HomeMy WebLinkAbout1997-1998 Financial Audit ReportsAgenda Item No: _7 ___ _
Meeting Date: February 1, 1999
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: ADMINISTRATIVE SERVICEW
0~ Prepared by: Cmdy Mosser for Ken Nordhoff, City Manager Approval:
Assistant Ci Mana er
SUBJECT: 1997-98 FINANCIAL AUDIT; 1997-98 SINGLE AUDIT ACT REPORT;
GANN APPROPRIATION LIMIT REPORT; AND THE MANAGEMENT
LETTER.
RECOMMENDATION: ACCEPT THE 1997-98 FINANCIAL AUDIT; ACCEPT THE
1997-98 SINGLE AUDIT ACT REPORT; ACCEPT THE
GANN APPROPRIATION LIMIT REPORT; AND ACCEPT
THE MANAGEMENT LETTER.
BACKGROUND:
As is required by both local code and State law, the City of San Rafael must complete an annual
audit of its financial activities. The auditing firm of e.G. Uhlenberg & Company conducted the
audit for the 1997-98 fiscal year. Their work was completed in accordance with generally
accepted auditing standards; Government Auditing Standards, issued by the Comptroller
General of the United States; and the provisions of Office of Management and Budget Circular
A-133, Audits of State and Local Government and Non-Profit Organizations. A Comprehensive
Annual Financial Report (CAFR) was submitted this year to the State and National Finance
Officers organizations for award consideration. The CAFR was delivered to City Council in
December oflast year.
Over the years, the City has been the beneficiary of various grants to conduct a number of
programs. The Federal Government requires that any local agency receiving grant funds, either
directly or indirectly, subject these programs to a more comprehensive review. This review is
known as the Single Audit Act. As part of the Single Audit Act, the auditors report on the City's
internal controls and compliance with laws and regulations.
A management letter is prepared by the auditors to help identify areas that could help improve
the City's organization and controls over financial activities. Also, the requirements of Section
1.5 of Article XIIIB of the California Constitution is met with an agreed upon procedure report
applied to the Gann Appropriation Limit calculated for the 1997-98 year.
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J FOR CITY CLERK ONLY
File No.: 8-1)(. '8 -9
Council Meeting: 1,(9<[
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Disposition: ®..c<~;t£d ~.(~~~ ~ )
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SAN RAFAEL CITY COUNCIL AGENDA REPORT 1 Pa2e: 2
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The City Council's approval and acceptance of the 1997-98 audits and management letter are
needed to remain in compliance with local charter and State law.
ANALYSIS:
The actual results of the City's financial activities are presented in the General Purpose Financial
Statements. A comprehensive analysis of the 1997-98 year is shown in the introductory section
of the CAFR. General Fund taxes and assessments, totaling $25,069,298, exceeded prior years
totals by $2,885,804. Tax revenues outpaced both prior year perfonnance and budget
expectations. Sales tax and franchise tax were major factors to the increase in revenues. Sales
tax increased due to the opening of Home Depot, increased automobile sales, and the
revitalization of downtown. Franchise tax increased due to the implementation of a franchise fee
on the local waste carrier, Marin Sanitary Service. On the expenditure side, the General Fund
total was $148,280 over budget due to an non-departmental transfer for the Bellam claim.
The Governmental Accounting Standards Board Statement No. 31 requires investments to be
stated at fair market value. To be in compliance, the City restated the beginning fund balances of
the General Fund, Special Revenue Fund and Capital Project Fund. All ending fund balances,
which are the equity of a fund, have a positive balance.
As required under the Single Audit Act, a number of separate reports are contained within this
document. Most of these reports comment on either compliance with Federal assistance
regulations or recommendations regarding the City's accounting practices. With respect to
compliance, the auditors have found no material instances of noncompliance with laws,
regulations, contracts or grants applicable to our programs. There were no current findings or
recommendations.
The Agreed-Upon Procedures report for the Gann Appropriations Limit required four steps to be
perfonned including testing the accuracy of the calculations and comparison of infonnation
presented. No exceptions were noted in all four steps.
In the area of accounting practices and internal controls, a few issues have been raised. The first
issue concerned the Federal Emergency Management Administration grant. A reimbursement
claim inadvertently included $5,900 of straight time wages. This amount did not exceed the
materiality factor for a finding in the Single Audit, but it warns us to scrutinize the expenditures
closely. From the prior year, the issues of a lack of written policies and procedures for the fixed
assets and coding errors in the Child Development Program were noted again. The issues
reported are not critical problems and they are being addressed in this coming year.
FISCAL IMPACT:
No fiscal impact occurs by having the Council accept these reports. The 1997/98 General
Purpose Financial Statements are presented as the actual results of the City and Agency financial
activities for the year. The 1997/98 Single Audit Act Report is intended to identify compliance
with Federal laws and regUlations. The Gann Appropriation Limit Agreed-Upon Procedure
Report is intended to identify compliance with State laws. No budget adjustments are necessary.
SAN RAFAEL CITY COUNCIL AGENDA REPORT I Pa2c: 3 ,
OPTIONS:
The City Council can choose to either:
1) Accept the 1997-98 Financial Audit; 1997-98 Single Audit Act Report; Gann Appropriation
Limit Report and Management Letter as presented, or
2) Reject the reports. The Council is required under current law to accept the reports and file it
with numerous County, State and Federal agencies. Rejecting these reports would leave the
City out of compliance with applicable laws.
ACTION REQUIRED:
Staff recommends Council accept the reports as presented.
ATTACHMENTS
agenda reports/1999/9798auditmgrntltretc.doc
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c. G. UHLE NB ERG & co. LLP
CERTIFIED PUBLIC ACCOUNTANTS
ROBERT E. BARSANTI, C.P.A . PEGGY H. CHEN, C.P.A. JEFFREY J. IRA, C.P.A. KATHERINE C. WONG , C.P.A
October 31, 1998
Rod Gould, City Manager
City of San Rafael
1400 Fifth Avenue
San Rafael, California 94901
Dear Mr. Gould:
We would like to express our appreciation to your staff for their cooperation and assistance
during the course of our engagement. During that time we discussed various aspects of
operations and internal controls with your staff. We were extremely pleased with the eagerness
of the City's staff to discuss and correct any potential problems. We look forward to working
together with the City in the years to come.
In planning and performing our audit of the general purpose financial statements for the fiscal
year ended June 30, 1998, we considered its internal control structure in order to determine our
auditing procedures for the purpose of expressing an opinion on the general purpose financial
statements and not to provide assurance on the internal control structure. Our consideration of
the internal control structure would not necessarily disclose all matters that might be material
weaknesses under standards established by the American Institute of Certified Public
Accountants. A description of the responsibility of the management for establishing and
maintaining the internal control structure, and of the objective of inherent limitations in such a
structure, is set forth in the attached Appendix, and should be read in conjunction with this
report.
A material weakness is a condition in which the design or operation of the specific internal
control structure elements does not reduce to a relatively low level the risk that errors or
irregularities in amounts that would be material, in relation to the general purpose financial
statements being audited, may occur and not be detected within a timely period by employees in
the normal course of performing their assigned functions.
We noted no matters involving the internal control structure and its operations that we consider
to be material weaknesses as defined above. The following comments present our findings with
suggested solutions for your consideration and possible implementation.
647 Veterans Boulevard, Redwood City, CA 94063
Phone (650) 365-2323 • (408) 733-9944 • (510) 353-0330
Fax (650) 365-8394
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While conducting the audit, we discussed various aspects of operations and internal controls with
management. We feel very positive about the improvements that have been implemented in the
past year, especially in light of the budget constraints facing the City.
This letter is intended solely for the information and use of management and the City Council
and should not be used for any other purpose. This restriction is not intended to limit distribution
of this letter which is a matter of public record.
We would be pleased to discuss these matters in greater detail at your convenience.
Again, we would like to express our appreciation for the courtesy and assistance extended to us
during the conduct of our audit by the staff of the City.
Very truly yours,
C. G. UHLENBERG & CO. LLP
By
Enc!.
cc: Ken Nordhoff, Assistant City Manager
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L~.t·Y OF SAN RAFAEL, CALIFORNln
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
FEDERAL COMPLIANCE
Finding -During the perfonnance of the Single Audit procedures on the Federal Emergency
Management Administration (FEMA) grant, we noted a claim was filed for reimbursement of
unallowable costs. A claim for reimbursement ofFEMA funds included $5,900 of wages paid to
police officers for straight time. The grant requirement states that straight time can only be
claimed when pennanent restoration is perfonned or when an agreement exists that allows
otherwise. The police department activities did not involve restoration nor an agreement exists
that allows activities outside of restoration.
Recommendation -Although the amount claimed were not material enough to be considered a
questioned cost for Single Audit purpose, we do recommend that the City follow the Federal
grant requirements closely in the future so that no unallowable costs are claimed.
MAJOR BREAKTHROUGH IN REPORTING MODEL
A major breakthrough was made by the Governmental Accounting Standards Board (GASB), at
its July, 1998, meeting. The board tentatively agreed to a new reporting model. Full details of
the model as well as the appropriate level of detail and location of the infonnation will be
discussed at a future meeting. The board is also considering modifying the rules of liability and
expenditure recognition in governmental funds as part of the final statement. The board has
scheduled public hearings over the next few months to discuss these issues. We will continue to
keep you updated on the board's progress and of course we are available to answer any questions
regarding this comprehensive and momentous statement. Although this change does not effect
the City directly it will impact the infonnation and accounting of many entities that are integral
to your operations.
INTERNAL CONTROLS
As a result of new disclosure requirements (SAS 82), we need to remind management of their
responsibility to maintain adequate internal controls. Even with strong internal control
procedures in place, employees can learn to manipulate the accounting system to their benefit.
However, a properly executed system of internal controls can help you reduce these risks.
YEAR 2000 COMPLIANCE (y2K)
The City is currently in the process of taking the necessary steps to address the Y2K issue.
The Governmental Accounting Standards Board (GASB) has responded to the Y2K concerns and
has recently proposed Technical Bulletin 98 -A. We fully anticipate that this bulletin will be
adopted. This will affect all financial statements issued after October 31, 1998.
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L~iY OF SAN RAFAEL, CALIFORNln.
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
The Bulletin is focusing on the disclosures required for an entity compliance with the year 2000
(Y2K). The primary disclosures that need to be presented in the fmancial statements are as
follows:
1. In accordance with NCGA Statement 1, paragraph 158, and NCGA Interpretation 6,
paragraphs 5 and 6, notes to the financial statements should disclose material items
whose omission would cause the financial statements to be misleading. Furthermore, in
accordance with NCGA Interpretation 6, paragraph 4, entities are required to disclose
significant commitments in the notes to the financial statements.
2 . The year 2000 problem affects many of the computer systems and other equipment
necessary for the continued and uninterrupted operations of a government. A significant
commitment of resources may be required to make year 2000 compliance changes or
updates to computer systems and other equipment. Omitting information about this
commitment could cause the fmancial statements to be misleading.
3. Governments should disclose a general description of the year 2000 issue as it relates to
their organization. Governments should also disclose the amount spent or payable during
the period covered by the financial statements and the amount of resources committed but
not yet spent or payable to make computer systems and the other equipment year 2000 -
compliant.
4. If software systems or other equipment is replaced or updated and therefore results in
year 2000 compliance cannot be determined, the total amount spent or payable for the
period on updating software, systems, and other equipment should be disclosed. The
disclosure should include whether the replaced or updated system or equipment is year
2000 -compliant.
5. Government should also disclose information about the stages of work needed to make
the systems and other equipment year 2000-compliant. This disclosure should include a
description of the stages of work completed and the stages of work that need to be
completed to make systems and other equipment critical to continued operations year
2000-compliant. The following stages have been identified as necessary to implement a
year 2000-compliant system:
Awareness Stage -Encompasses establishing a budget and project plan
(for example, a timeline or chart noting major tasks and due dates) for
dealing with the year 2000 issue.
Assessment Stage -When the organization begins the actual process of
identifying all of its systems (preparing an inventory) and individual
components of the systems. An organization may decide to review all
system components for year 2000 compliance or, through a risk analysis,
identify only mission-critical systems to check for compliance.
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l, .. fV OF SAN RAFAEL, CALIFORNIA
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
Remediation Stage -When the organization actually makes changes to
systems. This stage deals primarily with the technical issues of
converting existing systems, or switching to compliant systems. During
this stage, decisions are made on how to make the systems or processes
year 2000-compliant, and the required system changes are made.
Validation/Testing Stage -When the organization determines that no
errors were introduced during the conversion process. The development
of test data and test scripts, the running of test scripts, and the review of
test results are crucial for this stage of the conversion process to be
successful. If the testing results show anomalies, the tested area needs to
be corrected and retested.
Implementation Stage -When a tested year 2000-compliant system is
ready for use.
These disclosures will be required in your financial statements for the fiscal year ended June 30,
1999 .
We recommend that you continue to take the necessary actions to immediately begin to identify,
modify, and test all systems that may be negatively affected by the Y2K issue, particularly
mission-critical systems. This program should be monitored closely to ensure completion before
mission-critical systems begin to fail. Such failures may be evident before January 1, 2000.
Depending on the extent of system failures, noncompliance could have catastrophic
consequences for the City.
Also, the City should implement additional verification procedures to test the accuracy of
information received from its vendors, service providers, bankers, customers, and other third-
party organizations with whom it exchanges date -dependent information, because these
organizations also must become Y2K compliant. The City also should satisfy itself that vendors,
service providers, bankers, customers, and other third -party organizations will not experience
problems relating to the Y2K issue that could affect the City's operations or cash flows. In
addition, the accounting personnel were extremely competent and professional, which made for a
very organized and enjoyable audit.
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STATUS OF PRIOR YEAR'S FINDINGS AND RECOMMENDATIONS
PETTY CASH
Finding -During our review of the City's petty cash, we noted that petty cash funds are not
restricted as to maximum amount of disbursements in anyone year.
Recommendation -We recommend that the City establish an annual limit on the amount of
disbursement from petty cash funds as a control to prevent the circumvention of the purchasing
function.
Status -Implemented.
FIXED ASSETS
Finding -The City does not have a written policies manual with established procedures for
differentiating between capitalizable additions and replacement and maintenance expenditures.
A procedures manual should be in place to guide and assist in the area of maintaining fixed
assets and determining depreciation on fixed assets.
Recommendation -We recommend that the City establish a written procedures manual as a guide
and to assist in the area of maintaining fixed assets.
Status -Not implemented; repeat recommendation.
CHILD DEVELOPMENT PROGRAM
Finding -During our review of the attendance related to the Child Development Program, we
noted three instances where the enrollment days were miscalculated. The net effect on the Child
Days of Enrollment reported to the California Department of Education is two (2) days less than
the actual days of enrollment.
Recommendation -We recommend that the enrollment days be calculated carefully and reviewed
properly.
Status -Implemented.
Finding -During our review of the Child Development Program grant revenues, we noted that
revenues for the Before and After School Program and the One-Time-Only Instructional Material
Grant were recorded in the Latchkey and Preschool Funds. Adjustments were required to
allocate the grant revenues to the appropriate funds.
Recommendation -We recommend that cash receipts for grant revenues be coded correctly and
distributed to the appropriate funds.
Status -Not implemented; repeat recommendation.
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Co. iV OF SAN RAFAEL, CALIFORNlrt
STATUS OF PRIOR YEAR'S FINDINGS AND RECOMMENDATIONS
ACCOUNTING POLICIES AND PROCEDURES MANUAL
Finding -The City does not have an accounting manual which outlines the current accounting
policies and procedures. Lack of such a manual can result in inconsistent treatment of
accounting transactions, increased supervisor time responding to staff inquiries and difficult
transition periods in the event of personnel turnover. Additionally, it is more difficult to assure
compliance with legal and other requirements.
Recommendation - A comprehensive accounting policies and procedures manual should be
prepared which would include, but not be limited to:
• Descriptions of the functions of each job within the Finance Department.
• The nature and source of entries to each general ledger account.
• Descriptions of standard, recurring and closing journal entries, especially for
complicated transactions.
• Approved procedures for journal entries and invoices .
• Monthly and annual closing procedures.
• Financial reporting, including compliance requirements.
The City acknowledges that there is a need to have a policy and procedures manual. However,
this is something that the City is going to work on as time permits.
Status -The City is in the process of preparing an accounting policies and procedures manual.
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MANAGEMENT'S RESPONSIBILITY FOR, AND THE OBJECTIVES AND
LIMITATIONS, OF THE INTERNAL CONTROL STRUCTURE
APPENDIX
The following comments concerning management's responsibility for the internal control
structure and the objectives of, and the inherent limitations in, the internal control structure are
adapted from the Statements on Auditing Standards of the American Institute of Certified Public
Accountants.
Management's Responsibility
Management is responsible for establishing and maintaining an internal control structure. In
fulfilling this responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of the internal control structure policies and procedures.
Objectives
The objectives of an internal control structure are to provide management with reasonable, but
not absolute, assurance that assets are safeguarded against loss from unauthorized use or
disposition, and that transactions are executed in accordance with management's authorization
and recorded properly to permit the preparation of general purpose financial statements in
accordance with generally accepted accounting principles.
Limitations
Because of inherent limitations in any internal control structure, errors or irregularities
nevertheless may occur and not be detected. Also, projection of any evaluation of the structure
to future periods is subject to the risk that procedures may become inadequate because of
changes in conditions or that the effectiveness of the design and operation of policies and
procedures may deteriorate.
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c. G. UHLEN BERG & co. LLP
CERTIFIED PUBLIC ACCOUNTANTS
ROBERT E. BARSANTI. C.P.A. PEGGY H. CHEN , C.P.A. JEFFREY J. IRA , C.P.A. KATHERINE C. WONG , C.P.A
City Council
City of San Rafael, California
Independent Accountant's Report on Agreed-Upon Procedures
Applied to Appropriations Limit Worksheets
We have applied the procedures enumerated below to the accompanying Appropriations
Limit worksheet No.6 of the City of San Rafael, California for the year ended June 30,
1998. These procedures, which were agreed to be the City of San Rafael, California and
the League of California Cities (as presented in the League publication entitled Article
XIIIB Appropriations Limitation Uniform Guidelines) were performed solely to assist the
City of San Rafael, California in meeting the requirements of Section 1.5 of Article XIIIB
of the California Constitution.
This engagement to apply agreed-upon procedures was performed in accordance with
standards established by the American Institute of Certified Public Accountants. The
sufficiency of the procedures is solely the responsibility of the specified users of the
report. Consequently, we make no representation regarding the sufficiency of the
procedures described below either for the purpose for which this report has been
requested or for any other purpose.
The procedures performed and our findings were as follows:
1. We obtained the completed worksheets No.1 through 7 and compared the
limit and annual adjustments factors included in those worksheets to the limit
and annual adjustment factors that were adopted by resolution of the City
Council. We also compared the population and inflation options included in
the aforementioned worksheets to those that were selected by a recorded vote
of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit worksheet No.6, we added line
A, last year's limit, to line E, total adjustments, and compared the resulting
amount to line F, this year's amount.
Finding: No exceptions were noted as a result of our procedures.
647 Veterans Boulevard, Redwood City, CA 94063
Phone (650) 365-2323 • (408) 733-9944 • (510) 353-0330
Fax (650) 365-8394
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3. We compared the current year information presented in the accompanying
Appropriations Limit worksheet No.6 to the other worksheets described in
No.1 above.
