HomeMy WebLinkAboutFY2016-17 CAFR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDING JUNE 30, 2017
San Rafael Corporate Center
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2017
City of San Rafael, California
1400 Fifth Avenue
San Rafael, California 94901
Prepared by the Finance Department of the City of San Rafael
City Hall
INTRODUCTORY
SECTION
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2017
Table of Contents
INTRODUCTORY SECTION
TABLE OF CONTENTS
Letter of Transmittal .................................................................................................................................... v
Mission Statement and Vision Statement .................................................................................................. xii
City Council and Staff .............................................................................................................................. xiii
Location Map ............................................................................................................................................ xiv
Organizational Chart .................................................................................................................................. xv
Certificate of Achievement for Excellence in Financial Reporting .......................................................... xvi
FINANCIAL SECTION
Independent Auditor's Report .................................................................................................................. 1
Management’s Discussion and Analysis .................................................................................................. 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ............................................................................................................. 23
Statement of Activities .................................................................................................................. 24
Fund Financial Statements:
Major Governmental Funds:
Balance Sheet ............................................................................................................................ 28
Balance Sheet - Reconciliation of Governmental Fund Balances to
Net Position of Governmental Activities .............................................................................. 30
Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 31
Reconciliation of the Net Change in Fund Balances - Total Governmental
Funds with the Statement of Activities ................................................................................. 32
Proprietary Funds:
Statement of Net Position .......................................................................................................... 35
Statement of Revenues, Expenses, and Changes in Fund Net Position .................................... 36
Statement of Cash Flows ........................................................................................................... 37
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CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2017
Table of Contents
FINANCIAL SECTION (Continued)
Fiduciary Funds:
Statement of Fiduciary Net Position ......................................................................................... 41
Statement of Changes in Fiduciary Net Position ....................................................................... 42
Notes to Basic Financial Statements .................................................................................................. 43
Required Supplementary Information:
Schedule of the City’s Proportionate Share of the Net Pension Liability ..................................... 99
Schedule of Contributions – Pension .......................................................................................... 100
Schedule of Changes in Net OPEB Liability and Related Ratio ................................................ 103
Schedule of Contributions – OPEB ............................................................................................ 104
Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual -
Budgetary Basis
General Fund ........................................................................................................................... 106
Traffic and Housing Mitigation Special Revenue Fund .......................................................... 107
Gas Tax Special Revenue Fund ............................................................................................... 108
Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
Budgetary Basis
Essential Facilities Capital Projects Fund ................................................................................ 110
Non-major Governmental Funds:
Combining Balance Sheets ......................................................................................................... 114
Combining Statements of Revenues, Expenditures, and Changes
in Fund Balance ................................................................................................................... 120
Budgeted Non-major Governmental Funds:
Combining Schedules of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual ...................................................................... 126
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CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2017
Table of Contents
FINANCIAL SECTION (Continued)
Internal Service Funds:
Combining Statements of Net Position ....................................................................................... 136
Combining Statements of Revenues, Expenses and Changes in Fund Net Position ................... 138
Combining Statements of Cash Flows ........................................................................................ 140
Agency Funds:
Combining Statements of Changes in Assets and Liabilities ...................................................... 144
STATISTICAL SECTION
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ....................................................................... 148
Changes in Net Position – Last Ten Fiscal Years ............................................................................. 150
Fund Balances of Governmental Funds – Last Ten Fiscal Years ..................................................... 154
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .................................... 156
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ...................... 158
Property Tax Rates - All Overlapping Governments– Last Ten Fiscal Years .................................. 159
Principal Property Tax Payers – Current Year and Nine Years Ago ................................................ 160
Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................... 161
Debt Capacity:
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................... 162
Computation of Direct and Overlapping Debt .................................................................................. 163
Computation of Legal Bonded Debt Margin .................................................................................... 164
Revenue Bond Coverage Parking Facility – Last Ten Fiscal Years ................................................. 165
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CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2017
Table of Contents
STATISTICAL SECTION (Continued)
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years ...................................................... 166
Principal Employers – Last Nine Calendar Years ............................................................................ 167
Operating Information:
Full-Time Equivalent City Government Employees by Function
– Last Ten Fiscal Years ................................................................................................................. 168
Operating Indicators by Function/Program – Last Ten Fiscal Years ................................................ 170
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ............................................ 172
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October 12, 2017
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, 2017, 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, 2017.
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 i 1400 FIFTH AVENUE. SAN RAFAEL, CALIFORNIA 94901 CITYOFSANRAFAEL.ORG
Gary 0. Phillips, Mayor • Maribeth Bushey, Vice Mayor • Kate Colin, Councilmember • John Gamblin, Councilmember • Andrew Cuyugan McCullough, Councilmember 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, financial, cultural and civic hub of Marin County. Abundant recreational
facilities are available in and around the City. The City's park and recreational resources
include 19 city parks, 393 acres of developed parkland, city and county open space, and
China Camp State Park. San Rafael is close to other attractions, including the Golden Gate
Bridge, Muir Woods, Point Reyes National Seashore, Mount Tamalpais, multiple state
parks, San Francisco, Oakland and the Sonoma and Napa wine country.
In 1874, the City of San Rafael became the first incorporated city in the county, later
becoming a charter city in 1913 by vote of City residents. The City Council comprises five
members; four are elected at-large to four-year terms while the mayor is elected separately
to a four-year term. The City's land area is 22 square miles, including seventeen square
miles of land and 5 of water and tidelands. San Rafael's population on January 1, 2017 was
61,187, an increase ofO.l% from the January 1, 2016 population of 60,582 .
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 now one of 14 state Cultural Arts Districts. San Rafael is also the heart of the
County's cultural activities with venues such as the Marin Center, which presents
numerous ballets, concerts, speaking engagements as well as the award winning Marin
County Fair; the Falkirk Cultural Center, providing art exhibits and children's
programming; the-Christopher B. Smith Film Center, and a host of other diverse dining and
entertainment venues. The City is also home to the distinguished Dominican University of
California.
The City of San Rafael provides a full range of municipal services required by statute or
charter, namely: police and fire protection, construction and maintenance of streets, parks,
storm drains and other infrastructure, recreation, childcare, permits, planning, code
enforcement, and a library system serving two locations. The City performed certain
infrastructure construction and economic development activities through a separate
Redevelopment Agency until its dissolution on February 1, 2012. The City of San Rafael
accepted the role of Successor Agency to the Redevelopment Agency per Council action
on January 3, 2012, and now conducts its economic development activities with funding
from its General Fund.
The City and California Municipal Finance Authority compose the San Rafael Joint
Powers Financing Authority, originally established by the City and former Redevelopment
CITY OF SAN RAFAEL 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 CITYOFSANRAFAEL.ORG
Gary 0. Phillips, Mayor • Maribeth Bushey, Vice Mayor • Kate Colin, Councilmember • John Gamblin, Councilmember ·Andrew Cuyugan McCullough, Councilmember vi
Agency for the purpose of financing redevelopment and other projects. The San Rafael
Sanitation District is a discretely presented component unit of the City of San Rafael and is
presented independent of City financial information. For a further explanation of these
entities, refer to Note 1-Summary of Significant Accounting Policies in the Financial
Section of the CAFR.
The City participates in various organizations through formally organized and separate
entities established under the Joint Exercise of Powers Act of the State of California. As
separate legal entities, these agencies exercise full powers and authorities within the
scope of the related Joint Powers Agreement including the preparation of annual
budgets, accountability for all funds, and the power to make and execute contracts.
Obligations and liabilities of the separate entities are not those of the City. For a further
explanation of these separate entities, refer to Note 12-Jointly Governed Organizations in
the CAFR.
Fiscal year 2016-2017 marks the first year of implementation of Governmental Accounting
Standards Board Statement No. 75 (GASB 75), Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions (OPEB). 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 OPEB liability and a more comprehensive measure
of OPEB expense, much as GASB 68 provided a similar approach for defined benefit
pension obligations. The net OPEB liability of$33.8 million reported as of June 30, 2017,
is based on the most recent actuarial valuation as of June 30, 2015. The City's
implementation of this new requirement is one year early, in order to increase transparency
and achieve parity with the reporting methodology used for defined benefit pensions.
The City's net pension liability under GASB 68 reported as of June 30, 2017 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, 2016. The next
annual report is anticipated to be completed within the upcoming 30 days. The City is
aware of factors that may have an impact on the future measurement of the net pension
liability. For example, the investment returns of 11.73% for the fiscal year ended
June 30, 2017 well exceeded the target of 7.25%. In addition, the MCERA Board is
scheduled to consider a reduction in the discount rate in the preparation of its next actuarial
valuation, as of June 30, 2017. The City does not expect these factors to result in a net
material difference in the measurement of its net pension obligation of$167.1 million
reported in this year's financial reports.
During fiscal year 2016-2017, the City made significant progress towards improving our
essential facilities. Building from over a decade of community efforts to address San
Rafael's aging essential public safety facilities, the Essential Facilities project includes a
total of seven projects recommended for either replacement or renovation, including a new
CITY OF SAN RAFAEL : 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG
Gary 0. Phillips, Mayor o Maribeth Bushey, Vice Mayor o Kate Colin, Councilmember o John Gamblin, Councilmember o Andrew Cuyugan McCullough, Councilmember vii
public safety center across the street from City Hall. These new buildings will be
seismically-safe and provide modem facilities for our firefighters, police officers,
paramedics and dispatchers. They will include an upgraded dispatch and communications
center, and a new classroom and training tower for emergency preparedness. Construction
for both Fire Station 57, located at 3530 Civic Center Drive, and Fire Station 52, located at
210 3rd Street, began in June 2017 and are expected to be completed in the summer of
2018. The Public Safety Center demolition work is underway, and construction of the
building will begin within the next few months.
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 72% of overall sales tax revenues.
The California economy continues to recover from the recession. Although the 4.9%
unemployment rate remains above the national average of 4.4%, it continues on a path
towards convergence 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. Over the past year, State revenues
have lagged behind expectations. The recent surge in the stock market has breathed new
life into the revenue forecast; however, capital gains are the State's most volatile and
unpredictable revenue source.
Notwithstanding the State's $10.1 billion in projected reserves, the Governor's revised
budget for the upcoming year includes a $400 million deficit and major challenges
persist. The "wall of debt", which when pension and retiree medical liabilities are
considered, reaches into the hundreds of billions of dollars.
Locally, the 3.0% Marin County unemployment rate is among the lowest in the State.
According to the Marin Economic Forum, the County added 4,000 payroll jobs and
gained approximately 250 payroll businesses in 2016. Real personal income is projected
to grow at an average rate of 2.5% over the next few years after inflation, and Marin
County's taxable sales per capita are the third highest in the State. Marin County median
home prices are over $1.3 million and continue to rise, while the recovery of commercial
real estate has led to average rents increasing to $2.80 per square foot.
CITY OF SAN RAFAEL 1 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 1 CITYOFSANRAFAEL.ORG
Gary 0. Phillips, Mayor • Maribeth Bushey, Vice Mayor • Kate Colin, Councilmember • John Gamblin, Councilmember • Andrew Cuyugan McCullough, Councilmember viii
Demographic Data
The following is a sample of demographic and economic attributes that make San Rafael an
exceptional place to live and work.
131 Economic development organizations in San Rafael include the San Rafael Chamber of
Commerce, Downtown Business Improvement District, and the Marin Economic
Forum.
131 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.
131 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).
!2SI 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%).
131 Several hotels and motels support tourism activity, led by a combined 235 rooms in the
Embassy Suites and Four Points Sheraton. Citywide, the total number of hotel rooms
is 787.
131 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 $2,300 to $2,700, while two bedroom apartments go
for $3,000 to $3,600. The median home value in San Rafael is $955,000.
Recent growth and economic vibrancy:
• San Rafael ranked No.3 on Milken Institute Best-Performing Cities Index. This
index provides an objective benchmark for examining the underlying factors and
identifying unique characteristics of economic growth in metropolitan areas. The
index uses metrics such as job creation, wage gains, and technology developments
to evaluate the relative growth of metropolitan areas. California secured six of the
Top 25 spots among large metros, led by four metros in the San Francisco Bay
Area. Additionally, two Bay Area metros were in the Top 10 of small metros. San
Rafael ranks fourth in one-year high-tech GDP growth and concentration and has
maintained the fastest five-year high-tech growth. Five-year high-tech GDP growth
was 67 percent greater than the national average. Key strengths highlighted
included our educated workforce and cluster of biotech employers.
• San Rafael ranked No.3 on the SM U National Center for Arts Research Vibrancy
Index the overall index is composed of three dimensions: supply, demand, and
government support. Supply is assessed by the total number of arts providers in the
community, including the number of arts and culture organizations and employees,
independent artists, and entertainment firms. Demand is gauged by the total
CITY OF SAN RAFAEL ' 1400 FIFTH AVENUE. SAN RAFAEL, CALIFORNIA 94901 1 CITYOFSANRAFAEL.ORG
Gary 0. Phillips, Mayor • Maribeth Bushey, VIce Mayor • Kate Colin, Councllmember • John Gamblin, Councilmember • Andrew Cuyugan McCullough, Councilmember ix
nonprofit arts dollars in the community, including program revenue, contributed
revenue, total expenses, and total compensation. Lastly, the level of government
support is based on state and federal arts dollars and grants.
• San Rafael served as the host city and basecamp for production of the Netflix
Paramount Television Series 13 Reasons Why bringing in over $130,000 in
transient occupancy tax dollars and permitting fees.
• San Rafael welcomed Sonoma Marin Area Rail Transit Service in August 2017 and
San Rafael is the most population destination on the commuter rail service line.
Construction of the Larkspur extension which will complete the southern end of the
commuter rail line is set to commence in Fall 2017.
• Vacancy rates are maintaining all-time lows for retail and office space and
industrial space in San Rafael. Asking rents have increased throughout all market
types.
• Andy's Market relocated to the new Loch Lomond Marina Village Development.
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.
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.
CITY OF SAN RAFAEL ' 1400 FIFTH AVENUE. SAN RAFAEL, CALIFORNIA 94901 ' CITYOFSANRAFAEL.ORG
Gary 0. Phillips, Mayor· Maribeth Bushey, VIce Mayor • Kate Colin, Councilmember ·John Gamblin, Councilmember • Andrew Cuyugan McCullough, Councllmember x
ACKNOWLEDGMENTS
The preparation of this City-wide document would not have been possible without the
assistance of each of the City's departments. In addition, Finance support staff Helena
Mufioz, Karen Landesman and Whitney Fry, led by Accounting Manager Van Bach were
key to the timely issuance of this report. 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 sixth consecutive year for which 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 and
motivate a high level of achievement.
Respectfully submitted,
Mark Moses
Finance Director
CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 , CITYOFSANRAFAEL.ORG
Gary 0. Phillips, Mayor • Maribeth Bushey, Vice Mayor • Kate Colin, Councilmember • John Gamblin, Councilmember • Andrew Cuyugan McCullough, Councilmember xi
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
xii
City Council and Staff
City Council
Gary O. Phillips, Mayor
Maribeth Bushey, Vice Mayor
Andrew McCullough, Councilmember
Kate Colin, 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
Deborah Younkin, Interim Community Services Director
Mark Moses, Finance Director
Doris Toy, District Manager/Engineer-SRSD
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Royal Ground Coffee Shop 4th and B Street
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, 2017, 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 19%, 35%,
and 15%, respective, of the assets, net position, and revenues 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, 2017, and the respective changes in
financial position and, where applicable, cash flows thereof for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
Emphasis of Matters
Management adopted the provisions of the following Governmental Accounting Standards Board
Statement during the year ended June 30, 2017 that had material effects on the financial statements, as
discussed in Note 1 to the financial statements:
Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions.
The emphasis of this matter does not constitute a modification to our opinion.
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, as listed in the Table of Contents, 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. The Introductory Section, Supplementary Information,
and Statistical Section as listed in the Table of Contents are presented for purposes of additional analysis
and are not required parts of the basic financial statements.
The Supplementary Information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the Supplementary
Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated September 28,
2017 on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City’s internal control over financial
reporting and compliance.
Pleasant Hill, California
September 28, 2017
3
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
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, 2017. Please read it in conjunction with the basic financial statements
and the accompanying notes to those basic financial statements.
FINANCIAL HIGHLIGHTS
Government-wide:
In the fiscal year ended June 30, 2017, the City of San Rafael implemented Governmental Accounting
Standards Board Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Oher
Than Pensions. The implementation of this pronouncement required a prior period adjustment and reduced
the City’s net position as of July 1, 2016, by $20.6 million, of which $20.3 million was for governmental
activities and $0.3 million was for business-type activities.
Net Position – The assets of the City exceeded its liabilities as of June 30, 2017 by $125.6 million.
Activities – During the fiscal year the City’s total revenues of $102.7 were greater than expenses of
$98.0 million for governmental and business-type activities.
Changes in Net Position – The City’s total net position increased by $4.7 million in fiscal year 2016-2017
as compared to the adjusted net position of the previous year. Net position of governmental activities
increased by $4.1 million, while net position of the business-type activities increase by $556 thousand.
Fund Level:
Governmental Funds – As of the close of fiscal year 2016-2017, the City’s governmental funds reported
combined ending fund balances of $46.1 million, a decrease of $4.1 million from fund balance of the prior
year. Of this total amount, $0.5 million is nonspendable, $25.8 million is restricted, $3.5 million is
committed, $15.0 million is assigned, and $1.3 million is unassigned.
Governmental fund revenues were $97.8 million, a decrease of $2.8 million from the previous fiscal year.
The decrease is attributable to a number of one-time revenues that occurred during the previous year
coupled with a slowdown in sales tax-related revenues and third party emergency transport services
billings. Aside from these items, the City experienced modest to moderate growth in revenues.
Governmental fund expenditures increased by $4.2 million to $102.7 million, from $98.5 million in the
prior year, due primarily to public safety infrastructure and other capital improvement program
expenditures.
Enterprise fund operating revenue grew slightly by $57 thousand to $5.3 million. Enterprise operating
expenditures totaled $3.8 million, a decrease of $0.8 million over the previous year. The expenditure
decrease was attributable primarily to the pension-related accounting adjustments in 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
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
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 23 through 25 of this report.
6
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
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 114 through 144 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 four are considered major funds for presentation purposes.
Each major fund is presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances. The City’s four major funds are: the General
Fund, Traffic and Housing Mitigation, Gas Tax and Essential Facilities Capital Projects. Data from the other
twenty-five governmental funds are combined into a single, aggregated presentation. The basic governmental fund
financial statements can be found on pages 28 through 32 of this report. Individual fund data for each of these non-
major governmental funds is provided in the form of combining statements on pages 114 through 133 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.
7
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
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 35 through 37 of this report.
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of
those funds are not available to support the City’s own programs. The City acts as an agent on behalf of others,
holding amounts collected, and disbursing them as directed or required. The City’s fiduciary activities are reported
in the separate Statements of Fiduciary Net Position and the Agency Funds Statement of Changes in Assets and
Liabilities. The City’s fiduciary funds include a private purpose trust fund to account for activities of the City of
San Rafael Successor Agency and an agency fund that accounts for resources held by the City in a custodial
capacity for the Pt. San Pedro Road Assessment District. Information for the fiduciary funds can be found on pages
41 through 42 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 95 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, traffic and housing mitigation, and essential facilities capital projects). 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 99 through 108 of
this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
Net position is one measurement of the City’s financial position. During this fiscal year, the net position of the
City was $115.5 million from Governmental Activities and $10.1 million from Business-type Activities, for a total
of $125.6 million. This represents an increase of $4.7 million from the prior year net position.
8
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2017 and 2016:
Current Governmental assets decreased by $3.4 million, primarily due to the use of funds set aside for public safety
facility construction and improvements. The $5.4 million increase in Capital assets reflects this use of resources.
Current and other liabilities increased by approximately $1.1 million, primarily due to an increase in accounts
payable due to a higher level of construction activity. Noncurrent governmental liabilities increased by $48.0
million, mostly attributable to the increase in net pension and OPEB liabilities (Notes 9 and 11). Of this amount,
$20.3 million is attributable to prior year OPEB liabilities. These liabilities are incorporated into the restated net
position of the previous year.
The net position in business-type activities reflects the fiscal activity of the Parking Services program and increased
by $555 thousand from the previous year. The $623 thousand increase in noncurrent liabilities is driven by the
increase in net pension and OPEB liabilities, although this is partially offset by the $280 thousand restatement of
net position prompted by the first year implementation of GASB 75. Increases to deferred outflows and decreases
to deferred inflows under the reporting requirements of GASB 68 and GASB 75 offset the liability increase, thus
contributing to the positive impact on net position.
9
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
At June 30, 2017, the largest portion of net position in the amount of $210.2 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.
A portion of the City's net position, $29.2 million, is subject to external restrictions, and their use is determined by
those restrictions whether legal or by covenant. The remaining portion, unrestricted negative $113.8 million,
represents the extent to which the net investment in capital assets and restricted net position exceed total assets.
