HomeMy WebLinkAboutFin Year-End Financial Statements and Related Audit Reports____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 11/18/2019
Disposition: Accepted reports
Agenda Item No: 7.c
Meeting Date: November 18, 2019
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Nadine Atieh Hade,
Finance Director
City Manager Approval: ______________
TOPIC: YEAR-END FINANCIAL STATEMENTS AND RELATED AUDIT REPORTS
SUBJECT: FISCAL YEAR 2018-2019 ANNUAL FINANCIAL REPORT; GANN APPROPRIATIONS
LIMIT; MEMORANDUM ON INTERNAL CONTROL; AND THE CHILD DEVELOPMENT
PROGRAM (CHILDCARE) FINANCIAL REPORT
RECOMMENDATION:
Accept the Fiscal Year 2018-2019 Annual Financial Report, the Gann Appropriations Limit Report, the
Memorandum on Internal Control, and the Child Development Program Financial Report
BACKGROUND:
As required by local code, State law, bond covenants, and best practices, the City of San Rafael
completes an annual audit of its financial activities. The auditing firm of Maze and Associates,
Accountancy Corporation conducted the audit for fiscal year 2018-2019. 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.
The requirements of Section 1.5 of Article XIIIB of the California Constitution are met with an agreed-
upon procedure report applied to the Gann Appropriation Limit calculated for the year ending June 30,
2020. A Memorandum on Internal Control is also prepared by the auditors to address the City’s controls
over its financial activities. These reports are also attached to this staff report.
Also, as part of the fiscal year-end closing activities, the Finance and Library & Recreation departments
worked with Maze and Associates to complete the annual audit of the City’s childcare program, as
required by the State of California.
These final reports were presented to the City Council Finance Committee on November 12, 2019 at
which time it was agreed that staff would bring the reports forward to the full City Council.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
ANALYSIS:
Overview
The Fiscal Year 2018-2019 ended in a better financial position than originally budgeted mainly due to an
increase in sales tax. The year-over-year $1.5 million increase in sales taxes was attributed to a large
order of buses purchased by the Golden Gate Bridge Highway and Transportation District and
unexpected one-time merchant gains primarily attributable to building and construction which is not
expected to be ongoing. Furthermore, the State implemented a new sales tax remittance system in the
last fiscal year and as a result of system errors, sales tax remittance was delayed for months which
caused the current fiscal year to include sales tax revenue that should have been for the prior year had
it been remitted timely. Property tax revenues remained strong, with growth in line with the prior year.
The City’s General Fund Emergency Reserves continue to meet the target level of ten percent of
operating expenses established by City Council Policy. Although the City’s year ending fund balances
are strong, critical unmet needs have accumulated as a result of the past, multi-year deferral of various
capital improvements, maintenance and technology support projects and initiatives.
Fiscal year 2018-2019 marks the fifth year of implementation of the pension accounting standard issued
by the Governmental Accounting Standards Board (GASB) known as GASB 68, and the third year of
implementation of the new Other Postemployment Benefits (OPEB) accounting standard issued by the
Governmental Accounting Standards Board (GASB) known as GASB 75. These requirements, which
affect all public agencies with defined benefit retiree plans, are designed to enhance the comparability of
financial statements by requiring the measurement of pension-related assets and liabilities at fair value,
using a consistent and detailed definition of fair value and accepted valuation techniques. The net impact
of reporting under GASB 68 lowers the City’s net position as of June 30, 2019 by $112 million from a
reporting perspective. The net pension liability as of this date was measured to be $110.6 million. The
net impact of reporting under GASB 75 lowers the City’s net position as of June 30, 2018 by $28.9 million.
The net OPEB liability as of this date was measured to be $33 million.
The full annual funding of the City’s Retiree and OPEB costs have been incorporated into the adopted
fiscal year 2019 2020 budget; therefore, there is no negative impact on City operations or services
resulting from the reporting of financial information under these reporting standards.
The City made major progress on the Measure E – Public Safety Facility initiative, completing Fire Station
52 during the fiscal year with Fire Station 57’s completion soon to follow. Construction expenses for the
year totaled $23.9 million, of which 58% were in support of the Public Safety Center and the remainder
split evenly between stations 52 and 57. Total project-to-date spending is approximately $48.4 million.
Fiscal Year 2018-19 Annual Financial Report – Citywide Financial Results
The actual results of the City’s financial activities are presented in the attached Comprehensive Annual
Financial Report. The report includes Government-wide financial statements with governmental activities
and business-type activities presented separately. Net position is one indicator of the City’s financial
position. At the end of the fiscal year, net position of the City governmental activities was $136.9 million,
an increase of $16.8 million from the prior year adjusted balance. This increase is largely attributable to
the large activity of capital projects being performed during the year. The Parking Fund, reported as a
business-type activity, ended the fiscal year with a net position of $9.8 million, or $0.2 million less than
that of the previous fiscal year. The fund’s cash balance makes up 33% of total net position.
Additional explanatory information is provided in the Management’s Discussion and Analysis (MD&A)
section beginning on page five of the attached CAFR. The MD&A provides key highlights and a summary
view of financial activities for the year.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Financial Results: General Fund
General fund operating revenues exceeded expenditures by $2.2 million. Measure E revenues of $4.1
million dedicated to public safety facilities construction and infrastructure were transferred out of the
General Fund in support of the projects whereas $2.2 million was transferred from bond proceeds in the
Essential Facilities Capital Projects Fund to cover interest payments.
The fund balance of the General Fund as of June 30, 2019 was $12.5 million (an increase of $310
thousand from the prior year balance): $37 thousand is non-spendable, $11.4 million is assigned and
$1.1 million is unassigned. The assigned portion of the balance includes $7.9 million for emergency and
cash flow needs.
Gann Appropriations Limit
The Agreed-Upon Procedures report for the Gann Appropriations Limit required three procedures to be
performed including testing the accuracy of the calculations and comparison of information presented.
No exceptions were noted in these procedures for compliance with the Proposition 111 fiscal year 2019-
2020 Appropriations Limit calculation.
Memorandum on Internal Control
The auditors are required to communicate to the City Council matters that come to their attention relating
to the audit in a report entitled Memorandum on Internal Control and Required Communications. No
additional issues were raised during this audit.
Childcare Financial Report
The Childcare Program had positive operating results, with $3.6 million in total revenues and $3.5 million
in expenditures for the fiscal year. The fund balance increased from $1.6 million to $1.7 million of which
funds have been accumulated for capital improvements which are scheduled to occur in fiscal year 19-
20. The audit resulted in no adverse findings.
FISCAL IMPACT:
No fiscal impact occurs by the City Council’s acceptance of these reports. The fiscal year 2018-2019
Comprehensive Annual Financial Report and related reports are presented as the actual results of the
City and related entities’ financial activities for the year.
OPTIONS:
The City Council has the following options to consider on this matter:
1. Accept the report;
2. Accept report with modifications.
3. Direct staff to return with more information.
4. Take no action.
RECOMMENDED ACTION:
Staff recommends that City Council accept the reports as presented. The reports will remain as “draft”
until City Council has accepted the reports.
ATTACHMENTS:
1. FY 2018-19 Draft Comprehensive Annual Financial Report
2. FY 2018-19 Draft Gann Appropriations Limit
3. FY 2018-19 Draft Memorandum of Internal Controls and Required Communications
4. FY 2018-19 Draft Child Development Program Financial Report
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDING JUNE 30, 2019
Loch Lomond Marina, San Rafael, California
SAN RAFAEL
THE CITY WITH A MISSION
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2019
City of San Rafael, California
1400 Fifth Avenue
San Rafael, California 94901
Prepared by the Finance Department of the City of San Rafael
Porchfest, Gerstle Park
INTRODUCTORY SECTION
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2019
Table of Contents
i
INTRODUCTORY SECTION
TABLE OF CONTENTS
Letter of Transmittal .................................................................................................................................... v
Mission Statement and Vision Statement ................................................................................................... xi
City Council and Staff ............................................................................................................................... xii
Location Map ............................................................................................................................................ xiii
Organizational Chart ................................................................................................................................. xiv
Certificate of Achievement for Excellence in Financial Reporting ........................................................... xv
FINANCIAL SECTION
Independent Auditor's Report .................................................................................................................. 1
Management’s Discussion and Analysis .................................................................................................. 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ............................................................................................................. 25
Statement of Activities .................................................................................................................. 26
Fund Financial Statements:
Major Governmental Funds:
Balance Sheet ............................................................................................................................ 30
Balance Sheet - Reconciliation of Governmental Fund Balances to
Net Position of Governmental Activities .............................................................................. 32
Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 33
Reconciliation of the Net Change in Fund Balances - Total Governmental
Funds with the Statement of Activities ................................................................................. 34
Proprietary Funds:
Statement of Net Position .......................................................................................................... 36
Statement of Revenues, Expenses, and Changes in Fund Net Position .................................... 37
Statement of Cash Flows ........................................................................................................... 38
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2019
Table of Contents
ii
FINANCIAL SECTION (Continued)
Fiduciary Funds:
Statement of Fiduciary Net Position ......................................................................................... 40
Statement of Changes in Fiduciary Net Position ....................................................................... 41
Notes to Basic Financial Statements .................................................................................................. 43
Required Supplementary Information:
Schedule of the City’s Proportionate Share of the Net Pension Liability ..................................... 94
Schedule of Contributions – Defined Benefit Pension ................................................................. 95
Schedule of Changes in Net OPEB Liability and Related Ratios ............................................... 100
Schedule of Contributions – OPEB ............................................................................................ 101
Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual -
Budgetary Basis
General Fund ........................................................................................................................... 104
Traffic and Housing Mitigation Special Revenue Fund .......................................................... 105
Gas Tax Special Revenue Fund ............................................................................................... 106
Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
Budgetary Basis
Essential Facilities Capital Projects Fund ................................................................................ 108
Non-major Governmental Funds:
Combining Balance Sheets ......................................................................................................... 112
Combining Statements of Revenues, Expenditures, and Changes
in Fund Balance ................................................................................................................... 118
Budgeted Non-major Governmental Funds:
Combining Schedules of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual ...................................................................... 124
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2019
Table of Contents
iii
FINANCIAL SECTION (Continued)
Internal Service Funds:
Combining Statements of Net Position ....................................................................................... 134
Combining Statements of Revenues, Expenses and Changes in Fund Net Position ................... 136
Combining Statements of Cash Flows ........................................................................................ 138
Agency Funds:
Combining Statements of Changes in Assets and Liabilities ...................................................... 142
STATISTICAL SECTION
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ....................................................................... 146
Changes in Net Position – Last Ten Fiscal Years ............................................................................. 148
Fund Balances of Governmental Funds – Last Ten Fiscal Years ..................................................... 152
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .................................... 154
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ...................... 156
Property Tax Rates - All Overlapping Governments– Last Ten Fiscal Years .................................. 157
Principal Property Tax Payers – Current Year and Nine Years Ago ................................................ 158
Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................... 159
Debt Capacity:
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................... 160
Computation of Direct and Overlapping Debt .................................................................................. 161
Computation of Legal Bonded Debt Margin .................................................................................... 162
Revenue Bond Coverage Parking Facility – Last Ten Fiscal Years ................................................. 163
CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2019
Table of Contents
iv
STATISTICAL SECTION (Continued)
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years ...................................................... 164
Principal Employers – Last Ten Calendar Years .............................................................................. 165
Operating Information:
Full-Time Equivalent City Government Employees by Function
– Last Ten Fiscal Years ................................................................................................................. 166
Operating Indicators by Function/Program – Last Ten Fiscal Years ................................................ 168
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ............................................ 170
Gary O. Phillips, Mayor • Andrew Cuyugan McCullough, Vice Mayor • Maribeth Bushey, Councilmember • Kate Colin, Councilmember • John Gamblin, Councilmember
November 8, 2019
Honorable Mayor, Members of the City Council and Residents of San Rafael:
The Comprehensive Annual Financial Report (“CAFR”) of the City of San Rafael (“City”)
for the year ended June 30, 2019, is hereby submitted as required by local ordinances, state
statutes and bond covenants. This financial report has been prepared in conformance with
Generally Accepted Accounting Principles (GAAP) as promulgated by the Governmental
Accounting Standards Board (GASB) and includes the report of the independent certified
public accounting firm, Maze and Associates Accountancy Corporation, which has issued
an unmodified, or “clean” opinion on the City’s financial statements for the fiscal year
ended June 30, 2019.
The independent audit of the financial statements is part of a broader, federally mandated
examination known as a “Single Audit”, which is designed to meet the needs of federal
grantor agencies. The standards governing Single Audits require the independent auditor to
report on the audited agency’s internal controls and compliance with legal requirements,
with special emphasis on such controls and requirements involving the administration of
federal funding. These reports will be available in the City’s separately issued Single Audit
Report.
City Management is responsible for both the data accuracy, and the completeness and
fairness of the presentation of this report. To the best of our knowledge and belief, the data
presented is accurate in all material respects and is reported in a manner that presents fairly
the financial position and results of operations of the various funds and component units of
the City. Further, the CAFR is prepared in accordance with procedures and policies set by
the Government Finance Officers Association. The analysis of the financial condition and
the result of operations can be found in the financial section of the Management’s
Discussion and Analysis document. The CAFR is organized into three sections:
1.Introductory section, which is unaudited, includes this letter of transmittal, an
organizational chart and a list of the City’s elected and appointed officials.
2.Financial section, includes the general-purpose financial statements, related footnote
disclosures, and the combining and individual fund and account group financial
statements and schedules, as well as the independent auditors' report.
3.Statistical section, which is unaudited, includes selected financial and demographic
information, presented on a multi-year basis. Generally, ten-year data is presented for
expenditures, revenues, assessed valuation for local properties and construction
activity.
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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG
vi
REPORTING ENTITY -PRO FI.LE OF THE GOVERNMENT
The City of San Rafael is located 17 miles north of San Francisco in Marin County.
Protected by its Mediterranean like setting along the shores of the San Francisco Bay, the
City enjoys a mild climate year-round. As the County seat, San Rafael is considered the
commercial, financial, cultural and civic hub of Marin County. Abundant recreational
facilities are available in and around the City. The City's park and recreational resources
include 19 city parks, 393 acres of developed parkland, city and county open space, and
China Camp State Park. San Rafael is close to other attractions, including the Golden Gate
Bridge, Muir Woods, Point Reyes National Seashore, Mount Tamalpais, multiple state
parks, San Francisco, Oakland and the Sonoma and Napa wine country.
In 1874, the City of San Rafael became the first incorporated city in the county, later
becoming a charter city in 1913 by vote of City residents. The City Council comprises five
members; four are elected at-large to four-year terms while the mayor is elected separately
to a four-year term. The City's land area is 22 square miles, including seventeen square
miles of land and 5 of water and tidelands. San Rafael's population on January 1, 2019 was
61,343 and is projected to grow at an average rate of 0.3% per year.
