildings and structures 10,714 10,714
Machinery and equipment 1,267 1,185
Less accumulated depreciation (3,902)(3,778)
Subtotal Business-type Activities 16,700 16,742
Total Capital Assets $210,786 $207,817
Summary of Capital Assets
(in thousands)
Additional information on the City’s capital assets can be found in Note 5 on pages 62 through 63 of this report.
1
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
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 of the financial statements for additional information. The
City’s long-term obligations for the fiscal years ending June 30, 2016 and 2015 were as follows:
2016 2015
Governmental Activity Debt:
2010 Taxable Pension Obligation Bonds $4,490 $4,490
PG & E City Hall HVAC Retrofit Note Payable 246 279
PG & E Street Light Retrofit Note Payable 133 175
Subtotal Governmental Activity Debt 4,869 4,944
Business-type Debt:
PG & E Parking Lot Lighting Retrofit Note Payable 48 55
2012 Authority Lease Revenue refunding Bonds, as adjusted 5,693 5,942
Subtotal Business-type Debt 5,741 5,997
Total Long-Term Obligations $10,610 $10,941
Summary of Long-Term Debt
(in thousands)
1
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
ECONOMIC CLIMATE AND NEXT YEAR’S BUDGET
Seven years after the official end of the Great Recession, the City’s revenues have firmly established themselves above
the former peak set at the end of the last decade. As the City looks ahead to fiscal year 2016-2017, management is
encouraged by indicators that the local economy will remain vibrant. However, relatively strong growth in the regional
economy continues to be tempered by 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 5.4% unemployment rate remains above
the national average of 4.9%, 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. Although the State’s has been able to slowly build back its reserves
and post budget surpluses, there are concerns that budget shortfalls could return within the next few years. In addition, 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 most of the 58 counties are likely to burden the State for several
years.
Locally, the 3.5% 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 2015. 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
capital 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 four 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 2016-2017 with approximately $6.3 million accumulated from a dedicated portion of its
Measure E Transaction Use Tax (TUT) for public safety facilities construction and improvements. One-third of this
twenty-year San Rafael three-quarter percent 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 as method of coping with
past economic downturns means that, although the City is able to maintain and, in some cases, improve on its level of
services and make come strategic investments for the City’s future, there will still be critical, unfunded capital and
maintenance needs.
The trends for sales tax and transactions and use tax (Measure E), which combined represent the City’s largest tax
revenue generators, suggested continued, but moderate growth. For fiscal year 2016-2017, these taxes are projected to
increase by approximately four percent.
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.
20
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2016
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 one-year contract terminating on
October 31, 2016, the City’s labor units are all operating under contracts that expire on June 30, 2018. Negotiated
compensation increases in effect through June 30, 2018 range between 3.0% and 4.0% 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 an AA- issuer
credit rating with Standard & Poor’s Ratings Services.
The City anticipates spending down most of its funds accumulated for the San Rafael Essential Facilities capital
improvements project. This project, which includes a new public safety administrative building and major safety and
operational improvements to fire stations, is being funded from a dedicated portion of the Measure E TUT. Other General
Fund balances are expected to remain stable for the year.
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 at 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, 2016
Component
Unit
Primary Government San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
ASSETS
Cash and investments available for operations (Note 2) $62,189,193 $2,841,692 $65,030,885 $24,011,268
Restricted cash and investments (Note 2) 979,094 979,094
Receivables:
Accounts 2,519,094 32,280 2,551,374 35,042
Taxes 10,662,825 10,662,825
Grants 1,586,111 129,077 1,715,188
Interest 119,395 119,395
Loans (Note 4) 1,114,106 1,114,106
Long-term receivable from the Successor Agency (Note 15D) 1,286,882 1,286,882
Long-term receivable from San Rafael Sanitation District (Note 4H) 4,859,007 4,859,007
Internal balances (Note 3B) (46,432) 46,432
Prepaid expenses and others 1,274,272 1,274,272 54,382
Capital assets (Note 5):
Nondepreciable 94,780,889 8,620,853 103,401,742 3,319,396
Depreciable, net 99,304,781 8,078,262 107,383,043 40,105,661
Total Assets 280,629,217 19,748,596 300,377,813 67,525,749
DEFERRED OUTFLOWS
Deferred outflows related to pension (Note 9) 57,286,741 1,939,052 59,225,793
Total Deferred Outflows 57,286,741 1,939,052 59,225,793
LIABILITIES
Accounts payable 7,269,698 166,531 7,436,229 1,283,291
Deposits payable 298,894 298,894
Interest payable 48,497 48,497
Developer deposits payable 378,067 378,067
Unearned revenue 1,059,316 1,059,316
Claims payable (Note 13):
Due in one year 2,129,125 2,129,125
Due in more than one year 6,459,441 6,459,441
Compensated absences (Note 1K):
Due in one year 532,265 17,841 550,106
Due in more than one year 3,725,855 124,884 3,850,739
Long-term debt (Note 6):
Due in one year 175,172 266,816 441,988
Due in more than one year 4,693,323 5,474,241 10,167,564
Long-term payable to the City of San Rafael (Note 4H)4,859,007
Net OPEB obligation (Note 11)9,101,000 9,101,000
Net pension liability (Note 9)137,663,468 4,659,659 142,323,127
Total Liabilities 173,485,624 10,758,469 184,244,093 6,142,298
DEFERRED INFLOWS
Deferred inflows related to pension (Note 9)32,709,914 1,107,171 33,817,085
Total Deferred Inflows 32,709,914 1,107,171 33,817,085
NET POSITION (Note 8):
Net investment in capital assets 193,707,175 10,958,058 204,665,233 43,425,057
Restricted for:
Special revenue projects:
Housing and street improvements 17,828,404 17,828,404
Stormwater 961,159 961,159
Emergency medical services 1,564,527 1,564,527
Other 6,488,122 6,488,122
Capital projects 4,277,761 4,277,761
Debt service 166,752 166,752
Total Restricted Net Position 31,286,725 31,286,725
Unrestricted (93,273,480) (1,136,050) (94,409,530) 17,958,394
Total Net Position $131,720,420 $9,822,008
$141,542,428 $61,383,451
See accompanying notes to financial statements
25
CITY OF SAN RAFAEL
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2016
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General government $12,952,983 $526,495 $351,921
Public safety 55,399,798 4,939,658 1,570,635
Public works and parks 22,929,289 5,157,289 2,414,374 $1,470,953
Community development 4,307,269 4,004,178
Culture and recreation 15,026,680 6,683,059 341,408
Interest on long-term debt and fiscal charges 277,263
Total Governmental Activities 110,893,282 21,310,679 4,678,338 1,470,953
Business-type Activities
Parking services 4,762,851 5,212,181 - -
Total Business-type Activities 4,762,851 5,212,181 - -
Total Primary Government $115,656,133 $26,522,860 $4,678,338 $1,470,953
Component Unit
San Rafael Sanitation District $11,654,767 $15,414,530 32,774$ 69,678$
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
Transfers (Note 3A)
Total general revenues and transfers
Change in Net Position
Net Position, beginning of year
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
($12,074,567)($12,074,567)
(48,889,505)(48,889,505)
(13,886,673)(13,886,673)
(303,091)(303,091)
(8,002,213)(8,002,213)
(277,263)(277,263)
(83,433,312)(83,433,312)
- $449,330 449,330
- 449,330 449,330
(83,433,312) 449,330 (82,983,982)
$3,862,215
19,998,567 19,998,567 1,367,172
22,775,945 22,775,945
7,696,000 7,696,000
3,848,000 3,848,000
28,144 28,144
4,226,020 4,226,020
3,063,263 3,063,263
3,418,277 3,418,277
2,824,664 2,824,664
3,465,193 3,465,193
300,091 14,723 314,814 46,225
1,387,315 1,387,315
448,478 (448,478)
73,479,957 (433,755) 73,046,202 1,413,397
(9,953,355) 15,575 (9,937,780) 5,275,612
141,673,775 9,806,433 151,480,208 56,107,839
$131,720,420 $9,822,008 $141,542,428 $61,383,451
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 2015-2016:
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, 2016
Traffic and Other Total
Housing Governmental Governmental
General Mitigation Gas Tax Funds Funds
ASSETS
Cash and investments available for operations (Note 2) $11,761,730 $10,598,096 $7,261,703 $13,298,409 $42,919,938
Restricted cash and investments (Note 2)979,094 979,094
Receivables:
Accounts 1,280,029 73,933 1,075,525 2,429,487
Taxes 10,349,225 97,676 215,924 10,662,825
Grants 35,206 1,019,468 531,437 1,586,111
Interest 118,226 1,169 119,395
Loans (Note 4) 294,529 193,573 615,066 1,103,168
Long-term receivable from the
Successor Agency (Note 15D) 1,286,882 1,286,882
Prepaids 181,787 9,449 191,236
Total Assets $25,307,614 $10,791,669 $8,452,780 $16,726,073 $61,278,136
LIABILITIES
Accounts payable $3,800,802 $294,565 $1,052,995 $1,848,411 $6,996,773
Deposits payable 65,457 57,947 175,490 298,894
Developer deposits payable 376,567 1,500 378,067
Unearned revenue 746,522 312,794 1,059,316
Total Liabilities 4,242,826 352,512 1,799,517 2,338,195 8,733,050
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - SB90 reimbursement receivable 1,088,103 1,088,103
Unavailable revenue - long-term receivable from Successor Agency 1,286,882 1,286,882
Total Deferred Inflows of Resources 2,374,985 2,374,985
Fund Balances (Note 8):
Nonspendable 476,316 9,449 485,765
Restricted $10,439,157 6,653,263 10,459,825 27,552,245
Committed 3,799,421 3,799,421
Assigned 16,440,910 119,183 16,560,093
Unassigned 1,772,577 1,772,577
Total Fund Balances 18,689,803 10,439,157 6,653,263 14,387,878 50,170,101
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $25,307,614 $10,791,669 $8,452,780 $16,726,073 $61,278,136
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, 2016
Total fund balances reported on the governmental funds balance sheet $50,170,101
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.186,828,735
Internal service funds are used by management to charge the cost of management of
9,700,848
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.(4,868,495)
Compensated absences (4,258,120)
Unavailable revenue 2,374,985
Long-term receivables from San Rafael Sanitation District 4,859,007
Deferred outflow related to pension 57,286,741
Net pension liability (137,663,468)
Deferred inflow related to pension (32,709,914)
NNet position of governmental activities $131,720,420
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, 2016
Traffic and Other Total
Housing Governmental Governmental
General Mitigation Gas Tax Funds Funds
REVENUES
Taxes and special assessments $60,217,831 $5,648,387 $65,866,218
Licenses and permits 2,588,411 2,588,411
Fines and forfeitures 435,829 435,829
Use of money and properties 221,832 $58,823 $40,487 139,064 460,206
Intergovernmental 8,078,040 3,465,316 2,141,647 13,685,003
Charges for services 2,772,446 355,394 1,294,882 9,944,022 14,366,744
Other revenue 441,761 187,504 2,579,484 3,208,749
Total Revenues 74,756,150 414,217 4,988,189 20,452,604 100,611,160
EXPENDITURES
Current:
General government 10,501,341 40,000 12,242 795,496 11,349,079
Public safety 39,230,483 7,840,683 47,071,166
Public works and parks 10,468,421 2,748,775 1,173,503 14,390,699
Community development 3,670,108 3,670,108
Culture and recreation 2,963,125 9,084,979 12,048,104
Capital outlay 4,149,920 663,837 4,813,757
Capital improvement / special projects 12,389 657,378 141,834 4,014,975 4,826,576
Debt service:
Principal 75,172 75,172
Interest and fiscal charges 277,263 277,263
Total Expenditures 67,198,302 697,378 7,052,771 23,573,473 98,521,924
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 7,557,848 (283,161) (2,064,582) (3,120,869) 2,089,236
OTHER FINANCING SOURCES (USES)
Transfers in (Note 3A) 1,110,809 1,516,900 4,905,655 7,533,364
Transfers out (Note 3A) (4,340,655) (1,516,900) (400,000) (325,000) (6,582,555)
Total Other Financing Sources (Uses)(3,229,846) (1,516,900) 1,116,900 4,580,655 950,809
Net Change in Fund Balances 4,328,002 (1,800,061) (947,682) 1,459,786 3,040,045
FUND BALANCES, BEGINNING OF YEAR
AS ADJUSTED (NOTE 1N)14,361,801 12,239,218 7,600,945 12,928,092 47,130,056
FUND BALANCES, END OF YEAR $18,689,803 $10,439,157 $6,653,263 $14,387,878 $50,170,101
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, 2016
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $3,040,045
Amounts reported for Governmental Activities in the Statement of Activities are
different because of the following:
Capital Assets Transactions
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of
those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.
Capital outlay and improvement expenditures are therefore added back to fund balance 9,070,964
Non-capitalized capital outlay expenditures were reclassified to various governmental activities (28,749)
Depreciation expense is deducted from fund balance (6,275,340)
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 (33,730)
Unavailable revenue (250,189)
Long-term receivable from San Rafael Sanitary District 396,192
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.(17,396,696)
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.1,448,976
Change in Net Position of Governmental Activities ($9,953,355)
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, 2016
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
ASSETS
Current Assets:
Cash and investments available for operations (Note 2) $2,841,692 $19,269,255
Receivable:
Accounts 32,280 89,607
Loans 10,938
Grants 129,077
Prepaids 1,083,036
Total Current Assets 3,003,049 20,452,836
Noncurrent Assets:
Capital assets (Note 5):
Nondepreciable 8,620,853 61,964
Depreciable, net 8,078,262 7,194,971
Total Noncurrent Assets 16,699,115 7,256,935
Total Assets 19,702,164 27,709,771
DEFERRED OUTFLOWS
Deferred outflows related to pension (Note 9)1,939,052
Total Deferred Outflows 1,939,052
LIABILITIES
Current Liabilities:
Accounts payable 166,531 272,925
Interest payable 48,497
Compensated absences, due in one year (Note 1K)17,841
Claims payable, due in one year (Note 13)2,129,125
Long-term debt, due in one year (Note 6)266,816
Total Current Liabilities 499,685 2,402,050
Noncurrent Liabilities:
Compensated absences (Note 1K) 124,884
Claims payable (Note 13)6,459,441
Long-term debt (Note 6)5,474,241
Net OPEB liability (Note 11)9,101,000
Net Pension Liability (Note 9)4,659,659
Total Noncurrent Liabilities 10,258,784 15,560,441
Total Liabilities 10,758,469 17,962,491
DEFERRED INFLOWS
Deferred inflows related to pension (Note 9)1,107,171
Total Deferred Inflows 1,107,171
NET POSITION (Note 8):
Net investment in capital assets 10,958,058 7,256,935
Unrestricted (1,182,482) 2,490,345
Total Net Position 9,775,576 $9,747,280
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.46,432
Net position business-type activities $9,822,008
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, 2016
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
OPERATING REVENUES
Charges for current services $3,090,169 $15,679,243
Other operating revenues 2,122,012 1,044,249
Total Operating Revenues 5,212,181 16,723,492
OPERATING EXPENSES
Personnel 2,894,496 3,671,075
Insurance premiums and claims 7,109,240
Maintenance and repairs 132,533 336,712
Depreciation (Note 5)251,235 1,081,298
General and administrative 1,289,990 2,699,323
Total Operating Expenses 4,568,254 14,897,648
Operating Income 643,927 1,825,844
NONOPERATING REVENUES (EXPENSES)
Investment income 14,723 89,073
Interest expense (199,612)
Miscellaneous income 41,405
Total Nonoperating Revenues (Expenses)(184,889)130,478
Income Before Transfers 459,038 1,956,322
TRANSFERS IN (Note 3A)60,064
TRANSFERS OUT (Note 3A)(508,542) (502,331)
Change in Net Position 10,560 1,453,991
NET POSITION, BEGINNING OF YEAR, AS ADJUSTED (Note 1N)9,765,016 8,293,289
NET POSITION, END OF YEAR $9,775,576 $9,747,280
* Reconciliation of the Change in Net Position with the Statement of Activities
Change in Net Position $10,560
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.5,015
Change in Net Position of Business-type Activities $15,575
See accompanying notes to financial statements
37
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2016
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $3,090,169 $15,770,231
Cash payments to suppliers for goods and services (1,438,858) (14,769,175)
Cash payments to employees for salaries and benefits (2,305,536)(146,571)
Other operating revenues 2,003,585 1,044,249
Payment to OPEB Trust (63,000)
Cash Flows from Operating Activities 1,349,360 1,835,734
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund payments (508,542) (502,330)
Cash Flows from Noncapital
Financing Activities (508,542) (502,330)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal payments on revenue bonds (256,816)
Interest expenses and fiscal charges (200,762)
Acquisition of capital assets (149,928) (1,325,341)
Proceeds from sale of property 1,742 41,405
Cash Flows from Capital and
Related Financing Activities (605,764)(1,283,936)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 14,723 89,076
Cash Flows from Investing Activities 14,723 89,076
NET INCREASE IN CASH AND CASH EQUIVALENTS 249,777 138,544
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 2,591,915 19,130,711
CASH AND CASH EQUIVALENTS, END OF YEAR $2,841,692 $19,269,255
Reconciliation of operating income to net cash
provided by operating activities:
Operating income $643,927 $1,825,844
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation 251,235 1,081,298
Net change in assets and liabilities:
Accounts receivable (118,427)76,436
Loans receivable 10,938
Prepaids and deposits 2,815 (1,079,422)
Net OPEB obligation (63,000)
Accounts payable (19,150)(1,285,508)
Compensated absence obligations 13,002
(Decrease) increase in due to retirement system 575,958
Claims payable 1,269,148
Net Cash Provided by Operating Activities $1,349,360 $1,835,734
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
JUNE 30, 2016
Successor Agency
to the
Redevelopment
Agency
Private-Purpose Agency
Trust Fund Funds
ASSETS
Cash and investments (Note 2)$98,979
Restricted cash and investments (Note 2)$291,111
Receivable:
Taxes 3,283,763 1,134
Total Assets $3,382,742 $292,245
LIABILITIES
Accounts payable $1,482
Interest payable 58,960 $27,697
Other long-term obligations (Note 15D)1,286,882
Due to bondholders 264,548
Long-term debt (Note 15C):
Due within one year 2,930,000
Due more than one year 18,668,120
Total Liabilities 22,945,444 $292,245
NET POSITION (DEFICIT)
Held in trust for private purpose ($19,562,702)
See accompanying notes to financial statements
40
CITY OF SAN RAFAEL
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2016
Successor Agency
to the
Redevelopment Agency
Private-Purpose
Trust Fund
ADDITIONS
Property taxes $4,147,770
Total Additions 4,147,770
DEDUCTIONS
General government 259,364
Interest expense 3,162,782
Total Deductions 3,422,146
Change in Net Position 725,624
NET POSITION HELD IN TRUST FUND
FOR OTHER PURPOSES
Beginning of year (20,288,326)
End of year ($19,562,702)
See accompanying notes to financial statements
41
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
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, 2016
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, 2016
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
computer, radio, and telephone replacement; employee benefits; liability insurance; workers’
compensation; dental insurance; employee retirement; and retiree medical (OPEB); and sewer
maintenance.
