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HomeMy WebLinkAboutFY2024-25 ACFRANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDING JUNE 30, 2025 Aerial View, San Rafael, California ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Fiscal Year Ended June 30, 2025 City of San Rafael, California 1400 Fifth Avenue San Rafael, California 94901 Prepared by the Finance Department of the City of San Rafael Bay View Trail, San Rafael INTRODUCTORY SECTION CITY OF SAN RAFAEL, CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended June 30, 2025 Table of Contents INTRODUCTORY SECTION TABLE OF CONTENTS Letter of Transmittal .................................................................................................................................... v Mission Statement and Vision Statement ................................................................................................... xi City Council and Staff ............................................................................................................................... xii Organizational Chart ................................................................................................................................. xiii Location Map ............................................................................................................................................ 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 ............................................................................................................. 23 Statement of Activities .................................................................................................................. 24 Fund Financial Statements: Major Governmental Funds: Balance Sheet ............................................................................................................................ 28 Balance Sheet – Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities .............................................................................. 29 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 30 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with the Statement of Activities ................................................................................. 31 Proprietary Funds: Statement of Net Position .......................................................................................................... 34 Statement of Revenues, Expenses, and Changes in Fund Net Position .................................... 35 Statement of Cash Flows ........................................................................................................... 36 i CITY OF SAN RAFAEL, CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended June 30, 2025 Table of Contents FINANCIAL SECTION (Continued) Fiduciary Funds: Statement of Fiduciary Net Position ......................................................................................... 38 Statement of Changes in Fiduciary Net Position ....................................................................... 39 Notes to Basic Financial Statements .................................................................................................. 41 Required Supplementary Information: Schedule of the City’s Proportionate Share of the Net Pension Liability ..................................... 97 Schedule of Contributions – Defined Benefit Pension Plan ......................................................... 98 Schedule of Changes in Net OPEB Liability and Related Ratios ............................................... 108 Schedule of Contributions – OPEB ............................................................................................ 110 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Budgetary Basis General Fund ........................................................................................................................... 120 Traffic and Housing Mitigation Special Revenue Fund .......................................................... 121 Gas Tax Special Revenue Fund ............................................................................................... 122 Supplementary Information: Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Budgetary Basis Essential Facilities Capital Projects Fund ................................................................................ 124 Non-Major Governmental Funds: Combining Balance Sheets ......................................................................................................... 128 Combining Statements of Revenues, Expenditures, and Changes in Fund Balance ................................................................................................................... 132 Budgeted Non-Major Governmental Funds: Combining Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...................................................................... 136 ii CITY OF SAN RAFAEL, CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended June 30, 2025 Table of Contents FINANCIAL SECTION (Continued) Internal Service Funds: Combining Statements of Net Position ....................................................................................... 146 Combining Statements of Revenues, Expenses and Changes in Fund Net Position ................... 148 Combining Statements of Cash Flows ........................................................................................ 150 STATISTICAL SECTION Financial Trends: Net Position by Component – Last Ten Fiscal Years ....................................................................... 156 Changes in Net Position – Last Ten Fiscal Years ............................................................................. 158 Fund Balances of Governmental Funds – Last Ten Fiscal Years ..................................................... 162 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .................................... 164 Revenue Capacity: Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ...................... 166 Property Tax Rates – All Overlapping Governments – Last Ten Fiscal Years ................................ 167 Property Tax Rates – Direct & Overlapping Governments – Last Ten Fiscal Years (Rate Per $100 of Assessed Value) .......................................................... 168 Principal Property Taxpayers – Current Year and Nine Years Ago ................................................. 169 Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................... 170 Debt Capacity: Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................... 171 Computation of Direct and Overlapping Debt .................................................................................. 172 Computation of Legal Bonded Debt Margin .................................................................................... 173 Revenue Bond Coverage Parking Facility – Last Ten Fiscal Years ................................................. 174 iii CITY OF SAN RAFAEL, CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended June 30, 2025 Table of Contents STATISTICAL SECTION (Continued) Demographic and Economic Information: Demographic and Economic Statistics – Last Ten Calendar Years .................................................. 175 Principal Employers – Last Ten Calendar Years .............................................................................. 176 Operating Information: Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ................................................................................................................. 179 Operating Indicators by Function/Program – Last Ten Fiscal Years ................................................ 180 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ............................................ 182 iv Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati , Councilmember • Rachel Kertz, Councilmember November 20, 2025 Honorable Mayor, Members of the City Council and Residents of San Rafael: The Annual Comprehensive Financial Report (“Annual Report”) of the City of San Rafael (“City”) for the year ended June 30, 2025, 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 unmodified, or “clean” opinion on the City’s financial statements for the fiscal year ended June 30, 2025. 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 Annual Report 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 Annual Report 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 basic financial statements, related footnote disclosures, and the combining and individual fund financial statements and schedules, as well as the independent auditors' report. 3.Statistical section, which is unaudited, includes selected financial and demographic information, presented on a multi-year basis. Generally, ten-year data is presented for expenditures, revenues, assessed valuation for local properties and construction activity. v