Downtown San Rafael is the location of many community events, including the Thursday
night Summer Market Festivals three months out of the year, Second Friday Art Walks, the
Twilight Criterium Bike Race, Mill Valley Film Festival, Winter Wonderland/Parade of
Lights, and is one of only 14 Cultural Arts Districts in the State of California. San Rafael is
also the heart of the County's cultural activities with venues such as the Marin Center,
which presents numerous ballets, concerts, speaking engagements as well as the award-
winning Marin County Fair; the Falkirk Cultural Center, providing art exhibits and
children's programming; the Christopher B. Smith Film Center, and a host of other diverse
dining and entertainment venues. The City is also home to the distinguished Dominican
University of California.
The City of San Rafael provides a full range of municipal services required by statute or
charter, namely: police and fire protection, construction and maintenance of streets, parks,
storm drains and other infrastructure, recreation, childcare, permits, planning, code
enforcement, and a library system serving two locations along with a temporary pop-up at
the Northgate Mall. The City performed certain infrastructure construction and economic
development activities through a separate Redevelopment Agency until its dissolution on
February 1, 2012. The City of San Rafael accepted the role of Successor Agency to the
Redevelopment Agency per Council action on January 3, 2012, and now conducts its
economic development activities with funding from its General Fund.
The City and California Municipal Finance Authority compose the San Rafael Joint
Powers Financing Authority, originally established by the City and former Redevelopment
CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 · CITYOFSANRAFAEL.ORG
Gary 0 . Phillips, Mayor• Andrew Cuyugan McCullough , Vice Mayor• Maribeth Bushey, Councilmember • Kate Colin , Councilmember • John Gamblin, Councllmember
vii
Agency for the purpose of financing redevelopment and other projects. The San Rafael
Sanitation District is a discretely presented component unit of the City of San Rafael and is
presented independent of City financial information. For a further explanation of these
entities, refer to Note 1 -Summary of Significant Accounting Policies in the Financial
Section of the CAFR.
The City participates in various organizations through formally organized and separate
entities established under the Joint Exercise of Powers Act of the State of California. As
separate legal entities, these agencies exercise full powers and authorities within the
scope of the related Joint Powers Agreement including the preparation of annual
budgets, accountability for all funds, and the power to make and execute contracts.
Obligations and liabilities of the separate entities are not those of the City. For a further
explanation of these separate entities, refer to Note 12 -Jointly Governed Organizations in
theCAFR.
The City's net pension liability under GASB 68 reported as of June 30, 2019 is based on
the latest available GASB 67 /68 report prepared by the Marin County Employees
Retirement Association (MCERA), which was prepared as of June 30, 2018. The next
annual report is anticipated to be completed within the upcoming 30 days. The City does
not expect the report to have a material impact in the measurement of its net pension
obligation of$110.6 million reported in this year's financial reports.
During fiscal year 2018-2019, the City made significant progress towards improving our
essential facilities. Building from over a decade of community efforts to address San
Rafael's aging essential public safety facilities, the Essential Facilities project includes a
total of seven projects recommended for either replacement or renovation, including a new
public safety center across the street from City Hall. These new buildings will be
seismically-safe and provide modem facilities for our firefighters, police officers,
paramedics and dispatchers. They include an upgraded dispatch and communications
center, and a new classroom and training tower for emergency preparedness. The remodel
for Fire Station 54 and Fire Station 55 commenced in mid-2019 and is scheduled for
completion during the fiscal year 2020-2021. Construction of Fire Station 57 located at
3530 Civic Center Drive is expected to be completed before the end of 2019. Fire Station
52 located at 210 3rd Street was successfully completed in April 2019.
ECONOMIC FACTORS
The City has a diversified economic base, which includes an assortment of high-tech,
financial, service-based, entertainment and industrial businesses. Downtown San Rafael
provides a mix of restaurants, retail shops and financial institutions. The City's varied
economic base is reflected in its property tax base, which is 74% residential, 19%
commercial, 2% industrial, and 5% unsecured and others. The top 25 sales tax producers
provide 52% of overall sales tax revenues.
CITY OF SAN RAFAEL j 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 CITYOFSANRAFAEL.ORG
Gary 0 . Phillips , Mayor• Andrew Cuyugan McCullough, Vice Mayor• Maribeth Bushey , Councilmember • Kate Colin , Councilmember • John Gamblin, Councilmember
viii
The California economy is one of the largest in the world when measured by annual
gross domestic product, the growth of which exceeds that of the entire United States.
Unemployment has reached a r~cord low of 4.0% in September and the current period of
employment expansion has reached 115 months, surpassing the longest previous
expansion of the 1960's.
Locally, Marin County's economic indicators remain positive with an unemployment
rate that is among the lowest in the State at 2.4% and per capita income is about twice
the national average at $68,879. The housing market also remains in strong standing
with the median sales price for a single-family home increasing 15% in 2018.
Demographic Data
The following is a sample of demographic and economic attributes that make San Rafael an
exceptional place to live and work.
~ Economic development organizations in San Rafael include the San Rafael Chamber of
Commerce, Downtown Business Improvement District, and the Marin Economic
Forum.
~ Marin County's top 10 employers ·include Kaiser Permanente, Marin Health Medical
Center, Dominican University of California, Marin Community Clinics, Novato
Community Hospital, Hospice by the Bay, W Bradley Electric, Wells Fargo,
Community Action Marin, and BioMarin.
~ Major shopping areas, as measured in available retail square footage, include the
Downtown corridor (938,000 aggregate), Northgate Mall (725,000), Montecito Center
(130,000) and Northgate One (113,900):
~ The top three sales tax categories in 2018 for San Rafael were: 1. Autos and
Transportation (25.1 %), 2. Building and Construction (16.9%), and 3. General
Consumer Goods (13.9%).
~ Several hotels and motels support tourism activity, led by a combined 471 rooms in the
Embassy Suites and Four Points Sheraton. Citywide, the total number of hotel rooms
is 787.
~ Establishing and maintaining affordable residential housing for sale and lease continues
to be a challenge both in San Rafael and throughout Marin County. The median rent
for an apartment in San Rafael is $2,605. The median home value in San Rafael is
$1,051,500.
CITY OF SAN RAFAEL I 1400 FIFTH AVE NU C, SAN fiMAcL, LALl~Uf/NIA 94!,/Ul I LI rYuFSANRAFAEL.ORG
Gary 0 . Phillips, Mayor• Andrew Cuyugan McCullough , Vice Mayor• Maribeth Bushey, Councilmember • Kate Colin, Councilmember • John Gamblin . Councilmember
ix
Recent growth and economic vibrancy:
• San Rafael ranked No. 6 on the 2018 Milken Institute Best-Performing Small Cities
Index. This index provides an objective benchmark for examining the underlying
factors and identifying unique characteristics of economic growth in metropolitan
areas. The index uses metrics such as job creation, wage gains, and technology
developments to evaluate the relative growth of metropolitan areas.
• San Rafael ranked No. 3 on the SMU National Center for Arts Research Vibrancy
Index. This overall index is composed of three dimensions: supply, demand, and
government support. Supply is assessed by the total number of arts providers in the
community, including the number of arts and culture organizations and employees,
independent artists, and entertainment firms. Demand is gauged by the total
nonprofit arts dollars in the community, including program revenue, contributed
revenue, total expenses, and total compensation. Lastly, the level of government
support is based on state and federal arts dollars and grants.
• San Rafael was named one of the most unique art towns in the United States in an
article published by The Storage Space citing Art Works Downtown, the Marin
Society of Artists, Youth in Arts, and the California Film Institute as highlights.
• The Grand A venue Pedestrian bridge was completed connecting downtown with
east San Rafael communities and providing improved accessibility for bicyclists
and pedestrians.
• As part of San Rafael's Essential Facility projects, the city completed construction
of Fire Station 52 located at 210 3rd Street replacing the original station built in
1958.
• San Rafael implemented a pilot program to regulate cannabis business activity,
including zoning changes and licensing in an effort to enhance revenues for
regulatory efforts and other city services.
FINANCIAL INFORMATION
The City's management is responsible for establishing and maintaining internal controls to
ensure that the City's assets are adequately protected from loss, theft or misuse. In addition,
management controls ensure that proper accounting data is collected so as to prepare
reports in conformance with generally accepted accounting principles.
CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 CITYOFSANRAFAEL.ORG
Gary 0 . Phillips, Mayor• Andrew Cuyugan McCullough, Vice Mayor• Maribeth Bushey , Councilmember • Kate Colin , Councllmember • John Gamblin , Councllmember
x
Internal accounting controls are designed to provide reasonable, but not absolute, assurance
regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition;
and (2) the reliability of financial records for preparing financial statements and
maintaining accountability for assets. The concept of reasonable assurance recognizes that
the cost of a control should not exceed the benefits likely to be derived. All internal control
evaluations occur within the above framework. It is management's belief that the City's
internal accounting controls adequately safeguard assets and provide reasonable assurance
that financial transactions are properly recorded.
The City develops a budget based upon City Council priorities and department objectives.
The Finance Department maintains a traditional line item budget by major function. Budget
control is accomplished at the functional or division level within each fund. This budget
creates a comprehensive management and fiscal system aimed at achieving the objectives
of each operating level consistent with those that have been set for the community by the
City Council. Each department director is responsible for accomplishing goals within his or
her functional area and monitoring the use of her or his budget allocations consistent with
policies set by the City Council and monitored by the City Manager.
ACKNOWLEDGMENTS
The preparation of this City-wide document would not have been possible without the
assistance of each of the City's departments. In addition, Finance support staff Sara Smith,
Shawn Plate, Whitney Fry, Andrew Thompson and Flora Xu, led by Accounting Manager
Van Bach and Finance Director Nadine Atieh Hade were key to the timely issuance of this
report. We believe this document meets the Government Finance Officers Association's
(GFOA) Certificate of Achievement for Excellence in Financial Reporting requirements
and will be submitting it to the GFOA to determine its eligibility. If accepted; this will
mark the eighth consecutive year for which the City received the award.
Lastly, we appreciate the ongoing leadership and support from the Mayor, City
Councilmembers and the City Council Finance Committee made up of Mayor Phillips and
Councilmember John Gamblin. Their strong commitment to financial accountability and
stewardship provide inspiration to the organization and motivate a high level of achievement.
Respectfully submitted,
J~~ City Manager
~~~]~
Nadine Atieh Hade
Finance Director
CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 CITYOFSANRAFAEL ORG
Gary 0 . Phillips, Mayor• Andrew Cuyugan McCullough , Vice Mayor• Maribeth Bushey, Councilmember • Kate Colin , Councilmember • John Gamblin , Councilmember
MISSION STATEMENT
The Mission of the City of San Rafael is to enhance the quality of
life and to provide for a safe, healthy, prosperous and livable
environment in partnership with the community.
VISION STATEMENT
Our vision for San Rafael is to be a vibrant economic and cultural
center reflective of our diversity, with unique and distinct
neighborhoods in a beautiful natural environment, sustained by
active and informed residents and a responsible innovative local
government.
January 1996
xi
SAN RAFAEL
THE CITY WITH A MISSION
City Council and Staff
As of November 8, 2019
City Council
Gary O. Phillips, Mayor
Andrew McCullough, Vice Mayor
Kate Colin, Councilmember
Maribeth Bushey, Councilmember
John Gamblin, Councilmember
Elected Officials
Rob Epstein, City Attorney
Lindsay Lara, City Clerk
Executive Team
Jim Schutz, City Manager
Cristine Alilovich, Assistant City Manager
Diana Bishop, Chief of Police
Chris Gray, Fire Chief
Bill Guerin, Public Works Director
Paul Jensen, Community Development Director
Susan Andrade-Wax, Library & Recreation Director
Nadine Atieh Hade, Finance Director
Rebecca Woodbury, Director of Digital Service & Open Government
Shibani Nag, Human Resources Director
Andrew Hening, Homeless Initiatives Director
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SAN RAFAEL
THE CITY WITH A MISSION
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LOCATION MAP
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ORGANIZATIONAL CHART
Electorate
City ClerkCity Attorney Mayor
& City Council
Boards &
Commissions
Assistant City
Manager
Finance
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Initiativesxiv~SAN RAFAEL
~ THE CITY WITH A M ISSION
xv
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Rafael
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2018
Executive Director/CEO
Station 52
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
City of San Rafael, California
Report on Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of San Rafael (City),
California, as of and for the year ended June 30, 2019, and the related notes to the financial statements,
which collectively comprise the City’s basic financial statements as listed in the Table of Contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of the financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit
the component unit financial statements of the San Rafael Sanitation District, which represents 24%, 36%,
and 14%, respective, of the assets, net position, and revenues of the primary government. Those financial
statements were audited by other auditors, whose report thereon has been furnished to us and our opinion,
insofar as it relates to the amounts included for the San Rafael Sanitation District, is based solely on the
report of these auditors. We conducted our audit in accordance with auditing standards generally accepted
in the United States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
1
Accountancy Corporation
3478 B uski rk Ave nu e, Suite 215
Pleasant Hill, CA 94523
M MAZE
& ASSOCIATES
T 925.930.0902
F 925.930.0135
E maze@mazeassociates.com
w mazeassociates.com
Opinions
In our opinions, based on our audit and the report of other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, each major fund, the aggregate remaining fund information and the
discretely presented component unit of the City as of June 30, 2019, and the respective changes in
financial position and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Emphasis of matter
Management adopted the provisions of the following Governmental Accounting Standards Board
Statement, which became effective during the year ended June 30, 2019:
Governmental Accounting Standards Board Statement 88 – Certain Disclosures Related to Debt
including Direct Borrowings and Direct placements. See Note 6 to the financial statements for
relevant disclosures.
The emphasis of these matters does not constitute a modification of our opinion.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management’s
Discussion and Analysis and required supplementary information, as listed in the Table of Contents, be
presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The Introductory Section, Supplementary Information,
and Statistical Section as listed in the Table of Contents are presented for purposes of additional analysis
and are not required parts of the basic financial statements.
The Supplementary Information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the Supplementary
Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
2
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
This analysis of the City of San Rafael’s (City) financial performance provides an overview of the City’s financial
activities for the fiscal year ended June 30, 2019. Please read it in conjunction with the basic financial statements
and the accompanying notes to those basic financial statements.
FINANCIAL HIGHLIGHTS
Government-wide:
Net Position – The assets and deferred outflows of the City exceeded its liabilities and deferred inflows as
of June 30, 2019 by $146.8 million.
Activities – During the fiscal year the City’s total revenues of $123.2 were greater than expenses of
$106.6 million for governmental and business-type activities.
Changes in Net Position – The City’s total net position increased by $16.5 million in fiscal year 2018-2019
as compared to the net position of the previous year. Net position of governmental activities increased by
$16.7 million, while net position of the business-type activities decreased by $200 thousand.
Fund Level:
Governmental Funds – As of the close of fiscal year 2018-2019, the City’s governmental funds reported
combined ending fund balances of $67.8 million, a decrease of $20.0 million primarily due expenditure of
bond proceeds from the fund balance of the prior year. Of this total amount, $65 thousand is nonspendable,
$53.3 million is restricted, $1.9 million is committed, $11.5 million is assigned, and $1.1 million is
unassigned.