10
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
Statement of Activities - Governmental
The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ended
June 30, 2017 and 2016:
11
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
The City’s governmental activities net position increased by $4.1 million during fiscal year 2016-2017. Charges for
services were approximately $4.1 million lower than those of the previous year. Most of this decrease, $2.6 million,
stems from a change in the reporting of reimbursements to the City from SRSD. (In the previous year, the
reimbursements were reported as a charge for services. Going forward, these charges are eliminated because their
source is a component unit of the City.) The City also experienced a decline in third-party billings for emergency
medical transport services.
Approximately half of the $3.3 million increase in property tax revenues results from a reporting change in which
property transfer tax revenues are now being accounted for within the property tax category. In the prior year, it
was reported under “Other taxes.” The remainder of the growth reflects economic growth (approximately five
percent) coupled with some one-time distributions from prior year activity. The year-over-year $2.5 million
decrease in sales taxes is attributable to a leveling off in sales tax-related growth in the current year combined with
a $1.2 million one-time sales tax revenue in the previous year.
Other taxes dropped from $3.5 million to $1.7 million in the current year because of the change in reporting of the
property transfer tax, as described previously. Finally, Miscellaneous revenues increased by just under
$1.1 million, with most of the increase attributable to County of Marin payments toward the Fire Station 57
construction, one of the active Essential Facilities Capital projects.
The fiscal year 2016-2017 governmental expenses were $17.0 million less than those of the previous fiscal year.
This decrease is driven by $26.7 million of pension expense adjustments recorded under GASB 68. The remaining
year-over-year increase is attributable to other operating costs, which increased by approximately $9.7 million.
The following graph shows governmental revenues by source:
12
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
Total expenses for governmental activities were $93.6 million (excluding interest on long-term debt of $271
thousand). Program revenues offset total expenditures as follows:
Those who directly benefited from programs contributed $17.3 million in charges for services.
A total of $5.7 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 $70.6 million.
Functional expenses for the year ended June 30, 2017 were as follows:
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
Statement of Activities – Business-type
The net position for business-type activities was increased by $555 thousand in fiscal year 2016-2017 from the
prior fiscal year.
Parking services is the City’s only business-type activity with income derived from program revenues of
$5.3 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 $2.1 million. Total expenses for parking services were $4.2 million and transfers out to
general fund and non-major governmental fund for support totaled $536 thousand during the fiscal year
2016-2017. The year-over-year decrease in expenditures was driven by routine pension-related accounting
adjustments in the parking fund.
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
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, 2017, the City reported a combined ending fund balance of $46.1 million of all its governmental
funds (a decrease of 4.0 million from the prior year): $0.5 million is non-spendable, $25.8 million is restricted,
$3.5 million is committed, $15.0 million is assigned and $1.3 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, 2017 was $16.7 million (a decrease of
$2.0 million from the prior year balance): $0.5 million is non-spendable, $14.9 million is assigned, and $1.3 million
is unassigned. The assigned portion of the balance includes $7.2 million for emergency and cash flow needs.
General Fund Budgetary Highlights:
The original adopted General Fund budget projected total revenue of $74.9 million and transfers-in of $1.2 million
for total resources of $76.1 million. This budget appropriated expenditures of $69.9 million and transfers-out of
$6.0 million for total appropriations of $75.9 million. Transfers-out were later increased to $7.2 million in order 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 $73.4 million, were lower than the original budgeted revenues by $1.5 million. This negative
performance was primarily due to a decline in sales tax revenues. Actual expenditures of $69.5 million were less
than the original budgeted expenditures by $0.4 million, primarily due to staffing vacancies.
Fiscal year 2016-2017 General Fund revenues and transfers of $74.8 million exceeded expenditures and operating
transfers out of $71.3 million by $3.5 million. Capital transfers to the Essential Facilities Capital Projects fund
reduced the net results by $5.4 million. Net operating results were sufficient to ensure that the General Fund
Emergency and Cash Flow Reserve maintained its target level of 10 percent of actual expenditures.
15
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
Adopted Budget Revised Budget Actual
Revenues $74,942 $74,117 $73,366
Transfers in 1,213 1,382 1,382
Total resources 76,155 75,499 74,748
Expenditures 69,901 $70,526 69,520
Transfers out (operating) 1,936 1,796 1,796
Total uses 71,837 72,322 71,316
Net Operating Results $4,318 $3,177 $3,432
Transfers out (capital) 4,040 5,417 5,417
Net Results after capital transfers $278 ($2,240)($1,985)
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2017 (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
$10.4 million to $9.1 million. Revenues totaled $0.2 million, while $1.8 million was charged against this fund to
support the maintenance of the City-wide traffic model, including the Tamalpais Avenue queue cutter and Freitas-
Las Gallinas Intersection Improvement. The balance in the fund is being held in anticipation of major street
projects identified in the General Plan 2020 and other qualifying expenditures.
Gas Tax Fund – The City uses this fund to manage its allocation of State gasoline taxes and local funding for street
maintenance projects. Gas tax revenues exceeded expenditures and net transfers by $70 thousand in fiscal year
2016-2017 leaving the ending fund balance effectively unchanged at $6.7 million.
Expenditures during fiscal year 2016-2017 totaled $4.6 million. In addition to routine street-related maintenance,
expenditures include $703 thousand for Downtown Rail Readiness, $1.6 million for miscellaneous street
resurfacing, $580 thousand for Grand Avenue Pathway Connector, $232 thousand for Brookdale Avenue Retaining
Wall Repair and $146 thousand for Emergency Slide Repair and Road Repair.
The largest sources of revenues were $1.1 million in development impact fees, $1.2 million from State gasoline
taxes, $635 thousand in local Measure A and $492 thousand in Measure B funding.
Essential Facilities Capital Projects Fund – The City uses this fund to account for major capital improvements to
public safety facilities. The currently active construction projects are Fire Station 57, Fire Station 52 and the Public
Safety Center. Expenditures during fiscal year 2016-2017 totaled $6.1 million, of which $5.4 million was
transferred from the General Fund from an allocation of Measure E Transaction and Use Tax, and the remainder
from reimbursements from the County of Marin for its share of Fire Station 57 costs.
Non-major Governmental Funds – The City’s non-major funds are presented in the basic financial statements in
the aggregate. At June 30, 2017, non-major funds had a total fund balance of $13.6 million, a $0.8 million decrease
from the previous year. While the Childcare and Grants funds reported increases of $216 thousand and $139
thousand, respectively; the Stormwater Fund spent down $772 thousand as it completed major work on the Rossi
Pump Station, and the State Lands Fund (reported under Development Services) expended a net $318 thousand in
support of a right-of-way purchase.
16
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
Of the ending total non-major fund balances of $13.6 million: $10.0 million (74%) is legally restricted for specific
purposes by external funding source providers, $3.5 million (25%) 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.
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 $764 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 $57 thousand in fiscal year 2016-2017 to $5.269 million.
The Enterprise fund operating expenses were $3.8 million in fiscal year 2016-2017, a decrease of $0.8 million over
the prior fiscal year.
The City’s Internal Service Funds are also reported in this Proprietary Fund classification. In fiscal year 2016-2017,
the Internal Services Funds were comprised of: Building Maintenance, Vehicle Replacement, Equipment
Replacement, Employee Benefits, Liability Insurance, Workers’ Compensation, Dental Insurance, Employee
Retirement, OPEB/Retiree Medical, Radio Replacement, Telephone Replacement and Sewer Maintenance. The net
position of the Internal Service Funds increased by $2.2 million, $1.9 million of which was in the building
maintenance fund reflecting the growth in depreciable City infrastructure-related assets. The other Internal Service
Funds reported small-to-moderate changes to their respective net positions.
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, 2017
amounts to $216.0 million, net of accumulated depreciation of $167.9 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 $12.0 million, offset by accumulated depreciation of
$6.9 million.
Additions to capital assets during fiscal year 2016-2017 included:
Building and structures
Terra Linda Recreation Center Pool House
Infrastructure: $9.8 million
Downtown Rail Readiness - $3.8 million
Tamalpais Avenue Queue Cutter Improvement - $1.9 million
Rossi Pump - $1.7 million
H Street Drainage Improvement - $2.4 million
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
The City’s Capital Assets for the fiscal years ending June 30, 2017 and 2016 were as follows:
Additional information on the City’s capital assets can be found in Note 5 on pages 63 through 64 of this report.
Debt Administration
The City’s debt obligations were stable year-over year, and reflect payments of principal made during the year. 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 6 of the financial statements for
additional information on the debt obligations of the City and Note 15 for additional information on the Successor
Agency.) The City’s long-term obligations for the fiscal years ending June 30, 2017 and 2016 were as follows:
18
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
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, although sales tax revenues have experienced a leveling off. As the City
looks ahead to fiscal year 2017-2018, 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 4.9% unemployment rate remains above
the national average of 4.4%, 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 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 3.0% Marin County unemployment rate is the second lowest in the State. According to the Marin Economic
Forum, the County added 4,000 payroll jobs and gained approximately 250 payroll businesses in 2016. Real personal
income is projected to grow at an average rate of just over 2.5% over the next year, and Marin County’s taxable sales per
capita are the third highest in the State. Marin County median home prices now exceed $1.3 million and continue to rise,
while the recovery of commercial real estate has led to stable rents increasing to an average of $2.80 per square foot.
The City’s general fund is fueled by the momentum of five 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 2017-2018 with approximately $4.8 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 2017-2018, these taxes are projected to
increase by approximately three percent.
The City’s second largest tax generator is property tax. The City is expecting the fiscal year 2016-2017 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.
19
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2017
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 three-year contract terminating on
October 31, 2019, the City’s labor units are all operating under two-year 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 fiscal 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.
20
CITY OF SAN RAFAEL
STATEMENT OF NET POSITION AND
STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial
activities and financial position. They are also referred to as Government-wide financial statements.
The Statement of Net Position reports the difference between the City’s total assets and the City’s total
liabilities, including all the City’s capital assets and all its long-term debt. The Statement of Net Position
focuses the reader on the composition of the City’s net position, by subtracting total liabilities from total
assets.
The Statement of Net Position summarizes the financial position of all of the City’s Governmental Activities
in a single column, and the financial position of all the City’s Business-type Activities in a single column;
these columns are followed by a total column which presents the financial position of the entire City.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special
Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these
Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund
transactions and balances. The City’s Business-type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on
the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of
when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial
statements, which reflect only current assets, current liabilities, available revenues and measurable
expenditures.
The Statement of Activities presents the City’s expenses first, listed by program, and follows these with
the expenses of its business-type activities. Program revenues - that is, revenues which are generated
directly by these programs - are then deducted from program expenses to arrive at the net expense of each
governmental and Business-type program. The City’s general revenues are then listed in the
Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net
Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City and the San Rafael Joint Powers
Financing Authority which are legally separate but are considered to be component units of the City
because they are controlled by the City, which is financially accountable for their activities. The balances
and the activities of the San Rafael Sanitation District, a discretely presented component unit, are
included in these statements in a separate column.
21
CITY OF SAN RAFAEL
STATEMENT OF NET POSITION
JUNE 30, 2017
Component
Unit
Primary Government San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
ASSETS
Cash and investments available for operations (Note 2) $64,866,135 $3,217,411 $68,083,546 $24,536,913
Restricted cash and investments (Note 2) 702,161 702,161
Receivables:
Accounts 2,333,440 50,543 2,383,983 48,157
Taxes 7,481,603 7,481,603
Grants 123,581 6,507 130,088
Interest 169,010 169,010
Loans (Note 4)654,612 654,612
Long-term receivable from the Successor Agency (Note 15D) 761,773 761,773
Long-term receivable from San Rafael Sanitation District (Note 4G) 4,527,836 4,527,836
Internal balances (Note 3B) 162,051 (162,051)
Prepaid expenses and others 1,362,605 154,835 1,517,440 54,842
Capital assets (Note 5):
Nondepreciable 95,509,234 8,620,853 104,130,087 387,361
Depreciable, net 103,996,931 7,822,754 111,819,685 48,004,957
Total Assets 282,650,972 19,710,852 302,361,824 73,032,230
DEFERRED OUTFLOWS
Deferred outflows related to pension (Note 9) 72,653,722 2,353,734 75,007,456
Deferred outflows related to OPEB (Note 11) 4,214,824 40,176 4,255,000
Total Deferred Outflows 76,868,546 2,393,910 79,262,456
LIABILITIES
Accounts payable 8,416,779 90,048 8,506,827 620,794
Deposits payable 101,146 101,146
Interest payable 46,547 46,547
Developer deposits payable 547,699 547,699
Unearned revenue 367,589 367,589
Claims payable (Note 13):
Due in one year 2,653,288 2,653,288
Due in more than one year 6,094,050 6,094,050
Compensated absences (Note 1K):
Due in one year 556,116 17,703 573,819
Due in more than one year 3,892,816 123,922 4,016,738
Long-term debt (Note 6):
Due in one year 280,172 276,816 556,988
Due in more than one year 4,413,151 5,198,149 9,611,300
Long-term payable to the City of San Rafael (Note 4G)4,527,836
Net OPEB liability (Note 11) 33,466,002 318,998 33,785,000
Net pension liability (Note 9) 161,812,669 5,242,181 167,054,850
Total Liabilities 222,601,477 11,314,364 233,915,841 5,148,630
DEFERRED INFLOWS
Deferred inflows related to pension (Note 9) 21,402,737 693,376 22,096,113
Total Deferred Inflows 21,402,737 693,376 22,096,113
NET POSITION (Note 8):
Net investment in capital assets 199,202,842 10,968,642 210,171,484 48,392,318
Restricted for:
Special revenue projects:
Housing and street improvements 16,575,903 16,575,903
Stormwater 189,087 189,087
Emergency medical services 1,744,530 1,744,530
Other 6,564,442 6,564,442
Capital projects 3,984,436 3,984,436
Debt service 167,245 167,245
Total Restricted Net Position 29,225,643 29,225,643
Unrestricted (112,913,181) (871,620) (113,784,801) 19,491,282
Total Net Position $115,515,304 $10,097,022
$125,612,326 $67,883,600
See accompanying notes to financial statements
23
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General government $10,996,269 $421,393 $168,782
Public safety 44,366,734 4,264,939 996,507
Public works and parks 19,845,719 1,804,698 2,452,581 $1,702,993
Community development 4,242,743 3,850,107
Culture and recreation 14,131,000 6,941,013 347,481
Interest on long-term debt and fiscal charges 271,263
Total Governmental Activities 93,853,728 17,282,150 3,965,351 1,702,993
Business-type Activities
Parking services 4,188,152 5,268,991
Total Business-type Activities 4,188,152 5,268,991 - -
Total Primary Government $98,041,880 $22,551,141 $3,965,351 $1,702,993
Component Unit
San Rafael Sanitation District $11,255,194 $16,014,016 36,945$ 79,245$
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, as adjusted (Note 1Q)
Net Position, end of year
See accompanying notes to financial statements
Program Revenues
CITY OF SAN RAFAEL
STATEMENT OF ACTIVITIES
24
Component
Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
($10,406,094)($10,406,094)
(39,105,288)(39,105,288)
(13,885,447)(13,885,447)
(392,636)(392,636)
(6,842,506)(6,842,506)
(271,263)(271,263)
(70,903,234)(70,903,234)
$1,080,839 1,080,839
- 1,080,839 1,080,839
(70,903,234) 1,080,839 (69,822,395)
$4,875,012
23,343,140 23,343,140 1,528,047
20,255,493 20,255,493
7,689,925 7,689,925
3,844,963 3,844,963
28,878 28,878
5,485,637 5,485,637
2,984,758 2,984,758
3,610,824 3,610,824
2,774,803 2,774,803
1,824,830 1,824,830
210,628 10,810 221,438 97,090
2,448,604 2,448,604
536,000 (536,000)
75,038,483 (525,190) 74,513,293 1,625,137
4,135,249 555,649 4,690,898 6,500,149
111,380,055 9,541,373 120,921,428 61,383,451
$115,515,304 $10,097,022 $125,612,326 $67,883,600
Primary Government
Net (Expenses) Revenues and Changes in Net Position
25
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 2016-2017:
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.
ESSENTIAL FACILITIES CAPITAL PROJECTS FUND
Established to account for major capital improvements to public safety facilities.
27
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2017
Traffic and Essential
Housing Facilities Capital
General Mitigation Gas Tax Projects Fund
ASSETS
Cash and investments available for operations (Note 2) $13,434,043 $9,227,743 $7,009,256 $1,950,002
Restricted cash and investments (Note 2)
Receivables:
Accounts 1,257,061 46,441 183,106
Taxes 7,109,197 109,688
Grants
Interest 167,018
Loans (Note 4) 230,973 193,573
Long-term receivable from the
Successor Agency (Note 15D) 761,773
Prepaids 277,473
Total Assets $23,237,538 $9,421,316 $7,165,385 $2,133,108
LIABILITIES
Accounts payable $4,144,408 $270,227 $441,689 $2,133,108
Deposits payable 79,411 15,659
Developer deposits payable 387,085
Unearned revenue
Compensated absences 64,189
Total Liabilities 4,675,093 285,886 441,689 2,133,108
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - SB90 reimbursement receivable 1,096,240
Unavailable revenue - long-term receivable from Successor Agency 761,773
Total Deferred Inflows of Resources 1,858,013
Fund Balances (Note 8):
Nonspendable 508,446
Restricted 9,135,430 6,723,696
Committed
Assigned 14,900,945
Unassigned 1,295,041
Total Fund Balances 16,704,432 9,135,430 6,723,696
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $23,237,538 $9,421,316 $7,165,385 $2,133,108
See accompanying notes to basic financial statements
Special Revenue Funds
28
Other Total
Governmental Governmental
Funds Funds
$12,734,480 $44,355,524
702,161 702,161
846,832 2,333,440
262,718 7,481,603
123,581 123,581
1,992 169,010
230,066 654,612
761,773
4,574 282,047
$14,906,404 $56,863,751
$812,035 $7,801,467
6,076 101,146
160,614 547,699
367,589 367,589
64,189
1,346,314 8,882,090
1,096,240
761,773
1,858,013
508,446
9,953,279 25,812,405
3,491,708 3,491,708
115,103 15,016,048
1,295,041
13,560,090 46,123,648
$14,906,404 $56,863,751
29
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2017
Total fund balances reported on the governmental funds balance sheet $46,123,648
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.190,678,334
Internal service funds are used by management to charge the cost of management of
21,218,401
Long-term liabilities, including bonds payable, are not due and payable in the current
period and, therefore, are not reported in the Governmental Funds.(4,693,323)
Compensated absences (4,384,743)
Unavailable revenue 1,858,013
Long-term receivables from San Rafael Sanitation District 4,527,836
Deferred outflow related to pension 72,653,722
Net pension liability (161,812,669)
Deferred inflow related to pension (21,402,737)
Deferred outflow related to OPEB 4,214,824
Net OPEB liability (33,466,002)
NNet position of governmental activities $115,515,304
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.
30
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2017
Traffic and Essential Other Total
Housing Facilities Capital Governmental Governmental
General Mitigation Gas Tax Projects Fund Funds Funds
REVENUES
Taxes and special assessments $64,242,440 $6,924,451 $71,166,891
Licenses and permits 2,559,841 2,559,841
Fines and forfeitures 400,283 400,283
Use of money and properties 229,791 $31,267 $24,527 63,764 349,349
Intergovernmental 2,767,092 3,728,982 1,567,082 8,063,156
Charges for services 2,459,680 204,210 1,149,022 9,612,249 13,425,161
Other revenue 706,657 62,314 $635,387 437,695 1,842,053
Total Revenues 73,365,784 235,477 4,964,845 635,387 18,605,241 97,806,734
EXPENDITURES
Current:
General government 10,190,580 22,450 344,386 10,557,416
Public safety 40,844,246 8,173,907 49,018,153
Public works and parks 11,201,655 1,745,154 2,643,991 1,162,161 16,752,961
Community development 3,759,564 3,759,564
Culture and recreation 3,077,435 9,569,293 12,646,728
Capital outlay 1,641,317 459,609 2,100,926
Capital improvement / special projects 305,704 6,052,841 1,044,704 7,403,249
Debt service:
Principal 175,172 175,172
Interest and fiscal charges 271,263 271,263
Total Expenditures 69,519,915 1,767,604 4,591,012 6,052,841 20,754,060 102,685,432
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,845,869 (1,532,127) 373,833 (5,417,454) (2,148,819) (4,878,698)
OTHER FINANCING SOURCES (USES)
Transfers in (Note 3A)1,382,303 228,400 325,000 5,417,454 1,933,850 9,287,007
Transfers out (Note 3A)(7,213,543)(628,400)(612,819) (8,454,762)
Total Other Financing Sources (Uses)(5,831,240) 228,400 (303,400) 5,417,454 1,321,031 832,245
Net Change in Fund Balances (1,985,371) (1,303,727) 70,433 (827,788) (4,046,453)
FUND BALANCES, BEGINNING OF YEAR 18,689,803 10,439,157 6,653,263 14,387,878 50,170,101
FUND BALANCES, END OF YEAR $16,704,432 $9,135,430 $6,723,696 $13,560,090 $46,123,648
See accompanying notes to financial statements
Special Revenue Funds
31
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, 2017
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS ($4,046,453)
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 9,504,175
Non-capitalized capital outlay expenditures were reclassified to various governmental activities 2,003,366
Loss on disposal of capital assets is deducted from fund balance (207,188)
Transfer of capital assets to Internal Service Funds is deducted from fund balance (1,228,402)
Depreciation expense is deducted from fund balance (6,222,352)
Long-Term Debt Proceeds and Payments
175,172
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 (126,623)
Unavailable revenue (516,972)
Long-term receivable from San Rafael Sanitary District (331,171)
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.2,524,957
Net OPEB Liability Transactions
Governmental funds record OPEB 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 OPEB liability.190,187
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.2,416,553
Change in Net Position of Governmental Activities $4,135,249
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.
