HomeMy WebLinkAboutFY2017-18 CAFRCOMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDING JUNE 30, 2018
Fourth Street, San Rafael, California
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2018
City of San Rafael, California
1400 Fifth Avenue
San Rafael, California 94901
Prepared by the Finance Department of the City of San Rafael
Courtyard in Front of Bank of America Building
INTRODUCTORY SECTION
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2018
Table of Contents
INTRODUCTORY SECTION
TABLE OF CONTENTS
Letter of Transmittal .................................................................................................................................... v
Mission Statement and Vision Statement ................................................................................................... xi
City Council and Staff ............................................................................................................................... xii
Location Map ............................................................................................................................................ xiii
Organizational Chart ................................................................................................................................. xiv
Certificate of Achievement for Excellence in Financial Reporting ........................................................... xv
FINANCIAL SECTION
Independent Auditor's Report .................................................................................................................. 1
Management’s Discussion and Analysis .................................................................................................. 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ............................................................................................................. 25
Statement of Activities .................................................................................................................. 26
Fund Financial Statements:
Major Governmental Funds:
Balance Sheet ............................................................................................................................ 30
Balance Sheet - Reconciliation of Governmental Fund Balances to
Net Position of Governmental Activities .............................................................................. 32
Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 33
Reconciliation of the Net Change in Fund Balances - Total Governmental
Funds with the Statement of Activities ................................................................................. 34
Proprietary Funds:
Statement of Net Position .......................................................................................................... 36
Statement of Revenues, Expenses, and Changes in Fund Net Position .................................... 37
Statement of Cash Flows ........................................................................................................... 38
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CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2018
Table of Contents
FINANCIAL SECTION (Continued)
Fiduciary Funds:
Statement of Fiduciary Net Position ......................................................................................... 40
Statement of Changes in Fiduciary Net Position ....................................................................... 41
Notes to Basic Financial Statements .................................................................................................. 43
Required Supplementary Information:
Schedule of the City’s Proportionate Share of the Net Pension Liability ..................................... 96
Schedule of Contributions – Pension ............................................................................................ 97
Schedule of Changes in Net OPEB Liability and Related Ratios ............................................... 101
Schedule of Contributions – OPEB ............................................................................................ 102
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, 2018
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 ....................................................................... 146
Changes in Net Position – Last Ten Fiscal Years ............................................................................. 148
Fund Balances of Governmental Funds – Last Ten Fiscal Years ..................................................... 152
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .................................... 154
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, 2018
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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Gary O. Phillips, Mayor • John Gamblin, Vice Mayor • Maribeth Bushey, Councilmember • Kate Colin, Councilmember • Andrew Cuyugan McCullough, Councilmember
October 5, 2018
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, 2018, 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 (GAAP) as promulgated by the Governmental
Accounting Standards Board (GASB) and includes the report of the independent certified
public accounting firm, Maze and Associates Accountancy Corporation, which has issued
an unqualified, or “clean” opinion on the City’s financial statements for the fiscal year
ended June 30, 2018.
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.
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Gary O. Phillips, Mayor • John Gamblin, Vice Mayor • Maribeth Bushey, Councilmember • Kate Colin, Councilmember • Andrew Cuyugan McCullough, Councilmember
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, 2018 was
60,842 and is projected to grow at an average rate of 0.4% per year.
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 is one of only 14 Cultural Arts Districts in the State of California. 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
Agency for the purpose of financing redevelopment and other projects. The San Rafael
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Gary O. Phillips, Mayor • John Gamblin, Vice Mayor • Maribeth Bushey, Councilmember • Kate Colin, Councilmember • Andrew Cuyugan McCullough, Councilmember
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.
The City’s net pension liability under GASB 68 reported as of June 30, 2018 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, 2017. 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 MCERA Board reduced the discount rate from 7.25% to 7.00%,
increasing the likelihood of attaining targets and regulating risk. The City does not expect
these factors to result in a net material difference in the measurement of its net pension
obligation of $120.6 million reported in this year’s financial reports.
During fiscal year 2017-2018, 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
public safety center across the street from City Hall. These new buildings will be
seismically-safe and provide modern 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
of both Fire Station 57, located at 3530 Civic Center Drive, and Fire Station 52, located at
210 3rd Street, began in June 2017 and is expected to be completed by the beginning of
2019.
ECONOMIC FACTORS
The City has a diversified economic base, which includes an assortment of high-tech,
financial, service-based, entertainment and industrial businesses. Downtown San Rafael
provides a mix of restaurants, retail shops and financial institutions. The City’s varied
economic base is reflected in its property tax base, which is 71% residential, 19%
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Gary O. Phillips, Mayor • John Gamblin, Vice Mayor • Maribeth Bushey, Councilmember • Kate Colin, Councilmember • Andrew Cuyugan McCullough, Councilmember
commercial, 4% institutional, 6% unsecured and others. The top 25 sales tax producers
provide 50% of overall sales tax revenues.
The California economy has recovered from the Great Recession and is experiencing
one of the most prolonged periods of expansion in state history. Unemployment is
currently at an all-time low of 4.2% and has held steadily below 5% for over a year. In
November of 2017, the Federal Government passed the Tax Cuts and Jobs Act providing
a temporary boost to the nation’s economy and, as a result, California is projected to
record unprecedented capital gains for the fiscal year ahead.
Locally, Marin County’s unemployment rate is among the lowest in the State at 2.7%
and total employment figures are forecasted to grow at an average rate of 0.9% through
2022. Per capita income has seen an average annual increase of over 4% over the last
two years and is projected to continue to grow 2.1% per year through 2022. Overall,
economic indicators show Marin County to be in a steady growth pattern for the
foreseeable future with taxable sales, industrial production as well as per capita income
all projected for growth in the years ahead.
Demographic Data
The following is a sample of demographic and economic attributes that make San Rafael an
exceptional place to live and work.
Economic development organizations in San Rafael include the San Rafael Chamber of
Commerce, Downtown Business Improvement District, and the Marin Economic
Forum.
Marin County’s top 10 employers include Kaiser Permanente, Marin General Hospital,
BioMarin Pharmaceutical, Glassdoor, Dominican University of California, Bradley
Real Estate, Novato Community Hospital, Wells Fargo, FICO, and W Bradley Electric.
Major shopping areas, as measured in available retail square footage, include the
Downtown corridor (938,000 aggregate), Northgate Mall (725,000), Montecito Center
(130,000) and Northgate One (113,900).
The top three sales tax categories in 2017 for San Rafael were: 1. Autos and
Transportation (29.3%), 2. General Consumer Goods (17.3%), and 3. Building and
Construction (16.8%)
Several hotels and motels support tourism activity, led by a combined 471 rooms in the
Embassy Suites and Four Points Sheraton. Citywide, the total number of hotel rooms
is 787.
Establishing and maintaining affordable residential housing for sale and lease continues
to be a challenge both in San Rafael and throughout Marin County. The median rent
price in San Rafael is $4,000 (3 bdr home). The median home value in San Rafael is
$1,027,700.
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Gary O. Phillips, Mayor • John Gamblin, Vice Mayor • Maribeth Bushey, Councilmember • Kate Colin, Councilmember • Andrew Cuyugan McCullough, Councilmember
Recent growth and economic vibrancy:
San Rafael ranked No. 4 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.
San Rafael ranked No. 3 on the SMU National Center for Arts Research Vibrancy
Index. This 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
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 ranked 26th of 100 cities nationwide in online community research
publication Livibility.com’s annual listing of Best Places to Live in America.
San Rafael issued $48.5 million in bonds and began construction on a new Public
Safety Center as well as two fire stations and the City’s bond rating improved from
AA- to AA.
San Rafael integrated SMART train service into San Rafael’s transportation
network, including new signal systems, a Quiet Zone, parking, and other
improvements.
San Rafael developed a pilot program to regulate cannabis business activity,
including zoning changes and licensing in an effort to enhance revenues for
regulatory efforts and other city services.
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.
ix
Internal accounting controls are designed to provide reasonable, but not absolute, assurance
regarding: ( 1) the safeguarding of assets against loss from unauthorized use or disposition;
and (2) the reliability of financial records for preparing financial statements and
maintaining accountability for assets. The concept of reasonable assurance recognizes that
the cost of a control should not exceed the benefits likely to be derived. All internal control
evaluations occur within the above framework. It is management's belief that the City's
internal accounting controls adequately safeguard assets and provide reasonable assurance
that financial transactions are properly recorded.
The City develops a budget based upon City Council priorities and department objectives.
The Finance Department maintains a traditional line item budget by major function. Budget
control is accomplished at the functional or division level within each fund. This budget
creates a comprehensive management and fiscal system aimed at achieving the objectives
of each operating level consistent with those that have been set for the community by the
City Council. Each department director is responsible for accomplishing goals within his or
her functional area and monitoring the use of her or his budget allocations consistent with
policies set by the City Council and monitored by the City Manager.
ACKNOWLEDGMENTS
The preparation of this City-wide document would not have been possible without the
assistance of each of the City's departments. In addition, Finance support staff Sara Smith,
Shawn Plate and Whitney Fry, led by Accounting Manager Van Bach and RGS Consultant
Mark Moses were key to the timely issuance ofthis 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 seventh 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 made up of Mayor Phillips and
Vice-Mayor Gamblin. Their strong commitment to financial accountability and stewardship
provide inspiration to the organization and motivate a high level of achievement.
Respectfully submitted,
Nadine Atieh Hade
Interim Finance Director
CITY OF SAN RAFAEL 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 CITYOFSANRAFAEL.ORG
Gary 0 . Phillips, Mayor• John Gamblin , Vice Mayor• Maribeth Bushey, Councilmember • Kate Colin, Councilmember • Andrew Cuyugan McCullough, Councilmember x
MISSION STATEMENT
The Mission of the City of San Rafael is to enhance the quality of
life and to provide for a safe, healthy, prosperous and livable
environment in partnership with the community.
VISION STATEMENT
Our vision for San Rafael is to be a vibrant economic and cultural
center reflective of our diversity, with unique and distinct
neighborhoods in a beautiful natural environment, sustained by
active and informed residents and a responsible innovative local
government.
January 1996
xi
City Council and Staff
As of October 5, 2018
City Council
Gary O. Phillips, Mayor
John Gamblin, Vice Mayor
Maribeth Bushey, Councilmember
Kate Colin, Councilmember
Andrew McCullough, Councilmember
Elected Officials
Rob Epstein, City Attorney
Lindsay Lara, City Clerk
Executive Team
Jim Schutz, City Manager
Cristine Alilovich, Assistant City Manager
and Interim Human Resources Director
Diana Bishop, Chief of Police
Chris Gray, Fire Chief
Henry Bankhead, Interim Library Director
Paul Jensen, Community Development Director
Bill Guerin, Public Works Director
Susan Andrade-Wax, Community Services Director
Nadine Hade, Interim Finance Director
Doris Toy, District Manager/Engineer-SRSD
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xiii
ORGANIZATIONAL CHART
Electorate
City ClerkCity Attorney Mayor
& City Council
Boards &
Commissions
Assistant City
Manager
Finance
Volunteer and
Sustainability
Programs
Human
Resources
Parking Services
Police
Department
Fire
Department
Community
Development
Community
Services
Department
of
Public Works
Library Economic
Development
City Manager
Information
Technology
xiv
xvi
View of San Rafael from Mount Tamalpais, East Peak
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, 2018, 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 22%, 36%,
and 14%, 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, 2018, and the respective changes in
financial position and, where applicable, cash flows thereof for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management’s
Discussion and Analysis and required supplementary information, 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.
2
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 5,
2018 on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City’s internal control over financial
reporting and compliance.
Pleasant Hill, California
October 5, 2018
3
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2018
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, 2018. Please read it in conjunction with the basic financial statements
and the accompanying notes to those basic financial statements.
FINANCIAL HIGHLIGHTS
Government-wide:
Net Position – The assets of the City exceeded its liabilities as of June 30, 2018 by $130.2 million.
Activities – During the fiscal year the City’s total revenues of $112.6 were greater than expenses of
$108.0 million for governmental and business-type activities.
Changes in Net Position – The City’s total net position increased by $4.6 million in fiscal year 2017-2018
as compared to the net position of the previous year. Net position of governmental activities increased by
$4.6 million, while net position of the business-type activities decreased by $32 thousand.
Fund Level:
Governmental Funds – As of the close of fiscal year 2017-2018, the City’s governmental funds reported
combined ending fund balances of $87.9 million, an increase of $41.8 million primarily due to bond
proceeds from fund balance of the prior year. Of this total amount, $1.3 million is nonspendable, $73.5
million is restricted, $1.8 million is committed, and $11.3 million is assigned.
Governmental fund revenues totaled $107.4 million, an increase of $9.6 million from the those of the
previous fiscal year. Approximately one-half of this increase was in the General Fund and is attributable to
positive trends in property tax and sales tax performance. The remainder was due to an increase in traffic
mitigation fees, reimbursements from the County of Marin for major improvements to Fire Station 57,
large donations to the library facility fund, and first-time revenues for a new community facilities district.
Aside from these items, the City experienced modest to moderate growth in revenues.
Governmental fund expenditures increased by $17.7 million to $120.4 million, from $102.7 million in the
prior year, due primarily to public safety infrastructure and other capital improvement program
expenditures.
Enterprise fund operating revenue dropped slightly by $65 thousand to $5.2 million. Enterprise operating
expenditures totaled $4.6 million, an increase of $0.8 million over the previous year. The expenditure
increase 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
5
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2018
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which
have three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to
the Basic Financial Statements.
The basic financial statements include the City (primary government) and all legally separate entities (component
units) for which the government is financially accountable. This report also contains other supplementary
information in addition to the basic financial statements for further information and analysis.
Government-wide Financial Statements
The government-wide financial statements present the financial picture of the City and provide readers with a broad
view of the City’s finances. These statements present governmental activities and business-type activities
separately and include all assets of the City (including infrastructure) as well as all liabilities (including long-term
debt). Additionally, certain interfund receivables, payables, and other interfund activity have been eliminated as
prescribed by Governmental Accounting Standards Board (GASB) Statement No. 34.
The Statement of Net Position and the Statement of Activities and Changes in Net Position report information about
the City as a whole. These statements include all assets and liabilities of the City using the accrual basis of
accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s
revenues and expenses are taken into account, regardless of when cash is received or paid.
The Statement of Net Position presents information on all of the City’s assets and liabilities, with the difference
between the two reported as net position. Over time, increases in net position may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The Statement of Activities and Changes in Net Position presents information showing how the City’s net position
changed during the year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of timing of related cash flows.
In the Statement of Net Position and the Statement of Activities and Changes in Net Position, City activities are
separated as follows:
Governmental Activities – Most of the City’s basic services are reported in this category, including Public Safety,
Public Works and Parks, Community Development, Cultural and Recreation, and Government Administration
(finance, human resources, legal, City Clerk and City Manager operations). Property tax, sales and use taxes, user
fees, interest income, franchise fees, hotel taxes, business licenses, and property transfer taxes, plus state and
federal grants finance these activities.
Business-type Activities – The City charges fees to customers to cover the full costs of certain services it provides.
The City’s Parking Services program is the City’s sole business-type activity.
Discretely Presented Component Units – The government–wide financial statements include not only the City itself
(the primary government), but also the San Rafael Sanitation District, a legally separate entity for which the City is
financially accountable. Financial information for the San Rafael Sanitation District is reported separately from the
financial information presented for the primary government.
The government-wide financial statements can be found on pages 25 through 27 of this report.
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2018
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 30 through 34 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.
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2018
Proprietary funds provide the same type of information as the government-wide financial statements, only in more
detail. Like the government-wide financial statements, proprietary fund financial statements use the accrual basis
of accounting. There is no reconciliation needed between the government-wide financial statements for business-
type activities and the proprietary fund financial statements.
The basic proprietary fund financial statements can be found on pages 36 through 38 of this report.
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 94 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 96 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 $120.1 million from Governmental Activities and $10.1 million from Business-type Activities, for a total
of $130.2 million. This represents an increase of $4.6 million from the prior year net position.
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2018
The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2018 and 2017:
Current Governmental assets increased by $43.1 million, primarily due to bond proceeds being held for the public
safety facility construction and improvements. The $22.4 million increase in Capital assets reflects project-to-date
activity for this activity in combination with major traffic infrastructure improvements. Current and other liabilities
increased by approximately $6.4 million, primarily due to an increase in accounts payable due to a higher level of
construction activity. Noncurrent governmental liabilities increased by $10.0 million, a result of the new bond and
loan obligations of $54.8 million and offset by a $45.0 decrease in net pension and OPEB liabilities (Notes 9 and
11).
The net position in business-type activities reflects the fiscal activity of the Parking Services program and
decreased by $32 thousand from the previous year. The $1,731 thousand decrease in noncurrent liabilities is driven
by the decrease in net pension and OPEB liabilities. Decreases to deferred outflows and increases to deferred
inflows under the reporting requirements of GASB 68 and GASB 75 offset the liability increase, thus reducing the
impact on net position.
At June 30, 2018, the largest portion of net position in the amount of $228.1 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.
9
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2018
A portion of the City's net position, $25.6 million, is subject to external restrictions, and their use is determined by
those restrictions whether legal or by covenant. The remaining portion, unrestricted negative $123.5 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, 2018
Statement of Activities - Governmental
The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ended
June 30, 2018 and 2017:
11
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2018
The City’s governmental activities net position increased by $4.6 million during fiscal year 2017-2018. Year-over-
year increases revenues of $9.9 million outpaced the increase in expenses of $9.5 million by $0.4 million. Revenue
increases were concentrated in the areas of charges for services, property taxes and sales taxes, while increases in
program expenses were concentrated in public safety.
Growth in property taxes was aided by Measure D, a library parcel tax which generated revenues of a little over
$1.0 million, up from the $868 thousand generated by the preceding library tax, Measure C.
The year-over-year $2.8 million increase in sales taxes was buoyed by a surge in auto sales coupled with
adjustments corresponding to activity in prior years.
The $563K decline in paramedic tax revenues was due to the large collection of prior year taxes in the previous
fiscal year.
The increase in fiscal year 2017-2018 governmental expenses was due, in part to pension expense adjustments
recorded under GASB 68 and increased internal service fund expenditure allocations resulting primarily from
increased Liability Insurance and Workers’ Compensation premiums and claims during the year. The remaining
year-over-year increase is attributable to other operating costs, which increased by approximately $5 million as a
result of overtime necessary for public safety emergencies during the year as well as a general increase in overall
expenditures.
The following graph shows governmental revenues by source:
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2018
Total expenses for governmental activities were $102.5 million (excluding interest on long-term debt of $884
thousand). Program revenues offset total expenditures as follows:
Those who directly benefited from programs contributed $19.2 million in charges for services.
A total of $6.1 million in operating and capital projects were funded by outside agencies through operating,
capital grants, and contributions.
As a result, total expenses that were funded by tax revenues, investment income, other general revenues and fund
balance were $77.2 million.
Functional expenses for the year ended June 30, 2018 were as follows:
13
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2018
Statement of Activities – Business-type
The net position for business-type activities decreased from the prior year by $33 thousand.
Parking services is the City’s only business-type activity with income derived from program revenues of
$5.2 million. Program revenues include parking meter coin income of $1.9 million and parking garage
hourly and monthly parking income of $1.3 million. Revenues also include parking and non-vehicle code
fines totaling $2.0 million. Total expenses for parking services were $4.6 million and transfers out to
general fund and non-major governmental fund for support totaled $633 thousand during the fiscal year
2017-2018. The year-over-year increase in expenses was driven by routine pension-related accounting
adjustments in the parking fund.
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2018
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, 2018, the City reported a combined ending fund balance of $87.9 million of all its governmental
funds (an increase of $41.8 million from the prior year): $1.3 million is non-spendable, $73.5 million is restricted,
$1.8 million is committed, and $11.3 million is assigned.
General Fund – The General Fund is the primary operating fund of the City.
General Fund – The fund balance of the General Fund as of June 30, 2018 was $12.2 million (a decrease of
$4.5 million from the prior year balance): $1.0 million is non-spendable and $11.2 million is assigned. The
assigned portion of the balance includes $7.5 million for emergency and cash flow needs.
General Fund Budgetary Highlights:
The original adopted General Fund budget projected total revenue of $77.2 million and transfers-in of $1.3 million
for total resources of $78.5 million. This budget appropriated expenditures of $73.0 million and transfers-out of
$6.4 million for total appropriations of $79.4 million. Expenditures were later increased to $74.4 million to
accommodate bond issuance costs and reimbursable fire strike team expenses. Transfers-out were later increased to
$65.2 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; the transfer of a PG&E loan to a capital
project fund; and the transfer of bond proceeds to the Essential Facilities Capital Project Fund.