Governmental fund revenues totaled $117.6 million, an increase of $10.2 million from the those of the
previous fiscal year. Approximately $8 million was attributable to the Gas Tax Fund in the form of grant
and federal reimbursements for expenses incurred on capital projects. The remainder was due to positive
trends in property tax and sales tax performance, and reimbursements from the County of Marin for major
improvements to Fire Station 57. Aside from these items, the City experienced modest to moderate growth
in revenues.
Governmental fund expenditures increased by $18.5 million to $138.9 million, from $120.4 million in the
prior year, due primarily to public safety infrastructure and other capital improvement program
expenditures.
Enterprise fund operating revenue increased $158 thousand to a total of $5.4 million. Enterprise operating
expenditures totaled $4.9 million, an increase of $0.3 million over the previous year.
OVERVIEW OF FINANCIAL STATEMENTS
The Comprehensive Annual Financial Report is composed of the following:
1.Introductory section, which includes the Transmittal Letter and general information
2.Management’s Discussion and Analysis (this part)
3.Basic Financial Statements, which include the Government-wide and the Fund financial statements
along with the Notes to these financial statements
4.Combining statements for Non-Major Governmental Funds, Internal Services Funds, and Fiduciary
Funds
5.Statistical Information
5
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which
have three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to
the Basic Financial Statements.
The basic financial statements include the City (primary government) and all legally separate entities (component
units) for which the government is financially accountable. This report also contains other supplementary
information in addition to the basic financial statements for further information and analysis.
Government-wide Financial Statements
The government-wide financial statements present the financial picture of the City and provide readers with a broad
view of the City’s finances. These statements present governmental activities and business-type activities
separately and include all assets of the City (including infrastructure) as well as all liabilities (including long-term
debt). Additionally, certain interfund receivables, payables, and other interfund activity have been eliminated as
prescribed by Governmental Accounting Standards Board (GASB) Statement No. 34.
The Statement of Net Position and the Statement of Activities and Changes in Net Position report information about
the City as a whole. These statements include all assets and liabilities of the City using the accrual basis of
accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s
revenues and expenses are taken into account, regardless of when cash is received or paid.
The Statement of Net Position presents information on all of the City’s assets and liabilities, with the difference
between the two reported as net position. Over time, increases in net position may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The Statement of Activities and Changes in Net Position presents information showing how the City’s net position
changed during the year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of timing of related cash flows.
In the Statement of Net Position and the Statement of Activities and Changes in Net Position, City activities are
separated as follows:
Governmental Activities – Most of the City’s basic services are reported in this category, including Public Safety,
Public Works and Parks, Community Development, Cultural and Recreation, and Government Administration
(finance, human resources, legal, City Clerk and City Manager operations). Property tax, sales and use taxes, user
fees, interest income, franchise fees, hotel taxes, business licenses, and property transfer taxes, plus state and
federal grants finance these activities.
Business-type Activities – The City charges fees to customers to cover the full costs of certain services it provides.
The City’s Parking Services program is the City’s sole business-type activity.
Discretely Presented Component Units – The government–wide financial statements include not only the City itself
(the primary government), but also the San Rafael Sanitation District, a legally separate entity for which the City is
financially accountable. Financial information for the San Rafael Sanitation District is reported separately from the
financial information presented for the primary government.
The government-wide financial statements can be found on pages 25 through 27 of this report.
6
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
Fund Financial Statements and Major Component Unit Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. The City, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City are
divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
The fund financial statements provide detailed information about each of the City’s most significant funds called
major funds. The concept of major funds and the determination of the major funds were established in the
Governmental Accounting Standards Board Statement No. 34. Each major fund is presented individually with all
non-major funds summarized and presented in a single column. Further detail on the non-major funds is presented
on pages 112 through 142 of this report.
Governmental Funds – Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information
may be useful in evaluating a government’s near-term financial capacity.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for government funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet
and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities. These
reconciliations are presented on the page immediately following each governmental fund financial statement.
The City has thirty-one governmental funds, of which four are considered major funds for presentation purposes.
Each major fund is presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances. The City’s four major funds are: the General
Fund, Traffic and Housing Mitigation, Gas Tax and Essential Facilities Capital Projects. Data from the other
twenty-seven governmental funds are combined into a single, aggregated presentation. The basic governmental
fund financial statements can be found on pages 30 through 34 of this report. Individual fund data for each of these
non-major governmental funds is provided in the form of combining statements on pages 112 through 132 of this
report.
Proprietary Funds – The City maintains two different types of proprietary funds - enterprise funds and internal
service funds. Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City uses an enterprise fund to account for its Parking Services program
and reports it as a major fund. Internal service funds are used to accumulate and allocate costs internally among the
City’s various functions. The City uses internal service funds to account for its building maintenance; vehicle,
equipment and computer replacement; workers’ compensation; general liability; self-insured dental program; other
employee and retiree benefits programs. Because these services predominantly benefit governmental rather than
business-type functions, they have been included within governmental activities in the government wide financial
statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more
detail. Like the government-wide financial statements, proprietary fund financial statements use the accrual basis
of accounting. There is no reconciliation needed between the government-wide financial statements for business-
type activities and the proprietary fund financial statements.
7
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
The basic proprietary fund financial statements can be found on pages 36 through 38 of this report.
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of
those funds are not available to support the City’s own programs. The City acts as an agent on behalf of others,
holding amounts collected, and disbursing them as directed or required. The City’s fiduciary activities are reported
in the separate Statements of Fiduciary Net Position and the Agency Funds Statement of Changes in Assets and
Liabilities. The City’s fiduciary funds include a private purpose trust fund to account for activities of the City of
San Rafael Successor Agency and an agency fund that accounts for resources held by the City in a custodial
capacity for the Pt. San Pedro Road Assessment District. Information for the fiduciary funds can be found on pages
40 through 41 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements. The notes to the financial statements can be found on pages
43 through 93 of this report.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information. One section includes budgetary comparison statements for the major funds (general,
gas tax, traffic and housing mitigation, and essential facilities capital projects). The other section is a schedule of
funding progress for the Marin County Employees’ Retirement System. All budgeted positions that are filled by
either full-time or permanent part-time employees (working seventy-five percent of full-time equivalent) are
eligible to participate in this system. Required supplementary information can be found on pages 94 through 106 of
this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
Net position is one measurement of the City’s financial position. During this fiscal year, the net position of the City
was $136.9 million from Governmental Activities and $9.9 million from Business-type Activities, for a total of
$146.8 million. This represents an increase of $16.5 million from the prior year net position.
8
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2019 and 2018:
Increase Increase
2019 2018 (Decrease) 2019 2018 (Decrease)
Current and other assets $102,788 $126,251 ($23,463) $3,283 $3,199 $84
Capital assets 254,163 221,978 32,185 15,941 16,151 (210)
Total assets 356,951 348,229 8,722 19,224 19,350 (126)
Deferred outflows (Notes 9 and 11)38,415 44,932 (6,517) 1,178 1,364 (186)
Current and other liabilities 14,479 19,363 (4,884) 477 439 38
Noncurrent liabilities 208,131 219,709 (11,578) 8,953 9,151 (198)
Total liabilities 222,610 239,072 (16,462) 9,430 9,590 (160)
Deferred inflows (Notes 9 and 11)35,838 33,947 1,891 1,130 1,060 70
Net Position:
Net investment in capital assets 231,844 217,170 14,674 11,023 10,952 71
Restricted 23,289 25,550 (2,261) 0 0 0
Unrestricted (118,215) (122,577) 4,362 (1,179) (887) (292)
Total net position $136,918 $120,143 $16,775 $9,844 $10,065 ($221)
Governmental Activities Business-Type Activities
Summary of Net Position
(in thousands)
Current Governmental assets decreased by $23.5 million, primarily due to the expenditure of bond proceeds for
public safety facility construction and improvements. The $32.2 million increase in Capital assets reflects project-
to-date activity for this activity in combination with major traffic infrastructure improvements. The decrease of $6.5
million is primarily a result of recognition of prior year deferred outflows related to the City’s change in proportion
of its net pension liability in relation to the other members within the larger MCERA pool. Current and other
liabilities decreased by approximately $4.9 million, primarily due to a decrease in accounts payable as a result of a
higher level of construction activity in the prior year. Noncurrent governmental liabilities decreased by $11.6
million, a result of the net decrease in net pension liability when compared to the prior year (Note 9). Deferred
inflows experienced a modest increase as amortization of prior balances was offset by a large investment gain with
the MCERA trust that will be recognized in future years. In order to decrease the volatility of the measurement of
net pension liability gains and losses in excess of those projected are capitalized and amortized over a five-year
period.
The net position in business-type activities reflects the fiscal activity of the Parking Services program and
decreased by $221 thousand from the previous year. Capital assets decreased by $210 thousand due to current year
depreciation. The decrease in deferred outflows was due to the proportion change of net pension liability
mentioned above. The $198 thousand decrease in noncurrent liabilities is driven by the decrease in net pension
liabilities.
9
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
At June 30, 2019, the largest portion of net position in the amount of $242.9 million consisted of the City’s
investment in capital assets net of related debt. This component represents the total amount of funds required to
acquire capital assets less any related debt used for such acquisition that is still outstanding. The City uses these
assets to provide services to residents. The capital assets of the City are not sources of income for repayment of
debt as most assets are not revenue generating and generally are not liquidated to repay debt. Therefore, debt
service payments are funded from other sources available to the City.
A portion of the City's net position, $23.3 million, is subject to external restrictions, and their use is determined by
those restrictions whether legal or by covenant. The remaining portion, unrestricted negative $119.4 million,
represents the extent to which the net investment in capital assets and restricted net position exceed total assets.
Invested in Capital Assets (net)$242,867
Restricted 23,289
Unrestricted (119,395)
Total Net Position $146,761
Net Position as of 6/30/2019
Total = $ 146,761 (in thousands)
10
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
Statement of Activities - Governmental
The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ended
June 30, 2019 and 2018:
Increase
2019 2018 (Decrease)
REVENUES
Program revenues:
Charges for services $19,904 $19,142 $762
Operating grants and contributions 4,585 5,143 (558)
Capital grants and contributions 8,042 975 7,067
Total program revenues 32,531 25,260 7,271
General revenues:
Property taxes 25,903 24,627 1,276
Sales taxes 35,627 34,120 1,507
Paramedic tax 4,936 4,923 13
Transient occupancy tax 3,203 3,115 88
Franchise tax 3,627 3,727 (100)
Business license tax 2,788 2,790 (2)
Other taxes 1,783 2,246 (463)
Investment earnings 1,450 557 893
Miscellaneous 5,905 5,992 (87)
Total general revenues 85,222 82,097 3,125
TOTAL REVENUES 117,753 107,357 10,396
EXPENS ES
General government 11,968 9,836 2,132
Public safety 49,899 53,231 (3,332)
Public works and parks 19,271 22,085 (2,814)
Community/economic development 5,782 4,040 1,742
Culture and recreation 12,819 13,286 (467)
Interest on long-term debt 1,848 884 964
TOTAL EXPENSES 101,587 103,362 (1,775)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 16,166 3,995 12,171
Transfers in 609 633 (24)
Total Other Financing Sources (Uses) 609 633 (24)
Net Change in Net Position 16,775 4,628 12,147
Beginning Net Position 120,143 115,515 4,628
Ending Net Position, June 30 $136,918 $120,143 $16,775
Governmental Activities
Summary of Changes in Net Position
(in thousands)
11
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
The City’s governmental activities net position increased by $16.8 million during fiscal year 2018-2019. Year-over-
year increases revenues of $10.4 million and the decrease in expenses of $1.8 million contributed to a net change in
position of $12.2 million. Revenue increases were concentrated in the areas of capital grants, property taxes and
sales taxes, while decreases in program expenses were concentrated in public safety and public works. Reductions
in expenses for public safety and public works are the result of fluctuations in internal service activity between
fiscal years as well as required pension and OPEB related adjustments. Due to the nature of allocations of expenses
in the government-wide statements, fluctuation analysis on program expenses is better performed on the fund level
financial statements.
Growth in property taxes stemmed from the 2% proposition 13 inflation adjustment as well a restoration of $31
million of previously reduced values to residential properties. These are homes that are below the trended
Proposition 13 values that received reductions between 2008 and 2012. In addition, the sale and improvement of
large commercial properties in 2017 were reflected on the tax roll for the fiscal year ended June 30, 2019.
The year-over-year $1.5 million increase in sales taxes was attributed to a large order of buses purchased by
GGBHTD and unexpected merchant gains primarily attributable to building and construction which is not expected
to be ongoing. Furthermore, the State implemented a new sales tax remittance system in the last fiscal year and as a
result of system errors, sales tax remittance was delayed for months which caused the current fiscal year to include
sales tax revenue that would have been for the prior year had it been remitted timely.
The decrease in fiscal year 2018-2019 governmental expenses was due, in part to pension and OPEB expense
adjustments recorded under GASB 68 and 75, respectively, as well as reduced internal service fund expenditure
allocations resulting primarily from Workers’ Compensation premiums and claims during the year.
The following graph shows governmental revenues by source:
12
Revenues by Source
Governmental Activities
Capital gr.ants and
contributions, 6.83%
Operating grants and
contributions, 3.89%
Miscellaneous, 5.01%
Investment earnings,
1.24%
Charges for services,
16.90%
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
Total expenses for governmental activities were $99.7 million (excluding interest on long-term debt of $1.8
million). Program revenues offset total expenditures as follows:
Those who directly benefited from programs contributed $19.9 million in charges for services.
A total of $12.6 million in operating and capital projects were funded by outside agencies through
operating, capital grants, and contributions.
As a result, total expenses that were funded by tax revenues, investment income, other general revenues and fund
balance were $67.2 million.
Functional expenses for the year ended June 30, 2019 were as follows:
Function Amount Percent of Total
General government $11,918 11.7%
Public safety 49,154 48.4%
Public works and parks 20,032 19.7%
Community development 5,825 5.7%
Culture and recreation 12,810 12.6%
Interest on debt 1,848 1.8%
Total expenses $101,587 100%
Expenses by Function
(in thousands)
13
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$-
Publ i,c Safety
Expenses and Program !Revenues
Governmenta I Activities
(in thousands)
Public Worts and
Parks
Culture and
Recreation
Genera l Government Community
Development
■ Program Revenues ■ Expenses
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
Statement of Activities – Business-type
Increase
2019 2018 (Decrease)
Revenues
Program revenues:
Charges for services $5,362 $5,204 $158
Total program revenues 5,362 5,204 158
General revenues:
Investment Income 64 24 40
Total general revenues 64 24 40
TOTAL REVENUES 5,426 5,228 198
Expenses
General government 5,039 4,628 411
TOTAL EXPENSES 5,039 4,628 411
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 387 600 (213)
OTHER FINANCING SOURCES (USES)
Transfers out (608) (633) 25
Total Other Financing sources (uses)
Net Change in Net Position (221) (33) (188)
Net Position, Beginning 10,064 10,097 (33)
Net Position, Ending $9,843 $10,064 ($221)
Summary of Changes in Net Position
For the periods ended June 30, 2019 and 2018 (in thousands)
Business-Type Activities
The net position for business-type activities decreased from the prior year by $221 thousand.