32
PROPRIETARY FUND FINANCIAL STATEMENTS
Proprietary funds account for City operations financed and operated in a manner similar to a private business
enterprise. The intent of the City is that the cost of providing goods and services be financed primarily
through user charges, whether external or internal.
The City reports its only enterprise fund, as a major fund.
PARKING SERVICES FUND
Established to maintain parking garages, lots and spaces in the Downtown Parking District, and to pay for
parking enforcement and meter collection.
INTERNAL SERVICE FUNDS
Established to account for department services and financing performed for other departments within the
same governmental jurisdiction. Funding comes from charges assessed to the departments benefiting
from the service.
33
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2017
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
ASSETS
Current Assets:
Cash and investments available for operations (Note 2) $3,217,411 $20,510,611
Receivable:
Accounts 50,543
Grants 6,507
Prepaids 154,835 1,080,558
Total Current Assets 3,429,296 21,591,169
Noncurrent Assets:
Capital assets (Note 5):
Nondepreciable 8,620,853 530,301
Depreciable, net 7,822,754 8,297,530
Total Noncurrent Assets 16,443,607 8,827,831
Total Assets 19,872,903 30,419,000
DEFERRED OUTFLOWS
Deferred outflows related to pension (Note 9) 2,353,734
Deferred outflows related to OPEB (Note 11) 40,176
Total Deferred Outflows 2,393,910
LIABILITIES
Current Liabilities:
Accounts payable 90,048 615,312
Interest payable 46,547
Compensated absences, due in one year (Note 1K) 17,703
Claims payable, due in one year (Note 13) 2,653,288
Long-term debt, due in one year (Note 6) 276,816
Total Current Liabilities 431,114 3,268,600
Noncurrent Liabilities:
Compensated absences (Note 1K) 123,922
Claims payable (Note 13)6,094,050
Long-term debt (Note 6) 5,198,149
Net OPEB liability (Note 11) 318,998
Net Pension Liability (Note 9) 5,242,181
Total Noncurrent Liabilities 10,883,250 6,094,050
Total Liabilities 11,314,364 9,362,650
DEFERRED INFLOWS
Deferred inflows related to pension (Note 9) 693,376
Total Deferred Inflows 693,376
NET POSITION (Note 8):
Net investment in capital assets 10,968,642 8,827,831
Unrestricted (709,569) 12,228,519
Total Net Position 10,259,073 $21,056,350
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.(162,051)
Net position business-type activities $10,097,022
See accompanying notes to financial statements
35
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2017
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
OPERATING REVENUES
Charges for current services $3,103,420 $15,206,988
Other operating revenues 2,165,571 962,296
Total Operating Revenues 5,268,991 16,169,284
OPERATING EXPENSES
Personnel 2,097,898 2,775,670
Insurance premiums and claims 6,614,379
Maintenance and repairs 71,875 288,700
Depreciation (Note 5)255,508 1,067,900
General and administrative 1,362,350 4,289,993
Total Operating Expenses 3,787,631 15,036,642
Operating Income 1,481,360 1,132,642
NONOPERATING REVENUES (EXPENSES)
Investment income 10,810 68,951
Interest expense (192,038)
Miscellaneous income 94,264
Loss on sale of capital assets (19,944)
Total Nonoperating Revenues (Expenses) (181,228) 143,271
Income Before Transfers 1,300,132 1,275,913
CAPITAL CONTRIBUTIONS 1,228,402
TRANSFERS IN (Note 3A)80,275
TRANSFERS OUT (Note 3A) (536,000) (376,520)
Change in Net Position 764,132 2,208,070
NET POSITION, BEGINNING OF YEAR, AS ADJUSTED (Note 1Q) 9,494,941 18,848,280
NET POSITION, END OF YEAR $10,259,073 $21,056,350
* Reconciliation of the Change in Net Position with the Statement of Activities
Change in Net Position $764,132
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. (208,483)
Change in Net Position of Business-type Activities $555,649
See accompanying notes to financial statements
36
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2017
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $3,103,420 $15,307,819
Cash payments to suppliers for goods and services (1,665,543) (13,509,146)
Cash payments to employees for salaries and benefits (2,346,766)(164,292)
Other operating revenues 2,269,878 962,010
Cash Flows from Operating Activities 1,360,989 2,596,391
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts 80,275
Interfund payments (536,000)(376,520)
Cash Flows from Noncapital
Financing Activities (536,000)(296,245)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal payments on revenue bonds and note payable (266,817)
Interest expenses and fiscal charges (193,263)
Acquisition of capital assets (1,222,005)
Proceeds from sale of property 94,264
Cash Flows from Capital and
Related Financing Activities (460,080)(1,127,741)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 10,810 68,951
Cash Flows from Investing Activities 10,810 68,951
NET INCREASE IN CASH AND CASH EQUIVALENTS 375,719 1,241,356
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 2,841,692 19,269,255
CASH AND CASH EQUIVALENTS, END OF YEAR $3,217,411 $20,510,611
Reconciliation of operating income to net cash
provided by operating activities:
Operating income $1,481,360 $1,132,642
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation 255,508 1,067,900
Net change in assets and liabilities:
Accounts receivable 104,307 89,607
Loans receivable 10,938
Prepaids and deposits (154,835)2,478
Increase (decrease) in due to OPEB system (1,813)
Accounts payable (76,483)134,054
Compensated absence obligations (1,100)
(Decrease) in due to retirement system (245,955)
Claims payable 158,772
Net Cash Provided by Operating Activities $1,360,989 $2,596,391
NON-CASH TRANSACTIONS:
Amortization of bond discount $725
Contributions of capital assets $1,228,402
See accompanying notes to basic financial statements
37
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, 2017
Successor Agency
to the
Redevelopment
Agency
Private-Purpose Agency
Trust Fund Funds
ASSETS
Cash and investments (Note 2) $87,344
Restricted cash and investments (Note 2) $289,768
Receivable:
Taxes 3,360,513 951
Total Assets $3,447,857 $290,719
LIABILITIES
Accounts payable $1,697
Interest payable 46,747 $26,614
Other long-term obligations (Note 15D) 761,773
Due to bondholders 264,105
Long-term debt (Note 15C):
Due within one year 3,080,000
Due more than one year 15,852,670
Total Liabilities 19,742,887 $290,719
NET POSITION (DEFICIT)
Held in trust for private purpose ($16,295,030)
See accompanying notes to financial statements
41
CITY OF SAN RAFAEL
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2017
Successor Agency
to the
Redevelopment Agency
Private-Purpose
Trust Fund
ADDITIONS
Property taxes $4,137,246
Total Additions 4,137,246
DEDUCTIONS
General government 261,850
Interest expense 886,612
Total Deductions 1,148,462
SPECIAL ITEM
OPEB liability adjustment (Note 15D) 278,888
Total Special Item 278,888
Change in Net Position 3,267,672
NET POSITION HELD IN TRUST FUND
FOR OTHER PURPOSES
Beginning of year (19,562,702)
End of year ($16,295,030)
See accompanying notes to financial statements
42
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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. The employees also participate in the
City’s healthcare benefits plan which includes a provision for postemployment benefits. These
costs are the obligation of the District and not the City. As discussed in Note 4G, a receivable
from the District has been established.
43
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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, 2017
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.
Essential Facilities Capital Projects Fund – Established to account for major capital
improvements to public safety facilities.
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, 2017
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Governmental funds are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Under this method, revenues are recognized when
measurable and available. The City considers all revenues reported in the governmental funds to
be available if the revenues are collected within sixty days after year-end with the exception of
sales and use tax revenues which are reported as available if collected within ninety days of year-
end. Expenditures are recorded when the related fund liability is incurred, except for principal
and interest on long-term debt, claims and judgments, and compensated absences, which are
recognized as expenditures to the extent they have matured. General capital asset acquisitions are
reported as expenditures in governmental funds. Proceeds from long-term debt and acquisitions
under capital leases are reported as other financing sources.
Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental
revenues, interest revenue, charges for services, fines and forfeitures. Other receipts and taxes are
recognized as revenue when the cash is received.
Non-exchange transactions, in which the City gives or receives value without directly, receiving
or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the
accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or
assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in
which all eligibility requirements have been satisfied. Under the terms of grant agreements, the
City may fund certain programs with a combination of cost-reimbursement grants, categorical
block grants, and general revenue. Thus, both restricted and unrestricted net position may be
made available to finance program expenditures. The City’s policy is to first apply restricted
grant resources to such programs, followed by general revenues if necessary.
The City considers restricted shared state revenues such as gasoline taxes and public safety sales
taxes, restricted locally imposed transportation sales taxes, fines, forfeitures, licenses, permits,
charges for services, and program grants as program revenues.
Certain indirect costs are included in program expenses reported for individual functions and
activities.
G. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet will sometimes report a
separate section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until
then.
46
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In addition to liabilities, the statement of financial position or balance sheet will sometimes report
a separate section for deferred inflows of resources. This separate financial statement element,
deferred inflows of resources, represents an acquisition of net position or fund balance that
applies to a future period(s) and so will not be recognized as an inflow of resources (revenue)
until that time. Unavailable revenue, a type of deferred inflow of resources, is reported in the
governmental funds balance sheet. The governmental funds report unavailable revenues from
three sources: taxes receivable, interest on interfund advances and loans receivable. These
amounts are deferred and recognized as an inflow of resources in the period that the amounts
become available.
H. Budgets, Budgetary Accounting, and Encumbrances
The City adopts an annual budget which is effective July 1 for the ensuing fiscal year. The budget
reflects estimated revenues and expenditures, except for the capital projects funds and the Peacock
Gap Assessment District Debt Service Fund. Appropriations and spending authorizations for
projects in the capital projects funds and some special revenue funds are approved by the City
Council on a multi-year basis. From the effective date of the budget, which is adopted at the
department level, the amounts stated therein as proposed expenditures become appropriations to the
various City departments. The City Council may amend the budget by resolution during the fiscal
year in order to respond to emerging needs, changes in resources, or shifting priorities.
Expenditures may not exceed appropriations at the fund level, which is the legal level of control.
The City Manager is authorized to transfer budgeted amounts between accounts, departments or
funds; the Council must approve any increase in the City’s operating expenditures as well as any
appropriations for capital projects.
Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles for the
General Fund and Special Revenue Funds.
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.
47
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
J. Capital Assets
City
Contributed capital assets are valued at their estimated fair market value on the date contributed.
Donated capital assets, donated works of art and similar items, and capital assets received in a
service concession arrangement are recorded at acquisition value. All other capital assets are
valued at historical cost or estimated historical cost if actual historical cost is not available.
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.
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
District
Collection systems and facilities purchased or constructed are stated at cost. Assets contributed
have been recorded at the fair market value at the date received. Interest is capitalized for assets
constructed when applicable. The costs of normal repairs and maintenance that do not add to the
value of an asset or materially extend asset lives are not capitalized. Improvements are capitalized
and depreciated over the remaining useful lives of the related capital assets, as applicable.
Applicable capital assets must be capitalized for amounts $1,000 or above and may be capitalized
for amounts from $500 to $1,000 if determined to be sensitive. Depreciation is provided by the
straight-line method over the estimated useful lives of capital assets as follows:
Subsurface lines 50-80 years
Sewer collection facilities 5-50 years
General plant & administrative
facilities
3-15 years
48
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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 $4,258,120 $142,725 $4,400,845
Additions 4,436,330 113,870 4,550,200
Payments (4,245,518) (114,970) (4,360,488)
Ending Balance $4,448,932 $141,625 $4,590,557
Current Portion $556,116 $17,703 $573,819
49
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
L. Property Tax Levy, Collection and Maximum Rates
City
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
District
The County of Marin levies taxes and places liens on real property as of January 1 on behalf of the
District. Unsecured property taxes are levied throughout the year.
M. Sewer Charges
Sewer charges are billed and collected on behalf of the District by the County of Marin as a
special assessment on annual property tax billings. Property taxes are levied on January 1 and are
due in two equal installments on November 1 and February 1. In accordance with the Teeter
Plan, the County remits to the District all charges which are assessed and the county retains
responsibility for collecting past due amounts.
50
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The Teeter Plan provides that the County advance the District its share of the annual gross levy of
secured property taxes and special assessments. In consideration, the District gives the County of
Marin its rights to penalties and interest on delinquent secured property tax receivables and actual
proceeds collected.
N. Connection Fees
Connection fees represent a one-time contribution of resources to the District imposed on
contractors and developers for the purpose of financing capital improvements. Connection fees
are recognized after non-operating revenues (expenses) in the statement of revenues, expenses
and changes in net position. The District utilizes connection fees received on a first-in-first-out
basis to finance current year capital projects. Accordingly, if there is a balance of connection fees
available at year-end, it is classified as restricted net position.
O. 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.
P. Implementation of Accounting Standards
Significant Accounting Standards Adopted in the Current Year
GASB Statement No. 75 - In June 2015, GASB issued Statement No. 75, Accounting and
Financial Reporting for Postemployment Benefits other than Pensions. The objective of this
Statement is to improve accounting and financial reporting by state and local governments for
postemployment benefits other than pensions (OPEB). The Statement replaces the requirements of
Statements No. 45 Accounting and Financial Reporting for Postemployment Benefits Other than
Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-
Employer Plans, for OPEB. The Statement is effective for periods beginning after June 15, 2017;
however, the City has elected to implement effective July 1, 2016.
Q. Prior Period Adjustments
The early implementation of GASB Statement No. 75 required the City to make prior period
adjustments. As a result, the beginning net positions of the Governmental Activities and Business-
Type Activities were reduced by $20,340,365 and $280,365, respectively. The beginning net position
of the Parking Services Fund was also reduced by $280,365 and the OPEB/Retiree Medical Fund
increased by $9,101,000 as part of this implementation. See Note 11 for additional information.
51
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
R. 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.
52
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 2 - CASH AND INVESTMENTS (Continued)
B. Classification
Cash and investments as of June 30, 2017, 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 $68,083,546
Restricted cash and investments 702,161
Total Primary Government Cash and Investments 68,785,707
San Rafael Sanitation District (Component Unit)
Cash and investments available for operations 24,536,913
Total San Rafael Sanitation District Cash and Investments 24,536,913
Statement of Fiduciary Net Position (separate statement):
Successor Agency to the Redevelopment Agency:
Cash and investments available for operations 87,344
Restricted cash and investments 0
Total Successor Agency Cash and Investments 87,344
Pt. San Pedro Road Assessment District Agency Fund 289,768
Total Fiduciary Cash and Investments 377,112
Total Cash and Investments $93,699,732
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.
53
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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.
54
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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.
55
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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, 2017:
(a)(b)(c)
Level 1 Level 2 Level 3 Total
City:
Money Market Mutual Funds $70,094 $70,094
U.S. Treasury Notes $4,389,785 4,389,785
U.S. Agency Securities and Instruments 14,565,516 14,565,516
Medium-Term Corporate Notes 4,054,295 4,054,295
Investment in Pt. San Pedro Bonds $1,520,800 (d)1,520,800
Total Investments $4,389,785 $18,689,905 $1,520,800 24,600,490
Local Agency Investment Fund 34,171,960
County Investment Pool 77,038
Cash in banks and on hand 9,936,219
Total City and Investments 68,785,707
Fiduciary:
Total Investments 0 0
Cash in banks and on hand 377,112
Total Fiduciary Cash and Investments 377,112
Total City and Fiduciary Cash and Investments 69,162,819
San Rafael Sanitary District:
County Investment Pool 24,536,913
Total District's Cash and Investments 24,536,913
Total Cash and Investments $93,699,732
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 frequency 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 participants 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.
56
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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 $70,094 $70,094
Local Agency Investment Fund 34,171,960 34,171,960
County Investment Pool 77,038 77,038
U.S. Treasury Notes 2,495,880 $1,893,905 4,389,785
U.S. Agency Securities and Instruments 5,998,990 8,566,526 14,565,516
Medium-Term Corporate Notes 1,502,835 2,551,460 4,054,295
Investment in Pt. San Pedro Bonds 1,520,800 1,520,800
Total Investments $44,316,797 $14,532,691 58,849,488
Cash in banks and on hand 9,936,219
Total City and Investments 68,785,707
Fiduciary:
Total Investments 0 0
Cash in banks and on hand 377,112
Total Fiduciary Cash and Investments 377,112
Total City and Fiduciary Cash and Investments 69,162,819
San Rafael Sanitary District:
County Investment Pool 24,536,913
Total District's Cash and Investments 24,536,913
Total Cash and Investments $93,699,732
57
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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, 2017, these investments matured in an average of 194 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, 2017.
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.
58
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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, 2017, 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 A+AA-AA AA+Aaa/AAA A1/P1 Total
City (except Fiduciary Funds):
Money Market Mutual Funds $70,094 $70,094
County Investment Pool 77,038 77,038
U.S. Treasury Notes $4,389,785 4,389,785
U.S. Agency Securities and Instruments 14,565,516 14,565,516
Medium-Term Corporate Notes $495,895 $2,061,665 $500,340 $498,205 498,190 4,054,295
Total rated investments $495,895 $2,061,665 $500,340 $498,205 $19,453,491 $147,132 $0 23,156,728
Not rated:
Local Agency Investment Fund 34,171,960
Investment in Pt. San Pedro Bonds 1,520,800
Cash in banks and on hand 9,936,219
Total City Cash and Investments 68,785,707
Fiduciary:
Money Market Mutual Funds $0 -
Total rated investments $0 0
Not rated:
Local Agency Investment Fund -
Cash in banks and on hand 377,112
Total Fiduciary Cash and Investments 377,112
Total City and Fiduciary Cash and Investments 69,162,819
AAA/V1
Component Unit
San Rafael Sanitary District:
Investment in County Pool (Rated AAA/V1)24,536,913 24,536,913
Total District's Cash and Investments $24,536,913 24,536,913
Total Cash and Investments $93,699,732
H. Concentration Risk
Included in the table at Note G above are the following significant investments in any one issuer
other than U. S. Treasury securities, mutual funds, and external investment pools.
Reporting Unit Issuer Investment Type Amount
Entity-wide Federal Home Loan Bank Federal Agencies Obligation $5,748,348
Federal Farm Credit Bank Federal Agencies Obligation 3,726,430
59
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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, 2017, were as follows:
From Fund To Fund Amount
General Fund Non-Major Governmental Funds $1,796,089 (A)
General Fund Essential Facilities Capital Projects Fund 5,417,454 (B)
Gas Tax Fund General Fund 400,000 (C)
Traffic and Housing Mitigation Fund 228,400 (D)
Parking Services Enterprise Fund General Fund 436,000 (C)
Non-Major Governmental Funds 100,000 (A)
Internal Service Fund General Fund 376,520 (C)
Non-Major Governmental Funds General Fund 169,783 (E)
Non-Major Governmental Funds 37,761 (F)
Building Maintenance Internal Service Fund 80,275 (F)
Gas Tax Fund 325,000 (G)
$9,367,282
(D) Transfer to Traffic Mitigation for Freitas-Las Gallinas Intersection Improvement.
(E) Transfer residual funds in programs now reported in General Fund.
(G) Transfer from State Land Fund to Gas Tax Fund for right of way purchase.
(A) Transfer to the non-Major Governmental Funds were for administrative costs, grant matching, recreation and other program support.
(B) Transfer to the Essential Facilities Capital Projects Fund were for the Fire Station 52 and 57, and Public Safety Center projects.
(C) Transfers to the General Fund were for street maintenance support, administrative costs and pension obligation bond debt service principal
and interest payment.
(F) Transfer Measure A Open Space to Victor Jones Park Improvements and Albert Park Improvements.
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.
60
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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, 2017, these loans totaled:
Employee Loans $6,350
Centertown Associates 230,066
One "H" Street Associates 48,573
Fire Chief Loan 224,623
Marin Housing Authority 145,000
Total $654,612
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, 2017, the balance of the employee loans receivable
was $6,350.
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, 2017, 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,
2017, the balance of this loan was $48,573.
61
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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, 2017, the balance
of the loan was $224,623.
F. Marin Housing Authority Loans
On April 19, 2016, the City made a loan to the Marin Housing Authority for a low and moderate
income unit, in the amount of $145,000. As with other loans made under this program, this loan is
due upon the sale of the unit. As of June 30, 2017, the balance of this loan was $145,000.