Finding: No exceptions were noted as a result of our procedures.
4. We compared the prior year appropriations limit presented in the
accompanying Appropriations Limit worksheet No. 6 to the prior year
appropriations limit adopted by the City Council for the prior year.
Finding: No exceptions were noted as a result of our procedures.
We were not engaged to, and did not, perform an audit, the objective of which would be
the expression of an opinion on the accompanying Appropriations Limit worksheet No.6.
Accordingly, we do not express such an opinion. Had we performed additional
procedures, other matters might have come to our attention that would have been reported
to you. No procedures have been performed with respect to the determination of the
appropriations limit for the base year, as defined by the League publication entitled
Article XIIIB Appropriations Limitation Uniform Guidelines.
This report is intended solely for the use of the City of San Rafael, California and should
not be used by those who have not agreed to the procedures and taken responsibility for
the sufficiency of the procedures for their purposes. However, this report is a matter of
public record and its distribution in not limited.
C. 6. ~ ~ &. U(J
Octoberber 23, 1998
Redwood City, California
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CITY OF SAN RAFAEL
GANN APPROPRIA nONS LIMIT A nON COMPUTA nON
YEAR ENDED JUNE 30, 1998
A. LAST YEAR'S LIMIT
(AS AMENDED) (A) $ 27,941,557
B. ADJUSTMENT FACTORS:
l. Population 1.0217%
2. Change in Assessment Roll for
Nonresidential Construction 1.0540%
Total Adjustment Factor (B) 1.0768%
C. ANNUAL ADJUSTMENT 2,235,325
D . OTHER ADJUSTMENTS:
Lost responsibility
Transfer to private
Transfer to fees
Asswned responsibility
Subtotal
E. TOTAL ADJUSTMENTS (E) 2,235,325
F. THIS YEAR'S LIMIT (A+E) $ 30,176,882
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CITY OF SAN RAFAEL. CALIFORNIA
GENERAL PURPOSE
FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED
JUNE 30,1998
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~rY OF SAN RAFAEL, CALIFOR1L.~
GENERAL PURPOSE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
TABLE OF CONTENTS
(Concluded)
Independent Auditor's Report .................................................................................... .
General Purpose Financial Statements:
Combined Balance Sheet -All Fund Types and Account Groups and
Discretely Presented Component Units ........................................................ ..
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances -All Governmental Fund
Types and Expendable Trust Funds .............................................................. .
Combined Statement of Revenues, Expenditures and Changes in
Fund Balances -Budget and Actual (Budget Basis) -General,
Special Revenue and Debt Service Funds ..................................................... ..
Combined Statement of Revenues, Expenses and Changes in
Fund Equity -Proprietary Fund Type and
Discretely Presented Component Unit ........................................................... .
Combined Statement of Cash Flows -Proprietary Fund Type and
Discretely Presented Component Unit.. ........................................................ ..
Notes To General Purpose Financial Statements ...................................................... ..
Supplementary Information:
Special Revenue Funds:
PAGE NO.
1
2-5
6-7
8-9
10
11
12 -44
Combining Balance Sheet....... ......... ............. ......... .......... .... .............. ............. 45 -48
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances........................................................................ 49 -52
Recreation Revolving Fund -Statement of Revenues, Expenditures
and Changes in Fund Balances -Budget (GAAP Basis) and Actual....... 53
Baypoint Lagoons Assessment District Fund -Statement of
Revenues, Expenditures and Changes in Fund Balances -
Budget (GAAP Basis) and Actual ........................................................... 54
Parking Services Fund -Statement of Revenues, Expenditures
and Changes in Fund Balances -Budget (GAAP Basis) and Actual ....... 55
Gas Tax Fund -Statement of Revenues, Expenditures and Changes
in Fund Balances -Budget (GAAP Basis) and Actual............................ 56
Childcare Fund -Statement of Revenues, Expenditures and
Changes in Fund Balances -Budget (GAAP Basis) and Actual.............. 57
Equipment Replacement Fund -Statement of Revenues, Expenditures
and Changes in Fund Balances -Budget (GAAP Basis) and Actual....... 58
Street Maintenance & Cleaning Fund -Statement of Revenues,
Expenditures and Changes in Fund Balances -Budget (GAAP Basis)
and Actual........... ..... ........ ....... .............. .... .... .............. ........ ......... ... ......... 59
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_ fY OF SAN RAFAEL. CALIFORN.I. ...
GENERAL PURPOSE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
TABLE OF CONTENTS
(Concluded)
Sewer Maintenance Fund -Statement of Revenues, Expenditures
and Changes in Fund Balances -Budget (GAAP Basis)
PAGE NO.
and Actual...... ...... ..... ........ ........ ........... ........................ ........ ...... .............. 60
Household Hazmat Facility Fund -Statement of Revenues, Expenditures
and Changes in Fund Balances -Budget (GAAP Basis) and Actual ...... . 61
Loch Lomond Assessment District Fund -Statement of Revenues,
Expenditures and Changes in Fund Balances -Budget (GAAP Basis)
andActual ............................................................................................... . 62
Library Fund -Statement of Revenues, Expenditures and Changes
in Fund Balances -Budget (GAAP Basis) and Actual............................ 63
Public Safety Fund -Statement of Revenues, Expenditures and
Changes in Fund Balances -Budget (GAAP Basis) and Actual.............. 64
Stormwater Fund -Statement of Revenues, Expenditures and
Changes in Fund Balances -Budget (GAAP Basis) and Actual.............. 65
Traffic and Housing Mitigation Fund -Statement of Revenues,
Expenditures and Changes in Fund Balances -Budget (GAAP Basis)
and Actual ........................ .......... ................................. ................. ... ...... ... 66
Development Services Fund -Statement of Revenues, Expenditures
and Changes in Fund Balances -Budget (GAAP Basis) and Actual ....... 67
Grants Fund -Statement of Revenues, Expenditures and Changes
in Fund Balances -Budget (GAAP Basis) and Actual............................ 68
Parkland Dedication Fund -Statement of Revenues, Expenditures and
Changes in Fund Balances -Budget (GAAP Basis) and Actual .............. 69
Debt Service Funds:
Combining Balance Sheet............................................................................... 70 -71
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances .. ...... ............. ......... ............ ... ...... ... ..... ... ..... ..... 72 -73
Peacock Gap Assessment District Fund -Statement of Revenues,
Expenditures and Changes in Fund Balances -Budget (GAAP Basis)
and Actual .......... ......... .... ...... ................ ..... .... ............... ...... .... .... ........ ..... 74
1915 Act Bonds Fund -Statement of Revenues, Expenditures and
Changes in Fund Balances -Budget (GAAP Basis) and Actual.............. 75
Mariposa Assessment District Fund -Statement of Revenues,
Expenditures and Changes in Fund Balances -Budget (GAAP Basis)
and Actual ................................................................................................ 76
1997 Financing Authority Revenue Bonds Fund -Statement of Revenues,
Expenditures and Changes in Fund Balances -Budget (GAAP Basis)
and Actual ............ .... ... ......... ............. .................. ............................. ........ 77
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( .TY OF SAN RAFAEL, CALIFORN. .
GENERAL PURPOSE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
TABLE OF CONTENTS
(Concluded)
1992 Agency Refunding Bonds Fund -Statement of Revenues,
Expenditures and Changes in Fund Balances -Budget (GAAP Basis)
and Actual ............................................................................................... .
1995 Agency Refunding Bonds Fund -Statement of Revenues,
Expenditures and Changes in Fund Balances -Budget (Cash Basis)
and Actual ............................................................................................... .
Capital Projects Funds:
Combining Balance Sheet .............................................................................. .
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances ................................................................ .
Internal Service Funds:
Combining Balance Sheet .............................................................................. .
Combining Statement of Revenues, Expenditures
and Changes in Retained Earnings .......................................................... .
Combining Statement of Cash Flows ............................................................ .
Trust and Agency Funds:
Combining Balance Sheet .............................................................................. .
Expendable Trust Funds -Combining Statement of Revenues,
Expenditures and Changes in Fund Balances ......................................... .
Statement of Changes in Assets and Liabilities -Agency Fund .................... .
PAGE NO.
78
79
80 -81
82 -83
84
85
86
87 -88
89 -90
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:qg C. G. UHLENBERG & CO. LLP
CERTIFIED PUBLIC ACCOUNTANTS
ROBERT E. BARSANTI. C.P.A. PEGGY H. CHEN. C.P.A. JEFFREY J. IRA . C.P.A . KATHERINE C. WONG, C.P.A.
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INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and Members of
the City Council of the City of San Rafael
San Rafael, California
We have audited the accompanying general purpose financial statements of the City of San Rafael, California
(the City), as of and for the fiscal year ended June 30, 1998, as listed in the foregoing table of contents. These
general purpose financial statements are the responsibility of the City's management. Our responsibility is to
express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing
Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management
and Budget Circular A-133, Audits of State and Local Governments and Non-Profit Organizations. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the general
purpose financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all material respects,
the fmancial position of the City of San Rafael, California, at June 30, 1998, and the results of its operations
and the cash flows of its proprietary fund types for the fiscal year then ended in conformity with generally
accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated October 23, 1998 on
our consideration of the City of San Rafael's internal control structure and a report on October 23, 1998 on its
compliance with laws and regulations.
Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as
a whole . The accompanying combining and individual fund and account group statements and schedules listed
in the table of contents under "Supplementary Information" are presented for purposes of additional analysis
and are a required part of the general purpose fmancial statements of the City of San Rafael. Such information
has been subjected to the auditing procedures applied in the audit of the general purpose financial statements
and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial
statements taken as a whole .
The financial information listed in the accompanying table of contents under "Statistical Section" is presented
for purposes of additional analysis and is not a required part of the general purpose financial statements of the
City. Such information has not been SUbjected to the auditing procedures applied in the audit of the general
purpose financial statements, and, accordingly, we express no opinion on such information.
(!. G-. ~ ~ &. ~
October 23, 1998
Redwood City, California
647 Veterans Boulevard, Redwood City, CA 94063
Phone (650) 365-2323 • (408) 733-9944 • (510) 353-0330
P:lY ((;<;0) ~(;<;_R~q4.
CITY OF SAN RAFAEL. CALIFORNIA
COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS
AND DISCRETELY PRESENTED COMPONENT UNITS
JUNE 30, 1998
PROPRIETARY
GOVERNMENTAL FUND TYPES FUND TYPES
SPECIAL DEBT CAPITAL INTERNAL
GENERAL REVENUE SERVICE PROJECTS SERVICE
ASSETS AND OTHER DEBITS
Assets:
Cash and investments (Note 2) $4,975,183 $16,479,887 $1,183,603 $ 7,373,715 $ 2,182,998
Cash with fiscal agent (Note 2) 1,043,908
Restricted cash
Accounts receivable 750,002 743,094 1,146,758
Taxes receivable (Note 3) 2,708,051 439,444
Grants receivable 9,782
Interest receivable 406,282 74,434
Assessment receivable 1,002,967
Loans receivable (Note 7) 776,004 100,000 343,659
Due from other funds (Note 8) 64,654 1,703,482
Prepaid expenses
Land held for resale 2,004,514
Other current assets
General flXed assets (Note 4)
Component unit fixed assets -net
COP issuance costs -net
Other Debits:
Amount available in debt service
funds
Amount to be provided for
retirement of:
General long-term debt
Vacation and sick leave
obligations
TOTAL ASSETS AND
OTHER DEBITS S9.615.522 S 17.397,417 S3.230.478 S 13.086.006 S2.182.998
See accompanying notes to general purpose financial statements.
2
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FIDUCIARY PRIMARY REPORTING
FUND TYPES ACCOUNT GROUPS GOVERNMENT ENTITY
EXPENDABLE GENERAL GENERAL TOTALS TOTALS
TRUST AND FIXED LONG-(MEMORANDUM COMPONENT (MEMORANDUM
AGENCY ASSETS TERM DEBT ONLY) UNIT ONLY)
$ 427,533 $ $ $ 32,622,919 $ 760,557 $ 33,383,476
1,043,908 1,043,908
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11,496,347 11,496,347 413,517 11,909,864
2,639,854 2,639,854
J 3,147,495 3,147,495
9,782 9,782
480,716 1,673 482,389
1,002,967 1,002,967
1,219,663 1,219,663
1,768,136 1,768,136
12,818 12,818
2,004,514 2,004,514
3,190 3,190
36,347,650 36,347,650 36,347,650
23,088,862 23,088,862
52,550 52,550
J 2,227,511 2,227,511 2,227,511
J 29,252,922 29,252,922 29,252,922
2,646,535 2,646,535 2,646,535
~ 11,923,880 ~ 36,347,650 $ 34,126,968 $ 127,910,919 $ 24,333,167 $ 152,244,086
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(Continued)
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CITY OF SAN RAFAEL, CALIFORNIA
COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS
AND DISCRETELY PRESENTED COMPONENT UNIT
JUNE 30, 1998
PROPRIETARY
GOVERNMENTAL FUND TYPES FUND TYPES
SPECIAL DEBT CAPITAL INTERNAL
GENERAL REVENUE SERVICE PROJECTS SERVICE
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable $1,061,640 $ 359,562 $ $ 1,024,522 $ 13,624
Connection fees payable
Developer bonds payable 1,891,635
Insurance claims payable 1,908,741
Interest payable
Due to other funds (Note 8) 7,654 1,760,482
Deferred compensation payable
Deposits 100,000
Deferred revenue 157,930 1,002,967 70,020
Capital leases (Note 6)
Compensated absences (Note 5)
Certificates of participation
Notes payable (Note 5)
Special assessment debt (Note 5)
Bonds payable (Note 5)
Total Liabilities 2,953,275 525,146 1,002,967 2,955,024 1,922,365
Fund Equity and Other Credits:
Investment in general fixed assets
Contributed capital
Retained earnings (Note 9):
Reserved
Unreserved:
Undesignated 260,633
Total Retained Earnings 260,633
Fund Balances (Note 9):
Reserved 3,543,117 1,549,940 2,213,810 6,454,780
Unreserved:
Designated 12,024,219 13,701 4,866,003
Undesignated 3,119,130 3,298,112 (1,189,801)
Total Fund Balances _6,662,247 16,872,271 2,227,511 10,130,982
Total Fund Equity and
other credits 6,662,247 16,872,271 2,227,511 10,130,982 260,633
TOTAL LIABILITIES
AND FUND EQUITY $9,615,522 $17,397,417 $3,230,478 $13,086,006 $ 2,182,998
See accompanying notes to general purpose financial statements.
4
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FIDUCIARY PRIMARY REPORTING
FUND TYPES ACCOUNT GROUPS GOVERNMENT ENTITY
EXPENDABLE GENERAL GENERAL TOTALS TOTALS
TRUST AND FIXED LONG-(MEMORANDUM COMPONENT (MEMORANDUM
AGENCY ASSETS TERM DEBT ONLY) UNIT ONLY)
$ $ $ $ 2,459,348 $ 78,060 $ 2,537,408
2,000 2,000
1,891,635 1,891,635
1,908,741 1,908,741
119,652 119,652
1,768,136 1,768,136
11,496,347 11,496,347 11,496,347
100,000 100,000
1,230,917 1,230,917
102,433 102,433 102,433
2,646,535 2,646,535 2,646,535
4,253,313 4,253,313
169,000 169,000 169,000
1,769,000 1,769,000 1,769,000
29,440,000 29,440,000 29,440,000
11,496,347 34,126,968 54,982,092 4,453,025 59,435,117
36,347,650 36,347,650 36,347,650
--8,034,558 8,034,558 ---------
95,297 95,297
260,633 11,750,287 12,010,920
260,633 11,845,584 12,106,217
3,000 13,764,647 13,7,152
424,533 17,306,951 17,306,951
5,227,441 5,227,441
427,533 36,320,544 36,320,544
72,928,827 19,880,142 92,808,969
$ 11,923,880 $ 36,347,650 $ 34,126,968 $ 127,910,919 $ 24,333,167 $ 152,244,086
(Concluded)
5
CITY OF SAN RAFAEL. CALIFORNIA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
GOVERNMENTAL FUND TYPES
SPECIAL DEBT
GENERAL REVENUE SERVICE
REVENUES:
CAPITAL
PROJECTS
Taxes and special assessments $ 25,069,298 $ 86,895 $ 3,203,499 $ 474,158
Licenses and permits 681,470 148,582
Fines and forfeitures 734,027 2,115
Uses of money and property 521,899 836,884 39,995 587,388
Intergovernmental 4,440,101 2,145,535 4,638,245
Charges for current services 1,817,285 6,573,396 500
Other revenues 64,095 1,409,499 3,185,380
Total Revenues 33,328,175 11,202,906 3,243,494 8,885,671
EXPENDITURES:
Current:
General government 4,385,297 128,924
Public safety 18,115,295 1,479,852
Public works and parks 4,288,115 2,689,052
Community development 1,488,564 412,959 1,146,492
Culture and recreation 1,179,595 3,513,018 34,461
Capital Outlay 437,530 2,938,419 14,752,465
Debt Service:
Principal retirement 801,000
Interest and fiscal charges 1,909,490
Total Expenditures 29,894,396 11,162,224 2,710,490 15,933,418
EXCESS (DEFICIENCy) OF REVENUES
OVER (UNDER) EXPENDITURES 3,433,779 40,682 533,004 (7,047,747)
OTHER FINANCING SOURCES (USES):
Operating transfers -In 812,195 2,986,961 7,585 40,473
Operating transfers -Out (3,536,765) (498,361) (16,896) (7,692)
Total Other Financing Sources (Uses) (2,724,570) 2,488,600 (9,311) 32,781
EXCESS (DEFICIENCy) OF REVENUES
AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES AND
OTHER FINANCING USES 709,209 2,529,282 523,693 (7,014,966)
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED 5,953,038 14,342,989 1,703,818 17,145,948
FUND BALANCES AT END OF YEAR $ 6,662,247 $ 16,872,271 $ 2,227,511 $10,130,982
See accompanying notes to general purpose financial statements.
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FIDUCIARY
FUND TYPES
EXPENDABLE
TRUST
$
21,548
35,000
16~771
73)19
66,352
31,572
97,924
(24,605)
(24,605)
452,138
$ 427,533
)
PRIMARY
GOVERNMENT
TOTALS
(MEMORANDUM
ONLY}
$ 28,833,850
830,052
736,142
2,007,714
11,258,881
8,391,181
4,675,745
56,733,565
4,514,221
19,595,147
6,977,167
3,114,367
4,758,646
18,128,414
801,000
1,909,490
59,798,452
(3,064,887)
3,847,214
(4,059,714)
(212,500)
(3,277,387)
39,597,931
$ 36,320,544
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CITY OF SAN RAFAEL, CALIFORNIA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL (BUDGET BASIS)
GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
GENERAL FUND
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
REVENUES:
Taxes and special assessments $23,712,259 $25,069,298 $ 1,357,039
Licenses and penn its 547,987 681,470 133,483
Fines and forfeitures 670,070 734,027 63,957
Uses of money and property 393,025 521,899 128,874
Intergovernmental 3,735,272 4,440,101 704,829
Charges for current services 1,577,265 1,817,285 240,020
Other revenues 42,000 64,095 22,095
Total Revenues 30,677,878 33,328,175 2,650,297
EXPENDITURES:
Current:
General government 4,237,017 4,385,297 (148,280)
Public safety 18,079,773 18,115,295 (35,522)
Public works and parks 3,617,562 4,288,115 (670,553)
Community development 1,743,427 1,488,564 254,863
Culture and recreation 1,244,309 1,179,595 64,714
Capital Outlay 694,699 437,530 257,169
Debt Service:
Principal retirement
Interest and fiscal charges
Total Expenditures 29,616,787 29,894,396 (277,609)
EXCESS (DEFICIENCy) OF REVENUES
OVER (UNDER) EXPENDITURES 1,061,091-3,433,779 2,372,688
OTIIER FINANCING SOURCES (USES):
Operating transfers -In 821,055 812,195 (8,860)
Operating transfers -Out (3,281,099) (3,536,765) (255,666)
Total Other Financing Sources (Uses) (2,460,044) (2,724,570) (264,526)
EXCESS (DEFICIENCy) OF REVENUES AND
OTIIER FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING USES ~ (1,398,953) 709,209 $ 2,108,162
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED 5,953,038
FUND BALANCES AT END OF YEAR ~ 6,662,247
See accompanying notes to general purpose financial statements.