Parking services is the City’s only business-type activity with income derived from program revenues of
$5.4 million. Program revenues include parking meter coin income of $2.0 million and parking garage
hourly and monthly parking income of $1.2 million. Revenues also include parking and non-vehicle code
fines totaling $2.2 million. Total expenses for parking services were $5.0 million and transfers out to
general fund and non-major governmental fund for support totaled $608 thousand during the fiscal year
2018-2019. The year-over-year increase in expenses was driven by routine pension-related accounting
adjustments in the parking fund.
14
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS
Governmental Funds
Fund Balance Classifications
In February 2009, the Governmental Accounting Standards Board issued Statement No. 54 (GASB 54), Fund
Balance Reporting and Governmental Fund Type Definitions. The objective of GASB 54 was to enhance the
usefulness of fund balance information by providing clearer fund balance classifications that can be applied. Under
GASB 54, fund balances are classified in five categories: nonspendable, restricted, committed, assigned, and
unassigned based on hierarchy of constraint. Further details on fund balance classifications can be found in
Note 8B.
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances
of spendable resources. Such information is useful in assessing the City’s financial capacity. In particular,
unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at
the end of the fiscal year.
As of June 30, 2019, the City reported a combined ending fund balance of $67.8 million of all its governmental
funds (a decrease of $20.0 million from the prior year): $65 thousand is non-spendable, $53.3 million is restricted,
$1.9 million is committed, $11.5 million is assigned, and $1.1 million is unassigned.
General Fund – The General Fund is the primary operating fund of the City.
General Fund – The fund balance of the General Fund as of June 30, 2019 was $12.5 million (an increase of
$310 thousand from the prior year balance): $37 thousand is non-spendable, $11.4 million is assigned and $1.1
million is unassigned. The assigned portion of the balance includes $7.9 million for emergency and cash flow
needs.
General Fund Budgetary Highlights:
The original adopted General Fund budget projected total revenue of $78.9 million and transfers-in of $1.7 million
for total resources of $80.6 million. This budget appropriated expenditures of $75.6 million and transfers-out of
$5.9 million for total appropriations of $81.5 million. Expenditures were later increased to $78.5 million to
accommodate interest incurred on 2018’s bond proceeds and accordingly, transfers in were similarly increased to
account for the transfer of funds from the Essential Facilities Capital Projects Fund to cover the interest charges.
Transfers-out were increased by $404 thousand based on estimated Measure E sales tax increases transferred to the
Essential Facilities Fund and grant matching allocated to other funds.
Actual revenues, at $80.3 million, were higher than the original budgeted revenues by $1.4 million. This positive
performance was primarily due to stronger-than-anticipated property tax and sales tax revenues. Actual
expenditures of $78.0 million were greater than the original budgeted expenditures by $2.5 million, primarily due to
interest on the 2018 bond issuance previously unbudgeted.
Fiscal year 2018-2019 General Fund revenues and transfers of 84.6 million exceeded expenditures, operating and
capital transfers out of $84.3 million by $0.3 million. Net operating results were sufficient to ensure that the
General Fund Emergency and Cash Flow Reserve maintained its target level of 10 percent of actual expenditures.
15
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
Adopted Budget Revised Budget Actual
Revenues $78,896 $79,016 $80,335
Transfers in 1,687 4,321 4,321
Total resources 80,583 83,337 84,656
Expenditures 75,574 $78,547 78,068
Operating transfers out 1,850 2,085 2,085
Capital Transfers out 4,025 4,194 4,194
Total uses 81,449 84,826 84,347
Net Results ($866) (1,489) $309
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2019 (in thousands)
Traffic and Housing Mitigation Fund – The City uses this fund to collect developer contributions to be used for
major street improvement and housing infrastructure projects. During the year, the fund balance decreased from
$6.3 million to $5.2 million. Revenues totaled $2.5 million, while $3.6 million was charged against this fund to
support the maintenance of the City-wide traffic model. Rail crossing improvements at Anderson Drive accounted
for charges of $3.4 million and a project to install new queue cutter signals on 2nd and 3rd streets next to the rail
crossing accounted for $117 thousand. The balance in the fund is being held in anticipation of major street projects
identified in the General Plan 2020 and other qualifying expenditures.
Gas Tax Fund – The City uses this fund to manage its allocation of State gasoline taxes and local funding for street
maintenance projects. Gas tax revenues were exceeded by expenditures and net transfers by $1.3 million in fiscal
year 2018-2019 resulting in a drop in fund balance from $6.0 million to $4.7 million. The activities for the year
were all planned and approved project work.
Expenditures during fiscal year 2018-2019 totaled $12.6 million. In addition to routine street-related maintenance
of $1.3 million, major expenditures included $5.2 million for Francisco Boulevard West multi-use pathway, $2.2
million for modifications to 2nd Street at Grand Avenue, $1.2 million for emergency slide repair at 70 Irwin, $382
thousand for improvements on G Street, $360 thousand to implement an Automated Traffic Signal Performance
Measures system, $333 thousand for emergency slide repair at 80 Upper Toyon, $228 thousand for emergency slide
repair at 21 San Pablo, and $200 thousand for sidewalk improvements to Francisco Boulevard.
The largest sources of revenues were $4.1 million in grant reimbursements for costs associated with the Francisco
Boulevard West multi-use pathway, $2.1 million in grant reimbursements for the Grand Avenue Connector Project,
$1.3 million from State gasoline taxes, $1.2 million in development impact fees, $1.1 million in State RMRA (Road
Maintenance and Rehabilitation Account) funding, and $647 thousand in local Measure A funding.
Essential Facilities Capital Projects Fund – The City uses this fund to account for major capital improvements to
public safety facilities. The currently active construction projects are Fire Station 57 and the Public Safety Center.
Expenditures during fiscal year 2018-2019 totaled $23.9 million, of which $4.1 million was transferred from the
General Fund from an allocation of Measure E Transaction and Use Tax, $3.3 million from reimbursements from
the County of Marin for its share of Fire Station 57 costs, and $1.1 million was allocated from paramedic tax funds.
16
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
Non-major Governmental Funds – The City’s non-major funds are presented in the basic financial statements in
the aggregate. At June 30, 2019, non-major funds had a total fund balance of $13.0 million, a $1.2 million decrease
over that of the previous year. The largest fund balance decrease, $456 thousand, was recorded in the Emergency
Medical Services Fund as result of planned capital transfers to support the delivery of medical transport services.
The Measue A Open Space fund decreased by $404 thousand as the fund balance was used for planned CIP projects
including the Bret Harte restroom installation. The Parkland Dedication fund decreased by $345 thousand as result
of capital outlay for renovation and expansion of Albert Park.
Of the ending total non-major fund balances of $13.0 million: $10.9 million (84%) is legally restricted for specific
purposes by external funding source providers, $1.9 million (15%) is committed for special purposes by the City
Council, $27 (less than 1%) thousand is nonspendable, and $ 0.1 million (1%) is assigned. Additional information
about these aggregated non-major funds is presented in the combining statements which immediately follow the
required supplementary information.
Proprietary Funds
The City’s proprietary funds are presented in the basic financial statements in a manner similar to that found in the
government-wide financial statements, but in more detail. As noted in the Summary of Changes in Net Position –
Business-type Activities at page 26, the City’s Enterprise fund net position decreased by $221 thousand during the
fiscal year. The Parking Services Fund is the City’s sole business-type (Enterprise) activity.
The proprietary fund operating revenue increased by $158 thousand in fiscal year 2018-2019 to $5.4 million. The
Enterprise fund operating expenses were $4.9 million in fiscal year 2018-2019, an increase of $0.4 million over the
prior fiscal year. The change in operating expenses was primarily driven by the recognition of pension and OPEB
expenses under Governmental Accounting Standards Board Statement Nos. 68 and 75.
The City’s Internal Service Funds are also reported in this Proprietary Fund classification. In fiscal year 2018-2019,
the Internal Services Funds were comprised of: Building Maintenance, Vehicle Replacement, Equipment
Replacement, Employee Benefits, Liability Insurance, Workers’ Compensation, Dental Insurance, Employee
Retirement, OPEB/Retiree Medical, Radio Replacement, Telephone Replacement and Sewer Maintenance. The net
position of the Internal Service Funds increased by $775 thousand. Net investment in capital assets decreased by
$400 thousand, while unrestricted fund balance increased by $1.1 million. The decrease in capital assets resulted
primarily from depreciation of existing capital assets. The increase in unrestricted fund balance reflected the
deferral of vehicle purchases in the Vehicle Replacement Fund and increased allocation to the Workers
Compensation Fund. The other Internal Service Funds reported small-to-moderate changes to their respective net
positions.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2019
amounts to $270.1 million, net of accumulated depreciation of $182.5 million. This investment in capital assets
includes land, buildings, improvements, machinery and equipment, infrastructure and construction in progress.
Infrastructure assets are items that are normally immovable and of value only to the City such as roads, bridges,
streets and sidewalks, drainage systems, lighting systems, and similar items. The net addition to the City’s
investment in capital assets for the current fiscal year was $32.3 million, offset by accumulated depreciation of
$8 million.
17
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
Additions to capital assets during fiscal year 2018-2019 included:
Land Improvements: $0.7 million
Albert Park Improvements - $742k
Building and structure projects: $0.7 million
Victor Jones Park Improvements - $688k
Infrastructure: $4.2 million
Freitas-Las Gallinas Intersection Improvement - $3.5 million
Emergency Slide-80 Upper Toyon - $349k
G-Street Improvements Phase 2 - $383k
The City’s Capital Assets for the fiscal years ending June 30, 2019 and 2018 were as follows:
2019 2018
Governmental Activities
Land $83,662 $83,662
Construction in progress 69,822 35,720
Land improvements 9,763 9,020
Buildings and structures 44,247 43,559
Machinery and equipment 20,948 20,971
Infrastructure 203,818 199,560
Less accumulated depreciation (178,097) (170,514)
Subtotal Governmental Activities 254,163 221,978
Business-type Activities
Land 8,621 8,621
Buildings and structures 10,714 10,714
Machinery and equipment 1,042 1,128
Less accumulated depreciation (4,436)(4,313)
Subtotal Business-type Activities 15,941 16,150
Total Capital Assets $270,104 $238,128
Summary of Capital Assets
(in thousands)
Additional information on the City’s capital assets can be found in Note 5 on pages 61 through 63 of this report.
Debt Administration
The City’s debt obligations were stable year-over year and reflect payments of principal made during the year. The
debt of the former Redevelopment Agency is reported under the Successor Agency, which is presented as Private-
Purpose Trust Fund on the Statement of Fiduciary Net Position. (See Note 6 of the financial statements for
additional information on the debt obligations of the City and Note 15 for additional information on the Successor
Agency.) The City’s long-term obligations for the fiscal years ending June 30, 2019 and 2018 were as follows:
18
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
2019 2018
Governmental Activity Debt:
2018 Authority Lease Revenue Bond $53,104 $53,612
2010 Taxable Pension Obligation Bonds 3,765 4,185
PG & E City Hall HVAC Retrofit Note Payable 146 179
PG & E Street Light Retrofit Note Payable 7 49
PG & E Efficiency Note Payable 1,081 1,081
Subtotal Governmental Activity Debt 58,103 59,106
Business-type Debt:
PG & E Parking Lot Lighting Retrofit Note Payable 28 35
2012 Authority Lease Revenue refunding Bonds, as adjusted 4,890 5,164
Subtotal Business-type Debt 4,918 5,199
Total Long-Term Obligations $63,021 $64,305
Summary of Long-Term Debt
(in thousands)
19
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
ECONOMIC CLIMATE AND NEXT YEAR’S BUDGET
Ten years removed from the Great Recession, the US Economy continues to grow, officially reaching the longest
economic expansion in US history. The labor market has created over 2 million jobs per year since 2010.
However, growth is beginning to slow. According to the September Federal Open Market Committee meeting US
GDP Growth is forecasted to decline to 2.1% in 2019 versus 3% in 2018. GDP Growth is then expected to
decrease to 2% in 2020 and 1.8% in 2021 with unemployment and inflation expected to follow similar patterns.
California is on strong economic footing to begin the fiscal year with a GDP that would rank as the fifth largest
nation in the world. The state’s fiscal 2019 budget assumes slowed growth in line with national trends and seeks to
exercise fiscal prudence although GDP growth of 5.6% in 2018 outpaces the nation as a whole (2.9%) and
unemployment has recently reached a record low of 4%. This is taking place within a climate of uncertainty,
though, as the cost of living continues to rise and income inequality persists.
Locally, Marin County’s unemployment rate is among the lowest in the State at 1.9% and total employment figures
are forecasted to grow at an average rate of 0.9% through 2022. The new fiscal year begins with property tax
revenues projected to increase, however a gradual decline is projected over the next three years.
In San Rafael, property taxes are continuing to grow while sales taxes, having achieved a 4.3% gain over the
previous year are projected to start leveling off. The trend of consumer spending continues to shift to online
retailers and away from brick-and-mortar locations and the city is continuing to analyze results of the Wayfair
decision, however, its actual impact is currently unclear.
The City’s general fund has been fueled by the momentum of seven consecutive years of solid operating results.
Service levels have increased moderately over the past few years and at the same time, the City is fully funding its
actuarially-determined, required contributions for both pension and retiree medical (OPEB) obligations.
Reductions in staffing and service levels, coupled with deferred maintenance of City facilities as method of coping with
past economic downturns means that, although the City is able to maintain and, in some cases, improve on its level of
services, there are still critical unfunded capital and maintenance needs.
Sales tax and transactions and use tax (Measure E) combined, represent the City’s largest tax revenue generators. The
City’s second largest tax generator is property tax. The City is expecting the fiscal year 2019-2020 tax roll to increase by
approximately four percent over the previous year. Other tax and non-tax revenues are expected to grow moderately, in the
range of two to four percent.
The City’s largest expenditure relates to personnel costs. Salaries and benefits are tied to the labor agreements with
each bargaining group. With the exception of SEIU-Childcare, which has a two-year contract expiring on October 31,
2021, the City’s labor units are all operating under two-year contracts that expire on June 30, 2020.
In the bond markets, the San Rafael name is recognized as a high credit municipal entity given both the City’s financial
strength and solid financial management. Because the City’s bonds are highly sought by investors and are competitive in
the marketplace, the City can borrow funds at reasonably attractive rates. The City maintains an AA issuer credit rating
with Standard & Poor’s Ratings Services.
20
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2019
REQUEST FOR INFORMATION
This financial report is designed to provide our residents, businesses, customers, and investors and creditors with a
general overview of the City’s finances and to demonstrate the City’s accountability for providing high quality
services within the limits of our fiscal resources. If you have questions about this report or need additional
financial information, contact the City of San Rafael – Finance Department at 1400 Fifth Avenue, Room 204, San
Rafael, California 94901.