G. 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, 2017 is
$4,527,836, and is composed of the following:
Long-term receivable from San Rafael Sanitation District:
Defined benefit pension liability allocation (GASB 68) $3,623,716
Other post-employment benefit liability allocation (GASB 75) 904,120
Total long-term receivable from San Rafael Sanitation District $4,527,836
62
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 5 - CAPITAL ASSETS
Changes in capital assets during the fiscal year consisted of:
Balance Balance
June 30, 2016 Additions Retirements Transfers June 30, 2017
Governmental Activities
Capital assets not being depreciated:
Land $83,261,168 $401,191 $83,662,359
Construction in progress 11,519,721 11,574,687 ($207,189) ($11,040,344) 11,846,875
Total capital assets not being depreciated 94,780,889 11,975,878 (207,189) (11,040,344) 95,509,234
Capital assets being depreciated:
Land improvements 9,020,097 9,020,097
Buildings and structures 41,667,102 1,228,402 42,895,504
Machinery and equipment 18,476,428 961,998 (597,431)18,840,995
Infrastructure 187,212,938 9,811,942 197,024,880
Total capital assets being depreciated 256,376,565 961,998 (597,431) 11,040,344 267,781,476
Less accumulated depreciation for:
Land improvements (5,800,084) (270,055)(6,070,139)
Buildings and structures (17,086,815) (1,203,468)(18,290,283)
Machinery and equipment (12,126,787) (1,142,308) 577,488 (12,691,607)
Infrastructure (122,058,098) (4,674,418)(126,732,516)
Total accumulated depreciation (157,071,784) (7,290,249) 577,488 11,040,344 (163,784,545)
Total net capital assets being depreciated 99,304,781 (6,328,251) (19,943) 11,040,344 103,996,931
Total governmental activity capital assets $194,085,670 $5,647,627 ($227,132)$199,506,165
Balance Balance
June 30, 2016 Additions Retirements Transfers June 30, 2017
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 1,266,865 ($54,795)1,212,070
Total capital assets being depreciated 11,980,679 (54,795)11,925,884
Less accumulated depreciation for:
Buildings and structures (2,894,596) ($205,363)(3,099,959)
Machinery and equipment (1,007,821) (50,145) 54,795 (1,003,171)
Total accumulated depreciation (3,902,417) (255,508) 54,795 (4,103,130)
Total net capital assets being depreciated 8,078,262 (255,508)7,822,754
Total business-type activity capital assets $16,699,115 ($255,508)$16,443,607
63
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 5 - CAPITAL ASSETS (Continued)
Balance Transfers & Balance
June 30, 2016 Additions Retirements Adjustments June 30, 2017
San Rafael Sanitation District
Capital assets not being depreciated:
Land and easements $115,329 $115,329
Construction in progress 3,204,067 $6,393,082 ($9,325,117)272,032
Total capital assets not being depreciated 3,319,396 6,393,082 (9,325,117)387,361
Capital assets being depreciated:
Subsurface lines 28,364,238 70,932 6,745,103 35,180,273
Sewage collection facilities 39,499,143 49,533 2,580,013 42,128,689
General plant and administration 1,649,897 3,213 1,653,110
Total capital assets being depreciated 69,513,278 123,678 9,325,116 78,962,072
Less accumulated depreciation for:
Subsurface lines (10,812,495) (485,276)(11,297,771)
Sewage collection facilities (17,631,349) (931,117)(18,562,466)
General plant and administration (963,773) (133,105)(1,096,878)
Total accumulated depreciation (29,407,617) (1,549,498)(30,957,115)
Total net capital assets being depreciated 40,105,661 (1,425,820)9,325,116 48,004,957
Total District's capital assets $43,425,057 $4,967,262 ($1) $48,392,318
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 $141,713
Public safety 857,493
Public works and parks 5,480,853
Community development/redevelopment 53,342
Culture and recreation 756,848
Total Governmental Activities $7,290,249
Business-type Activities
Parking services $255,508
Total Business-type Activities $255,508
64
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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, 2017, are as follows:
Authorized Balance Balance Current
and Issued June 30, 2016 Additions Retirements June 30, 2017 Portion
Governmental Activities:
2010 Taxable Pension Obligation Bonds
6.00%-6.25%, due 7/1/2025 $4,490,000 $4,490,000 $100,000 $4,390,000 $205,000
Total Pension Obligation Bonds 4,490,000 100,000 4,390,000 205,000
PG & E City Hall HVAC Retrofit Note Payable
0.00%, due 11/30/2023 334,585 245,838 33,280 212,558 $33,280
PG & E Street Light Retrofit Note Payable
0.00%, due 8/31/2019 233,896 132,657 41,892 90,765 41,892
Total Governmental Long-term Debt $4,868,495 $175,172 $4,693,323 $280,172
Business-type Activities
PG & E Parking Lot Lighting Retrofit Note Payable
0.00%, due 11/30/2023 $66,380 $48,204 $6,816 $41,388 $6,816
2012 Authority Lease Revenue Refunding Bonds
2.00-4.00%, due 4/1/2033 6,750,000 5,705,000 260,001 5,444,999 270,000
Less: unamortized bond discount (12,147)(725)(11,422)
Total Enterprise Fund Debt $5,741,057 $266,092 $5,474,965 $276,816
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%. Principal payments are due annually on
July 1 and interest is payable semiannually on January 1 and July 1. 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.
65
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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, 2017, are as follows:
For the Year Governmental Activities Business-type Activities
Ended June 30 Principal Interest Principal Interest
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 538,280 162,031 306,816 152,588
2023 - 2027 2,386,158 303,443 1,652,307 617,982
2028 - 2032 1,945,000 314,412
2033 435,000 17,400
Totals $4,693,323 $1,387,172 5,486,387 $1,797,784
Reconciliation of Long-term debt:
Less: unamortized discount (11,422)
$5,474,965
66
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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, 2017
San Rafael Redevelopment Agency 162-175 Belvedere
Multifamily Housing Revenue Bonds-2000A Apartments $3,590,529 $1,084,330
California Statewide Communities
Development Authority Revenue Bonds-2002 St. Marks School 5,605,000 3,695,000
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 4,880,000
San Rafael Redevelopment Agency Martinelli House
Multifamily Housing Revenue Bonds-2007 Series A Project 6,000,000 1,944,047
Multifamily Housing Revenue Bonds-2007 Series B Martinelli House 1,000,000 205,575
Pt. San Pedro Road Median Landscaping Pt. San Pedro Road 1,750,000 1,520,800
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.
67
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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
68
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
Detailed classifications of the City’s fund balances, as of June 30, 2017, are below:
Special Revenue Funds
General Fund
Traffic and
Housing
Mitigation Gas Tax
Essential Facilities
Capital Projects
Fund
Other
Governmental
Funds Total
Fund balances:
Nonspendable:
Loans receivable $230,973 $230,973
Prepaids 277,473 277,473
Total Nonspendable 508,446 508,446
Restricted for:
Assessment District capital projects $300,780 300,780
Baypoint Lagoons Assessment District 238,326 238,326
Bedroom tax capital projects 76,845 76,845
Childcare 1,370,144 1,370,144
Development services 683,286 683,286
Emergency medical services 1,744,530 1,744,530
1997 financing authority revenue bonds debt service 147,797 147,797
Gas tax $6,723,696 6,723,696
Grants 753,121 753,121
Household hazmat facility 313,365 313,365
Library 632,065 632,065
Library assessment 667,572 667,572
Loch Lomond Assessment District 660,266 660,266
Low and Moderate Income Housing 910,350 910,350
Mariposa Assessment District debt service 16,573 16,573
Measure A Open Space 369,235 369,235
Parkland dedication 449,188 449,188
Peacock Gap Assessment District debt service 2,875 2,875
Public safety 158,500 158,500
Pt. San Pedro - Maintenance Portion 151,283 151,283
Recreation revolving 118,091 118,091
Storm water 189,087 189,087
Traffic and housing mitigation $9,135,430 9,135,430
Total Restricted 9,135,430 6,723,696 9,953,279 25,812,405
(Continued)
69
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
Special Revenue Funds
General Fund
Traffic and
Housing
Mitigation Gas Tax
Essential Facilities
Capital Projects
Fund
Other
Governmental
Funds Total
Committed to:
Capital improvement capital projects $3,463,772 $3,463,772
Park capital projects 27,936 27,936
Total Committed 3,491,708 3,491,708
Assigned to:
Contractual commitments $50,581 50,581
MOU - One time payment 500,000 500,000
Emergency and cash flow 7,200,000 7,200,000
Infrastructure reserve 600,000 600,000
General plan / long range planning 1,786,478 1,786,478
Measure E - Public Safety Facility 4,763,886 4,763,886
Open space capital projects 115,103 115,103
Total Assigned 14,900,945 115,103 15,016,048
Unassigned to:
General Fund 1,295,041 1,295,041
1,295,041 1,295,041
Total Fund Balances $16,704,432 $9,135,430 $6,723,696 $13,560,090 $46,123,648
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.
70
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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.
71
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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, 2017 were as follows:
Employer Employee
Contribution Rate Contribution Rate Benefit Basis
City of San Rafael Misc Tier 1 50.40%0.00% - 16.82% 2.7% @ 55 Highest year
City of San Rafael Misc Tier 2 46.81%7.89% - 12.57% 2.0% @ 55 Average three highest years
City of San Rafael Fire Tier 1 75.67%0.00% - 19.79% 3.0% @ 55 Highest year
City of San Rafael Fire Tier 2 72.59%11.34% - 17.69% 3.0% @ 55 Average three highest years
City of San Rafael Safety Police Tier 1 74.79%00.00% - 19.79% 3.0% @ 55 Highest year
City of San Rafael Safety Police Tier 2 75.53%11.34% - 17.69% 3.0% @ 55 Average three highest years
PEPRA Misc 42.11%9.18% - 10.18% 2.0% @ 62 Average three highest years
PEPRA Safety 64.88%14.53%2.7% @ 57 Average three highest years
These rates were determined by MCERA, based on the actuarial valuation dated June 30, 2015.
The actual rate of return on investments during that year was 4.99% on a market value basis net
of investment expenses, as compared to the 7.25% assumption.
The City uses the actuarially determined percentages of payroll to calculate and pay contributions
to MCERA. Contributions to the plan from the City were $20,003,002 for the year ended June 30,
2017, based on a total payroll of $41,553,242, of which $32,885,135 represented the basis for the
plan contributions. Of the total payroll subject to plan contributions, $1,305,530 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 (15 years remaining as of June 30,
2015), except for the additional UAL attributable to the outstanding unfunded actuarial loss from
2009, which is being amortized over a separate closed period (currently 23 years).
Effective with the June 30, 2014 valuation, any new sources of UAL due to actuarial gains and
losses or method changes are amortized over a closed 24-year period (23 years remaining as of
June 30, 2015, with a 5-year ramp up period at the beginning of the period, a 4-year ramp down at
the end of the period, and 15 years of level payments as a percentage of payroll between the
ramping periods. This new amortization method for gains and losses is similar to a 20-year
amortization period with level payments as a percentage of payroll, in conjunction with a
traditional 5-year asset smoothing.
Assumption changes are amortized over a closed 22-year period, with a 3-year ramp up period, 2-
year ramp down period, and 17 years of level payments as a percentage of payroll.
72
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 9 – PENSION PLANS (Continued)
D. Pension Liability and Pension Expense
The City’s net pension liability (NPL) has been determined for the financial reporting period
ended June 30, 2017 based on the following methodology: The City’s NPL as of June 30, 2015
was updated to the measurement date of June 30, 2016, using the actual City’s plan assets as of
June 30, 2016 and estimating the change in the City’s liabilities between July 1, 2015 and June
30, 2016. This estimate is based on a projection of the City’s long term contributions to the
pension plan relative to the projected contributions of all participating employers.
The resulting NPL for the City under this calculation is $167,054,850, or 34.9538% of the total
MCERA NPL of $477,930,440 (reference MCERA’s GASB 67/68 report as of June 30, 2016).
This compares to the previous year’s NPL of $142,323,127, or 36.7394% of the total MCERA
NPL of $387,385,550 (reference MCERA’s GASB 67/68 report as of June 30, 2015).
In addition to the reporting of the NPL as of June 30, 2017, the City reported deferred inflows of
$22,096,113 and deferred outflows of $55,004,455 as of the measurement date June 30, 2016.
The City reported post-measurement date outflows of $20,003,001 from actual fiscal year 2016-
2017 pension contributions. Deferred inflows include deferred investment gains and adjustments
to assumptions based on actual positive results. Deferred inflows have a positive impact on net
assets (offsetting the NPL) and will be recognized in future reporting periods. Deferred outflows
include deferred investment losses, adjustments to assumptions based on actual negative results,
and contributions made after the measurement date. Deferred outflows have a negative impact on
net assets (similar to the NPL) and will be recognized in future reporting periods. The net impact
of these pension liability related entries on the City’s Statement of Net Position before allocations
to the San Rafael Sanitation District is $114,143,507. After allocations to the San Rafael
Sanitation District, the net impact on the City’s Statement of Net Position is $110,519,791.
Under GASB 68, the City’s pension expense is based on the Plan’s pension expense, adjusted for
the City’s actual contributions and net pension liability. MCERA reported the Plan’s pension
expense to be $85,290,611, of which $30,799,273, or 34.9538%, is the City’s annual pension
expense for the reporting year.
Three components are used to calculate pension expense: (1) changes in the net pension liability;
(2) changes in benefit terms (if any): and (3) changes in actuarial assumptions and experience.
Pension expense is calculated using a different methodology than that used to derive the
actuarially determined annual contribution to the Plan. Actual pension contributions during the
reporting year were $20,003,001. Because pension expense is affected by annual changes in the
net pension liability, volatility is to be expected. For the current measurement period, investment
returns below the assumed rate were responsible for the increase in net pension liability and had a
corresponding impact on pension expense.
73
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 9 – PENSION PLANS (Continued)
The table below provides a summary of the key results during the reporting period:
Measurement Date Measurement Date
Description 6/30/2016 6/30/2015
Net Pension Liability $167,054,850 $142,323,127
Deferred Inflows 22,096,113 33,817,086
Deferred Outflows (55,004,455) (39,886,216)
Impact on Net Position before Deferred Outflows from Contributions 134,146,508 136,253,997
Additional Deferred Outflows - Contributions Subsequent to Measurement Date (20,003,001) (19,339,577)
Impact on Statement of Net Position before Allocations 114,143,507 116,914,420
Allocation of NPL to SRSD 5,320,236 4,695,240
Allocation of Deferred Inflows (measurement date) to SRSD 703,700 1,115,626
Allocation of Deferred Outflows (measurement date) to SRSD (1,751,740) (1,315,846)
Impact on Net Position before Allocation of Deferred Outflows
from Contributions to SRSD 4,272,196 4,495,020
Allocation of Additional Deferred Outflows (Contributions) to SRSD (648,480) (638,013)
Long-Term Receivable from SRSD, due to pension obligations (see Note 4H)3,623,716 3,857,007
Impact on Statement of Net Position, net of receivable from SRSD 110,519,791 113,057,413
Pension Expense ($ Amount)30,799,273 19,107,673
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, 2016. The beginning of year measurement of TPL is based on the
actuarial valuation as of June 30, 2015. The TPL at the end of the measurement year, June 30,
2016, is also measured as of the valuation date of June 30, 2015, and projected to June 30, 2016.
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, 2015. The FNP at the end
of the measurement year, June 30, 2016, is also measured as of the valuation date of June 30,
2015, and projected to June 30, 2016.
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.
74
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 9 – PENSION PLANS (Continued)
Actuarial assumptions:
The total pension liability as of June 30, 2016 was determined by an actuarial valuation as of June
30, 2015, using the following actuarial assumptions applied to all prior periods included in the
measurement. The key assumptions in the valuation were:
Actuarial assumptions:
Expected Return on Assets 7.25 percent per year, net of investment expenses
Discount Rate 7.25 percent per year
Price Inflation 2.75% per year
Salary Increases 3% per year plus merit component based on employee classification
and years of service.
Administrative Expenses Administrative expenses in the actuarial valuation are assumed to be
$4.635 million for FY 2015-16, to be split between employees and
employers based on their share of the overall contributions.
Administrative expenses shown in this report are based on the actual
FY 2015-16 amounts.
Post-Retirement COLA Post-retirement COLAs are assumed at a rate of 2.7% for members
with a 4% COLA cap, 2.6% for members with a 3% COLA cap, and
1.9% for members with a 2% COLA cap.
Mortality Rates for Rates of mortality for active members are specified by CalPERS 2014
Healthy Members Pre-Retirement Non-Industrial Death Rates (plus Duty-Related Death
and Inactives 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.
These assumptions constitute a slight change from those used in prior actuarial valuations: The
investment rate of return assumption of 7.25% coupled with an inflation assumption of 3.00%.
75
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 9 – PENSION PLANS (Continued)
Asset Allocation Policy and Expected Long-term Rate of Return by Asset Class
The 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, 2016:
Long-Term
Expected Rate
Target Long-Term Expected of Return
Asset Class Allocation Real Rate of Return (with the effect of inflation)
Domestic Equity 32% 5.10% 7.35%
International Equity 22% 5.30% 7.55%
Fixed Income 23% 0.75% 3.00%
Real Estate 8% 3.75% 6.00%
Real Assets 7% 3.55% 5.80%
Private Equity 8% 5.90% 8.15%
Total 100%
The Long-Term returns are calculated using a 10-year geometric return derived from arithmetic
returns and the associated risk (standard deviation).
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 (23 years remaining as of the June
30, 2015 actuarial valuation) and an amount necessary to amortize the remaining Unfunded
Actuarial Liability as a level percentage of payroll over a closed period (15 years remaining as of
the June 30, 2015 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 71%. A one
percent increase in the discount rate decreases the TPL by approximately 11% and decreases the
NPL by approximately 59%.
76
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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 $1,019,941,989 $900,629,287 $802,536,748
Fiduciary Net Position 733,574,437 733,574,437 733,574,437
Net Pension Liability $286,367,552 $167,054,850 $68,962,311
Fiduciary Net Position as a Percentage of the Total Pension Liability 71.9%81.5%91.4%
Sensitivity of Net Pension Liability to Changes in Discount Rate
Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Pension
Resources
The impact of experience gains or losses and assumption changes on the Total Pension Liability
(TPL) are recognized in the proportionate share of the pension expense over the average expected
remaining service life of all active and inactive members of the plan. As of the measurement date,
this recognition period was 4 years.
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
Differences between expected and actual experience $5,483,071
Changes in assumptions $25,298,450
Change in proportion 14,629,279 4,966,639
Changes in proportion and difference between City
contributions and proportionate share of contributions 11,646,403
Actual FY 16-17 contributions (post measurement date) 20,003,001
Net difference between projected and actual earnings
on pension plan investments 15,076,726
Deferred Inflows and Outflows Before Allocations $75,007,456 $22,096,113
Allocation to SRSD
Allocation of Deferred Inflows (measurement date) $703,700 $1,751,740
Allocation of Deferred Outflows (measurement date) 648,480
Net Deferred Inflows and Outflows $74,303,756 $19,695,893
77
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 9 – PENSION PLANS (Continued)
The $20,003,001 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, 2018. 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
2018 $9,222,804
2019 8,905,878
2020 7,294,038
2021 7,485,622
Thereafter
$32,908,342
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 $98,186. The total covered payroll of
employees participating in the plan for the year ended June 30, 2017, was $2,618,290. The total
payroll for the year was $41,553,242.
78
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS
At June 30, 2017, net OPEB liability and related deferred outflows of resources and deferred
inflows of resources are as follows:
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:
Net difference between projected and
actual earnings on plan investments $772,668 $7,332 $780,000
Employer contributions made subsequent
to the measurement date 3,442,156 32,844 3,475,000
Total deferred outflows of resources $4,214,824 $40,176 $4,255,000
Net OPEB liabilities:$33,466,002 $318,998 $33,785,000
Total net OPEB liabilities $33,466,002 $318,998 $33,785,000
Plan Description
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, 2017, 684 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,
2017, 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
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Membership in the plan consisted of the following at June 30, 2017, the date of the latest actuarial
valuation:
Active plan members 336
Inactive employees or beneficiaries currently
receiving benefit payments 0
Inactive employees entitled to but not yet
receiving benefit payments 348
Total 684
Funding Policy and Actuarial Assumptions
During the fiscal year ended June 30, 2017, the City elected to early implement GASB 75,
"Accounting and Financial Reporting For Postemployment Benefits Other Than Pensions". This
Statement replaces the requirements of Statement No. 45 and establishes new accounting and
financial reporting requirements for OPEB plans. As a result, the funding policy and actuarial
assumptions presented include elements of both the historical approach and the revised approach
under GASB 75.
Under GASB 45, the City's funding policy requires a minimum annual contribution equivalent to
the annual required contribution (ARC). Under GASB 75, this changes to an actuarial determined
contribution which is made up of additional components including deferred outflows of resources
and deferred inflows of resources.
The ARC was determined as part of a June 30, 2015 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) 4.5% investment rate of return and (b) 2.75% of general inflation increase,
and (c) a healthcare trend of declining annual increases ranging from 6.7% in 2015 to 4.5% 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 19-
year fixed (closed) period for June 30, 2016 in its June 30, 2015 actuarial valuation.
80
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
The actuarial assumptions used in the June 30, 2015 valuation were based on the results of an
actuarial experience study for the period July 1, 2014 through June 30, 2015.