Actual revenues, at $78.5 million, were higher than the original budgeted revenues by $1.3 million. This positive
performance was primarily due to stronger-than-anticipated property tax and sales tax revenues. Actual
expenditures of $73.9 million were greater than the original budgeted expenditures by $1.0 million, primarily due
to the cost of bond issuance coupled with higher than anticipated overtime costs.
Fiscal year 2017-2018 General Fund revenues, transfers, and financing sources of 134.6 million were exceeded by
expenditures, operating and capital transfers out of $139.1 million by $4.5 million. Consistent with the City’s
Essential Facilities Project funding policy, previously accumulated funds of $4.8 million assigned to Public Safety
Facilities from Measure E funds were used to cover this difference. 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, 2018
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
$9.1 million to $6.3 million. Revenues totaled $0.8 million, while $3.0 million was charged against this fund to
support the maintenance of the City-wide traffic model. Intersection improvements at Freitas and Las Gallinas
accounted for charges of $2.9 million and a traffic study at Third and Hetherton added $32.8 thousand in charges.
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 were exceeded by expenditures and net transfers by $731 thousand in
fiscal year 2017-2018 resulting in a drop in fund balance from $6.7 million to $6.0 million.
Expenditures during fiscal year 2017-2018 totaled $4.6 million. In addition to routine street-related maintenance
which included $1.0 million in street resurfacing, major expenditures included $1.1 million for modifications to 2nd
Street at Grand Avenue, $537 thousand for improvements on G Street, $522 thousand for the Francisco Blvd.
multi-use path, $266K for modifications to the corner of 3rd and Cijos, $245 thousand for the Grand Avenue
pedestrian bicycle trail, and $218 for the Third Street rehabilitation project study.
The largest sources of revenues were $1.1 million in development impact fees, $1.3 million from State gasoline
taxes, $678 thousand in local Measure A, and $280 thousand in State RMRA (Road Maintenance and
Rehabilitation Account) 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 2017-2018 totaled $16.6 million, of which $8.8 million was
transferred from the General Fund from an allocation of Measure E Transaction and Use Tax, $2.3 million from
reimbursements from the County of Marin for its share of Fire Station 57 costs, and the remainder provided from
bond proceeds associated with the 2018 Lease Revenue Bonds.
16
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2018
Non-major Governmental Funds – The City’s non-major funds are presented in the basic financial statements in
the aggregate. At June 30, 2018, non-major funds had a total fund balance of $14.2 million, a $0.6 million increase
over that of the previous year. The largest fund balance increase, $1.7 million, was recorded in the Library Fund
which recorded two large bequeathments. The Stormwater fund increased by $400 thousand, in anticipation of
large maintenance needs. The largest decline in fund balance, $475 thousand, was in the Emergency Medical
Services Fund, a direct result of planned capital transfers to support the delivery of medical transport services.
Of the ending total non-major fund balances of $14.2 million: $12.0 million (84%) is legally restricted for specific
purposes by external funding source providers, $1.8 million (13%) is committed for special purposes by the City
Council, $0.3 (2%) million is nonspendable, 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 Proprietary Funds – Statement of
Revenues, Expenses and Changes in Net Position at page 37, the City’s Enterprise fund net position decreased by
$152 thousand during the fiscal year. The Parking Services Fund is the City’s sole business-type (Enterprise)
activity.
The proprietary fund operating revenue decreased by $65 thousand in fiscal year 2017-2018 to $5.2 million. The
Enterprise fund operating expenses were $4.6 million in fiscal year 2017-2018, an increase of $0.8 million over the
prior fiscal year. The change in operating expenses was primarily driven by the recognition of pension and OPEB
expenses under Governmental Accounting Standards Board Statement Nos. 68 and 75.
The City’s Internal Service Funds are also reported in this Proprietary Fund classification. In fiscal year 2017-2018,
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 decreased by $391 thousand. Net investment in capital assets increased by
$4.9 million, while unrestricted fund balance decreased by $5.3 million. The increase in capital assets resulted
primarily from facility projects and vehicle replacements. The decrease in unrestricted fund balance reflected the
use of accumulated funds in support of these projects. In addition, unrestricted funds were applied to the $1.0
million increase in general liabilities in the Liability Insurance fund. 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, 2018
amounts to $238.1 million, net of accumulated depreciation of $174.8 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 $29.0 million, offset by accumulated depreciation of
$6.9 million.
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2018
Additions to capital assets during fiscal year 2017-2018 included:
Building and structure projects: $0.7 million
City Hall & Terra Linda Center Re-Roof - $661k
Infrastructure: $2.5 million
G Street Improvement Phase 1- $538k
Del Presidio Blvd-Pt. San Pedro Resurfacing - $841k
2nd Street at Grand Ave. Intersection Modification - $1.2 million
The City’s Capital Assets for the fiscal years ending June 30, 2018 and 2017 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.
18
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2018
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, 2018 and 2017 were as follows:
ECONOMIC CLIMATE AND NEXT YEAR’S BUDGET
This fiscal year begins on a high note. From a national perspective unemployment is at a 17-year low of 3.9% and
the current bull market has become the longest in U.S. history with the S&P 500 setting a record high in August.
Tax cuts enacted at the end of 2017 have provided a boost to the national economy and as a result economic growth
has hit an almost four-year high and job creation as well as wage growth remain strong. However, significant
challenges still exist with rising income inequality, increasing medical and pension costs, deteriorating
infrastructure, and government deficits. Not to mention the looming trade war with China, where newly announced
tariffs $200 billion of Chinese goods threatens consumer spending and business investment.
California is also on strong economic footing to begin the fiscal year with unemployment at 4.2% with almost
350,000 nonfarm payroll jobs created in the last year, an increase of over 2%. The state’s fiscal 2019 budget
assumes continued expansion and forecasts capital gains at unprecedented high levels allowing for the state’s rainy
day fund to project full funding by year-end. Concerns of the next recession remain and the identified “Wall of
Debt” still looms over the state’s long-term outlook.
19
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2018
Locally, Marin County’s unemployment rate is among the lowest in the State at 2.7% and total employment figures
are forecasted to grow at an average rate of 0.9% through 2022. Per capita income has seen an average annual
increase of over 4% over the last two years and is projected to continue to grow 2.1% per year through 2022.
Overall, economic indicators show Marin County to be in a steady growth pattern for the foreseeable future with
taxable sales, industrial production as well as per capita income all projected for growth in the years ahead.
In San Rafael, property taxes have sustained moderate growth while sales taxes have begun to level out after years
of steady growth. The trend of consumer spending continues to shift to online retailers and away from brick-and-
mortar locations. The Wayfair ruling in June of this year could lead to a positive impact in this regard should
California capitalize on the ruling which overturned the Supreme Court’s 1992 physical presence threshold for
when states could tax remote sales.
The City’s general fund has been fueled by the momentum of six consecutive years of solid operating results. Service
levels have increased moderately over the past few years, with 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.
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.
Sales tax and transactions and use tax (Measure E) combined, represent the City’s largest tax revenue generators. The
City’s forecast shows continued, but moderate, growth interrupted by a flat year in fiscal year 2018-2019. A handful of
retail store closures account for this slow down.
The City’s second largest tax generator is property tax. The City is expecting the fiscal year 2018-2019 tax roll to increase
by approximately four percent over the previous year. Other tax and non-tax revenues are expected to grow moderately,
in the range of two to four percent.
The City’s largest expenditure relates to personnel costs. Salaries and benefits are tied to the labor agreements with
each bargaining group. With the exception of SEIU-Childcare, which has a 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, 2020.
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 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.
Following three years of funding the San Rafael Essential Facilities capital improvements project exclusively from current
General Fund Measure E revenues, the City has begun to use proceeds from the 2018 Lease Revenue Bonds. The 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 which will be used to pay debt service on the
bonds after construction. General Fund balances are expected to remain stable for the year and the Emergency and
Cashflow Reserve will continue to meet or exceed the ten percent target funding level.
20
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2018
REQUEST FOR INFORMATION
This financial report is designed to provide our residents, businesses, customers, and investors and creditors with a
general overview of the City’s finances and to demonstrate the City’s accountability for providing high quality
services within the limits of our fiscal resources. If you have questions about this report or need additional
financial information, contact the City of San Rafael – Finance Department at 1400 Fifth Avenue, Room 204, San
Rafael, California 94901.
21
CITY OF SAN RAFAEL
STATEMENT OF NET POSITION AND
STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial
activities and financial position. They are also referred to as Government-wide financial statements.
The Statement of Net Position reports the difference between the City’s total assets and the City’s total
liabilities, including all the City’s capital assets and all its long-term debt. The Statement of Net Position
focuses the reader on the composition of the City’s net position, by subtracting total liabilities from total
assets.
The Statement of Net Position summarizes the financial position of all of the City’s Governmental Activities
in a single column, and the financial position of all the City’s Business-type Activities in a single column;
these columns are followed by a total column which presents the financial position of the entire City.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special
Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these
Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund
transactions and balances. The City’s Business-type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on
the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of
when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial
statements, which reflect only current assets, current liabilities, available revenues and measurable
expenditures.
The Statement of Activities presents the City’s expenses first, listed by program, and follows these with
the expenses of its business-type activities. Program revenues - that is, revenues which are generated
directly by these programs - are then deducted from program expenses to arrive at the net expense of each
governmental and Business-type program. The City’s general revenues are then listed in the
Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net
Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City and the San Rafael Joint Powers
Financing Authority which are legally separate but are considered to be component units of the City
because they are controlled by the City, which is financially accountable for their activities. The balances
and the activities of the San Rafael Sanitation District, a discretely presented component unit, are
included in these statements in a separate column.
23
CITY OF SAN RAFAEL
STATEMENT OF NET POSITION
JUNE 30, 2018
Component
Unit
Primary Government San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
ASSETS
Cash and investments available for operations (Note 2) $55,696,735 $3,200,268 $58,897,003 $30,502,613
Restricted cash and investments (Note 2) 50,816,452 50,816,452
Receivables:
Accounts 4,108,284 41,347 4,149,631 324,537
Taxes 8,035,409 8,035,409
Grants 473,510 473,510
Interest 279,785 279,785
Loans (Note 4)460,026 460,026
Long-term receivable from the Successor Agency (Note 15D) 571,330 571,330
Long-term receivable from San Rafael Sanitation District (Note 4F) 4,621,437 4,621,437
Internal balances (Note 3B)42,069 (42,069)
Prepaid expenses and others 1,146,459 1,146,459 55,289
Capital assets (Note 5):
Nondepreciable 119,382,477 8,620,853 128,003,330 891,133
Depreciable, net 102,595,551 7,529,538 110,125,089 47,741,924
Total Assets 348,229,524 19,349,937 367,579,461 79,515,496
DEFERRED OUTFLOWS
Deferred outflows related to pension (Note 9) 37,363,857 1,199,315 38,563,172
Deferred outflows related to OPEB (Note 11) 7,567,802 165,198 7,733,000
Total Deferred Outflows 44,931,659 1,364,513 46,296,172
LIABILITIES
Accounts payable 14,521,173 95,513 14,616,686 386,592
Deposits payable 243,783 243,783
Interest payable 44,522 44,522
Developer deposits payable 599,675 599,675
Unearned revenue 231,594 231,594
Claims payable (Note 13):
Due in one year 2,696,736 2,696,736
Due in more than one year 6,846,939 6,846,939
Compensated absences (Note 1K):
Due in one year 574,457 16,933 591,390
Due in more than one year 4,021,198 118,531 4,139,729
Long-term debt (Note 6):
Due in one year 495,172 281,816 776,988
Due in more than one year 58,610,876 4,917,057 63,527,933
Long-term payable to the City of San Rafael (Note 4F)4,621,437
Net OPEB liability (Note 11)33,332,951 363,049 33,696,000
Net pension liability (Note 9)116,897,481 3,752,206 120,649,687
Total Liabilities 239,072,035 9,589,627 248,661,662 5,008,029
DEFERRED INFLOWS
Deferred inflows related to pension (Note 9)30,624,579 982,996 31,607,575
Deferred inflows related to OPEB (Note 11)3,321,843 77,157 3,399,000
Total Deferred Inflows 33,946,422 1,060,153 35,006,575
NET POSITION (Note 8):
Net investment in capital assets 217,170,376 10,951,518 228,121,894 48,633,057
Restricted for:
Special revenue projects:
Housing and street improvements 13,205,588 13,205,588
Stormwater 589,023 589,023
Emergency medical services 1,269,432 1,269,432
Other 8,962,590 8,962,590
Capital projects 1,354,628 1,354,628
Debt service 168,322 168,322
Total Restricted Net Position 25,549,583 25,549,583
Unrestricted (122,577,233) (886,848) (123,464,081) 25,874,410
Total Net Position $120,142,726 $10,064,670 $130,207,396 $74,507,467
See accompanying notes to financial statements
25
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General government $9,835,941 $517,542 $252,490
Public safety 53,231,197 5,628,478 1,842,521
Public works and parks 22,084,433 2,362,375 2,919,868 $974,603
Community development 4,040,195 3,814,892
Culture and recreation 13,285,563 6,819,303 127,791
Interest on long-term debt and fiscal charges 884,336
Total Governmental Activities 103,361,665 19,142,590 5,142,670 974,603
Business-type Activities
Parking services 4,627,716 5,203,585
Total Business-type Activities 4,627,716 5,203,585 - -
Total Primary Government $107,989,381 $24,346,175 $5,142,670 $974,603
Component Unit
San Rafael Sanitation District $12,235,868 $16,829,908 58,440$ 105,734$
General revenues:
Taxes:
Property
Sales:
Sales and Use
Measure E half-cent sales
Measure E quarter-cent sales
Measure S
Paramedic
Transient occupancy
Franchise
Business license
Other
Investment earnings
Miscellaneous
Transfers (Note 3A)
Total general revenues and transfers
Change in Net Position
Net Position, beginning of year
Net Position, end of year
See accompanying notes to financial statements
Program Revenues
CITY OF SAN RAFAEL
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2018
26
Component
Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
($9,065,909)($9,065,909)
(45,760,198)(45,760,198)
(15,827,587)(15,827,587)
(225,303)(225,303)
(6,338,469)(6,338,469)
(884,336)(884,336)
(78,101,802)(78,101,802)
$575,869 575,869
- 575,869 575,869
(78,101,802)575,869 (77,525,933)
$4,758,214
24,627,373 24,627,373 1,620,584
22,024,974 22,024,974
8,050,000 8,050,000
4,025,000 4,025,000
19,528 19,528
4,923,148 4,923,148
3,115,151 3,115,151
3,726,841 3,726,841
2,790,212 2,790,212
2,245,882 2,245,882
556,745 24,436 581,181 234,379
5,991,713 5,991,713 10,690
632,657 (632,657)
82,729,224 (608,221)82,121,003 1,865,653
4,627,422 (32,352)4,595,070 6,623,867
115,515,304 10,097,022 125,612,326 67,883,600
$120,142,726 $10,064,670 $130,207,396 $74,507,467
Primary Government
Net (Expenses) Revenues and Changes in Net Position
27
FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year. Only
individual major funds are presented in the Fund Financial Statements, while non-major funds are combined
in a single column. Individual non-major funds may be found in the Supplemental Section.
The funds described below were determined to be major funds by the City in fiscal year 2017-2018:
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.
29
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2018
Traffic and
Housing
General Mitigation Gas Tax
ASSETS
Cash and investments available for operations (Note 2)$7,628,610 $6,661,776 $6,318,344
Restricted cash and investments (Note 2)
Receivables:
Accounts 1,435,919 703,254
Taxes 7,612,489 153,689
Grants 134,479
Interest 204,510
Loans (Note 4)164,141 45,716
Long-term receivable from the
Successor Agency (Note 15D)571,330
Prepaids 844,093
Total Assets $18,595,571 $6,707,492 $7,175,287
LIABILITIES
Accounts payable $4,029,694 $401,119 $1,183,006
Deposits payable 220,730
Developer deposits payable 454,797
Unearned revenue
Total Liabilities 4,705,221 401,119 1,183,006
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - SB90 reimbursement receivable 1,096,066
Unavailable revenue - long-term receivable from Successor Agency 571,330
Total Deferred Inflows of Resources 1,667,396
Fund Balances (Note 8):
Nonspendable 1,008,234
Restricted 6,306,373 5,992,281
Committed
Assigned 11,214,720
Total Fund Balances 12,222,954 6,306,373 5,992,281
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $18,595,571 $6,707,492 $7,175,287
See accompanying notes to basic financial statements
Special Revenue Funds
30
Essential Other Total
Facilities Capital Governmental Governmental
Projects Fund Funds Funds
$3,155,347 $14,494,490 $38,258,567
50,113,396 703,056 50,816,452
1,055,056 895,086 4,089,315
269,231 8,035,409
339,031 473,510
71,123 4,152 279,785
250,169 460,026
571,330
302,366 1,146,459
$54,394,922 $17,257,581 $104,130,853
$5,185,870 $2,702,783 $13,502,472
23,053 243,783
144,878 599,675
231,594 231,594
5,185,870 3,102,308 14,577,524
1,096,066
571,330
1,667,396
302,366 1,310,600
49,209,052 11,981,982 73,489,688
1,754,983 1,754,983
115,942 11,330,662
49,209,052 14,155,273 87,885,933
$54,394,922 $17,257,581 $104,130,853
31
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2018
Total fund balances reported on the governmental funds balance sheet $87,885,933
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.208,207,110
Internal service funds are used by management to charge the cost of management of
20,707,748
Long-term liabilities, including bonds payable, are not due and payable in the current
period and, therefore, are not reported in the Governmental Funds.(59,106,048)
Compensated absences (4,595,655)
Unavailable revenue 1,667,396
Long-term receivables from San Rafael Sanitation District 4,621,437
Deferred outflow related to pension 37,363,857
Net pension liability (116,897,481)
Deferred inflow related to pension (30,624,579)
Deferred outflow related to OPEB 7,567,802
Deferred inflow related to OPEB (3,321,843)
Net OPEB liability (33,332,951)
NNet position of governmental activities $120,142,726
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.
32
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2018
Traffic and Essential Other Total
Housing Facilities Capital Governmental Governmental
General Mitigation Gas Tax Projects Fund Funds Funds
REVENUES
Taxes and special assessments $68,079,065 $39,619 $44,478 $6,730,627 $74,893,789
Licenses and permits 2,718,166 2,718,166
Fines and forfeitures 384,268 384,268
Use of money and properties 175,230 56,994 45,748 $196,846 179,713 654,531
Intergovernmental 4,103,766 2,949,961 1,825,247 8,878,974
Charges for services 2,379,046 662,332 1,097,941 10,520,775 14,660,094
Other revenue 629,348 2,158,166 2,431,900 5,219,414
Total Revenues 78,468,889 758,945 4,138,128 2,355,012 21,688,262 107,409,236
EXPENDITURES
Current:
General government 9,686,131 50,900 273,069 10,010,100
Public safety 43,481,474 8,324,234 51,805,708
Public works and parks 11,953,335 2,974,669 1,580,271 1,139,037 17,647,312
Community development 4,051,224 4,051,224
Culture and recreation 3,229,533 9,594,238 12,823,771
Capital outlay 225,996 2,986,597 16,622,567 2,980,807 22,815,967
Debt service:
Principal 280,172 280,172
Interest and fiscal charges 1,005,636 1,005,636
Total Expenditures 73,913,501 3,025,569 4,566,868 16,622,567 22,311,385 120,439,890
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 4,555,388 (2,266,624) (428,740) (14,267,555) (623,123) (13,030,654)
OTHER FINANCING SOURCES (USES)
Bonds Issued (Note 6A)45,485,000 45,485,000
Bond premium (Note 6)8,248,397 8,248,397
Note Issued (Note 6A)1,080,800 1,080,800
Transfers in (Note 3A)1,356,344 148,788 246,113 63,476,607 3,124,112 68,351,964
Transfers out (Note 3A)(65,207,407) (711,221) (548,788)(1,905,806) (68,373,222)
Total Other Financing Sources (Uses)(9,036,866) (562,433) (302,675) 63,476,607 1,218,306 54,792,939
Net Change in Fund Balances (4,481,478) (2,829,057) (731,415) 49,209,052 595,183 41,762,285
FUND BALANCES, BEGINNING OF YEAR 16,704,432 9,135,430 6,723,696 13,560,090 46,123,648
FUND BALANCES, END OF YEAR $12,222,954 $6,306,373 $5,992,281 $49,209,052 $14,155,273 $87,885,933
See accompanying notes to financial statements
Special Revenue Funds
33
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, 2018
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $41,762,285
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 added back to fund balance 22,815,967
Other capitalized expenditures are added back to fund balance 1,440,629
Loss on disposal of capital assets is deducted from fund balance (237,868)
Depreciation expense is deducted from fund balance (6,489,952)
Long-Term Debt Proceeds and Payments
Governmental funds record proceeds and payments as other financing sources and expenditures.