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VARIANCE VARIANCE
FAVORABLE FAVORABLE
] BUDGET ACTUAL (UNFAVORABLE) BUDGET ACTUAL (UNFAVORABLE)
$ 86,376 $ 86,895 $ 519 $ 2,792,591 $ 3,203,499 $ 410,908
636,575 148,582 (487,993)
2,115 2,115
670,660 836,884 166,224 78,150 39,995 (38,155)
2,770,927 2,145,535 (625,392)
4,735,677 6,573,396 1,837,719
1,285,706 1,409,499 123,793
10,185,921 11,202,906 1,016,985 2,870,741 3,243,494 372,753
197,524 128,924 68,600
1,439,308 1,479,852 (40,544)
2,629,227 2,689,052 (59,825)
344,000 412,959 (68,959)
3,720,362 3,513,018 207,344
10,805,201 2,938,419 7,866,782
775,000 801,000 (26,000)
1,953,927 1,909,490 44,437
19,135,622 11,162,224 7,973,398 2,728,927 2,710,490 18,437
1 (8,949,701) 40,682 8,990,383 141,814 533,004 391,190
1 2,992,849 2,986,961 (5,888) 7,585 7,585
(504,357) (498,361) 5,996 (8,448) (16,896) (8,448)
2,488,492 2,488,600 108 (8,448) (9,311) (863)
$ (6,461,209) 2,529,282 $8,990,491 $ 133,366 523,693 $ 390,327
14,342,989 1,703,818
1 ~ 16,872,271 ~ 2,227,511
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CITY OF SAN RAFAELs CALIFORNIA
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN
FUND EQUITY -PROPRIETARY FUND TYPE AND
DISCRETELY PRESENTED COMPONENT UNIT
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
PRIMARY
GOVERNMENT COMPONENT TOTALS
INTERNAL UNIT (MEMORANDUM
SERVICE ENTERPRISE ONLY)
OPERATING REVENUES:
Charges for current services $ 1,434,929 $ $ 1,434,929
Sewer charges 4,570,151 4,570,151
Connection fees -----79,643 79,643
Total Operating Revenues 1,434,929 4,649,794 6,084,723
OPERATING EXPENSES
Insurance premiums and claims 1,649,713 1,649,713
Sewage collection 1,442,139 1,442,139
Sewage treatment 1,843,050 1,843,050
Depreciation and amortization 743,427 743,427
General and administrative 171,926 171,926
Total Operating Expenses 1,649,713 4,200,542 5,850,255
Operating income (loss) (214,784) 449,252 234,468
NON-OPERATING REVENUES (EXPENSES):
Property taxes 381,497 381,497
Special assessments -Bayside Acres 61,116 61,lI6
Aid from governmental agencies 10,529 10,529 I...J
Investment income 105,002 31,147 136,149
Interest expense (299,835) (299,835)
Refunds 157,915 157,915
Other non-operating revenues (15,782) (15,782)
Operating transfers -In 212,500 212,500
Total Non-operating Revenues 475,417 168,672 644,089
Net Income 260,633 617,924 878,557
Add: depreciation expense on assets
acquired by contributed capital 286,478 286,478
Increase in retained earnings 260,633 904,402 1,165,035
Retained earnings -beginning of year 10,941,182 10,941,182
Retained earnings -end of year 260,633 11,845,584 12,106,217
Contributed capital -beginning of year 8,321,036 8,321,036
Less: depreciation expense accumulated (286,478) (286,478)
Contributed capital -end of year 8,034,558 8,034,558
Total Fund Equity $ 260,633 $ 19,880,142 $ 20,140,775
See accompanying notes to general purpose fmancial statements.
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CITY OF SAN RAFAEL. CALIFORNIA
COMBINED STATEMENT OF CASH FLOWS -
PROPIDETARY FUND TYPE AND
DISCRETELY PRESENTED COMPONENT UNIT
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
PRIMARY
GOVERNEMENTCONWONENT TOTALS
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income/(loss)
Adjustments to reconcile operating income to net cash provided
by operating activities:
Depreciation and amortization
Changes in current assets and liabilities:
(Increase) decrease in:
Prepaid expenses and other current assets
Increase (decrease) in:
Accounts payable and other current liabilities
Excess ERAF refunded
Net Cash Provided by/(Used for) Operating Activities
CASH FLOWS FROM NON CAPITAL FINANCING ACTIVITIES:
Property taxes
Aid from governmental agencies
Proceeds from assumption of liabilities
Refunds received
Operating transfers -in
Net Cash Provided by Noncapital Financing Activities
CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES:
Cash paid for capital acquisitions
Special assessments -Bayside Acres Assessment District
Interest received from certificates of participation principal cash
Principal payments on certificates of participation
Interest paid on certificates of participation
Principal payments on Bayside Acres coupon bonds
Interest paid on Bayside Acres coupon bonds
Net Cash Used for Capital Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Income from investments
Net Cash Provided by Investing Activities
Net Increase in Cash and Cash Equivalent
Cash and Cash Equivalents -Beginning of Year
Cash and Cash Equivalents -End of Year
INTERNAL UNIT (MEMORANDUM
SERVICE ENTERPRISE ONLY)
$ (214,784) $ 449,252
743,427
(616)
13,624 (66,490)
(201,160)
1,908,741
157,915
212,500
2,279,156
(15,782)
1,109,791
381,497
10,529
392,026
(762,550)
61,116
21,449
(185,000)
(292,530)
(110,000)
(3,016)
(1,270,531)
105,002 9,696
105,002 9,696
2,182,998 240,982
933,092
$ 2,182,998 $ 1,174,074
$ 234,468
743,427
(616)
(52,866)
(15,782)
908,631
381,497
10,529
1,908,741
157,915
212,500
2,671,182
(762,550)
61,116
21,449
(185,000)
(292,530)
(110,000)
(3,016)
(1,270,531)
114,698
114,698
2,423,980
933,092
$ 3,357,072
See accompanying notes to general purpose [mancial statements,
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NOTES TO GENERAL PURPOSE
FINANCIAL STATEMENTS
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CITY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of San Rafael (the City) have been prepared in conformity
with generally accepted accounting principles (GAAP) as applied to governmental units. The
Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for
establishing governmental accounting and financial reporting principles.
A. REPORTING ENTITY
The City maintains a Council-Manager form of government and provides the
following services: public safety (police and fire), public works, community
development, library, parks, recreation, childcare, and general administrative services.
As required by generally accepted accounting principles, these financial statements
present the City (the primary government) and its component units. Component units
generally are legally separate entities for which a primary government is fmancially
accountable. Financial accountability ordinarily involves meeting both of the
following criteria set forth in GASB Statement No. 14; the primary government is
accountable for the potential component unit, and the primary government is able to
impose its will upon the potential component unit, or there is a possibility that the
potential component unit may provide specific fmancial benefits or impose specific
financial burdens on the primary government.
In addition to having the same governing board, the City is fmancially accountable for
the San Rafael Redevelopment Agency and the San Rafael Joint Powers Financing
Authority, and management activities of both entities are conducted by City staff. The
two legally separated entities are, in substance, part of the City's operations. The two
entities are, therefore, blended into the City's general purpose fmancial statements.
The component units discussed in this note are included in the City's reporting entity
because of the significance of its operational or fmancial relationships with the City.
Each component unit has a June 30 year end. Separately issued component unit
financial statements can be obtained at the City of San Rafael, Finance Department,
1400 Fifth Avenue, San Rafael, California 94915.
Blended Component Units:
San Rafael Redevelopment Agency
The San Rafael Redevelopment Agency (the Agency) was established
under the provisions of the Community Redevelopment Law (California
Health and Safety Code, commencing with Section 33000) primarily to
assist in the clearance and rehabilitation of areas determined to be in a
declining condition in the City of San Rafael (the City). Financial activity
12
CITY OF SAN RAFAEL, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
of the Agency commenced in July 1983. Under the Agency's
Redevelopment Plan (the Plan), approved in November 1982, the Agency
proposes to assist in the development of the property located in the central
San Rafael business core and east San Rafael. The Agency receives
incremental tax revenues on the developed property due to increases in
assessed value. The Agency functions as an independent entity. The City
Council serves as the governing board of the San Rafael Redevelopment
Agency.
The Agency's assets, liabilities, revenues and expenditures (other than
those applicable to its fixed assets and long term debt) are blended into the
Capital Projects Funds and Debt Service Funds. The Agency's flXed assets
are included in the General Fixed Assets Account Group. The Agency's
long-term debts are blended into the General Long-Term Debt Account
Group.
San Rafael Joint Powers Financing Authority
The San Rafael Joint Powers Financing Authority (the Financing
Authority) was created by the City of San Rafael 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 the fmancing and refmancing of
certain assessment district activities of the City.
All of the Financing Authority's assets, liabilities, revenues and
expenditures are blended into the Capital Projects Funds and the Debt
Service Funds. The Financing Authority's long-term debts are blended into
the General Long-Term Debt Account Group.
Discretely Presented Component Unit:
San Rafael Sanitation District
The San Rafael Sanitary District (the 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 of San
Rafael and adjacent unincorporated areas. The City contracts with the
District to maintain the collection systems in the City and 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 of San Rafael
appoints two out of the three board members and has the ability to remove
the two board members at will.
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(;lTY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
The activities of the District are accounted for in a single enterprise fund.
The District's assets, liabilities, revenues, expenses, results of operation
and cash flows are discretely presented on the City's general purpose
financial statements. Separately issued component unit financial
statements can be obtained at Central Marin Sanitation Agency, Finance
Department, 1301 Andersen Drive, San Rafael, CA 94901.
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Funds and Account Groups -The accounts of the City are organized on
the basis of funds and account groups, each of which is considered a separate
accounting entity with its own self-balancing accounts that comprise its assets,
liabilities, fund equity, revenues and expenditures. These funds and accounts are
established for the purpose of carrying out specific activities or certain objectives in
accordance with specific regulations, restrictions or limitations. Government resources
are allocated to and accounted for in individual funds based upon the purposes for
which they are to be spent and the means by which spending activities are controlled.
The various funds are grouped in the fmancial statements in this report into categories
as follows:
Governmental Funds
• The General Fund is the general operating fund of the City. It is used to
account for all fmancial resources except those required to be accounted
for in another fund.
• Special Revenue Funds are used to account for the proceeds of specific
revenue sources (other than expendable trusts or major capital projects)
that are legally or administratively restricted to expenditures for specified
purposes.
• Debt Service Funds are used to account for the accwnulation of resources
for, and the payment of, general long-tenn debt principal, interest and
related costs.
• Capital Projects Funds are used to account for financial resources to be
used for the acquisition or construction of major capital facilities.
14
CITY OF SAN RAFAEL, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
Proprietary Funds
• Enterprise Funds are used to account for operations that are financed and
operated in a manner similar to private business enterprises where the
intent of the governing body is that the cost (expenses, including
depreciation) of providing goods or services to the general public on a
continuing basis be financed or recovered primarily through user charges;
or where the governing body has decided that periodic determination of
revenues earned, expenses incurred, and/or net income is appropriate for
capital maintenance, public policy, management control, accountability, or
other purposes.
• Internal Service Funds are used to account for the financing of goods or
services provided by one department or program to other departments or
programs of the City, or to other governments, on a cost-reimbursement
basis.
Fiduciary Funds
• Expendable Trust Funds are accounted for in the same manner as
governmental funds. (All trust funds of the City of San Rafael are
classified as expendable.)
• Agency Funds are custodial in nature and do not involve the measurement
of the results of operations. They are used to account for monies received
by the City of San Rafael as an agent for individuals, other governments
and other entities.
Account Groups
• The General Fixed Assets Account Group is used to maintain control and
cost information on capital assets acquired to perform general government
functions.
• The General Long-Term Debt Account Group is used to record the
unmatured principal of tax allocation bonds, special assessment bonds,
notes, compensated absences, the principal amount of future lease
payments due under lease purchase agreements and other long-term
liabilities.
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c. fV OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
C. MEASUREMENT FOCUS
All governmental funds are accounted for using a current financial resources
measurement focus. With this measurement focus, only current assets and current
liabilities generally are included on the balance sheet. Operating statements of these
funds present increases (Le., revenues and other financing sources) and decreases (Le.,
expenditures and other financing uses) in net current assets.
D. BASIS OF ACCOUNTING
All governmental funds, expendable trust funds and agency funds are accounted for
using the modified accrual basis of accounting. Their revenues are recognized when
they become susceptible to accruals, that is, when both are measurable and available.
"Measurable" means the amounts of the transaction can be determined and "available"
me~s collectible within the current period or soon enough thereafter to be used to pay
liabilities of the current period. All proprietary funds are accounted for using the
accrual basis of accounting. Revenues are recognized in the accounting period in
which they are earned and expenses are recognized in the accounting period in which
they are incurred. The City applies all F ASB statements that do not conflict with or
contradict GASB guidance.
Accrued revenues include property taxes, sales taxes, transient occupancy taxes, gas
tax, franchise fees, interest and grants. Grant revenues which are received as
reimbursement for specific purposes or projects, are recognized based upon when the
related expenditures are recorded. Grant revenues which are virtually unrestricted as
to purpose and revocable only for failure to meet prescribed compliance requirements
are reflected as revenues at the time of receipt or earlier if availability criterion are
met. Licenses, fmes and penalties and other revenues are recorded as revenues when
received in cash because they are generally not measurable until actually received.
Investment earnings are accrued since they are measurable and available.
Expenditures under the modified accrual basis of accounting are recognized when the
related fund liability is incurred, except for principal and interest on general long-term
obligations which are recognized when due. Liabilities expected to be paid after the
current period are recorded in the General Long-Term Debt Account Group.
Agency-type funds are custodial in nature (assets equal liabilities) and thus do not
involve measurement of results of operations.
16
CITY OF SAN RAFAEL, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
E. BUDGETS AND BUDGETARY ACCOUNTING
The City annually adopts a budget to be effective July 1 for the ensuing fiscal year.
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. The City Manager is authorized to transfer budgeted amounts between
accounts, departments or funds; the Council must approve any increase in the City's
total budget. Several supplemental appropriations were approved during the course of
the year. All unencumbered appropriations lapse at year end.
The City legally adopts budgets for all its governmental funds, except for the East
Francisco boulevard Assessment District and 1997 Reassessment District Debt Service
Funds because the City is only required to make Debt Service payments in the event of
bondholder default. The City also adopts budgets annually for its internal service
funds.
The basis of accounting applied to the budget data presented for the General Fund,
Special Revenue Funds, and the Debt Service Funds is the modified accrual basis of
accounting, and also confonns to generally accepted accounting principles (GAAP).
The Capital Projects Funds budgets are based on a project time frame, rather than a
fiscal year "operating" time frame, reappropriating unused appropriations from year to
year until project completion.
Supplemental appropriations for the fiscal year ended June 30, 1998, were as follows:
Original Supplemental Amended
Fund Budget Appropriations Budget
General Fund $ 28,148,940 $1,467,847 $ 29,616,787
Special Revenue Funds 8,893,506 10,242,116 19,135,622
Debt Service Funds 2,728,927 2,728,927
Encumbrance accounting, under which purchase orders, contracts and other
commitments for expenditures are recorded in order to reserve that portion of the
applicable appropriation, is employed as an extension of the budgetary process.
Encumbrances outstanding at year end are reported as reservations of fund balances
since they do not constitute expenditures or liabilities and are carried forward in the
subsequent year's budget.
17
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t:ITY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
F. CASH AND CASH EQUIVALENTS
Cash and cash equivalents are considered to be all highly liquid investments, with a
maturity of ninety days or less from the date of purchase and includes all cash held in
the City's cash and investment pool.
G. INVESTMENTS
H.
Investments are stated at fair market value. The City adopted Governmental
Accounting Standards Board Statement No. 31 (GASB 31), which requires that the
City's investments be carried at fair market value. Under GASB 31, the City is
required to adjust the carrying value of its investments to reflect their fair market value
at each fiscal year end and include the effects of these adjustments in revenue for that
fiscal year.
GASB 31 applies to all the City's investments, even if they are held to maturity and
redeemed at full face value. Since the City's policy is to hold all investments to
maturity, the fair market value adjustments required by GASB 31 result in accounting
gains or losses (called "recognized" gains or losses) which do not reflect actual sales of
the investments (called "realized gains or losses). Thus, recognized gains or losses on
an investment purchased at par will now reflect changes in its market value at each
succeeding fiscal year end, but these recognized gains or losses will net to zero if the
investment is held to maturity. By following the requirements of GASB 31, the City is
reporting the amount of resources which would actually have been available if it had
been required to liquidate all its investments at any fiscal year end. For further details
of recognized gains or losses, refer to Note 2 and 21.
RESTRICTED CASH AND INVESTMENTS
Certain proceeds of various special assessment bonds, as well as certain resources set
aside for their repayment, are classified as restricted cash and investments on the
balance sheet because their use is limited to debt service by applicable bond covenants.
I. GENERAL FIXED ASSETS
General Fixed assets are recorded as expenditures of the various governmental funds at
the time of purchase and are subsequently capitalized for memorandum purposes in the
General Fixed Asset Account Group. Such assets include land, buildings, building
improvements, furniture and equipment.
Public domain "infrastructure" fixed assets such as roads, streets and sidewalks,
bridges, curbs and gutters, drainage systems, lighting systems and similar assets are
not capitalized. No depreciation is provided on general fixed assets.
18
CITY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
All fixed assets are valued at historical cost or estimated historical cost if actual
historical cost is not available. Donated fixed assets are valued at their estimated fair
market value on the date donated. Fixed assets acquired by lease obligations are
valued at the present value of future lease payments at the inception of the lease.
The collection systems and facilities of the Component Unit are stated at cost less
accumulated depreciation. Assets contributed have been recorded at the fair market
value at the date received. Maintenance and repairs are charged to expense as
incurred. Improvements are capitalized and depreciated over the remaining useful
lives of the related fixed asset. Depreciation is computed using the straight-line
method over the useful lives of the assets.
A summary of the useful lives of the fixed assets of the Component Unit is as follows:
Subsurface lines
Sewage collection facilities
General plant and administrative facilities
50 years
5 -50 years
3 -15 years
J. ACCUMULATED UNPAID VACATION AND SICK LEAVE
The City acco~ts for compensated absences (unpaid vacation, sick leave,
compensatory time and administrative leave) expected to be currently payable as
accrued payroll and benefits liability in the governmental funds to which they relate.