The long-term expected rate of return on OPEB plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rates of return (expected returns,
net of OPEB plan investment expense and inflation) are developed for each major asset class. These
ranges are combined to produce the long-term expected rate of return by weighing the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class
are summarized in the following table:
Long-Term
Expected
Long-Term Rate of Return
Target Expected (with the effect
Asset Class Allocation Real Rate of Return of inflation)
Public Equity 57% 5.96% 8.71%
Fixed Income 27% 2.65% 5.40%
TIPS 5% 2.50% 5.25%
Commodities 3% 5.20% 7.95%
REITs 8% 8.13% 10.88%
Total 100%
Assumed Long-Term Rate of Inflation 2.75%
Assumed Long-Term Investment Expenses n/a
Expected Long-Term Net Rate of Return 7.28%
Discount Rate 7.25%
The Expected Long-Term Rate of Return is provided by CalPERS’ Strategic Asset Allocation
Overview in August 2011 – Strategy 1.
Discount Rate
The discount rate used to measure the total OPEB liability was 7.25 percent. The projection of cash
flows used to determine the discount rate assumed that City contributions will be made at rates
equal to the actuarially determined contribution rates. Based on these assumptions, the OPEB plan's
fiduciary net position was projected to be sufficient to make projected benefit payments and the
plan assets are expected to be invested using the strategy to achieve the expected return.
81
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Change in Net OPEB Liability
Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2015 (Valuation Date) $48,226,000 $15,608,000 $32,618,000
Changes Recognized for the Measurement Period:
Service Cost 766,000 766,000
Interest on the total OPEB liability 3,447,000 3,447,000
Changes in benefit terms
Difference between expected and actual experience
Changes of assumptions
Contributions from the employer 2,896,000 (2,896,000)
Net investment income 157,000 (157,000)
Administrative expenses (7,000) 7,000
Benefit payments and refunds (2,896,000) (2,896,000) -
Net Changes during July 1, 2015 to June 30, 2016 1,317,000 150,000 1,167,000
Balance at June 30, 2016 (Measurement Date)$49,543,000 $15,758,000 $33,785,000
Increase (Decrease)
The benefit payments and refunds includes implied subsidy benefit payments in the amount of
$702,000.
Sensitivity of the net OPEB liability to changes in the discount rate
The following presents the net OPEB liability of the City, as well as what the City's net OPEB
liability would be if it were calculated using a discount rate that is 1-percentage-point lower
(6.25 percent) or 1-percentage-point higher (8.25 percent) than the current discount rate:
Discount Rate -1% Current Discount Discount Rate +1%
(6.25%) Rate (7.25%) (8.25%)
$39,500,000 $33,785,000 $28,996,000
Plan's Net OPEB Liability/(Asset)
Sensitivity of the net OPEB liability to changes in the health care cost trend rates
Discount Rate -1% Healthcare Cost Discount Rate +1%
Trend Rates
$30,786,000 $33,785,000 $37,160,000
Plan's Net OPEB Liability/(Asset)
Detailed information about the OPEB plan’s fiduciary net position is available in the separately
issued plan financial report.
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
related to OPEB
Components of OPEB Expense for fiscal year 2016-2017 were as follows:
Service Cost $766,000
Interest on Total OPEB Liability 3,447,000
Projected earning on investments (1,132,000)
Employee contributions -
Administrative expense 7,000
Change in benefits -
Recognition of deferred outflows/inflows:
Experience -
Assumptions -
Asset Returns 195,000
OPEB Expense $3,283,000
Components of deferred outflows of resources and deferred inflows of resources related to OPEB at
June 30, 2017 were as follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Net difference between projected and actual earnings on
OPEB plan investments $780,000
Employer contributions made subsequent to the measurement date 3,475,000
Total $4,255,000
The difference between projected OPEB plan investment earnings and actual earnings is amortized
over a five year period. The remaining gains and losses are amortized over the expected average
remaining service life. The expected average remaining service life for the 2015-16 measurement
period is 4.0 years.
$3,475,000 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30,
2018. Amounts reported as deferred outflows of resources and deferred inflows of resources related
to OPEB will be recognized as future OPEB expense as follows:
Measurement Period Deferred Outflows Deferred Inflows
Ended June 30 of Resources of Resources
2018 $195,000
2019 195,000
2020 195,000
2021 195,000
Thereafter
$780,000
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
The table below provides a summary of the key results during this reporting period.
Measurement Date Measurement Date
Description June 30, 2016 June 30, 2015
Net OPEB Liability $33,785,000 $32,618,000
Deferred Inflows - -
Deferred Outflows (780,000) -
Impact on Net Position before deferred contributions 33,005,000 32,618,000
Additional Deferred Outflows - Contributions subsequent to measurement date (3,475,000) -
Impact on Statement of Net Position before Allocations 29,530,000 32,618,000
Allocation of NOL to SRSD 1,034,395 1,002,000
Allocation of Deferred Inflows (measurement date) to SRSD - -
Allocation of Deferred Outflows (measurement date) to SRSD (23,881) -
Impact on Net Position before deferred contributions to SRSD 1,010,514 1,002,000
Allocation of Additional Deferred Outflows (contributions) to SRSD (106,394) -
Long-Term Receivable from SRSD, due to OPEB obligations (see Note 4H)904,120 1,002,000
Impact on Statement of Net Positions, net of receivable from SRSD 28,625,880 31,616,000
OPEB Expense ($ Amount)3,283,000 2,148,000
Covered Payroll ($ Amount)31,106,000 32,906,000
Summary of Results
Actuarial data is comprised from a variety of complex inputs. It is therefore subject to change
between measurement dates. As a result, the Net OPEB Liability used to calculate the SRSD
allocation percentage in fiscal year ended June 30, 2016 ($32,727,000) varies slightly from the
figure reported in the actuarial report dated June 30, 2017 ($32,618,000) by $109,000.
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.
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
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 16.44% or $221,318 for
the year ended June 30, 2017. Financial statements of the System can be obtained from the
County Librarian, Marin County Free Library, Marin County Civic Center, 3501 Civic Center
Drive, San Rafael, California 94903.
B. The Marin General Services Authority (MGSA)
The MGSA was formed by the County of Marin and twelve local agencies to acquire street light
facilities, operate the facilities during an eminent domain action against PG&E, and coordinate
the subsequent transfer of the facilities to the individual local agencies. Each of the local agency’s
share of contributions was based on the number of street lights to be acquired in the local
agency’s individual jurisdiction in relation to the total number of street lights to be acquired by
the MSLAJPA. MGSA services now include street light maintenance, abandoned vehicle
abatement, taxicab regulation and administrative responsibility for MarinMap. The City’s
contribution to MGSA was $3,134 for the year ended June 30, 2017. 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 $314,161 of the Authority’s operation and debt service for the fiscal
year ended June 30, 2017. 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.
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
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 $32,134 for the year ended June 30, 2017.
Financial statements of the Agency can be obtained at 555 Northgate Drive, Suite 230, San
Rafael, California 94903.
F. The Marin County Hazardous and Solid Waste Joint Powers Authority
The Authority was established by the County, local cities, and waste franchising districts to
finance, prepare and implement source reduction and recycling elements on a county-wide
integrated waste management plan as required by State Assembly Bill 939. The City’s
contribution to the Authority was $17,849 for the year ended June 30, 2017. Financial statements
of the Authority can be obtained at 3501 Civic Center Drive, San Rafael, California 94903.
G. Central Marin Sanitation Agency (CMSA)
In October 1979, the District entered into a joint powers agreement with three neighboring
sanitation agencies in central Marin County forming the Central Marin Sanitation Agency
(CMSA). CMSA serves as a regional wastewater treatment plant for its four member agencies
and San Quentin Prison (SQ) and is governed by a six-member Board of Commissioners, two
appointed by the Board of Directors of the San Rafael Sanitation District (SRSD), two appointed
by the Board of Directors of the San Rafael Sanitation District No. 1 (SD 1), one appointed by the
governing board of Sanitary District No. 2 (SD 2), and one appointed by the City Council of the
City of Larkspur (Larkspur).
Total project costs for the joint venture were funded from federal (75%) and state (12.5%) clean
water grants and from local shares (12.% total) allocated among the member agencies and SQ
based upon the weighted average of the strength and volume of sewage flows per member at
inception of the project. Final individual local shares of total project costs were approximately
$7.6 million for SRSD, $6.3 million for SD 1, $1.6 million for SD 2, $1 million for Larkspur, and
$1.4 million for SQ. CMSA derives its annual funding for its operations and capital programs
almost exclusively from service charges to member agencies. The joint powers agreement does
not provide an explicit measurable right as required to establish an equity interest for any of the
joint venture participants, and in addition to, stipulates that all excess capital funds, if any, and all
excess administration, operations and maintenance funds from whatever source, if any, are the
property of CMSA.
86
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
The financial statements of the Agency are available at the CMSA office. Condensed financial
information for the Agency is presented below for June 30, 2016 and 2015, the most recent
information available.
2016 2015
Total assets $106,391,299 $109,050,874
Deferred outflows of resources 2,092,186 936,613
Total liabilities (60,370,523) (62,387,928)
Deferred inlows of resources (2,487,504) (2,254,404)
Net position $45,625,458 $45,345,155
Total revenues $16,952,527 $17,873,113
Total expenses (16,834,929) (16,220,247)
Total contributions and adjustments 162,705 415,845
Prior period adjustment - GASB 68 - (7,278,030)
Change in net position $280,303 (5,209,319)
NOTE 13 - RISK MANAGEMENT
A. City
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.
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 $119,773,465. 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, 2017, the City
contributed $278,096 for coverage during the current year and received a refund of $49,910 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.
87
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 13 - RISK MANAGEMENT (Continued)
Insurance Internal Service Funds and Financial Reporting
The City records estimated liabilities for claims filed up to the amounts for which it retains risk in
the General Liability and Workers Compensation Internal Service Funds. Charges to the General
Fund and other funds are based on relative general liability and workers compensation risk
associated with the activities of each fund. Charges are recorded in the funds as expenditures or
expenses and as revenues in the respective internal service funds.
The Governmental Accounting Standards Board (GASB) requires municipalities to record their
liability for uninsured claims and to reflect the current portion of this liability as an expenditure in
their financial statements. As discussed above, the City has coverage for such claims, but it has
retained the risk for the deductible or uninsured portion of these claims.
The City’s liability for uninsured general liability claims and workers’ compensation claims,
including claims incurred but not reported, are reported in the Statements of Net Position.
General Workers'Totals, as of June 30
Liability * Compensation ** 2017 2016
Balance, beginning of year $2,543,655 $6,044,911 $8,588,566 $7,319,418
Current year claims and changes
in estimates 696,685 1,181,591 1,878,276 3,111,209
Claims paid (658,811) (1,060,693) (1,719,504) (1,842,061)
Balance, end of year $2,581,529 $6,165,809 $8,747,338 $8,588,566
Due in one year $1,226,194 $1,427,094 $2,653,288 $2,129,125
Due in more than one year 1,355,335 4,738,715 6,094,050 6,459,441
Total claim liabilities $2,581,529 $6,165,809 $8,747,338 $8,588,566
* Liability based on an actuarial valuation as of December 31, 2015, extrapolated to June 30, 2016
** Liability based on an actuarial valuation as of February 29, 2016, extrapolated to June 30, 2016
The claims settlements have not exceeded insurance coverage for the past three years.
B. District
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction
of assets; errors and omissions; injuries to employees and natural disaster. The District
participates in a joint powers agreement with other entities forming the California Sanitation Risk
Management Authority (CSRMA), a public entity risk pool operating as a common risk
management and insurance program for 60 member entities. CSRMA is governed by a Board of
Directors composed of one representative from each member agency and meets three times per
year in conjunction with conferences of the California Association of Sanitation Agencies. The
Board controls the operations of CSRMA including selection of management and approval of
operating budgets, independent of any influence by member entities.
88
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 13 - RISK MANAGEMENT (Continued)
The District pays annual premiums to CSRMA for its primary insurance and property insurance
programs. Primary and property insurance programs are fully insured wherein CSRMA
purchases insurance as a group thereby reducing its costs. CSMRA provides both fully insured
and pooled insurance programs for its participating member entities. Because all employees of
the District are contracted employees from the City of San Rafael, workers’ compensation
insurance is not carried by the District but is provided through the City.
The District’s primary and property insurance programs transfer risk to commercial insurance
policies for claims above deductibles, while the District retains risk for claims to the extent of
deductibles. Settled claims for CSRMA have not exceeded coverage in any of the past three
fiscal years.
The following summarizes active insurance policies as of June 30, 2017 together with coverage
limits for each insured event:
Insurance Program Limits Coverage Description
CSRMA - Allied World Ins.$3,000,000 Gen/Mgt liability - aggregate
CSRMA - Allied World Ins.$1,000,000 Gen/Mgt liability - occurrence
CSRMA - Allied World Ins.$1,000,000 Auto liability - accident
CSRMA - Allied World Ins.$4,000,000 Excess liability
CSRMA - Public Entity Property
Insurance Program (P.E.P.I.P.) $12,157,866 Special form property
CSRMA - Illinois Union Ins.$25,000,000 Pollution liability - tier 1
CSRMA - Illinois Union Ins.$2,000,000 Pollution liability - tier 2
CSRMA - Lloyds of London $2,000,000 Cyber liability - third party
CSRMA - Lloyds of London $2,000,000 Cyber liability - third party
CSRMA - Travelers Ins.$25,000 Identity theft
The financial statements of CSRMA are available at their office: 100 Pine Street, 11th Floor, San
Francisco, CA 94111. Condensed financial information for CSRMA is presented below for the years
ended June 30, 2016 and 2015 (latest information available).
2016 2015
Assets $28,336,567 $27,418,098
Liabilities (16,735,609) (16,714,638)
Net assets $11,600,958 $10,703,460
Revenues $11,843,583 $10,895,632
Expenses (10,946,085) (11,157,866)
Increase (decrease) in net assets $897,498 ($262,234)
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 14 - COMMITMENTS AND CONTINGENCIES
A. City
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, 2017.
Major Contracts
In April 2017, the City entered into a construction contract for $19,940,000 for the major
construction and renovation of two fire stations. The contract amount was reduced shortly
thereafter to its current sum of $19,098,834. The funding for this project comes from a
combination of funds set aside in the General Fund and future General Fund revenues attributable
to the Measure E Transactions and Use Tax. It is highly likely that some form of debt financing
will be required during fiscal year 2017-2018 to meet the cashflow requirements of this project.
B. District
As of June 30, 2017, SRSD had several contracts for sewer improvement projects with remaining
obligations of approximately $1,300,000, with the majority expected to be completed within the
2017/18 fiscal year.
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).
90
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 15 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
The City elected to become the Successor Agency to the Redevelopment Agency, and on
February 1, 2012, the Redevelopment Agency’s remaining net assets were distributed to the
Successor Agency. ABx1 26 requires the establishment of an Oversight Board to oversee the
activities of the Successor Agency and one was established on April 2, 2012. The activities of the
Successor Agency are subject to review and approval of the Oversight Board, which is comprised
of seven members.
The activities of the Successor Agency are reported in the Successor Agency to the
Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the
Oversight Board. The City provides administrative services to the Successor Agency to wind
down the affairs of the former Redevelopment Agency.
Pursuant to the dissolution of the City of San Rafael Redevelopment Agency, certain assets of the
Redevelopment Agency 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.
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 fund 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.
91
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 15 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
In December, 2009 of the former Agency exercised the redemption option of the Current Interest
Bonds. The outstanding balance of the Bonds was refunded, on a current basis, through the
issuance of the 2009 Tax Allocation Refunding Bonds as discussed below.
The Capital Appreciation Bonds mature annually after December 1 from 2018 to 2022, in
amounts ranging from $1,440,000 to $2,070,000 and bear interest at rates from 5.58% to 5.60%.
Interest on the Capital Appreciation Bonds will compound on each interest premium date and will
be payable solely at maturity. The bonds are secured, on parity with the 1992 and 1995 bonds
(refunded in 2002), by a pledge and a lien on tax revenues and amounts on deposit in certain
funds and accounts held by the fiscal agent.
2002 Tax Allocation Refunding Bonds
On October 9, 2002, the former Agency issued Tax Allocation Refunding Bonds in the amount of
$25,020,000. The proceeds of the bonds were used to refund the 1992 Tax Allocation Refunding
Bonds and the 1995 Tax Allocation Bonds. The Bonds mature annually each December 1 from
2002 to 2022, in amounts ranging from $540,000 to $1,920,000 and bear interest at rates ranging
from 2.00% to 5.25%. Interest is payable semiannually on June 1 and December 1. The Bonds
maturing on or after December 1, 2013, are subject to optional redemption prior to maturity, in
whole or in part, and by lot within any one maturity, prior to their respective maturity dates, on
any date on or after December 1, 2012, at a price equal to the principal amount, plus accrued
interest on the redemption date. The bonds are payable from tax revenues to be derived from the
redevelopment activities of the former Agency related to the Central San Rafael Redevelopment
Project Area.
2009 Tax Allocation Refunding Bonds
On December 14, 2009, the former Agency issued 2009 Tax Allocation Refunding Bonds in the
amount of $14,660,000 bearing interest at rates from 3.00% to 5.00%. The proceeds of the Series
2009 Bonds were used to refund the former Agency’s 1999 Tax Allocation Current Interest
Bonds, to advance funds to the City to finance street and parking improvements for the benefit of
the Agency’s Central San Rafael Redevelopment Project. Principal payments are due annually on
December 30 and interest payable semiannually on June 30 and December 30.
The Series 2009 Bonds maturing on or before December 1, 2019, are not subject to optional
redemption prior to their respective stated maturities. The Series 2009 Bonds maturing on or
after December 1, 2020, are subject to optional redemption as a whole or in part either on a pro
rata basis among maturities or in inverse order of maturity, and by lot within any one maturity,
prior to their respective maturity dates, at the option of the Agency, on any date on or after
December 1, 2019, at a price equal to the principal amount of such Series 2009 Bonds called for
redemption, together with interest accrued on the date fixed for redemption, without premium.
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 $18.9 million in remaining
debt service on the Bonds, which is scheduled to occur in 2023. For fiscal year June 30, 2017,
tax increment revenues amounted to $4.2 million which was used to make the debt service
payments of $3.6 million.
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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, 2017:
Authorized Balance Balance Current
and Issued June 30, 2016 Additions Retirements June 30, 2017 Portion
San Rafael Redevelopment Agency
1999 Tax Allocation Bonds
Capital Appreciation Bonds
5.58%-5.6%, due 12/1/2022 $2,389,004 $6,074,097 $344,411 $6,418,508
2002 Tax Allocation Refunding Bonds
2.00%-5.25%, due 12/1/2021 25,020,000 6,060,000 $1,830,000 4,230,000 $1,920,000
2009 Tax Allocation Refunding Bonds
3.00%-5.00%, due 12/1/2022 14,660,000 8,905,000 1,100,000 7,805,000 1,160,000
Add: deferred bond premium costs 559,023 79,861 479,162
Total Successor Agency Long-term Debt $21,598,120 $344,411 $3,009,861 $18,932,670 $3,080,000
Debt Service Requirements
Annual debt service requirements are shown below:
For the Year Governmental Activities
Ended June 30 Principal Interest
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 3,404,749 120,819
2023 3,586,374 36,500
Totals $19,998,517 $1,523,215
Reconciliation of long-term debt:
Less unaccreted discount ($1,545,009)
Add deferred bond premium costs 479,162
$18,932,670
93
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
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.
On March 27, 2017, the California State Department of Finance notified the Successor Agency of its
determination that Other Post Employment Benefit Obligations (OPEB) would not be allowed. The
last approved payment of $55,778, which was received in June 2017, brought the remaining balance
to $298,888. This amount was removed from the schedule of obligations of the Successor Agency as
of June 30, 2017.
The following table summarizes the activity for the fiscal year ended June 30, 2017:
Approved Balance Debt Balance
Amount June 30, 2016 Additions Retirements Cancelled June 30, 2017
Unfunded Pension Liability $1,904,431 $952,216 $190,443 $761,773
Unfunded OPEB Obligation 502,000 354,666 55,778 $298,888
Total Long-Term Obligations $1,306,882 $246,221 $298,888 $761,773
Annual repayment requirements are shown below:
For the Year
Ended June 30 Principal
2018 $190,443
2019 190,443
2020 190,443
2021 190,444
Totals $761,773
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, 2017, 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.
94
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2017
NOTE 16 – SUBSEQUENT EVENT
Energy Efficiency Loan and Master Service Agreement
On September 5, 2017, the City Council authorized a loan agreement with the California Energy
Commission for various energy efficient system upgrades to City facilities and street lights. At the
same time, the City Council approved a master services agreement with Pacific Gas and Electric
Company to perform these system upgrades in a total amount not to exceed $1,178,813. The loan
terms provide for annual interest of 1% on the outstanding balance. Disbursement of the loan is
expected in July 2019, with semi-annual repayment beginning in December 2020 and terminating in
December 2027. The planned source of repayment will be energy cost savings that result from the
improvements.