However, in the Statement of Net Position, those costs are reversed as increases and decreases in long-term liabilities.
Long-term debt issuance (54,814,197)
280,172
Amortized bond premium expense is added back to fund balance 121,300
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 (210,912)
Unavailable revenue (190,617)
Long-term receivable from San Rafael Sanitary District 93,601
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.403,481
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.164,186
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.(510,653)
Change in Net Position of Governmental Activities $4,627,422
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
34
PROPRIETARY FUND FINANCIAL STATEMENTS
Proprietary funds account for City operations financed and operated in a manner similar to a private business
enterprise. The intent of the City is that the cost of providing goods and services be financed primarily
through user charges, whether external or internal.
The City reports its only enterprise fund, as a major fund.
PARKING SERVICES FUND
Established to maintain parking garages, lots and spaces in the Downtown Parking District, and to pay for
parking enforcement and meter collection.
INTERNAL SERVICE FUNDS
Established to account for department services and financing performed for other departments within the
same governmental jurisdiction. Funding comes from charges assessed to the departments benefiting
from the service.
35
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2018
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
ASSETS
Current Assets:
Cash and investments available for operations (Note 2) $3,200,268 $17,438,168
Receivable:
Accounts 41,347 18,969
Total Current Assets 3,241,615 17,457,137
Noncurrent Assets:
Capital assets (Note 5):
Nondepreciable 8,620,853 3,153,481
Depreciable, net 7,529,538 10,617,437
Total Noncurrent Assets 16,150,391 13,770,918
Total Assets 19,392,006 31,228,055
DEFERRED OUTFLOWS
Deferred outflows related to pension (Note 9) 1,199,315
Deferred outflows related to OPEB (Note 11) 165,198
Total Deferred Outflows 1,364,513
LIABILITIES
Current Liabilities:
Accounts payable 95,513 1,018,701
Interest payable 44,522
Compensated absences, due in one year (Note 1K) 16,933
Claims payable, due in one year (Note 13) 2,696,736
Long-term debt, due in one year (Note 6) 281,816
Total Current Liabilities 438,784 3,715,437
Noncurrent Liabilities:
Compensated absences (Note 1K) 118,531
Claims payable (Note 13)6,846,939
Long-term debt (Note 6) 4,917,057
Net OPEB liability (Note 11) 363,049
Net pension liability (Note 9) 3,752,206
Total Noncurrent Liabilities 9,150,843 6,846,939
Total Liabilities 9,589,627 10,562,376
DEFERRED INFLOWS
Deferred inflows related to pension (Note 9) 982,996
Deferred inflows related to OPEB (Note 11) 77,157
Total Deferred Inflows 1,060,153
NET POSITION (Note 8):
Net investment in capital assets 10,951,518 13,770,918
Unrestricted (844,779) 6,894,761
Total Net Position 10,106,739 $20,665,679
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.(42,069)
Net position business-type activities $10,064,670
See accompanying notes to financial statements
36
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2018
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
OPERATING REVENUES
Charges for current services $3,166,681 $14,840,684
Other operating revenues 2,036,904 965,033
Total Operating Revenues 5,203,585 15,805,717
OPERATING EXPENSES
Personnel 2,366,761 3,670,463
Insurance premiums and claims 7,533,460
Maintenance and repairs 203,002 (146,671)
Depreciation (Note 5)241,389 1,203,311
General and administrative 1,752,383 4,739,382
Total Operating Expenses 4,563,535 16,999,945
Operating Income 640,050 (1,194,228)
NONOPERATING REVENUES (EXPENSES)
Investment income 24,436 128,744
Interest expense (184,163)
Miscellaneous income 44,124
Loss on sale of capital assets (23,226)
Total Nonoperating Revenues (Expenses) (159,727) 149,642
Income Before Transfers 480,323 (1,044,586)
TRANSFERS IN (Note 3A)1,265,351
TRANSFERS OUT (Note 3A) (632,657) (611,436)
Change in Net Position (152,334) (390,671)
NET POSITION, BEGINNING OF YEAR 10,259,073 21,056,350
NET POSITION, END OF YEAR $10,106,739 $20,665,679
* Reconciliation of the Change in Net Position with the Statement of Activities
Change in Net Position ($152,334)
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. 119,982
Change in Net Position of Business-type Activities ($32,352)
See accompanying notes to financial statements
37
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2018
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $3,166,681 $15,902,273
Cash payments to suppliers for goods and services (1,795,085) (13,328,317)
Cash payments to employees for salaries and benefits (2,422,672)(1,099,561)
Other operating revenues 2,052,607 965,033
Cash Flows from Operating Activities 1,001,531 2,439,428
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts 1,265,351
Interfund payments (570,877)(611,436)
Cash Flows from Noncapital
Financing Activities (570,877)653,915
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal payments on revenue bonds and note payable (276,092)
Interest expenses and fiscal charges (186,188)
Acquisition of capital assets (9,953)(6,338,654)
Proceeds from sale of property 44,124
Cash Flows from Capital and
Related Financing Activities (472,233)(6,294,530)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 24,436 128,744
Cash Flows from Investing Activities 24,436 128,744
NET DECREASE IN CASH AND CASH EQUIVALENTS (17,143)(3,072,443)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 3,217,411 20,510,611
CASH AND CASH EQUIVALENTS, END OF YEAR $3,200,268 $17,438,168
Reconciliation of operating income to net cash
provided by operating activities:
Operating income $640,050 ($1,194,228)
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation 241,389 1,203,311
Net change in assets and liabilities:
Accounts receivable 15,703 (18,969)
Prepaids and deposits 154,835
Loans receivable 1,080,558
(Decrease) in due to OPEB system (3,814)
Accounts payable 5,465 572,419
Compensated absence obligations (6,161)
(Decrease) in due to retirement system (45,936)
Claims payable 796,337
Net Cash Provided by Operating Activities $1,001,531 $2,439,428
NON-CASH TRANSACTIONS:
Amortization of bond discount $725
See accompanying notes to basic financial statements
38
FIDUCIARY FUND FINANCIAL STATEMENTS
Fiduciary funds are used to account for assets held by the City as an agent or custodian for other entities.
The financial activities of such funds are excluded from the Government-wide financial statements and
presented in fund statements that consist of a Statement of Net Position.
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY – PRIVATE PURPOSE
TRUST FUND
Established to account for the activities of the Successor Agency to the San Rafael Redevelopment
Agency.
PT. SAN PEDRO ROAD ASSESSMENT DISTRICT AGENCY FUND
Established to accumulate funds for payment of principal and interest for Pt. San Pedro Road Median
Landscaping Assessment District bonds.
39
CITY OF SAN RAFAEL
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2018
Successor Agency
to the Pt. San Pedro
Redevelopment Road Assessment
Agency District
Private-Purpose Agency
Trust Fund Fund
ASSETS
Cash and investments (Note 2)$194,173
Restricted cash and investments (Note 2)53 $286,396
Receivable:
Taxes 3,277,450 983
Total Assets $3,471,676 $287,379
LIABILITIES
Accounts payable $5,666
Interest payable 59,575 $25,474
Other long-term obligations (Note 15D)571,330
Due to bondholders 261,905
Long-term debt (Note 15C):
Due within one year 3,229,081
Due more than one year 12,907,667
Total Liabilities 16,773,319 $287,379
NET POSITION (DEFICIT)
Held in trust for private purpose ($13,301,643)
See accompanying notes to financial statements
40
CITY OF SAN RAFAEL
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2018
Successor Agency
to the
Redevelopment Agency
Private-Purpose
Trust Fund
ADDITIONS
Property taxes $3,930,522
Use of money and property $437
Bond premium $79,861
Total Additions 4,010,820
DEDUCTIONS
General government 156,641
Interest expense 860,792
Total Deductions 1,017,433
Change in Net Position 2,993,387
NET POSITION HELD IN TRUST FUND
FOR OTHER PURPOSES
Beginning of year (16,295,030)
End of year ($13,301,643)
See accompanying notes to financial statements
41
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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 related to the 2012 Authority Lease Revenue Refunding Bonds are
reported in the Parking Services Enterprise Funds. Activities of the Authority related to the 2018
Authority Lease Revenue Bonds are reported in the City’s General Fund and the Essential
Facilities Capital Projects Fund. 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 4F, a receivable
from the District has been established.
43
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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, 2018
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, 2018
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, 2018
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, appropriations
for capital projects, and transfers between major funds and reportable fund groups.
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, 2018
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 are recorded if acquisition or construction costs exceed $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, 2018
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 $4,448,932 $141,625 $4,590,557
Additions 3,424,331 95,069 3,519,400
Payments (3,277,608) (101,230) (3,378,838)
Ending Balance $4,595,655 $135,464 $4,731,119
Current Portion $574,457 $16,933 $591,390
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)
49
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
For assessment and collection purposes, property is classified as either “secured” or “unsecured” and
is listed accordingly on separate parts of the assessment roll. The “secured roll” is that part of the
assessment roll containing State-assessed property and real property having a tax lien that is
sufficient, in the opinion of the Country Assessor, to secure payment of the taxes. Unsecured
property comprises all taxable property not attached to land, such as personal property or business
property. Every tax levied by a county that becomes a lien on secured property has priority over all
present and future private liens arising pursuant to State law on the secured property, regardless of
the time of the creation of the other liens. A tax levied on unsecured property does not become a lien
against the taxed unsecured property, but may become a lien on other property owned by the
taxpayer.
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.
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.
50
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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. New Funds
In fiscal year 2017-2018, the City established a Special Revenue Fund, Loch Lomond Marina #2
Community Facilities District, for the purpose of reporting tax assessments and maintenance
expenditures of the District.
Q. 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.
51
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 2 - CASH AND INVESTMENTS (Continued)
California Law requires banks and savings and loan institutions to pledge government securities
with a market value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a
market value of 150% of the deposit, as collateral for these deposits. Under California Law this
collateral is held in a separate investment pool by another institution in the City’s name and places
the City ahead of general creditors of the institution.
The City’s investments are carried at fair value, as required by generally accepted accounting
principles. The City adjusts the carrying value of its investments to reflect their fair value at each
fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
B. Classification
Cash and investments as of June 30, 2018, 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 $58,897,003
Restricted cash and investments 50,816,452
Total Primary Government Cash and Investments 109,713,455
San Rafael Sanitation District (Component Unit)
Cash and investments available for operations 30,502,613
Total San Rafael Sanitation District Cash and Investments 30,502,613
Statement of Fiduciary Net Position (separate statement):
Successor Agency to the Redevelopment Agency:
Cash and investments available for operations 194,173
Restricted cash and investments 53
Total Successor Agency Cash and Investments 194,226
Pt. San Pedro Road Assessment District Agency Fund 286,396
Total Fiduciary Cash and Investments 480,622
Total Cash and Investments $140,696,690
The City does not normally allocate investments by fund. Each proprietary fund’s portion of Cash
and Investments Available for Operations is in substance a demand deposit available to finance
operations, and is considered a cash equivalent in preparing the statement of cash flows.
52
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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 securities 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 (A) Portfolio (A) One Issuer
U.S. Government Obligation 5 years N/A No limit No limit
U.S. Agency Securities and Instruments 5 years N/A 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
(A) At time of purchase
The San Rafael Sanitation District maintains all of its cash in the County of Marin pooled
investment fund for the purpose of increasing interest earnings through pooled investment
activities.
The County Pool includes both voluntary and involuntary participation from external entities.
The District is a voluntary participant. The State of California statutes require certain special
districts and other governmental entities to maintain their cash surplus with the County Treasurer.
The District has approved by resolution, the investment policy of the County of Marin which
complies with the California Government Code.
53
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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 N/A 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) At time of purchase.
(B) 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) (B)
Authorized Investment Type Minimum Credit Quality (A)
54
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 2 - CASH AND INVESTMENTS (Continued)
E. GASB 72 Fair Value Hierarchy
The following is a summary of the fair value hierarchy of the fair value of investments of the
City as of June 30, 2018:
(a)(b)(c)
Level 1 Level 2 Level 3 Total
City:
Money Market Mutual Funds $213,248 $213,248
U.S. Treasury Notes $4,434,364 4,434,364
U.S. Agency Securities and Instruments 15,515,090 15,515,090
Medium-Term Corporate Notes 3,034,527 3,034,527
Investment in Pt. San Pedro Bonds $1,455,700 (d)1,455,700
Total Investments $4,434,364 $18,762,865 $1,455,700 24,652,929
California Asset Management Program 50,094,575
Local Agency Investment Fund 19,455,618
County Investment Pool 77,770
Cash in banks and on hand 15,432,563
Total City and Investments 109,713,455
Fiduciary:
Total Investments
Cash in banks and on hand 480,622
Total Fiduciary Cash and Investments 480,622
Total City and Fiduciary Cash and Investments 110,194,077
San Rafael Sanitary District:
County Investment Pool 30,502,613
Total District's Cash and Investments 30,502,613
Total Cash and Investments $140,696,690
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.
(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.
55
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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 $213,248 $213,248
California Asset Management Program 50,094,575 50,094,575
Local Agency Investment Fund 19,455,618 19,455,618
County Investment Pool 77,770 77,770
U.S. Treasury Notes 1,488,930 $2,945,434 4,434,364
U.S. Agency Securities and Instruments 5,238,723 10,276,367 15,515,090
Medium-Term Corporate Notes 2,540,547 493,980 3,034,527
Investment in Pt. San Pedro Bonds 1,455,700 1,455,700
Total Investments $79,109,411 $15,171,481 94,280,892
Cash in banks and on hand 15,432,563
Total City Cash and Investments 109,713,455
Fiduciary:
Cash in banks and on hand 480,622
Total Fiduciary Cash and Investments 480,622
Total City and Fiduciary Cash and Investments 110,194,077
San Rafael Sanitary District:
County Investment Pool 30,502,613
Total District's Cash and Investments 30,502,613
Total Cash and Investments $140,696,690
56
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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, 2018, these investments matured in an average of 193 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 27 to 47 days at June 30, 2018.
During this fiscal year, the City invested the proceeds of the 2018 Authority Lease Revenue Bonds
with the California Asset Management Program (CAMP). CAMP is a California Joint Powers
Authority established in 1989 to provide California public agencies with professional investment
services. The CAMP Pool is a permitted investment for all local agencies under California
Government Code Section 53601(p). CAMP is directed by a Board of Trustees, which is made up of
experienced local government finance directors and treasurers.
CAMP investments are limited to investments permitted by subdivisions (a) to (n), inclusive, of
Section 53601 of the California Government Code. The City reports its investments in CAMP at
the fair value amounts provided by CAMP, which is the same as the value of the pool share in
accordance with GASB 79 requirements. At June 30, 2018, the fair value was approximate to the
City’s cost. At June 30, these investments have an average maturity of 35 days.
The City, as a CAMP shareholder, may withdraw all or any portion of the funds in its CAMP
account at any time by redeeming shares. The CAMP Declaration of Trust permits the CAMP
trustee to suspend the right of withdrawal from CAMP or to postpone the date of payment of
redemption proceeds if the New York Stock Exchange is closed other than for customary
weekend and holiday closings, if trading on the New York Stock Exchange is restricted, or if, in
the opinion of the CAMP trustees, an emergency exists such that disposal of the CAMP pool
securities or determination of its net asset value is not reasonably practicable. If the right of
withdrawal is suspended, the City may either withdraw its request for that withdrawal or receive
payment based on the net asset value of the CAMP pool next determined after termination of the
suspension of the right of withdrawal.
The County’s investment pool is not registered with the Securities and Exchange Commission as an
investment company. The pool has a credit rating of “AAA/V1.” Investments made by the Treasurer
are regulated by the California Government Code and by the County’s investment policy. The
objectives of the policy are in order of priority, safety, liquidity, yield, and public trust. The County
has established a treasury oversight committee to monitor and review the management of public
funds maintained in the investment pool in accordance with Article 6 Section 27131 of the California
Government Code. The oversight committee and the Board of Supervisors review and approve the
investment policy annually. The County Treasurer prepares and submits a comprehensive
investment report to the members of the oversight committee and the investment pool participants
every month. The report covers the types of investments in the pool, maturity dates, par value, actual
costs and fair value.
57
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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, 2018, 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:
Percentage
Amount of
Investments Invested Investments NRSRO Rating
City (except Fiduciary Funds):
Money Market Mutual Funds $213,248 < 1% Aaa/AAA
California Asset Management Program 50,094,575 53%AAAm
County Investment Pool 77,770 < 1%Aaa/AAA
U.S. Treasury Notes 4,434,364 5%AA+
U.S. Agency Securities and Instruments 15,515,090 16%AA+
Medium-Term Corporate Notes 3,034,527 3% A,A+, AA-, AA
Local Agency Investment Fund 19,455,618 21%Not Rated
Investment in Pt. San Pedro Bonds 1,455,700 2%Not Rated
Total City Investments 94,280,892
Component Unit:
Investment in County Pool 30,502,613 AAA/V1
Total Investments $124,783,505
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 $5,212,513
58
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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, 2018, were as follows:
From Fund To Fund Amount
General Fund Essential Facilities Capital Projects Fund $61,776,607 (A)
Building Maintenance Internal Service Fund 1,080,800 (G)
Non-Major Governmental Funds 2,350,000 (B)
Traffic and Housing Mitigation Fund Gas Tax Fund 223,650 (E)
Non-Major Governmental Funds 487,571 (B)
Gas Tax Fund General Fund 400,000 (C)
Traffic and Housing Mitigation Fund 148,788 (D)
Parking Services Enterprise Fund General Fund 480,831 (C)
Vehicle Replacement Internal Service Fund 51,826 (H)
Non-Major Governmental Funds 100,000 (B)
Internal Service Funds General Fund 475,513 (C)
Non-Major Governmental Funds 135,923 (B)
Non-Major Governmental Funds Gas Tax Fund 22,463 (E)
Building Maintenance Internal Service Fund 132,725 (F)
Essential Facilities Capital Projects Fund 1,700,000 (A)
Non-Major Governmental Funds 50,618 (B)
$69,617,315
(D) Transfer to Traffic and Housing Mitigation Fund was for program support.
(E) Transfer to the Gas Tax Fund were to close out ADA Projects Fund and for program support.
(G) Transfers for PG&E loan proceeds for energy improvement project.
(H) Transfer of Fixed Asset Vehicle from Parking to Fire Department.
(A) Transfers to the Essential Facilities Capital Project F und for Fire Stations 52 and 57, Public Safety Center and related Projects.
(B) Transfers to the Non-Major Governmental Funds were for administrative costs, grant matching, recreation, and other program
(C) Transfers to the General Fund were for street maintenance s upport, administrative costs and pension obligation bond debt
service principal and interest payment.
(F) Transfers to the Building Maintenance Internal Service Fund were for program support.
B. Internal Balances
GASB 34 requires internal balances to be presented in the Government-wide financial statements
only. They represent the net interfund receivables and payables remaining after the elimination of
all such balances within governmental and business-type activities.
59
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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, 2018, these loans totaled:
Employee Loans $3,751
Centertown Associates 250,169
One "H" Street Associates 45,716
Fire Chief Loan 160,390
Total $460,026
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, 2018, the balance of the employee loans receivable
was $3,751.
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, 2018, the balance of the loan including principal and accrued
interest was $250,169.
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,
2018, the balance of this loan was $45,716.
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, 2018, the balance
of the loan was $160,390.