21
CITY OF SAN RAFAEL
STATEMENT OF NET POSITION AND
STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial
activities and financial position. They are also referred to as Government-wide financial statements.
The Statement of Net Position reports the difference between the City’s total assets and the City’s total
liabilities, including all the City’s capital assets and all its long-term debt. The Statement of Net Position
focuses the reader on the composition of the City’s net position, by subtracting total liabilities from total
assets.
The Statement of Net Position summarizes the financial position of all of the City’s Governmental Activities
in a single column, and the financial position of all the City’s Business-type Activities in a single column;
these columns are followed by a total column which presents the financial position of the entire City.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special
Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these
Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund
transactions and balances. The City’s Business-type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on
the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of
when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial
statements, which reflect only current assets, current liabilities, available revenues and measurable
expenditures.
The Statement of Activities presents the City’s expenses first, listed by program, and follows these with
the expenses of its business-type activities. Program revenues - that is, revenues which are generated
directly by these programs - are then deducted from program expenses to arrive at the net expense of each
governmental and Business-type program. The City’s general revenues are then listed in the
Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net
Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City and the San Rafael Joint Powers
Financing Authority which are legally separate but are considered to be component units of the City
because they are controlled by the City, which is financially accountable for their activities. The balances
and the activities of the San Rafael Sanitation District, a discretely presented component unit, are
included in these statements in a separate column.
23
CITY OF SAN RAFAEL
STATEMENT OF NET POSITION
JUNE 30, 2019
Component
Unit
Primary Government San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
ASSETS
Cash and investments available for operations (Note 2)$46,061,683 $3,233,626 $49,295,309 $34,255,365
Restricted cash and investments (Note 2)33,285,009 33,285,009
Receivables:
Accounts 3,061,308 31,401 3,092,709 1,638,629
Taxes 7,493,119 7,493,119
Grants 6,639,211 6,639,211
Interest 168,845 168,845
Loans (Note 4)400,201 400,201
Long-term receivable from the Successor Agency (Note 15D)380,887 380,887
Long-term receivable from San Rafael Sanitation District (Note 4F)4,613,963 4,613,963
Internal balances (Note 3B)(15,357) 15,357
Prepaid expenses and others 698,871 3,400 702,271 58,166
Capital assets (Note 5):
Nondepreciable 153,484,773 8,620,853 162,105,626 1,649,704
Depreciable, net 100,678,702 7,320,355 107,999,057 50,643,188
Total Assets 356,951,215 19,224,992 376,176,207 88,245,052
DEFERRED OUTFLOWS
Deferred outflows related to pension (Note 9)31,683,580 1,019,387 32,702,967
Deferred outflows related to OPEB (Note 11) 6,731,530 158,470 6,890,000
Total Deferred Outflows 38,415,110 1,177,857 39,592,967
LIABILITIES
Accounts payable 10,058,042 125,790 10,183,832 1,066,236
Deposits payable 194,417 194,417
Interest payable 42,460 42,460
Developer deposits payable 581,717 581,717
Unearned revenue 265,425 265,425
Claims payable (Note 13):
Due in one year 2,353,275 2,353,275
Due in more than one year 7,368,273 7,368,273
Compensated absences (Note 1L):
Due in one year 541,020 17,308 558,328
Due in more than one year 3,783,824 121,153 3,904,977
Long-term debt (Note 6):
Due in one year 485,261 291,816 777,077
Due in more than one year 57,617,671 4,625,966 62,243,637
Long-term payable to the City of San Rafael, due in more than one year (Note 4F)4,613,963
Net OPEB liability, due in more than one year (Note 11)32,240,023 758,977 32,999,000
Net pension liability, due in more than one year (Note 9)107,121,341 3,446,517 110,567,858
Total Liabilities 222,610,289 9,429,987 232,040,276 5,680,199
DEFERRED INFLOWS
Deferred inflows related to pension (Note 9)33,116,207 1,065,479 34,181,686
Deferred inflows related to OPEB (Note 11)2,721,922 64,078 2,786,000
Total Deferred Inflows 35,838,129 1,129,557 36,967,686
NET POSITION (Note 8):
Net investment in capital assets 231,844,210 11,023,426 242,867,636 52,292,892
Restricted for:
Special revenue projects:
Housing and street improvements 10,821,214 10,821,214
Stormwater 402,544 402,544
Emergency medical services 813,346 813,346
Other 8,302,170 8,302,170
Capital projects 2,778,457 2,778,457
Debt service 171,143 171,143
Total Restricted Net Position 23,288,874 23,288,874
Unrestricted (118,215,177) (1,180,121) (119,395,298) 30,271,961
Total Net Position $136,917,907 $9,843,305 $146,761,212 $82,564,853
See accompanying notes to financial statements
25
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General government $11,967,641 $377,606 $134,515
Public safety 49,899,296 5,304,832 1,041,606
Public works and parks 19,270,613 4,158,338 3,248,299 $8,042,524
Community development 5,781,826 4,312,259
Culture and recreation 12,819,429 5,750,846 160,435
Interest on long-term debt and fiscal charges 1,848,263
Total Governmental Activities 101,587,068 19,903,881 4,584,855 8,042,524
Business-type Activities
Parking services 5,038,553 5,362,016
Total Business-type Activities 5,038,553 5,362,016
Total Primary Government $106,625,621 $25,265,897 $4,584,855 $8,042,524
Component Unit
San Rafael Sanitation District $12,601,257 $16,964,083 $5,907 $1,433,871
General revenues:
Taxes:
Property
Sales:
Sales and Use
Measure E half-cent sales
Measure E quarter-cent sales
Measure S
Paramedic
Transient occupancy
Franchise
Business license
Other
Investment earnings
Miscellaneous
Transfers (Note 3A)
Total general revenues and transfers
Change in Net Position
Net Position, beginning of year
Net Position, end of year
See accompanying notes to financial statements
Program Revenues
CITY OF SAN RAFAEL
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2019
26
Component
Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
($11,455,520)($11,455,520)
(43,552,858)(43,552,858)
(3,821,452)(3,821,452)
(1,469,567)(1,469,567)
(6,908,148)(6,908,148)
(1,848,263)(1,848,263)
(69,055,808)(69,055,808)
$323,463 323,463
323,463 323,463
(69,055,808)323,463 (68,732,345)
$5,802,604
25,903,240 25,903,240 1,727,221
22,840,700 22,840,700
8,516,937 8,516,937
4,258,469 4,258,469
10,540 10,540
4,934,584 4,934,584
3,203,499 3,203,499
3,627,254 3,627,254
2,788,496 2,788,496
1,783,170 1,783,170
1,450,434 63,870 1,514,304 519,793
5,904,968 5,904,968 7,768
608,698 (608,698)
85,830,989 (544,828) 85,286,161 2,254,782
16,775,181 (221,365) 16,553,816 8,057,386
120,142,726 10,064,670 130,207,396 74,507,467
$136,917,907 $9,843,305 $146,761,212 $82,564,853
Primary Government
Net (Expenses) Revenues and Changes in Net Position
27
FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year. Only
individual major funds are presented in the Fund Financial Statements, while non-major funds are combined
in a single column. Individual non-major funds may be found in the Supplemental Section.
The funds described below were determined to be major funds by the City in fiscal year 2018-2019:
GENERAL FUND
Established to account for all financial resources necessary to carry out basic governmental activities of
the City which are not accounted for in another fund. The General Fund supports essential City services
such as police and fire protection, building and street maintenance, libraries, recreation, parks and open
space maintenance.
TRAFFIC AND HOUSING MITIGATION SPECIAL REVENUE FUND
Established to maintain long-term developer contributions for major housing and street improvement
projects.
GAS TAX SPECIAL REVENUE FUND
Established to receive and expend the City’s allocation of the State gasoline taxes.
ESSENTIAL FACILITIES CAPITAL PROJECTS FUND
Established to account for major capital improvements to public safety facilities.
29
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2019
Traffic and
Housing
General Mitigation Gas Tax
ASSETS
Cash and investments available for operations (Note 2)$9,241,545 $5,212,430
Restricted cash and investments (Note 2)561,507
Receivables:
Accounts 1,315,478 $565,826
Taxes 7,081,049 97,483
Grants 5,545,237
Interest 163,128
Loans (Note 4)100,472 42,859
Long-term receivable from the
Successor Agency (Note 15D)380,887
Due from other funds 587,351
Prepaids 37,271
Total Assets $19,468,688 $5,255,289 $6,208,546
LIABILITIES
Accounts payable $5,030,877 $57,913 $1,119,473
Deposits payable 10,015
Developer deposits payable 420,706
Due to other funds 360,962
Unearned revenue
Total Liabilities 5,461,598 57,913 1,480,435
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - SB90 reimbursement receivable 1,093,632
Unavailable revenue - long-term receivable from Successor Agency 380,887
Total Deferred Inflows of Resources 1,474,519
Fund Balances (Note 8):
Nonspendable 37,271
Restricted 5,197,376 4,728,111
Committed
Assigned 11,391,084
Unassigned 1,104,216
Total Fund Balances 12,532,571 5,197,376 4,728,111
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $19,468,688 $5,255,289 $6,208,546
See accompanying notes to basic financial statements
Special Revenue Funds
30
Essential Other Total
Facilities Capital Governmental Governmental
Projects Fund Funds Funds
$1,561,838 $12,144,661 $28,160,474
32,018,667 704,835 33,285,009
52,882 1,054,402 2,988,588
314,587 7,493,119
813,066 211,752 6,570,055
5,717 168,845
256,870 400,201
380,887
587,351
27,627 64,898
$34,446,453 $14,720,451 $80,099,427
$2,055,954 $891,669 $9,155,886
184,402 194,417
161,011 581,717
226,389 587,351
265,425 265,425
2,055,954 1,728,896 10,784,796
1,093,632
380,887
1,474,519
27,627 64,898
32,390,499 10,944,518 53,260,504
1,901,271 1,901,271
118,139 11,509,223
1,104,216
32,390,499 12,991,555 67,840,112
$34,446,453 $14,720,451 $80,099,427
31
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2019
Total fund balances reported on the governmental funds balance sheet $67,840,112
Amounts reported for Governmental Activities in the Statement of Net Position are
different from those reported in the Governmental Funds because of the following:
Capital assets used in Governmental Activities are not financial resources and,
therefore, are not reported in the Governmental Funds. 240,776,112
Internal service funds are used by management to charge the cost of management of
21,425,360
Long-term liabilities, including bonds payable, are not due and payable in the current
period and, therefore, are not reported in the Governmental Funds. (58,102,932)
Compensated absences (4,324,844)
Unavailable revenue 1,474,519
Long-term receivables from San Rafael Sanitation District 4,613,963
Deferred outflow related to pension 31,683,580
Net pension liability (107,121,341)
Deferred inflow related to pension (33,116,207)
Deferred outflow related to OPEB 6,731,530
Deferred inflow related to OPEB (2,721,922)
Net OPEB liability (32,240,023)
Net Position of governmental activities $136,917,907
building, workers' compensation, employee benefits, insurance, and post-retirement
healthcare benefits to individual funds. The assets and liabilities are included in
Governmental Activities in the Statement of Net Position.
See accompanying notes to financial statements
32
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2019
Traffic and Essential Other Total
Housing Facilities Capital Governmental Governmental
General Mitigation Gas Tax Projects Fund Funds Funds
REVENUES
Taxes and special assessments $70,282,284 $6,818,901 $77,101,185
Licenses and permits 2,661,500 2,661,500
Fines and forfeitures 337,680 337,680
Use of money and properties 250,570 $111,363 $33,778 $871,481 315,868 1,583,060
Intergovernmental 3,290,086 10,567,243 1,744,935 15,602,264
Charges for services 2,671,395 2,356,530 1,206,142 8,932,809 15,166,876
Other revenue 841,538 374,639 3,251,151 690,714 5,158,042
Total Revenues 80,335,053 2,467,893 12,181,802 4,122,632 18,503,227 117,610,607
EXPENDITURES
Current:
General government 12,297,845 18,800 236,854 12,553,499
Public safety 43,107,841 8,571,035 51,678,876
Public works and parks 11,742,280 59,945 2,337,369 1,478,028 15,617,622
Community development 4,988,260 4,988,260
Culture and recreation 3,080,364 9,387,644 12,468,008
Capital outlay 117,253 10,308,603 23,908,035 4,367,156 38,701,047
Debt service:
Principal 495,172 495,172
Interest and fiscal charges 2,356,207 2,356,207
Total Expenditures 78,067,969 195,998 12,645,972 23,908,035 24,040,717 138,858,691
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,267,084 2,271,895 (464,170) (19,785,403) (5,537,490) (21,248,084)
OTHER FINANCING SOURCES (USES)
Transfers in (Note 3A)4,321,361 5,201,300 5,959,636 15,482,297
Transfers out (Note 3A)(6,278,828) (3,380,892) (800,000) (2,234,450) (1,585,864) (14,280,034)
Total Other Financing Sources (Uses) (1,957,467) (3,380,892) (800,000) 2,966,850 4,373,772 1,202,263
Net Change in Fund Balances 309,617 (1,108,997) (1,264,170) (16,818,553) (1,163,718) (20,045,821)
FUND BALANCES, BEGINNING OF YEAR 12,222,954 6,306,373 5,992,281 49,209,052 14,155,273 87,885,933
FUND BALANCES, END OF YEAR $12,532,571 $5,197,376 $4,728,111 $32,390,499 $12,991,555 $67,840,112
See accompanying notes to financial statements
Special Revenue Funds
33
CITY OF SAN RAFAEL
Reconciliation of the
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2019
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS ($20,045,821)
Amounts reported for Governmental Activities in the Statement of Activities are
different because of the following:
Capital Assets Transactions
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of
those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.
Capital outlay and improvement expenditures are added back to fund balance 39,452,886
Non-capitalized capital outlay expenditures were reclassified to various governmental activities (871,389)
Loss on disposal of capital assets is deducted from fund balance (320,406)
Depreciation expense is deducted from fund balance (5,692,089)
Long-Term Debt Proceeds and Payments
Governmental funds record proceeds and payments as other financing sources and expenditures.
However, in the Statement of Net Position, those costs are reversed as increases and decreases
in long-term liabilities.
495,172
Amortized bond premium expense is added back to fund balance 507,944
Accrual of Non-Current Items
The amount below included in the Statement of Activities does not require the use of current financial
Compensated absences 270,811
Unavailable revenue (192,877)
Long-term receivable from San Rafael Sanitary District (7,474)
Net Pension Liability Transactions
Governmental funds record pension expense as it is paid. However,
in the Statement of Activities those costs are reversed as deferred outflows/(inflows)
and an increase/(decrease) in net pension liability.1,604,235
Net OPEB Liability Transactions
Governmental funds record OPEB expense as it is paid. However,
in the Statement of Activities those costs are reversed as deferred outflows/(inflows)
and an increase/(decrease) in net OPEB liability.856,577
Allocation of Internal Service Fund Activities
Internal service funds are used by management to charge the costs of certain activities to individual
funds. The net revenue of the internal service fund is reported with governmental activities.717,612
Change in Net Position of Governmental Activities $16,775,181
See accompanying notes to financial statements
Repayments on long-term debt principal
resources and therefore is not reported as revenue or expenditures in governmental funds (net change):
34
PROPRIETARY FUND FINANCIAL STATEMENTS
Proprietary funds account for City operations financed and operated in a manner similar to a private business
enterprise. The intent of the City is that the cost of providing goods and services be financed primarily
through user charges, whether external or internal.