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, 2016
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.
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.
46
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H. Budgets, Budgetary Accounting, and Encumbrances
The City adopts an annual budget which is effective July 1 for the ensuing fiscal year. The budget
reflects estimated revenues and expenditures, except for the capital projects funds and the Peacock
Gap Assessment District Debt Service Fund. Appropriations and spending authorizations for
projects in the capital projects funds and some special revenue funds are approved by the City
Council on a multi-year basis. From the effective date of the budget, which is adopted at the
department level, the amounts stated therein as proposed expenditures become appropriations to the
various City departments. The City Council may amend the budget by resolution during the fiscal
year in order to respond to emerging needs, changes in resources, or shifting priorities.
Expenditures may not exceed appropriations at the fund level, which is the legal level of control.
The City Manager is authorized to transfer budgeted amounts between accounts, departments or
funds; the Council must approve any increase in the City’s operating expenditures as well as any
appropriations for capital projects.
Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles for the
General Fund and Special Revenue Funds.
Encumbrance accounting, under which purchase orders for expenditures are recorded in order to
reserve that portion of the applicable appropriation, is employed as an extension of the budgetary
process. All unencumbered appropriations lapse at year end.
I. Cash Equivalents
For purposes of the statement of cash flows, the City considers all highly liquid investments
(including all restricted assets) with maturity of three months or less when purchased to be cash
equivalents. The City maintains a cash and investment pool that is available for use by all funds.
As the proprietary funds' share of this pool is readily available when needed, such share is also
considered to be cash equivalent. Deposit assets in the proprietary funds are related to insurance
and benefits and are not considered cash equivalents for purposes of the statement of cash flows.
J. Capital Assets
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is
not available. Contributed capital assets are valued at their estimated fair market value on the
date contributed.
The City has included the value of all infrastructure capital assets into its Basic Financial
Statements using the Basic Approach for infrastructure reporting.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase is reflected in the capitalized value of the asset
constructed, net of interest earned on the invested proceeds over the same period.
Capital assets, excluding infrastructure, are recorded if acquisition or construction costs exceed
$25,000. The similar threshold for infrastructure is $25,000.
47
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Depreciation is provided using the straight-line method which means the cost of the asset is divided
by its expected useful life in years and the result is charged to expense each year until the asset is
fully depreciated. The purpose of depreciation is to spread the cost of capital assets equitably
among all users over the life of these assets. The amount charged to depreciation expense each year
represents that year’s pro rata share of the cost of capital assets.
The City has assigned the useful lives listed below to capital assets:
Buildings, improvements, and structures 20 – 50 years
Machinery and equipment 4 – 20 years
Infrastructure 15 – 50 years
K. Compensated Absences
Compensated absences are accrued as earned. Upon termination, employees are paid for all unused
vacation at their current hourly rates. Unused sick leave may be compensable up to 600 hours,
depending upon the provisions of the MOUs, which vary by bargaining unit.
The long-term portion of the liability for compensated absences for governmental fund type
operations is recorded as compensated absences in the government-wide financial statements.
Compensated absences are liquidated by the fund that has recorded the liability. Proprietary fund
liabilities are recorded within their respective funds. The long-term portion of governmental
activities compensated absences is liquidated primarily by the General Fund.
The changes of the compensated absences were as follows:
Governmental Business-Type
Activities Activities Total
Beginning Balance $4,224,390 $129,723 $4,354,113
Additions 3,960,404 116,142 4,076,546
Payments (3,926,674) (103,140) (4,029,814)
Ending Balance $4,258,120 $142,725 $4,400,845
Current Portion $532,265 $17,841 $550,106
48
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
L. Property Tax Levy, Collection and Maximum Rates
State of California Constitution Article XIII A provides that the combined maximum property tax
rate on any given property may not exceed 1% of its assessed value unless an additional amount for
general obligation debt has been approved by voters. Assessed value is calculated at 100% of market
value as defined by Article XIII A and may be adjusted by no more than 2% per year unless the
property is sold, transferred, or substantially improved. The State Legislature has determined the
method of distribution of receipts from a 1% tax levy among the counties, cities, school districts and
other districts. Marin County assesses properties, bills for and collects property taxes on the schedule
that follows:
Secured Unsecured
Valuation/lien dates January 1 January 1
Levy dates July 1 July 1
Due dates (delinquent as of) 50% on November 1 (December 10) July 1 (August 31)
50% on February 1 (April 10)
The term “unsecured” refers to taxes on personal property other than land and buildings. These taxes
are secured by liens on the property being taxed.
Property taxes are levied and recorded as revenue when received in the fiscal year of levy because of
the adoption of the “alternate method of property tax distribution,” known as the Teeter Plan, by the
City and the County of Marin. The Teeter Plan authorized the auditor-controller of the County of
Marin to allocate 100% of the secured property taxes billed, but not yet paid. The County of Marin
remits tax monies to the City in three installments, as follows:
55% remitted on December 15
40% remitted on April 15
5% remitted on June 15
M. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
(GAAP) requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent asset and liabilities at the dates of the financial
statements and the reported amounts of revenues and expenditures/expenses during the reporting
periods. Actual results could differ from those estimates.
49
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. Recategorization of Funds and New Funds
In Fiscal Year 2015-2016, the City reclassified the Telephone Replacement Fund and Radio
Replacement Fund from Capital Project Funds to Internal Service Funds. In addition, the City
reclassified the Sewer Maintenance Fund from Special Revenue Funds to Internal Service Funds.
As a result of the fund recategorization, total fund balance of the governmental funds were
reduced by $620,969 as of July 1, 2015. Concurrently, total net positions of the Internal Service
Funds were increased by the same amount.
The City added a capital projects fund, San Rafael Essential Facilities, for the purpose of
reporting major capital improvements to public safety facilities.
O. Implementation of Accounting Standards
Adopted in the Current Year
GASB Statement No. 72 – In February 2015, GASB issued Statement No. 72, Fair Value
Measurement and Application. The primary objective of this is to define fair value and describe
how fair value should be measured, define what assets and liabilities should be measured at fair
value, and determine what information about fair value should be disclosed in the notes to the
financial statements. The Statement is effective for periods beginning after June 15, 2015, or the
2015-2016 fiscal year. This pronouncement was implemented effected July 1, 2015.
GASB Statement No. 76 – In June 2015, GASB issued Statement No. 76, The Hierarchy of
Generally Accepted Accounting Principles for State and Local Governments. The objective of
this statement is to reduce the GAAP hierarchy to two categories of authoritative GAAP from the
four categories under GASB Statement No. 55. The statement is effective for the periods
beginning after June 15, 2015, or the 2015-2016 fiscal year.
GASB Statement No. 79 – In December 2015, GASB issued Statement No. 79, Certain External
Investment Pools and Pool Participants. The objective of this Statement is to address for certain
external investment pool and their participants the accounting and financial reporting implications
that result from changes in the regulatory provisions referenced by previous accounting and
financial reporting standards. This statement is effective for the periods beginning after December
15, 2015, or the 2015-2016 fiscal year.
50
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
P. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The City
categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation
techniques used to measure fair value into three levels based on the extent to which inputs used in
measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are
observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair
value hierarchy, the measurement is considered to be based on the lowest priority level input that is
significant to the entire measurement.
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, 2016
NOTE 2 - CASH AND INVESTMENTS
B. Classification
Cash and investments as of June 30, 2016, 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 $65,030,885
Restricted cash and investments 979,094
Total Primary Government Cash and Investments 66,009,979
San Rafael Sanitation District (Component Unit)
Cash and investments available for operations 24,011,268
Total San Rafael Sanitation District Cash and Investments 24,011,268
Statement of Fiduciary Net Position (separate statement):
Successor Agency to the Redevelopment Agency:
Cash and investments available for operations 98,979
Restricted cash and investments 0
Total Successor Agency Cash and Investments 98,979
Pt. San Pedro Road Assessment District Agency Fund 291,111
Total Fiduciary Cash and Investments 390,090
Total Cash and Investments $90,411,337
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, 2016
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, 2016
NOTE 2 - CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents
under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged as
reserves to be used if there are insufficient resources to meet debt repayment obligations. The
California Government Code requires these funds to be invested in accordance with City ordinance
bond indentures or State statute. The table below identifies the investment types that are authorized
for investments held by fiscal agents. The table also identifies certain provisions of these debt
agreements:
Maximum
Maturity
U.S. Treasury Obligations 5 years to no
maximum
N/A No Limit
U.S. Agency Securities 3 - 5 years N/A No Limit
U.S. Agency Instruments 5 years AAA No Limit
Repurchase Agreements 1 year A-1 No Limit
Bankers’ Acceptances 360 days Highest Category Rating No Limit
Money Market Funds N/A Highest Category Rating No Limit
Prime Commercial Paper 270 days Highest Category Rating No Limit
N/A Highest Category Rating No Limit
Municipal Obligations N/A Two Highest Category Ratings No Limit
Medium-Term Corporate Notes 5 Years A No Limit
Non-Negotiable Certificates of Deposit 180 Days N/A No Limit
Negotiable Certificates of Deposit 5 Years N/A No Limit
Local Agency Investment Fund N/A N/A N/A
(A) Guaranteed Investment Contracts must be fully collateralized with U.S.
Treasury Obligations or U.S. Agency Obligations.
Maximum
Percentage of
Portfolio
Guaranteed Investment Contracts (fully
collateralized) (A)
Authorized Investment Type Minimum Credit Quality
E. GASB 72 Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by
Generally Accepted Accounting Principles (GAAP). The hierarchy is based on the valuation
inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active
market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3
inputs are significant unobservable inputs.
54
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 2 - CASH AND INVESTMENTS (Continued)
The following is a summary of the fair value hierarchy of the fair value of investments of the
City as of June 30, 2016:
(a)(b)(c)
Level 1 Level 2 Level 3 Total
City:
Money Market Mutual Funds $210,600 $210,600
Local Agency Investment Fund 24,077,462 (e)24,077,462
U.S. Treasury Notes $6,261,750 6,261,750
U.S. Agency Securities and Instruments 10,634,530 10,634,530
Medium-Term Corporate Notes 3,541,760 3,541,760
Commercial Paper 499,605 499,605
Investment in Pt. San Pedro Bonds $1,582,700 (d)1,582,700
Total Investments $6,261,750 $38,963,957 $1,582,700 46,808,407
Cash in banks and on hand 19,201,572
Total City and Investments 66,009,979
Fiduciary:
Total Investments 0 0
Cash in banks and on hand 390,090
Total Fiduciary Cash and Investments 390,090
Total City and Fiduciary Cash and Investments 66,400,069
San Rafael Sanitary District:
County Investment Pool $24,011,268 (f)24,011,268
Total District's Cash and Investments $24,011,268 24,011,268
Total Cash and Investments $90,411,337
Source: The above GASB 72 classifications into the different Input Levels are provided by the US Bank Institutional Trust & Custody.
(a)Level 1 inputs are quoted prices in active market for identical assets. These are quoted prices in active markets for identical assets at the
measurement date. An active market for the asset is a market in which transactions for the asset occur with sufficient frequen cy and volume
to provide pricing information on an ongoing basis.
(b)Level 2 inputs are significant other observable inputs. These inputs include: a) Quoted prices for similar assets in active markets; b) Quoted
prices for identical or similar assets in markets that are not active; and c) Inputs other than quoted prices that are observable for an asset.
(c)Level 3 inputs are significant unobservable inputs. These inputs shall be used to measure fair value to the extent that observable inputs
are not available, thereby allowing for situations in which there is little, if any, market activity for the asset at the measurement date,
unobservable inputs shall reflect the assumptions that market particpants would use in pricing the asset including assumptions about risk.
(d)This pertains to the City-owned bonds of its investments in Pt. San Pedro that has no trading market and is thus listed under Level 3.
This bond is valued using discounted cash flow techniques.
(e)The Local Agency Investment Fund (LAIF) that is classified in Level 2 is valued based on the fair value factor provided by the Treasurer
of the State of California, which is calculated as the fair value divided by the amortized cost of the investment pool.
(f)The County Investment Pool, held by the San Rafael Sanitary District, that is classified in Level 2
is valued based on other observable inputs.
55
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 2 - CASH AND INVESTMENTS (Continued)
F. 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:
Money Market Mutual Funds $210,600 $210,600
Local Agency Investment Fund 24,077,462 24,077,462
U.S. Treasury Notes 3,756,050 $2,505,700 6,261,750
U.S. Agency Securities and Instruments 3,506,295 7,128,235 10,634,530
Medium-Term Corporate Notes 2,008,080 1,533,680 3,541,760
Commercial Paper 499,605 499,605
Investment in Pt. San Pedro Bonds 1,582,700 1,582,700
Total Investments $34,058,092 $12,750,315 46,808,407
Cash in banks and on hand 19,201,572
Total City and Investments 66,009,979
Fiduciary:
Total Investments 0 0
Cash in banks and on hand 390,090
Total Fiduciary Cash and Investments 390,090
Total City and Fiduciary Cash and Investments 66,400,069
San Rafael Sanitary District:
County Investment Pool 24,011,268
Total District's Cash and Investments 24,011,268
Total Cash and Investments $90,411,337
56
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
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, 2016, these investments matured in an average of 167 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 42 days at June 30, 2016.
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.