60
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 4 – LOANS RECEIVABLE (Continued)
F. 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, 2018 is
$4,621,437, and is composed of the following:
Long-term receivable from San Rafael Sanitation District:
Defined benefit pension liability allocation (GASB 68) $3,492,468
Other post-employment benefit liability allocation (GASB 75) 1,128,969
Total long-term receivable from San Rafael Sanitation District $4,621,437
61
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 5 - CAPITAL ASSETS
Changes in capital assets during the fiscal year consisted of:
Balance Balance
June 30, 2017 Additions Retirements Transfers June 30, 2018
Governmental Activities
Capital assets not being depreciated:
Land $83,662,359 $83,662,359
Construction in progress 11,846,875 $27,307,018 ($235,870) ($3,197,905) 35,720,118
Total capital assets not being depreciated 95,509,234 27,307,018 (235,870) (3,197,905) 119,382,477
Capital assets being depreciated:
Land improvements 9,020,097 9,020,097
Buildings and structures 42,895,504 663,190 43,558,694
Machinery and equipment 18,840,995 3,057,422 (988,901) 61,780 20,971,296
Infrastructure 197,024,880 2,534,715 199,559,595
Total capital assets being depreciated 267,781,476 3,057,422 (988,901) 3,259,685 273,109,682
Less accumulated depreciation for:
Land improvements (6,070,139) (270,056)(6,340,195)
Buildings and structures (18,290,283) (1,262,812)(19,553,095)
Machinery and equipment (12,691,607) (1,224,115) 963,677 (12,952,045)
Infrastructure (126,732,516) (4,936,280)(131,668,796)
Total accumulated depreciation (163,784,545) (7,693,263) 963,677 (170,514,131)
Total net capital assets being depreciated 103,996,931 (4,635,841) (25,224) 3,259,685 102,595,551
Total governmental activity capital assets $199,506,165 $22,671,177 ($261,094) $61,780 $221,978,028
Balance Balance
June 30, 2017 Additions Retirements Transfers June 30, 2018
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 1,212,070 $9,953 ($31,932) ($61,780) 1,128,311
Total capital assets being depreciated 11,925,884 9,953 (31,932) (61,780) 11,842,125
Less accumulated depreciation for:
Buildings and structures (3,099,959) (205,363)(3,305,322)
Machinery and equipment (1,003,171) (36,026) 31,932 (1,007,265)
Total accumulated depreciation (4,103,130) (241,389) 31,932 (4,312,587)
Total net capital assets being depreciated 7,822,754 (231,436)(61,780) 7,529,538
Total business-type activity capital assets $16,443,607 ($231,436)($61,780) $16,150,391
62
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 5 - CAPITAL ASSETS (Continued)
Balance Transfers & Balance
June 30, 2017 Additions Retirements Adjustments June 30, 2018
San Rafael Sanitation District
Capital assets not being depreciated:
Land and easements $115,329 $115,329
Construction in progress 272,032 $1,813,747 ($1,309,975) 775,804
Total capital assets not being depreciated 387,361 1,813,747 (1,309,975) 891,133
Capital assets being depreciated:
Subsurface lines 35,180,273 64,893 1,309,975 36,555,141
Sewage collection facilities 42,128,689 77,114 42,205,803
General plant and administration 1,653,110 117,780 ($94,612)1,676,278
Total capital assets being depreciated 78,962,072 259,787 (94,612)1,309,975 80,437,222
Less accumulated depreciation for:
Subsurface lines (11,297,771) (565,647)(11,863,418)
Sewage collection facilities (18,562,466) (1,129,270)(19,691,736)
General plant and administration (1,096,878) (137,878) 94,612 (1,140,144)
Total accumulated depreciation (30,957,115) (1,832,795) 94,612 (32,695,298)
Total net capital assets being depreciated 48,004,957 (1,573,008)1,309,975 47,741,924
Total District's capital assets $48,392,318 $240,739 $48,633,057
Capital Asset Contributions - Some capital assets may have been acquired using Federal and State
grant funds, or were contributed by developers or other governments. These contributions are
accounted for as revenues at the time the capital assets are contributed.
Depreciation Allocation - Depreciation expense is charged to functions and programs based on
their usage of the related assets. The amounts allocated to each function or program are as
follows:
Governmental Activities
General government $157,802
Public safety 849,918
Public works and parks 5,823,897
Community development 48,630
Culture and recreation 813,016
Total Governmental Activities $7,693,263
Business-type Activities
Parking services $241,389
Total Business-type Activities $241,389
63
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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, 2018, are as follows:
Authorized Balance Balance Current
and Issued June 30, 2017 Additions Retirements June 30, 2018 Portion
Governmental Activities:
2018 Authority Lease Revenue Bonds
4.00%-5.00%, due 6/1/2034 $45,485,000 $45,485,000 $45,485,000
Add: unamortized bond premium 8,248,397 $121,300 8,127,097
2010 Taxable Pension Obligation Bonds
6.00%-6.25%, due 7/1/2025 4,490,000 $4,390,000 205,000 4,185,000 $420,000
Total Pension Obligation Bonds 4,390,000 53,733,397 326,300 57,797,097 420,000
PG & E City Hall HVAC Retrofit Note Payable
0.00%, due 11/30/2023 334,585 212,558 33,280 179,278 33,280
PG & E Street Light Retrofit Note Payable
0.00%, due 8/31/2019 233,896 90,765 41,892 48,873 41,892
PG & E CEC Efficiency Note Payable
1.00%, due 12/22/2017 1,178,813 1,080,800 1,080,800
Total Governmental Long-term Debt $4,693,323 $54,814,197 $401,472 $59,106,048 $495,172
Business-type Activities
PG & E Parking Lot Lighting Retrofit Note Payable
0.00%, due 11/30/2023 $66,380 $41,388 $6,817 $34,571 $6,816
2012 Authority Lease Revenue Refunding Bonds
2.00-4.00%, due 4/1/2033 6,750,000 5,444,999 270,000 5,174,999 275,000
Less: unamortized bond discount (11,422)(725) (10,697)
Total Enterprise Fund Debt $5,474,965 $276,092 $5,198,873 $281,816
A. 2018 Authority Lease Revenue Bonds
On March 5, 2018, the Authority issued 2018 Authority Lease Revenue Bonds in the amount of
$45,485,000 bearing interest at rates from 4.00% to 5.00%. The proceeds of the bonds were
provided for replacement of two fire stations and construction of a public safety center. Interest
on the Bonds is payable semiannually on June 1 and December 1. Principal payable on the Bonds
will be paid on June 1 starting on June 1, 2021. The Bonds maturing on or prior to June 1, 2028
are not subject to optional redemption prior to their maturity. The Bonds maturing on or after
June 1, 2029 are subject to optional redemption as a whole or in part on any date after June 1,
2028 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.
64
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 6 - LONG-TERM DEBT (Continued)
B. 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.
C. Pacific Gas and Electric Note Payable
PG&E Lighting Retrofit
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.
PG&E CEC Efficiency
On September 5, 2017, City Council approved the execution of a note payable agreement with
Pacific Gas and Electric (PG&E) in the amount of $1,178,813, bearing interest at 1%. The debt
was assumed as a means to finance the execution of various energy efficiency system upgrades to
City facilities and street lights. The upgrades will include interior and exteriors lighting upgrades
and energy management control systems. As of June 30, 2018, the loan obligation was
$1,080,800, the project is ongoing and additional note proceeds are expected in fiscal year 2018-
2019. Payments will commence in December 2020, and are due semi-annually until paid in full in
2027.
65
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 6 - LONG-TERM DEBT (Continued)
D. 2012 Authority Lease Revenue Refunding Bonds
On August 7, 2012, the Authority issued 2012 Authority Lease Revenue Refunding Bonds in the
amount of $6,750,000 bearing interest at rates from 2.00% to 4.00%. The proceeds of the Series
2012 Bonds were used to repay the Authority’s 2003 Authority Lease Revenue Bonds that
financed the construction of the 3rd and C Street parking structure and achieved lower interest
rates and lower annual debt service payments. The refunding resulted in a net present value
savings to the City in debt service of $670,496. In addition, the requisition price exceeded the net
carrying amount of the old debt by $295,278. The Series 2012 Bonds are payable from lease
payments made by the City to the Authority for leasing the City facilities. 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.
E. Future Debt Service
Future debt service requirements, including interest, at June 30, 2018, are as follows:
For the Year Governmental Activities Business-type Activities
Ended June 30 Principal Interest Principal Interest
2019 $495,172 $2,480,062 $281,816 $178,088
2020 485,261 2,454,112 291,816 169,838
2021 2,472,320 2,447,858 296,816 161,288
2022 2,662,320 2,340,346 306,816 152,588
2023 2,862,320 2,223,965 316,816 143,588
2024 - 2028 16,498,078 8,743,871 1,695,491 564,400
2029 - 2033 21,295,200 4,315,189 2,019,999 241,806
2034 - 2038 4,100,200 217,169
2039 - 2040 108,080 2,702
Totals 50,978,951 $25,225,274 5,209,570 $1,611,596
Reconciliation of Long-term debt:
Add: unamortized premium 8,127,097
Less: unamortized discount (10,697)
$59,106,048 $5,198,873
66
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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, 2018
San Rafael Redevelopment Agency 162-175 Belvedere
Multifamily Housing Revenue Bonds-2000A Apartments $3,590,529 $1,042,152
California Statewide Communities
Development Authority Revenue Bonds-2002 St. Marks School 5,605,000 3,460,000
San Rafael Redevelopment Agency
Variable Rate Demand Multifamily 55 Fairfax
Housing Revenue Bonds-2001A Apartments 3,000,000 2,000,000
San Rafael Redevelopment Agency San Rafael Commons
Multifamily Housing Revenue Bonds-2001 Apartments 6,100,000 4,725,000
San Rafael Redevelopment Agency Martinelli House
Multifamily Housing Revenue Bonds-2007 Series A Project 6,000,000 1,896,396
Multifamily Housing Revenue Bonds-2007 Series B Martinelli House 1,000,000 190,802
Pt. San Pedro Road Median Landscaping Pt. San Pedro Road 1,750,000 1,455,700
Assessment District Limited Obligation Bonds-2012 Median Landscaping
NOTE 8 – NET POSITION AND FUND BALANCE
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflow over all its liabilities, and
deferred inflows regardless of fund. Net Position is divided into three captions. These captions
apply only to Net Position, which is determined only at the Government-wide level and business
type activity and are described below:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the
current net book value of the City’s capital assets, less the outstanding balance of any debt issued
to finance these assets.
Restricted describes the portion of Net Position which is restricted to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other restrictions
which the City cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted to use.
67
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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, 2018
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
Detailed classifications of the City’s fund balances, as of June 30, 2018, 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 $164,141 $164,141
Prepaids 844,093 $302,366 1,146,459
Total Nonspendable 1,008,234 302,366 1,310,600
Restricted for:
Assessment District capital projects 301,512 301,512
Baypoint Lagoons Assessment District 260,017 260,017
Bedroom tax capital projects 86,535 86,535
Childcare 1,571,814 1,571,814
Development services 681,493 681,493
Emergency medical services 967,066 967,066
1997 financing authority revenue bonds debt service 148,874 148,874
Gas tax $5,992,281 5,992,281
Grants 762,861 762,861
Household hazmat facility 342,353 342,353
Library 2,323,676 2,323,676
Library assessment 648,704 648,704
Loch Lomond #10 Community Facilities District Fund 663,537 663,537
Loch Lomond Marina #2 Community Facilities District Fund 205,567 205,567
Low and Moderate Income Housing 906,935 906,935
Mariposa Assessment District debt service 16,573 16,573
Measure A Open Space 404,067 404,067
Measure E - Public Safety Facility $49,209,052 49,209,052
Parkland dedication 602,440 602,440
Peacock Gap Assessment District debt service 2,875 2,875
Public safety 114,879 114,879
Pt. San Pedro - Maintenance Portion 104,738 104,738
Recreation revolving 276,443 276,443
Storm water 589,023 589,023
Traffic and housing mitigation $6,306,373 6,306,373
Total Restricted 6,306,373 5,992,281 49,209,052 11,981,982 73,489,688
(Continued)
69
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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 $1,748,219 $1,748,219
Park capital projects 6,764 6,764
Total Committed 1,754,983 1,754,983
Assigned to:
Contractual commitments $38,537 38,537
MOU - One time payment 1,102,257 1,102,257
Emergency and cash flow 7,500,000 7,500,000
Infrastructure reserve 600,000 600,000
General plan / long-range planning 1,973,926 1,973,926
Open space capital projects 115,942 115,942
Total Assigned 11,214,720 115,942 11,330,662
Total Fund Balances $12,222,954 $6,306,373 $5,992,281 $49,209,052 $14,155,273 $87,885,933
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, 2018
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, 2018
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, 2018 were as follows:
Employer Employee
Contribution Rate Contribution Rate Benefit Basis
City of San Rafael Misc Tier 1 52.67%0.00% - 16.82% 2.7% @ 55 Highest year
City of San Rafael Misc Tier 2 50.02%7.89% - 12.57% 2.0% @ 55 Average three highest years
City of San Rafael Fire Tier 1 74.12%0.00% - 19.79% 3.0% @ 55 Highest year
City of San Rafael Fire Tier 2 71.40% 11.34% - 17.69% 3.0% @ 55 Average three highest years
City of San Rafael Safety Police Tier 1 73.31% 00.00% - 19.79% 3.0% @ 55 Highest year
City of San Rafael Safety Police Tier 2 73.75% 11.34% - 17.69% 3.0% @ 55 Average three highest years
PEPRA Misc 44.19%9.18% - 10.18% 2.0% @ 62 Average three highest ye ars
PEPRA Safety 62.82%14.53% 2.7% @ 57 Average three highest years
These rates were determined by MCERA, based on the actuarial valuation dated June 30, 2016.
The actual rate of return on investments during that year was 2.07% 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 $20,167,435 or the year ended June 30,
2018, based on a total payroll of $44,080,689, of which $36,349,651 represented the basis for the
plan contributions. Of the total payroll subject to plan contributions, $1,433,662 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 (14 years remaining as of June 30,
2016), except for the additional UAL attributable to the outstanding unfunded actuarial loss from
2009, which is being amortized over a separate closed period (currently 22 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, 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, 2018
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, 2018 based on the following methodology: The City’s NPL as of June 30, 2016
was updated to the measurement date of June 30, 2017, using the actual City’s plan assets as of
June 30, 2017 and estimating the change in the City’s liabilities between July 1, 2016 and June
30, 2017. 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 $120,649,687, or 32.718% of the total
MCERA NPL of $368,756,305 (reference MCERA’s GASB 67/68 report as of June 30, 2017).
This compares to the previous year’s NPL of $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).
In addition to the reporting of the NPL as of June 30, 2018, the City reported deferred inflows of
$31,607,575 and deferred outflows of $18,395,737 as of the measurement date June 30, 2017.
The City reported post-measurement date outflows of $20,167,435 from actual fiscal year 2017-
2018 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 $113,694,090. After allocations to the San Rafael
Sanitation District, the net impact on the City’s Statement of Net Position is $110,201,622.
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.
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 $20,167,435. 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 above the assumed rate were responsible for the decrease 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, 2018
NOTE 9 – PENSION PLANS (Continued)
The table below provides a summary of the key results during the reporting period:
Measurement Date Measurement Date
Description 6/30/2017 6/30/2016
Net Pension Liability $120,649,687 $167,054,850
Deferred Inflows 31,607,575 22,096,113
Deferred Outflows (18,395,737) (55,004,455)
Impact on Net Position before Deferred Outflows from Contributions 133,861,525 134,146,508
Additional Deferred Outflows - Contributions Subsequent to Measurement Date (20,167,435) (20,003,001)
Impact on Statement of Net Position before Allocations 113,694,090 114,143,507
Allocation of NPL to SRSD 3,740,703 5,320,236
Allocation of Deferred Inflows (measurement date) to SRSD 979,982 703,700
Allocation of Deferred Outflows (measurement date) to SRSD (570,354) (1,751,740)
Impact on Net Position before Allocation of Deferred Outflows
from Contributions to SRSD 4,150,331 4,272,196
Allocation of Additional Deferred Outflows (Contributions) to SRSD (657,863) (648,480)
Long-Term Receivable from SRSD, due to pension obligations (see Note 4F)3,492,468 3,623,716
Impact on Statement of Net Position, net of receivable from SRSD $110,201,622 $110,519,791
Pension Expense ($ Amount)21,503,841 30,799,273
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, 2017. The beginning of year measurement of TPL is based on the
actuarial valuation as of June 30, 2016. The TPL at the end of the measurement year,
June 30, 2017, is also measured as of the valuation date of June 30, 2016, and projected to
June 30, 2017.
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, 2016. The FNP at the end
of the measurement year, June 30, 2017, is also measured as of the valuation date of
June 30, 2016, and projected to June 30, 2017.
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. The long-
term portion of the governmental activities’ NPL is liquidated primarily by the General Fund.
74
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 9 – PENSION PLANS (Continued)
Actuarial assumptions:
The total pension liability as of June 30, 2017 (measurement date) was determined by an actuarial
valuation as of June 30, 2016, 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
$4.774 million for FY 2016-17, 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 2016-17 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.
75
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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, 2017:
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%4.60%7.35%
International Equity 22%4.75%7.50%
Fixed Income 23%0.75%3.50%
Real Assets 15%5.60%8.35%
Private Equity 8%5.10%7.85%
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 (22 years remaining as of the June
30, 2016 actuarial valuation) and an amount necessary to amortize the remaining Unfunded
Actuarial Liability as a level percentage of payroll over a closed period (14 years remaining as of
the June 30, 2016 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 96%. A one
percent increase in the discount rate decreases the TPL by approximately 11% and decreases the
NPL by approximately 79%.
76
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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 $994,119,281 $878,483,703 $783,364,452
Fiduciary Net Position 757,834,016 757,834,016 757,834,016
Net Pension Liability $236,285,265 $120,649,687 $25,530,436
Fiduciary Net Position as a Percentage of the Total Pension Liability 76.2%86.3%96.7%
Sensitivity of Net Pension Liability to Changes in Discount Rate
Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Pension
Resources
The impact of experience gains or losses and assumption changes on the Total Pension Liability
(TPL) are recognized in the proportionate share of the pension expense over the average expected
remaining service life of all active and inactive members of the plan. As of the measurement date,
this recognition period was 4 years.
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 $2,796,865
Changes in assumptions $11,840,124
Change in proportion 6,555,613 9,651,379
Changes in proportion and difference between City
contributions and proportionate share of contributions 9,380,643
Actual FY 17-18 contributions (post measurement date)20,167,435
Net difference between projected and actual earnings
on pension plan investments 9,778,688
Deferred Inflows and Outflows Before Allocations $38,563,172 $31,607,575
Allocation to SRSD
Allocation of Deferred Inflows (measurement date)$570,354 $979,982
Allocation of Deferred Outflows (measurement date)657,863
Net Deferred Inflows and Outflows $37,334,955 $30,627,593
77
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 9 – PENSION PLANS (Continued)
The $20,167,435 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, 2019. 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
2019 ($906,402)
2020 (3,053,891)
2021 (2,885,383)
2022 (6,366,162)
($13,211,838)
Subsequent Change to Discount Rate
Subsequent to MCERA’s preparation of the GASB 67/68 report as of June 30, 2017, MCERA has
changed the discount rate from 7.25% to 7.00% for use in subsequent actuarial valuations and
GASB 67/68 reporting. Decreases in the discount rate serve to increase the measurement of the
total pension liability and therefore the net pension liability.
NOTE 10 – PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION
RETIREMENT PLANS)
The City contributes to the Public Agency Retirement System (PARS), which administers a defined
contribution retirement plan. A defined contribution retirement plan provides retirement benefits in
return for services rendered, provides an individual account for each participant, and specifies how
contributions to the individual’s accounts are determined instead of specifying the amount of
benefits the individual is to receive. The benefits a participant will receive depend on the amount
contributed to the participant’s account, and the returns earned on investments on those
contributions. The Plan’s trust administrator is Phase II, P.O. Box 12919, Newport Beach,
California 92658.
As established by the plan, all eligible part-time and temporary employees of the City become
participants in the plan from the date that they are hired. An eligible employee is any employee
who, at any time during which the employer maintains this plan, is not accruing a benefit under the
Marin County Employees’ Retirement Fund.
As determined by the plan, each employee must contribute 3.75% of gross earnings to the plan. The
City contributes an additional 3.75% of the employee’s gross earnings. Contributions made by an
employee and the employer vest immediately.
During the year, the City and employees each contributed $115,100. The total covered payroll of
employees participating in the plan for the year ended June 30, 2018, was $3,069,322. The total
payroll for the year was $44,080,689.
78
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS
Plan Description
The City provides certain health care benefits for retired employees and their spouses under an
Agent Multi-Employer 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.
The provisions and benefits of the City’s Other Post Employment Benefit Plan, in effect at June 30,
2018, 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
Membership in the plan consisted of the following at June 30, 2017, the measurement date:
Active plan members 366
Inactive employees or beneficiaries currently
receiving benefit payments 337
Inactive employees entitled to but not yet
receiving benefit payments 0
Total 703
Funding Policy and Actuarial Assumptions
The City’s net OPEB liability was measured using a Total OPEB Liability and Fiduciary Net
Position measured as of June 30, 2017, using an actuarial valuation of the same date. The following
actuarial assumptions were used in the valuation: 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
7.5% in 2019 to 4.0% for the years starting 2076. 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.
79
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an
actuarial experience study for the period July 1, 2016 through June 30, 2017.
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% 4.82% 7.57%
Fixed Income 27% 1.47% 4.22%
TIPS 5% 1.29% 4.04%
Commodities 3% 0.84% 3.59%
REITs 8% 3.76% 6.51%
Total 100%
Assumed Long-Term Rate of Inflation 2.75%
Assumed Long-Term Investment Expenses n/a
Expected Long-Term Net Rate of Return 6.78%
Discount Rate 6.75%
The Expected Long-Term Rate of Return is provided by CalPERS’ Strategic Asset Allocation
Overview in August 2014 – Strategy 1.
80
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 6.75 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.