The balance of the earned and vested, but unused, compensated absences expected to
be paid subsequent to June 30, 1998, is recorded in the General Long-Term Debt
Account Group. Sick pay vesting was discontinued for employees hired after 1988.
No expenditure was recorded for these amounts.
K. APPROPRIATION LIMITATIONS
Under Article XIIIB of the California Constitution (the Gann Spending Limitation
Initiative), the City is restricted as to the amount of annual appropriations from
proceeds of taxes. For the fiscal year ended June 30, 1998, based on calculations by
City's management, proceeds of taxes did not exceed related appropriations. Further,
Section 5 of the Article XIIIB allows the City to designate a portion of fund balance
for general contingencies to be used for any purpose.
L. PROPERTY TAX LEVY COLLECTION AND MAXIMUM RATES
The State of California (State) Constitution Article XIII A provides that the combined
maximum property tax rate on any given property may not exceed one percent 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 two percent per year unless the
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LITY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
property is sold, transferred or improved. The State Legislature has detennined the
method of distribution of receipts from a one percent tax levy among the counties,
cities, school districts and other districts.
Marin County assesses, bills for and collects property taxes as follows:
Lien dates
Levy dates
Due dates
Delinquency as of
March 1
July 1
Secured
50% on November 1
50% on February 1
December 10 (for November)
April 10 (for February)
Unsecured
March 1
July 1
July 1
August 31
The tenn "unsecured" refers to taxes on personal property other than real estate, land
and buildings. These taxes are secured by liens on the property being taxed.
Property taxes levied are 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 authorizes
the auditor-controller of the County of Marin to allocate 100% of the secured property
taxes billed, but not yet paid. The County of Marin remits tax monies to the City in
three installments, as follows:
55% remitted on December 15
40% remitted on April 15
5% remitted on June 15
M. TAXPAYER-ASSESSED TAXES ACCRUAL
In accordance with Governmental Accounting Standards Board (GASB) Statement
No. 22, the City recognizes taxpayer-assessed taxes in Governmental Funds as
follows:
Sales Taxes -The City accrues actual advances from the State Board of Equalization
received in July and August of the subsequent fiscal year as these amounts are both
measurable and available to the City to meet its financial obligations for the current
period.
Public Safety Sales Tax (Proposition 172 Sales Tax) -The City accrues July and
August receipts of the public safety sales tax on the basis consistent with the accrual of
regular sales taxes.
20
CITY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
Transient Occupancy Taxes -The City collects transient occupancy taxes on a
quarterly basis. The taxes assessed for the quarter ended June 30 are due by July 31 of
the subsequent fiscal year. The City accrues all transient occupancy taxes for the June
30th quarter received subsequent to the fiscal year end.
Gas Taxes -The City accrues gas taxes assessed for the month ended June 30 as these
amounts are both measurable and available to the City a month after the fiscal year
end.
Franchise Fees -The City collects cable franchise fees on a quarterly basis and refuse
franchise fees on a monthly basis. The taxes assessed for the quarter ended June 30
are due by July 31 of the subsequent fiscal year. The City accrues all franchise fees for
the June 30th period received subsequent to the fiscal year end.
N. CLAIMS AND JUDGMENTS
Claims and judgments that normally would be liquidated with expendable available
resources are accounted for in the Internal Service Funds.
O. "TOTALS (MEMORANDUM ONL Y)" INFORMATION
Columns on the accompanying combined fmancial statements captioned "Totals
(Memorandum Only)" do not present consolidated fmancial information. They are not
necessary for a fair presentation of the fmancial statements, but are presented as
additional analytical data. Interfund elimination's have not been made in the
aggregation of this data.
2. CASH AND INVESTMENTS
Cash balances from all funds are combined and invested to the extent possible pursuant to the
City Council approved Investment Policy and Guidelines and California Government Code. The
earnings from these investments are allocated quarterly to each fund based on an average of
quarterly opening and closing balances of cash and investments. Investments are stated at fair
market value as required by adopted Governmental Accounting Standards Board Statement No.
31 (GASB 31). The market value information is provided as quoted on June 30, 1998.
21
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~lTY OF SAN RAFAEL. CALIFORNlA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
Authorized Investments:
Authorized investments per the City's Investment Policy and Section 53601 of the
California Government Code are:
Mutual Funds Composed Entirely of U.S. Governmental Securities or other
allowable investments
Negotiable Certificates of Deposit
U.S. Government Securities
Bankers Acceptances
Commercial Paper
Medium-Term Corporate Notes
California Local Agency Investment Fund (LAlF)
California Arbitrage Management Program (CAMP)
Repurchase Agreements
Federal Agency Obligations:
Federal Intermediate Credit Bank Debentures (FICB)
Federal Land Bank Bonds (FLB)
Federal Home Loan Bank Notes and Bonds (FHLB)
Federal National Mortgage Association Obligations (FNMA)
Small Business Administration Obligations (SBA)
Government National Mortgage Association Obligations (GNMA)
Tennessee Valley Authority Notes (TV A)
Student Loan Association Notes (SALLIE MAE)
California Local Agency Investment Fund (LAlF):
LAIF is a special fund of the California State Treasury through which local governments
may pool investments. Each city or agency may invest up to $20,000,000 in the fund.
Investments in LAIF are highly liquid, as deposits can be converted to cash within 24
hours.
California Arbitrage Management Program (CAMP):
CAMP is a non-taxable investment fund under provisions of the California Joint Exercise
of Powers Act to provide California Public Agencies with comprehensive investment
management, accounting and arbitrage rebate calculation services for proceeds of tax-
exempt financing.
22
CITY OF SAN RAFAEL, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
Cash and investments at June 30, 1998, excluding the discretely presented component unit,
consisted of the following:
Cash:
Demand accounts at banks
Petty cash
Cash with Fiscal Agent
Investments:
Medium-Term Corporate Notes
Federal Home Loan Bank Notes
Federal National Mortgage Association Obligations
Federal Home Loan Mortgage Corporation
Federal Farm Credit Bank
Investments with Fiscal Agent:
Mutual Funds -Federal Securities
Surety Bonds
Restricted cash on deposit with bank trust
departments -Deferred Compensation
California Local Agency Investment Fund
California Arbitrage Management Program
Total Cash and Investments
The distribution of these monies by funds was as follows:
Funds:
General
Special Revenue
Debt Service
Capital Projects
Internal Service
Expendable Trusts
Agency
TOTAL
23
$ 763,834
6,700
71,678
5,330,807
3,247,884
3,010,000
1,001,250
1,004,550
340,762
631,468
11,496,347
17,356,742
901.152
$ 45.163.174
$ 4,975,183
16,479,887
2,227,511
7,373,715
2,182,998
427,533
11,496,347
$45.163.174
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t.:ITY OF SAN RAFAEL, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
Pooled Deposits/Credit Risk
All pooled certificates of deposit and bank balances are entirely insured or collateralized. The
California Government Code requires California banks and savings and loan associations to
secure an agency's deposits by pledging government securities as collateral. The market value of
the pledged securities must equal at least 110% of an agency's deposits. California law also
allows fmancial institutions to secure local agency deposits by pledging first trust deed mortgage
notes leaving a value of 150% of a local agency's deposits.
The City may waive collateral requirements for deposits which are fully insured up to $100,000
by the Federal Deposit Insurance Corporation (FDIC) or the Federal Savings and Loan Insurance
Corporation (FSLIC).
Three categories of risk level have been developed by the Government Accounting Standards
Board (GASB) Statement No. 3 to disclose the various risk associated with deposits and
investments of public money:
Category 1 -insured or collateralized with securities held by the City or its agent in the
City's name.
Category 2 -collateralized with securities held by the pledging financial institution's trust
department or agent in the City's name.
Category 3 -uncollateraIized or collateralized with securities held by the pledging
fmanciaI institution~s trust department or agent but not in the City's name.
Credit Risk, Carrying Amount and Market Value of Investments
Investments made by the City are classified as to credit risk by three categories, as follows:
Category 1 -insured or registered, or securities held by the City or its agent in the City's
name.
Category 2 -uninsured or unregistered, with securities held by the counterparty's trust
department or agent in the City's name.
Category 3 -uninsured or unregistered, with securities held by the counterparty, or by its
trust department or agent but not in the City's name.
24
CITY OF SAN RAFAEL, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
Investments in pools managed by other governments or in mutual funds are not required to be
categorized pursuant to GASS Statement No.3.
Category: Carrying
__ 1 2 3 Amount
DeQosits
Pooled Deposits
Demand Accounts:
Bank balances $100,000 $ 1,040,117 $ $ 1,140,117
Deposits in transit * 333,819
Outstanding checks * (710,102)
Petty cash * ~700
Book balance 770,534
Deposits with Fiscal Agents
Cash with Marin County 69,264 69,264
Cash in escrow fund 2,414 ---..k414
Total Deposits $100,000 $ 1,040,117 $71,678 $ 842,212
• Not subject to categorization.
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* Not subject to categorization.
(\) Includes deferred compensation plan investment.
(2) At June 30, 1998, market value of LA IF was $31,932,227,970. The City'S proportionate share of the value
is $17,356,742. Included in LAIF's investment portfolio are certain derivative securities or similar
products in the form of structured notes and asset-backed securities totaling $1,335,637,000. LAIF's (and
the City's) exposure to risk (credit, market, or legal) is not currently available.
26
CITY OF SAN RAFAEL, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
3. TAXES RECEIVABLE
Accounts receivable at June 30, 1998, consisted of the following:
Property taxes
Sales taxes
Transient occupancy taxes
Franchise fees
Miscellaneous taxes & fees
TOTAL
4. FIXED ASSETS
General
Fund
$ 111,097
2,119,578
295,719
143,104
38~553
$2,708,051
Capital Projects
Funds
$439,444
$439.444
Totals
$ 550,541
2,119,578
295,719
143,104
38~553
$3.147.495
A summary of changes in general fixed assets for the fiscal year ended June 30, 1998, is as
follows:
Land and buildings
Rolling equipment
Furniture and equipment
Improvements other
than buildings
Investment in general
fixed assets
Balance at
JulYl...1998
$21,873,389
4,903,627
4,752,106
3,286,732
$34,815,854
27
Additions
$ 350,960
783,538
614,895
$1.749,393
Deletions
$
171,577
46,020
$217.597
Balance at
June 30~ 1998
$ 22,224,349
5,515,588
5,320,981
3,286,732
$36.347,650
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L.iTY OF SAN RAFAEL, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
5. LONG· TERM DEBT
The City records long-term debt of governmental funds in the General Long-Term Debt Account
Group. Other governmental fund obligations not expected to be financed with current available
fmancial resources are also recorded in the general long-term debt account group.
Long-term debt outstanding at June 30, 1998, was as follows:
San Rafael Joint Powers Financing
Authority:
1998 Authority Revenue Bonds
San Rafael Redevelopment Agency
Tax Allocation Bonds:
Series 1992
Series 1995
Total Tax Allocation Bonds
Special Assessment Bonds
(with governmental commitment)
Lucas Valley
Peacock Gap Refunding
Mariposa Road Assessments
Total Special Assessment
Bonds (with governmental
commitment)
Note payable
Total Long-term Debt
Interest Authorized Outstanding
Maturi.!Y Rates and Issued June 30~ 1998
2011 4.00 -6.00% 5,250,000 $ 5,230,000
2017
2021
1998
2005
2008
2025
28
3.25 -6.45 18,615,000
4.00 -6.00 8,895,000
5.50 -5.75
4.00 -4.75
4.50 -6.90
8.00
217,393
2,405,000
233,688
15,980,000
8,230,000
24,210,000
4,000
1,590,000
175,000
1,769,000
169,000
$ 31,378,000
LJTY OF SAN RAFAEL, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
Long-tenn debt transactions during the fiscal year ended June 30, 1998 were as follows:
Tax Special Liability Vacation and
Revenue Allocation Assessment Note Lease Sick Leave
Bonds Bonds Bonds Payable Total Debt Purchases Obligations
Balance atJuly I, 1997 $ 5,250,000 $ 24,790,000 $ 1,970,000 $ 169,000 $ 32,179,000 $ 19,576 $ 2,474,288
Additions:
Lease purchases 113,814
Accrued interest 172,247
Vacation and sick leave
obligations (net)
Retirements:
Principal repayments 20,000 580,000 201,000 801,000 30,957
Balance at June 30, 1998 $ 5,230,000 $ 24,210,000 $ 1,769,000 $ 169,000 $ 31,378,000 $102,433 $ 2,646,535
Debt service requirements, including interest, are follows:
Tax Special Liability
Revenue Allocation Assessment Note Lease
Bonds Bonds Bonds Payable Purchases Totals
Year Ending June 30:
1999 $ 671,743 $ 2,057,435 $ 314,565 $ $ 22,763 $ 3,066,506
2000 669,743 2,050,284 317,710 22,763 3,060,500
2001 671,068 2,055,640 314,520 22,763 3,063,991
2002 675,405 2,054,312 310,260 22,763 3,062,740
2003 667,405 2,048,064 309,833 11,381 3,036,683
Thereafter 3,778,050 33,065,801 791,517 642,200 38,277,568
Total $ 7,133,414 $ 43,331,536 $ 2,358,405 $ 642,200 $102,433 $ 53,567,988
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\"'~TY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
A. 1992 AGENCY REFUNDING BOND
On May 1, 1992, the Agency issued Tax Allocation Refunding Bonds in the amount of
$18,615,000. The proceeds of the bonds were used to refund $10,905,000 outstanding
principal of the Agency's Central San Rafael Redevelopment Project Tax Allocation
Bonds, Series 1985 which were issued in May 1985 to fund the construction of new
improvements within the Project Area. The defeased Central San Rafael
Redevelopment Project Tax Allocation Bonds, Series 1985, was fully called during the
fiscal year ended June 30, 1992. Thus, no amount is outstanding at June 30, 1998.
The 1992 Bonds mature annually each December 1 from 1992 to 2017, in amounts
ranging from $340,000 to $1,350,000 and bear interest at rates ranging from 3.25% to
6.45%. Interest is payable semiannually on June 1 and December 1. Bonds maturing
on or after December 1,2002 are subject to the optional redemption prior to maturity,
in whole or in part, in inverse order of maturity on any date on or after December 1,
2002 at a price equal to the principal amount, plus accrued interest on the redemption
date, plus a premium ranging from 0.00% to 2.00%. The Bonds are secured by an
irrevocable pledge of the Tax Revenues and other funds.
The annual requirements to amortize the outstanding bond indebtedness as of June 30,
1998, including interest, are as follows:
Year Ending
June 30, Principal Interest Total
1999 $ 430,000 $ 998,057 $ 1,428,057
2000 450,000 972,407 1,422,407
2001 480,000 945,662 1,425,662
2002 505,000 916,844 1,421,844
2003 535,000 885,629 1,420,629
Thereafter 13,580,000 7,540,588 21,120,588
Total ~ 15,980,000 $12,259,187 $28,239,187
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CITY OF SAN RAFAEL, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
B. 1995 AGENCY BOND
On October 1, 1995, the Agency issued Tax Allocation Bonds in the amount of
$8,895,000. The proceeds of the bonds were used to fmance certain redevelopment
activities of the Agency relating to the Central San Rafael Redevelopment Project
Area. The Bonds mature annually each December 1 from 1995 to 2021, in amounts
ranging from $170,000 to $610,000 and bear interest at rates ranging from 3.50% to
6.00%. Interest is payable semiannually on June 1 and December 1. Bonds maturing
on or after December 1,2003 are subject to optional redemption prior to maturity, in
whole or in part, either in inverse order of maturity or on a pro rata basis among
maturities on any date on or after December 1, 2002 at a price equal to the principal
amount, plus accrued interest on the redemption date, plus a premium ranging from
0.00% to 2.00%. The Bonds are secured, on a parity with the 1992 Bonds, by a pledge
and lien on Tax Revenues and amounts on deposit in certain funds and accounts held
by the Fiscal Agent.
The annual requirements to amortize the outstanding bond indebtedness as of June 30,
1998, including interest, are as follows:
Year Ending
June 30, Principal Interest Total
1999 $ 185,000 $ 445,378 $ 630,378
2000 190,000 437,877 627,877
2001 200,000 429,988 629,988
2002 210,000 421,468 631,468
2003 215,000 412,435 627,435
Thereafter 7,230,000 4,715,212 11,945,212
Total $8,230,000 $6,862,358 $ 15,092,358
C. 1998 AUTHORITY REVENUE BONDS
On January 28, 1998, the San Rafael Joint Powers Financing Authority issued
Revenue Bonds in the amount of $5,250,000 bearing interest at rates from 4.00% to
6.00%. The proceeds of the bonds were used to acquire Reassessment District Bonds
in the amount of $4,965,000 bearing interest at rates from 5.246% to 6.996% issued by
~e City during the fiscal year for the purpose of consolidating and refunding the
previously issued special assessment bonds: Sun Valley Open Space District, Series
No. 1985-3; Kerner Boulevard Refunding Assessment District, Series 1986-1; and
Civic Center -Northgate Refunding Assessment District, Series 1991-1. The 1998
Authority Revenue Bonds mature annually each September 2 from 1998 to 2011, in
amounts ranging from $20,000 to $555,000. Interest is payable semiannually on
31
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\.-lTY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
March and September 2. The Bonds are subject to redemption in advance of maturity
at the option of the City upon payment of the principal and interest accrued thereon to
the date of redemption, plus a redemption premium ranging from 2.00% to 5.00%.
Revenues from the Reassessment District Bonds are utilized to meet debt service
requirements of the Revenue Bonds. The Reassessment District Bonds are secured by
unpaid reassessments confirmed against private property within the applicable
Reassessment District.
The annual requirements to amortize the outstanding bond indebtedness as of June 30,
1998, including interest, are as follows:
Year Ending
June 30, Principal Interest Total
1999 $ 400,000 $ 271,743 $ 671,743
2000 415,000 254,743 669,743
2001 435,000 236,068 671,068
2002 460,000 215,405 675,405
2003 475,000 192,405 667,405
Thereafter 3,045,000 733,050 3,778,050
Total $5,230,000 $1,903,414 $7,133,414
OTHER LONG-TERM OBLIGATIONS
At June 30, 1998, other long-term obligations consisted of a $169,000 promissory note
bearing interest at 8% with principal and accrued interest due and payable in
November 2024. The note was assumed to fmance the purchase of certain property by
the Agency. Accrued interest at June 30, 1998 was $116,763.
SPECIAL ASSESSMENT DEBT
The City is "obligated in some manner" (as defined by GASB Statement No.6) for
special assessment debt (1) because the City must cover delinquencies of special
assessment bonds with other resources until foreclosure proceeds are received or (2)
because the City has been indicated that it may do so.
Long-term debt does not include special assessment debt issued under the 1911 Bond
Act as the City is not liable in any manner for repayment. The County of Marin acts
as the City's agent for property owners in collecting the assessments and forwarding
the collections to bondholders. The 1911 Bonds were fully retired during the fiscal
year ending June 30, 1998.
32
{;ITY OF SAN RAFAEL, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
6. CAPITAL LEASES
The City leases various equipment through capital leasing arrangements in the governmental
funds. The assets and obligations for agreements of the governmental funds are recorded in the
General Fixed Asset Account Group and the General Long-Term Debt Account Group,
respectively. The equipment acquired through the capital leases totaled $212,921 at June 30,
1998.