57
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 2 - CASH AND INVESTMENTS (Continued)
G. 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, 2016, 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 A1/P1 Total
City (except Fiduciary Funds):
Money Market Mutual Funds $210,600 $210,600
U.S. Agency Securities and Instruments 10,634,530 10,634,530
Medium-Term Corporate Notes $501,910 $1,533,665 $501,090 $1,005,095 3,541,760
Commercial Paper $499,605 499,605
Total rated investments $501,910 $1,533,665 $501,090 $1,005,095 $10,845,130 $499,605 14,886,495
Not rated:
Local Agency Investment Fund 24,077,462
U.S. Treasury Notes 6,261,750
Investment in Pt. San Pedro Bonds 1,582,700
Cash in banks and on hand 19,201,572
Total City Cash and Investments 66,009,979
Fiduciary:
Money Market Mutual Funds $0 -
Total rated investments $0 0
Not rated:
Local Agency Investment Fund -
Cash in banks and on hand 390,090
Total Fiduciary Cash and Investments 390,090
Total City and Fiduciary Cash and Investments 66,400,069
AAA/V1
Component Unit
San Rafael Sanitary District:
Investment in County Pool (Rated AAA/V1)24,011,268 24,011,268
Total District's Cash and Investments $24,011,268 24,011,268
Total Cash and Investments $90,411,337
H. 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.
58
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
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, 2016, were as follows:
From Fund To Fund Amount
General Fund Non-Major Governmental Funds $4,340,655 (A)
Gas Tax Fund General Fund 400,000 (B)
Childcare Fund Non-Major Governmental Funds 325,000 (A)
Traffic and Housing Mitigation Fund Gas Tax Fund 1,516,900 (C)
Parking Services Enterprise Fund General Fund 418,542 (B)
Non-Major Governmental Fund 90,000 (A)
Internal Service Funds General Fund 292,267 (B)
Non-Major Governmental Fund 150,000 (A)
Parking Services Enterprise Fund 60,064 (D)
$7,593,428
(A) Transfers to the Non-Major Governmental Funds were for administrative costs, program support, capital projects,
and grant matching. This includes $1,849,405 transferred from the General Fund Measure E reserve to the San Rafael
Essential Facilities Capital Project.
(B) Transfers to the General Fund were for street maintenance support, administrative costs, engineering support
and pension obligation bond debt service interest payment.
(C) Transfer to Gas Tax Fund for Downtown Rail Readiness Project.
(D) Transfer capital asset from Vehicle Fund to Parking Enterprise Fund.
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.
59
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
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, 2016, these loans totaled:
Employee Loans $7,232
Centertown Associates 230,066
One "H" Street Associates 48,573
Fire Chief Loan 287,297
Marin Housing Authority 530,000
Town of Ross 10,938
Total $1,114,106
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, 2016, the balance of the employee loans receivable
was $7,232.
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, 2016, the balance of the loan including principal and accrued
interest 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,
2016, the balance of this loan was $48,573.
60
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 4 – LOANS RECEIVABLE (Continued)
E. Fire Chief Loan
On September 17, 2007, the City Council approved a Home Loan Agreement to provide the Fire
Chief with housing assistance. Under the Agreement, which was executed on October 3, 2007, the
City loaned the Fire Chief $600,000 to assist in the purchase of his primary residence. The loan is
secured by a recorded deed of trust. The initial interest rate to be charged was 5.25% through
August 31, 2008. On September 1, 2008, and on each September 1 following, until the loan is paid
off, the interest rate of the loan will be adjusted based upon the then reported quarter-to-date Local
Agency Investment Fund rate on the City’s investment portfolio. As of June 30, 2016, the balance
of the loan was $287,297.
F. Marin Housing Authority Loans
On September 29, 2015, November 16, 2015, and April 19, 2016, the City made loans to the Marin
Housing Authority for a low and moderate income unit, in the amounts of $135,000, $250,000 and
$145,000, respectively. As with other loans made under this program, this loan is due upon the sale
of the unit. As of June 30, 2016, the balances of the loans were $530,000.
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 $10,938 as of June 30, 2016. The final payment of $10,938 will be due on
November 1, 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
an obligation, and by the City as a noncurrent receivable. The obligation as of June 30, 2016 is
$4,859,007, and is composed of the following:
Long-term receivable from San Rafael Sanitation District:
Defined benefit pension liability allocation (GASB 68) $3,857,007
Other post-employment benefit liability allocation (GASB 45) 278,645
Other post-employment benefit liability in excess of GASB 45 allocation 723,355
Total long-term receivable from San Rafael Sanitation District $4,859,007
61
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 5 - CAPITAL ASSETS
Changes in capital assets during the fiscal year consisted of:
Balance Balance
June 30, 2015 Additions Retirements Transfers June 30, 2016
Governmental Activities
Capital assets not being depreciated:
Land $83,261,168 $83,261,168
Construction in progress 4,506,263 $9,137,202 ($2,123,744) 11,519,721
Total capital assets not being depreciated 87,767,431 9,137,202 (2,123,744) 94,780,889
Capital assets being depreciated:
Land improvements 8,788,985 231,112 9,020,097
Buildings and structures 41,485,770 181,332 41,667,102
Machinery and equipment 18,927,068 1,420,023 ($1,835,961) (34,702) 18,476,428
Infrastructure 185,528,716 1,684,222 187,212,938
Total capital assets being depreciated 254,730,539 1,420,023 (1,835,961) 2,061,964 256,376,565
Less accumulated depreciation for:
Land improvements (5,530,029) (270,055)(5,800,084)
Buildings and structures (15,890,764) (1,196,051)(17,086,815)
Machinery and equipment (12,642,753) (1,192,106) 1,706,356 1,716 (12,126,787)
Infrastructure (117,359,672) (4,698,426)(122,058,098)
Total accumulated depreciation (151,423,218) (7,356,638) 1,706,356 1,716 (157,071,784)
Total net capital assets being depreciated 103,307,321 (5,936,615) (129,605) 2,063,680 99,304,781
Total governmental activity capital assets $191,074,752 $3,200,587 ($129,605) ($60,064) $194,085,670
Balance Balance
June 30, 2015 Additions Retirements Transfers June 30, 2016
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 1,185,162 $149,928 ($130,005) $61,780 1,266,865
Total capital assets being depreciated 11,898,976 149,928 (130,005) 61,780 11,980,679
Less accumulated depreciation for:
Buildings and structures (2,689,233) (205,363)(2,894,596)
Machinery and equipment (1,088,496) (45,872) 128,263 (1,716) (1,007,821)
Total accumulated depreciation (3,777,729) (251,235) 128,263 (1,716) (3,902,417)
Total net capital assets being depreciated 8,121,247 (101,307) (1,742) 60,064 8,078,262
Total business-type activity capital assets $16,742,100 ($101,307) ($1,742) $60,064 $16,699,115
62
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 5 - CAPITAL ASSETS (Continued)
Balance Transfers & Balance
June 30, 2015 Additions Retirements Adjustments June 30, 2016
San Rafael Sanitation District
Capital assets not being depreciated:
Land and easements $115,329 $115,329
Construction in progress 591,304 $5,220,500 ($2,607,737) 3,204,067
Total capital assets not being depreciated 706,633 5,220,500 (2,607,737) 3,319,396
Capital assets being depreciated:
Subsurface lines 25,660,029 91,704 2,612,505 28,364,238
Sewage collection facilities 39,191,304 312,607 (4,768) 39,499,143
General plant and administ ration 1,615,739 34,158 1,649,897
Total capital assets being depreciated 66,467,072 438,469 2,607,737 69,513,278
Less accumulated depreciation for:
Subsurface lines (10,359,256) (453,239)(10,812,495)
Sewage collection facilities (16,793,792) (837,557)(17,631,349)
General plant and administration (828,828) (134,945)(963,773)
Total accumulated depreciation (27,981,876) (1,425,741)(29,407,617)
Total net capital assets being depreciated 38,485,196 (987,272)2,607,737 40,105,661
Total District's capital assets $39,191,829 $4,233,228 $43,425,057
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 $462,096
Public safety 881,313
Public works and parks 5,242,820
Community development/redevelopment 57,369
Culture and recreation 713,040
Total Governmental Activities $7,356,638
Business-type Activities
Parking services $251,235
Total Business-type Activities $251,235
63
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
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, 2016, are as follows:
Authorized Balance Balance Current
and Issued June 30, 2015 Additions Retirements June 30, 2016 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 $100,000
Total Pension Obligation Bonds 4,490,000 4,490,000 100,000
PG & E City Hall HVAC Retrofit Note Payable
0.00%, due 11/30/2023 334,585 279,118 $33,280 245,838 $33,280
PG & E Street Light Retrofit Note Payable
0.00%, due 8/31/2019 233,896 174,549 41,892 132,657 41,892
Total Governmental Long-term Debt $4,943,667 $75,172 $4,868,495 $175,172
Business-type Activities
PG & E Parking Lot Lighting Retrofit Note Payable
0.00%, due 11/30/2023 $66,380 $55,020 $6,816 $48,204 $6,816
2012 Authority Lease Revenue Refunding Bonds
2.00-4.00%, due 4/1/2033 6,750,000 5,955,000 250,000 5,705,000 260,000
Less: unamortized bond discount (12,872)(725) (12,147)
Total Enterprise Fund Debt $5,997,148 $256,091 $5,741,057 $266,816
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.
64
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 6 - LONG-TERM DEBT (Continued)
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.
D. Future Debt Service
Future debt service requirements, including interest, at June 30, 2016, are as follows:
For the Year Governmental Activities Business-type Activities
Ended June 30 Principal Interest Principal Interest
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 508,280 192,062 296,816 161,288
2022 - 2026 2,924,438 465,474 1,609,124 668,314
2027 - 2031 1,880,000 382,668
2032 - 2035 850,000 51,400
Totals $4,868,495 $1,660,684 5,753,204 $1,991,772
Reconciliation of Long-term debt:
Less: unamortized discount (12,147)
$5,741,057
65
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
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, 2016
San Rafael Redevelopment Agency 162-175 Belvedere
Multifamily Housing Revenue Bonds-2000A Apartments $3,590,529 $1,124,078
California Statewide Communities
Development Authority Revenue Bonds-2002 St. Marks School 5,605,000 3,915,000
San Rafael Redevelopment Agency
Variable Rate Demand Multifamily 55 Fairfax
Housing Revenue Bonds-2001A Apartments 3,000,000 2,200,000
San Rafael Redevelopment Agency San Rafael Commons
Multifamily Housing Revenue Bonds-2001 Apartments 6,100,000 5,020,000
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 1,989,078
Multifamily Housing Revenue Bonds-2007 Series B Martinelli House 1,000,000 219,539
Pt. San Pedro Road Median Landscaping Pt. San Pedro Road 1,750,000 1,582,700
Assessment District Limited Obligation Bonds-2012 Median Landscaping
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.
66
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
B. Fund Balance
In the fund financial statements, fund balances represent the net current assets of each fund. Net
current assets generally represent a fund’s cash and receivables, less its liabilities. The City’s
fund balances are classified in accordance with Governmental Accounting Standards Board
Statement Number 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type
Definitions, which requires the City to classify its fund balances based on spending constraints
imposed on the use of resources. For programs with multiple funding sources, the City
prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and
Unassigned. Each category in the following hierarchy is ranked according to the degree of
spending constraint:
Nonspendable represents balances set aside that do not represent available, spendable resources
even though they are a component of assets. Fund balances required to be maintained intact, such
as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes
receivable, and land held for redevelopment are included. However, if proceeds realized from the
sale or collection of nonspendable assets are restricted, committed or assigned, then
Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors,
laws, regulations, or enabling legislation which requires the resources to be used only for a
specific purpose. 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.
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
67
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
Detailed classifications of the City’s fund balances, as of June 30, 2016, are below:
Special Revenue Funds
General Fund
Traffic and
Housing
Mitigation Gas Tax
Other
Governmental
Funds Total
Fund balances:
Nonspendable:
Loans receivable $294,529 $294,529
Prepaids 181,787 $9,449 191,236
Total Nonspendable 476,316 9,449 485,765
Restricted for:
Assessment District capital projects 300,417 300,417
Baypoint Lagoons Assessment District 217,920 217,920
Bedroom tax capital projects 58,740 58,740
Childcare 1,152,149 1,152,149
Development services 1,001,277 1,001,277
Emergency medical services 1,561,657 1,561,657
1997 financing authority revenue bonds debt service 147,304 147,304
Gas tax $6,653,263 6,653,263
Grants 614,304 614,304
Household hazmat facility 248,639 248,639
Library 635,888 635,888
Library assessment 699,375 699,375
Loch Lomond Assessment District 690,944 690,944
Low and Moderate Income Housing 929,557 929,557
Mariposa Assessment District debt service 16,573 16,573
Measure A Open Space 362,256 362,256
Parkland dedication 491,723 491,723
Peacock Gap Assessment District debt service 2,875 2,875
Public safety 174,018 174,018
Pt. San Pedro - Maintenance Portion 166,671 166,671
Recreation revolving 26,379 26,379
Storm water 961,159 961,159
Traffic and housing mitigation $10,439,157 10,439,157
Total Restricted 10,439,157 6,653,263 10,459,825 27,552,245
(Continued)
68
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
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 $3,766,552 $3,766,552
Equipment replacement capital projects
Park capital projects 32,869 32,869
Total Committed 3,799,421 3,799,421
Assigned to:
Contractual commitments $140,923 $140,923
MOU - One time payment 1,000,000 1,000,000
Emergency and cash flow 6,850,000 6,850,000
Infrastructure reserve 600,000 600,000
General plan / long range planning 1,513,610 1,513,610
Measure E - Public Safety Facility 6,336,377 6,336,377
Open space capital projects 119,183 119,183
Total Assigned 16,440,910 119,183 16,560,093
Unassigned to:
General Fund 1,772,577 1,772,577
1,772,577 1,772,577
Total Fund Balances $18,689,803 $10,439,157 $6,653,263 $14,387,878 $50,170,101
NOTE 9 – PENSION PLANS
A. Plan Description
The City’s defined benefit retirement plan is administered by the Marin County Employees’
Retirement Association (MCERA), a retirement system established in July 1950 and governed by
the California Constitution; the County Employees Retirement Law of 1937 (CERL or 1937 Act,
California government Code Section 31450 et seq.); the Public Employees’ Pension Reform Act
of 2013 (PEPRA, Government Code Section 7522); the provisions of California Government
Code Section 7500 et seq; and the bylaws, procedures, and policies adopted by MCERA’s Board
of Retirement. The Marin County Board of Supervisors may also adopt resolutions, as permitted
by the CERL and PEPRA, which may affect the benefits of MCERA members.
MCERA operates as a cost-sharing multiple employer defined benefit plan for the City and eight
other participating employers: County of Marin, Local Agency Formation Commission
(LAFCO), Marin City Community Services District, Marin County Superior Court,
Marin/Sonoma Mosquito and Vector Control District, Novato Fire Protection District, Southern
Marin Fire Protection District, and Tamalpais Community Services District. Separate actuarial
valuations are performed for these other agencies and districts, and the responsibility for funding
their plans rest with those entities. Post-retirement benefits are administered by MCERA to
qualified retirees.
Copies of MCERA’s annual financial reports, which include required supplementary information
(RSI) for each plan may be obtained from their office at One McInnis Parkway, Suite 100, San
Rafael, CA 94903 or online at www.mcera.org.
69
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 9 – PENSION PLANS (Continued)
B. Benefit Provisions
Service Retirement: MCERA’s service retirement benefits are based on the years of credited
service, final average compensation, and age at retirement, according to the applicable statutory
formula. Members who qualify for service retirement are entitled to receive monthly retirement
benefits for life.
General members hired prior to January 1, 2013 are eligible to retire once they attain the age of
50 (except Misc Tier 2, whereby the minimum age is 55) and have acquired 10 or more years of
retirement service credit. A member with 30 years of service is eligible to retire regardless of age.
A member who is age 70 or older is eligible to retire regardless of service credit. General
members who are first hired on or after January 1, 2013 are eligible to retire once they have
attained the age of 52, and have acquired 5 years of retirement service credit, or age 70,
regardless of service.