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, 2016 $49,543,000 $15,758,000 $33,785,000
Changes Recognized for the Measurement Period:
Service Cost 789,000 789,000
Interest on the total OPEB liability 3,540,000 3,540,000
Changes in benefit terms
Difference between expected and actual experience (4,107,000) (4,107,000)
Changes of assumptions 4,831,000 4,831,000
Contributions from the employer 3,475,000 (3,475,000)
Net investment income 1,675,000 (1,675,000)
Administrative expenses (8,000) 8,000
Benefit payments and refunds (3,015,000) (3,015,000)
Net Changes during July 1, 2016 to June 30, 2017 2,038,000 2,127,000 (89,000)
Balance at June 30, 2017 (Measurement Date)$51,581,000 $17,885,000 $33,696,000
Increase (Decrease)
The benefit payments and refunds includes implied subsidy benefit payments in the amount of
$782,000.
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
(5.75 percent) or 1-percentage-point higher (7.75 percent) than the current discount rate:
Discount Rate -1% Current Discount Discount Rate +1%
(5.75%) Rate (6.75%) (7.75%)
$39,904,000 $33,696,000 $28,511,000
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
$30,184,000 $33,696,000 $38,007,000
Plan's Net OPEB Liability/(Asset)
81
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Detailed information about the OPEB plan’s fiduciary net position is available in the separately
issued plan financial report. That report may be obtained from the California Public Employees’
Retirement System, CERBT, P.O. Box 942703, Sacramento, CA. 94229.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
related to OPEB
Components of OPEB Expense for fiscal year 2017-2018 were as follows:
Service Cost $789,000
Interest on Total OPEB Liability 3,540,000
Projected earning on investments (1,159,000)
Employee contributions
Administrative expense 8,000
Change in benefits
Recognition of deferred outflows/inflows:
Experience (708,000)
Assumptions 833,000
Asset Returns 92,000
OPEB Expense $3,395,000
Components of deferred outflows of resources and deferred inflows of resources related to OPEB at
June 30, 2018 were as follows:
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:
Differences between expected and actual
experience
Changes of assumptions $3,917,586 $80,414 $3,998,000
Net difference between projected and
actual earnings on plan investments 168,096 3,904 172,000
Employer contributions made subsequent
to the measurement date 3,482,120 80,880 3,563,000
Total deferred outflows of resources $7,567,802 $165,198 $7,733,000
Deferred inflows of resources:
Differences between expected and actual
experience $3,321,843 $77,157 $3,399,000
Total deferred inflows of resources $3,321,843 $77,157 $3,399,000
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.
82
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
$3,563,000 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,
2019. 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 Amortized
Ended June 30 Amount
2019 $216,000
2020 216,000
2021 217,000
2022 22,000
2023 100,000
$771,000
The table below provides a summary of the key results during this reporting period.
Measurement Date Measurement Date
Description June 30, 2017 June 30, 2016
Net OPEB Liability $33,696,000 $33,785,000
Deferred Inflows 3,399,000 -
Deferred Outflows (4,170,000) (780,000)
Impact on Net Position before deferred contributions 32,925,000 33,005,000
Additional Deferred Outflows - Contributions subsequent to measurement date (3,563,000) (3,475,000)
Impact on Statement of Net Position before Allocations 29,362,000 29,530,000
Allocation of NOL to SRSD 1,295,611 1,034,395
Allocation of Deferred Inflows (measurement date) to SRSD 130,692 -
Allocation of Deferred Outflows (measurement date) to SRSD (160,337) (23,881)
Impact on Net Position before deferred contributions to SRSD 1,265,966 1,010,514
Allocation of Additional Deferred Outflows (contributions) to SRSD (136,997) (106,394)
Long-Term Receivable from SRSD, due to OPEB obligations (see Note 4F)1,128,969 904,120
Impact on Statement of Net Positions, net of receivable from SRSD 28,233,031 28,625,880
OPEB Expense ($ Amount)3,395,000 3,283,000
Covered Employee Payroll ($ Amount)32,885,135 32,126,272
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, 2017 ($33,524,000) varies slightly from the
figure reported in the actuarial report dated June 30, 2018 ($33,786,000) by $262,000.
83
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS
The City participates in the jointly governed organizations discussed below through formally
organized and separate entities established under the Joint Exercise of Powers Act of the State of
California. As separate legal entities, these entities exercise full powers and authorities within the
scope of the related Joint Powers Agreements including the preparation of annual budgets,
accountability for all funds, the power to make and execute contracts and the right to sue and be
sued. Each joint organization is governed by a board consisting of representatives from member
municipalities. Each board controls the operations of the respective joint organization, including
selection of management and approval of operating budgets, independent of any influence by
member municipalities beyond their representation on that board. Obligations and liabilities of this
joint organization are not the City’s responsibility and the City does not have an equity interest in
the assets of each joint organization except upon dissolution of the joint organization.
A. The Marin County Integrated On-Line Library System (System)
The MARINet Library Consortium was formed to provide for the procurement, ownership,
operation, maintenance, and governance of shared library services among the libraries, public and
academic, in Marin County. Current services shared and paid for on a consortial level through
annual membership dues include an integrated library system including patron database,
cataloging system, and online catalog of materials; delivery of items between libraries in Marin, a
statewide library delivery service called Link+, numerous online resources, and more. The
Governing Board of the System consists of the library director or designated alternate of each
participant in the System. In accordance with the cost sharing formula developed by the library
directors of the participants, the City’s share of annual operating costs is 16.39% or $247,011 for
the year ended June 30, 2018. 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 $688,072 for the year ended June 30, 2018. Financial statements of
the MGSA can be obtained at 555 Northgate Drive, Suite 230, San Rafael, California 94903.
84
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
C. The Marin Emergency Radio Authority (MERA)
MERA was formed on February 28, 1998, by the County of Marin and 25 local agencies within
the County to plan, finance, implement, manage, own, and operate a County-wide public safety
and emergency radio system. The Governing Board consists of one representative from each
member. In February 2010, MERA refinanced its 1999 Revenue Bonds; the 1999 bonds were
originally issued in the amount of $26,940,000 to finance the acquisition of the system. The 2010
refunding bonds were issued at a premium of $934,832 above their par value of $18,575,000.
These bonds mature annually through 2021 and bear interest from 2% to 4%. Similar to the
original bonds, the refunding bonds are special obligations of MERA and are secured by the
Members’ service payments. One February 1, 2007, MERA borrowed $2,250,000 from Citizens
Business Bank. The note is being amortized over 14 ½ years at an annual interest rate of 4.43%.
Loan Payments are funded by member operating payments. 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 operations 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 $319,449 of the Authority’s operation and debt service for
the fiscal year ended June 30, 2018. The City has established a reserve in its internal service
funds to pay future service payments. Financial statements of the MERA can be obtained at 95
Rowland Way, Novato, California 94945.
D. The Countywide Planning Agency
The Agency was established on October 16, 1990, by the County of Marin and the cities of
Belvedere, Corte Madera, Fairfax, Larkspur, Mill Valley, Novato, Ross, San Anselmo, San Rafael,
Sausalito, and Tiburon to implement countywide performance standards for traffic, housing, water
and sewer facilities, and environmental protection to ensure that residential and commercial growth
does not exceed local water, sewer and transportation capacities. The Governing Board of the
Countrywide Planning Agency consists of one member of the County Board of Supervisors and one
member of the City Council of each participating city. Financial statements of the Agency can be
obtained at 3501 Civic Center Drive, San Rafael, California 94903.
E. The Marin Telecommunications Agency
The Agency was established to regulate the rates for cable television service and equipment and
to advise the participants of their license authority. The Governing Board of the Marin
Telecommunications Agency consists of one member from each of the eleven participating
agencies. The City’s contribution to the Agency was $72,914 for the year ended June 30, 2018.
Financial statements of the Agency can be obtained at 555 Northgate Drive, Suite 230, San
Rafael, California 94903.
85
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
F. The Marin County Hazardous and Solid Waste Joint Powers Authority
The Authority was established by the County, local cities, and waste franchising districts to
finance, prepare and implement source reduction and recycling elements on a county-wide
integrated waste management plan as required by State Assembly Bill 939. The City’s
contribution to the Authority was $17,850 for the year ended June 30, 2018. 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.
The financial statements of the Agency are available at the CMSA office. Condensed financial
information for the Agency is presented below for June 30, 2017 and 2016, the most recent
information available.
2017 2016
Total assets $99,239,615 $106,391,299
Deferred outflows of resources 5,961,780 2,092,186
Total liabilities (61,321,187) (60,370,523)
Deferred inflows of resources (1,260,848)(2,487,504)
Net position $42,619,360 $45,625,458
Total revenues $17,235,271 $16,952,527
Total expenses (16,793,252) (16,834,929)
Total contributions and adjustments (1,283,532)162,705
Prior period adjustment (2,164,585)
Change in net position ($3,006,098)$280,303
86
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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 $121,046,940. 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. The City contributed a total of $328,857 in liability coverage
premiums during the fiscal year ended June 30, 2018. Five years after settlement of all claims for
a program year, CJPRMA will retroactively adjust 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.
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.
87
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 13 - RISK MANAGEMENT (Continued)
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 ** 2018 2017
Balance, beginning of year $2,581,529 $6,165,809 $8,747,338 $8,588,566
Current year claims and changes
in estimates 1,781,739 820,144 2,601,883 1,878,276
Claims paid (805,361) (1,000,185) (1,805,546) (1,719,504)
Balance, end of year $3,557,907 $5,985,768 $9,543,675 $8,747,338
Due in one year $1,484,580 $1,212,156 $2,696,736 $2,653,288
Due in more than one year 2,073,327 4,773,612 6,846,939 6,094,050
Total claim liabilities $3,557,907 $5,985,768 $9,543,675 $8,747,338
* Liability based on an actuarial valuation as of March 31, 2018, extrapolated to June 30, 2018
** Liability based on an actuarial valuation as of December 31, 2017, extrapolated to June 30, 2018
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.
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.
88
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 13 - RISK MANAGEMENT (Continued)
The following summarizes active insurance policies as of June 30, 2018 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, 2017 and 2016 (latest information available).
2017 2016
Assets $28,419,707 $28,336,567
Liabilities (17,241,037) (16,735,609)
Net assets $11,178,670 $11,600,958
Revenues $11,166,523 $11,843,583
Expenses (11,588,811) (10,946,085)
Increase (decrease) in net assets (422,288) $897,498
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, 2018.
Major Contracts
In December 2017, the City entered into a contract for the construction of a public safety
administrative center and fire station in the amount of $36,727,000. The primary source of
funding for these projects comes from a portion of General Fund revenues attributable to the
Measure E Transactions and Use Tax. Lease Revenue Bonds were issued in March 2018 in order
to ensure sufficient funds are on hand to support these contracts. Similarly, contracts for the
construction of fire stations 52 and 57 were entered into for the amount of $19,098,834.
89
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Continued)
B. District
As of June 30, 2018, SRSD had several contracts for sewer improvement projects with remaining
obligations of approximately $2,041,000, the majority of which are expected to be completed
within the 2018-2019 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).
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.
90
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 15 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
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.
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.
91
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 15 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
2002 Tax Allocation Refunding Bonds
On October 9, 2002, the former Agency issued Tax Allocation Refunding Bonds in the amount of
$25,020,000. The proceeds of the bonds were used to refund the 1992 Tax Allocation Refunding
Bonds and the 1995 Tax Allocation Bonds. The Bonds mature annually each December 1 from
2002 to 2022, in amounts ranging from $540,000 to $1,920,000 and bear interest at rates ranging
from 2.00% to 5.25%. Interest is payable semiannually on June 1 and December 1. The Bonds
maturing on or after December 1, 2013, are subject to optional redemption prior to maturity, in
whole or in part, and by lot within any one maturity, prior to their respective maturity dates, on
any date on or after December 1, 2012, at a price equal to the principal amount, plus accrued
interest on the redemption date. The bonds are payable from tax revenues to be derived from the
redevelopment activities of the former Agency related to the Central San Rafael Redevelopment
Project Area.
2009 Tax Allocation Refunding Bonds
On December 14, 2009, the former Agency issued 2009 Tax Allocation Refunding Bonds in the
amount of $14,660,000 bearing interest at rates from 3.00% to 5.00%. The proceeds of the Series
2009 Bonds were used to refund the former Agency’s 1999 Tax Allocation Current Interest
Bonds, to advance funds to the City to finance street and parking improvements for the benefit of
the Agency’s Central San Rafael Redevelopment Project. Principal payments are due annually on
December 30 and interest payable semiannually on June 30 and December 30.
The Series 2009 Bonds maturing on or before December 1, 2019, are not subject to optional
redemption prior to their respective stated maturities. The Series 2009 Bonds maturing on or
after December 1, 2020, are subject to optional redemption as a whole or in part either on a pro
rata basis among maturities or in inverse order of maturity, and by lot within any one maturity,
prior to their respective maturity dates, at the option of the Agency, on any date on or after
December 1, 2019, at a price equal to the principal amount of such Series 2009 Bonds called for
redemption, together with interest accrued on the date fixed for redemption, without premium.
Use of Tax Increment
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 $16.1 million in remaining
debt service on the Bonds, which is scheduled to occur in 2023. For fiscal year June 30, 2018,
tax increment revenues amounted to $3.9 million which was used to make the debt service
payments of $3.6 million.
92
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
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, 2018:
Authorized Balance Balance Current
and Issued June 30, 2017 Additions Retirements June 30, 2018 Portion
San Rafael Redevelopment Agency
1999 Tax Allocation Bonds
Capital Appreciation Bonds
5.58%-5.6%, due 12/1/2022 $2,389,004 $6,418,508 $363,939 $6,782,447 $1,479,081
2002 Tax Allocation Refunding Bonds
2.00%-5.25%, due 12/1/2021 25,020,000 4,230,000 $1,920,000 2,310,000 $540,000
2009 Tax Allocation Refunding Bonds
3.00%-5.00%, due 12/1/2022 14,660,000 7,805,000 1,160,000 6,645,000 1,210,000
Add: deferred bond premium costs 479,162 79,861 399,301
Total Successor Agency Long-term Debt $18,932,670 $363,939 $3,159,861 $16,136,748 $3,229,081
Debt Service Requirements
Annual debt service requirements are shown below:
For the Year Governmental Activities
Ended June 30 Principal Interest
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 $16,918,517 $1,039,189
Reconciliation of long-term debt:
Less: unaccreted discount ($1,181,070)
Add: deferred bond premium costs 399,301
$16,136,748
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.
93
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2018
NOTE 15 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
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, 2018:
Approved Balance Balance
Amount June 30, 2017 Retirements June 30, 2018
Unfunded Pension Liability $1,904,431 $761,773 $190,443 $571,330
Total Long-Term Obligations $761,773 $190,443 $571,330
Annual repayment requirements are shown below:
For the Year
Ended June 30 Principal
2019 $190,443
2020 190,443
2021 190,444
Totals $571,330
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, 2018, the Successor Agency had prepared eleven 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
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2018
6/30/2015 6/30/2016 6/30/2017 6/30/2018
City's proportionate share 30.0453%36.7394%34.9538%32.7180%
Proportionate share of total pension liability $677,753,565 $907,195,058 $900,629,287 $878,483,703
Proportionate share of fiduciary net position 603,499,779 764,871,931 733,574,437 757,834,016
Proportionate share of the net pension liability $74,253,786 $142,323,127 $167,054,850 $120,649,687
Plan fiduciary net position as a percentage of the total pension liability 89.04%84.31%84.31%86.27%
Covered payroll (report date)$31,073,560 $32,126,272 $32,885,135 $36,349,651
Net pension liability as a percentage of covered payroll 236.26%443.01%508.00%331.91%
* - The fiscal year ended June 30, 2015 was the first year of implementation, therefore only four years are shown
Last 10 years*
Schedule of the City's Proportionate Share of the Net Pension Liability
96
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2018
Schedule of Contributions
Defined Benefit Pension
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
2015
Co ntractually required contribution 17,802,358$
Contributions in Relation to the
Contractually required contribution 17,802,358
Contribution Deficiency/ (Excess)-$
Covered payroll 31,073,560$
Contributions as a percentage of
covered payroll 57.29%
Notes to Schedule
Valuation Date / Timing 6/30/2013 (for contributions made in FY2014-2015)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2014-15):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Actuarial Loss from 2009
Remaining Amortization period Unfunded liability - 17 years / Extraordinary Actuarial Loss - 25 years
Asset valuation method 5-year smoothed market, 80% /120% corrido r 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
97
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2018
2016
Contractually required contribution 19,339,577$
Contributions in Relation to the
Contractually required contribution 19,339,577
Contribution Deficiency/ (Excess) -$
Covered payroll 32,885,135$
Contributions as a percentage of
covered payroll 58.81%
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)
98
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2018
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)
99
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2018
2018
Contractually required contribution 20,167,435$
Contributions in Relation to the
Contractually required contribution 20,167,435
Contribution Deficiency/ (Excess)-$
Covered payroll 36,349,651$
Contributions as a percentage of
covered payroll 55.48%
Notes to Schedule
Valuation Date / Timing 6/30/2016 (for contributions made in FY2017-2018)
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
(22 years remaining as of 6/30/16), the remaining UAL as of June 30, 2013
(14 years as of 6/30/16), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/o ut and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 18 years remaining as of June 30, 2017
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 CalPERS 2014 Pre-Retirement Non-Industrial Death rates (plus Duty-Related
death rates for Safety 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)
(Continued)
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, 2018
Measurement period 2015-16 2016-17
Total OPEB liability
Service cost 766,000$789,000$
Interest 3,447,000 3,540,000
Differences between expected and actual experience -(4,107,000)
Assumption changes -4,831,000
Benefit payments, including refunds of employee contributions (2,896,000)(3,015,000)
Net change in total OPEB liability 1,317,000 2,038,000
Total OPEB liability - beginning 48,226,000 49,543,000
Total OPEB liability - ending (a)49,543,000$ 51,581,000$
OPEB fiduciary net position
Contributions - employer 2,896,000$ 3,475,000$
Net investment income 157,000 1,675,000
Benefit payments, including refunds of employee contributions (2,896,000)(3,015,000)
Administrative expense (7,000)(8,000)
Net change in plan fiduciary net position 150,000 2,127,000
Plan fiduciary net position - beginning 15,608,000 15,758,000
Plan fiduciary net position - ending (b)15,758,000$ 17,885,000$
Plan net OPEB liability - ending (a) - (b)33,785,000$ 33,696,000$
Plan fiduciary net position as a percentage
of the total OPEB liability 31.81%34.67%
Covered employee payroll 32,885,135$ 36,350,000$
Plan net OPEB liability as a percentage of covered employee payroll 102.74%92.70%
Historical information is required only for the measurement periods for which GASB 75 is applicable.
Other Post-Employment Benefits (OPEB)
Last Ten Fiscal Years
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
101
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 36,349,651$
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-yea r 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
Same as discount rate - expected City contributions projected to keep
102
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
2017-18
Actuarially determined contribution 3,530,000$
Contributions in relation to
the actuarially determined contribution (3,563,000)
Contribution deficiency (excess) (33,000)$
Covered employee payroll 36,350,000$
Contributions as a percentage of
covered employee payroll 9.71%
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 06/30/18.