The future minimum lease obligations as of June 30, 1998, were as follows:
Year Ending
June 30,
1999
2000
2001
2002
2003
Subtotal
Less: Amount representing interest
Present value of minimum lease payments
7. LOANS RECEIVABLE
The City has the following loans receivable at June 30, 1998:
$22,763
22,763
22,763
22,763
11.381
102,433
(13,297)
$89,136
A. $100,000 loan from Marin Housing Development at 5% interest rate; all principal and
interest due January 30, 2005.
B. $100,000 loan from One "H" Street Associates at 5% interest rate; all principal and
interest due May 1, 1999.
C. $303,000 loan from Centertown Associates, Ltd. at 3% interest rate due semi-
annually. The remaining loan receivable at June 30, 1998, was $243,659. The final
payment is due on July 1,2065.
D. $392,000 loan from the City Manager at 5.56% interest rate; principal and interest due
monthly until August 31, 2026. The principal balance outstanding at June 30, 1998,
was $382,220.
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,--lTY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
E. $400,000 loan from the Chief of Police at 5.56% interest rate; principal and interest
due monthly until August 1, 2027. The principal balance outstanding at June 30,
1998, was $393,784.
INTERFUND RECEIVABLES AND PAY ABLES
A summary of due from and due to other funds is as follows:
Fund
Special Revenue Funds:
Childcare Fund
Grants Fund
Park Dedication Fund
Capital Projects Funds:
Bedroom Tax Fund
Park Capital Projects Fund
1985 Capital Project and Administration Fund
Low and Moderate Income Housing Fund
1992 Bonds Capital Project Fund
1995 Bonds Capital Project Fund
Total
Due From Due To
$ 7,654 $
7,654
57,000
34,845
91,845
1,150,199
1,150,199
518,438
518 .. 438
$ 1.768,136 $ 1,768.136
9. FUND EQillTY RESERVES AND DESIGNATIONS
Fund balances and retained earnings consist of reserved and unreserved amounts. Reserved fund
equity represent that portion of a fund equity which is not appropriable for expenditure or is
legally segregated for a specific future use. The remaining portion is unreserved fund equity.
Portions of unreserved fund equity may be designated to indicate tentative plans for fmancial
resource utilization in a future period, such as for general contingencies or capital projects. Such
plans or intent are subject to change, have not been legally authorized and may not result in
expenditures.
34
CITY OF SAN RAFAEL.! CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
A detailed schedule of the fund balances and retained earnings at June 30, 1998, is shown as
follows:
Proprietary Fiduciary
Governmental Fund T~Qes Fund T~~s FundT~Qes
Special Debt Capital Internal Trust and
General Revenue Service Projects Service Agenc~ Totals
Fund balances/Retained earnings:
Reserved:
Encumbrances $ 76,691 $ 553,477 $ $ 5,940 $ $ $ 636,108
Petty cash 3,700 3,000 6,700
Community development 351,123 351,123
Department savings 235,753 235,753
Employee M.O.U. 1,678,264 1,678,264
Loans receivable 776,004 100,000 378,504 1,254,508
Taxes receivable 352,744 352,744
Debt service 2,213,810 2,213,810
Projects 68,838 703,463 4,065,822 4,838,123
~uipmentreplacement 3,000 3,000
Building and structure 20,000 20,000
Facility closure 20,000 20,000
Liability payments 150,000 150,000
Land held for resale 2,004,514 2,004,514
Total Reserved 3,543,117 1,549,940 2,213,810 6,454,780 3,000 13.764.647
Unreserved and Designated:
Library services 30,999 30,999
Public safety 324,681 324,681
Grant projects 321,063 321,063
Parkland 1,016,845 1,016,845
Construction 1,675,458 13,701 4,866,003 424,533 6,979,695
Traffic mitig.ation 8,655,173 8.655,173
Total Unreserved and
Designated 12,024,219 13,701 4,866,003 424,533 17,328,456
Unreserved and
Undesignated 3,119,130 3,298,112 (1,189,801) 260,633 5,488,074
TOTAL FUND
EQUITIES $ 6,662,247 $16.872,271 $ 2,227,511 $10,130,982 $ 260,633 $ 427,533 $ 36,581,177
10. DEFICIT FUND BALANCES
At June 30, 1998, the City has no funds with deficit fund balances.
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L1TY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
1 11. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
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Special Revenue Funds:
Baypoint Lagoon Assessment District
Household Hazmat Facility
Development Services
Library
Public Safety
Debt Service Funds:
Mariposa Assessment District
1995 Agency Bonds
12. EMPLOYEES' RETIREMENT PLAN
Plan Description
Appropriations
$ 24,500
708,785
344,000
45,032
97,595
23,235
632,578
Expenditures Excess
$ 29,681 $ 5,181
734,631 25,846
412,959 68,959
77,692 32,660
106,203 8,608
23,650 415
632,595 17
The City contributes to the Marin County Employees' Retirement Fund (the Fund). All
permanent employees are eligible to participate. The Fund is an agent multiple-employer defined
benefit retirement plan that acts as a common investment and administrative agent for various
local governmental agencies within the County of Marin. The Fund provides retirement,
disability, and death benefits based on the employee's years of service, age and final
compensation. Employees vest after five years of service and are eligible to receive retirement
benefits after 10 years of service and have attained the age of 50, or 30 years of service (20 years
for safety employees) regardless of age. These benefit provisions and all other requirements are
established under the County Employees Retirement Law of 1937. The City's retirement plan is
included in a separately issued report for the Marin County Employees' Retirement Fund, which
can be obtained from William M. Mercer, Incorporated, 3 Embarcadero Center, Suite 1500, San
Francisco, CA 94111-4015.
Funding Policy
The funding policy of the Fund provides for actuarially determined periodic contributions by the
City at rates such that sufficient assets will be available to pay Fund benefits when due. The City
contributed 12.52% of payroll to the Fund for public safety personnel and 7.75% for other
covered employees for the year ended June 30, 1998. The City, due to a collective bargaining
agreement, also has a legal obligation to contribute half of the employees' contribution up to a
maximum of 7% of payroll for safety employees and a maximum of 5% of payroll for all other
employees. Employees have an obligation to contribute the remaining portion.
36
(.;lTY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
Annual Pension Cost
The City's annual pension cost to the Fund for the year ended June 30, 1998 of $2,690,127 was
equal to the city's required and actual contributions. The annual required contribution was
determine as part of the actuarial valuation performed as of June 30, 1996. The employer rates for
normal cost is determined using the Entry Age Normal Actuarial Cost Method, a projected
benefit cost method. It takes into account those benefits that are expected to be earned in the
future as well as those already accrued. The significant assumptions used in the 1996 actuarial
valuation include an assumed rate of return on investment assets of 8%, and annual payroll
increases of 5.50% per year reflecting 4.50% for inflation and approximately 1.00% for merit and
longevity. The actuarial value of assets was determined using techniques that smooth the effects
of short term volatility in the market value of investments over a period of five years. The Fund
also uses the level percentage of payroll method to amortize the unfunded actuarial liability. It is
assumed that payroll increases at an annual inflation rate of 4.5% over the amortization period.
As of June 30, 1996 ten years are left in the amortization period.
Three-Year Historical Trend Information
Fiscal Year Annual Pension Cost Percentage of Net Pension
EndinL.. (APC) APC Contributed Obligation
6/30/96 $ 2,989,846 100% $ 0
6/30/97 2,949,871 100% 0
6/30/98 2,690,127 100% 0
Actuarial
Actuarial Actuarial Accrued Unfunded UAAL
Valuation Value Liability (AAL) -AAL Funded Covered Asa%of
Date of Assets ~ntryAge (UAAL) Ratio Payroll Payroll
6/30/94 $ 79,506,000 $ 88,849,000 $ 9,343,000 89% $ 13,945,000 67%
6/30/96 101,331,000 101,159,000 (172,000) 100% 15,403,000 (1)%
6/30/97 114,506,000 110,198,000 (4,308,000) 104% 16,928,000 (25.3)%
37
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,-,lTY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
13. PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION
RETIREMENT PLAN)
The City contributes to the Public Agency Retirement System (PARS), which is 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 account are to be determined instead of specifying the
amount of benefits the individual is to receive.
Under a defmed contribution pension plan, the benefits a participant will receive depend solely on
the amount contributed to the participant's account, the returns earned on investments on those
contributions, and forfeitures of other participant's benefits that may be allocated to such
participant's account.
As established by the plan, all eligible employees of the City will become a participant in the plan
from the date 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. (See Note 12).
Contributiops made by an employee and the employer vest immediately. 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.
During the year, the City contributed $79,585 and employees contributed $79,585. The total
covered payroll of employees participating in the plan for the year ended June 30, 1998, was
$2,122,268. The total payroll for the year was $22,727,965.
14. POST-EMPLOYMENT HEALTH CARE BENEFITS
The City provides certain health care benefits for retired employees and their spouses. The
benefit provisions were established under the authority of the 1937 Act, Section 31450, et. seq. of
the Government Code. Substantially all of the City's employees may become eligible for these
benefits if they are receiving a retirement benefit from the Marin County Employees' Retirement
Fund within 120 days of retirement from City employment. At June 30, 1998, 164 retirees
received post-employment health care benefits. Those expenditures are reduced by
reimbursements from the Marin County Retirement Office of the annual amount set forth in the
County Retirement Rules and Regulations 1937 Act as amended and in Sections 31450 et. seq. of
the Government Code. The cost of retiree health care benefits is recognized as an expenditure as
claims are paid. For the fiscal year ended June 30, 1998, those costs totaled $257,685.
38
CITY OF SAN RAFAEL, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
15. DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all City employees, permits them to defer a
portion of their salary until future years. The deferred compensation is not available to
employees until termination, retirement, death, or unforeseeable emergency.
All amounts of comp~nsation deferred under the plan, all property and rights purchased with
those amounts, and all income attributable to those amounts, property, or rights are (until paid or
made available to the employee or other beneficiary) solety the property and rights of the City
(without being restricted to the provisions of benefits under the plan), subject only to the claims
of the City's general creditors. Participants' rights under the plan are equal to those of general
creditors of the City in an amount equal to the fair market value of the deferred account for each
participant.
The City has no liability for losses under the plan but does have the fiduciary duty of due care
that would be required of an ordinary prudent investor. The City believes that it is unlikely that it
will use the assets to satisfy the claims of general creditors in the future.
The City is in the process of transferring the deferred compensation plan to a trust account and
will adopt Government Accounting Standards Board (GASB) Statement No. 32 in the fiscal year
ending June 30, 1999.
16. SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City's Enterprise Funds comprises only of the discretely presented component unit, San
Rafael Sanitation District. Segment information for the fiscal year ended June 30, 1998, is as
follows:
Types of goods or services provided Wastewater transmission
Operating revenues
Depreciation and amortization expense
Operating income
Tax revenues
Non-operating revenues (expenses)
Net income
Fixed asset additions
Net working capital
Total Assets
Long-term obligations payable from operating revenues
Total Fund Equity
39
$ 4,649,794
743,427
449,252
381,497
168,672
617,924
762,550
696,505
24,333,167
4,053,313
19,880,142
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L1TY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
17. RISK MANAGEMENT
The City 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 disasters. The City is self-insured
up to a maximum of $500,000 for each general liability claim, $250,000 for each workers'
compensation claim, and $25,000 for each property damage claim. The City participates in a
public agency risk sharing pool (California Joint Powers Risk Management Authority) for general
liability claims in excess of the self-insured amounts up to $9,500,000. The City purchases
commercial insurance for workers' compensation claims in excess of the self-insured amount up
to $9,750,000. The City also purchases commercial insurance for property damage claims in
excess of the self-insured amount up to $28,853,000. The City accounts for and fmances its
uninsured risks of loss in the Internal Service Funds. The City had established a claims liability
of$1,908,741 at June 30, 1998, based on the requirement of Governmental Accounting Standards
Board Statement No. 10, which requires that a liability for claims be reported if information prior
to the issuance of the fmancial statements indicates that it is probable that a liability has been
incurred at the date of the financial statements and the amount of the loss can be reasonably
estimated. Settled claims have not exceeded this coverage in any of the past three fiscal years.
Changes in the general and workers' compensation claims liabilities for the fiscal years ended
June 30, 1996, 1997 and 1998 are as follows:
Balance at Current Year Balance at
General Beginning of Claims & Changes Claim End of
Liability Fiscal Year In Estimates Payments Fiscal Year
1995-96 $ 453,397 $ 563,376 $ (416,249) $ 600,524
1996-97 600,524 321,747 (193,159) 729,112
1997-98 729,112 135,381 (17,775) 805,634
Worker's Balance at Current Year Balance at
Compensation Beginning of Claims & Changes Claim End of
Liability Fiscal Year In Estimates Payments Fiscal Year
1995-96 $ 768,488 $ 920,005 $ (318,122) $ 1,370,371
1996-97 1,370,371 211,743 (362,038) 1,220,076
1997-98 1,220,076 421,352 (108,584) 1,103,107
40
CITY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
The California Joint Powers Risk Management Authority which began operations in February
1986, is a governmental self-insurance cooperative organized under a joint power agreement
consisting of 23 members which represent over 120 public agencies in California. The Risk
Management Authority pools self-insurance losses of charter and associate members, develops
risk management programs, and provides for administration of pooled coverage claims. The City
paid $212,219 in premiums to the Risk Management Authority during the fiscal year ended June
30, 1998. Condensed [mancial information for the California Joint Powers Risk Management
Authority for the fiscal year ended June 30, 1998 is as follows:
Assets
Liabilities
Equity:
Retained earnings
Total Liabilities and Equity
Revenues
Expenses
Refunds to members
Net increase in retained earnings
18. JOINT POWER AGREEMENTS
$55,507,730
$26,611,402
28,896,328
$ 55,507,730
$14,321,822
(3,766,467)
(5,324,172)
$ 5.231.138
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 entities exercise full powers and authorities within the scope of the related Joint
Powers Agreement 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. Obligations and liabilities
of the separate entities are not those of the City.
Joint Ventures:
The Marin County Integrated On-Line Library System (the System) was formed to provide for
the procurement, ownership, operation, maintenance, and governance of an integrated on-line
library system that is jointly owned and operated by the Cities of San Rafael, Mill Valley,
Sausalito, and the County of Marin. The Governing Board of the System consists of the library
director or designated alternate of each partidpant in the System. In accordance with the cost
sharing formula developed by the library directors of the participants, the City's share of the
acquisition cost in" the amount of $108,007 represents 18.98% of ownership in the System.
Operating costs for the System are also shared by each participant by applying the cost sharing
the formula. Financial Statements of the System can be obtained at the County Librarian, Marin
County Free Library, Civic Center, Administration Building, San Rafael, CA 94903.
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~fTY OF SAN RAFAEL, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
The Marin Street Light Acquisition Joint Powers Authority (MSLAJPA) was formed by the
County of Marin and twelve local agencies to acquire street light facilities, operate the facilities
during the pendency of an eminent domain action against PG&E and subsequent transfer of the
facilities to the individual local agencies. The Governing Board consists of five members from
the participating agencies. Each of the local agencies' share of contribution was based on the
number of street lights to be acquired in the local agencies' individual jurisdiction in relation to
the total number of street lights to be acquired by the MSLAJP A.
The Marin Emergency Radio Authority (the Authority) was formed by local agencies within
Marin County to own and operate the public safety and emergency radio system. The Governing
Board consists of one representative from each Member. Initially, the costs of system
acquisition, maintenance, and operations will be divided on a pro rata share based on an agreed
upon formula established by a majority of the governing board. Each Member will advance a
deposit amount of money anticipated to be needed for the first twelve months of operations.
Financial information may be obtained at the County of Marin, Assistant County Administrator,
Civic Center, Room 325, San Rafael, CA 94902.
Jointly Governed Organizations:
The Countywide Planning Agency was established by the County of Marin and ten local cities 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 Countywide Planning
Agency consists of one member of the County Board of Supervisors and one member of the City
Council of each participating city.
The Marin County Cable Rate Regulation Joint Powers Authority was established to regulate the
rates for cable television service and equipment and to advise the participants in their exercise of
their license authority. The Governing Board of the Marin County Cable Rate Regulation Joint
Powers Authority consists of one member from each of the seven participating local cities.
The Marin County Major Crimes Task Force was established by twelve local law enforcement
agencies to provide funding and policy direction of a unit of peace officers and support personnel
to detect, apprehend and prosecute major crimes including highly mobile criminal narcotic
traffickers thus reducing major narcotic activity and combating its influence throughout the
County. The Governing Board of the Marin County Major Crimes Task Force consists of nine
members, one city council member, one member of the Marin County Board of Supervisors, two
city managers, two chief law enforcement officials, two residents of Marin County, and the Marin
County Administrator.
The Marin County Hazardous and Solid Waste Joint Powers Authority was established by the
County, local cities and waste franchising districts to fmance, prepare and implement source
reduction and recycling elements on a county-wide integrated waste management plan as required
by State Assembly Bill 939.
42
CITY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
19. LITIGATION
There are several pending lawsuits in which the City is involved. The City's attorneys estimate
that the potential claims against the City not covered by insurance resulting from such litigation
would not materially affect the fmancial statements of the City.
20. RELATED PARTY TRANSACTION
On August 1, 1996, the City made a 30-year loan to the City Manager in the amount of $392,000,
at an interest rate equivalent to Local Agency Investment Fund interest rate, for the purchase of a
home. The loan is secured by the Deed of Trust.
On August 1, 1997, the City made a 30-year loan to the Chief of Police in the amount of
$400,000, at an interest rate equivalent to Local· Agency Investment Fund interest rate, for the
purchase of a home. The loan is secured by the Deed of Trust.
21. FUND BALANCE. JULY 1.1997 -RESTATED
22.
Government Accounting Standards Board Statement No. 31 (GASB 31) requires the City to
restate June 30, 1997 fund balances for fair market value adjustments on investments. As a
result, the City's fund balance at beginning of year was restated as follows:
Originally
Reported Adjustments Restated
General Fund $ 5,948,519 $ 4,519 $ 5,953,038
Special Revenue Funds 14,333,042 9,945 14,342,987
Debt Service Funds 1,703,819 1,703,819
Capital Projects Funds 17,133,837 12,112 17,145,949
Expendable Trust Funds 452,138 452,183
YEAR 2000
The City's Information Services Committee formed a sub-committee to conduct a comprehensive
review of its computer systems and equipment to identify systems that could be affected the
"Year 2000" issue and is in the process of developing an implementation plan to resolve the
issue.-The Year 2000 problem is the result of computer programs being written using two digits
rather than four to defme the application year. Any of the City's programs that have time-
sensitive software may recognize a date using "00" as the year 1900 rather than the year 2000.
This could result in major system failure or miscalculations if not appropriately addressed.
43
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LITY OF SAN RAFAEL. CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998
The City is in the process of modifying its BRC application programs which are accessed by
Police' CAD and RMS, Financial Applications and the Recreation Departments. The costs
incurred during the year was minimal and no significant additional costs are expected in the
future. The City presently believes that, with modification to existing software, the Year 2000
problem will not pose significant operational problems for the City's computer systems as so
modified and converted.