Safety members hired prior to January 1, 2013 are eligible to retire once they attain the age of 50
and have acquired 10 or more years of retirement service credit. A member with 20 years of
service is eligible to retire regardless of age. A member who is age 70 or older is eligible to retire
regardless of service. Safety members who are first hired on or after January 1, 2013 are eligible
to retire once they have attained the age of 50, and have acquired 5 years of retirement service
credit, or age 70, regardless of service.
Disability Retirement: A member with five years of service, regardless of age, who becomes
permanently incapacitated for the performance of duty is eligible to apply for a non-service
connected disability retirement. Any member who becomes permanently incapacitated for the
performance of duty as a result of injury or disease arising out of and in the course of
employment is eligible to apply for a service-connected disability retirement, regardless of
service length or age.
Death Benefits: MCERA provides specified death benefits to beneficiaries and members’
survivors. The death benefits provided depend on whether the member is active or retired. The
basic active member death benefit consists of a members’ retirement contributions plus interest
plus one month’s pay for each full year of service (up to a maximum of six month’s pay).
Retiring members may choose from five retirement benefit payment options. Most retirees elect
to receive the unmodified allowance which provides the maximum benefit to the retiree and
continuance of 60% of the retiree’s allowance to the surviving spouse or registered domestic
partner after the retiree’s death. Other death benefits may be available based on the years of
service, marital status, and whether the member has minor children.
Cost of Living Adjustment: Retirement allowances are indexed for inflation. Most retirees
receive automatic basic cost of living adjustments (COLA’s) based upon the Urban Consumer
Price Index (UCPI) for the San Francisco Bay Area. These adjustments go into effect on April 1
of each year. Annual COLA increases are statutorily capped at 2%, 3%, or 4% depending upon
the member’s retirement tier. When the UCPI exceeds the maximum statutory COLA for the
member’s tier, the difference is accumulated for use in future years when the UCPI is less than
the maximum statutory COLA. The accumulated percentage carryover is known as the COLA
Bank.
70
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 9 – PENSION PLANS (Continued)
C. 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 City contribution rates for the year ended June 30, 2016 were as follows:
Employer Employee
Contribution Rate Contribution Rate Benefit Basis
City of San Rafael Misc Tier 1 48.90% 0.00% - 17.85% 2.7% @ 55 Highest year
City of San Rafael Misc Tier 2 45.19% 7.89% - 12.62% 2.0% @ 55 Highest year
City of San Rafael Fire Tier 1 75.64% 0.00% - 19.79% 3.0% @ 55 Highest year
City of San Rafael Fire Tier 2 72.57% 11.34% - 17.69% 3.0% @ 55 Average three highest years
City of San Rafael Safety Police Tier 1 74.67% 00.00% - 19.79% 3.0% @ 55 Highest year
City of San Rafael Safety Police Tier 2 76.20% 11.34% - 17.69% 3.0% @ 55 Average three highest years
PEPRA Misc 41.19% 10.07% 2.0% @ 62 Average three highest years
PEPRA Safety 66.40% 13.80% - 14.80% 2.7% @ 57 Average three highest years
These rates were determined by MCERA, based on the actuarial valuation dated June 30, 2014.
The actual rate of return on investments during that year was 18.07%. 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 12.43%.
The City uses the actuarially determined percentages of payroll to calculate and pay contributions
to MCERA. Contributions to the plan from the City were $19,339,577 for the year ended June 30,
2016, based on a total payroll of $40,300,359, of which $32,126,272 represented the basis for the
plan contributions. Of the total payroll subject to plan contributions, $1,424,835 is attributable to
the San Rafael Sanitation District (SRSD), a component unit of the City.
Effective with the June 30, 2013 valuation, the Unfunded Actuarial Liability (UAL) as of June
30, 2013 is being amortized over a closed 17-year period (16 years remaining as of June 30,
2014), except for the additional UAL attributable to the outstanding unfunded actuarial loss from
2009, which is being amortized over a separate closed period (currently 24 years).
D. Pension Liability and Pension Expense
At June 30, 2016, the City reported a liability of $142,323,127 for its proportionate share of the
net pension liability; deferred inflows of $33,817,085; deferred outflows of $39,886,216 due to
the change of assumptions; and additional deferred outflows of $19,339,577 from actual fiscal
year 2015-2016 pension contributions made after the measurement date. Consequently, the net
impact on the City’s Statement of Net Position before allocations is $116,914,419. After
allocations to the San Rafael Sanitation District, the net impact on the City’s Statement of
Position is $113,057,412.
The proportionate share of the annual pension expense is $19,107,673, or 61.43% of payroll.
71
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 9 – PENSION PLANS (Continued)
The table below provides a summary of the key results during this reporting period.
Measurement Date Measurement Date
Description 6/30/2015 6/30/2014
Net Pension Liability $142,323,127 $74,253,787
Deferred Inflows 33,817,085 47,044,494
Deferred Outflows (39,886,216) (4,554,158)
Additional Deferred Outflows - Actual FY 15-16 and FY 14-15 Contributions (19,339,577) (17,802,358)
Impact on Statement of Net Position before Allocations 116,914,419 98,941,765
Allocation of NPL to SRSD 4,695,240 2,543,237
Allocation of Deferred Inflows (measurement date) to SRSD 1,115,626 1,611,302
Allocation of Deferred Outflows (measurement date) to SRSD (1,315,846) (155,983)
Allocation of Additional Deferred Outflows (contributions) to SRSD (638,013) (609,741)
Net Impact on Statement of Net Position, net of receivable from
SRSD (see Note 4H)113,057,412 95,552,950
Pension Expense ($ Amount)19,107,673 9,356,796
Covered Payroll ($Amount)31,106,414 31,429,178
Pension Expense (% of Payroll)61.43%29.77%
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, 2015. The beginning of year measurement of TPL is based on the
actuarial valuation as of June 30, 2014. The TPL at the end of the measurement year, June 30,
2015, is also measured as of the valuation date of June 30, 2014, and projected to June 30, 2015.
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, 2014. The FNP at the end
of the measurement year, June 30, 2015, is also measured as of the valuation date of June 30,
2014, and projected to June 30, 2015. There were significant events during the projection period
related to actuarial assumption changes as discussed in the actuarial assumptions section of
Note 9.
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.
72
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 9 – PENSION PLANS (Continued)
Actuarial assumptions:
The total pension liability as of June 30, 2015 was determined by an actuarial valuation as of June
30, 2014, using the following actuarial assumptions applied to all prior periods included in the
measurement. The key assumptions in the valuation were:
Inflation: 3.25%
Salary increases: 3.25% plus merit component
COLA increases:
o 3% 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: 7.25% net of investment expense assumed
Post-Retirement Mortality: Adopted CalPERS mortality tables projected generationally
using Scale MP2014
These assumptions constitute a significant change from those used in prior actuarial valuations: The
investment rate of return assumption of 7.25%, coupled with an inflation assumption of 3.25%, was
a decrease from the former 7.50% and 3.50% assumptions for investment returns and inflation,
respectively. The Post-Retirement Mortality assumption incorporated greater longevity
assumptions for retirees. The combined impact of these assumption changes were the major force
behind the growth in NPL from $74.3 million in the prior year to $142.3 million in the current year.
During the measurement year, the service cost and interest cost increased the NPL while
contributions and investment earnings offset by administrative expenses decreased the NPL. As a
result, the Net Pension Liability (NPL) increased from approximately $74.3 million as of June 30,
2014, to approximately $142.3 million as of June 30, 2015. 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 as of June 30, 2015.
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 9 – PENSION PLANS (Continued)
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, 2015:
Asset Class Target Allocation Long-Term Expected Real Rate of Return
Domestic Equity 32% 5.35%
International Equity 22% 5.55%
Fixed Income 23% 0.75%
Real Estate 15% 7.55%
Private Equity 8% 6.25%
Total 100%
Determination of Discount Rate
The discount rate used to measure the Total Pension Liability was 7.25%. 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 2009 amortized over a closed period (24 years remaining as of the June
30, 2014 actuarial valuation) and an amount necessary to amortize the remaining Unfunded
Actuarial Liability as a level percentage of payroll over a closed period (16 years remaining as of
the June 30, 2014 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 85%. A one
percent increase in the discount rate decreases the TPL by approximately 11% and decreases the
NPL by approximately 70%.
74
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 9 – PENSION PLANS (Continued)
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 6.25%7.25%8.25%
Total Pension Liability $1,028,613,399 $907,195,058 $807,486,715
Fiduciary Net Position 764,871,931 764,871,931 764,871,931
Net Pension Liability $263,741,468 $142,323,127 $42,614,784
Fiduciary Net Position as a Percentage of the Total Pension Liability 74.4%84.3%94.7%
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.
75
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 9 – PENSION PLANS (Continued)
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 $39,886,216
Changes in proportion and difference between City
contributions and proportionate share of contributions $8,556,872
Actual FY 15-16 contributions (post measurement date)19,339,577
Net difference between projected and actual earnings
on pension plan investments 25,260,213
Deferred Inflows and Outflows Before Allocations $59,225,793 $33,817,085
Allocation to SRSD
Allocation of Deferred Inflows (measurement date)$1,115,626
Allocation of Deferred Outflows (measurement date)$1,315,846
Allocation of Additional Deferred Outflows (contributions)638,013
Net Deferred Inflows and Outflows $57,271,934 $32,701,459
$19,339,577 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, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized as pension expense as follows:
Amortization
Year ended June 30 Amount
2017 $1,517,283
2018 1,517,283
2019 1,517,283
2020 1,517,282
76
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 9 – PENSION PLANS (Continued)
For the year ended June 30, 2016, the City recognized a pension expense of $19,107,673. 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 $18,026,000
Employee contributions (7,703,594)
Administrative expenses 1,710,081
Sub-total 12,032,487
Financing Expenses
Interest cost 61,251,481
Expected return on assets (54,984,368)
Sub-total 6,267,113
Changes
Benefit changes -
Recognition of assumption changes 13,295,405
Recognition of liability gains and losses (2,852,291)
Recognition of investment gains and losses (9,635,041)
Sub-total 808,073
Pension Expense $19,107,673
Pension Expense as % of Payroll 61.43%
Pension Expense for the year ended June 30, 2016
Pension expense is charged to each function or program based on the proportion of each
governmental program expenses for the previous fiscal year. Business-type activities are charged,
based on a separate analysis of pension costs attributable to enterprise activities. The expense
allocated to each function/program for the fiscal year ended June 30, 2016 is as follows:
Governmental Activities
General government $2,088,476
Public safety 9,222,563
Public works and parks 3,881,238
Community development 720,801
Culture and recreation 2,569,010
Total Governmental Activities $18,482,088
Business-type Activities
Parking services $625,585
Total Business-type Activities 625,585
77
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
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 $82,853. The total covered payroll of
employees participating in the plan for the year ended June 30, 2016, was $2,209,366. The total
payroll for the year was $40,300,359.
The City also made contributions to a 401(a) tax qualified plan for eligible executive management
and mid-management employees, and elected officials. Under this plan, which was terminated
effective August 3, 2015, the percent amount of contribution ranged from 3% to 4.6% of base salary
of participating employees. During the year, and prior to the plan’s termination, the City
contributed $3,770 on behalf of these employees.
78
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
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, 2016, 327 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,
2016, 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.
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Prior to the end of the fiscal year, the City’s actuary prepared a new valuation, as of June 30, 2015.
Although this valuation did not recalculate the ARC for the fiscal year ended June 30, 2016, it did
result in a significant change to the measurement of the City’s unfunded actuarial liability (UAL).
The earlier valuation measured the UAL to be $21,044,000 as of June 30, 2013; the new valuation
calculated the UAL to be $32,727,000 as of June 30, 2015. The major driver of this change was a
revision to the actuarial methodology.
To comply with newly revised Actuarial Standard of Practice No. 6 (ASOP 6), the June 30, 2015
actuarial valuation includes an implicit subsidy liability. This liability was not calculated in prior
reports because of the former "community rating" exemption for employers participating in large
pooled health plans like CalPERS. When premiums for retirees are determined using a blend of
active employee and retiree experience, it creates an implicit subsidy to the retirees, since retiree
healthcare costs are generally higher than those of active employees. ASOP 6 effectively requires
most public agencies to calculate an implicit subsidy liability whenever their retirees participate in
the group medical plans, but pay the same premiums as active employees. ASOP 6 is effective for
all actuarial valuations with a measurement date on or after March 31, 2015.
Funding Progress and Funded Status
During the fiscal year ended June 30, 2016, the City has recorded a Net OPEB Obligation 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) $2,148
Interest on net OPEB obligation 695
Adjustment to annual required contribution (712)
Annual OPEB cost 2,131
Contributions made:
Benefits payment 2,194
Additional contribution to OPEB Trust -
Total contributions 2,194
Change in net OPEB obligation/(asset)(63)
Net OPEB Obligation (Asset) at June 30, 2015 9,164
Net OPEB Obligation (Asset) at June 30, 2016 $9,101
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, 2016, the account balance in the CERBT was
$15,756,989.
80
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
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, 2014 $2,496 $2,380 $2,600 109% $9,296
June 30, 2015 2,112 2,118 2,250 106% 9,164
June 30, 2016 2,148 2,131 2,194 103% 9,101
Funded Status and Funding Progress – As of June 30, 2015, the most recent actuarial valuation
date, the plan was 32% funded. The Actuarial Accrued Liability (AAL) for benefits was $48,226
thousand and the Actuarial Value of Plan Asset was $15,449 thousand resulting in an Unfunded
Actuarial Accrued Liability (UAAL) of $32,727 thousand. The covered payroll (annual payroll
of active employees covered by the plan) was $32,906 thousand and the ratio of UAAL to the
covered payroll was 99 percent.
The schedule of funding progress presented immediately following the financial statements as
required supplementary information, presents multi-year trend information about whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liability for benefits.
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 16.37% or $188,167 for
the year ended June 30, 2016. 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.
81
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
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 $3,226 for the year ended June 30, 2016. 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 $302,729 of the Authority’s operation and debt service for the fiscal
year ended June 30, 2016. 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 $217,118 for the year ended June 30, 2016.
Financial statements of the Agency can be obtained at 555 Northgate Drive, Suite 230, San
Rafael, California 94903.
82
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
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, 2016. 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, 2016, the City
contributed $249,299 for coverage during the current year and received a refund of $52,041 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.
83
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
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, 2016:
General Workers'Totals, as of June 30
Liability Compensation 2016 2015
Balance, beginning of year $1,327,040 $5,992,378 $7,319,418 $6,589,706
Current year claims and changes
in estimates 1,712,534 1,398,675 3,111,209 2,737,445
Claims paid (495,919) (1,346,142) (1,842,061) (2,007,733)
Balance, end of year $2,543,655 $6,044,911 $8,588,566 $7,319,418
Due in one year $746,913 $1,382,212 $2,129,125 $1,945,792
Due in more than one year 1,796,742 4,662,699 6,459,441 5,373,626
Total claim liabilities $2,543,655 $6,044,911 $8,588,566 $7,319,418
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 as of June 30, 2016.
In August 2004, the City of San Rafael entered into a ten-year Settlement Agreement with the
federal Department of Justice (DOJ) 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, at which time the term was extended to February
2019.
Since the commencement of the Settlement Agreement in August 2004, the City has been
complying with the ADA requirements by submitting all support documentation to report the
City’s progress in fulfilling the terms of the Agreement. The DOJ has expressed satisfaction with
the City’s compliance and in June 2016 issued correspondence DJ# 204-11-272. The DOJ no
longer requires the City to report on its progress and considers the file closed. The City’s
obligations to complete the remedial actions under the Agreement and to comply with Title II of
the ADA still remain.
84
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
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 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. Assets and
Liabilities relating to the Housing Successor are reported in the City’s Low and Moderate Income
Housing Special Revenue Fund.
85
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 15 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
B. Redevelopment Property Tax Trust Fund (RPTTF)
The Successor Agency’s primary source of revenue comes from the RPTTF allocation distributed
by the County. Property tax revenues for each Project Area are deposited into the RPTTF, which
redistributes each Project Area’s tax increment under specified formulas. The County Auditor
administers the RPTTF and disburses twice annually from this fun pass-through payments to
affected taxing entities, an amount equal to the total of obligation payments that are required to be
paid from tax increment as denoted on the Recognized Obligation Payment Schedule (“ROPS”).