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, 2017
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-yea r period
Remaining Amortization 18 years remaining as of June 30, 2017
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.75% at June 30, 2017; 7.25% at June 30, 2016
Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2017 actuarial valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/17 MCERA assumptions
Medical Trend Non-Medicare - 7.5% for 2019, decreasing to 4.00% for
2076 and later years and Medicare - 6.5% for 2019, decreasing
to 4.00% for 2076 and later years
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived
PEMHCA minimum - 60%
Cap Increases None
Post-retirement mortality: projected fully generational with Sc ale MP-2017
Pre-retirement mortality: projected 15-year static with 90% of Scale MP-
2016
Same as discount rate - expected City contributions projected to keep
sufficient plan assets to pay all benefits from trust
103
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, 2018
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and special assessments $66,848,000 $68,146,000 $68,079,065 ($66,935)
Licenses and permits 2,782,001 2,718,001 2,718,166 165
Fines and forfeitures 457,000 361,000 384,268 23,268
Use of money and properties 238,200 172,248 175,230 2,982
Intergovernmental 3,323,000 4,104,000 4,103,766 (234)
Charges for services 2,980,450 2,359,450 2,379,046 19,596
Other revenue 504,443 593,000 629,348 36,348
Total Revenues 77,133,094 78,453,699 78,468,889 15,190
EXPENDITURES
Current:
General government 9,633,840 10,112,800 9,686,131 426,669
Public safety 43,270,572 43,270,572 43,481,474 (210,902)
Public works and parks 11,512,555 11,512,550 11,953,335 (440,785)
Community development 4,570,436 4,621,013 4,051,224 569,789
Culture and recreation 3,255,719 3,255,719 3,229,533 26,186
Capital outlay 90,690 210,690 225,996 (15,306)
Debt service:
Principal 280,172 280,172 280,172
Interest and fiscal charges 271,263 1,016,986 1,005,636 11,350
Total Expenditures 72,885,247 74,280,502 73,913,501 367,001
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 4,247,847 4,173,197 4,555,388 382,191
OTHER FINANCING SOURCES (USES)
Bonds issued 45,485,000 45,485,000
Bond premium 8,248,397 8,248,397
Loan issued 1,080,000 1,080,800 800
Transfers in 1,356,344 1,356,344 1,356,344
Transfers out (6,375,000) (65,207,407) (65,207,407)
Total Other Financing Sources (Uses)(5,018,656) (9,037,666) (9,036,866)800
Net Change in Fund Balances ($770,809) ($4,864,469) (4,481,478) $382,991
FUND BALANCES, BEGINNING OF YEAR 16,704,432
FUND BALANCES, END OF YEAR $12,222,954
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, 2018
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and special assessments $39,619 $39,619
Use of money and properties $82,000 $82,000 56,994 (25,006)
Charges for services 300,000 940,000 662,332 (277,668)
Total Revenues 382,000 1,022,000 758,945 (263,055)
EXPENDITURES
Current:
General government 50,900 50,900
Capital outlay 150,000 2,975,021 2,974,669 352
Total Expenditures 150,000 3,025,921 3,025,569 352
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 232,000 (2,003,921) (2,266,624) (262,703)
OTHER FINANCING SOURCES (USES)
Transfers In 148,788 148,788
Transfers Out (711,221) (711,221)
Total Other Financing Sources (Uses)(562,433) (562,433)
Net Change in Fund Balances $232,000 ($2,566,354) (2,829,057) ($262,703)
9,135,430
FUND BALANCES, END OF YEAR $6,306,373
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, 2018
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and special assessments $44,478 $44,478
Use of money and properties $48,000 $48,000 45,748 (2,252)
Intergovernmental 2,443,942 2,443,942 2,949,961 506,019
Charges for services 1,043,600 1,043,600 1,097,941 54,341
Total Revenues 3,535,542 3,535,542 4,138,128 602,586
EXPENDITURES
Current:
General government 16,740 16,740 16,740
Public works and parks 4,367,999 6,239,801 1,580,271 4,659,530
Capital outlay 3,636,891 11,361,414 2,986,597 8,374,817
Total Expenditures 8,021,630 17,617,955 4,566,868 13,051,087
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (4,486,088) (14,082,413) (428,740) 13,653,673
OTHER FINANCING SOURCES (USES)
Transfers in 246,113 246,113
Transfers out (400,000) (548,788) (548,788)
Total Other Financing Sources (Uses)(400,000) (302,675) (302,675)
Net Change in Fund Balances ($4,886,088) ($14,385,088) (731,415) $13,653,673
FUND BALANCES, BEGINNING OF YEAR 6,723,696
FUND BALANCES, END OF YEAR $5,992,281
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, 2018
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $196,846 $196,846
Other revenue 2,158,166 2,158,166
Total Revenues 2,355,012 2,355,012
EXPENDITURES
Capital outlay $4,025,000 $16,622,567 16,622,567
Total Expenditures 4,025,000 16,622,567 16,622,567
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (4,025,000) (16,622,567) (14,267,555) 2,355,012
OTHER FINANCING SOURCES (USES)
Transfers in 4,025,000 63,476,607 63,476,607
Total Other Financing Sources (Uses)4,025,000 63,476,607 63,476,607
Net Change in Fund Balances $46,854,040 49,209,052 $2,355,012
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR $49,209,052
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 #10 Community Facilities District Fund – Established to provide maintenance for
stormwater and geotechnical mitigation facilities. A Mello Roos District was formed to fund this
maintenance.
Loch Lomond Marina #2 Community Facilities District Fund – Established to report tax
assessments and maintenance expenditures of the District.
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.
111
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Pt. San Pedro Maintenance Portion Special Revenue Fund – Established to account for ongoing
maintenance needs within the Pt. San Pedro assessment district.
Low and Moderate Income Housing Special Revenue Fund – Established to account for the
activities related to the assets assumed by the City as Housing Successor to the San Rafael
Redevelopment Agency for the housing activities of the former Redevelopment Agency.
Measure A Open Space Special Revenue Fund – Established to account for the use of proceeds
distributed by the County of Marin from Measure A, as well as other supplementary matching or
City-funding for the operation or maintenance of open space, park or recreation lands.
DEBT SERVICE FUNDS
Peacock Gap Assessment District Fund – Established to accumulate funds for the payment of
principal and interest for the 1993 Bonds which matured in 2005. The proceeds were used to refund
the 1984 Bonds, which provided for the construction of public improvements in the project area.
Financing is to be provided by property tax increments generated within the specific geographic
region described by the bond assessment district.
Mariposa Assessment District Fund - Established to accumulate funds for the payment of principal
and interest for the 1993 Bond, which matured in 2008. The proceeds were used to finance the
grading and paving of Mariposa Road.
1997 Financing Authority Revenue Bonds Fund – Established to accumulate funds for the payment
of principal and interest for the 1997 Revenue Bonds which matured in 2011. The proceeds were
used to purchase the previously issued special assessment bonds. Financing is to be provided by
property tax increments generated within the specific geographic region described by the bond
assessment district.
CAPITAL PROJECTS FUNDS
Capital Improvement Fund – Established for the costs associated with major capital improvement
projects not tied to specific funds elsewhere. Improvements could include medians, parkways,
sidewalks, and other public assets.
Bedroom Tax Fund – Established to collect funds from multiple-unit housing used to pay for
maintaining and developing parks within local neighborhoods.
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
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2018
SPECIAL REVENUE FUNDS
Baypoint Loch Lomond
Lagoons Household #10
Recreation Assessment Hazmat Community
Revolving District Facility Childcare Facilities Dist.
ASSETS
Cash and investments $584,533 $259,852 $207,797 $1,588,156 $663,436
Restricted cash and investments
Receivables:
Accounts 179,426 403,207
Taxes 165 101
Grants 24,093
Interest
Loans
Prepaids
Total Assets $763,959 $260,017 $611,004 $1,612,249 $663,537
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $255,922 $125,273 $40,434
Deposits payable
Developer deposits payable 143,378
Deferred revenue 231,594
Total Liabilities 487,516 268,651 40,434
Fund Balances:
Nonspendable
Restricted 276,443 $260,017 342,353 1,571,815 $663,537
Committed
Assigned
Total Fund Balances 276,443 260,017 342,353 1,571,815 663,537
Total Liabilities and Fund Balances $763,959 $260,017 $611,004 $1,612,249 $663,537
114
SPECIAL REVENUE FUNDS
Loch Lomond
Marina #2
Community Library Public Development
Facilities Dist. Library Assessment Safety Stormwater Services Grants
$204,238 $2,324,113 $708,010 $79,945 $991,200 $684,418 $709,359
37,169 15,450 28,069
1,328 5,299
64,938
$205,566 $2,324,113 $708,010 $117,114 $1,011,949 $712,487 $774,297
$437 $59,306 $2,235 $422,926 $6,440 $11,436
23,053
1,500
437 59,306 2,235 422,926 30,993 11,436
$205,566 2,323,676 648,704 114,879 589,023 681,494 762,861
205,566 2,323,676 648,704 114,879 589,023 681,494 762,861
$205,566 $2,324,113 $708,010 $117,114 $1,011,949 $712,487 $774,297
(Continued)
115
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2018
SPECIAL REVENUE FUNDS
Low and
Emergency Pt. San Pedro Moderate
Parkland Medical Business Maintenance Income
Dedication Services Improvement Portion Housing
ASSETS
Cash and investments $604,678 $526,868 $21,247 $124,598 $656,069
Restricted cash and investments
Receivables:
Accounts 231,765
Taxes 33,758 497
Grants 250,000
Interest 696
Loans 250,169
Prepaids 302,366
Total Assets $604,678 $1,344,757 $21,247 $125,095 $906,934
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $2,237 $75,325 $21,247 $20,357
Deposits payable
Developer deposits payable
Deferred revenue
Total Liabilities 2,237 75,325 21,247 20,357
Fund Balances:
Nonspendable 302,366
Restricted 602,441 967,066 104,738 $906,934
Committed
Assigned
Total Fund Balances 602,441 1,269,432 104,738 906,934
Total Liabilities and Fund Balances $604,678 $1,344,757 $21,247 $125,095 $906,934
116
SPECIAL
REVENUE
FUNDS DEBT SERVICE FUNDS CAPITAL PROJECTS FUNDS
1997
Peacock Gap Mariposa Financing
Measure A Assessment Assessment Authority Capital Bedroom Assessment
Open Space District District Revenue Bonds Improvement Tax Districts
$241,405 $2,875 $16,573 $148,874 $2,713,263 $86,535 $223,742
625,286 77,770
228,083
3,456
$469,488 $2,875 $16,573 $148,874 $3,342,005 $86,535 $301,512
$65,422 $1,593,786
65,422 1,593,786
404,066 $2,875 $16,573 $148,874 $86,535 $301,512
1,748,219
404,066 2,875 16,573 148,874 1,748,219 86,535 301,512
$469,488 $2,875 $16,573 $148,874 $3,342,005 $86,535 $301,512
(Continued)
117
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2018
CAPITAL PROJECTS FUNDS
Total
Park Non-Major
Capital Open Governmental
Projects Space Funds
ASSETS
Cash and investments $6,764 $115,942 $14,494,490
Restricted cash and investments 703,056
Receivables:
Accounts 895,086
Taxes 269,231
Grants 339,031
Interest 4,152
Loans 250,169
Prepaids 302,366
Total Assets $6,764 $115,942 $17,257,581
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $2,702,783
Deposits payable 23,053
Developer deposits payable 144,878
Deferred revenue 231,594
Total Liabilities 3,102,308
Fund Balances:
Nonspendable 302,366
Restricted 11,981,982
Committed $6,764 1,754,983
Assigned $115,942 115,942
Total Fund Balances 6,764 115,942 14,155,273
Total Liabilities and Fund Balances $6,764 $115,942 $17,257,581
118
Baypoint Loch Lomond
Lagoons Household #10
Recreation Assessment Hazmat Community
Revolving District Facility Childcare Facilities Dist.
REVENUES
Taxes and special assessments $25,368 $15,606
Use of money and properties $29,593 1,810 $1,265 $11,006 4,779
Intergovernmental 15,000 341,315
Charges for services 3,141,976 161,798 3,558,672
Other revenue 26,530 13,957
Total Revenues 3,213,099 27,178 163,063 3,924,950 20,385
EXPENDITURES
Current:
General government
Public safety 134,075
Public works and parks 5,487 17,114
Culture and recreation 4,854,747 3,660,279
Capital outlay
Total Expenditures 4,854,747 5,487 134,075 3,660,279 17,114
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,641,648) 21,691 28,988 264,671 3,271
OTHER FINANCING SOURCES (USES)
Transfers in 1,800,000 50,000
Transfers out (113,000)
Total Other Financing Sources (Uses)1,800,000 (63,000)
Net Change in Fund Balances 158,352 21,691 28,988 201,671 3,271
Fund Balance, Beginning 118,091 238,326 313,365 1,370,144 660,266
Fund Balance, Ending $276,443 $260,017 $342,353 $1,571,815 $663,537
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
SPECIAL REVENUE FUNDS
120
Loch Lomond
Marina #2
Community Library Public Development
Facilities Dist. Library Assessment Safety Stormwater Services Grants
$204,380 $1,017,358
1,316 $16,800 2,443 $279 $3,813 $37,728 $4,478
6,000 74,900 411,828 657,457
6,788 2,265 840,496
1,677,357 85,926 1,184
205,696 1,706,945 1,019,801 163,370 1,257,321 37,728 661,935
9,327 39,520 107,330
130 306,991 522,402
791,608
15,334 1,038,669
556,450
130 15,334 1,038,669 306,991 1,357,385 39,520 629,732
205,566 1,691,611 (18,868) (143,621) (100,064)(1,792)32,203
100,000 500,000
(22,463)
100,000 500,000 (22,463)
205,566 1,691,611 (18,868) (43,621) 399,936 (1,792)9,740
632,065 667,572 158,500 189,087 683,286 753,121
$205,566 $2,323,676 $648,704 $114,879 $589,023 $681,494 $762,861
(Continued)
SPECIAL REVENUE FUNDS
121
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Low and
Emergency Pt. San Pedro - Moderate
Parkland Medical Business Maintenance Income
Dedication Services Improvement Portion Housing
REVENUES
Taxes and special assessments $261 $4,922,498 $76,492
Use of money and properties $4,008 17,797 480 $12,095
Intergovernmental 176,989
Charges for services 2,808,780
Other revenue 34,128 524,708 64,074
Total Revenues 38,397 8,450,772 76,972 76,169
EXPENDITURES
Current:
General government 37,307 79,585
Public safety 7,188,563
Public works and parks 19,342 123,517
Culture and recreation
Capital outlay 52,343
Total Expenditures 71,685 7,225,870 123,517 79,585
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (33,288) 1,224,902 (46,545) (3,416)
OTHER FINANCING SOURCES (USES)
Transfers in 186,541
Transfers out (1,700,000)
Total Other Financing Sources (Uses)186,541 (1,700,000)
Net Change in Fund Balances 153,253 (475,098)(46,545) (3,416)
Fund Balance, Beginning 449,188 1,744,530 151,283 910,350
Fund Balance, Ending $602,441 $1,269,432 $104,738 $906,934
SPECIAL REVENUE FUNDS
122
SPECIAL
REVENUE
FUND DEBT SERVICE FUNDS
1997
Peacock Gap Mariposa Financing
Measure A Assessment Assessment Authority Capital Bedroom Assessment
Open Space District District Revenue Bonds Improvement Tax Districts
$458,974 $9,690
2,425 $1,077 $24,949 $732
141,758
461,399 1,077 166,707 9,690 732
172,073
181,969
2,183 2,369,831
356,225 2,369,831
105,174 1,077 (2,203,124)9,690 732
487,571
(70,343)
(70,343)487,571
34,831 1,077 (1,715,553)9,690 732
369,235 $2,875 $16,573 147,797 3,463,772 76,845 300,780
$404,066 $2,875 $16,573 $148,874 $1,748,219 $86,535 $301,512
(Continued)
CAPITAL PROJECTS FUNDS
123
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Total
Park Non-Major
Capital Open Governmental
Projects Space Funds
REVENUES
Taxes and special assessments $6,730,627
Use of money and properties $1 $839 179,713
Intergovernmental 1,825,247
Charges for services 10,520,775
Other revenue 4,036 2,431,900
Total Revenues 4,037 839 21,688,262
EXPENDITURES
Current:
General government 273,069
Public safety 8,324,234
Public works and parks 1,139,037
Culture and recreation 25,209 9,594,238
Capital outlay 2,980,807
Total Expenditures 25,209 22,311,385
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (21,172) 839 (623,123)
OTHER FINANCING SOURCES (USES)
Transfers in 3,124,112
Transfers out (1,905,806)
Total Other Financing Sources (Uses) 1,218,306
Net Change in Fund Balances (21,172) 839 595,183
Fund Balance, Beginning 27,936 115,103 13,560,090
Fund Balance, Ending $6,764 $115,942 $14,155,273
CAPITAL PROJECTS FUND
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, 2018
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 $28,409 $29,593 $1,184 1,800 1,810 10
Intergovernmental 10,000 15,000 5,000
Charges for services 3,098,700 3,141,976 43,276
Other revenue 2,750 26,530 23,780
Total Revenues 3,139,859 3,213,099 73,240 27,300 27,178 (122)
EXPENDITURES
Current:
General government
Public safety
Public works and parks 5,488 5,487 1
Culture and recreation 4,800,693 4,854,747 (54,054)
Capital outlay
Total Expenditures 4,800,693 4,854,747 (54,054) 5,488 5,487 1
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,660,834) (1,641,648) 19,186 21,812 21,691 (121)
OTHER FINANCING SOURCES (USES)
Transfers in 1,800,000 1,800,000
Transfers out
Total Other Financing Sources (Uses)1,800,000 1,800,000
FUND BALANCES, BEGINNING OF YEAR
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES $139,166 158,352 $19,186 $21,812 21,691 ($121)
FUND BALANCES, BEGINNING OF YEAR 118,091 238,326
FUND BALANCES, END OF YEAR $276,443 $260,017
126
Loch Lomond #10
Household Hazmat Facility Childcare
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$15,610 $15,606 ($4)
$1,600 $1,265 ($335) $6,000 $11,006 $5,006 6,000 4,779 (1,221)
305,782 341,315 35,533
156,515 161,798 5,283 3,775,000 3,558,672 (216,328)
13,957 13,957
158,115 163,063 4,948 4,086,782 3,924,950 (161,832) 21,610 20,385 (1,225)
151,615 134,075 17,540
150,054 17,114 132,940
4,089,615 3,660,279 429,336
151,615 134,075 17,540 4,089,615 3,660,279 429,336 150,054 17,114 132,940
6,500 28,988 22,488 (2,833) 264,671 267,504 (128,444) 3,271 131,715
50,000 50,000
(113,000) (113,000)
(63,000) (63,000)
$6,500 28,988 $22,488 ($65,833) 201,671 $267,504 ($128,444) 3,271 $131,715
313,365 1,370,144 660,266
$342,353 $1,571,815 $663,537
(Continued)
Community Facilities District
SPECIAL REVENUE FUNDS
127
Library
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $204,380 $204,380
Use of money and properties 1,316 1,316 $15,320 $16,800 $1,480
Intergovernmental 6,000 6,000
Charges for services 7,000 6,788 (212)
Other revenue 1,675,726 1,677,357 1,631
Total Revenues 205,696 205,696 1,704,046 1,706,945 2,899
EXPENDITURES
Current:
General government
Public safety
Public works and parks $130 130
Culture and recreation 25,000 15,334 9,666
Capital outlay
Total Expenditures 130 130 25,000 15,334 9,666
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (130) 205,566 205,696 1,679,046 1,691,611 12,565
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 ($130) 205,566 $205,696 $1,679,046 1,691,611 $12,565
FUND BALANCES, BEGINNING OF YEAR 632,065
FUND BALANCES, END OF YEAR $205,566 $2,323,676
Community Facilities District
SPECIAL REVENUE FUNDS
Loch Lomond Marina #2
FOR THE YEAR ENDED JUNE 30, 2018
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
128
SPECIAL REVENUE FUNDS
Library Assessment Public Safety Stormwater
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$1,054,595 $1,017,358 ($37,237)