44
NOll. VWlIOJlNI AlIV l.N~W~'1ddflS
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ASSETS
Cash and investments
Accounts receivable
Grants receivable
Loans receivable
Due from other funds
TOTAL ASSETS
CITY OF SAN RAFAEL. CALIFORNIA
SPECIAL REVENUE FUNDS
COMB~GBALANCESHEET
JUNE 30, 1998
RECREATION
REVOLVING
$115,004
~115,004
BAYPOINT
LAGOONS
ASSESSMENT
DISTRICT
$ 14,696
~ 14,696
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 33,455 $
Due to other funds
Deferred revenue
Total Liabilities 33,455
Fund Balances:
Reserved for:
Encumbrances
Loans
Equipment Replacement
Building and Structure
Facility Closure
Projects
Liability payments
Unreserved-Designated for:
Library services
Public safety
Grant projects
Parkland
Construction 14,696
Traffic Mitigation
Unreserved-Undesignated 81,549
Total Fund Balances 81,549 14,696
TOTAL LIABILITIES
AND FUND BALANCES $115,004 ~ 14,696
4S
PARKING
SERVICES
$ 131,018
9,879
~ 140,897
$ 2,092
2,092
138,805
138,805
~ 140,897
GAS
TAX
$1,284,175
3,287
~1,287,462
$ 2,087
2,087
1,285,375
1,285,375
~1,287,462
EQUIPMENT
CIllLDCARE REPLACEMENT
$ 474,417 $2,238,302
7 .. 654
$482,071 $2,238,302
$ 23,171 $ 37,267
23 .. 171 37 .. 267
68,840 459,808
390 .. 060 -1.741.227
458 .. 900 2,201.035
$ 482,071 $2,238.302
STREET
MAINTENANCE
& CLEANING
$ 572,750
$ 572,750
$ 3,212
3 .. 212
24,089
545 .. 449
569 .. 538
$ 572,750
HOUSEHOLD
SEWER HAZMAT
MAINTENANCE FACILITY
$ 6,962
6,442
L.ll..404
$ 250
250
13 .. 154
13 .. 154
L.ll..404
46
$ 321,489
154,288
$ 475,777
$140,042
140 .. 042
3,000
20,000
20,000
292,735
335 .. 735
$475,777
LOCH LOMOND
ASSESSMENT
DISTRICT
$ 170,943
$ 170,943
$
95,797
150,000
(74,854)
170 .. 943
$ 170,943
(C~ntinued)
,
1
1
1
1 ,
I
J
t..:ITY OF SAN RAFAEL, CALIFORNIA
ASSETS
Cash and investments
Accounts receivable
Grants receivable
Loans receivable
Due from other funds
TOTAL ASSETS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
JUNE 30, 1998
PUBLIC
LIBRARY SAFETY
$132,620 $ 22,490
18,572 16,802
$151.192 $ 39,292
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 3,193 $ 7,346
Due to other funds
Deferred revenue -.llL000
Total Liabilities 120.193 7,346
Fund Balances:
Reserved for:
Encumbrances
Loans
Equipment Replacement
Building and Structure
Facility Closure
Projects
Liability payments
Unreserved-Designated for:
Library services 30,999
Public safety 31,946
Grant projects
Parkland
Construction
Traffic Mitigation
Unreserved-Undesignated
Total Fund Balances 30,999 31,946
TOTAL LIABILITIES
AND FUND BALANCES ~ 151,192 ~ 39,292
47
STORMWATER
$ 401,470
$ 401,470
$ 26,083
26,083
375,387
375,387
~ 401,470
TRAFFIC AND
HOUSING
MITIGATION
$8,367,952
335,515
100,000
$8,803.467
$ 47,554
47,554
740
100,000
8,655,173
8,755,913
$8,803.467
DEVELOPMENT
SERVICES
$ 1,092,864
530
S 1.093.394
$ 23,006
23 .. 006
607,666
462.722
1.070388
S 1.093.394
GRANTS
$ 172,890
176,053
9,782
S 358.725
$ 10,804
7,654
19s 204
37s 662
321,063
321.063
S 358.725
PARKLAND
DEDICATION
$ 959,845
21,726
57,000
S 1.038.571
$
21 s726
21 s726
_ 1,016,845
1.016,845
S 1.038.571
48
TOTAL
$ 16,479,887
743,094
9,782
100,000
64,654
S 17.397,417
$ 359,562
7,654
157s 930
525 • .146
553,477
100,000
3,000
20,000
20,000
703,463
150,000
30,999
324,681
321,063
1,016,845
1,675,458
8,655,173
3.298.112
16.872.271
S 17.397,417
(Concluded)
1
I
I
j
J
J
j
CITY OF SAN RAFAEL. CALIFORNIA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
REVENUES:
Taxes and special assessments
Licenses and permits
Fines and forfeitures
Uses of money and property
Intergovernmental
Charges for current services
Other revenues
Total Revenues
EXPENDITURES:
General governmental
Public safety
Public works and parks
Community development
Culture and recreation
Capital Outlay
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating transfers -In
Operating transfers -Out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCy) OF REVENUES
OVER EXPENDITURES AND
OTHER SOURCES (USES)
FUND BALANCES AT BEGINNING OF
YEAR -~STATED
FUND BALANCES AT END OF YEAR
BAYPOINT
LAGOONS
RECREA nON ASSESSMENT PARKING
REVOLVING DISTRICT SERVICES
$
801,619
5~249
806~868
1,408,172
2~255
1,410,427
(603,559)
685,108
685~108
81,549
.L..n.549
49
$ 27,290
27~290
29,681
29~681
(2,391)
(2,391)
17~087
lli696
$
130,999
6,230
593,442
!lli
730,578
128,924
462,536
77,232
668,692
61,886
(65,001)
(65,001)
(3,115)
141~920
~805
$
GAS
TAX
57,738
1,039,379
133
1,097,250
156~432
156,432
940,818
(350,000)
(350,000)
590,818
694~558
$1,285,376
STREET HOUSEHOLD LOCH LOMOND
EQUIPMENT MAINTENANCE & SEWER HAZMAT ASSESSMENT
ClllLDCARE REPLACEMENT CLEANING MAINTENANCE FACILITY DISTRICT
$ $ $ $ $ $ 59,605
17,583
20,284 102,201 10,889 12,000 23,956
18,054 22,075 4,831 88,593
2,007,024 700,594 637,920
719,171 12999 382 26A07
220452362 821 2372 342963 717,807 794,459 59,605
726,441
995,777 641,297 54
1,807,832
11 2381 806,646 95A27 8,190
1.819,213 8062646 1.091.204 641.297 7342631 54
226,149 14,726 (1.056,241) 76.510 592828 59.551
1,625,779
(63,356)
1,625 2779 (63,356)
226,149 14,726 569,538 13,154 59,828 59,551
232,,751 22 186,309 275,,907 111,,392
$ 458,900 $22 201 ,035 $ 569.538 .Ll1.154 t.1li.735 $ 170,943
(Continued)
50
1 'VtTY OF SAN RAF AELl CALIFORNlA
,
j SPECIAL REVENUE FUNDS
1
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
TRAFFIC AND
I PUBLIC HOUSING
LIBRARY SAFETY STORMWATER MITIGATION
~I REVENUES:
Taxes and special assessments $ $ $ $
Licenses and permits
J
Fines and forfeitures 2,115
Uses of money and property 30,915 1,023 14,298 438,931
Intergovernmental 22,417 80,501 365,000
Charges for current services 4,887 5,496 655,031 753,455
Other revenues 10,024 6,418 255,538
Total Revenues 68,243 93,438 1,036,444 1,447,924
EXPENDITURES:
Current:
General governmental
Public safety 31,074
Public works and parks 767,469
Community development
Culture and recreation 77,693
Capital Outlay 75,130 1,131,083 281,995
Total Expenditures 77,693 106,204 1,898,552 281,995
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (9,450) (12,766) (862,108) 1,165,929
OTHER FINANCING SOURCES (USES):'
Operating transfers -In 4 556,070
Operating transfers -Out
Total Other Financing Sources (Uses) 4 556,070
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES AND
OTHER SOURCES (USES) (9,446) (12,766) (306,038) 1,165,929
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED 40,445 44,712 681,425 7589,984
FUND BALANCES AT END OF YEAR ~ 30,999 ~ 31,946 ~ 375,387 ~8,755,913
51
DEVELOPMENT PARKLAND
SERVICES GRANTS DEDICATION TOTAL
$ $ $ $ 86,895
148,582
2,115
59,912 8,395 50,112 836,884
504,685 2,145,535
357,708 56,220 6,573,396
192.219 29.119 162.933 1.409.499
609.839 598.419 213.045 11.202.906
128,924
259,801 1,479,852
167,027 10,515 2,689,052
412,959 412,959
219,321 3,513,018
18.920 350.960 2.938.419
412.959 665.069 361.475 11.162.224
196.880 (66.650) (148.430) 40.682
120,000 2,986,961
(4) (20.000) (498.361)
119.996 (20.000) 2.488.600
196,880 53,346 (168,430) 2,529,282
873 .. 507 267 .. 717 1.185.275 14.342.989
$ 1.070.387 $ 321.063 $ 1.016.845 $ 16.872.271
52
LITY OF SAN RAFAEL! CALIFORNIA
RECREATION REVOLVING FUND
I STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
1 FOR THE FISCAL YEAR ENDED JUNE 30, 1998
VARIANCE
1 FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
REVENUES:
Charges for current services $752,192 $ 801,619 $ 49,427
Other revenues 2,600 5,249 2,649
Total Revenues 754,792 806,868 52,076
EXPENDITURES:
Culture and recreation 1,458,565 1,408,172 50,393
Capital outlay 4,000 2,255 1.745
Total Expenditures 1,462,565 1,410,427 52.138
EXCESS (DEFICIENCy) OF
REVENUES OVER (UNDER)
EXPENDITURES (707,773) (603,559) 104,214
I OTHER FINANCING SOURCES (USES):
Operating transfers -In 685,000 685.108 108
J
Total Other Financing Sources
(Uses) 685,000 685.108 108
EXCESS (DEFICIENCy) OF REVENUES
OVER EXPENDITURES
AND OTHER SOURCES (USES) $ (22,773) 81,549 $104.322
FUND BALANCES AT BEGINNING OF
1
YEAR -RESTATED
FUND BALANCES AT END OF YEAR L.ll.549
J
53
CITY OF SAN RAFAEL. CALIFORNIA
BA YPOINT LAGOONS ASSESSMENT DISTRICT FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
REVENUES:
Taxes and special assessments
Total Revenues
EXPENDITURES:
Public works and parks
Total Expenditures
EXCESS (DEFICIENCy) OF
REVENUES OVER
EXPENDITURES
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED
FUND BALANCES AT END OF YEAR
~576
27,..576
24 .. 500
24 .. 500
$ 3,076
54
UL290 $ (286)
27 .. 290 (286)
29 .. 681 (5.181)
29 .. 681 (5.181)
(2,391) $ (5.467)
17,087
$ 14,696
LITY OF SAN RAFAEL.! CALIFORNIA
PARKING SERVICES FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
VARIANCE
~ 1 FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
REVENUES:
Licenses and permits $636,575 $130,999 $ (505,576)
Uses of money and property 14,000 6,230 (7,770)
Charges for current services 596,442 593,442
Other revenue (93) (93)
Total Revenues 650,575 730,578 80,003
EXPENDITURES:
General government 197,524 128,924 68,600
Public safety 464,261 462,536 1,725
Public works and parks 80,548 77,232 3,316
Total Expenditures 742,333 668,692 73,641
EXCESS (DEFICIENCy) OF
REVENUES OVER
EXPENDITURES (91~758) 61~886 153~644
J OTHER FINANCING SOURCES (USES):
Operating transfers -Out (65,00n (65,00n
Total Other Financing Sources
(Uses) (65,00n (65,00n
EXCESS (DEFICIENCy) OF REVENUES
OVER EXPENDITURES
AND OTHER SOURCES (USES) $(156,759) (3,115) ~644
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED 141~920
FUND BALANCES AT END OF YEAR ~805
S5
CITY OF SAN RAFAEL" CALIFORNIA
GAS TAX FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
VARIANCE r 1
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
REVENUES:
Uses of money and property $ 36,000 $ 57,738 $ 21,738
Intergovernmental 1,159,853 1,039,379 (120,474)
Other revenue 133 133
Total Revenues 1,195,853 1.097,250 (98,603)
EXPENDITURES:
Current:
Public works and parks 1.228,371 156,432 1,071,939
Total Expenditures 1.228,371 156,432 1.071.939
EXCESS (DEFICIENCy) OF
REVENUES OVER
EXPENDITURES (32.518) 940,818 973.336
OTHER FINANCING SOURCES (USES):
Operating transfers -Out (350,000) (350,000)
Total Other Financing Sources
(Uses) (350,000) (350,000)
EXCESS (DEFICIENCy) OF REVENUES
OVER EXPENDITURES
AND OTHER SOURCES (USES) $ (382,518) 590,818 $ 973.336
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED 694 .. 558
FUND BALANCES AT END OF YEAR $1.285,376
56
L~TY OF SAN RAFAELl CALIFORNlA
CHILDCARE FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
REVENUES:
Uses of money and property $ 4,000 $ 20,284 $ 16,284
Intergovernrnenuu 10,400 18,054 7,654
Charges for current services 1,900,060 2,007,024 106,964
Touu Revenues 1,914,460 2,045,362 130,902
EXPENDITURES:
Culture and recreation 1,803,252 1,807,832 (4,580)
Capiuu Outlay 85,700 11,381 74,319
Touu Expenditures 1,888,952 1.819,213 69,739
EXCESS (DEFICIENCy) OF
REVENUES OVER
EXPENDITURES 25,508 226.149 200,641
OTHER FINANCING SOURCES (USES):
Operating transfers -In 6,000 (6,000) .
J Touu Other Financing Sources
(Uses) 6,000 (6,000)
] EXCESS (DEFICIENCy) OF REVENUES
OVER EXPENDITURES
j AND OTHER SOURCES (USES) $ 31,508 226,149 il2.4..641
FUND BALANCES AT BEGINNING OF
) YEAR -RESTATED 232,751
] FUND BALANCES AT END OF YEAR $ 458,900
57
CITY OF SAN RAFAEL. CALIFORNIA
EQUIPMENT REPLACEMENT FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
REVENUES:
Uses of money and property
Other revenue
Total Revenues
EXPENDITURES:
Capital outlay
Total Expenditures
EXCESS (DEFICIENCy) OF
REVENUES OVER
EXPENDITURES
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED
FUND BALANCES AT END OF YEAR
$ 110,000 $ 102,201
716,056 719,171
826,056 821.372
1.523,751 806 .. 646
1.523,751 806 .. 646
$ (697,695) 14,726
2,186.309
$2,201.035
58
$ (7,799)
3,115
(4,684)
717 .. 105
717 .. 105
$712.421
1
J
1
J
I ,--lTv OF SAN RAFAEL, CALIFORNiA
STREET MAINTENANCE & CLEANING FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
BUDGET ACTUAL
REVENUES:
Uses of money and property $ $ 10,889
Intergovernmental 22,075
Other revenues 1.999
Total Revenues 34,963
EXPENDITURES:
Public works and parks 930,002 995,777
Culture & recreation
Capital outlay 975,000 95,427
Total Expenditures 1,905,002 1,091.204
EXCESS (DEFICIENCy) OF
REVENUES OVER
EXPENDITURES (1,905,002) (1,056,241)
OTHER FINANCING SOURCES (USES):
Operating transfers -In 1.625.779 1.625.779
Total Other Financing Sources
(Uses) 1.625.779 1.625.779
EXCESS (DEFICIENCy) OF REVENUES
OVER EXPENDITURES
AND OTHER SOURCES (USES) $ (279.223) 569,538
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED
FUND BALANCES AT END OF YEAR $569538
59
VARIANCE
FAVORABLE
(UNFAVORABLE)
$ 10,889
22,075
1.999
34,963
(65,775)
879,573
813,798
848,761
$ 848.761
CITY OF SAN RAFAEL, CALIFORNIA
SEWER MAINTENANCE FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
REVENUES:
Uses of money and property
Intergovernmental
Charges for current services
Other revenues
Total Revenues
EXPENDITURES:
Public works and parks
Total Expenditures
EXCESS (DEFICIENCy) OF
REVENUES OVER
EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating transfers -Out
Total Other Financing Sources
(Uses)
EXCESS (DEFICIENCy) OF REVENUES
OVER EXPENDITURES
AND OTHER SOURCES (USES)
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED
FUND BALANCES AT END OF YEAR
$
689,984
689,984
783 .. 484
783 .. 484
(84,500)
(63356)
(63356)
$047,856)
60
$ 12,000 $ 12,000
4,831 4,831
700,594 1,610
382 382
717,807 18,823
641 .. 297 142 .. 187
641 .. 297 142 .. 187
(76.510) 161 .. 010
(63.356)
(63356)
13,154 $ 161.010
$ 13.154
LITY OF SAN RAFAEL1 CALIFORNlA
HOUSEHOLD HAZMAT FACILITY FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
VARIANCE
1 FAVORABLE
BUDGET ACTUAL CUNF A VORABLE)
REVENUES:
Licenses and pennits $ $ 17,583 $ 17,583
Uses of money and property 10,000 23,956 13,956
Intergovernmental 37,354 88,593 51,239
Charges for current services 644,471 637,920 (6,551)
1 Other revenues 37,000 26,407 (10.593)
Total Revenues 728,825 794,459 65,634
EXPENDITURES:
Public safety 676,181 726,441 (50,260)
Capital outlay 32,604 8,190 24,414
Total Expenditures 708,785 734,631 (25,846)
EXCESS (DEFICIENCy) OF
REVENUES OVER EXPENDITURES
AND OTHER SOURCES (USES) $ 20,040 59,828 Ll2.,788
FUND BALANCES AT BEGINNING OF
j YEAR -RESTATED 275,907
FUND BALANCES AT END OF YEAR ~735
1
-
61
CITY OF SAN RAFAEL. CALIFORNIA
LOCH LOMOND ASSESSMENT DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
BUDGET ACTUAL
REVENUES:
Taxes and special assessments $ 58,800 $ 59,605
Total Revenues 58,800 59,605
EXPENDITURES:
Public works and parks 5,000 54
Total Expenditures 5,000 54
EXCESS (DEFICIENCy) OF
REVENUES OVER EXPENDITURES
AND OTHER SOURCES (USES) $ 53,800 59.551
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED 111~392
FUND BALANCES AT END OF YEAR ~943
62
VARIANCE
FAVORABLE
(UNFAVORABLE)
$ 805
805
4,946
4,946
L..i.751
J
J
I
~
I
~
J
1
1
}
J
1
}
,
1
1
J
}
I
LITY OF SAN RAFAEL. CALIFORNIA
LIBRARY FUND
STATEMENT OF REVENUES, EXPENDITIJRES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
REVENUES:
Uses of money and property
Intergovernmental
Charges for current services
Other revenues
Total Revenues
EXPENDITURES:
Culture and recreation
Capital outlay
Total Expenditures
EXCESS (DEFICIENCy) OF
REVENUES OVER
EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating transfers -In
Total Other Financing Sources
(Uses)
EXCESS (DEFICIENCy) OF REVENUES
OVER EXPENDITURES
AND OTHER SOURCES (USES)
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED
FUND BALANCES AT END OF YEAR
$ 28,900
7~500
36 .. 400
35,032
10 .. 000
45 .. 032
(8,632)
$ (8.632)
63
$30,915
22,417
4,887
10,024
68.243
77,693
77 .. 693
(9.450)
4
4
(9,446)
40.445
$30.999
$ 2,015
22,417
4,887
2.524
31.843
(42,661)
10 .. 000
(32,661)
illID
4
4
$ (814)
LITY OF SAN RAFAEL, CALIFORNlA
PUBLIC SAFETY FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
REVENUES:
Uses of money and property
Intergovernmental
Charges for current services
Other revenues
Total Revenues
EXPENDITURES:
Public safety
Capital outlay
Total Expenditures
EXCESS (DEFICIENCy) OF
REVENUES OVER
EXPENDITURES AND
OTHER SOURCES (USES)
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED
FUND BALANCES AT END OF YEAR
BUDGET
$ 800
60,000
9,700
50
70,550
42,228
55.367
97,595
$(27,045)
64
ACTUAL
$ 1,023
80,501
5,496
6A18
93.438
31,074
75.130
106,204
(12,766)
44,712
$ 31.946
VARIANCE
FAVORABLE
(UNFAVORABLE)
$ 223
20,501
(4,204)
6.368
22,888
11,154
(19.763)
(8,609)
$14.279
I
LJTY OF SAN RAFAEL! CALIFORNIA
STORMWATERFUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
1 REVENUES:
Fines and forfeitures $ $ 2,115 $ 2,115
Uses of money and property 8,400 14,298 5,898
Intergovernmental 363,559 365,000 1,441
Charges for current services 655,270 655,031 (239)
Other revenue
Total Revenues 1,027,229 1,036,444 9,215
EXPENDITURES:
Public works and parks 756,944 767,469 (10,525)
Capital outlay 1,382,468 1.131,083 251.385
Total Expenditures 2.139,412 1,898,552 240,860
EXCESS (DEFICIENCy) OF
REVENUES OVER
EXPENDITURES (1.112.183) (862,108) 250,075
1 OTHER FINANCING SOURCES (USES)
Operating transfers -In 556,070 556,070
.;
TOTAL OTHER FINANCING
SOURCES (USES) 556,070 556,070
EXCESS (DEFICIENCy) OF REVENUES
OVER EXPENDITURES AND
OTHER SOURCES (USES) $ (556.113) (306,038) $250,075
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED 681,425
FUND BALANCES AT END OF YEAR $ 375,387
65
CITY OF SAN RAFAEL, CALIFORNIA
TRAFFIC AND HOUSING MITIGATION FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (CASH BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
REVENUES:
Uses of money and property
Charges for current services
Other revenues
Total Revenues
EXPENDITURES:
Capital outlay
Total Expenditures
EXCESS (DEFICIENCy) OF
REVENUES OVER
EXPENDITURES
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED
FUND BALANCES AT END OF YEAR
$ 401,000 $ 438,931
753,455
240,000 255,538
641,,000 1.447,924
4,250,739 281,,995
4,250,739 281,,995
$(3,609,739) 1,165,929
7,589,984
$ 8,755,913
66
$ 37,931
753,455
15,,538
806,,924
3,968,744
3,968,744
$4,775,668
\
1
1
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1
I
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1
,
!