The disbursements are established in the treasury of the Successor Agencies, and various allowed
administrative fees and allowances. Any remaining balance is then distributed by the County
Auditor back to affected taxing entities under a prescribed method that accounts for pass-through
payments. The County Auditor is also responsible for the distributing other monies received from
the Successor Agency (from sale of assets, etc.) to the affected taxing entities. Successor agencies
in turn will use the amounts deposited into their respective funds for making payments on the
principal and interest on loans, and monies advanced to or indebtedness incurred by the dissolved
redevelopment agencies.
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.
86
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 15 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
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.
The former Agency pledged all future tax increment revenues 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 $25.1 million in remaining
debt service on the Bonds, which is scheduled to occur in 2023. For fiscal year June 30, 2016,
tax increment revenues amounted to $4.1 million which was used to make the debt service
payments of $3.6 million.
87
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
NOTE 15 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
The following table summarizes the activity for the fiscal year ended June 30, 2016:
Authorized Balance Balance Current
and Issued June 30, 2015 Additions Retirements June 30, 2016 Portion
San Rafael Redevelopment Agency
1999 Tax Allocation Bonds
Capital Appreciation Bonds
5.58%-5.6%, due 12/1/2022 $2,389,004 $5,748,167 $325,930 $6,074,097
2002 Tax Allocation Refunding Bonds
2.00%-5.25%, due 12/1/2021 25,020,000 7,800,000 $1,740,000 6,060,000 $1,830,000
2009 Tax Allocation Refunding Bonds
3.00%-5.00%, due 12/1/2022 14,660,000 9,965,000 1,060,000 8,905,000 1,100,000
Add: deferred bond premium costs 638,883 79,860 559,023
Total Successor Agency Long-term Debt $24,152,050 $325,930 $2,879,860 $21,598,120 $2,930,000
Debt Service Requirements
Annual debt service requirements are shown below:
For the Year Governmental Activities
Ended June 30 Principal Interest
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 3,389,231 214,175
2022 - 2023 6,991,123 157,319
Totals $22,928,517 $2,157,491
Reconciliation of long-term debt:
Less unaccreted discount ($1,889,420)
Add deferred bond premium costs 559,023
$21,598,120
88
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
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 February 26, 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, 2016:
Approved Balance Balance
Amount June 30, 2015 Additions Retirements June 30, 2016
Unfunded Pension Liability $1,904,431 $1,142,659 $190,443 $952,216
Unfunded OPEB Obligation 502,000 390,444 55,778 334,666
Total Long Term Obligations $1,533,103 $246,221 $1,286,882
Annual repayment requirements are shown below:
For the Year Ended
June 30 Principal
2017 $246,221
2018 246,221
2019 246,221
2020 246,221
2021 246,221
2022 55,777
Totals $1,286,882
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, 2016, the Successor Agency had prepared ten 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.
89
REQUIRED SUPPLEMENTARY INFORMATION
REQUIRED SUPPLEMENTARY INFORMATION
Post-Employment Health Care Benefits Schedule of Funding Progress
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
6/30/2011 $9,861 $35,156 ($25,295) 28% $31,692 (80%)
6/30/2013 12,505 33,549 (21,044) 37% 31,429 (67%)
6/30/2015 15,499 48,226 (32,727) 32% 32,906 (99%)
93
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2016
Last 10 years*
6/30/2015 6/30/2016
City's proportionate share 30.0453% 36.7394%
Proportionate share of total pension liability $677,753,565 $907,195,058
Proportionate share of fiduciary net position 603,499,779 764,871,931
Proportionate share of the net pension liability $74,253,786 $142,323,127
Plan fiduciary net position as a percentage of the total pension liability 89.04%84.31%
Covered employee payroll $31,429,178 $31,106,414
Net pension liability as a percentage of covered employee payroll 236.26%457.54%
* - The fiscal year ended June 30, 2015 was the first year of implementation, therefore only two years are shown
Schedule of the City's Proportionate Share of the Net Pension Liability
94
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2016
2015
Contractually required contribution 17,802,358$
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
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
Schedule of Contributions
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
City of San Rafael, an Agent Multiple-Employer Defined Benefit Pension
95
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2016
2016
Contractually required contribution 19,339,577$
Contributions in Relation to the
Contractually required contribution 19,339,577
Contribution Deficiency/ (Excess)-$
Covered employee payroll 31,106,414$
Contributions as a percentage of
covered employee payroll 62.17%
Notes to Schedule
Valuation Date / Timing 6/30/2014 (for contributions made in FY2015-2016)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2015-16):
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 - 16 years / Extraordinary Actuarial Loss - 24 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 7.25%
Retirement Age
Healthy Mortality CalPERS 2014 Pre-Retirement Non-Industrial Death rates (plus Duty-Related Death rates for
Safety Members), with the 20-year static projection used by CalPERS replaced by
generational improvements from a base year of 2009 using Scale MP-2014
Disabled Mortality CalPERS 2014 Disability Mortality rates (Non-Industrial rates for Miscellaneous members
and Industrial Disability rates for Safety members), adjusted by 90% for Males and Females
(Miscellaneous and Safety) with the 20-year static projection used by CalPERS replaced by
generational improvements from a base year of 2009 using Scale MP-2014
Schedule of Contributions
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
City of San Rafael, an Agent Multiple-Employer Defined Benefit Pension
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
(Continued)
96
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.
97
CITY OF SAN RAFAEL
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2016
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and special assessments $59,322,000 $59,537,000 $60,217,831 $680,831
Licenses and permits 2,145,000 2,545,000 2,588,411 43,411
Fines and forfeitures 473,000 473,000 435,829 (37,171)
Use of money and properties 278,100 278,100 221,832 (56,268)
Intergovernmental 7,533,767 7,533,767 8,078,040 544,273
Charges for services 2,477,000 2,739,287 2,772,446 33,159
Other revenue 457,000 457,000 441,761 (15,239)
Total Revenues 72,685,867 73,563,154 74,756,150 1,192,996
EXPENDITURES
Current:
General government 10,301,227 10,093,917 10,501,341 (407,424)
Public safety 38,616,023 38,943,504 39,230,483 (286,979)
Public works and parks 10,999,226 10,999,225 10,468,421 530,804
Community development 3,751,622 3,914,771 3,670,108 244,663
Culture and recreation 2,945,072 3,005,021 2,963,125 41,896
Capital outlay 131,000 145,457 145,457
Capital improvement/special projects 15,988 15,992 12,389 3,603
Debt service:
Principal 75,172 75,172 75,172
Interest and fiscal charges 276,513 276,513 277,263 (750)
Total Expenditures 67,111,843 67,469,572 67,198,302 271,270
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 5,574,024 6,093,582 7,557,848 1,464,266
OTHER FINANCING SOURCES (USES)
Transfers in 1,357,349 1,110,810 1,110,809 (1)
Transfers out (2,560,000) (4,340,655) (4,340,655)
Total Other Financing Sources (Uses)(1,202,651) (3,229,845) (3,229,846)(1)
Net Change in Fund Balances $4,371,373 $2,863,737 4,328,002 $1,464,265
FUND BALANCES, BEGINNING OF YEAR 14,361,801
FUND BALANCES, END OF YEAR $18,689,803
98
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, 2016
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and properties $20,400 $20,400 $58,823 $38,423
Charges for services 10,000 10,000 355,394 345,394
Total Revenues 30,400 30,400 414,217 383,817
EXPENDITURES
Current:
General government 80,000 80,000 40,000 40,000
Capital improvement/special projects 2,031,947 657,378 1,374,569
Total Expenditures 80,000 2,111,947 697,378 1,414,569
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (49,600) (2,081,547) (283,161) 1,798,386
OTHER FINANCING SOURCES (USES)
Transfers out (1,516,900) (1,516,900)
Total Other Financing Sources (Uses) (1,516,900) (1,516,900)
Net Change in Fund Balances ($49,600) ($3,598,447) (1,800,061) $1,798,386
12,239,218
FUND BALANCES, END OF YEAR $10,439,157
FUND BALANCES, BEGINNING OF YEAR
99
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, 2016
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and properties $10,300 $10,300 $40,487 $30,187
Intergovernmental 2,834,525 5,421,754 3,465,316 (1,956,438)
Charges for services 1,043,600 1,043,600 1,294,882 251,282
Other revenue 187,504 187,504
Total Revenues 3,888,425 6,475,654 4,988,189 (1,487,465)
EXPENDITURES
Current:
General government 22,188 22,188 12,242 9,946
Public works and parks 100,000 3,352,254 2,748,775 603,479
Capital outlay 4,758,966 4,149,920 609,046
Capital improvement/special projects 4,891,000 6,248,548 141,834 6,106,714
Total Expenditures 5,013,188 14,381,956 7,052,771 7,329,185
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,124,763) (7,906,302) (2,064,582) 5,841,720
OTHER FINANCING SOURCES (USES)
Transfers in 1,516,900 1,516,900
Transfers out (400,000) (400,000) (400,000)
Total Other Financing Sources (Uses) (400,000) 1,116,900 1,116,900
Net Change in Fund Balances ($1,524,763) ($6,789,402) (947,682) $5,841,720
FUND BALANCES, BEGINNING OF YEAR 7,600,945
FUND BALANCES, END OF YEAR $6,653,263
100
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.
Business Improvement Fund – Established to account for activities held in Downtown San Rafael,
such as the Farmers Market.
Pt. San Pedro Maintenance Portion Special Revenue Fund – Established to account for ongoing
maintenance needs within the Pt. San Pedro assessment district.
103
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
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.
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.
San Rafael Essential Facilities Fund – Established to account for major capital improvements to
public safety facilities.
104
SPECIAL REVENUE FUNDS
Baypoint
Lagoons Household Loch Lomond
Recreation Assessment Hazmat Assessment
Revolving District Facility Childcare District
ASSETS
Cash and investments $429,342 $217,730 $221,563 $1,159,769 $690,827
Restricted cash and investments
Receivables:
Accounts 101,741 246,825
Taxes 190 117
Grants 22,253
Interest
Loans
Prepaids 1,695
Total Assets $531,083 $217,920 $468,388 $1,183,717 $690,944
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $192,148 $219,749 $29,635
Deposits payable
Developer deposits payable
Deferred revenue 312,556 238
Total Liabilities 504,704 219,749 29,873
Fund Balances:
Nonspendable 1,695
Restricted 26,379 $217,920 248,639 1,152,149 $690,944
Committed
Assigned
Total Fund Balances 26,379 217,920 248,639 1,153,844 690,944
Total Liabilities and Fund Balances $531,083 $217,920 $468,388 $1,183,717 $690,944
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2016
106
Library Public Development Parkland
Library Assessment Safety Stormwater Services Grants Dedication
$636,081 $698,422 $138,572 $1,482,892 $1,006,378 $365,892 $554,743
35,446 45,250 50,000
1,416
369,811
4,884
$636,081 $704,722 $174,018 $1,482,892 $1,051,628 $785,703 $554,743
$193 $463 $521,733 $3,926 $40,834 $63,020
44,925 130,565
1,500
193 463 521,733 50,351 171,399 63,020
4,884
635,888 699,375 $174,018 961,159 1,001,277 614,304 491,723
635,888 704,259 174,018 961,159 1,001,277 614,304 491,723
$636,081 $704,722 $174,018 $1,482,892 $1,051,628 $785,703 $554,743
(Continued)
SPECIAL REVENUE FUNDS
107
Low and
Emergency Pt. San Pedro Moderate
Medical Business Maintenance Income Measure A
Services Improvement Portion Housing Open Space
ASSETS
Cash and investments $902,947 $29,638 $171,516 $314,621 $187,597
Restricted cash and investments
Receivables:
Accounts 596,263
Taxes 548 213,653
Grants 139,373
Interest 196
Loans 615,066
Prepaids 2,870
Total Assets $1,641,453 $29,638 $172,064 $929,883 $401,250
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $76,926 $29,638 $5,393 $326 $38,994
Deposits payable
Developer deposits payable
Deferred revenue
Total Liabilities 76,926 29,638 5,393 326 38,994
Fund Balances:
Nonspendable 2,870
Restricted 1,561,657 166,671 929,557 362,256
Committed
Assigned
Total Fund Balances 1,564,527 166,671 929,557 362,256
Total Liabilities and Fund Balances $1,641,453 $29,638 $172,064 $929,883 $401,250
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2016
SPECIAL REVENUE FUNDS
108
DEBT SERVICE FUNDS
1997
Peacock Gap Mariposa Financing Park
Assessment Assessment Authority Capital Bedroom Assessment Capital
District District Revenue Bonds Improvement Tax Districts Projects
$2,875 $16,573 $147,304 $2,886,744 $58,740 $223,742 $32,869
902,419 76,675
973
$2,875 $16,573 $147,304 $3,790,136 $58,740 $300,417 $32,869
$23,584
23,584
$2,875 $16,573 $147,304 $58,740 $300,417
3,766,552 $32,869
2,875 16,573 147,304 3,766,552 58,740 300,417 32,869
$2,875 $16,573 $147,304 $3,790,136 $58,740 $300,417 $32,869
(Continued)
CAPITAL PROJECTS FUNDS
109
Total
San Rafael Non-Major
Open Essential Governmental
Space Facilities Funds
ASSETS
Cash and investments $123,994 $597,038 $13,298,409
Restricted cash and investments 979,094
Receivables:
Accounts 1,075,525
Taxes 215,924
Grants 531,437
Interest 1,169
Loans 615,066
Prepaids 9,449
Total Assets $123,994 $597,038 $16,726,073
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $4,811 $597,038 $1,848,411
Deposits payable 175,490
Developer deposits payable 1,500
Deferred revenue 312,794
Total Liabilities 4,811 597,038 2,338,195
Fund Balances:
Nonspendable 9,449
Restricted 10,459,825
Committed 3,799,421
Assigned 119,183 119,183
Total Fund Balances 119,183 14,387,878
Total Liabilities and Fund Balances $123,994 $597,038 $16,726,073
CAPITAL PROJECTS FUNDS
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2016
110
SPECIAL REVENUE FUNDS
Baypoint
Lagoons Household Loch Lomond
Recreation Assessment Hazmat Assessment
Revolving District Facility Childcare District
REVENUES
Taxes and special assessments $25,368 $15,606
Use of money and properties $46,124 1,150 $833 $6,027 3,618
Intergovernmental 17,413 329,123
Charges for services 2,665,294 149,206 3,954,126
Other revenue 10,729 1,014 12,196 2,756
Total Revenues 2,739,560 27,532 150,039 4,301,472 21,980
EXPENDITURES
Current:
General government
Public safety 160,953
Public works and parks 27,524 54
Culture and recreation 4,342,509 3,834,436
Capital outlay
Capital improvement/special projects 23,666 205
Total Expenditures 4,366,175 27,524 161,158 3,834,436 54
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,626,615)8 (11,119) 467,036 21,926
OTHER FINANCING SOURCES (USES)
Transfers in 1,625,000 100,000
Transfers out (325,000)
Total Other Financing Sources (Uses)1,625,000 (225,000)
Net Change in Fund Balances (1,615)8 (11,119) 242,036 21,926
Fund Balance, Beginning 27,994 217,912 259,758 911,808 669,018
Fund Balance, Ending $26,379 $217,920 $248,639 $1,153,844 $690,944
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2016
112
SPECIAL REVENUE FUNDS
Library Public Development Parkland
Library Assessment Safety Stormwater Services Grants Dedication
$864,158 $3,183
$3,338 1,826 $202 $8,717 $36,406 $2,134 5,261
1,000 86,334 1,027,238
6,322 2,105 847,293
8,752 82,839 4,847 1,000
19,412 865,984 171,480 860,857 36,406 1,029,372 9,444
34,524 670,964
258,295 575,523
823,489
19,433 818,907 22,821
1,125 792,066 282,212 1,061,260
20,558 818,907 258,295 1,615,555 34,524 1,528,699 1,084,081
(1,146)47,077 (86,815) (754,698)1,882 (499,327) (1,074,637)
90,000 91,250 150,000
90,000 91,250 150,000
(1,146)47,077 3,185 (754,698)1,882 (408,077) (924,637)
637,034 657,182 170,833 1,715,857 999,395 1,022,381 1,416,360
$635,888 $704,259 $174,018 $961,159 $1,001,277 $614,304 $491,723
(Continued)
113
Low and
Emergency Pt. San Pedro - Moderate