95
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2017
Schedule of the City's Proportionate Share of the Net Pension Liability
6/30/2015 6/30/2016 6/30/2017
City's proportionate share 30.0453% 36.7394% 34.9538%
Proportionate share of total pension liability $677,753,565 $907,195,058 $900,629,287
Proportionate share of fiduciary net position 603,499,779 764,871,931 733,574,437
Proportionate share of the net pension liability $74,253,786 $142,323,127 $167,054,850
Plan fiduciary net position as a percentage of the total pension liability 89.04% 84.31% 81.45%
Covered payroll $31,429,178 $31,106,414 $32,126,272
Net pension liability as a percentage of covered payroll 236.26% 457.54% 519.99%
* - The fiscal year ended June 30, 2015 was the first year of implementation, therefore only three years are shown
Last 10 years*
99
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2017
Schedule of Contributions
Defined Benefit Pension
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
2015
Contractually required contribution 17,802,358$
Contributions in Relation to the
Contractually required contribution 17,802,358
Contribution Deficiency/ (Excess)-$
Covered payroll 31,106,414$
Contributions as a percentage of
covered payroll 57.23%
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
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
100
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2017
2016
Contractually required contribution 19,339,577$
Contributions in Relation to the
Contractually required contribution 19,339,577
Contribution Deficiency/ (Excess)-$
Covered payroll 32,126,272$
Contributions as a percentage of
covered payroll 60.20%
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
Defined Benefit Pension
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
(Continued)
101
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2017
2017
Contractually required contribution 20,003,001$
Contributions in Relation to the
Contractually required contribution 20,003,001
Contribution Deficiency/ (Excess)-$
Covered payroll 32,885,135$
Contributions as a percentage of
covered payroll 60.83%
Notes to Schedule
Valuation Date / Timing 6/30/2015 (for contributions made in FY2016-2017)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2016-17):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(24 years remaining as of 6/30/14), the remaining UAL as of June 30, 2013
(16 years as of 6/30/14), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 19 years remaining as of June 30, 2016
Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 7.25%
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
Defined Benefit Pension
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
(Continued)
102
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2017
Measurement period 2015-16
Total OPEB liability
Service cost 766,000$
Interest 3,447,000
Differences between expected and actual experience -
Assumption changes -
Benefit payments, including refunds of employee contributions (2,896,000)
Net change in total OPEB liability 1,317,000
Total OPEB liability - beginning 48,226,000
Total OPEB liability - ending (a)49,543,000$
OPEB fiduciary net position
Contributions - employer 2,896,000$
Net investment income 157,000
Benefit payments, including refunds of employee contributions (2,896,000)
Administrative expense (7,000)
Net change in plan fiduciary net position 150,000
Plan fiduciary net position - beginning 15,608,000
Plan fiduciary net position - ending (b)15,758,000$
Plan net OPEB liability - ending (a) - (b)33,785,000$
Plan fiduciary net position as a percentage
of the total OPEB liability 31.81%
Covered-employee payroll 31,106,000$
Plan net OPEB liability as a percentage of covered-employee payroll 108.61%
Historical information is required only for the measurement periods for which GASB 75 is applicable.
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
103
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2017
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
2016-17
Actuarially determined contribution 3,450,000$
Contributions in relation to
the actuarially determined contribution (3,475,000)
Contribution deficiency (excess) (25,000)$
Covered-employee payroll 32,885,000$
Contributions as a percentage of
covered-employee payroll 10.49%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 06/30/17.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2015
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 19 years remaining as of June 30, 2016
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 7.25%
Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2015 actuarial valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/14 MCERA assumptions
Medical Trend Non-Medicare - 6.5% for 2017, decreasing 0.5% per year to an ultimate
rate of 4.50% for 2021 and Medicare - 6.7% for 2017, decreasing to an
ultimate rate of 4.5% for 2021 and later years
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived
PEMHCA minimum - 60%
Cap Increases None
Mortality projected fully generational with Scale MP-14, modified to
converge to ultimate improvement rates in 2022
Same as discount rate - expected City contributions projected to keep
sufficient plan assets to pay all benefits from trust
104
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.
105
CITY OF SAN RAFAEL
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and special assessments $65,690,000 $64,563,000 $64,242,440 ($320,560)
Licenses and permits 2,361,000 2,511,000 2,559,841 48,841
Fines and forfeitures 483,000 448,000 400,283 (47,717)
Use of money and properties 288,000 288,000 229,791 (58,209)
Intergovernmental 3,104,005 3,042,000 2,767,092 (274,908)
Charges for services 2,550,000 2,869,000 2,459,680 (409,320)
Other revenue 466,000 396,000 706,657 310,657
Total Revenues 74,942,005 74,117,000 73,365,784 (751,216)
EXPENDITURES
Current:
General government 9,512,718 10,941,401 10,190,580 750,821
Public safety 41,610,680 40,958,109 40,844,246 113,863
Public works and parks 11,144,863 10,943,588 11,201,655 (258,067)
Community development 4,013,962 4,154,885 3,759,564 395,321
Culture and recreation 3,076,042 3,076,042 3,077,435 (1,393)
Capital outlay 90,690
Debt service:
Principal 175,172 175,172 175,172
Interest and fiscal charges 276,513 276,513 271,263 5,250
Total Expenditures 69,900,640 70,525,710 69,519,915 1,005,795
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 5,041,365 3,591,290 3,845,869 254,579
OTHER FINANCING SOURCES (USES)
Transfers in 1,212,520 1,382,303 1,382,303
Transfers out (5,976,091) (7,213,543) (7,213,543)
Total Other Financing Sources (Uses)(4,763,571) (5,831,240) (5,831,240)
Net Change in Fund Balances $277,794 ($2,239,950) (1,985,371) $254,579
FUND BALANCES, BEGINNING OF YEAR 18,689,803
FUND BALANCES, END OF YEAR $16,704,432
106
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, 2017
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and properties $36,400 $36,400 $31,267 ($5,133)
Charges for services 600,000 715,000 204,210 (510,790)
Total Revenues 636,400 751,400 235,477 (515,923)
EXPENDITURES
Current:
General government 80,000 80,000 22,450 57,550
Capital improvement/special projects 4,570,733 1,745,154 2,825,579
Total Expenditures 80,000 4,650,733 1,767,604 2,883,129
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 556,400 (3,899,333) (1,532,127) 2,367,206
OTHER FINANCING SOURCES (USES)
Transfers In 228,400 228,400
Total Other Financing Sources (Uses)228,400 228,400
Net Change in Fund Balances $556,400 ($3,670,933) (1,303,727) $2,367,206
10,439,157
FUND BALANCES, END OF YEAR $9,135,430
FUND BALANCES, BEGINNING OF YEAR
107
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, 2017
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and properties $23,000 $23,000 $24,527 $1,527
Intergovernmental 1,903,385 4,028,385 3,728,982 (299,403)
Charges for services 1,043,600 1,043,600 1,149,022 105,422
Other revenue 62,314 62,314
Total Revenues 2,969,985 5,094,985 4,964,845 (130,140)
EXPENDITURES
Current:
General government 43,676 43,676 43,676
Public works and parks 3,109,442 3,781,238 2,643,991 1,137,247
Capital outlay 5,508,565 1,641,317 3,867,248
Capital improvement/special projects 309,102 481,702 305,704 175,998
Total Expenditures 3,462,220 9,815,181 4,591,012 5,224,169
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (492,235) (4,720,196) 373,833 5,094,029
OTHER FINANCING SOURCES (USES)
Transfers in 325,000 325,000
Transfers out (400,000) (628,400) (628,400)
Total Other Financing Sources (Uses)(400,000) (303,400) (303,400)
Net Change in Fund Balances ($892,235) ($5,023,596) 70,433 $5,094,029
FUND BALANCES, BEGINNING OF YEAR 6,653,263
FUND BALANCES, END OF YEAR $6,723,696
108
SUPPLEMENTARY INFORMATION
CITY OF SAN RAFAEL
ESSENTIAL FACILITIES CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Other revenue $635,387 $635,387
Total Revenues 635,387 635,387
EXPENDITURES
Capital improvement/special projects $4,040,000 $6,052,841 6,052,841
Total Expenditures 4,040,000 6,052,841 6,052,841
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (4,040,000) (6,052,841) (5,417,454) 635,387
OTHER FINANCING SOURCES (USES)
Transfers in 4,040,000 5,417,454 5,417,454
Total Other Financing Sources (Uses) 4,040,000 5,417,454 5,417,454
Net Change in Fund Balances ($635,387) $635,387
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
110
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.
Pt. San Pedro Maintenance Portion Special Revenue Fund – Established to account for ongoing
maintenance needs within the Pt. San Pedro assessment district.
111
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.
112
SPECIAL REVENUE FUNDS
Baypoint
Lagoons Household Loch Lomond
Recreation Assessment Hazmat Assessment
Revolving District Facility Childcare District
ASSETS
Cash and investments $556,856 $238,169 $294,058 $1,374,316 $701,449
Restricted cash and investments
Receivables:
Accounts 169,289 296,864
Taxes 157 97
Grants 40,594
Interest
Loans
Prepaids 472 3,670
Total Assets $726,617 $238,326 $590,922 $1,418,580 $701,546
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $240,937 $118,443 $48,436 $41,280
Deposits payable
Developer deposits payable 159,114
Deferred revenue 367,589
Total Liabilities 608,526 277,557 48,436 41,280
Fund Balances:
Restricted 118,091 $238,326 313,365 1,370,144 660,266
Committed
Assigned
Total Fund Balances 118,091 238,326 313,365 1,370,144 660,266
Total Liabilities and Fund Balances $726,617 $238,326 $590,922 $1,418,580 $701,546
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2017
114
Library Public Development Parkland
Library Assessment Safety Stormwater Services Grants Dedication
$641,059 $687,806 $138,261 $212,794 $703,392 $702,855 $457,538
21,000
17,829
53,152
432
$641,491 $687,806 $159,261 $230,623 $703,392 $756,007 $457,538
$9,426 $20,234 $761 $41,536 $12,530 $2,886 $8,350
6,076
1,500
9,426 20,234 761 41,536 20,106 2,886 8,350
632,065 667,572 $158,500 189,087 683,286 753,121 449,188
632,065 667,572 158,500 189,087 683,286 753,121 449,188
$641,491 $687,806 $159,261 $230,623 $703,392 $756,007 $457,538
(Continued)
SPECIAL REVENUE FUNDS
115
Low and
Emergency Pt. San Pedro Moderate
Medical Business Maintenance Income Measure A
Services Improvement Portion Housing Open Space
ASSETS
Cash and investments $1,494,455 $22,958 $153,108 $679,950 $199,727
Restricted cash and investments
Receivables:
Accounts 359,679
Taxes 25,903 459 218,273
Grants
Interest 334
Loans 230,066
Prepaids
Total Assets $1,880,037 $22,958 $153,567 $910,350 $418,000
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $135,507 $22,958 $2,284 $48,765
Deposits payable
Developer deposits payable
Deferred revenue
Total Liabilities 135,507 22,958 2,284 48,765
Fund Balances:
Restricted 1,744,530 151,283 910,350 369,235
Committed
Assigned
Total Fund Balances 1,744,530 151,283 910,350 369,235
Total Liabilities and Fund Balances $1,880,037 $22,958 $153,567 $910,350 $418,000
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2017
SPECIAL REVENUE FUNDS
116
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 $147,797 $2,864,858 $76,845 $223,742 $27,936
625,123 77,038
29,835
1,658
$2,875 $16,573 $147,797 $3,521,474 $76,845 $300,780 $27,936
$57,702
57,702
$2,875 $16,573 $147,797 $76,845 $300,780
3,463,772 $27,936
2,875 16,573 147,797 3,463,772 76,845 300,780 27,936
$2,875 $16,573 $147,797 $3,521,474 $76,845 $300,780 $27,936
(Continued)
CAPITAL PROJECTS FUNDS
117
CAPITAL
PROJECTS
Total
Non-Major
Open Governmental
Space Funds
ASSETS
Cash and investments $115,103 $12,734,480
Restricted cash and investments 702,161
Receivables:
Accounts 846,832
Taxes 262,718
Grants 123,581
Interest 1,992
Loans 230,066
Prepaids 4,574
Total Assets $115,103 $14,906,404
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $812,035
Deposits payable 6,076
Developer deposits payable 160,614
Deferred revenue 367,589
Total Liabilities 1,346,314
Fund Balances:
Restricted 9,953,279
Committed 3,491,708
Assigned $115,103 115,103
Total Fund Balances 115,103 13,560,090
Total Liabilities and Fund Balances $115,103 $14,906,404
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2017
FUNDS
118
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 $1,477 760 $180 $4,177 2,334
Intergovernmental 10,097 329,232
Charges for services 3,129,356 156,434 3,724,353
Other revenue 16,149 1,125 11,939
Total Revenues 3,157,079 26,128 157,739 4,069,701 17,940
EXPENDITURES
Current:
General government
Public safety 93,013
Public works and parks 5,722 48,618
Culture and recreation 4,798,373 3,853,401
Capital outlay
Capital improvement/special projects 16,994
Total Expenditures 4,815,367 5,722 93,013 3,853,401 48,618
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,658,288) 20,406 64,726 216,300 (30,678)
OTHER FINANCING SOURCES (USES)
Transfers in 1,750,000
Transfers out
Total Other Financing Sources (Uses)1,750,000
Net Change in Fund Balances 91,712 20,406 64,726 216,300 (30,678)
Fund Balance, Beginning 26,379 217,920 248,639 1,153,844 690,944
Fund Balance, Ending $118,091 $238,326 $313,365 $1,370,144 $660,266
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2017
120
SPECIAL REVENUE FUNDS
Library Public Development Parkland
Library Assessment Safety Stormwater Services Grants Dedication
$868,481
$2,135 2,302 $130 $548 $33,615 $1,592 $1,620
1,000 89,053 1,002,826
7,067 1,860 903,910 39,360
3,020 74,762 20,228 23,106 1,500
13,222 870,783 165,805 924,686 33,615 1,027,524 42,480
5,997 26,606 182,778
276,387 582,235
782,590 30,072
10,049 907,470
6,996 4,936 908,171 92,704
17,045 907,470 281,323 1,696,758 26,606 765,013 122,776
(3,823) (36,687) (115,518) (772,072) 7,009 262,511 (80,296)
100,000 46,089 37,761
(325,000) (169,783)
100,000 (325,000) (123,694) 37,761
(3,823) (36,687) (15,518) (772,072) (317,991) 138,817 (42,535)
635,888 704,259 174,018 961,159 1,001,277 614,304 491,723
$632,065 $667,572 $158,500 $189,087 $683,286 $753,121 $449,188
(Continued)
121
Low and
Emergency Pt. San Pedro - Moderate
Medical Business Maintenance Income Measure A
Services Improvement Portion Housing Open Space
REVENUES
Taxes and special assessments $5,485,637 $74,084 $437,170
Use of money and properties 7,729 508 $2,445 973
Intergovernmental 121,517
Charges for services 1,506,437
Other revenue 220,984 59,375
Total Revenues 7,342,304 74,592 61,820 438,143
EXPENDITURES
Current:
General government 47,978 81,027
Public safety 7,114,323 107,949
Public works and parks 89,980 205,179
Culture and recreation
Capital outlay
Capital improvement/special projects
Total Expenditures 7,162,301 89,980 81,027 313,128
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 180,003 (15,388) (19,207) 125,015
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (118,036)
Total Other Financing Sources (Uses)(118,036)
Net Change in Fund Balances 180,003 (15,388) (19,207) 6,979
Fund Balance, Beginning 1,564,527 166,671 929,557 362,256
Fund Balance, Ending $1,744,530 $151,283 $910,350 $369,235
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, 2017
122
DEBT SERVICE FUNDS
1997
Peacock Gap Mariposa Financing Park
Assessment Assessment Authority Capital Bedroom Assessment Capital
District District Revenue Bonds Improvement Tax Districts Projects
$18,105
$493 $363
$13,357
143,472
$5,507
493 156,829 18,105 363 5,507
459,609
10,440
459,609 10,440
493 (302,780)18,105 363 (4,933)
493 (302,780)18,105 363 (4,933)
$2,875 $16,573 147,304 3,766,552 58,740 300,417 32,869
$2,875 $16,573 $147,797 $3,463,772 $76,845 $300,780 $27,936
(Continued)
CAPITAL PROJECTS FUNDS
123
CAPITAL
PROJECTS
FUNDS
Total
Non-Major
Open Governmental
Space Funds
REVENUES
Taxes and special assessments $6,924,451
Use of money and properties $383 63,764
Intergovernmental 1,567,082
Charges for services 9,612,249
Other revenue 437,695
Total Revenues 383 18,605,241
EXPENDITURES
Current:
General government 344,386
Public safety 8,173,907
Public works and parks 1,162,161
Culture and recreation 9,569,293
Capital outlay 459,609
Capital improvement/special projects 4,463 1,044,704
Total Expenditures 4,463 20,754,060
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (4,080) (2,148,819)
OTHER FINANCING SOURCES (USES)
Transfers in 1,933,850
Transfers out (612,819)
Total Other Financing Sources (Uses)1,321,031
Net Change in Fund Balances (4,080) (827,788)
Fund Balance, Beginning 119,183 14,387,878
Fund Balance, Ending $115,103 $13,560,090
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2017
124
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, 2017
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)
Use of money and properties $26,309 $1,477 ($24,832) 700 760 60
Intergovernmental 10,000 10,097 97
Charges for services 2,962,330 3,129,356 167,026
Other revenue 2,750 16,149 13,399
Total Revenues 3,001,389 3,157,079 155,690 26,200 26,128 (72)
EXPENDITURES
Current:
General government
Public safety
Public works and parks 6,000 5,722 278
Culture and recreation 4,809,085 4,798,373 10,712
Capital outlay
Capital improvement/special projects 10,000 16,994 (6,994)
Total Expenditures 4,819,085 4,815,367 3,718 6,000 5,722 278
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,817,696) (1,658,288) 159,408 20,200 20,406 206
OTHER FINANCING SOURCES (USES)
Transfers in 1,750,000 1,750,000
Transfers out
Total Other Financing Sources (Uses) 1,750,000 1,750,000
FUND BALANCES, BEGINNING OF YEAR
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES ($67,696) 91,712 $159,408 $20,200 20,406 $206
FUND BALANCES, BEGINNING OF YEAR 26,379 217,920
FUND BALANCES, END OF YEAR $118,091 $238,326
126
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)
$550 $180 ($370) $2,000 $4,177 $2,177 2,000 2,334 334
312,200 329,232 17,032
156,515 156,434 (81) 3,775,000 3,724,353 (50,647)
1,125 1,125 11,939 11,939
157,065 157,739 674 4,089,200 4,069,701 (19,499) 17,610 17,940 330
169,361 93,013 76,348
50,054 48,618 1,436
4,099,128 3,853,401 245,727
169,361 93,013 76,348 4,099,128 3,853,401 245,727 50,054 48,618 1,436
(12,296) 64,726 77,022 (9,928) 216,300 226,228 (32,444) (30,678) 1,766
($12,296) 64,726 $77,022 ($9,928) 216,300 $226,228 ($32,444) (30,678) $1,766
248,639 1,153,844 690,944
$313,365 $1,370,144 $660,266
(Continued)
SPECIAL REVENUE FUNDS
127
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, 2017
Library Library Assessment
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $875,000 $868,481 ($6,519)
Use of money and properties $600 $2,135 $1,535 1,800 2,302 502
Intergovernmental 1,000 1,000
Charges for services 6,000 7,067 1,067
Other revenue 1,000 3,020 2,020
Total Revenues 7,600 13,222 5,622 876,800 870,783 (6,017)
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation 10,000 10,049 (49) 995,819 907,470 88,349
Capital outlay
Capital improvement/special projects 15,000 6,996 8,004
Total Expenditures 25,000 17,045 7,955 995,819 907,470 88,349
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (17,400) (3,823) 13,577 (119,019) (36,687) 82,332
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 ($17,400) (3,823) $13,577 ($119,019) (36,687) $82,332
FUND BALANCES, BEGINNING OF YEAR 635,888 704,259
FUND BALANCES, END OF YEAR $632,065 $667,572
SPECIAL REVENUE FUNDS
128
Public Safety Stormwater
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$240 $130 ($110) $5,000 $548 ($4,452) $33,000 $33,615 $615
70,000 89,053 19,053
1,500 1,860 360 772,800 903,910 131,110
75,000 74,762 (238) 5,000 20,228 15,228
146,740 165,805 19,065 782,800 924,686 141,886 33,000 33,615 615
10,412 5,997 4,415 117,000 26,606 90,394
276,322 276,387 (65)
734,711 782,590 (47,879)
340,000 340,000
5,000 4,936 64 1,525,867 908,171 617,696
281,322 281,323 (1) 2,270,990 1,696,758 574,232 457,000 26,606 430,394
(134,582) (115,518) 19,064 (1,488,190) (772,072) 716,118 (424,000) 7,009 431,009
100,000 100,000
(325,000) (325,000)
100,000 100,000 (325,000) (325,000)
($34,582) (15,518) $19,064 ($1,488,190) (772,072) $716,118 ($749,000) (317,991) $431,009
174,018 961,159 1,001,277
$158,500 $189,087 $683,286
(Continued)
SPECIAL REVENUE FUNDS
Development Services
129
Grants Parkland Dedication
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments
Use of money and properties $2,800 $1,592 ($1,208) $4,000 $1,620 ($2,380)
Intergovernmental 369,250 1,002,826 633,576
Charges for services 39,360 39,360
Other revenue 23,106 23,106 1,500 1,500
Total Revenues 372,050 1,027,524 655,474 4,000 42,480 38,480
EXPENDITURES
Current:
General government 235,961 182,778 53,183
Public safety 563,091 582,235 (19,144)
Public works and parks 37,301 30,072 7,229
Culture and recreation
Capital outlay 330,000 92,704 237,296
Capital improvement/special projects
Total Expenditures 799,052 765,013 34,039 367,301 122,776 244,525
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (427,002) 262,511 689,513 (363,301) (80,296) 283,005
OTHER FINANCING SOURCES (USES)
Transfers in 46,089 46,089 37,761 37,761
Transfers out (169,783) (169,783)
Total Other Financing Sources (Uses)(123,694) (123,694)37,761 37,761
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES ($550,696) 138,817 $689,513 ($325,540) (42,535) $283,005
FUND BALANCES, BEGINNING OF YEAR 614,304 491,723
FUND BALANCES, END OF YEAR $753,121 $449,188
SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2017
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
CITY OF SAN RAFAEL
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
130
Emergency Medical Services Business Improvement
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$5,216,424 $5,485,637 $269,213 $80,000 $74,084 ($5,916)
2,000 7,729 5,729 500 508 8
125,000 121,517 (3,483)
2,598,000 1,506,437 (1,091,563)
247,819 220,984 (26,835)
8,189,243 7,342,304 (846,939)80,500 74,592 (5,908)
83,288 47,978 35,310
7,178,379 7,114,323 64,056
90,250 89,980 270
7,261,667 7,162,301 99,366 90,250 89,980 270
927,576 180,003 (747,573)(9,750) (15,388) (5,638)
$927,576 180,003 ($747,573)($9,750) (15,388) ($5,638)
1,564,527 166,671
$1,744,530 $151,283
(Continued)
Pt. San Pedro-Maintenance Portion
SPECIAL REVENUE FUNDS
131
CITY OF SAN RAFAEL
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 $430,300 $437,170 $6,870
Use of money and properties $8,300 $2,445 ($5,855) 600 973 373
Intergovernmental
Charges for services
Other revenue 70,000 59,375 (10,625)
Total Revenues 78,300 61,820 (16,480) 430,900 438,143 7,243
EXPENDITURES
Current:
General government 210,000 81,027 128,973
Public safety 199,123 107,949 91,174
Public works and parks 155,000 205,179 (50,179)
Culture and recreation 460,000 460,000
Capital outlay
Capital improvement/special projects
Total Expenditures 210,000 81,027 128,973 814,123 313,128 500,995
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (131,700) (19,207) 112,493 (383,223) 125,015 508,238
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (118,036) (118,036)
Total Other Financing Sources (Uses) (118,036) (118,036)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES ($131,700) (19,207) $112,493 ($501,259) 6,979 $508,238
FUND BALANCES, BEGINNING OF YEAR 929,557 362,256
FUND BALANCES, END OF YEAR $910,350 $369,235
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2017
SPECIAL REVENUE FUNDS
132
Mariposa Assessment District 1997 Financing Authority Revenue Bonds
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$430 $493 $63
430 493 63
430 493 63
$430 493 $63
$16,573 147,304
$16,573 $147,797
DEBT SERVICE FUNDS
133
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.