J
\
J
J
1
L f TY OF SAN RAFAEL. CALIFORNIA
DEVELOPMENT SERVICES FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
REVENUES:
Uses of money and property
Charges for current services
Other revenue
Total Revenues
EXPENDITURES:
General government
Total Expenditures
EXCESS (DEFICIENCy) OF
REVENUES OVER EXPENDITURES
AND OTHER SOURCES (USES)
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED
FUND BALANCES AT END OF YEAR
BUDGET
$
75,000
228 .. 000
303 .. 000
344 .. 000
344 .. 000
$ (41.000)
67
ACTUAL
$ 59,912
357,708
192 .. 219
609 .. 839
412 .. 959
412 .. 959
196,880
873.507
$1.070,387
VARIANCE
FAVORABLE
(UNFAVORABLE)
$ 59,912
282,708
(35,781)
306 .. 839
(68,959)
(68,959)
$237,880
CITY OF SAN RAFAEL. CALIFORNIA
GRANTS FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
REVENUES:
Uses of money and property
Intergovernmental
Charges for current services
Other revenues
Total Revenues
EXPENDITURES:
Public safety
Public works and parks
Culture and recreation
Capital outlay
Total Expenditures
EXCESS (DEFICIENCy) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating transfers -In
Operating transfers -Out
Total Other Financing Sources
(Uses)
EXCESS (DEFICIENCy) OF REVENUES
OVER EXPENDITURES
AND OTHER SOURCES (USES)
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED
FUND BALANCES AT END OF YEAR
BUDGET
$ 2,750
1,139,761
54,500
1.197.011
256,638
38,234
423,513
675.603
1.393.988
(196.977)
120,000
(6.000)
114,.000
$ (82.977)
68
ACTUAL
$ 8,395
504,685
56,220
29.119
598.419
259,801
167,027
219,321
18.920
665.069
(66.650)
120,000
ill
119,.996
53,346
267.717
$321.063
VARIANCE
FAVORABLE
(UNFAVORABLE)
$ 5,645
(635,076)
56,220
(25.381)
(598.592)
(3,163)
(128,793)
204,192
656.683
728.919
130,.327
5,.996
5,.996
$136,323
1
J
I
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,
J
1
1
1
1
J
j
I
t;ITY OF SAN RAFAEL. CALIFORNIA
PARKLAND DEDICATION FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
REVENUES:
Uses of money and property
Other revenues
Total Revenues
EXPENDITURES:
Public works and parks
Capital outlay
Total Expenditures
EXCESS (DEFICIENCy) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating transfers -Out
Total Other Financing Sources
(Uses)
EXCESS (DEFICIENCy) OF REVENUES
OVER EXPENDITURES
AND OTHER SOURCES (USES)
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED
FUND BALANCES AT END OF YEAR
BUDGET
$ 54,810
54~81O
10,515
581 .. 598
592 .. 113
(537.303)
(20,000)
(20,000)
$
ACTUAL
50,112
162~933
213~045
10,515
350 .. 960
361 .. 475
(148,430)
(20,000)
(20,000)
$(557,303) (168,430)
69
1,185,275
$ 1,016,845
VARIANCE
FAVORABLE
(UNFAVORABLE)
$ (4,698)
162~933
158~235
230 .. 638
230 .. 638
388 .. 873
$388,873
CITY OF SAN RAFAEL, CALIFORNIA
ASSETS
Cash and investments
Cash with fiscal agent
Assessments receivable -deferred
TOTAL ASSETS
DEBT SERVICE FUNDS
COMB~GBALANCESHEET
JUNE 30, 1998
EAST FRANCISCO
BOULEVARD
ASSESSMENT
DISTRICT
$ 13,701
.L!l.701
LIABILITIES AND FUND BALANCES
Liabilities:
Deferred revenue
Total Liabilities
Fund Balances:
Reserved for debt service
Unreserved:
Designated for construction
Total Fund Balances
TOTAL LIABILITIES AND
FUND BALANCES
$
13,.701
13,701
~ 13,701
70
PEACOCK
GAP
ASSESSMENT
DISTRICT
$ 523,043
265,.710
$ 788,753
$ 265,710
265,710
523,043
523,043
~ 788,753
$
1915
ACT
BONDS
69,264
19,.025
U!,289
$ 19,025
19,025
69,264
69,264
~ 88,289
]
1
1
}
J
1
MARIPOSA
ASSESSMENT
DISTRICT
$ 39,429
22,376
$ 61,805
$ 22,376
22,376
39,429
39,429
$ 61,805
L1TY OF SAN RAFAEL, CALIFORNIA
DEBT SERVICE FUNDS
COMB~GBALANCESHEET
JUNE 30, 1998
1997
1997 FINANCING
REASSESSMENT AUTHORITY
1992
AGENCY
REFUNDING
BONDS DISTRICT REVENUE BONDS
$ $ 607,430 $
2,397 340,762 12
695,856
~ 2,397 ~ 1,644,048 $ 12
$ $ 695,856 $
695,856
2,397 948,192 12
2,397 948,192 12
$ 2,397 $ 1,644,048 $ 12
71
$
1995
AGENCY
BONDS
631,473
~ 631,473
$
631,473
631,473
$ 631,473
$
$
$
$
TOTAL
1,183,603
1,043,908
1,002,967
3,230,478
1,002,967
1,002,967
2,213,810
13.701
2,227,511
3,230,478
CITY OF SAN RAFAEL. CALIFORNIA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
REVENUES:
Taxes and special assessments
Uses of money and property
Total Revenues
EXPENDITURES:
Principal retirement
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCy) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating transfers -In
Operating transfers -Out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCy) OF REVENUES
AND OTIIER FINANCING SOURCES
OVER (UNDER) EXPENDITURES AND
OTHER FINANCING SOURCES (USES)
FUND BALANCES AT BEGINNING OF YEAR
FUND BALANCES AT END OF YEAR
EAST FRANCISCO
BOULEVARD
ASSESSMENT
DISTRICT
$
13 .. 701
lli..701
72
PEACOCK
GAP
ASSESSMENT
DISTRICT
$ 312,836
21 .. 097
333,933
160,000
95 .. 477
255.477
78 .. 456
(5,676)
(5,676)
72,780
450 .. 263
Ull,,043
1915
ACT
BONDS
$ 32,109
32,109
31,000
431
31.431
678
678
68 .. 586
.L§2..264
LfTY OF SAN RAFAEL! CALIFORNIA
DEBT SERVICE FUNDS
1 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
} FOR THE FISCAL YEAR ENDED JUNE 30, 1998
1997 1992
MARIPOSA 1997 FINANCING AGENCY 1995
ASSESSMENT REASSESSMENT AUTHORITY REFUNDING AGENCY
DISTRICT DISTRICT REVENUE BONDS BONDS BONDS TOTAL
$ 22,448 $ $ 786,166 $ 1,423,045 $ 626,895 $ 3,203,499
1,716 15,448 1,206 528 39,995
24,164 801.614 1.424,251 627.423 3,243,494
10,000 20,000 405,000 175,000 801,000
13,650 321.430 1,020,907 457.595 1.909,490
23,650 341.430 1,425,907 632,595 2,710,490
514 460,184 (1,656) (5,172) 533,004
2,568 5,017 7,585
(352) (10,868) (16,896)
(352) (10,868) 2.568 5,017 (9,311)
162 449,316 912 (155) 523,693 ,
l 39,267 2,397 498,876 (900) 631,628 1.703,818
$ 39,429 $ 2,397 $ 948,192 $ 12 $ 631.473 $ 2,227,511
1
73
CITY OF SAN RAFAEL, CALIFORNIA
PEACOCK GAP ASSESSMENT DISTRICT FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
REVENUES:
Taxes and special assessment $267,000 $312,836 $45,836
Uses of money and property 19.500 21,097 1,597
Total Revenues 286,500 333,933 47.433
EXPENDITURES:
Principal retirement 160,000 160,000
Interest and fiscal charges 100,062 95.477 4.585
Total Expenditures 260,062 255.477 4.585
EXCESS (DEFICIENCy) OF
REVENUES OVER (UNDER)
EXPENDITURES 26.438 78.456 52,018
OTHER FINANCING SOURCES (USES)
Operating transfers -Out (2,838) (5,676) (2,838)
Total Other Financing Sources (Uses) (2,838) (5,676) (2,838)
EXCESS (DEFICIENCy) OF REVENUES
AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES AND
OTHER FINANCING SOURCES (USES) $ 23,600 72,780 $49.180
FUND BALANCES AT BEGINNING OF
YEAR 450~263
FUND BALANCES AT END OF YEAR $523,043
74
I
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]
L1TY OF SAN RAFAEL. CALIFORNIA
1915 ACT BONDS FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
REVENUES:
Taxes and special assessment
Total Revenues
EXPENDITURES:
Principal retirement
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCy) OF
REVENUES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING SOURCES (USES)
FUND BALANCES AT BEGINNING OF
YEAR
FUND BALANCES AT END OF YEAR
BUDGET
~500
i
75
31~500
25,000
6~500
31~500
VARIANCE
FAVORABLE
ACTUAL (UNFAVORABLE)
t]1..109
32~109
31,000
431
3t431
678
68,586
$69,264
i 609
609
(6,000)
6~069
69
$ 678
CITY OF SAN RAFAEL. CALIFORNIA
MARIPOSA ASSESSMENT DISTRICT FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
REVENUES:
Taxes and special assessment
Uses of money and property
Total Revenues
EXPENDITURES:
Debt Service:
Principal retirement
Interest and fiscal charges
Total Expenditures .
EXCESS (DEFICIENCy) OF
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating transfers -Out
Total Other Financing Sources
(Uses)
EXCESS (DEFICIENCy) OF REVENUES
AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCES AT BEGINNING OF
YEAR
FUND BALANCES AT END OF YEAR
BUDGET
$ 23,000
1,,750
24,,750
10,000
13,,235
23 .. 235
1 .. 515
(176)
(176)
$ 1.339
76
VARIANCE
FAVORABLE
ACTUAL (UNFAVORABLE)
$ 22,448
1,,716
24,,164
10,000
13,,650
23,,650
514
(352)
(352)
162
39,266
$ 39.428
$ (552)
(34)
(586)
(415)
(415)
(1,001)
(176)
(176)
$ (1.177)
I
LITY OF SAN RAFAEL! CALIFORNIA
1997 FINANCING AUTHORITY REVENUE BONDS FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
REVENUES:
Taxes and special assessment $ 433,900 $ 786,166 $ 352,266
Uses of money and property 32,000 15.448 Cl6,552)
Total Revenues 465,900 801,614 335,714
EXPENDITURES:
Principal retirement 20,000 (20,000)
Interest and fiscal charges 352,938 321,430 31,508
Total Expenditures 352,938 341,430 11,508
EXCESS (DEFICIENCy) OF REVENUES
OVER EXPENDITURES 112,962 460,184 347,222
OTHER FINANCING SOURCES (USES):
Operating transfers -Out (5.434) ClO,868) (5.434)
Total Other Financing Sources
(Uses) (5.434) (10,868) (5.434)
EXCESS (DEFICIENCy) OF REVENUES
AND OTHER FINANCING SOURCES
1 OVER EXPENDITURES
AND OTHER FINANCING USES $ 107,528 449,316 $ 341,788
J FUND BALANCES AT BEGINNING OF
YEAR 498,876
1 FUND BALANCES AT END OF YEAR $ 948,192
77
CITY OF SAN RAFAEL. CALIFORNIA
1992 AGENCY REFUNDING BONDS FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
REVENUES:
Taxes and special assessment
Uses of money and property
Total Revenues
EXPENDITURES:
Principal retirement
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCy) OF
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating transfers -In
Total Other Financing Sources
(Uses)
EXCESS (DEFICIENCy) OF REVENUES
AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES
BUDGET
$1,413,614
15.1900
1.429,514
405,000
1.023,614
1,428,614
900
AND OTHER FINANCING USES $ 900
FUND BALANCES AT BEGINNING OF
YEAR
FUND BALANCES AT END OF YEAR
78
VARIANCE
FAVORABLE
ACTUAL (UNFAVORABLE)
$1,423,045
1.1206
i
1,424,251
405,000
1.020,907
1,425,907
(1.656)
2.1 568
2.1 568
912
(900)
12
$ 9,431
04,694)
(5,263)
2.1707
2.1707
(2,556)
2.1 568
2.1 568
i 12
l
lTV OF SAN RAF AELl CALIFORN~ A
1995 AGENCY REFUNDING BONDS FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
,
VARIANCE I FAVORABLE
BUDGET ACTUAL (lJNF A VORABLE)
I REVENUES:
Taxes and special assessment $623,577 $ 626,895 $ 3,318
Uses of money and property 9,000 528 (8.472)
Total Revenues 632,577 627.423 (5.154)
EXPENDITURES:
Principal retirement 175,000 175,000
Interest and fiscal charges 457.578 457,595 (17)
Total Expenditures 632.578 632.595 (17)
EXCESS (DEFICIENCy) OF
REVENUES OVER (UNDER)
EXPENDITURES (n (5.172) (5.171)
OTHER FINANCING SOURCES (USES):
Operating transfers -In 5,017 5,017
Total Other Financing Sources
(Uses) 5,017 5,017
EXCESS (DEFICIENCy) OF REVENUES
AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES $ (1) (155) $ (154)
FUND BALANCES AT BEGINNING OF
YEAR 631,,628
FUND BALANCES AT END OF YEAR $ 631,473
79
ASSETS
Cash and investments
Accounts receivable
Taxes receivable
Interest receivable
Loans receivable
Due from other funds
Land held for resale
~fTY OF SAN RAFAEL, CALIFORl\_a'i.