Medical Business Maintenance Income Measure A
Services Improvement Portion Housing Open Space
REVENUES
Taxes and special assessments $4,226,020 $73,076 $433,326
Use of money and properties 7,748 $1,619 1,474
Intergovernmental 275,772
Charges for services 2,319,676
Other revenue 270,335 69,382
Total Revenues 7,099,551 73,076 71,001 434,800
EXPENDITURES
Current:
General government $3,484 86,524
Public safety 6,722,300 123,612
Public works and parks 75,065 247,371
Culture and recreation 46,873
Capital outlay
Capital improvement/special projects
Total Expenditures 6,722,300 3,484 75,065 86,524 417,856
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 377,251 (3,484) (1,989) (15,523) 16,944
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances 377,251 (3,484) (1,989) (15,523) 16,944
Fund Balance, Beginning 1,187,276 3,484 168,660 945,080 345,312
Fund Balance, Ending $1,564,527 $166,671 $929,557 $362,256
SPECIAL REVENUE FUNDS
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2016
114
DEBT SERVICE FUNDS
1997
Peacock Gap Mariposa Financing Park
Assessment Assessment Authority Capital Bedroom Assessment Capital
District District Revenue Bonds Improvement Tax Districts Projects
$7,650
$780 $10,986 $164
404,767
2,110,514 $5,120
780 2,526,267 7,650 164 5,120
663,837
225
663,837 225
780 1,862,430 7,650 (61)5,120
1,000,000
1,000,000
780 2,862,430 7,650 (61)5,120
$2,875 $16,573 146,524 904,122 51,090 300,478 27,749
$2,875 $16,573 $147,304 $3,766,552 $58,740 $300,417 $32,869
(Continued)
CAPITAL PROJECTS FUNDS
115
CAPITAL PROJECTS FUNDS
Total
San Rafael Non-Major
Open Essentials Governmental
Space Facilities Funds
REVENUES
Taxes and special assessments $5,648,387
Use of money and properties $657 139,064
Intergovernmental 2,141,647
Charges for services 9,944,022
Other revenue 2,579,484
Total Revenues 657 20,452,604
EXPENDITURES
Current:
General government 795,496
Public safety 7,840,683
Public works and parks 1,173,503
Culture and recreation 9,084,979
Capital outlay 663,837
Capital improvement/special projects 4,811 $1,849,405 4,014,975
Total Expenditures 4,811 1,849,405 23,573,473
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (4,154) (1,849,405) (3,120,869)
OTHER FINANCING SOURCES (USES)
Transfers in 1,849,405 4,905,655
Transfers out (325,000)
Total Other Financing Sources (Uses) 1,849,405 4,580,655
Net Change in Fund Balances (4,154) 1,459,786
Fund Balance, Beginning 123,337 12,928,092
Fund Balance, Ending $119,183 $14,387,878
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2016
116
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, 2016
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 $25,400 $46,124 $20,724 280 1,150 870
Intergovernmental 17,332 17,413 81
Charges for services 2,803,830 2,665,294 (138,536)
Other revenue 3,750 10,729 6,979 1,014
Total Revenues 2,850,312 2,739,560 (110,752) 25,780 27,532 738
EXPENDITURES
Current:
General government
Public safety
Public works and parks 30,386 27,524 2,862
Culture and recreation 4,376,186 4,342,509 33,677
Capital outlay
Capital improvement/special projects 23,666 (23,666)
Total Expenditures 4,376,186 4,366,175 10,011 30,386 27,524 2,862
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,525,874) (1,626,615) (100,741) (4,606)8 4,614
OTHER FINANCING SOURCES (USES)
Transfers in 1,625,000 1,625,000
Transfers out
Total Other Financing Sources (Uses)1,625,000 1,625,000
FUND BALANCES, BEGINNING OF YEAR
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES $99,126 (1,615) ($100,741) ($4,606)8 $4,614
FUND BALANCES, BEGINNING OF YEAR 27,994 217,912
FUND BALANCES, END OF YEAR $26,379 $217,920
118
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)
$270 $833 $563 $700 $6,027 $5,327 800 3,618 2,818
315,751 329,123 13,372
149,724 149,206 (518) 4,007,700 3,954,126 (53,574)
1,000 (1,000) 12,196 12,196 2,756 2,756
150,994 150,039 (955) 4,324,151 4,301,472 (22,679) 16,410 21,980 5,570
169,167 160,953 8,214
37,836 54 37,782
3,990,698 3,834,436 156,262
20,000 20,000
1,000 205 795
170,167 161,158 9,009 4,010,698 3,834,436 176,262 37,836 54 37,782
(19,173) (11,119) 8,054 313,453 467,036 153,583 (21,426) 21,926 43,352
100,000 100,000
(325,000) (325,000)
(225,000) (225,000)
($19,173) (11,119) $8,054 $88,453 242,036 $153,583 ($21,426) 21,926 $43,352
259,758 911,808 669,018
$248,639 $1,153,844 $690,944
(Continued)
SPECIAL REVENUE FUNDS
119
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, 2016
Library Library Assessment
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $885,000 $864,158 ($20,842)
Licenses and permits
Fines and forfeitures
Use of money and properties $2,100 $3,338 $1,238 850 1,826 976
Intergovernmental 1,000 1,000
Charges for services 6,322 6,322
Other revenue 8,752 8,752
Total Revenues 2,100 19,412 17,312 885,850 865,984 (19,866)
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation 100,000 19,433 80,567 870,628 818,907 51,721
Capital outlay
Capital improvement/special projects 30,000 1,125 28,875
Total Expenditures 130,000 20,558 109,442 870,628 818,907 51,721
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (127,900) (1,146) 126,754 15,222 47,077 31,855
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 ($127,900) (1,146) $126,754 $15,222 47,077 $31,855
FUND BALANCES, BEGINNING OF YEAR 637,034 657,182
FUND BALANCES, END OF YEAR $635,888 $704,259
SPECIAL REVENUE FUNDS
120
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)
$100 $202 $102 2,700 $8,717 6,017 $31,600 $36,406 $4,806
70,000 86,334 16,334
2,105 2,105 841,800 847,293 5,493 4,800 (4,800)
75,000 82,839 7,839 5,000 4,847 (153)
145,100 171,480 26,380 854,500 860,857 6,357 36,400 36,406 6
117,000 34,524 82,476
261,834 258,295 3,539
719,956 823,489 (103,533)
340,000 340,000
1,947,145 792,066 1,155,079
261,834 258,295 3,539 2,667,101 1,615,555 1,051,546 457,000 34,524 422,476
(116,734) (86,815) 29,919 (1,812,601) (754,698) 1,057,903 (420,600) 1,882 422,482
90,000 90,000
90,000 90,000
($26,734) 3,185 $29,919 ($1,812,601) (754,698) $1,057,903 ($420,600) 1,882 $422,482
170,833 1,715,857 999,395
$174,018 $961,159 $1,001,277
(Continued)
Development Services
SPECIAL REVENUE FUNDS
121
Grants Parkland Dedication
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $3,183 $3,183
Licenses and permits
Fines and forfeitures $10,000 ($10,000)
Use of money and properties 1,280 $2,134 854 $1,200 5,261 4,061
Intergovernmental 929,843 1,027,238 97,395
Charges for services
Other revenue 1,000 1,000
Total Revenues 941,123 1,029,372 88,249 1,200 9,444 8,244
EXPENDITURES
Current:
General government 972,258 670,964 301,294
Public safety 579,450 575,523 3,927
Public works and parks
Culture and recreation 22,821 (22,821)
Capital outlay
Capital improvement/special projects 368,320 282,212 86,108 1,113,081 1,061,260 51,821
Total Expenditures 1,920,028 1,528,699 391,329 1,113,081 1,084,081 29,000
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (978,905) (499,327) 479,578 (1,111,881) (1,074,637) 37,244
OTHER FINANCING SOURCES (USES)
Transfers in 91,250 91,250 150,000 150,000
Transfers out
Total Other Financing Sources (Uses)91,250 91,250 150,000 150,000
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES ($887,655) (408,077) $479,578 ($961,881) (924,637) $37,244
FUND BALANCES, BEGINNING OF YEAR 1,022,381 1,416,360
FUND BALANCES, END OF YEAR $614,304 $491,723
FOR THE YEAR ENDED JUNE 30, 2016
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
CITY OF SAN RAFAEL
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
SPECIAL REVENUE FUNDS
122
Emergency Medical Services Business Improvement
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$4,213,999 $4,226,020 $12,021 $80,000 $73,076 ($6,924)
750 7,748 6,998 240 (240)
75,000 275,772 200,772
2,525,000 2,319,676 (205,324)
200,000 270,335 70,335
7,014,749 7,099,551 84,802 80,240 73,076 (7,164)
$3,484 $3,484
6,723,980 6,722,300 1,680
86,000 75,065 10,935
6,723,980 6,722,300 1,680 3,484 3,484 86,000 75,065 10,935
290,769 377,251 86,482 (3,484) (3,484) (5,760) (1,989) 3,771
$290,769 377,251 $86,482 ($3,484) (3,484) ($5,760) (1,989) $3,771
1,187,276 3,484 168,660
$1,564,527 $166,671
(Continued)
Pt. San Pedro-Maintenance Portion
SPECIAL REVENUE FUNDS
123
Low and Moderate Income Housing Measure A Open Space
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $400,000 $433,326 $33,326
Licenses and permits
Fines and forfeitures
Use of money and properties $800 $1,619 $819 210 1,474 1,264
Intergovernmental
Charges for services
Other revenue 70,000 69,382 (618)
Total Revenues 70,800 71,001 201 400,210 434,800 34,590
EXPENDITURES
Current:
General government 305,000 86,524 218,476
Public safety 185,030 123,612 61,418
Public works and parks 262,967 247,371 15,596
Culture and recreation 186,500 46,873 139,627
Capital outlay
Capital improvement/special projects
Total Expenditures 305,000 86,524 218,476 634,497 417,856 216,641
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (234,200) (15,523) 218,677 (234,287) 16,944 251,231
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 ($234,200) (15,523) $218,677 ($234,287) 16,944 $251,231
FUND BALANCES, BEGINNING OF YEAR 945,080 345,312
FUND BALANCES, END OF YEAR $929,557 $362,256
SPECIAL REVENUE FUNDS
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, 2016
124
Mariposa Assessment District 1997 Financing Authority Revenue Bonds
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$200 $780 $580
200 780 580
200 780 580
$200 780 $580
$16,573 146,524
$16,573 $147,304
DEBT SERVICE FUNDS
125
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.
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.
Sewer Maintenance Fund – Established to record both the cost of providing services to the San
Rafael Sanitation District and the charges for those services.
127
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
ASSETS
Current Assets:
Cash and investments $1,317,341 $1,188,389 $2,985,400 $1,089,185 $2,567,357
Accounts receivable 140
Loans receivable 10,938
Prepaids 1,083,036
Capital assets:
Nondepreciable assets 61,964
Depreciable assets, net 1,426,056 5,025,360 743,555
Total Assets 2,805,361 7,307,863 3,728,955 1,089,185 2,567,357
LIABILITIES
Current Liabilities:
Accounts payable 36,814 141,695 40,440 1,125
Claims payable - due in one year 746,913
Non-current Liabilities:
Claims payable - due in more than one year 1,796,742
OPEB liability
Total Liabilities 36,814 141,695 40,440 2,544,780
NET POSITION:
Net investment in capital assets 1,488,020 5,025,360 743,555
Unrestricted 1,280,527 2,282,503 2,843,705 1,048,745 22,577
Total Net Position $2,768,547 $7,307,863 $3,587,260 $1,048,745 $22,577
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2016
128
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total
$6,157,944 $133,913 $2,454,376 $629,786 $383,206 $359,399 $2,959 $19,269,255
75,980 13,487 89,607
10,938
1,083,036
61,964
7,194,971
6,157,944 133,913 2,454,376 705,766 383,206 359,399 16,446 27,709,771
7,450 3,705 3,775 21,475 16,446 272,925
1,382,212 2,129,125
4,662,699 6,459,441
9,101,000 9,101,000
6,052,361 3,705 9,104,775 21,475 16,446 17,962,491
7,256,935
105,583 130,208 2,454,376 (8,399,009) 383,206 337,924 2,490,345
$105,583 $130,208 $2,454,376 ($8,399,009) $383,206 $337,924 $9,747,280
129
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
OPERATING REVENUES
Charges for current services $680,000 $1,187,329 $2,059,008 $973,252 $2,098,700
Other operating revenues 26,748 67,041
Total Operating Revenues 680,000 1,187,329 2,059,008 1,000,000 2,165,741
OPERATING EXPENSES
Personnel 259,556 498,498 183,908
Insurance premiums and claims 1,961,833
Maintenance and repairs 187,144 149,568
General and administrative 1,144,984 165,892 112,203
Depreciation expense 29,704 927,216 124,378
Total Operating Expenses 216,848 1,076,784 1,528,918 664,390 2,257,944
Operating Income (Loss)463,152 110,545 530,090 335,610 (92,203)
NONOPERATING REVENUES (EXPENSES)
Investment income 5,720 8,393 14,777 12,933 9,364
Miscellaneous Income 41,405
Total Nonoperating
Revenues (Expenses)5,720 49,798 14,777 12,933 9,364
Net income (loss) before transfers 468,872 160,343 544,867 348,543 (82,839)
TRANSFERS OUT (150,000) (60,064)
Change in Net Position 318,872 100,279 544,867 348,543 (82,839)
NET POSITION, BEGINNING OF YEAR, AS ADJUSTED 2,449,675 7,207,584 3,042,393 700,202 105,416
NET POSITION, END OF YEAR $2,768,547 $7,307,863 $3,587,260 $1,048,745 $22,577
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2016
130
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total
$1,458,221 $401,767 $450,000 $2,491,431 $648,660 $594,519 $2,636,356 $15,679,243
6,868 937,622 5,970 1,044,249
1,458,221 408,635 450,000 3,429,053 648,660 594,519 2,642,326 16,723,492
57,994 102,970 2,568,149 3,671,075
1,572,557 404,044 3,170,806 7,109,240
336,712
171,739 3,342 661,627 349,610 89,926 2,699,323
1,081,298
1,802,290 404,044 3,342 3,170,806 661,627 452,580 2,658,075 14,897,648
(344,069) 4,591 446,658 258,247 (12,967) 141,939 (15,749) 1,825,844
34,237 963 1 1,063 1,622 89,073
41,405
34,237 963 1 1,063 1,622 130,478
(309,832) 5,554 446,658 258,248 (11,904) 143,561 (15,749) 1,956,322
(276,520)(15,747) (502,331)
(309,832) 5,554 170,138 258,248 (11,904) 143,561 (31,496) 1,453,991
415,415 124,654 2,284,238 (8,657,257) 395,110 194,363 31,496 8,293,289
$105,583 $130,208 $2,454,376 ($8,399,009) $383,206 $337,924 $9,747,280
131
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2016
Building Vehicle Equipment Employee
Maintenance Replacement Replacement Benefits
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $680,000 $1,242,302 $2,059,773 $973,252
Cash payments to suppliers for goods and services (404,459) (2,148,161) (1,310,633) (625,948)
Cash payments to employees for salaries and benefits (140,248) (6,323)
Other operating revenues 26,748
Payment to OPEB Trust
Cash Flows from Operating Activities 275,541 (905,859) 608,892 367,729
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund payments (150,000) (60,064)
Cash Flows from Noncapital
Financing Activities (150,000) (60,064)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (66,239) (1,259,101)(1)
Proceeds from sale of property 41,405
Cash Flows from Investing Activities (66,239) (1,217,696)(1)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 5,721 8,393 14,776 12,934
Cash Flows from Investing Activities 5,721 8,393 14,776 12,934
Net increase (decrease) in cash and cash equivalents 65,023 (2,175,226) 623,667 380,663
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,252,318 3,363,615 2,361,733 708,522
CASH AND CASH EQUIVALENTS, END OF YEAR $1,317,341 $1,188,389 $2,985,400 $1,089,185
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss) $463,152 $110,545 $530,090 $335,610
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation 29,704 927,216 124,378
Net change in assets and liabilities:
Accounts receivable 44,035
Loans receivable 10,938
Prepaids and deposits (1,083,036) 765
Net OPEB Liability
Accounts payable (217,315) (915,557) (46,341) 32,119
Claims payable
Net Cash Provided by (Used in) Operating Activities $275,541 ($905,859) $608,892 $367,729
132
OPEB/
Liability Workers' Dental Employee Employee Radio Telephone Sewer
Insurance Compensation Insurance Retirement Retirement Replacement Replacement Maintenance Total
$2,146,425 $1,458,221 $401,767 $450,000 $2,492,443 $648,660 $594,519 $2,622,869 $15,770,231
(1,040,207) (1,753,261) (403,952) (3,342) (3,167,030) (661,627) (457,569) (2,792,986) (14,769,175)
(146,571)
67,041 6,868 937,622 5,970 1,044,249
(63,000) (63,000)
1,173,259 (295,040) 4,683 446,658 200,035 (12,967) 136,950 (164,147) 1,835,734
(276,520) (15,746) (502,330)
(276,520)(15,746) (502,330)
(1,325,341)
41,405
(1,283,936)
9,367 34,238 963 1,063 1,621 89,076
9,367 34,238 963 1,063 1,621 89,076
1,182,626 (260,802) 5,646 170,138 200,035 (11,904) 138,571 (179,893) 138,544
1,384,731 6,418,746 128,267 2,284,238 429,751 395,110 220,828 182,852 19,130,711
$2,567,357 $6,157,944 $133,913 $2,454,376 $629,786 $383,206 $359,399 $2,959 $19,269,255
($92,203) ($344,069) $4,591 $446,658 $258,247 ($12,967) $141,939 ($15,749) $1,825,844
1,081,298
44,876 1,012 (13,487) 76,436
10,938
2,849 (1,079,422)
(63,000)(63,000)
1,122 (3,504)92 3,776 (4,989) (134,911) (1,285,508)
1,216,615 52,533 1,269,148
$1,173,259 ($295,040) $4,683 $446,658 $200,035 ($12,967) $136,950 ($164,147) $1,835,734
133
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.