The City reports its only enterprise fund, as a major fund.
PARKING SERVICES FUND
Established to maintain parking garages, lots and spaces in the Downtown Parking District, and to pay for
parking enforcement and meter collection.
INTERNAL SERVICE FUNDS
Established to account for department services and financing performed for other departments within the
same governmental jurisdiction. Funding comes from charges assessed to the departments benefiting
from the service.
35
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2019
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
ASSETS
Current Assets:
Cash and investments available for operations (Note 2) $3,233,626 $17,901,209
Receivable:
Accounts 31,401 72,720
Grants 69,156
Prepaids 3,400 633,973
Total Current Assets 3,268,427 18,677,058
Noncurrent Assets:
Capital assets (Note 5):
Nondepreciable 8,620,853 3,126,385
Depreciable, net 7,320,355 10,260,978
Total Noncurrent Assets 15,941,208 13,387,363
Total Assets 19,209,635 32,064,421
DEFERRED OUTFLOWS
Deferred outflows related to pension (Note 9) 1,019,387
Deferred outflows related to OPEB (Note 11) 158,470
Total Deferred Outflows 1,177,857
LIABILITIES
Current Liabilities:
Accounts payable 125,790 902,156
Interest payable 42,460
Compensated absences, due in one year (Note 1L) 17,308
Claims payable, due in one year (Note 13) 2,353,275
Long-term debt, due in one year (Note 6) 291,816
Total Current Liabilities 477,374 3,255,431
Noncurrent Liabilities:
Compensated absences (Note 1L) 121,153
Claims payable (Note 13)7,368,273
Long-term debt (Note 6) 4,625,966
Net OPEB liability (Note 11) 758,977
Net pension liability (Note 9) 3,446,517
Total Noncurrent Liabilities 8,952,613 7,368,273
Total Liabilities 9,429,987 10,623,704
DEFERRED INFLOWS
Deferred inflows related to pension (Note 9) 1,065,479
Deferred inflows related to OPEB (Note 11) 64,078
Total Deferred Inflows 1,129,557
NET POSITION (Note 8):
Net investment in capital assets 11,023,426 13,387,363
Unrestricted (1,195,478) 8,053,354
Total Net Position 9,827,948 $21,440,717
Some amounts reported for business-type activities in the
Statement of Net Position are different because certain internal
service fund assets and liabilities are included with business-type
activities.15,357
Net position business-type activities $9,843,305
See accompanying notes to financial statements
36
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2019
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
OPERATING REVENUES
Charges for current services $3,139,137 $18,005,346
Other operating revenues 2,222,879 902,230
Intergovernmental 200,000
Total Operating Revenues 5,362,016 19,107,576
OPERATING EXPENSES
Personnel 2,818,271 4,470,306
Insurance premiums and claims 7,360,418
Maintenance and repairs 268,469 1,158,504
Depreciation (Note 5)236,085 1,302,692
General and administrative 1,597,129 3,778,755
Total Operating Expenses 4,919,954 18,070,675
Operating Income 442,062 1,036,901
NONOPERATING REVENUES (EXPENSES)
Investment income 63,870 324,562
Interest expense (176,025)
Miscellaneous income 11,259
Loss on sale of capital assets (4,119)
Total Nonoperating Revenues (Expenses)(112,155)331,702
Income Before Transfers 329,907 1,368,603
TRANSFERS IN (Note 3A)170,798
TRANSFERS OUT (Note 3A)(608,698)(764,363)
Change in Net Position (278,791)775,038
NET POSITION, BEGINNING OF YEAR 10,106,739 20,665,679
NET POSITION, END OF YEAR $9,827,948 $21,440,717
* Reconciliation of the Change in Net Position with the Statement of Activities
Change in Net Position ($278,791)
Some amounts reported for business-type activities in the Statement
of Activities are different because the portion of the net income of certain
internal service funds is reported with the business-type activities which
those funds serviced.57,426
Change in Net Position of Business-type Activities ($221,365)
See accompanying notes to financial statements
37
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2019
Business-type
Activities - Governmental
Enterprise Funds Activities
Parking Internal
Services Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $3,139,137 $18,082,439
Cash payments to suppliers for goods and services (1,838,721) (15,437,289)
Cash payments to employees for salaries and benefits (2,468,975) (1,995,915)
Other operating revenues 2,232,825 902,230
Cash Flows from Operating Activities 1,064,266 1,551,465
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts 170,798
Interfund payments (608,698)(764,363)
Cash Flows from Noncapital
Financing Activities (608,698)(593,565)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal payments on revenue bonds and note payable (281,816)
Interest expenses and fiscal charges (177,362)
Acquisition of capital assets (26,902)(830,680)
Proceeds from sale of property 11,259
Cash Flows from Capital and
Related Financing Activities (486,080)(819,421)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 63,870 324,562
Cash Flows from Investing Activities 63,870 324,562
NET DECREASE IN CASH AND CASH EQUIVALENTS 33,358 463,041
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 3,200,268 17,438,168
CASH AND CASH EQUIVALENTS, END OF YEAR $3,233,626 $17,901,209
Reconciliation of operating income to net cash
provided by operating activities:
Operating income $442,062 $1,036,901
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation 236,085 1,302,692
Net change in assets and liabilities:
Accounts receivable 9,946 (141,876)
Prepaids (3,400)(633,973)
Loans receivable 18,969
Increase in due to OPEB system 389,577
Accounts payable 30,277 (209,121)
Compensated absence obligations 2,997
(Decrease) in due to retirement system (43,278)
Claims payable 177,873
Net Cash Provided by Operating Activities $1,064,266 $1,551,465
NON-CASH TRANSACTIONS:
Amortization of bond discount $725
See accompanying notes to basic financial statements
38
FIDUCIARY FUND FINANCIAL STATEMENTS
Fiduciary funds are used to account for assets held by the City as an agent or custodian for other entities.
The financial activities of such funds are excluded from the Government-wide financial statements and
presented in fund statements that consist of a Statement of Net Position.
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY – PRIVATE PURPOSE
TRUST FUND
Established to account for the activities of the Successor Agency to the San Rafael Redevelopment
Agency.
PT. SAN PEDRO ROAD ASSESSMENT DISTRICT AGENCY FUND
Established to accumulate funds for payment of principal and interest for Pt. San Pedro Road Median
Landscaping Assessment District bonds.
39
Successor Agency
to the Pt. San Pedro
Redevelopment Road Assessment
Agency District
Private-Purpose Agency
Trust Fund Fund
ASSETS
Cash and investments (Note 2)($167,622)
Restricted cash and investments (Note 2)86 $282,954
Receivable:
Taxes 3,555,006 725
Total Assets 3,387,470 $283,679
LIABILITIES
Accounts payable 1,751
Interest payable 27,861 $24,276
Other long-term obligations (Note 15D) 380,887
Due to bondholders 259,403
Long-term debt (Note 15C):
Due within one year 3,215,000
Due more than one year 9,996,290
Total Liabilities 13,621,789 $283,679
NET POSITION (DEFICIT)
Held in trust for private purpose ($10,234,319)
See accompanying notes to financial statements
CITY OF SAN RAFAEL
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2019
40
CITY OF SAN RAFAEL
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2019
Successor Agency
to the
Redevelopment Agency
Private-Purpose
Trust Fund
ADDITIONS
Property taxes $3,837,808
Use of money and property 456
Bond premium 79,861
Other revenue 904
Total Additions 3,919,029
DEDUCTIONS
General government 168,342
Interest expense 683,363
Total Deductions 851,705
Change in Net Position 3,067,324
NET POSITION HELD IN TRUST FUND
FOR OTHER PURPOSES
Beginning of year (13,301,643)
End of year ($10,234,319)
See accompanying notes to financial statements
41
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.Description of the Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements present the City of
San Rafael (the City) as the Primary Government, with its component units for which the City is
considered financially accountable. The component units discussed below are included in the City's
reporting entity because of the significance of their operational and financial relationships with the
City.
B.Description of Blended Component Units
The accompanying basic financial statements include all funds and boards and commissions that
are controlled by the City Council. The basic financial statements include the City’s blended
component units, entities for which the City is considered to be financially accountable. A
blended component unit, although a legally separate entity, is in substance, part of the City’s
operations and so data from this entity is combined with the City. The City’s blended component
units are described below.
San Rafael Joint Powers Financing Authority – The San Rafael Joint Powers Financing
Authority (Authority) was formed by the City of San Rafael and the former San Rafael
Redevelopment Agency (Agency) pursuant to Articles 1 and 2 of Chapter 5 of Division 7 of Title
1 of the Government Code of the State of California for the purpose of assisting in the financing
and refinancing of certain assessment district and redevelopment-related activities in the City. On
March 18, 2013, the Agency was replaced by the California Municipal Finance Authority
(CMFA) in order that the life of the Authority would extend beyond that of the Agency. The
Authority is administered by a governing board whose members are the City Council of the City
of San Rafael.
Activities of the Authority related to the 2012 Authority Lease Revenue Refunding Bonds are
reported in the Parking Services Enterprise Funds. Activities of the Authority related to the 2018
Authority Lease Revenue Bonds are reported in the City’s General Fund and the Essential
Facilities Capital Projects Fund. Separate financial statements are not prepared for the Authority.
C.Description of Discretely Presented Component Unit
San Rafael Sanitation District – The San Rafael Sanitation District (District) was formed in
1947 under Section 4700 of the California Health and Safety Code to provide wastewater
transmission over the southern two-thirds of the City and adjacent unincorporated areas.
The District is governed by a three-member Board of Directors who are appointed to four-year
terms. The City Council of the City appoints two out of the three board members and has the
ability to remove the two board members at will.
The City contracts with the District to maintain the collection systems in the City and surrounding
unincorporated areas. These employees are paid through the City’s payroll department and
participate in the City’s cost-sharing multiple-employer defined benefit pension plan administered
by the Marin County Employees’ Retirement Association. The employees also participate in the
City’s healthcare benefits plan which includes a provision for postemployment benefits. These
costs are the obligation of the District and not the City. As discussed in Note 4F, a receivable
from the District has been established.
43
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The District’s activities are reported as a discretely presented component unit in a separate
column in the basic financial statements which includes the District’s assets, liabilities, revenues,
expenses, results of operations and cash flows. The District’s fiscal year ends on June 30 and its
separately issued component unit financial statements can be obtained at the San Rafael
Sanitation District, 111 Morphew Street, San Rafael, California 94901.
D.Basis of Presentation
Government-wide Statements – The Statement of Net Position and the Statement of Activities
display information about the primary government (the City) and its component units. These
statements include the financial activities of the overall City government, except for fiduciary
activities. Interfund transfers and amounts owed between funds within the primary government
have been eliminated from the statements. Amounts representing interfund services and uses
remain in the statements. These statements distinguish between the governmental and business-
type activities of the City. Governmental activities generally are financed through taxes,
intergovernmental revenues, and other nonexchange transactions. Business-type activities are
financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues
for each segment of the business-type activities of the City and for each function of the City’s
governmental activities. Direct expenses are those that are specifically associated with a program
or function. Program revenues include (a) charges paid by the recipients of goods or services
offered by the programs, (b) grants and contributions that are restricted to meeting the operational
needs of a particular program and (c) fees, grants and contributions that are restricted to financing
the acquisition or construction of capital assets. Revenues that are not classified as program
revenues, including all taxes, are presented as general revenues.
Fund Financial Statements – The fund financial statements provide information about the City’s
funds, including fiduciary funds and blended component units. Separate statements for each fund
category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund
financial statements is on major individual governmental and enterprise funds, each of which is
displayed in a separate column. All remaining governmental and enterprise funds are aggregated
and reported as non-major funds.
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are those in
which each party receives and gives up essentially equal values. Nonoperating revenues, such as
subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
E. Major Funds and Other Reported Funds
Major funds are defined as funds that have either assets, liabilities, revenues or
expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand
total. The General Fund is always a major fund. The City may also select other funds it believes
should be presented as major funds.
44
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The City reported the following major governmental funds in the accompanying financial
statements:
General Fund – Established to account for all financial resources necessary to carry out basic
governmental activities of the City which are not accounted for in another fund.
Traffic and Housing Mitigation Special Revenue Fund – Established to maintain long-term
developer contributions for major housing and street improvement projects.
Gas Tax Special Revenue Fund – Established to receive and expend the City’s allocation of the
State gasoline taxes.
Essential Facilities Capital Projects Fund – Established to account for major capital
improvements to public safety facilities.
The City reported its only enterprise fund as a major fund in the accompanying financial
statements. The enterprise fund is:
Parking Services Fund – Established to maintain parking garages, lots and spaces in the
Downtown Parking District, and to pay for parking enforcement, meter collection, and downtown
enforcement services.
The City also reports the following fund types:
Internal Service Funds – These funds account for: building maintenance; vehicle, equipment
computer, radio, and telephone replacement; employee benefits; liability insurance; workers’
compensation; dental insurance; employee retirement; and retiree medical (OPEB); and sewer
maintenance.
Fiduciary Fund – These funds include: Successor Agency to the Redevelopment Agency Private-
Purpose Trust Fund – which accounts for the accumulation of resources held by the Successor
Agency to the Redevelopment Agency to be used for payments at appropriate amounts and times
in the future; Pt. San Pedro Road Assessment District Agency Fund – which accumulates funds
for the payment of principal and interest for Pt. San Pedro Road Median Landscaping District
bonds. The financial activities of these funds are excluded from the government-wide financial
statements, but are presented in the separate Fiduciary Fund financial statements.
F. Basis of Accounting
The government-wide, proprietary, fiduciary and discretely presented component unit financial
statements are reported using the economic resources measurement focus and the full accrual
basis of accounting. Revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred, regardless of when the related cash flows take place. Agency funds are
custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
45
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Governmental funds are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Under this method, revenues are recognized when
measurable and available. The City considers all revenues reported in the governmental funds to
be available if the revenues are collected within sixty days after year-end with the exception of
sales and use tax revenues which are reported as available if collected within ninety days of year-
end. Expenditures are recorded when the related fund liability is incurred, except for principal
and interest on long-term debt, claims and judgments, and compensated absences, which are
recognized as expenditures to the extent they have matured. General capital asset acquisitions are
reported as expenditures in governmental funds. Proceeds from long-term debt and acquisitions
under capital leases are reported as other financing sources.
Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental
revenues, interest revenue, charges for services, fines and forfeitures. Other receipts and taxes are
recognized as revenue when the cash is received.