5,600 2,443 (3,157) $400 $279 ($121) $1,000 $3,813 $2,813
70,000 74,900 4,900 411,828 411,828
1,500 2,265 765 772,800 840,496 67,696
75,000 85,926 10,926 5,000 1,184 (3,816)
1,060,195 1,019,801 (40,394) 146,900 163,370 16,470 778,800 1,257,321 478,521
4,731 9,327 (4,596)
312,745 306,991 5,754
892,716 791,608 101,108
1,207,221 1,038,669 168,552
616,635 556,450 60,185
1,207,221 1,038,669 168,552 312,745 306,991 5,754 1,514,082 1,357,385 156,697
(147,026) (18,868) 128,158 (165,845) (143,621) 22,224 (735,282) (100,064) 635,218
100,000 100,000 500,000 500,000
100,000 100,000 500,000 500,000
($147,026) (18,868) $128,158 ($65,845) (43,621) $22,224 ($235,282) 399,936 $635,218
667,572 158,500 189,087
$648,704 $114,879 $589,023
(Continued)
129
Grants
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments
Use of money and properties $38,000 $37,728 ($272) $2,000 $4,478 $2,478
Intergovernmental 770,530 657,457 (113,073)
Charges for services
Other revenue
Total Revenues 38,000 37,728 (272) 772,530 661,935 (110,595)
EXPENDITURES
Current:
General government 117,000 39,520 77,480 282,770 107,330 175,440
Public safety 522,421 522,402 19
Public works and parks
Culture and recreation
Capital outlay
Total Expenditures 117,000 39,520 77,480 805,191 629,732 175,459
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (79,000) (1,792) 77,208 (32,661) 32,203 64,864
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (22,463) (22,463)
Total Other Financing Sources (Uses)(22,463) (22,463)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES ($79,000) (1,792) $77,208 ($55,124) 9,740 $64,864
FUND BALANCES, BEGINNING OF YEAR 683,286 753,121
FUND BALANCES, END OF YEAR $681,494 $762,861
BUDGET AND ACTUAL
Development Services
FOR THE YEAR ENDED JUNE 30, 2018
SPECIAL REVENUE FUNDS
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
130
Parkland Dedication Emergency Medical Services Business Improvement
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$261 $261 $4,860,398 $4,922,498 $62,100
$6,000 4,008 (1,992) 9,000 17,797 8,797
130,000 176,989 46,989
2,550,000 2,808,780 258,780
30,000 34,128 4,128 265,738 524,708 258,970
36,000 38,397 2,397 7,815,136 8,450,772 635,636
37,307 (37,307)
7,895,597 7,188,563 707,034
237,301 19,342 217,959
698,374 52,343 646,031
935,675 71,685 863,990 7,895,597 7,225,870 669,727
(899,675) (33,288) 866,387 (80,461) 1,224,902 1,305,363
186,541 186,541
(1,700,000) (1,700,000)
186,541 186,541 (1,700,000) (1,700,000)
($713,134) 153,253 $866,387 ($1,780,461) (475,098) $1,305,363
449,188 1,744,530
$602,441 $1,269,432
(Continued)
SPECIAL REVENUE FUNDS
131
Low and Moderate Income Housing
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $73,078 $76,492 $3,414
Use of money and properties 1,440 480 (960) $2,200 $12,095 $9,895
Intergovernmental
Charges for services
Other revenue 70,000 64,074 (5,926)
Total Revenues 74,518 76,972 2,454 72,200 76,169 3,969
EXPENDITURES
Current:
General government 210,000 79,585 130,415
Public safety
Public works and parks 123,520 123,517 3
Culture and recreation
Capital outlay
Total Expenditures 123,520 123,517 3 210,000 79,585 130,415
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (49,002) (46,545) 2,457 (137,800) (3,416) 134,384
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 ($49,002) (46,545) $2,457 ($137,800) (3,416) $134,384
FUND BALANCES, BEGINNING OF YEAR 151,283 910,350
FUND BALANCES, END OF YEAR $104,738 $906,934
Pt. San Pedro-Maintenance Portion
SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
132
Measure A Open Space Mariposa Assessment District 1997 Financing Authority Revenue Bonds
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$466,267 $458,974 ($7,293)
1,600 2,425 825 $1,077 $1,077
467,867 461,399 (6,468)1,077 1,077
167,999 172,073 (4,074)
155,000 181,969 (26,969)
485,000 485,000
2,183 (2,183)
807,999 356,225 451,774
(340,132) 105,174 445,306 1,077 1,077
(70,343) (70,343)
(70,343) (70,343)
($410,475) 34,831 $445,306 1,077 $1,077
369,235 $16,573 147,797
$404,066 $16,573 $148,874
DEBT SERVICE FUNDSSPECIAL REVENUE 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, 2018
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
ASSETS
Current Assets:
Cash and investments $282,397 $852,536 $2,914,096 $650,183 $3,581,238
Accounts receivable 18,969
Capital assets:
Nondepreciable assets 3,153,481
Depreciable assets, net 3,178,275 6,908,054 531,108
Total Assets 6,614,153 7,779,559 3,445,204 650,183 3,581,238
LIABILITIES
Current Liabilities:
Accounts payable 268,166 39,302 403,222 48,814 7,250
Claims payable - due in one year 1,484,580
Non-current Liabilities:
Claims payable - due in more than one year 2,073,327
Total Liabilities 268,166 39,302 403,222 48,814 3,565,157
NET POSITION:
Net investment in capital assets 6,331,756 6,908,054 531,108
Unrestricted 14,231 832,203 2,510,874 601,369 16,081
Total Net Position $6,345,987 $7,740,257 $3,041,982 $601,369 $16,081
136
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total
$6,005,067 $146,564 $1,944,579 $490,880 $130,204 $214,853 $225,571 $17,438,168
18,969
3,153,481
10,617,437
6,005,067 146,564 1,944,579 490,880 130,204 214,853 225,571 31,228,055
285 3,684 927 21,480 225,571 1,018,701
1,212,156 2,696,736
4,773,612 6,846,939
5,986,053 3,684 927 21,480 225,571 10,562,376
13,770,918
19,014 142,880 1,944,579 489,953 130,204 193,373 6,894,761
$19,014 $142,880 $1,944,579 $489,953 $130,204 $193,373 $20,665,679
137
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
OPERATING REVENUES
Charges for current services $550,000 $1,100,000 $3,117,493 $600,000 $1,989,880
Other operating revenues 4,096 87,974
Total Operating Revenues 550,000 1,100,000 3,117,493 604,096 2,077,854
OPERATING EXPENSES
Personnel 505,518 594,043
Insurance premiums and claims 2,205,496
Maintenance and repairs (182,825) 36,154
General and administrative 2,764,253 235,957 263,515
Depreciation expense 100,453 996,634 106,224
Total Operating Expenses (82,372) 1,032,788 3,375,995 830,000 2,469,011
Operating Income (Loss)632,372 67,212 (258,502) (225,904) (391,157)
NONOPERATING REVENUES (EXPENSES)
Investment income 1,739 10,109 13,280 17,058 21,018
Miscellaneous Income 44,124
Loss on sale of capital assets (23,226)
Total Nonoperating
Revenues (Expenses)1,739 31,007 13,280 17,058 21,018
Net income (loss) before transfers 634,111 98,219 (245,222) (208,846) (370,139)
TRANSFERS IN 1,213,525 51,826
TRANSFERS OUT (135,923)
Change in Net Position 1,711,713 150,045 (245,222) (208,846) (370,139)
NET POSITION, BEGINNING OF YEAR 4,634,274 7,590,212 3,287,204 810,215 386,220
NET POSITION, END OF YEAR $6,345,987 $7,740,257 $3,041,982 $601,369 $16,081
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2018
138
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total
$856,751 $371,805 $134,189 $2,714,248 $448,660 $386,756 $2,570,902 $14,840,684
5,286 862,572 5,105 965,033
856,751 377,091 134,189 3,576,820 448,660 391,861 2,570,902 15,805,717
2,570,902 3,670,463
1,161,254 385,209 3,781,501 7,533,460
(146,671)
225,613 3,977 678,546 567,521 4,739,382
1,203,311
1,386,867 385,209 3,977 3,781,501 678,546 567,521 2,570,902 16,999,945
(530,116) (8,118) 130,212 (204,681) (229,886) (175,660)(1,194,228)
51,472 1,695 7,974 (1) 1,201 3,199 128,744
44,124
(23,226)
51,472 1,695 7,974 (1) 1,201 3,199 149,642
(478,644) (6,423) 138,186 (204,682) (228,685) (172,461)(1,044,586)
1,265,351
(475,513)(611,436)
(478,644) (6,423) (337,327) (204,682) (228,685) (172,461)(390,671)
497,658 149,303 2,281,906 694,635 358,889 365,834 21,056,350
$19,014 $142,880 $1,944,579 $489,953 $130,204 $193,373 $20,665,679
139
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2018
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $550,000 $2,161,589 $3,117,493 $600,000 $1,989,880
Cash payments to suppliers for goods and services 321,568 (36,154) (2,557,037) (187,644) (1,485,383)
Cash payments to employees for salaries and benefits (505,518) (594,043)
Other operating revenues 4,096 87,974
Cash Flows from Operating Activities 871,568 2,125,435 54,938 (177,591) 592,471
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts 1,213,525 51,826
Interfund payments (135,923)
Cash Flows from Noncapital
Financing Activities 1,077,602 51,826
'CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (3,286,370) (3,052,284)
Proceeds from sale of property 44,124
Cash Flows from Investing Activities (3,286,370) (3,008,160)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 1,739 10,109 13,280 17,058 21,018
Cash Flows from Investing Activities 1,739 10,109 13,280 17,058 21,018
Net increase (decrease) in cash and cash equivalents (1,335,461) (820,790) 68,218 (160,533) 613,489
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,617,858 1,673,326 2,845,878 810,716 2,967,749
CASH AND CASH EQUIVALENTS, END OF YEAR $282,397 $852,536 $2,914,096 $650,183 $3,581,238
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$632,372 $67,212 ($258,502) ($225,904) ($391,157)
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation 100,453 996,634 106,224
Net change in assets and liabilities:
Accounts receivable (18,969)
Loans receivable 1,080,558
Accounts payable 138,743 207,216 48,313 7,250
Claims payable 976,378
Net Cash Provided by (Used in) Operating Activities $871,568 $2,125,435 $54,938 ($177,591) $592,471
140
OPEB/
Workers' Dental Employee Employee Radio Telephone Sewer
Compensation Insurance Retirement Retirement Replacement Replacement Maintenance Total
$856,751 $371,805 $134,189 $2,714,248 $448,660 $386,756 $2,570,902 $15,902,273
(1,566,927) (385,149) (3,977) (3,797,061) (678,546) (578,463) (2,373,544) (13,328,317)
(1,099,561)
5,286 862,572 5,105 965,033
(710,176) (8,058) 130,212 (220,241) (229,886) (186,602) 197,358 2,439,428
1,265,351
(475,513) (611,436)
(475,513)653,915
(6,338,654)
44,124
(6,294,530)
51,472 1,695 7,974 (1) 1,201 3,199 128,744
51,472 1,695 7,974 (1) 1,201 3,199 128,744
(658,704) (6,363) (337,327) (220,242) (228,685) (183,403) 197,358 (3,072,443)
6,663,771 152,927 2,281,906 711,122 358,889 398,256 28,213 20,510,611
$6,005,067 $146,564 $1,944,579 $490,880 $130,204 $214,853 $225,571 $17,438,168
($530,116) ($8,118) $130,212 ($204,681) ($229,886) ($175,660)($1,194,228)
1,203,311
(18,969)
1,080,558
(19)60 (15,560)(10,942) $197,358 572,419
(180,041)796,337
($710,176) ($8,058) $130,212 ($220,241) ($229,886) ($186,602) $197,358 $2,439,428
141
AGENCY FUND
Agency Funds account for 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, 2018
Balance Balance
June 30, 2017 Additions Deductions June 30, 2018
Pt. San Pedro Road Assessment District
Assets
Restricted cash and investments $289,768 $202,336 $205,708 $286,396
Taxes receivable 951 983 951 983
Total Assets $290,719 $203,319 $206,659 $287,379
Liabilities
Interest payable $26,614 $25,475 $26,615 $25,474
Due to bondholders 264,105 177,844 180,044 261,905
Total Liabilities $290,719 $203,319 $206,659 $287,379
144
Corner of Fourth and B Street
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.
145
2009 2010 2011 2012
Governmental activities
Net investment in capital assets $178,744,119 $173,536,144 $174,281,922 $192,361,245
Restricted 25,721,231 26,150,254 21,322,937 24,693,205
Unrestricted (700,985) (4,631,276) (8,170,324) 10,652,263
Total governmental activities net position $203,764,365 $195,055,122 $187,434,535 $227,706,713
Business-type activities
Net investment in capital assets $11,243,637 $10,950,825 $10,793,592 $10,650,558
Unrestricted 1,936,958 2,017,354 1,948,447 2,495,889
Total business-type activities net position $13,180,595 $12,968,179 $12,742,039 $13,146,447
Primary government
Net investments in capital assets $189,987,756 $184,486,969 $185,075,514 $203,011,803
Restricted 25,721,231 26,150,254 21,322,937 24,693,205
Unrestricted 1,235,973 (2,613,922) (6,221,877) 13,148,152
Total primary government net position $216,944,960 $208,023,301 $200,176,574 $240,853,160
(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
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Th
o
u
s
a
n
d
s
Net of Related Debt Restricted Unrestricted
146
2013 2014 2015 2016 2017 2018
$193,222,791 $190,286,275 $190,621,085 $193,707,175 $199,202,842 $217,170,376
35,780,412 37,339,141 33,389,224 31,286,725 29,225,643 25,549,583
11,151,318 (196,824) (82,336,534) (93,273,480) (112,913,181) (122,577,233)
$240,154,521 $227,428,592 $141,673,775 $131,720,420 $115,515,304 $120,142,726
$10,670,190 $10,786,591 $10,744,952 $10,958,058 $10,968,642 $10,951,518
2,501,498 2,049,957 (938,519) (1,136,050) (871,620) (886,848)
$13,171,688 $12,836,548 $9,806,433 $9,822,008 $10,097,022 $10,064,670
$203,892,981 $201,072,866 $201,366,037 $204,665,233 $210,171,484 $228,121,894
35,780,412 37,339,141 33,389,224 31,286,725 29,225,643 25,549,583
13,652,816 1,853,133 (83,275,053) (94,409,530) (113,784,801) (123,464,081)
$253,326,209 $240,265,140 $151,480,208 $141,542,428 $125,612,326 $130,207,396
147
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2009 2010 2011 2012
Expenses
Governmental Activities:
General government $8,075,344 $8,396,759 $8,269,846 $10,171,332
Public safety 42,708,538 42,752,033 44,735,486 39,876,910
Public works and parks 23,036,676 17,401,923 17,408,038 17,423,033
Community development 5,759,171 6,738,873 7,804,650 4,587,557
Culture and recreation 11,505,896 11,139,225 11,487,999 11,020,663
Interest on long-term debt and fiscal charges 1,907,229 2,200,024 1,621,605 1,224,991
Total Governmental Activities Expenses 92,992,854 88,628,837 91,327,624 84,304,486
Business-Type Activities:
Parking services 3,563,235 4,016,198 3,785,751 3,446,482
Total Business-Type Activities Expenses 3,563,235 4,016,198 3,785,751 3,446,482
Total Primary Government Expenses $96,556,089 $92,645,035 $95,113,375 $87,750,968
Component Unit:
San Rafael Sanitation District $9,143,977 $9,087,354 $9,677,630 $10,185,779
Program Revenues
Governmental Activities:
Charges for services:
General government $1,738,685 $1,665,460 $1,636,542 $1,986,791
Public safety 5,906,445 6,308,912 6,167,925 7,122,396
Public works and parks 4,753,817 3,916,874 4,141,103 5,214,267
Community development 2,915,872 2,830,179 2,676,663 3,255,367
Culture and recreation 5,253,683 5,280,458 5,362,497 5,873,147
Operating grants and contributions 3,544,248 3,721,055 3,651,902 3,158,281
Capital grants and contributions 7,311,173 2,116,906 1,857,670 2,705,696
Total Government Activities Program Revenues 31,423,923 25,839,844 25,494,302 29,315,945
Business-Type Activities:
Charges for services:
Parking services 4,454,490 4,244,404 4,011,333 3,901,175
Total Business-Type Activities Program Revenues 4,454,490 4,244,404 4,011,333 3,901,175
Total Primary Government Program Revenues $35,878,413 $30,084,248 $29,505,635 $33,217,120
Component Unit:
San Rafael Sanitation District
Charges for service $10,567,647 $11,559,549 $12,223,779 $12,368,889
Operating grants and contributions
Capital grants and contributions
Total Component Unit Program Revenues $10,567,647 $11,559,549 $12,223,779 $12,368,889
Net (Expense)/Revenue
Governmental Activities ($61,568,931) ($62,788,993) ($65,833,322) ($54,988,541)
Business-Type Activities 891,255 228,206 225,582 454,693
Total Primary Government Net Expense ($60,677,676) ($62,560,787) ($65,607,740) ($54,533,848)
Component Unit Activities $1,423,670 $2,472,195 $2,546,149 $2,183,110
148
2013 2014 2015 2016 2017 2018
$10,202,530 $9,085,672 $9,099,858 $12,952,983 $10,996,269 $9,835,941
41,966,065 43,800,158 39,968,631 55,399,798 44,366,734 53,231,197
17,695,164 22,125,336 16,893,164 22,929,289 19,845,719 22,084,433
3,403,158 3,451,244 3,128,373 4,307,269 4,242,743 4,040,195
11,330,058 11,846,818 11,198,151 15,026,680 14,131,000 13,285,563
283,805 327,350 284,288 277,263 271,263 884,336
84,880,780 90,636,578 80,572,465 110,893,282 93,853,728 103,361,665
3,545,387 4,125,476 4,249,597 4,762,851 4,188,152 4,627,716
3,545,387 4,125,476 4,249,597 4,762,851 4,188,152 4,627,716
$88,426,167 $94,762,054 $84,822,062 $115,656,133 $98,041,880 $107,989,381
$10,169,082 $11,378,055 $11,375,239 $11,654,767 $11,255,194 $12,235,868
$2,655,749 $2,838,940 $1,379,523 $526,495 $421,393 $517,542
6,478,321 6,014,034 4,966,251 4,939,658 4,264,939 5,628,478
7,837,472 6,101,460 3,078,267 5,157,289 1,804,698 2,362,375
3,984,204 3,279,251 3,796,684 4,004,178 3,850,107 3,814,892
6,075,129 6,417,003 6,537,646 6,683,059 6,941,013 6,819,303
4,085,073 4,698,142 4,185,450 4,678,338 3,965,351 5,142,670
5,876,993 762,719 1,308,027 1,470,953 1,702,993 974,603
36,992,941 30,111,549 25,251,848 27,459,970 22,950,494 25,259,863
3,990,706 4,485,394 5,173,557 5,212,181 5,268,991 5,203,585
3,990,706 4,485,394 5,173,557 5,212,181 5,268,991 5,203,585
$40,983,647 $34,596,943 $30,425,405 $32,672,151 $28,219,485 $30,463,448
$12,413,123 $13,732,496 $14,629,758 $15,414,530 $16,014,016 $16,829,908
36,945 58,440
79,245 105,734
$12,413,123 $13,732,496 $14,629,758 $15,414,530 $16,130,206 $16,994,082
($47,887,839) ($60,525,029) ($55,320,617) ($83,433,312) ($70,903,234) ($78,101,802)
445,319 359,918 923,960 449,330 1,080,839 575,869
($47,442,520) ($60,165,111) ($54,396,657) ($82,983,982) ($69,822,395) ($77,525,933)
$2,244,041 $2,354,441 $3,254,519 $3,862,215 $4,875,012 $4,758,214
149
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2009 2010 2011 2012
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property $21,978,859 $21,684,131 $21,632,733 $20,107,637
Sales 21,970,262 19,055,124 21,623,445 22,355,749
Special assessments
Paramedic 3,210,317 3,489,494 3,661,064 3,807,545
Motor vehicles 197,989 171,518 297,425
Transient occupancy 1,678,912 1,558,243 1,644,262 1,866,575
Franchise 2,941,149 2,868,332 2,990,539 3,076,094
Business license 2,405,934 2,317,664 2,296,460 2,332,146
Other 1,561,835 1,411,583 1,930,531 3,574,918
Investment earnings 717,968 302,180 176,502 205,413
Gain (Loss) on disposal of assets 221,791
Miscellaneous 461,224 541,390 1,496,174 542,816
Special item - Court fines repayment
Transfers 361,190 458,300 463,600 57,960
Total Government Activities 57,485,639 54,079,750 58,212,735 57,926,853
Business-Type Activities:
Investment earnings 49,084 17,678 11,878 7,675
Aid from other government agencies
Transfers (361,190) (458,300) (463,600) (57,960)
Total Business-Type Activities (312,106) (440,622) (451,722) (50,285)
Total Primary Government $57,173,533 $53,639,128 $57,761,013 $57,876,568
Component Unit:
San Rafael Sanitation District
Property Taxes $855,511 $823,187 $1,214,519 $1,192,566
Investment earnings 206,752 93,274 59,265 38,191
Miscellaneous 3,540 0 0
Aid from other governmental agencies 381,144 415,391 6,499 9,613
Total Component Unit $1,446,947 $1,331,852 $1,280,283 $1,240,370
Special Item
Governmental Activities
Component Unit Activities
Change in Net Position
Governmental Activities ($4,083,292) ($8,709,243) ($7,620,587) $2,938,312
Business-Type Activities 579,149 (212,416) (226,140) 404,408
Total Primary Government ($3,504,143) ($8,921,659) ($7,846,727) $3,342,720
Change in Net Position
Component Unit Activities $2,870,617 $3,804,047 $3,826,432 $3,423,480
Fiscal Year Ended June 30,
150
2013 2014 2015 2016 2017 2018
$17,317,772 $18,439,619 $19,039,443 $19,998,567 $23,343,140 $24,627,373
24,262,282 27,758,971 32,269,915 34,348,089 31,819,259 34,119,502
3,804,985 3,816,070 3,820,240 4,226,020 5,485,637 4,923,148
2,185,287 2,332,277 2,661,878 3,063,263 2,984,758 3,115,151