135
CITY OF SAN RAFAEL
AGENCY FUNDS
COMBINING STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED JUNE 30, 2016
Balance Balance
June 30, 2015 Additions Deductions June 30, 2016
Pt. San Pedro Road Assessment District
Assets
Restricted cash and investments $294,330 $234,514 $237,733 $291,111
Taxes receivable 1,134 1,134 1,134 1,134
Total Assets $295,464 $235,648 $238,867 $292,245
Liabilities
Interest payable $28,726 $56,424 $57,453 $27,697
Due to bondholders 266,738 179,224 181,414 264,548
Total Liabilities $295,464 $235,648 $238,867 $292,245
Balance Balance
June 30, 2015 Additions Deductions June 30, 2016
Total Agency Fund
Assets
Restricted cash and investments $294,330 $234,514 $237,733 $291,111
Taxes receivable 1,134 1,134 1,134 1,134
Total Assets $295,464 $235,648 $238,867 $292,245
Liabilities
Interest payable $28,726 $56,424 $57,453 $27,697
Due to bondholders 266,738 179,224 181,414 264,548
Total Liabilities $295,464 $235,648 $238,867 $292,245
136
Canal Alliance Mural
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.
139
2007 2008 2009 2010
Governmental activities
Net investment in capital assets $171,849,149 $176,724,820 $178,744,119 $173,536,144
Restricted 31,124,935 26,848,900 25,721,231 26,150,254
Unrestricted 4,499,136 4,273,937 (700,985) (4,631,276)
Total governmental activities net position $207,473,220 $207,847,657 $203,764,365 $195,055,122
Business-type activities
Net investment in capital assets $9,717,501 $10,130,329 $11,243,637 $10,950,825
Unrestricted 2,226,838 2,471,117 1,936,958 2,017,354
Total business-type activities net position $11,944,339 $12,601,446 $13,180,595 $12,968,179
Primary government
Net investments in capital assets $181,566,650 $186,855,149 $189,987,756 $184,486,969
Restricted 31,124,935 26,848,900 25,721,231 26,150,254
Unrestricted 6,725,974 6,745,054 1,235,973 (2,613,922)
Total primary government net position $219,417,559 $220,449,103 $216,944,960 $208,023,301
(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.
CITY OF SAN RAFAEL
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
As of June 30
($90,000)
($40,000)
$10,000
$60,000
$110,000
$160,000
$210,000
$260,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Th
o
u
s
a
n
d
s
Net of Related Debt Restricted Unrestricted
140
2011 2012 2013 2014 2015 2016
$174,281,922 $192,361,245 $193,222,791 $190,286,275 $190,621,085 $193,707,175
21,322,937 24,693,205 35,780,412 37,339,141 33,389,224 31,286,725
(8,170,324) 10,652,263 11,151,318 (196,824) (82,336,534) (93,273,480)
$187,434,535 $227,706,713 $240,154,521 $227,428,592 $141,673,775 $131,720,420
$10,793,592 $10,650,558 $10,670,190 $10,786,591 $10,744,952 $10,958,058
1,948,447 2,495,889 2,501,498 2,049,957 (938,519)(1,136,050)
$12,742,039 $13,146,447 $13,171,688 $12,836,548 $9,806,433 $9,822,008
$185,075,514 $203,011,803 $203,892,981 $201,072,866 $201,366,037 $204,665,233
21,322,937 24,693,205 35,780,412 37,339,141 33,389,224 31,286,725
(6,221,877) 13,148,152 13,652,816 1,853,133 (83,275,053) (94,409,530)
$200,176,574 $240,853,160 $253,326,209 $240,265,140 $151,480,208 $141,542,428
141
2007 2008 2009 2010
Expenses
Governmental Activities:
General government $8,908,433 $8,621,079 $8,075,344 $8,396,759
Public safety 37,271,272 40,845,347 42,708,538 42,752,033
Public works and parks 20,998,749 22,105,367 23,036,676 17,401,923
Community development 4,384,408 5,811,866 5,759,171 6,738,873
Culture and recreation 9,729,485 10,300,230 11,505,896 11,139,225
Interest on long-term debt and fiscal charges 2,183,683 1,989,620 1,907,229 2,200,024
Total Governmental Activities Expenses 83,476,030 89,673,509 92,992,854 88,628,837
Business-Type Activities:
Parking services 3,110,254 3,282,235 3,563,235 4,016,198
Total Business-Type Activities Expenses 3,110,254 3,282,235 3,563,235 4,016,198
Total Primary Government Expenses $86,586,284 $92,955,744 $96,556,089 $92,645,035
Component Unit:
San Rafael Sanitation District $6,656,432 $8,090,636 $9,143,977 $9,087,354
Program Revenues
Governmental Activities:
Charges for services:
General government $1,512,814 $1,494,784 $1,738,685 $1,665,460
Public safety 5,279,785 5,562,072 5,906,445 6,308,912
Public works and parks 4,030,060 4,983,288 4,753,817 3,916,874
Community development 2,815,009 3,247,024 2,915,872 2,830,179
Culture and recreation 4,521,004 4,870,884 5,253,683 5,280,458
Operating grants and contributions 3,701,901 3,463,616 3,544,248 3,721,055
Capital grants and contributions 2,786,761 3,239,509 7,311,173 2,116,906
Total Government Activities Program Revenues 24,647,334 26,861,177 31,423,923 25,839,844
Business-Type Activities:
Charges for services:
Parking services 3,242,046 4,161,936 4,454,490 4,244,404
Total Business-Type Activities Program Revenues 3,242,046 4,161,936 4,454,490 4,244,404
Total Primary Government Program Revenues $27,889,380 $31,023,113 $35,878,413 $30,084,248
Component Unit:
Charges for services:
San Rafael Sanitation District $7,857,916 $9,366,305 $10,567,647 $11,559,549
Net (Expense)/Revenue
Governmental Activities ($58,828,696) ($62,812,332) ($61,568,931) ($62,788,993)
Business-Type Activities 131,792 879,701 891,255 228,206
Total Primary Government Net Expense ($58,696,904) ($61,932,631) ($60,677,676) ($62,560,787)
Component Unit Activities $1,201,484 $1,275,669 $1,423,670 $2,472,195
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30,
142
2011 2012 2013 2014 2015 2016
$8,269,846 $10,171,332 $10,202,530 $9,085,672 $9,099,858 $12,952,983
44,735,486 39,876,910 41,966,065 43,800,158 39,968,631 55,399,798
17,408,038 17,423,033 17,695,164 22,125,336 16,893,164 22,929,289
7,804,650 4,587,557 3,403,158 3,451,244 3,128,373 4,307,269
11,487,999 11,020,663 11,330,058 11,846,818 11,198,151 15,026,680
1,621,605 1,224,991 283,805 327,350 284,288 277,263
91,327,624 84,304,486 84,880,780 90,636,578 80,572,465 110,893,282
3,785,751 3,446,482 3,545,387 4,125,476 4,249,597 4,762,851
3,785,751 3,446,482 3,545,387 4,125,476 4,249,597 4,762,851
$95,113,375 $87,750,968 $88,426,167 $94,762,054 $84,822,062 $115,656,133
$9,677,630 $10,185,779 $10,169,082 $11,378,055 $11,375,239 $11,654,767
$1,636,542 $1,986,791 $2,655,749 $2,838,940 $1,379,523 $526,495
6,167,925 7,122,396 6,478,321 6,014,034 4,966,251 4,939,658
4,141,103 5,214,267 7,837,472 6,101,460 3,078,267 5,157,289
2,676,663 3,255,367 3,984,204 3,279,251 3,796,684 4,004,178
5,362,497 5,873,147 6,075,129 6,417,003 6,537,646 6,683,059
3,651,902 3,158,281 4,085,073 4,698,142 4,185,450 4,678,338
1,857,670 2,705,696 5,876,993 762,719 1,308,027 1,470,953
25,494,302 29,315,945 36,992,941 30,111,549 25,251,848 27,459,970
4,011,333 3,901,175 3,990,706 4,485,394 5,173,557 5,212,181
4,011,333 3,901,175 3,990,706 4,485,394 5,173,557 5,212,181
$29,505,635 $33,217,120 $40,983,647 $34,596,943 $30,425,405 $32,672,151
$12,223,779 $12,368,889 $12,413,123 $13,732,496 $14,629,758 $15,414,530
($65,833,322) ($54,988,541) ($47,887,839) ($60,525,029) ($55,320,617) ($83,433,312)
225,582 454,693 445,319 359,918 923,960 449,330
($65,607,740) ($54,533,848) ($47,442,520) ($60,165,111) ($54,396,657) ($82,983,982)
$2,546,149 $2,183,110 $2,244,041 $2,354,441 $3,254,519 $3,862,215
143
2007 2008 2009 2010
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property $20,360,475 $22,195,606 $21,978,859 $21,684,131
Sales 24,484,356 25,764,457 21,970,262 19,055,124
Special assessments 2,998,925 3,503,555
Paramedic 3,210,317 3,489,494
Motor vehicles 331,620 257,320 197,989 171,518
Transient occupancy 1,678,912 1,558,243
Franchise 2,941,149 2,868,332
Business license 2,405,934 2,317,664
Other 8,830,955 9,242,241 1,561,835 1,411,583
Investment earnings 1,669,181 1,583,056 717,968 302,180
Gain (Loss) on disposal of assets 221,791
Miscellaneous 491,488 296,454 461,224 541,390
Special item - Court fines repayment (1,133,458)
Transfers 212,170 344,080 361,190 458,300
Total Government Activities 58,245,712 63,186,769 57,485,639 54,079,750
Business-Type Activities:
Investment earnings 91,623 121,486 49,084 17,678
Aid from other government agencies
Transfers (212,170) (344,080) (361,190) (458,300)
Total Business-Type Activities (120,547) (222,594) (312,106) (440,622)
Total Primary Government $58,125,165 $62,964,175 $57,173,533 $53,639,128
Component Unit:
San Rafael Sanitation District
Property Taxes $755,763 $803,071 $855,511 $823,187
Investment earnings 367,887 341,032 206,752 93,274
Miscellaneous 3,546 3,540
Aid from other governmental agencies 340,642 577,860 381,144 415,391
Total Component Unit $1,464,292 $1,725,509 $1,446,947 $1,331,852
Special Item
Governmental Activities
Component Unit Activities
Change in Net Position
Governmental Activities ($582,984) $374,437 ($4,083,292) ($8,709,243)
Business-Type Activities 11,245 657,107 579,149 (212,416)
Total Primary Government ($571,739) $1,031,544 ($3,504,143) ($8,921,659)
Change in Net Position
Component Unit Activities $2,665,776 $3,001,178 $2,870,617 $3,804,047
Fiscal Year Ended June 30,
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
144
2011 2012 2013 2014 2015 2016
$21,632,733 $20,107,637 $17,317,772 $18,439,619 $19,039,443 $19,998,567
21,623,445 22,355,749 24,262,282 27,758,971 32,269,915 34,348,089
3,661,064 3,807,545 3,804,985 3,816,070 3,820,240 4,226,020
297,425
1,644,262 1,866,575 2,185,287 2,332,277 2,661,878 3,063,263
2,990,539 3,076,094 3,331,160 3,260,958 3,272,390 3,418,277
2,296,460 2,332,146 2,507,785 2,588,728 2,670,071 2,824,664
1,930,531 3,574,918 2,929,915 3,452,171 3,295,751 3,465,193
176,502 205,413 991,762 184,171 216,066 300,091
1,496,174 542,816 2,580,882 1,140,743 2,254,901 1,387,315
463,600 57,960 423,817 449,917 432,630 448,478
58,212,735 57,926,853 60,335,647 63,423,625 69,933,285 73,479,957
11,878 7,675 3,739 4,375 7,008 14,723
(463,600)(57,960) (423,817) (449,917) (432,630) (448,478)
(451,722)(50,285) (420,078) (445,542) (425,622) (433,755)
$57,761,013 $57,876,568 $59,915,569 $62,978,083 $69,507,663 $73,046,202
$1,214,519 $1,192,566 $1,177,469 $1,345,018 $1,319,852 $1,367,172
59,265 38,191 25,591 151,729 171,804 46,225
6,499 9,613 56,589 22,125 35,090
$1,280,283 $1,240,370 $1,259,649 $1,518,872 $1,526,746 $1,413,397
$4,462,815
($4,462,815)
($7,620,587) $2,938,312 $12,447,808 $2,898,596 $19,075,483 ($9,953,355)
(226,140) 404,408 25,241 (85,624) 498,338 15,575
($7,846,727) $3,342,720 $12,473,049 $2,812,972 $19,573,821 ($9,937,780)
$3,826,432 $3,423,480 $3,503,690 $3,873,313 $318,450 $5,275,612
145
As of June 30
2007 2008 2009 2010
General Fund
Pre-GASB 54 Presentation:
Reserved $905,068 $2,196,153 $2,225,775 $1,763,622
Unreserved 5,016,929 4,022,612 1,670,455 5,038,173
GASB 54 Presentation:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General Fund $5,921,997 $6,218,765 $3,896,230 $6,801,795
All Other Governmental Funds
Pre-GASB 54 Presentation:
Reserved $20,773,760 $17,599,142 $16,680,568 $15,352,723
Unreserved, reported in:
Special Revenue Funds 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 $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, 2014-2015 and 2015-2016.
Financial data shown for preceding years were not adjusted for the presentation.