Non-exchange transactions, in which the City gives or receives value without directly receiving
or giving equal value in exchange include taxes, grants, entitlements, and donations. On the
accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or
assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in
which all eligibility requirements have been satisfied. Under the terms of grant agreements, the
City may fund certain programs with a combination of cost-reimbursement grants, categorical
block grants, and general revenue. Thus, both restricted and unrestricted net position may be
made available to finance program expenditures. The City’s policy is to first apply restricted
grant resources to such programs, followed by general revenues if necessary.
The City considers restricted shared state revenues such as gasoline taxes and public safety sales
taxes, restricted locally imposed transportation sales taxes, fines, forfeitures, licenses, permits,
charges for services, and program grants as program revenues.
Certain indirect costs are included in program expenses reported for individual functions and
activities.
G. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet will sometimes report a
separate section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until
then.
46
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In addition to liabilities, the statement of financial position or balance sheet will sometimes report
a separate section for deferred inflows of resources. This separate financial statement element,
deferred inflows of resources, represents an acquisition of net position or fund balance that
applies to a future period(s) and so will not be recognized as an inflow of resources (revenue)
until that time. Unavailable revenue, a type of deferred inflow of resources, is reported in the
governmental funds balance sheet. The governmental funds report unavailable revenues from
three sources: taxes receivable, interest on interfund advances and loans receivable. These
amounts are deferred and recognized as an inflow of resources in the period that the amounts
become available.
H. Budgets, Budgetary Accounting, and Encumbrances
The City adopts an annual budget which is effective July 1 for the ensuing fiscal year. The budget
reflects estimated revenues and expenditures, except for the capital projects funds and the Peacock
Gap Assessment District Debt Service Fund. Appropriations and spending authorizations for
projects in the capital projects funds and some special revenue funds are approved by the City
Council on a multi-year basis. From the effective date of the budget, which is adopted at the
department level, the amounts stated therein as proposed expenditures become appropriations to the
various City departments. The City Council may amend the budget by resolution during the fiscal
year in order to respond to emerging needs, changes in resources, or shifting priorities.
Expenditures may not exceed appropriations at the fund level, which is the legal level of control.
The City Manager is authorized to transfer budgeted amounts between accounts, departments or
funds; the Council must approve any increase in the City’s operating expenditures, appropriations
for capital projects, and transfers between major funds and reportable fund groups.
Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles for the
General Fund and Special Revenue Funds.
Encumbrance accounting, under which purchase orders for expenditures are recorded in order to
reserve that portion of the applicable appropriation, is employed as an extension of the budgetary
process. All unencumbered appropriations lapse at year end.
I. Cash Equivalents
For purposes of the statement of cash flows, the City considers all highly liquid investments
(including all restricted assets) with maturity of three months or less when purchased to be cash
equivalents. The City maintains a cash and investment pool that is available for use by all funds.
As the proprietary funds' share of this pool is readily available when needed, such share is also
considered to be cash equivalent. Deposit assets in the proprietary funds are related to insurance
and benefits and are not considered cash equivalents for purposes of the statement of cash flows.
J. Prepaids
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government-wide and fund financial statements. The cost of
prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
47
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
K.Capital Assets
City
Contributed capital assets are valued at their estimated fair market value on the date contributed.
Donated capital assets, donated works of art and similar items, and capital assets received in a
service concession arrangement are recorded at acquisition value. All other capital assets are
valued at historical cost or estimated historical cost if actual historical cost is not available.
The City has included the value of all infrastructure capital assets into its Basic Financial
Statements using the Basic Approach for infrastructure reporting.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase is reflected in the capitalized value of the asset
constructed, net of interest earned on the invested proceeds over the same period.
City policy has set the capitalization thresholds for reporting capital assets at the following:
General capital assets ranging from $5,000 to $50,000
Infrastructure capital assets ranging from $25,000 to $250,000
Depreciation is provided using the straight-line method which means the cost of the asset is divided
by its expected useful life in years and the result is charged to expense each year until the asset is
fully depreciated. The purpose of depreciation is to spread the cost of capital assets equitably
among all users over the life of these assets. The amount charged to depreciation expense each year
represents that year’s pro rata share of the cost of capital assets.
The City has assigned the useful lives listed below to capital assets:
Buildings, improvements, and structures 20 – 50 years
Machinery and equipment 4 – 20 years
Infrastructure 15 – 50 years
District
Collection systems and facilities purchased or constructed are stated at cost. Assets contributed
have been recorded at the fair market value at the date received. Interest is capitalized for assets
constructed when applicable. The costs of normal repairs and maintenance that do not add to the
value of an asset or materially extend asset lives are not capitalized. Improvements are capitalized
and depreciated over the remaining useful lives of the related capital assets, as applicable.
Applicable capital assets must be capitalized for amounts $1,000 or above and may be capitalized
for amounts from $500 to $1,000 if determined to be sensitive. Depreciation is provided by the
straight-line method over the estimated useful lives of capital assets as follows:
Subsurface lines 50 – 80 years
Sewer collection facilities 5 – 50 years
General plant & administrative facilities 3 – 15 years
48
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
L. Compensated Absences
Compensated absences are accrued as earned. Upon termination, employees are paid for all unused
vacation at their current hourly rates. Unused sick leave may be compensable up to 600 hours,
depending upon the provisions of the MOUs, which vary by bargaining unit.
The long-term portion of the liability for compensated absences for governmental fund type
operations is recorded as compensated absences in the government-wide financial statements.
Compensated absences are liquidated by the fund that has recorded the liability. Proprietary fund
liabilities are recorded within their respective funds. The long-term portion of governmental
activities compensated absences is liquidated primarily by the General Fund.
The changes of the compensated absences were as follows:
Governmental Business-Type
Activities Activities Total
Beginning Balance $4,595,655 $135,464 $4,731,119
Additions 3,008,839 108,471 3,117,310
Payments (3,279,650) (105,474) (3,385,124)
Ending Balance $4,324,844 $138,461 $4,463,305
Current Portion $541,020 $17,308 $558,328
M.Property Tax Levy, Collection and Maximum Rates
City
State of California Constitution Article XIII A provides that the combined maximum property tax
rate on any given property may not exceed 1% of its assessed value unless an additional amount for
general obligation debt has been approved by voters. Assessed value is calculated at 100% of market
value as defined by Article XIII A and may be adjusted by no more than 2% per year unless the
property is sold, transferred, or substantially improved. The State Legislature has determined the
method of distribution of receipts from a 1% tax levy among the counties, cities, school districts and
other districts. Marin County assesses properties, bills for and collects property taxes on the schedule
that follows:
Secured Unsecured
Valuation/lien dates January 1 January 1
Levy dates July 1 July 1
Due dates (delinquent as of) 50% on November 1 (December 10) July 1 (August 31)
50% on February 1 (April 10)
49
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
For assessment and collection purposes, property is classified as either “secured” or “unsecured” and
is listed accordingly on separate parts of the assessment roll. The “secured roll” is that part of the
assessment roll containing State-assessed property and real property having a tax lien that is
sufficient, in the opinion of the Country Assessor, to secure payment of the taxes. Unsecured
property comprises all taxable property not attached to land, such as personal property or business
property. Every tax levied by a county that becomes a lien on secured property has priority over all
present and future private liens arising pursuant to State law on the secured property, regardless of
the time of the creation of the other liens. A tax levied on unsecured property does not become a lien
against the taxed unsecured property, but may become a lien on other property owned by the
taxpayer.
Property taxes are levied and recorded as revenue when received in the fiscal year of levy because of
the adoption of the “alternate method of property tax distribution,” known as the Teeter Plan, by the
City and the County of Marin. The Teeter Plan authorized the auditor-controller of the County of
Marin to allocate 100% of the secured property taxes billed, but not yet paid. The County of Marin
remits tax monies to the City in three installments, as follows:
55% remitted on December 15
40% remitted on April 15
5% remitted on June 15
District
The County of Marin levies taxes and places liens on real property as of January 1 on behalf of the
District. Unsecured property taxes are levied throughout the year.
N. Sewer Charges
Sewer charges are billed and collected on behalf of the District by the County of Marin as a
special assessment on annual property tax billings. Property taxes are levied on January 1 and are
due in two equal installments on November 1 and February 1. In accordance with the Teeter
Plan, the County remits to the District all charges which are assessed and the county retains
responsibility for collecting past due amounts.
The Teeter Plan provides that the County advance the District its share of the annual gross levy of
secured property taxes and special assessments. In consideration, the District gives the County of
Marin its rights to penalties and interest on delinquent secured property tax receivables and actual
proceeds collected.
O. Connection Fees
Connection fees represent a one-time contribution of resources to the District imposed on
contractors and developers for the purpose of financing capital improvements. Connection fees
are recognized after non-operating revenues (expenses) in the statement of revenues, expenses
and changes in net position. The District utilizes connection fees received on a first-in-first-out
basis to finance current year capital projects. Accordingly, if there is a balance of connection fees
available at year-end, it is classified as restricted net position.
50
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
P. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
(GAAP) requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent asset and liabilities at the dates of the financial
statements and the reported amounts of revenues and expenditures/expenses during the reporting
periods. Actual results could differ from those estimates.
Q. New Funds
In fiscal year 2018-2019, the City established a Special Revenue Fund, Measure G - Cannabis, for
the purpose of reporting tax revenue and expenditures related to Cannabis activities authorized by
Measure G.
R. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The City
categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation
techniques used to measure fair value into three levels based on the extent to which inputs used in
measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are
observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair
value hierarchy, the measurement is considered to be based on the lowest priority level input that is
significant to the entire measurement.
NOTE 2 - CASH AND INVESTMENTS
A. Policies
The City maintains an investment policy that emphasizes safety, liquidity and reasonable market
yield. This policy is reviewed and approved by the City Council annually.
The City invests in individual investments and in investment pools. Individual investments are
evidenced by specific identifiable securities instruments, or by an electronic entry registering the
owner in the records of the institution issuing the security, called the book entry system. In order to
increase security, the City employs the trust department of a bank as the custodian of certain City
managed investments, regardless of their form.
51
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 2 - CASH AND INVESTMENTS (Continued)
California Law requires banks and savings and loan institutions to pledge government securities
with a market value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a
market value of 150% of the deposit, as collateral for these deposits. Under California Law this
collateral is held in a separate investment pool by another institution in the City’s name and places
the City ahead of general creditors of the institution.
The City’s investments are carried at fair value, as required by generally accepted accounting
principles. The City adjusts the carrying value of its investments to reflect their fair value at each
fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
B. Classification
Cash and investments as of June 30, 2019, are classified in the financial statements as shown below,
based on whether or not their use is restricted under the terms of City debt instruments or agency
agreements.
Statement of Net Position:
City of San Rafael:
Cash and investments available for operations $49,295,309
Restricted cash and investments 33,285,009
Total Primary Government Cash and Investments 82,580,318
San Rafael Sanitation District (Component Unit)
Cash and investments available for operations 34,255,365
Total San Rafael Sanitation District Cash and Investments 34,255,365
Statement of Fiduciary Net Position (separate statement):
Successor Agency to the Redevelopment Agency:
Cash available for operations (167,622)
Restricted cash 86
Total Successor Agency Cash (167,536)
Pt. San Pedro Road Assessment District Agency Fund:
Restricted cash 282,954
Total Fiduciary Cash 115,418
Total Cash and Investments $116,951,101
The City does not normally allocate investments by fund. Each proprietary fund’s portion of Cash
and Investments Available for Operations is in substance a demand deposit available to finance
operations, and is considered a cash equivalent in preparing the statement of cash flows.
52
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 2 - CASH AND INVESTMENTS (Continued)
C.Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s investment policy and the California Government Code allow the City to invest in the
following securities provided the credit ratings of the issuers are acceptable to the City and
approved percentages and maturities are not exceeded. The table below also identifies certain
provisions of the California Government Code, or the City’s Investment Policy where it is more
restrictive:
Minimum Maximum Maximum
Maximum Credit Percentage of Investment in
Authorized Investment Type Maturity Quality (A) Portfolio (A) One Issuer
U.S. Government Obligation 5 years N/A No limit No limit
U.S. Agency Securities and Instruments 5 years N/A No limit No limit
Repurchase Agreements 1 year A-1 No limit No limit
Prime Commercial Paper 270 days A-1 25% 10% of total
outstanding
commercial paper
Bankers’ Acceptances 180 days A-1 40% $2,000,000
Medium-Term Corporate Notes 5 years A 30%5% of portfolio
Negotiable Certificates of Deposit 5 years A-1 30%5% of portfolio
Non-negotiable Certificates of Deposit 5 years N/A 30%5% of portfolio
Local Agency Investment Fund N/A N/A N/A N/A
Money Market Funds N/A AAA 10%N/A
Limited Obligation Improvement Bonds Related to
Special Assessment Districts and Special Tax Districts 30 years N/A N/A N/A
(A) At time of purchase
The San Rafael Sanitation District maintains all of its cash in the County of Marin pooled
investment fund for the purpose of increasing interest earnings through pooled investment
activities.
The County Pool includes both voluntary and involuntary participation from external entities.
The District is a voluntary participant. The State of California statutes require certain special
districts and other governmental entities to maintain their cash surplus with the County Treasurer.
The District has approved by resolution, the investment policy of the County of Marin which
complies with the California Government Code.
53
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 2 - CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents
under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged
as reserves to be used if there are insufficient resources to meet debt repayment obligations. The
California Government Code requires these funds to be invested in accordance with City
ordinance bond indentures or State statute. The table below identifies the investment types that
are authorized for investments held by fiscal agents. The table also identifies certain provisions of
these debt agreements:
Maximum
Maturity
U.S. Treasury Obligations 5 years to no
maximum
N/A No Limit
U.S. Agency Securities 3 - 5 years N/A No Limit
U.S. Agency Instruments 5 years N/A No Limit
Repurchase Agreements 1 year A-1 No Limit
Bankers’ Acceptances 360 days Highest Category Rating No Limit
Money Market Funds N/A Highest Category Rating No Limit
Prime Commercial Paper 270 days Highest Category Rating No Limit
N/A Highest Category Rating No Limit
Municipal Obligations N/A Two Highest Category Ratings No Limit
Medium-Term Corporate Notes 5 Years A No Limit
Non-Negotiable Certificates of Deposit 180 Days N/A No Limit
Negotiable Certificates of Deposit 5 Years N/A No Limit
Local Agency Investment Fund N/A N/A No Limit
California Asset Management Program N/A N/A No Limit
Deposit Accounts N/A A No Limit
Money Market Mutual Funds N/A AAAm No Limit
State or Local Bonds N/A A No Limit
Defeasance Securities N/A N/A No Limit
(A) At time of purchase.
(B)Guaranteed Investment Contracts must be fully collateralized with U.S.
Treasury Obligations or U.S. Agency Obligations.