135
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2017
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
ASSETS
Current Assets:
Cash and investments $1,617,858 $1,673,326 $2,845,878 $810,716 $2,967,749
Accounts receivable
Loans receivable
Prepaids 1,080,558
Capital assets:
Nondepreciable assets 530,301
Depreciable assets, net 2,615,538 5,044,661 637,331
Total Assets 4,763,697 7,798,545 3,483,209 810,716 2,967,749
LIABILITIES
Current Liabilities:
Accounts payable 129,423 208,333 196,005 501
Claims payable - due in one year 1,226,194
Non-current Liabilities:
Claims payable - due in more than one year 1,355,335
Total Liabilities 129,423 208,333 196,005 501 2,581,529
NET POSITION:
Net investment in capital assets 3,145,839 5,044,661 637,331
Unrestricted 1,488,435 2,545,551 2,649,873 810,215 386,220
Total Net Position $4,634,274 $7,590,212 $3,287,204 $810,215 $386,220
136
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total
$6,663,771 $152,927 $2,281,906 $711,122 $358,889 $398,256 $28,213 $20,510,611
1,080,558
530,301
8,297,530
6,663,771 152,927 2,281,906 711,122 358,889 398,256 28,213 30,419,000
304 3,624 16,487 32,422 28,213 615,312
1,427,094 2,653,288
4,738,715 6,094,050
6,166,113 3,624 16,487 32,422 28,213 9,362,650
8,827,831
497,658 149,303 2,281,906 694,635 358,889 365,834 12,228,519
$497,658 $149,303 $2,281,906 $694,635 $358,889 $365,834 $21,056,350
137
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
OPERATING REVENUES
Charges for current services $800,000 $1,213,282 $1,910,808 $551,519 $1,552,880
Other operating revenues 10,000 286 606 49,910
Total Operating Revenues 810,000 1,213,282 1,911,094 552,125 1,602,790
OPERATING EXPENSES
Personnel 161,876 2,416
Insurance premiums and claims 1,063,453
Maintenance and repairs 201,103 87,597
General and administrative 18,243 1,952,354 796,874 184,656
Depreciation expense 38,921 922,755 106,224
Total Operating Expenses 258,267 1,010,352 2,220,454 799,290 1,248,109
Operating Income (Loss) 551,733 202,930 (309,360) (247,165) 354,681
NONOPERATING REVENUES (EXPENSES)
Investment income 5,317 5,099 9,304 8,635 8,962
Miscellaneous Income 94,264
Loss on sale of capital assets (19,944)
Total Nonoperating
Revenues (Expenses) 5,317 79,419 9,304 8,635 8,962
Net income (loss) before transfers 557,050 282,349 (300,056) (238,530) 363,643
CAPITAL CONTRIBUTIONS 1,228,402
TRANSFERS IN 80,275
TRANSFERS OUT
Change in Net Position 1,865,727 282,349 (300,056) (238,530) 363,643
NET POSITION, BEGINNING OF YEAR, AS ADJUSTED 2,768,547 7,307,863 3,587,260 1,048,745 22,577
NET POSITION, END OF YEAR $4,634,274 $7,590,212 $3,287,204 $810,215 $386,220
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2017
138
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total
$1,974,595 $399,028 $200,000 $2,775,000 $648,660 $571,223 $2,609,993 $15,206,988
7,910 892,199 1,385 962,296
1,974,595 406,938 200,000 3,667,199 648,660 571,223 2,611,378 16,169,284
2,611,378 2,775,670
1,487,865 388,506 3,674,555 6,614,379
288,700
116,474 3,342 673,499 544,551 4,289,993
1,067,900
1,604,339 388,506 3,342 3,674,555 673,499 544,551 2,611,378 15,036,642
370,256 18,432 196,658 (7,356) (24,839) 26,672 1,132,642
21,819 663 7,392 522 1,238 68,951
94,264
(19,944)
21,819 663 7,392 522 1,238 143,271
392,075 19,095 204,050 (7,356) (24,317) 27,910 1,275,913
1,228,402
80,275
(376,520) (376,520)
392,075 19,095 (172,470) (7,356) (24,317) 27,910 2,208,070
105,583 130,208 2,454,376 701,991 383,206 337,924 18,848,280
$497,658 $149,303 $2,281,906 $694,635 $358,889 $365,834 $21,056,350
139
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2017
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $800,000 $1,224,360 $1,911,094 $551,519 $1,552,880
Cash payments to suppliers for goods and services (126,737) (85,119) (1,898,044) (836,813) (1,211,360)
Cash payments to employees for salaries and benefits (161,876) (2,416)
Other operating revenues 10,000 606 49,910
Cash Flows from Operating Activities 683,263 1,139,241 (148,826) (287,104) 391,430
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts 80,275
Interfund payments
Cash Flows from Noncapital
Financing Activities 80,275
'CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (468,338) (753,667)
Proceeds from sale of property 94,264
Cash Flows from Investing Activities (468,338) (659,403)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 5,317 5,099 9,304 8,635 8,962
Cash Flows from Investing Activities 5,317 5,099 9,304 8,635 8,962
Net increase (decrease) in cash and cash equivalents 300,517 484,937 (139,522) (278,469) 400,392
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,317,341 1,188,389 2,985,400 1,089,185 2,567,357
CASH AND CASH EQUIVALENTS, END OF YEAR $1,617,858 $1,673,326 $2,845,878 $810,716 $2,967,749
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$551,733 $202,930 ($309,360) ($247,165) $354,681
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation 38,921 922,755 106,224
Net change in assets and liabilities:
Accounts receivable 140
Loans receivable 10,938
Prepaids and deposits 2,478
Accounts payable 92,609 54,310 (39,939) (1,125)
Claims payable 37,874
Net Cash Provided by (Used in) Operating Activities $683,263 $1,139,241 ($148,826) ($287,104) $391,430
NON-CASH TRANSACTIONS:
Contributions of capital assets $1,228,402
140
OPEB/
Workers' Dental Employee Employee Radio Telephone Sewer
Compensation Insurance Retirement Retirement Replacement Replacement Maintenance Total
$1,974,595 $399,028 $200,000 $2,850,980 $648,660 $571,223 $2,623,480 $15,307,819
(1,490,587) (388,587) (3,342) (3,661,843) (673,499) (533,604) (2,599,611) (13,509,146)
(164,292)
7,910 892,199 1,385 962,010
484,008 18,351 196,658 81,336 (24,839) 37,619 25,254 2,596,391
80,275
(376,520) (376,520)
(376,520)(296,245)
(1,222,005)
94,264
(1,127,741)
21,819 663 7,392 522 1,238 68,951
21,819 663 7,392 522 1,238 68,951
505,827 19,014 (172,470) 81,336 (24,317) 38,857 25,254 1,241,356
6,157,944 133,913 2,454,376 629,786 383,206 359,399 2,959 19,269,255
$6,663,771 $152,927 $2,281,906 $711,122 $358,889 $398,256 $28,213 $20,510,611
$370,256 $18,432 $196,658 ($7,356) ($24,839) $26,672 $1,132,642
1,067,900
75,980 $13,487 89,607
10,938
2,478
(7,146)(81)12,712 10,947 11,767 134,054
120,898 158,772
$484,008 $18,351 $196,658 $81,336 ($24,839) $37,619 $25,254 $2,596,391
$1,228,402
141
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.
143
CITY OF SAN RAFAEL
AGENCY FUNDS
COMBINING STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED JUNE 30, 2017
Balance Balance
June 30, 2016 Additions Deductions June 30, 2017
Pt. San Pedro Road Assessment District
Assets
Restricted cash and investments $291,111 $206,708 $208,051 $289,768
Taxes receivable 1,134 951 1,134 951
Total Assets $292,245 $207,659 $209,185 $290,719
Liabilities
Interest payable $27,697 $26,614 $27,697 $26,614
Due to bondholders 264,548 181,045 181,488 264,105
Total Liabilities $292,245 $207,659 $209,185 $290,719
Balance Balance
June 30, 2016 Additions Deductions June 30, 2017
Total Agency Fund
Assets
Restricted cash and investments $291,111 $206,708 $208,051 $289,768
Taxes receivable 1,134 951 1,134 951
Total Assets $292,245 $207,659 $209,185 $290,719
Liabilities
Interest payable $27,697 $26,614 $27,697 $26,614
Due to bondholders 264,548 181,045 181,488 264,105
Total Liabilities $292,245 $207,659 $209,185 $290,719
144
Mc Nears Beach Park
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.
147
2008 2009 2010 2011
Governmental activities
Net investment in capital assets $176,724,820 $178,744,119 $173,536,144 $174,281,922
Restricted 26,848,900 25,721,231 26,150,254 21,322,937
Unrestricted 4,273,937 (700,985) (4,631,276) (8,170,324)
Total governmental activities net position $207,847,657 $203,764,365 $195,055,122 $187,434,535
Business-type activities
Net investment in capital assets $10,130,329 $11,243,637 $10,950,825 $10,793,592
Unrestricted 2,471,117 1,936,958 2,017,354 1,948,447
Total business-type activities net position $12,601,446 $13,180,595 $12,968,179 $12,742,039
Primary government
Net investments in capital assets $186,855,149 $189,987,756 $184,486,969 $185,075,514
Restricted 26,848,900 25,721,231 26,150,254 21,322,937
Unrestricted 6,745,054 1,235,973 (2,613,922) (6,221,877)
Total primary government net position $220,449,103 $216,944,960 $208,023,301 $200,176,574
(a) The City adjusted certain beginning balances during fiscal years 2013-2014, 2014-2015 and 2016-2017. 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)
($130,000)
($80,000)
($30,000)
$20,000
$70,000
$120,000
$170,000
$220,000
$270,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Th
o
u
s
a
n
d
s
Net of Related Debt Restricted Unrestricted
148
2012 2013 2014 2015 2016 2017
$192,361,245 $193,222,791 $190,286,275 $190,621,085 $193,707,175 $199,202,842
24,693,205 35,780,412 37,339,141 33,389,224 31,286,725 29,225,643
10,652,263 11,151,318 (196,824) (82,336,534) (93,273,480) (112,913,181)
$227,706,713 $240,154,521 $227,428,592 $141,673,775 $131,720,420 $115,515,304
$10,650,558 $10,670,190 $10,786,591 $10,744,952 $10,958,058 $10,968,642
2,495,889 2,501,498 2,049,957 (938,519) (1,136,050) (871,620)
$13,146,447 $13,171,688 $12,836,548 $9,806,433 $9,822,008 $10,097,022
$203,011,803 $203,892,981 $201,072,866 $201,366,037 $204,665,233 $210,171,484
24,693,205 35,780,412 37,339,141 33,389,224 31,286,725 29,225,643
13,148,152 13,652,816 1,853,133 (83,275,053) (94,409,530) (113,784,801)
$240,853,160 $253,326,209 $240,265,140 $151,480,208 $141,542,428 $125,612,326
149
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2008 2009 2010 2011
Expenses
Governmental Activities:
General government $8,621,079 $8,075,344 $8,396,759 $8,269,846
Public safety 40,845,347 42,708,538 42,752,033 44,735,486
Public works and parks 22,105,367 23,036,676 17,401,923 17,408,038
Community development 5,811,866 5,759,171 6,738,873 7,804,650
Culture and recreation 10,300,230 11,505,896 11,139,225 11,487,999
Interest on long-term debt and fiscal charges 1,989,620 1,907,229 2,200,024 1,621,605
Total Governmental Activities Expenses 89,673,509 92,992,854 88,628,837 91,327,624
Business-Type Activities:
Parking services 3,282,235 3,563,235 4,016,198 3,785,751
Total Business-Type Activities Expenses 3,282,235 3,563,235 4,016,198 3,785,751
Total Primary Government Expenses $92,955,744 $96,556,089 $92,645,035 $95,113,375
Component Unit:
San Rafael Sanitation District $8,090,636 $9,143,977 $9,087,354 $9,677,630
Program Revenues
Governmental Activities:
Charges for services:
General government $1,494,784 $1,738,685 $1,665,460 $1,636,542
Public safety 5,562,072 5,906,445 6,308,912 6,167,925
Public works and parks 4,983,288 4,753,817 3,916,874 4,141,103
Community development 3,247,024 2,915,872 2,830,179 2,676,663
Culture and recreation 4,870,884 5,253,683 5,280,458 5,362,497
Operating grants and contributions 3,463,616 3,544,248 3,721,055 3,651,902
Capital grants and contributions 3,239,509 7,311,173 2,116,906 1,857,670
Total Government Activities Program Revenues 26,861,177 31,423,923 25,839,844 25,494,302
Business-Type Activities:
Charges for services:
Parking services 4,161,936 4,454,490 4,244,404 4,011,333
Total Business-Type Activities Program Revenues 4,161,936 4,454,490 4,244,404 4,011,333
Total Primary Government Program Revenues $31,023,113 $35,878,413 $30,084,248 $29,505,635
Component Unit:
San Rafael Sanitation District
Charges for service $9,366,305 $10,567,647 $11,559,549 $12,223,779
Operating grants and contributions
Capital grants and contributions
Total Component Unit Program Revenues $9,366,305 $10,567,647 $11,559,549 $12,223,779
Net (Expense)/Revenue
Governmental Activities ($62,812,332) ($61,568,931) ($62,788,993) ($65,833,322)
Business-Type Activities 879,701 891,255 228,206 225,582
Total Primary Government Net Expense ($61,932,631) ($60,677,676) ($62,560,787) ($65,607,740)
Component Unit Activities $1,275,669 $1,423,670 $2,472,195 $2,546,149
150
2012 2013 2014 2015 2016 2017
$10,171,332 $10,202,530 $9,085,672 $9,099,858 $12,952,983 $10,996,269
39,876,910 41,966,065 43,800,158 39,968,631 55,399,798 44,366,734
17,423,033 17,695,164 22,125,336 16,893,164 22,929,289 19,845,719
4,587,557 3,403,158 3,451,244 3,128,373 4,307,269 4,242,743
11,020,663 11,330,058 11,846,818 11,198,151 15,026,680 14,131,000
1,224,991 283,805 327,350 284,288 277,263 271,263
84,304,486 84,880,780 90,636,578 80,572,465 110,893,282 93,853,728
3,446,482 3,545,387 4,125,476 4,249,597 4,762,851 4,188,152
3,446,482 3,545,387 4,125,476 4,249,597 4,762,851 4,188,152
$87,750,968 $88,426,167 $94,762,054 $84,822,062 $115,656,133 $98,041,880
$10,185,779 $10,169,082 $11,378,055 $11,375,239 $11,654,767 $11,255,194
$1,986,791 $2,655,749 $2,838,940 $1,379,523 $526,495 $421,393
7,122,396 6,478,321 6,014,034 4,966,251 4,939,658 4,264,939
5,214,267 7,837,472 6,101,460 3,078,267 5,157,289 1,804,698
3,255,367 3,984,204 3,279,251 3,796,684 4,004,178 3,850,107
5,873,147 6,075,129 6,417,003 6,537,646 6,683,059 6,941,013
3,158,281 4,085,073 4,698,142 4,185,450 4,678,338 3,965,351
2,705,696 5,876,993 762,719 1,308,027 1,470,953 1,702,993
29,315,945 36,992,941 30,111,549 25,251,848 27,459,970 22,950,494
3,901,175 3,990,706 4,485,394 5,173,557 5,212,181 5,268,991
3,901,175 3,990,706 4,485,394 5,173,557 5,212,181 5,268,991
$33,217,120 $40,983,647 $34,596,943 $30,425,405 $32,672,151 $28,219,485
$12,368,889 $12,413,123 $13,732,496 $14,629,758 $15,414,530 $16,014,016
36,945
79,245
$12,368,889 $12,413,123 $13,732,496 $14,629,758 $15,414,530 $16,130,206
($54,988,541) ($47,887,839) ($60,525,029) ($55,320,617) ($83,433,312) ($70,903,234)
454,693 445,319 359,918 923,960 449,330 1,080,839
($54,533,848) ($47,442,520) ($60,165,111) ($54,396,657) ($82,983,982) ($69,822,395)
$2,183,110 $2,244,041 $2,354,441 $3,254,519 $3,862,215 $4,875,012
151
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2008 2009 2010 2011
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property $22,195,606 $21,978,859 $21,684,131 $21,632,733
Sales 25,764,457 21,970,262 19,055,124 21,623,445
Special assessments 3,503,555
Paramedic 3,210,317 3,489,494 3,661,064
Motor vehicles 257,320 197,989 171,518 297,425
Transient occupancy 1,678,912 1,558,243 1,644,262
Franchise 2,941,149 2,868,332 2,990,539
Business license 2,405,934 2,317,664 2,296,460
Other 9,242,241 1,561,835 1,411,583 1,930,531
Investment earnings 1,583,056 717,968 302,180 176,502
Gain (Loss) on disposal of assets 221,791
Miscellaneous 296,454 461,224 541,390 1,496,174
Special item - Court fines repayment
Transfers 344,080 361,190 458,300 463,600
Total Government Activities 63,186,769 57,485,639 54,079,750 58,212,735
Business-Type Activities:
Investment earnings 121,486 49,084 17,678 11,878
Aid from other government agencies
Transfers (344,080) (361,190) (458,300) (463,600)
Total Business-Type Activities (222,594) (312,106) (440,622) (451,722)
Total Primary Government $62,964,175 $57,173,533 $53,639,128 $57,761,013
Component Unit:
San Rafael Sanitation District
Property Taxes $803,071 $855,511 $823,187 $1,214,519
Investment earnings 341,032 206,752 93,274 59,265
Miscellaneous 3,546 3,540
Aid from other governmental agencies 577,860 381,144 415,391 6,499
Total Component Unit $1,725,509 $1,446,947 $1,331,852 $1,280,283
Special Item
Governmental Activities
Component Unit Activities
Change in Net Position
Governmental Activities $374,437 ($4,083,292) ($8,709,243) ($7,620,587)
Business-Type Activities 657,107 579,149 (212,416) (226,140)
Total Primary Government $1,031,544 ($3,504,143) ($8,921,659) ($7,846,727)
Change in Net Position
Component Unit Activities $3,001,178 $2,870,617 $3,804,047 $3,826,432
Fiscal Year Ended June 30,
152
2012 2013 2014 2015 2016 2017
$20,107,637 $17,317,772 $18,439,619 $19,039,443 $19,998,567 $23,343,140
22,355,749 24,262,282 27,758,971 32,269,915 34,348,089 31,819,259
3,807,545 3,804,985 3,816,070 3,820,240 4,226,020 5,485,637
1,866,575 2,185,287 2,332,277 2,661,878 3,063,263 2,984,758
3,076,094 3,331,160 3,260,958 3,272,390 3,418,277 3,610,824
2,332,146 2,507,785 2,588,728 2,670,071 2,824,664 2,774,803
3,574,918 2,929,915 3,452,171 3,295,751 3,465,193 1,824,830
205,413 991,762 184,171 216,066 300,091 210,628
542,816 2,580,882 1,140,743 2,254,901 1,387,315 2,448,604
57,960 423,817 449,917 432,630 448,478 536,000
57,926,853 60,335,647 63,423,625 69,933,285 73,479,957 75,038,483
7,675 3,739 4,375 7,008 14,723 10,810
(57,960)(423,817)(449,917)(432,630)(448,478)(536,000)
(50,285)(420,078)(445,542)(425,622)(433,755)(525,190)
$57,876,568 $59,915,569 $62,978,083 $69,507,663 $73,046,202 $74,513,293
$1,192,566 $1,177,469 $1,345,018 $1,319,852 $1,367,172 $1,528,047
38,191 25,591 151,729 171,804 46,225 97,090
9,613 56,589 22,125 35,090
$1,240,370 $1,259,649 $1,518,872 $1,526,746 $1,413,397 $1,625,137
$4,462,815
($4,462,815)
$2,938,312 $12,447,808 $2,898,596 $19,075,483 ($9,953,355) $4,135,249
404,408 25,241 (85,624)498,338 15,575 555,649
$3,342,720 $12,473,049 $2,812,972 $19,573,821 ($9,937,780) $4,690,898
$3,423,480 $3,503,690 $3,873,313 $318,450 $5,275,612 $6,500,149
153
CITY SAN RAFAEL
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2008 2009 2010 2011
General Fund
Pre-GASB 54 Presentation:
Reserved $2,196,153 $2,225,775 $1,763,622
Unreserved 4,022,612 1,670,455 5,038,173
GASB 54 Presentation:
Nonspendable $589,833
Restricted 200,238
Committed 555,561
Assigned 5,439,879
Unassigned
Total General Fund $6,218,765 $3,896,230 $6,801,795 $6,785,511
All Other Governmental Funds
Pre-GASB 54 Presentation:
Reserved $17,599,142 $16,680,568 $15,352,723
Unreserved, reported in:
Special Revenue Funds 7,413,808 8,641,239 8,778,027
Capital Project Funds 35,430 (1,030,293) 4,527,627
Debt Service Funds 3,315,764 3,360,540
Expendable Trust Fund
GASB 54 Presentation:
Nonspendable $377,180
Restricted 19,289,367
Committed 3,864,322
Assigned 4,124,029
Total all other governmental funds $28,364,144 $27,652,054 $28,658,377 $27,654,898
(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.