CITY SAN RAFAEL
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
($5,000)
$5,000
$15,000
$25,000
$35,000
$45,000
$55,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Th
o
u
s
a
n
d
s
Total Fund Balance
146
2011 2012 2013 2014 2015 2016 (a)
$589,833 $527,509 $527,235 $503,338 $399,299 $476,316
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 16,440,910
1,588,500 1,772,577
$6,785,511 $2,771,462 $3,804,787 $7,369,487 $14,361,801 $18,689,803
$377,180 $788,031 $51,521 $8,719 $2,359 $9,449
19,289,367 16,856,959 20,769,546 30,185,064 31,742,184 27,552,245
3,864,322 5,135,257 8,447,495 2,185,825 931,871 3,799,421
4,124,029 5,283,559 6,511,850 4,959,533 712,810 119,183
$27,654,898 $28,063,806 $35,780,412 $37,339,141 $33,389,224 $31,480,298
147
2007 2008 2009 2010 2011
Revenues
Taxes and special assessments $52,472,246 $56,129,195 $51,019,143 $47,678,541 $51,448,130
Licenses and permits 1,157,981 1,489,748 1,472,913 1,518,819 1,416,772
Fines and forfeitures 515,528 797,081 660,338 787,411 862,820
Use of money and properties 1,744,688 1,584,508 847,120 433,874 380,720
Intergovernmental 12,760,496 12,081,968 17,518,670 13,001,703 11,864,127
Charges for services 13,504,621 15,607,460 16,384,265 15,787,325 15,888,750
Other revenue 1,468,743 815,704 759,320 716,760 1,026,845
Total Revenues 83,624,303 88,505,664 88,661,769 79,924,433 82,888,164
Expenditures
Current:
General government 8,188,999 8,288,170 8,059,526 7,997,067 6,863,142
Public safety 36,264,321 40,299,862 41,209,972 39,574,091 40,967,352
Public works and parks 11,972,537 13,641,665 12,926,646 10,731,669 10,666,176
Community development 4,319,042 5,786,661 5,572,079 4,398,594 4,527,351
Culture and recreation 9,005,370 9,820,365 10,233,361 9,605,684 10,067,822
Capital outlay 6,716,630 6,243,517 5,048,044 1,890,559 1,745,483
Capital improvement / special projects 1,189,613 5,124,091 6,606,857 3,436,608 6,240,861
Debt service:
Capitalized lease obligation
Principal 2,287,255 2,504,370 2,714,358 2,804,258 2,530,338
Interest and fiscal charges 1,829,091 1,776,354 1,683,240 1,979,372 1,448,910
Total Expenditures 81,772,858 93,485,055 94,054,083 82,417,902 85,057,435
Excess (deficiency) of revenues over
(under) expenditures 1,851,445 (4,979,391) (5,392,314) (2,493,469) (2,169,271)
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 6,812,260 6,353,216 8,972,495 7,494,560 5,806,834
Transfers (out)(6,958,046) (6,329,136) (6,614,806) (6,411,150) (4,657,326)
Total other financing sources (uses)172,214 24,080 2,357,689 2,688,386 1,149,508
Extraordinary Item
Transfer to Successor Agency
Net Change in fund balances $2,023,659 ($4,955,311) ($3,034,625)$194,917 ($1,019,763)
Debt service as a percentage of
noncapital expenditures 5.6%5.2%5.3%6.2%5.2%
CITY OF SAN RAFAEL
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
148
2012 2013 2014 2015 2016
$51,395,116 $51,549,306 $56,686,142 $61,804,228 $65,866,218
1,648,890 1,929,387 1,934,755 2,456,820 2,588,411
801,758 734,005 669,553 556,076 435,829
315,561 325,043 363,089 444,757 460,206
10,537,396 11,869,889 11,953,308 13,233,503 13,685,003
19,649,433 23,575,374 19,949,333 15,346,794 14,366,744
870,957 4,092,411 2,045,407 1,777,003 3,208,749
85,219,111 94,075,415 93,601,587 95,619,181 100,611,160
8,783,873 10,529,480 8,678,833 10,203,687 11,349,079
39,311,551 41,377,062 41,900,762 43,954,515 47,071,166
11,518,822 12,002,448 13,697,957 12,758,643 14,390,699
3,755,504 2,961,275 3,296,375 3,416,859 3,670,108
10,345,673 10,591,057 11,106,367 11,616,777 12,048,104
1,312,383 4,009,454 2,154,900 4,498,924 4,813,757
3,604,171 5,284,720 7,168,776 2,186,986 4,826,576
2,518,320 208,642 75,172 75,172
735,221 283,805 327,350 284,288 277,263
81,885,518 87,039,301 88,539,962 88,995,851 98,521,924
3,333,593 7,036,114 5,061,625 6,623,330 2,089,236
568,481
4,539,646 8,425,474 3,655,302 4,348,149 7,533,364
(4,864,293) (6,711,657) (3,053,865) (3,051,499) (6,582,555)
(324,647) 1,713,817 1,169,918 1,296,650 950,809
(2,352,584)
$3,008,946 $6,397,347 $6,231,543 $7,919,980 $3,040,045
4.2% 0.4% 0.7% 0.4% 0.4%
149
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)
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%
2016 8,511,358,216 2,221,843,976 263,830,302 108,982,883 11,106,015,377 400,942,059 11,506,957,436 11,506,957,436 0.11672%
(a)
(b)
Data Source: Marin County Assessor 2006/07 - 2015/16 Combined Tax Rolls
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
$14,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Mi
l
l
i
o
n
s
Unsecured Property Secured Property
150
Fiscal School Misc. Special
Year City
County (1)Districts Districts Total
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
2016 0.154 0.295 0.7846 0.0695 1.3028
Notes:
(1) Like other cities, San Rafael includes several property tax rate areas with different rates. A mean average is indicated.
Data Source: Marin County Assessors Office 2006/07 - 2015/16 Tax Rate Tables
CITY OF SAN RAFAEL
PROPERTY TAX RATES
ALL OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
151
CITY OF SAN RAFAEL
PRINCIPAL PROPERTY TAX PAYERS
CURRENT FY 2015/16 AND FY 2006/07
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
California Corporate Center ACQ LLC 138,587,517 1.20%
Northgate Mall Associates 137,532,142 1.20% 117,666,836 1.31%
Sutter Health 51,869,712 0.45%
MPB Associates LLC 51,207,486 0.45%
Regency Center II Associates LP 44,763,767 0.39% 39,356,320 0.44%
Northbay Properties II 44,273,257 0.38% 32,555,995 0.36%
Bay Apartment Communities Inc 42,312,980 0.37% 33,174,554 0.37%
Barbara Fasken 1995 Trust Etal 41,837,131 0.36%
Marin Sanitary Service 40,629,687 0.35% 31,353,188 0.35%
33 North Associates LLC 38,331,984 0.33%
Hines San Rafael LLC 75,556,120 0.84%
San Rafael Associates NF 59,475,000 0.66%
4040 Civic Center LLC 35,707,914 0.40%
Rafael Town Center Investors LLC 31,305,752 0.35%
BIT Holdings Forty Five Inc 30,630,633 0.34%
Subtotal $631,345,663 5.49% $486,782,312 5.42%
Total Net Assessed Valuation:
Fiscal Year 2015-2016 $11,506,957,436
Fiscal Year 2006-2007 $8,987,234,307
FY 2015-2016 FY 2006-2007
152
Delinquent taxes
Fiscal as a Percent of
Year Rate Levies Allocations Collections ApportionmentsDelinquencies Allocations
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%
2016 1.00 (2)23,636,093 (2)23,636,093 (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.
CITY OF SAN RAFAEL
PROPERTY TAX LEVIES AND COLLECTIONS (1)
LAST TEN FISCAL YEARS
$6
$9
$12
$16
$19
$22
$25
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Mi
l
l
i
o
n
s
Allocations
Apportionments
153
CITY OF SAN RAFAEL
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
RDA Tax Financing Court Fine Capitalized Pension
Fiscal Allocation Authority Note Promissory Lease Obligation
Year Bonds Revenue Bonds Payable Note Obligations Bonds Total
2007 39,217,501$ 950,000$ 169,000$ 1,029,717$ 596,927$ -$ 41,963,145$
2008 37,537,161 780,000 169,000 816,119 401,155 - 39,703,435
2009 35,793,692 455,000 169,000 594,100 198,816 - 37,210,608
2010 35,355,988 - 169,000 363,328 135,330 - 36,023,646
2011 33,298,499 - 169,000 124,222 69,098 4,490,000 38,150,819
2012 - - 169,000 - - 4,490,000 4,659,000
2013 - - 169,000 - - 4,490,000 4,659,000
2014 - - 528,839 - - 4,490,000 5,018,839
2015 - - 453,667 - - 4,490,000 4,943,667
2016 - - 378,495 - - 4,490,000 4,868,495
Parking Total Percentage
Fiscal Services Note Primary of Personal Per
Year Bonds Payable Total Government Income (a) Capita (a)
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
2016 5,692,853 48,204 5,741,057 10,609,552 n/a 175.13
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.
Data 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
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Mi
l
l
i
o
n
s
Total Governmental
Total Business
154
CITY OF SAN RAFAEL
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 2016
2015-16 Assessed Valuation:$11,506,957,436
Redevelopment Incremental Valuation:2,483,249,776
Adjusted Assessed Valuation:$9,023,707,660
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2016 % Applicable (1) Debt 6/30/2016
Marin Community College District $218,950,000 17.310% 37,900,245
San Rafael High School District 74,565,315 78.145% 58,269,065
Tamalpais Union High School District 124,435,000 0.079%98,304
Dixie School District 19,825,810 65.998% 13,084,638
Ross School District 19,366,993 1.509% 292,248
Ross Valley School District 46,120,476 0.013%5,996
San Rafael School District 72,551,224 83.496% 60,577,370
Marin Healthcare District 170,000,000 20.870% 35,479,000
Marin Emergency Radio Authority Parcel Tax Obligations 33,000,000 17.282% 5,703,060
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $211,409,926
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Marin County Certificates of Participation $92,087,468 17.282% $15,914,556
Marin County Pension Obligation Bonds 99,675,000 17.282% 17,225,834
Marin County Transit District General Fund Obligations 131,511 17.282%22,728
Marin Municipal Water District General Fund Obligations 106,992 22.091%23,636
Marin Community College District Certification of Participation 2,515,834 17.310% 435,491
San Rafael School District Certificates of Participation 3,530,000 83.496% 2,947,409
City of San Rafael General Fund Obligations 8,004,172 100.000% 8,004,172 (2)
City of San Rafael Pension Obligations 4,490,000 100.000% 4,490,000
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $49,063,825
Less: City of San Rafael lease revenue bonds supported by parking revenues 5,741,057
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 43,322,768
OVERLAPPING TAX INCREMENT DEBT (Successor Agency 17,354,004 100.000% 17,354,004
TOTAL GROSS DIRECT DEBT $12,494,172
TOTAL NET DIRECT DEBT $6,753,115
TOTAL OVERLAPPING DEBT $265,333,584
GROSS COMBINED TOTAL DEBT $277,827,756 (3)
NET COMBINED TOTAL DEBT $272,086,699
(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 $426,699 PG&E notes.
Ratios to 2015-16 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.84%
Total Gross Direct Debt ($13,009,376) 0.11%
Total Net Direct Debt ($7,102,228) 0.06%
Gross Combined Total Debt 2.41%
Net Combined Total Debt 2.37%
Ratios to Redevelopment Incremental Valuation ($2,483,249,776
Total Overlapping Tax Increment Debt 0.70%
Data Source: MuniServices
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-
bonded capital lease obligations.
155
ASSESSED VALUATION:$11,506,957,436
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)431,510,904
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:4,868,495
LEGAL BONDED DEBT MARGIN $426,642,409
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2007 337,021,287$ 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%
2016 431,510,904 4,868,495 426,642,409 1.14%
NOTE: (a)
Source: City of San Rafael's Finance Department
CITY OF SAN RAFAEL
COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2016
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
156
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
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
2016 5,226,904 3,739,321 1,487,583 250,000 199,613 449,613 3.31
Notes: On March 26, 2003, the City Financing Authority issued lease revenue bonds for the design and construction of a new parking facility.
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
Data Source: San Rafael Finance Department Revenue and Expenditure Status Reports
0.00
1.00
2.00
3.00
4.00
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Coverage
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
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 2,699,436 44,558 3.70% 258,972 22.87%
2016 60,582 n/a n/a n/a 262,274 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) 2007-2009 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%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Unemployment Rate (%)
22.00%
22.50%
23.00%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
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)
158
CITY OF SAN RAFAEL
PRINCIPAL EMPLOYERS
FISCAL YEAR 2015-2016
LAST EIGHT CALENDAR YEARS
Employer # (A) # (A) # (A) # (A) # (A) # (A) # (A) # (A)
Autodesk, Inc. 748 2.28% 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%
Kaiser Permanente 662 2.02% 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%
San Rafael Elementary/High Schools Dist 650 1.98% 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 577 1.76% 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 485 1.48% 422 1.29% 354 1.14% 347 1.13% 346 1.28% 336 1.24% 370 1.38% 508 1.83%
Bradley Real Estate 435 1.33% 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 326 0.99% 306 0.94% 308 0.99% 334 1.09% - - - - - - - -
FICO 300 0.91%
Fair Issac Corp - - 300 0.92% 300 0.96% - - - - - - - - 350 1.26%
Community Action Marin 220 0.67% 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 225 0.69% - - - - - - - - - - 287 1.07% - -
Bernard Osher Marin JCC 200 0.61% - - - - - - - - - - - - - -
Buckelew Programs 186 0.57% - - - - - - - - - - - - - -
Ghilotti Bros.150 0.46%240 0.86%
Golden Gate Bridge Highway & Transp. Dist.828 2.98%
YMCA 348 1.25%
San Rafael City High School District 250 0.90%
Urban Painting, Inc.150 0.46% - - - - - - - - - - - - - -
Totals 5,314 16.20% 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 FTE employees in Marin locations
(A)Percentage of total employment
Note: From the EDD website, it shows that the Total 2016 Employment in the City of San Rafael was 32,800 of which it is used as the denominator for the 2016 percentages are calculated.
*The number of total employment for the City is available for the last eight fiscal years only.
Data Sources: State of California, Employment Development Department, Labor Market Information Division & North Bay Business Journal (Annual Book of Lists)
2009*2014* 2013* 2012* 2011* 2010*
2015*2016*
159
LAST TEN FISCAL YEARS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Function
General Government 59.38 59.88 58.88 56.88 54.35 55.23 53.23 55.11 58.11 60.61
Public Safety 189.00 186.00 183.00 165.00 166.00 162.00 163.00 168.00 171.75 175.75 *
Public Works and Parks 76.80 78.80 78.80 60.80 62.80 62.00 60.00 61.00 62.00 62.00
Community Development 31.00 34.50 34.50 26.75 26.75 18.25 18.25 17.80 17.80 19.80
Culture and Recreation 80.22 85.90 85.90 83.49 89.82 81.56 80.76 83.66 84.23 84.25
Total 436.40 445.08 441.08 392.92 399.72 379.04 375.24 385.57 393.89 402.41
*Includes 2 police officer positions who are on extended leave of absence, without pay
Data 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
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
FT
E
'
s
General Government Public Safety Public Works and Parks Community Development Culture and Recreation
160
2007 2008 2009 2010
Function/Program
Public safety:
Fire:
Inspection permit issued 143 217 196 307
Police:
Police calls for service 43,480 43,488 42,227 42,227
Law violations:
Part I crimes 2,557 2,314 2,352 2,352
Physical arrests (adult and juvenile) 3,809 4,182 4,487 4,487
Traffic violations 5,197 9,241 5,777 5,777
Parking violations 36,228 42,481 44,913 42,806
Public works
Street resurfacing (miles) (Eng Div) N/A 4.95 2.77 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 9,524
Items in collection (thousands)
Library:
Items in collection (thousands) 124.46 N/A 124.40 151.88
Total items borrowed (thousands) 359.41 N/A N/A 371.12
Note: N/A denotes information not available.
CITY OF SAN RAFAEL
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
162
2011 2012 2013 2014 2015 2016
294 282 307 261 282 198
39,512 39,537 42,707 51,261 55,805 57,026
2,180 2,101 2,523 2,289 2,533 2,523
3,102 2,981 2,951 3,227 3,450 3,453
8,190 4,048 3,448 4,498 4,168 3,252
34,590 32,492 30,881 38,814 36,398 34,803
7.40 N/A 2.70 9.00 6.40 6.76
N/A N/A N/A N/A N/A N/A
10,809 178.9 7,500 10,700 11,000 7,195
9,000 12,075 7,082 9,857 10,023 12,725
158.30 159.18 125.92 168.62 127.76 227.89
435.66 366.46 392.23 478.96 443.64 469.79
163
2007 2008 2009 2010
Function/Program
Public safety:
Fire stations 6 6 6 6
Police stations 1 1 1 1
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 20 20 20
City parks acreage 41 42 42 42
Playgrounds 13 14 14 14
City trails 20 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 1122
Wastewater:
Miles of sanitary sewers 179 179 179 179
Data Source: City of San Rafael's Finance Department
CITY OF SAN RAFAEL
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
164
2011 2012 2013 2014 2015 2016
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
179 179 179 145 145 145
165