CAPITAL PROJECTS FUNDS
COMBnuNGBALANCESHEET
JUNE 30, 1998
CAPITAL
OPEN SPACE IMPROVEMENT
$ 505,648 $1,247,814
TOTAL ASSETS ~ 505,648 $1,247,814
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ $ 822
Due to other funds
Deposits
Deferred revenue
Total Liabilities 822
Fund Balances:
Reserved for:
Encumbrances
Loans
Projects 1,195,079
Land held for resale
Unreserved:
Designated for:
Redevelopment
Construction 505,648 51,913
Undesignated
Total Fund Balances 505,648 1,246,992
TOTAL LIABILITIES AND
FUND BALANCES ~ 505,648 ~ 1,247,814
80
BEDROOM ASSESSMENT
TAX DISTRICTS
$ 102,404 $ 584,156
13,020 12,024
34,845
~ 150,269 ~ 596,180
$ $ 70,965
13~020
13,020 70,965
34,845
102,404 525,215
137,249 525,215
~ 150,269 ~ 596,180
J
) )
I
~
LOW AND
1
PARK 1985 CAPITAL MODERATE 1992 BONDS 1995 BONDS
CAPITAL PROJECT AND INCOME CAPITAL CAPITAL
~ROJECTS ADMINISTRA nON HOUSING PROJECT PROJECT TOTAL
1
$ 96,362 $ 82,245 $ 365,834 $ 483,466 $3,905,786 $ 7,373,715
117,000 15,255 989,459 1,146,758
439,444 439,444
62,627 11,807 74,434
343,659 343,659
1,150,199 518,438 1,703,482
2,004,514 2,004,514
~ 213,362 ~2,086,759 ~2,377,018 ~ 1,472,925 ~4,436,031 ~ 13,086,006
$ $ 21,443 $ 3,280 $ 915,001 $ 13,011 $ 1,024,522
91,845 1,150,199 518,438 1,760,482
100,000 100,000
57,000 70,020
148,845 1,271,642 3,280 1,433,439 13,011 2,955,024
404 5,536 5,940
343,659 378,504
522,243 2,348,500 4,065,822
2,004,514 2,004,514
64,517 1,507,836 33,950 2,074,520 4,866,003
(1,189,801) (1,189,801)
1 64,517 815,117 2,373,738 39,486 4,423,020 10,130,982
1 ~ 213,362 ~2,086,759 ~2,377,018 ~ 1,472,925 ~4,436,031 ~ 13,086,006
81
CITY OF SAN RAFAEL, CALIFORNIA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
CAPITAL BEDROOM
OPEN SPACE IMPROVEMENT TAX
REVENUES:
Taxes and special assessments $ $ $ 33,714
Uses of money and property 26,210 67,724
Intergovernmental
Charges for current services
Other revenues 6~000
Total Revenues 26,210 67,724 39,714
EXPENDITURES:
Community development
Culture and recreation 34,461
Capital Outlay 19,677
Total Expenditures 19,677 34.461
EXCESS (DEFICIENCy) OF REVENUES
OVER (UNDER) EXPENDITURES 26,210 48,047 5,253
OTHER FINANCING SOURCES (USES):
Operating transfers -In
Operating transfers -Out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCy) OF REVENUES
OVER (UNDER) EXPENDITURES
AND OTHER SOURCES (USES) 26,210 48,047 5,253
FUND BALANCES AT BEGINNING OF
YEAR -RESTATED 479,438 1,198,945 131.996
FUND BALANCES AT END OF YEAR $ 505.648 $1.246.992 $137.249
82
l
ASSESSMENT
DISTRICTS
$
12,024
12,024
233,339
233,339
I. J
(221,315)
20,473
20.473
(200,842)
726,057
$ 525.215
I ) )
CITY OF SAN RAFAEL. CALIFORNIA
INTERNAL SERVICE FUNDS
COMB~GBALANCESHEET
JUNE 30, 1998
LIABILITY WORKERS' DENTAL
INSURANCE COMPENSATION INSURANCE TOTAL
Assets:
Cash and investments $ 859,972 $ 1,265,839 $ 57,187-$ 2,182,998
Total Assets $ 859,972 $ 1,265,839 $ 57,187 $ 2,182,998
Liabilities and Retained Earnings
Liabilities:
Accounts payable $ 8,049 $ 5,575 $ $ 13,624
Claims payable 805,634 1.103.107 1.908,741
Total Liabilities 813,683 1,108,682 1,922.365
Retained Earnings:
Unreserved:
Designated for insurance premiums
and claims 46,289 157.157 57.187 260,633
Total Retained Earnings 46,289 157.157 57.187 260,633
Total Liabilities and
Retained Earnings $ 859,972 $ 1,265,839 $ 57,187 $ 2,182,998
84
~.tTY OF SAN RAFAEL.t CALIFO~.I.A
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
I LIABILITY WORKERS' DENTAL
INSURANCE COMPENSA nON INSURANCE TOTAL
1
Operating Revenues:
1 Charges for current services $ 558,845 $ 691,478 $184,606 $ 1.434,929
Total Operating Revenues 558,845 691,478 184,606 1.434,929
Operating Expenses:
Insurance premiums and claims 910,904 611,390 127.419 1,649,713
Total Operating Expenses 910,904 611,390 127.419 1,649,713
Operating Income (Loss) (352,059) 80,088 57.187 (214,784)
Non-Operating Revenues:
Investment income 34,788 70,214 105,002
Refunds 151,060 6,855 157,915
Operating transfers -In 212,500 212,500
Total Non-Operating Revenues 398,348 77,069 475.417
Net Income 46,289 157,157 57,187 260,633
Retained Earnings at beginning of year
Retained Earnings at end of year $ 46,289 $ 157,157 $ 57,187 $ 260,633
]
85
CITY OF SAN RAFAEL, CALIFORNIA
INTERNAL SERVICE FUNDS
COMBININGSTATEMrnNTOFCASHFLOWS
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
LIABILITY WORKERS' DENTAL
INSURANCE COMPENSA nON INSURANCE TOTAL
Cash Flows From Operating Activities:
Operating Income (Loss) $ (352,059) $ 80,088 $ 57,187 $
(214,784)
Change in Assets and Liabilities:
Increase in accounts payable 8,049 5,575 13,624
Increase (Decrease) in contract payable
Net Cash Provided By (Used for)
Operating Activities (344,010) 85,663 57,187 (201,160)
Cash Flows from Non-Capital Financing Activities:
Proceeds from assumption of liabilities 805,634 1,103,107 1,908,741
Refunds received 151,060 6,855 157,915
Operating transfers -In from other funds 212,500 212,500
Net Cash Provided By
Non-Capital Financing 1,169,194 1,109,962 2,279,156
Cash Flows from Investing Activities:
Interest and dividends on investments 34.788 70.214
105,.002
Net Cash Provided By
Investing Activities 34.788 70.214 105.002
Net Increase (Decrease) in Cash
and Cash Equivalents 859,972 1,265,839 57,187 2,182,998
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year ~ 859.972 ~ 1.265.839 ~ 57.187 ~ 2.182.998
86
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,-,lTV OF SAN RAFAEL. CALIFORNiA.
ASSETS
Cash and investments
Restricted cash
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
LIABILITIES:
Deferred compensation payable
Total Liabilities
FUND BALANCES:
Reserved for:
Petty cash
Unreserved:
Designated for projects
Total Fund Balances
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
JUNE 30, 1998
AGENCY FUND EXPENDABLE TRUST FUNDS
DEFERRED BUSINESS NEIGHBORHOOD
COMPENSATION IMPROVEMENT TRUST
$ $ 6,760 $
11.496,347
$ 11,496,347 ~760 i
$ 11,496,347 i i
11.496,347
3,000
3~760
6~760
TOTAL LIABILITIES AND
FUND EQUITY $ 11,496,347 ~760 i
87
CITY OF SAN RAFAEL. CALIFORNIA
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
JUNE 30, 1998
EXPENDABLE TRUST FUNDS
LIBRARY
FIDICIARY
$ 392,069
$ 392,069
~
392,,069
392,,069
$ 392,069
RECREATION
FIDUCIARY
$ 28,704
~ 28 • .704
~
28,,704
28,,704
~ 28,,704
TOTAL
$ 427,533
11.496,347
$ 11.923,880
$ 11.496,347
11,496,347
3,000
424,,533
427,,533
$ 11,923,880
88
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I
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I
l..lTY OF SAN RAFAEL. CALIFORNIA
EXPENDABLE TRUST FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES .
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
BUSINESS NEIGHBORHOOD
IMPROVEMENT TRUST
REVENUES:
Uses of money and property $ $
Intergovernmental 35,000
Other revenues 15.588
Total Revenues 50.588
EXPENDITURES:
Community development 61,352 5,000
Culture and recreation
Total Expenditures 61.352 5,000
EXCESS (DEFICIENCy) OF REVENUES
OVER EXPENDITURES (10,764) (5,000)
FUND BALANCES AT BEGINNING OF
YEAR 17,524 5,000
FUND BALANCES AT END OF YEAR $ 6,760 ~
89
LIBRARY
FIDUCIARY
$ 21,548
1,183
22,731
31~572
31.572
(8,841)
400,910
~ 392,069
RECREATION
FIDUCIARY
$
28,704
~ 28.704
TOTAL
$ 21,548
35,000
16 .. 771
73 .. 319
66,352
31 .. 572
97 .. 924
(24,605)
452,138
~ 427.533
90
l
l
~TY OF SAN RAFAEL. CALIFO~~rl.
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
Balance at Balance at
July 1. 1997 Additions Deductions June 30, 1998
DEFERRED COMPENSATION
ASSETS:
Cash and investments $ 9.138,223 $ 3.137.499 $ 779.375 $11,496.347
TOTAL ASSETS $ 9.138,223 $ 3.137.499 $ 779.375 $11.496,347
LIABILITIES:
Deferred compensation payable %.,$ .;;;..::9 ,=13::....:8=,2=2=3 _--",-$.:.,:3 '0=3 .:....:17'-1...4.:..::;9 ...... 9 _---"'$'-'-7"'""-'79~,3=7:....:::5 _ ___=$o:...:1..:..;1.L..:..49::....:6=.3:::....4:....:..7
TOTAL LIABILITIES =$ =9,=13=8=,2=:23====$=3=.3:::::17=.4=9:::::9=====$::::::77=9==.3=7=5 =::::=::=$1:=1==:.4::::::96:=.3=4=7
91
( (
CITY OF SAN RAFAEL, CALIFORNIA
SINGLE AUDIT ACT
JUNE 30, 1998
* * *
(
CITY OF SAN RAFAEL, CALIFORNIA
TABLE OF CONTENTS
JUNE 30, 1998
PAGE NO.
Independent Auditor's Report on Schedule of
Expenditures of Federal Award ..................................................................................... 1
Schedule of Expenditures of Federal Award........................................................................ 2
Notes to Schedule of Expenditures of Federal Award ......................................................... 3
Independent Auditor's Report on Compliance and on Internal
Control over Financial Reporting Based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards .............................. ............................... ....................... 4 - 5
Independent Auditor's Report on Compliance with
Requirements Applicable to Each Major Program
and Internal Control Over Compliance in Accordance
with OMB Circular A-133.............................................................................................. 6 - 7
Schedule of Findings and Questioned Costs ....................................................................... 8
Prior Year's Findings and Questioned Costs ....................................................................... 9
c. G. UHLENBERG & co. LLP
CERTIFIED PUBLIC ACCOUNTANTS
ROBERT E. BARSANTI, C.P.A. PEGGY H. CHEN , C.P.A. JEFFREY J. IRA , C.P.A. KATHERINE C. WONG , C.P.A.
INDEPENDENT AUDITOR'S REPORT ON SCHEDULE OF
EXPENDITURES OF FEDERAL AWARDS
Honorable Mayor and
Members of the City Council
City of San Rafael, California
We have audited the general purpose financial statements of the City of San Rafael,
California, as of and for the fiscal year ended June 30, 1998, and have issued our report
thereon dated October 23, 1998. These general purpose financial statements are the
responsibility of the City of San Rafael's management. Our responsibility is to express an
opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards;
Government Auditing Standards, issued by the Comptroller General of the United States; and
the provision of Office of Management and Budget COMB) Circular A-133, Audits of State
and Local Governments. Those standards and OMB Circular A-133 require that we plan and
perform the audit to obtain reasonable assurance about whether the general purpose financial
statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the general purpose financial statements.
An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall fmancial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In accordance with Government Auditing Standards, we have also issued a report dated
October 23, 1998 on our consideration of the City of San Rafael's internal control structure
and a report on October 23, 1998 on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose
financial statements of the City of San Rafael, taken as a whole. The accompanying
Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis
and is not a required part of the general purpose fmancial statements. The information in that
schedule has been subjected to the auditing procedures applied in the audit of the general
purpose financial statements and, in our opinion, is fairly presented in all material respects in
relation to the general purpose financial statements taken as a whole.
e.G. ~
October 23, 199;·~ t
Redwood City, California
1
647 Veterans Boulevard, Redwood City, CA 94063
Phone (650) 365-2323 • (408) 733-9944 • (510) 353-0330
Fax (650) 365-8394
CI'l'Y OF SAN RAFAEL. CALIFORNIA
SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
PASS
FEDERAL lHROUGH PROGRAM
FEDERAL GRANTORIPASS lHROUGH CFDA GRANT OR AWARD PROGRAM
CONTROLIPROGRAM TITLE NUMBER NUMBER AMOUNT REVENUES
U .S. Department of Education:
Pass through California State Library
LSCA Transition Grant 84.034 40-4155 30,000 3,000
Pass through California State Library
Library State Grant 84.010 40-4327 5,000
Library Title 1 84.010 40-4395 84,277 65,572
Total for CFDA 84.010 65,572
U.S . Department of Housing and Urban
Development:
Community Development Block Grant -
Year 23 Entitlement 14.218 N/A 10,400 10,400
ADA Access Grant 14.218 N/A 50,000
Total for CFDA 14.218 10,400
U.S. Department of Justice:
Copsmore 16.726 N/A 60,122
Code Enforcement Grant 16.592 N/A 55,204
Federal Emergency Management Agency:
Pass through State of California
FEMA Storm Damage 97/98* 83.544 041-68364 482,033 482,033
National Foundation on the Arts and the
Humanities Institutes of Museum Services:
Falkirk Grant 45.301 N/A 46,238
Total Federal Programs $561,005
* Major program as defmed by OMB Circular A-l33.
2
PROGRAM
EXPENDITURES
11.348
5,000
68,492
73,492
10,400
2,300
12,700
15,937
25,325
482,033
10,081
$630,916
LA-IV OF SAN RAFAEL, CALIFORNIA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
1. General
The accompanying Schedule of Expenditures of Federal Awards presents activity of the federal
fmancial assistance programs of the City of San Rafael, California (the City). All federal
financial assistance received directly from federal agencies as well as federal financial assistance
passed through other government agencies is included on the schedule.
2. Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards is presented using the modified
accrual basis of accounting, which is described in Note 1 to the City's general purpose fmancial
statements. The City does not budget for revenues or expenditures in the individual funds that
receive federal awards.
Federal programs are labeled either as Type A or Type B. Type A programs are defined as
Federal programs with Federal awards expended during the audit period exceeding the larger of:
(i) $300,000 or three percent (.03) of total Federal awards expended if the
City's total Federal awards expended equal or exceed $300,000 but are less
than or equal to $100 million.
(ii) $3 million or three-tenths of one percent (.003) of total Federal awards
expended if the City's total Federal awards expended equal or exceed $100
million but are less than or equal to $10 billion.
(iii) $30 million or 15 hundredths of one percent (.0015) of total Federal awards
expended if the City's total Federal awards expended equal or exceed $10
billion.
Federal programs not labeled Type A as described above are labeled Type B
programs.
3. Relationship to Federal Financial Reports
Amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree or
can be reconciled with the amounts reported or to be reported in the federal financial reports.
3
(
c. G. UHLENBERG & co. LLP
CERTIFIED PUBLIC ACCOUNTANTS
ROBERT E. BARSANTI, C.P.A . PEGGY H. CHEN. CPA JEFFREY J. IRA , C.P.A . KATHERINE C. WONG . CPA
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON
INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and
Members of the City Council
City of San Rafael, California
We have audited the general purpose financial statements of the City of San Rafael, California, as of
and for the fiscal year ended June 30, 1998, and have issued our report thereon dated October 23,
1998. We conducted our audit in accordance with generally accepted auditing standards and
Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the City of San Rafael, California's
financial statements are free of material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts and grants, noncompliance with which could have
a direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance that are required to be reported under Government Auditing Standards. However,
we noted certain immaterial instances of noncompliance, which we have reported to management of
the City of San Rafael, California, in a separate letter dated October 31, 1998.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City of San Rafael, California's internal
control over financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and not to provide assurance on the internal
control over financial reporting. Our consideration of the internal control over financial reporting
would not necessarily disclose all matters in the internal control over financial reporting that might
be material weaknesses. A material weakness is a condition in which the design or operation of one
or more of the internal control components does not reduce, to a relatively low level, the risk that
misstatements, in amounts that would be material in relation to the financial statements being
audited, may occur and not be detected within a timely period by employees in the normal course of
4
647 Veterans Boulevard, Redwood City, CA 94063
Phone (650) 365-2323 • (408) 733-9944 • (510) 353-0330
Fax (650) 365-8394
perfonning their assigned functions. We did not note any matters involving the internal control
over financial reporting and its operation that we consider to be material weaknesses.
This report is intended for the infonnation of the audit committee, management, and federal
awarding agencies and pass-through entities. However, this report is a matter of public record and
its distribution is not limited.
C. G.
October 23, 1998
Redwood City, California
5
c. G. UHLENBERG & co. LLP
CERTIFIED PUBLIC ACCOUNTANTS
ROBERT E. BARSANTI, C.P.A . PEGGY H. CHEN , C.P.A. JEFFREY J. IRA, C.P.A. KATHERINE C. WONG, C P.A
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND
INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH
QMB CIRCULAR A-133
Honorable Mayor and
Members of the City Council
City of San Rafael, California
Compliance
We have audited the compliance of City of San Rafael, California with the types of compliance
requirements described in the Us. Office of Management and Budget (OMB) Circular A-l33
Compliance Supplement that are applicable to each of its major federal programs for the fiscal year
ended June 30, 1998. City of San Rafael, California's major federal programs are identified in the
Schedule of Expenditures of Federal Awards. Compliance with the requirements of laws, regulations,
contracts and grants applicable to each of its major federal programs is the responsibility of City of
San Rafael, California's management. Our responsibility is to express an opinion on City of San
Rafael, California's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and OMB Circular A-l33, Audit of States, Local
Governments, and Non-Profit Organizations. Those standards and OMB Circular A-l33 require that
we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the
types of compliance requirements referred to above that could have a direct and material effect on a
major federal program occurred. An audit includes examining, on a test basis, evidence about City of
San Rafael, California's compliance with those requirements and performing such other procedures as
we considered necessary in the circumstances. We believe that our audit provides a reasonable basis
for our opinion. Our audit does not provide a legal determination on City of San Rafael, California's
compliance with those requirements.
In our opinion, City of San Rafael, California complied, in all material respects, with the
requirements referred to above that are applicable to each of its major federal programs for the fiscal
year ended June 30, 1998.
6
647 Veterans Boulevard, Redwood City, CA 94063
Phone (650) 365-2323 • (408) 733-9944 • (510) 353-0330
Fax (650) 365-8394
Internal Control Over Compliance
The management of City of San Rafael, California is responsible for establishing and
maintaining effective internal control over compliance with requirements of laws, regulations,
contracts and grants applicable to federal programs. In planning and performing our audit, we
considered City of San Rafael, California's internal control over compliance with requirements
that could have a direct and material effect on a major federal program in order to determine our
auditing procedures for the purpose of expressing our opinion on compliance and to test and
report on internal control over compliance in accordance with OMB Circular A-133 .
Our consideration of the internal control over compliance would not necessarily disclose all matters
in the internal control that might be material weaknesses. A material weakness is a condition in
which the design or operation of one or more of the internal control components does not reduce to
a relatively low level the risk that noncompliance with applicable requirements of laws, regulations,
contracts and grants that would be material in relation to a major federal program being audited
may occur and not be detected within a timely period by employees in the normal course of
performing their assigned functions. We noted no matters involving the internal control over
compliance and its operation that we consider to be material weaknesses.
This report is intended for the information of the audit committee, management and federal
awarding agencies and pass-through entities. However, this report is a matter of public record
and its distribution is not limited.
c. Or. ~ k Co. ~
October 23, 1998
Redwood City, California
7
(;ITY OF SAN RAFAEL. CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
Section I -Summary of Auditor's Results
Financial Statements
Type of auditor's report issued:
Internal control over financial reporting:
• Reportable condition(s) identified that
are not considered to material weaknesses?
• Material weakness( es) identify?
Noncompliance material to financial
statements noted?
Federal Awards
Internal control over major programs:
• Reportable condition(s) identified that
are not considered to material weaknesses?
• Material weakness(es) identified?
Unqualified
____ yes __ X __ none reported
____ yes __ X __ no
____ yes __ X __ no
____ yes __ X __ none reported
____ yes __ X __ no
Type of auditor's report issued on compliance for major programs: Unqualified
Any audit findings disclosed that are
required to be reported in accordance
with section 51O(a) of Circular A-133?
Identification of major programs:
CFDA Number(s)
83.544
Dollar threshold used to distinguish
between type A and type B programs:
Auditee qualified as low-risk auditee?
____ yes __ X __ no
Name of Federal Program or Cluster
FEMA -Storm Damage
$300,000
__ X __ yes ___ ----'no
8
CITY OF SAN RAFAEL, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
Section II -Financial Statement Findings
No current and prior year finding noted.
9
.. (,1. fV OF SAN RAFAEL, CALIFORNlA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 1998
Section III -Federal Award Findings and Questioned Costs
No current and prior year fmding noted.
10