3,331,160 3,260,958 3,272,390 3,418,277 3,610,824 3,726,841
2,507,785 2,588,728 2,670,071 2,824,664 2,774,803 2,790,212
2,929,915 3,452,171 3,295,751 3,465,193 1,824,830 2,245,882
991,762 184,171 216,066 300,091 210,628 556,745
2,580,882 1,140,743 2,254,901 1,387,315 2,448,604 5,991,713
423,817 449,917 432,630 448,478 536,000 632,657
60,335,647 63,423,625 69,933,285 73,479,957 75,038,483 82,729,224
3,739 4,375 7,008 14,723 10,810 24,436
(423,817)(449,917)(432,630)(448,478)(536,000)(632,657)
(420,078)(445,542)(425,622)(433,755)(525,190)(608,221)
$59,915,569 $62,978,083 $69,507,663 $73,046,202 $74,513,293 $82,121,003
$1,177,469 $1,345,018 $1,319,852 $1,367,172 $1,528,047 $1,620,584
25,591 151,729 171,804 46,225 97,090 234,379
0 0 0 10,690
56,589 22,125 35,090
$1,259,649 $1,518,872 $1,526,746 $1,413,397 $1,625,137 $1,865,653
$4,462,815
($4,462,815)
$12,447,808 $2,898,596 $19,075,483 ($9,953,355) $4,135,249 $4,627,422
25,241 (85,624)498,338 15,575 555,649 (32,352)
$12,473,049 $2,812,972 $19,573,821 ($9,937,780) $4,690,898 $4,595,070
$3,503,690 $3,873,313 $318,450 $5,275,612 $6,500,149 $6,623,867
151
CITY SAN RAFAEL
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2009 2010 2011 2012
General Fund
Pre-GASB 54 Presentation:
Reserved $2,225,775 $1,763,622
Unreserved 1,670,455 5,038,173
GASB 54 Presentation:
Nonspendable $589,833 $527,509
Restricted 200,238 76,188
Committed 555,561 651,121
Assigned 5,439,879 1,516,644
Unassigned
Total General Fund $3,896,230 $6,801,795 $6,785,511 $2,771,462
All Other Governmental Funds
Pre-GASB 54 Presentation:
Reserved $16,680,568 $15,352,723
Unreserved, reported in:
Special Revenue Funds 8,641,239 8,778,027
Capital Project Funds (1,030,293) 4,527,627
Debt Service Funds 3,360,540
Expendable Trust Fund
GASB 54 Presentation:
Nonspendable $377,180 $788,031
Restricted 19,289,367 16,856,959
Committed 3,864,322 5,135,257
Assigned 4,124,029 5,283,559
Total all other governmental funds $27,652,054 $28,658,377 $27,654,898 $28,063,806
(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)
$15,000
$35,000
$55,000
$75,000
$95,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Th
o
u
s
a
n
d
s
Total Fund Balance
152
2013 2014 2015 2016 2017 2018 (a)
$527,235 $503,338 $399,299 $476,316 $508,446 $1,008,234
800,876
2,476,676 6,866,149 12,374,002 16,440,910 14,900,945 11,214,720
1,588,500 1,772,577 1,295,041
$3,804,787 $7,369,487 $14,361,801 $18,689,803 $16,704,432 $12,222,954
$51,521 $8,719 $2,359 $9,449 $302,366
20,769,546 30,185,064 31,742,184 27,552,245 $25,812,405 73,489,688
8,447,495 2,185,825 931,871 3,799,421 3,491,708 1,754,983
6,511,850 4,959,533 712,810 119,183 115,103 115,942
$35,780,412 $37,339,141 $33,389,224 $31,480,298 $29,419,216 $75,662,979
153
CITY OF SAN RAFAEL
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2009 2010 2011 2012
Revenues
Taxes and special assessments $51,019,143 $47,678,541 $51,448,130 $51,395,116
Licenses and permits 1,472,913 1,518,819 1,416,772 1,648,890
Fines and forfeitures 660,338 787,411 862,820 801,758
Use of money and properties 847,120 433,874 380,720 315,561
Intergovernmental 17,518,670 13,001,703 11,864,127 10,537,396
Charges for services 16,384,265 15,787,325 15,888,750 19,649,433
Other revenue 759,320 716,760 1,026,845 870,957
Total Revenues 88,661,769 79,924,433 82,888,164 85,219,111
Expenditures
Current:
General government 8,059,526 7,997,067 6,863,142 8,783,873
Public safety 41,209,972 39,574,091 40,967,352 39,311,551
Public works and parks 12,926,646 10,731,669 10,666,176 11,518,822
Community development 5,572,079 4,398,594 4,527,351 3,755,504
Culture and recreation 10,233,361 9,605,684 10,067,822 10,345,673
Capital outlay 5,048,044 1,890,559 1,745,483 1,312,383
Capital improvement/special projects 6,606,857 3,436,608 6,240,861 3,604,171
Debt service:
Principal 2,714,358 2,804,258 2,530,338 2,518,320
Interest and fiscal charges 1,683,240 1,979,372 1,448,910 735,221
Total Expenditures 94,054,083 82,417,902 85,057,435 81,885,518
Excess (deficiency) of revenues over
(under) expenditures (5,392,314)(2,493,469)(2,169,271)3,333,593
Other Financing Sources (Uses)
Issuance of debt 14,660,000
Payment to refunded bonds (14,315,000)
Bond premiums 1,038,185
Proceeds from PG&E loans
Proceeds from sale of capital asset 221,791
Transfers in 8,972,495 7,494,560 5,806,834 4,539,646
Transfers (out)(6,614,806)(6,411,150)(4,657,326)(4,864,293)
Total other financing sources (uses)2,357,689 2,688,386 1,149,508 (324,647)
Extraordinary Item
Transfer to Successor Agency
Net Change in fund balances ($3,034,625)$194,917 ($1,019,763)$3,008,946
Debt service as a percentage of
noncapital expenditures 5.3%6.2%5.2%4.2%
Fiscal Year Ended June 30,
154
2013 2014 2015 2016 2017 2018
$51,549,306 $56,686,142 $61,804,228 $65,866,218 $71,166,891 $74,893,789
1,929,387 1,934,755 2,456,820 2,588,411 2,559,841 2,718,166
734,005 669,553 556,076 435,829 400,283 384,268
325,043 363,089 444,757 460,206 349,349 654,531
11,869,889 11,953,308 13,233,503 13,685,003 8,063,156 8,878,974
23,575,374 19,949,333 15,346,794 14,366,744 13,425,161 14,660,094
4,092,411 2,045,407 1,777,003 3,208,749 1,842,053 5,219,414
94,075,415 93,601,587 95,619,181 100,611,160 97,806,734 107,409,236
10,529,480 8,678,833 10,203,687 11,349,079 10,557,416 10,010,100
41,377,062 41,900,762 43,954,515 47,071,166 49,018,153 51,805,708
12,002,448 13,697,957 12,758,643 14,390,699 16,752,961 17,647,312
2,961,275 3,296,375 3,416,859 3,670,108 3,759,564 4,051,224
10,591,057 11,106,367 11,616,777 12,048,104 12,646,728 12,823,771
4,009,454 2,154,900 4,498,924 4,813,757 2,100,926 22,815,967
5,284,720 7,168,776 2,186,986 4,826,576 7,403,249
208,642 75,172 75,172 175,172 280,172
283,805 327,350 284,288 277,263 271,263 1,005,636
87,039,301 88,539,962 88,995,851 98,521,924 102,685,432 120,439,890
7,036,114 5,061,625 6,623,330 2,089,236 (4,878,698)(13,030,654)
46,565,800
568,481
8,425,474 3,655,302 4,348,149 7,533,364 9,287,007 68,351,964
(6,711,657)(3,053,865)(3,051,499)(6,582,555)(8,454,762)(68,373,222)
1,713,817 1,169,918 1,296,650 950,809 832,245 46,544,542
(2,352,584)
$6,397,347 $6,231,543 $7,919,980 $3,040,045 ($4,046,453)$33,513,888
0.4%0.7%0.4%0.4%0.5%1.3%
155
CITY OF SAN RAFAEL
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct
Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b)
2009 7,357,121,277$ 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%
2018 9,522,645,933 2,532,439,852 276,751,912 128,305,868 12,460,143,565 417,902,554 12,878,046,119 12,878,046,119 0.11709%
(a)
(b)
Data Source: Marin County Assessor 2008/09 - 2017/18 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
$14,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Mi
l
l
i
o
n
s
Unsecured Property Secured Property
156
Fiscal School Misc. Special
Year City County (1)Districts Districts Total
2009 0.154 0.295 0.7192 0.0461 1.2139
2010 0.154 0.295 0.7402 0.0461 1.2349
2011 0.154 0.295 0.7542 0.0461 1.2489
2012 0.154 0.295 0.7831 0.0461 1.2779
2013 0.154 0.295 0.7743 0.0461 1.2691
2014 0.154 0.295 0.7890 0.0461 1.2838
2015 0.154 0.295 0.7651 0.0461 1.2599
2016 0.154 0.295 0.7846 0.0695 1.3028
2017 0.154 0.295 0.8251 0.0553 1.3291
2018 0.154 0.295 0.8127 0.0661 1.3275
Notes:
(1) Like other cities, San Rafael includes several property tax rate areas with different rates. A mean average is indicated.
Data Source: Marin County Assessors Office 2008/09 - 2017/18 Tax Rate Tables
CITY OF SAN RAFAEL
PROPERTY TAX RATES
ALL OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
157
CITY OF SAN RAFAEL
PRINCIPAL PROPERTY TAX PAYERS
CURRENT FY 2017/18 AND FY 2008/09
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
California Corporate Center ACQ LLC 261,000,911$ 2.03%
MGP XI Northgate LLC 158,734,209 1.23%
Professional Financial Investors Inc 80,677,719 0.63%
BRE Properties Inc 62,385,259 0.48%
South Valley Apartments LLC 53,045,451 0.41%
Coastal City Partners LLC 46,565,701 0.36%
Regency Center II Associates LP 46,317,622 0.36% 40,911,379$ 0.41%
Northbay Properties II 45,976,145 0.36% 33,950,419 0.34%
Bay Apartment Communities Inc 43,612,049 0.34% 34,497,679 0.34%
Barbara Fasken 1995 Trust ETAL 43,324,046 0.34%
Northgate Mall Associates 97,270,425 0.97%
SR Corporation Center Phase 1 & 2 89,644,871 0.89%
Hines San Rafael LLC 80,929,782 0.81%
Sutter Health 41,564,999 0.41%
Marin Sanitary Service 38,347,115 0.38%
4040 Civic Center LLC 36,205,533 0.36%
Rafael Town Center Investors LLC 33,948,747 0.34%
Subtotal 841,639,112$ 6.54% 527,270,949$ 5.25%
Total Net Assessed Valuation:
Fiscal Year 2017-2018 12,878,046,119$
Fiscal Year 2008-2009 10,037,950,007$
FY 2017-2018 FY 2008-2009
158
Delinquent taxes
Fiscal as a Percent of
Year Rate Levies Allocations Collections Apportionments Delinquencies Allocations
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%
2018 1.00 (2)22,811,511 (2)22,811,511 (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
$28
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Mi
l
l
i
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s
Allocations
Apportionments
159
CITY OF SAN RAFAEL
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
RDA Tax Financing Court FineCapitalized Pension Lease
Fiscal Allocation Authority Note Promissory Lease Obligation Revenue
Year Bonds Revenue Bonds Payable Note Obligations Bonds Bonds Total
2009 35,793,692$ 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
2018 - - 1,308,951 - - 4,185,000 45,485,000$ 50,978,951
Parking Total Percentage
Fiscal Services Note Primary of Personal Per
Year Bonds Payable Total Government Income (a)Capita (a)
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 0.35%167.13
2018 5,164,303 34,572 5,198,875 56,177,826 n/a 926.25
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
$-
$10
$20
$30
$40
$50
$60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Mi
l
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i
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Total Governmental
Total Business
160
CITY OF SAN RAFAEL
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 2018
2017-18 Assessed Valuation:12,878,046,119$
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2018 % Applicable (1) Debt 6/30/2018
Marin Community College District 310,065,000$ 17.302% 53,647,446$
San Rafael High School District 63,280,315 78.363% 49,588,353
Tamalpais Union High School District 109,685,000 0.080%87,748
Dixie School District 31,520,810 66.114% 20,839,668
Ross School District 18,399,034 1.528% 281,137
Ross Valley School District 43,596,489 0.012%5,232
San Rafael School District 63,724,158 83.700% 53,337,120
Marin Healthcare District 378,740,000 20.813% 78,827,156
Marin Emergency Radio Authority Parcel Tax Obligations 33,000,000 17.277% 5,701,410
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 262,315,271$
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Marin County Certificates of Participation 87,862,953$ 17.289% 15,190,626$
Marin County Pension Obligation Bonds 90,530,000 17.289% 15,651,732
Marin County Transit District General Fund Obligations 90,919 17.289%15,719
Marin Municipal Water District General Fund Obligations 73,968 22.038%16,301
Marin Community College District Certification of Participation 9,690,834 17.315% 1,677,968
San Rafael School District Certificates of Participation 3,275,000 83.694% 2,740,979
Marin Emergency Radio Authority Revenue Bonds 7,705,000 16.913% 1,303,147
City of San Rafael General Fund Obligations 51,992,826 100.000% 51,992,826 (2)
City of San Rafael Pension Obligations 4,185,000 100.000% 4,185,000
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 92,774,297
Less: City of San Rafael lease revenue bonds supported by parking revenues 5,175,000
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 87,599,297$
OVERLAPPING TAX INCREMENT DEBT (Successor Agency 11,344,004$ 100.000% 11,344,004$
TOTAL GROSS DIRECT DEBT 56,177,826
TOTAL NET DIRECT DEBT 51,002,826
TOTAL OVERLAPPING DEBT 308,952,600
GROSS COMBINED TOTAL DEBT 365,130,426 (3)
NET COMBINED TOTAL DEBT 359,955,426
(1) The percentage of overlapping debt applicable to the city is
estimated using taxable assessed property value. Applicable
percentages were estimated by determining the portion of the
overlapping district's assessed value that is within the
boundaries of the city divided by the district's total taxable
(2) Include city $1,343,523 PG&E notes.
Ratios to 2017-18 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 2.04%
Total Gross Direct Debt ($55,097,026) 0.44%
Total Net Direct Debt ($49,922,026) 0.40%
Gross Combined Total Debt 2.84%
Net Combined Total Debt 2.80%
Ratios to Redevelopment Incremental Valuation ($2,831,146,323
Total Overlapping Tax Increment Debt 0.40%
Data Source: MuniServices
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded
capital lease obligations.
161
ASSESSED VALUATION:12,878,046,119$
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) 482,926,729.46
LESS AMOUNT OF DEBT SUBJECT TO LIMIT: 50,978,951.00
LEGAL BONDED DEBT MARGIN 431,947,778$
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
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%
2018 482,926,729 50,978,951 431,947,778 11.80%
NOTE: (a)
Source: City of San Rafael's Finance Department
CITY OF SAN RAFAEL
COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2018
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
162
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
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
2018 5,219,721 4,320,695 899,026 270,000 184,163 454,163 1.98
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
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Coverage
163
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
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 2,943,227 48,374 3.30% 263,604 23.08%
2018 60,651 n/a n/a n/a 263,886 22.98%
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%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Unemployment Rate (%)
22.00%
22.50%
23.00%
23.50%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
City Population as
a % of County
Population
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Personal Income (2) (in thousands)
$30
$35
$40
$45
$50
Th
o
u
s
a
n
d
s
Per Capita Personal Income (2)
164
CITY OF SAN RAFAEL
PRINCIPAL EMPLOYERS
FISCAL YEAR 2017-2018
LAST TEN CALENDAR YEARS
Employer # (A) # (A) # (A) # (A) # (A) # (A) # (A) # (A) # (A) # (A)
Autodesk, Inc. 0.00% 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 2,092 6.62% 2,061 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% 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 410 1.30% 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 0 - - - - - - 350 1.14% 350 1.30% 350 1.30% 350 1.30% - -
Dominican University of California 319 1.01% 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 256 0.81% 280 0.89% 435 1.33% 418 1.28% 385 1.24% 369 1.21% 376 1.39% 350 1.30% - - - -
Macy's 0 0 - - 380 1.16% 380 1.22% 380 1.24% 380 1.41% 450 1.67% 445 1.66% - -
Wells Fargo Bank 0.00% 310 0.98% 326 0.99% 306 0.94% 308 0.99% 334 1.09% - --- -- --
FICO 0.00%0.00% 300 0.91% - - - - - - - - - - - - - -
Fair Issac Corp 0 0 - - 300 0.92% 300 0.96% - - - - - - - - 350 1.26%
Community Action Marin 300 0.95% 255 0.81% 220 0.67% 225 0.69% 300 0.96% 3000.98%-- -- -- --
Safeway 0.00%0.00% - - - - `` - - - 841 3.11% 452 1.67% 452 1.68% - -
Comcast 0.00%0.00% - - - - - - - - 620 2.30% 619 2.29% 619 2.30% - -
Guide Dogs for the Blind 200 0.63% 203 0.64% 225 0.69% - - - - - - - - - - 287 1.07% - -
Bernard Osher Marin JCC 0.00%0.00% 200 0.61% - - - - - - - - - - - - - -
Buckelew Programs 106 0.34% 240 0.76% 186 0.57% - - - - - - - - - - - - - -
Ghilotti Bros.175 0.55% 175 0.55% 150 0.46% - - - - - - - - - - - - 240 0.86%
Golden Gate Bridge Highway & Transp. Dist. 0.00%0.00% - - - - - `` - - - - - - - - 828 2.98%
YMCA 0.00%0.00% - - - - - - - - - - - - - - 348 1.25%
San Rafael City High School District 0.00%0.00% - - - - - - - - - - - - - - 250 0.90%
United Markets 150 0.47%0.00%- - - - - - - - - - - - - -
Totals 4,708 14.90% 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
2015201620172018 20092014
Note: From the EDD website, it shows that the Total 2018 Employment in the City of San Rafael was 31,600 of which it is used as the
denominator for the 2018 percentages are calculated.
Data Sources: State of California, Employment Development Department, Labor Market Information Division & North Bay Business Journal (Annual
Book of Lists)
2013 2012 2011 2010
165
CITY OF SAN RAFAEL
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Function
General Government 58.88 56.88 54.35 55.23 53.23 55.11 58.11 60.61 62.11 60.11
Public Safety 183.00 165.00 166.00 162.00 163.00 168.00 171.75 175.75 176.55 175.35
Public Works and Parks 78.80 60.80 62.80 62.00 60.00 61.00 62.00 62.00 63.00 66.67
Community Development 34.50 26.75 26.75 18.25 18.25 17.80 17.80 19.80 20.00 21.00
Culture and Recreation 85.90 83.49 89.82 81.56 80.76 83.66 84.23 84.25 84.35 87.35
Total 441.08 392.92 399.72 379.04 375.24 385.57 393.89 402.41 406.01 410.48
Data Source: City of San Rafael's Finance Department
0.00
50.00
100.00
150.00
200.00
250.00
300.00
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
FT
E
'
s
General Government Public Safety
Public Works and Parks Community Development
Culture and Recreation
166
CITY OF SAN RAFAEL
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2009 2010 2011 2012
Function/Program
Public safety:
Fire:
Inspection permit issued 196 307 294 282
Police:
Police calls for service 42,227 42,227 39,512 39,537
Law violations:
Part I crimes 2,352 2,352 2,180 2,101
Physical arrests (adult and juvenile)4,487 4,487 3,102 2,981
Traffic violations 5,777 5,777 8,190 4,048
Parking violations 44,913 42,806 34,590 32,492
Public works
Street resurfacing (miles) (Eng Div)2.77 2.77 7.40 N/A
Potholes repaired (square miles)N/A N/A N/A N/A
Asphalt used for street repairs (tons)N/A N/A 10,809 178.9
Culture and recreation:
Recreation class participants 8,000 9,524 9,000 12,075
Library:
Items in collection (thousands)124.40 151.88 158.30 159.18
Total items borrowed (thousands)N/A 371.12 435.66 366.46
Note: N/A denotes information not available.
168
2013 2014 2015 2016 2017 2018
307 261 282 198 233 186
42,707 51,261 55,805 57,026 53,567 51,013
2,523 2,289 2,533 2,523 2,392 2,326
2,951 3,227 3,450 3,453 2,526 2,019
3,448 4,498 4,168 3,252 3,341 2,758
30,881 38,814 36,398 34,803 36,169 36,208
2.70 9.00 6.40 6.76 2.32 2.50
N/A N/A N/A N/A N/A N/A
7,500 10,700 11,000 7,195 5,800 4,730
7,082 9,857 10,023 12,725 13,493 12,842
125.92 168.62 127.76 227.89 117,354 115,812
392.23 478.96 443.64 469.79 327,297 324,452
169
CITY OF SAN RAFAEL
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2009 2010 2011 2012
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 1 1 1 1
Community centers 4 4 4 4
Senior centers 0 0 0 0
Sports centers 0 0 0 0
Performing arts centers 0 0 0 0
Swimming pools 1 1 1 1
Tennis courts 10 10 10 10
Basketball Courts 5 5 5 5
Baseball/softball diamonds 5 5 5 5
Soccer/football fields 2 2 2 2
Library:
City Libraries 2 2 2 2
Wastewater:
Miles of sanitary sewers 179 179 179 179
Data Source: City of San Rafael's Finance Department
170
2013 2014 2015 2016 2017 2018
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
179 145 145 145 145 145
171