($5,000)
$5,000
$15,000
$25,000
$35,000
$45,000
$55,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Th
o
u
s
a
n
d
s
Total Fund Balance
154
2012 2013 2014 2015 2016 2017 (a)
$527,509 $527,235 $503,338 $399,299 $476,316 $508,446
76,188
651,121 800,876
1,516,644 2,476,676 6,866,149 12,374,002 16,440,910 14,900,945
1,588,500 1,772,577 1,295,041
$2,771,462 $3,804,787 $7,369,487 $14,361,801 $18,689,803 $16,704,432
$788,031 $51,521 $8,719 $2,359 $9,449
16,856,959 20,769,546 30,185,064 31,742,184 27,552,245 25,812,405
5,135,257 8,447,495 2,185,825 931,871 3,799,421 3,491,708
5,283,559 6,511,850 4,959,533 712,810 119,183 115,103
$28,063,806 $35,780,412 $37,339,141 $33,389,224 $31,480,298 $29,419,216
155
CITY OF SAN RAFAEL
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2008 2009 2010 2011
Revenues
Taxes and special assessments $56,129,195 $51,019,143 $47,678,541 $51,448,130
Licenses and permits 1,489,748 1,472,913 1,518,819 1,416,772
Fines and forfeitures 797,081 660,338 787,411 862,820
Use of money and properties 1,584,508 847,120 433,874 380,720
Intergovernmental 12,081,968 17,518,670 13,001,703 11,864,127
Charges for services 15,607,460 16,384,265 15,787,325 15,888,750
Other revenue 815,704 759,320 716,760 1,026,845
Total Revenues 88,505,664 88,661,769 79,924,433 82,888,164
Expenditures
Current:
General government 8,288,170 8,059,526 7,997,067 6,863,142
Public safety 40,299,862 41,209,972 39,574,091 40,967,352
Public works and parks 13,641,665 12,926,646 10,731,669 10,666,176
Community development 5,786,661 5,572,079 4,398,594 4,527,351
Culture and recreation 9,820,365 10,233,361 9,605,684 10,067,822
Capital outlay 6,243,517 5,048,044 1,890,559 1,745,483
Capital improvement / special projects 5,124,091 6,606,857 3,436,608 6,240,861
Debt service:
Capitalized lease obligation
Principal 2,504,370 2,714,358 2,804,258 2,530,338
Interest and fiscal charges 1,776,354 1,683,240 1,979,372 1,448,910
Total Expenditures 93,485,055 94,054,083 82,417,902 85,057,435
Excess (deficiency) of revenues over
(under) expenditures (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
Proceeds from PG&E loans
Proceeds from sale of capital asset 221,791
Transfers in 6,353,216 8,972,495 7,494,560 5,806,834
Transfers (out)(6,329,136)(6,614,806)(6,411,150)(4,657,326)
Total other financing sources (uses)24,080 2,357,689 2,688,386 1,149,508
Extraordinary Item
Transfer to Successor Agency
Net Change in fund balances ($4,955,311) ($3,034,625)$194,917 ($1,019,763)
Debt service as a percentage of
noncapital expenditures 5.2%5.3%6.2%5.2%
Fiscal Year Ended June 30,
156
2012 2013 2014 2015 2016 2017
$51,395,116 $51,549,306 $56,686,142 $61,804,228 $65,866,218 $71,166,891
1,648,890 1,929,387 1,934,755 2,456,820 2,588,411 2,559,841
801,758 734,005 669,553 556,076 435,829 400,283
315,561 325,043 363,089 444,757 460,206 349,349
10,537,396 11,869,889 11,953,308 13,233,503 13,685,003 8,063,156
19,649,433 23,575,374 19,949,333 15,346,794 14,366,744 13,425,161
870,957 4,092,411 2,045,407 1,777,003 3,208,749 1,842,053
85,219,111 94,075,415 93,601,587 95,619,181 100,611,160 97,806,734
8,783,873 10,529,480 8,678,833 10,203,687 11,349,079 10,557,416
39,311,551 41,377,062 41,900,762 43,954,515 47,071,166 49,018,153
11,518,822 12,002,448 13,697,957 12,758,643 14,390,699 16,752,961
3,755,504 2,961,275 3,296,375 3,416,859 3,670,108 3,759,564
10,345,673 10,591,057 11,106,367 11,616,777 12,048,104 12,646,728
1,312,383 4,009,454 2,154,900 4,498,924 4,813,757 2,100,926
3,604,171 5,284,720 7,168,776 2,186,986 4,826,576 7,403,249
2,518,320 208,642 75,172 75,172 175,172
735,221 283,805 327,350 284,288 277,263 271,263
81,885,518 87,039,301 88,539,962 88,995,851 98,521,924 102,685,432
3,333,593 7,036,114 5,061,625 6,623,330 2,089,236 (4,878,698)
568,481
4,539,646 8,425,474 3,655,302 4,348,149 7,533,364 9,287,007
(4,864,293)(6,711,657)(3,053,865)(3,051,499)(6,582,555)(8,454,762)
(324,647)1,713,817 1,169,918 1,296,650 950,809 832,245
(2,352,584)
$3,008,946 $6,397,347 $6,231,543 $7,919,980 $3,040,045 ($4,046,453)
4.2%0.4%0.7%0.4%0.4%0.5%
157
CITY OF SAN RAFAEL
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct
Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b)
2008 7,024,610,641$ 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%
2017 9,025,896,811 2,390,814,514 267,468,956 135,689,202 11,819,869,483 423,545,667 12,243,415,150 12,243,415,150 0.11693%
(a)
(b)
Data Source: Marin County Assessor 2007/08 - 2016/17 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
$14,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Mi
l
l
i
o
n
s
Unsecured Property Secured Property
158
Fiscal School Misc. Special
Year City County (1)Districts Districts Total
2008 0.154 0.295 0.7225 0.0461 1.2172
2009 0.154 0.295 0.7192 0.0461 1.2139
2010 0.154 0.295 0.7402 0.0461 1.2349
2011 0.154 0.295 0.7542 0.0461 1.2489
2012 0.154 0.295 0.7831 0.0461 1.2779
2013 0.154 0.295 0.7743 0.0461 1.2691
2014 0.154 0.295 0.7890 0.0461 1.2838
2015 0.154 0.295 0.7651 0.0461 1.2599
2016 0.154 0.295 0.7846 0.0695 1.3028
2017 0.154 0.295 0.7988 0.0553 1.3028
Notes:
(1) Like other cities, San Rafael includes several property tax rate areas with different rates. A mean average is indicated.
Data Source: Marin County Assessors Office 2007/08 - 2016/17 Tax Rate Tables
CITY OF SAN RAFAEL
PROPERTY TAX RATES
ALL OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
159
CITY OF SAN RAFAEL
PRINCIPAL PROPERTY TAX PAYERS
CURRENT FY 2016/17 AND FY 2007/08
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
California Corporate Center ACQ LLC 235,592,917$ 1.92%
MGP XI Northgate LLC 141,854,871 1.16%
Professional Financial Investors Inc 52,469,836 0.43%
South Valley Apartments LLC 51,976,039 0.42%
Kaiser 47,890,626 0.39%
BRE Piper MF 33 North CA LLC 45,652,854 0.37%
Regency Center II Assoc 45,430,182 0.37% 40,116,943$ 0.42%
Northbay Properties II 44,976,649 0.37% 33,229,690 0.35%
Bay Apartment Communities Inc 42,857,370 0.35% 33,826,191 0.35%
Barbara Fasken 1995 Trust ETAL 42,474,774 0.35%
Northgate Mall Associates 119,980,919 1.26%
Hines San Rafael LLC 78,065,660 0.82%
San Rafael Associates NF 63,225,500 0.66%
Marin Sanitary Service 39,405,212 0.41%
4040 Civic Center LLC 36,206,743 0.38%
Rafael Town Center Investors LLC 32,696,979 0.34%
Bit Holdings Forty-Five Inc 31,243,240 0.33%
Subtotal 751,176,118$ 6.14% 507,997,077$ 5.33%
Total Net Assessed Valuation:
Fiscal Year 2016-2017 12,243,415,150$
Fiscal Year 2007-2008 9,531,744,911$
FY 2016-2017 FY 2007-2008
160
Delinquent taxes
Fiscal as a Percent of
Year Rate Levies Allocations Collections Apportionments Delinquencies Allocations
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%
2017 1.00 (2)25,173,651 (2)25,173,651 (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
$28
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Mi
l
l
i
o
n
s
Allocations
Apportionments
161
CITY OF SAN RAFAEL
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
RDA Tax Financing Court Fine Capitalized Pension
Fiscal Allocation Authority Note Promissory Lease Obligation
Year Bonds Revenue Bonds Payable Note Obligations Bonds Total
2008 37,537,161$ 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
2017 - -303,323 --4,390,000 4,693,323
Parking Total Percentage
Fiscal Services Note Primary of Personal Per
Year Bonds Payable Total Government Income (a)Capita (a)
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 0.41%184.77
2016 5,692,853 48,204 5,741,057 10,609,552 0.38%175.13
2017 5,433,577 41,388 5,474,965 10,168,288 n/a 167.13
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.
Governmental Activities
Business-Type Activities
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Mi
l
l
i
o
n
s
Total Governmental
Total Business
162
CITY OF SAN RAFAEL
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 2017
2016-17 Assessed Valuation:12,243,415,150$
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2017 % Applicable (1) Debt 6/30/2017
Marin Community College District 313,510,000$ 17.315% 54,284,257$
San Rafael High School District 71,215,315 78.283% 55,749,485
Tamalpais Union High School District 117,095,000 0.081%94,847
Dixie School District 18,065,810 65.888% 11,903,201
Ross School District 18,894,143 1.554% 293,615
Ross Valley School District 44,891,171 0.013%5,836
San Rafael School District 69,670,289 83.694% 58,309,852
Marin Healthcare District 157,385,000 20.831% 32,784,869
Marin Emergency Radio Authority Parcel Tax Obligations 33,000,000 17.289% 5,705,370
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 219,131,331$
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Marin County Certificates of Participation 90,392,081$ 17.289% 15,627,887$
Marin County Pension Obligation Bonds 95,475,000 17.289% 16,506,673
Marin County Transit District General Fund Obligations 111,628 17.289%19,299
Marin Municipal Water District General Fund Obligations 90,816 22.038%20,014
Marin Community College District Certification of Participation 2,420,834 17.315% 419,167
San Rafael School District Certificates of Participation 3,405,000 83.694% 2,849,781
City of San Rafael General Fund Obligations 7,377,975 100.000% 7,377,975 (2)
City of San Rafael Pension Obligations 4,390,000 100.000% 4,390,000
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 47,210,796
Less: City of San Rafael lease revenue bonds supported by parking revenues 5,474,966
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 41,735,830$
OVERLAPPING TAX INCREMENT DEBT (Successor Agency 14,424,004$ 100.000% 14,424,004$
TOTAL GROSS DIRECT DEBT 11,767,975
TOTAL NET DIRECT DEBT 6,293,009
TOTAL OVERLAPPING DEBT 268,998,157
GROSS COMBINED TOTAL DEBT 280,766,132 (3)
NET COMBINED TOTAL DEBT 275,291,166
(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 $344,711 PG&E notes.
Ratios to 2016-17 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.79%
Total Gross Direct Debt ($11,767,975)0.10%
Total Net Direct Debt ($6,293,009)0.05%
Gross Combined Total Debt 2.29%
Net Combined Total Debt 2.25%
Ratios to Redevelopment Incremental Valuation ($2,703,250,021
Total Overlapping Tax Increment Debt 0.53%
Data Source: MuniServices
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-
bonded capital lease obligations.
163
ASSESSED VALUATION:12,243,415,150$
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)459,128,068.13
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:4,693,323.00
LEGAL BONDED DEBT MARGIN 454,434,745$
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
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%
2017 459,128,068 4,693,323 454,434,745 1.03%
NOTE: (a)
Source: City of San Rafael's Finance Department
CITY OF SAN RAFAEL
COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2017
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
164
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
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
2017 5,279,801 2,425,281 2,854,520 260,000 192,038 452,038 6.31
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
5.00
6.00
7.00
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Coverage
165
165
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
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 2,817,497 46,308 3.40% 262,274 23.10%
2017 60,842 n/a n/a n/a 263,604 23.08%
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%
23.50%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
City Population
as a % of
County…$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)
166
Employer # (A) # (A)# (A) # (A) # (A) # (A) # (A) # (A) # (A)
Autodesk, Inc.719 2.28%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 2061 6.52%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 700 2.22%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 454 1.44%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 0 - - - - - - 350 1.14% 350 1.30% 350 1.30% 350 1.30% - -
Dominican University of California 456 1.44%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 280 0.89%435 1.33% 418 1.28% 385 1.24% 369 1.21% 376 1.39% 350 1.30% - - - -
Macy's 0 - - 380 1.16% 380 1.22% 380 1.24% 380 1.41% 450 1.67% 445 1.66% - -
Wells Fargo Bank 310 0.98%326 0.99% 306 0.94% 308 0.99% 334 1.09% - - - - - - - -
FICO 0 3000.91%-- -- -- -- -- -- --
Fair Issac Corp 0 - - 300 0.92% 300 0.96% - - - - - - - - 350 1.26%
Community Action Marin 255 0.81%220 0.67% 225 0.69% 300 0.96% 300 0.98% - - - - - - - -
Safeway 0 - - - - `` - - - 841 3.11% 452 1.67% 452 1.68% - -
Comcast 0 - - - - - - - - 620 2.30% 619 2.29% 619 2.30% - -
Guide Dogs for the Blind 203 0.64%225 0.69% - - - - - - - - - - 287 1.07% - -
Bernard Osher Marin JCC 0 2000.61%-- -- -- -- -- -- --
Buckelew Programs 240 0.76%1860.57%-- -- -- -- -- -- --
Ghilotti Bros.175 0.55%150 0.46% - - - - - - - - - - - - 240 0.86%
Golden Gate Bridge Highway & Transp. Dist.0 - - - - - `` - - - - - - - - 828 2.98%
YMCA 0 -- -- -- -- -- -- --3481.25%
San Rafael City High School District 0 -- -- -- -- -- -- --2500.90%
Urban Painting, Inc.0 1500.46%-- -- -- -- -- -- --
Totals 5,853 18.52% 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 2017 Employment in the City of San Rafael was 31,600 of which it is used as the denominator for the 2017 percentages are calculated.
*The number of total employment for the City is available for the last nine fiscal years only.
Data Sources: State of California, Employment Development Department, Labor Market Information Division & North Bay Business Journal (Annual Book of Lists)
CITY OF SAN RAFAEL
PRINCIPAL EMPLOYERS
FISCAL YEAR 2016-2017
LAST NINE CALENDAR YEARS
2015*2016*2017*2009*2014* 2013* 2012* 2011* 2010*
167
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Function
General Government 59.88 58.88 56.88 54.35 55.23 53.23 55.11 58.11 60.61 62.11
Public Safety 186.00 183.00 165.00 166.00 162.00 163.00 168.00 171.75 175.75 176.55
Public Works and Parks 78.80 78.80 60.80 62.80 62.00 60.00 61.00 62.00 62.00 63.00
Community Development 34.50 34.50 26.75 26.75 18.25 18.25 17.80 17.80 19.80 20.00
Culture and Recreation 85.90 85.90 83.49 89.82 81.56 80.76 83.66 84.23 84.25 84.35
Total 445.08 441.08 392.92 399.72 379.04 375.24 385.57 393.89 402.41 406.01
Data Source: City of San Rafael's Finance Department
CITY OF SAN RAFAEL
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
FT
E
'
s
General Government Public Safety
Public Works and Parks Community Development
Culture and Recreation
168
2008 2009 2010 2011
Function/Program
Public safety:
Fire:
Inspection permit issued 217 196 307 294
Police:
Police calls for service 43,488 42,227 42,227 39,512
Law violations:
Part I crimes 2,314 2,352 2,352 2,180
Physical arrests (adult and juvenile)4,182 4,487 4,487 3,102
Traffic violations 9,241 5,777 5,777 8,190
Parking violations 42,481 44,913 42,806 34,590
Public works
Street resurfacing (miles) (Eng Div)4.95 2.77 2.77 7.40
Potholes repaired (square miles)N/A N/A N/A N/A
Asphalt used for street repairs (tons)N/A N/A N/A 10,809
Culture and recreation:
Recreation class participants 8,000 8,000 9,524 9,000
Items in collection (thousands)
Library:
Items in collection (thousands)N/A 124.40 151.88 158.30
Total items borrowed (thousands)N/A N/A 371.12 435.66
Note: N/A denotes information not available.
CITY OF SAN RAFAEL
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
170
2012 2013 2014 2015 2016 2017
282 307 261 282 198 233
39,537 42,707 51,261 55,805 57,026 53,567
2,101 2,523 2,289 2,533 2,523 2,392
2,981 2,951 3,227 3,450 3,453 2,526
4,048 3,448 4,498 4,168 3,252 3,341
32,492 30,881 38,814 36,398 34,803 36,169
N/A 2.70 9.00 6.40 6.76 2.32
N/A N/A N/A N/A N/A N/A
178.9 7,500 10,700 11,000 7,195 5,800
12,075 7,082 9,857 10,023 12,725 13,493
159.18 125.92 168.62 127.76 227.89 117,354
366.46 392.23 478.96 443.64 469.79 327,297
171
2008 2009 2010 2011
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 20 20 20 20
City parks acreage 42424242
Playgrounds 14 14 14 14
City trails 20 20 20 20
Community gardens 1111
Community centers 4444
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 1222
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
172
2012 2013 2014 2015 2016 2017
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
179 179 145 145 145 145
173