Maximum
Percentage of
Portfolio
Guaranteed Investment Contracts (fully
collateralized) (B)
Authorized Investment Type Minimum Credit Quality (A)
54
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 2 - CASH AND INVESTMENTS (Continued)
E. GASB 72 Fair Value Hierarchy
The following is a summary of the fair value hierarchy of the fair value of investments of the
City as of June 30, 2019:
(a)(b)(c)
Level 1 Level 2 Level 3 Total
City:
Money Market Funds $639,024 $639,024
U.S. Treasury Notes $3,988,410 3,988,410
U.S. Agency Securities and Instruments 14,234,083 14,234,083
Medium-Term Corporate Notes 4,064,372 4,064,372
Investment in Pt. San Pedro Bonds $1,387,200 (d)1,387,200
$3,988,410 $18,937,479 $1,387,200 24,313,089
Investments Exempt from Fair Value Hierarchy:
California Asset Management Program 32,018,667
Local Agency Investment Fund 17,778,472
County Investment Pool 79,149
Total Investments 74,189,377
Cash in banks and on hand 8,390,941
Total City and Investments 82,580,318
Fiduciary:
Cash in banks and on hand 115,418
Total Fiduciary Cash 115,418
Total City and Fiduciary Cash 82,695,736
San Rafael Sanitary District:
County Investment Pool 34,255,365
34,255,365
Total Cash and Investments $116,951,101
Source: The above GASB 72 classifications into the different Input Levels are provided by the
US Bank Institutional Trust & Custody.
(a)Level 1 inputs are quoted prices in active market for identical assets. These are quoted prices in active markets for
identical assets at the measurement date. An active market for the asset is a market in which transactions for the
asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
(b)Level 2 inputs are significant other observable inputs. These inputs include: a) Quoted prices for similar assets in
active markets; b) Quoted prices for identical or similar assets in markets that are not active; and c) Inputs other
than quoted prices that are observable for an asset.
(c)Level 3 inputs are significant unobservable inputs. These inputs shall be used to measure fair value to the extent
that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity
for the asset at the measurement date.
(d)This pertains to the City-owned bonds of its investments in Pt. San Pedro that has no trading market and is thus
listed under Level 3. This bond is valued using discounted cash flow techniques.
Total District's Cash and Investments
55
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 2 - CASH AND INVESTMENTS (Continued)
F. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of
an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its
fair value to changes in market interest rates. The City also manages its interest rate risk by holding
most investments to maturity, thus reversing unrealized market gains and losses.
Information about the sensitivity of the fair values of the City’s investments (including investments
held by bond trustee) to market interest rate fluctuations is provided by the following table that
shows the distribution of the City’s investments by maturity or earliest call date:
12 Months More than
Type of Investment or Less 12 Months Total
City:
Money Market Funds $639,024 $639,024
California Asset Management Program 32,018,667 32,018,667
Local Agency Investment Fund 17,778,472 17,778,472
County Investment Pool 79,149 79,149
U.S. Treasury Notes 2,991,730 $996,680 3,988,410
U.S. Agency Securities and Instruments 9,079,202 5,154,881 14,234,083
Medium-Term Corporate Notes 2,048,602 2,015,770 4,064,372
Investment in Pt. San Pedro Bonds 1,387,200 1,387,200
Total Investments $64,634,846 $9,554,531 74,189,377
Cash in banks and on hand 8,390,941
Total City Cash and Investments 82,580,318
Fiduciary:
Cash in banks and on hand 115,418
Total Fiduciary Cash 115,418
Total City and Fiduciary Cash 82,695,736
San Rafael Sanitary District:
County Investment Pool 34,255,365
Total District's Cash and Investments 34,255,365
Total Cash and Investments $116,951,101
56
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 2 - CASH AND INVESTMENTS (Continued)
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California
Government Code Section 16429 under the oversight of the Treasurer of the State of California. The
City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as
the value of the pool share. The balance is available for withdrawal on demand, and is based on the
accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed
securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued
by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and
corporations. At June 30, 2019, these investments matured in an average of 173 days.
Money Market Mutual Funds are available for withdrawal on demand. The investment portfolio of
the Money Market Mutual Fund had an average maturity of 26 to 28 days at June 30, 2019.
The City invests the proceeds of the 2018 Authority Lease Revenue Bonds with the California Asset
Management Program (CAMP). CAMP is a California Joint Powers Authority established in 1989 to
provide California public agencies with professional investment services. The CAMP Pool is a
permitted investment for all local agencies under California Government Code Section 53601(p).
CAMP is directed by a Board of Trustees, which is made up of experienced local government
finance directors and treasurers.
CAMP investments are limited to investments permitted by subdivisions (a) to (n), inclusive, of
Section 53601 of the California Government Code. The City reports its investments in CAMP at
the fair value amounts provided by CAMP, which is the same as the value of the pool share in
accordance with GASB 79 requirements. At June 30, 2019, the fair value was approximate to the
City’s cost. At June 30, these investments have an average maturity of 54 days.
The City, as a CAMP shareholder, may withdraw all or any portion of the funds in its CAMP
account at any time by redeeming shares. The CAMP Declaration of Trust permits the CAMP
trustee to suspend the right of withdrawal from CAMP or to postpone the date of payment of
redemption proceeds if the New York Stock Exchange is closed other than for customary
weekend and holiday closings, if trading on the New York Stock Exchange is restricted, or if, in
the opinion of the CAMP trustees, an emergency exists such that disposal of the CAMP pool
securities or determination of its net asset value is not reasonably practicable. If the right of
withdrawal is suspended, the City may either withdraw its request for that withdrawal or receive
payment based on the net asset value of the CAMP pool next determined after termination of the
suspension of the right of withdrawal.
The County’s investment pool is not registered with the Securities and Exchange Commission as an
investment company. The pool has a credit rating of “AAA/V1.” Investments made by the Treasurer
are regulated by the California Government Code and by the County’s investment policy. The
objectives of the policy are in order of priority, safety, liquidity, yield, and public trust. The County
has established a treasury oversight committee to monitor and review the management of public
funds maintained in the investment pool in accordance with Article 6 Section 27131 of the California
Government Code. The oversight committee and the Board of Supervisors review and approve the
investment policy annually. The County Treasurer prepares and submits a comprehensive
investment report to the members of the oversight committee and the investment pool participants
every month. The report covers the types of investments in the pool, maturity dates, par value, actual
costs and fair value.
57
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 2 - CASH AND INVESTMENTS (Continued)
G. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. Presented below is the actual rating as of June 30, 2019, for each of the Primary
Government’s investment types as provided by Standard and Poor’s or Moody’s investment rating
systems, except as noted:
Percentage
Amount of
Investments Invested Investments NRSRO Rating
City (except Fiduciary Funds):
Money Market Funds $639,024 < 1% Aaa/AAA
California Asset Management Program 32,018,667 43%AAAm
County Investment Pool 79,149 < 1% Aaa/AAA
U.S. Treasury Notes 3,988,410 6%AA+
U.S. Agency Securities and Instruments 14,234,083 19%AA+
Medium-Term Corporate Notes 4,064,372 6% A, A+, AA-, AA
Local Agency Investment Fund 17,778,472 24% Not Rated
Investment in Pt. San Pedro Bonds 1,387,200 2% Not Rated
Total City Investments 74,189,377
Component Unit:
Investment in County Pool 34,255,365 AAA/V1
Total Investments $108,444,742
H. Concentration Risk
Included in the table at Note G above are the following significant investments in any one issuer
other than U. S. Treasury securities, mutual funds, and external investment pools.
Reporting Unit Issuer Investment Type Amount
Entity-wide Federal Home Loan Bank Federal Agencies Obligation $5,402,739
Entity-wide Federal Farm Credit Bank Federal Agencies Obligation 3,494,515
Entity-wide Federal Home Loan Mortgage Corporation Federal Agencies Obligation 3,142,597
58
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 3 - INTER-FUND TRANSACTIONS
A. Transfers
Resources may be transferred from one City fund to another. Transfers routinely fund capital
projects or capital outlays, lease or debt service payments, and operating expenses.
Transfers between funds during the fiscal year ended June 30, 2019, were as follows:
From Fund To Fund Amount
General Fund Essential Facilities Capital Projects Fund $4,145,000 (A)
Non-Major Governmental Funds 2,133,828 (B)
Traffic and Housing Mitigation Special Revenue Fund Non-Major Governmental Funds 3,380,892 (C)
Gas Tax Special Revenue Fund General Fund 800,000 (D)
Essential Facilities Capital Projects Fund General Fund 2,234,450 (E)
Parking Services Enterprise Fund General Fund 508,698 (E)
Non-Major Governmental Funds 100,000 (B)
Internal Service Funds General Fund 678,213 (E)
Non-Major Governmental Funds 86,150 (B)
Non-Major Governmental Funds General Fund 100,000 (D)
Essential Facilities Capital Projects Fund 1,056,300 (A)
Building Maintenance Internal Service Fund 170,798 (F)
Non-Major Governmental Funds 258,766 (B)
$15,653,095
and other program support.
(A) Transfers to the Essential Facilities Capital Projects Fund were for Public Safety Center Projects.
(B) Transfers to the Non-Major Governmental Funds were for administrative costs, grant matching, recreation,
(C) Transfers to the Capital Improvement Fund were for program support.
(F) Transfers to the Building Maintenance Internal Service Fund were for program support.
(D) Transfers to the General Fund were for street maintenance support and administrative costs.
(E) Transfers to the General Fund from Essential Facilities Capital Projects, Parking Services and
Internal Services Funds were for debt service payments.
B. Internal Balances
GASB 34 requires internal balances to be presented in the Government-wide financial statements
only. They represent the net interfund receivables and payables remaining after the elimination of
all such balances within governmental and business-type activities.
59
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 4 - LOANS RECEIVABLE
A. Summary of Loans Receivable
The City has identified the portion of fund balance represented by these loans as restricted or
assigned as discussed in Note 8. At June 30, 2019, these loans totaled:
Employee Loans $3,936
Centertown Associates 256,870
One "H" Street Associates 42,859
Fire Chief Loan 96,536
Total $400,201
B. Employee Loans
The City administers a computer loan program that supports the use of technology by employees.
Employees are permitted to borrow up to $1,500 for the purchase of computer hardware and
software. The loans are interest-free, have maximum terms of one year, and are repaid through
automatic payroll deductions. As of June 30, 2019, the balance of the employee loans receivable
was $3,936.
C. Centertown Associates Loan
On August 20, 1990, the former Redevelopment Agency loaned Centertown Associates, Ltd,
$303,000 at 3% interest due semiannually. The loan was made for the construction of a 60-unit
affordable Centertown apartment complex and is fully secured by a deed of trust. The final
payment is due on July 31, 2065. With the dissolution of the Redevelopment Agency effective
February 1, 2012, the assets of the Agency’s Low and Moderate Income Housing fund, including
the Centertown Associates loan, were assumed by the City’s Low and Moderate Income Housing
Special Revenue Fund. As of June 30, 2019, the balance of the loan including principal and
accrued interest was $256,870.
D. One “H” Street Associates Loan
On January 18, 1994, the City loaned One “H” Street Associates $100,000 at zero percent interest
with annual payments of $2,857 and with a final payment due January 18, 2034. As of June 30,
2019, the balance of this loan was $42,859.
E. Fire Chief Loan
On September 17, 2007, the City Council approved a Home Loan Agreement to provide the Fire
Chief with housing assistance. Under the Agreement, which was executed on October 3, 2007,
the City loaned the Fire Chief $600,000 to assist in the purchase of his primary residence. The
loan is secured by a recorded deed of trust. The initial interest rate to be charged was 5.25%
through August 31, 2008. On September 1, 2008, and on each September 1 following, until the
loan is paid off, the interest rate of the loan will be adjusted based upon the then reported quarter-
to-date Local Agency Investment Fund rate on the City’s investment portfolio. As of June 30,
2019, the balance of the loan was $96,536.
60
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 4 - LOANS RECEIVABLE (Continued)
F. Other Receivables
The City provides staffing to San Rafael Sanitation District (District) under a contractual
arrangement originated in 1987 that requires the District to pay all related employee costs
incurred by the City on its behalf. Accordingly, the cost of providing pension and post-
employment health benefits incurred by the City for the District staff but not yet funded are
reflected by the District as an obligation, and by the City as a noncurrent receivable. The
obligation as of June 30, 2019 is $4,613,963, and is composed of the following:
Long-term receivable from San Rafael Sanitation District:
Defined benefit pension liability allocation (GASB 68)$3,520,186
Other post-employment benefit liability allocation (GASB 75)1,093,777
Total long-term receivable from San Rafael Sanitation District $4,613,963
NOTE 5 - CAPITAL ASSETS
Changes in capital assets during the fiscal year consisted of:
Balance Additions/Balance
June 30, 2018 Adjustments Retirements Transfers June 30, 2019
Governmental Activities
Capital assets not being depreciated:
Land $83,662,359 $83,662,359
Construction in progress 35,720,118 $40,021,643 ($229,724) ($5,689,623) 69,822,414
Total capital assets not being depreciated 119,382,477 40,021,643 (229,724) (5,689,623) 153,484,773
Capital assets being depreciated:
Land improvements 9,020,097 742,470 9,762,567
Buildings and structures 43,558,694 688,428 44,247,122
Machinery and equipment 20,971,296 261,923 (284,724)20,948,495
Infrastructure 199,559,595 4,258,725 203,818,320
Total capital assets being depreciated 273,109,682 261,923 (284,724) 5,689,623 278,776,504
Less accumulated depreciation for:
Land improvements (6,340,195) (267,555)(6,607,750)
Buildings and structures (19,553,095) (1,294,498)(20,847,593)
Machinery and equipment (12,952,045) (1,256,765) 194,042 (14,014,768)
Infrastructure (131,668,796) (4,958,895)(136,627,691)
Total accumulated depreciation (170,514,131) (7,777,713) 194,042 (178,097,802)
Total net capital assets being depreciat ed 102,595,551 (7,515,790) (90,682) 5,689,623 100,678,702
Total governmental activity capital assets $221,978,028 $32,505,853 ($320,406)$254,163,475
61
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 5 - CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2018 Additions Retirements June 30, 2019
Business-type Activities
Capital assets not being depreciated:
Land $8,620,853 $8,620,853
Total capital assets not being depreciated 8,620,853 8,620,853
Capital assets being depreciated:
Buildings and structures 10,713,814 10,713,814
Machinery and equipment 1,128,311 $26,902 ($112,516) 1,042,697
Total capital assets being depreciated 11,842,125 26,902 (112,516) 11,756,511
Less accumulated depreciation for:
Buildings and structures (3,305,322) (205,362)(3,510,684)
Machinery and equipment (1,007,265) (30,723) 112,516 (925,472)
Total accumulated depreciation (4,312,587) (236,085) 112,516 (4,436,156)
Total net capital assets being depreciated 7,529,538 (209,183)7,320,355
Total business-type activity capital assets $16,150,391 ($209,183)$15,941,208
Balance T ransfers &Balance
June 30, 2018 Additions Retirements Adjustments June 30, 2019
San Rafael Sanitation District
Capital assets not being depreciated:
Land and easements $115,329 $115,329
Construction in progress 775,804 $4,596,989 ($3,838,418) 1,534,375
Total capital assets not being depreciated 891,133 4,596,989 (3,838,418) 1,649,704
Capital assets being depreciated:
Subsurface lines 36,555,141 823,808 1,371,263 38,750,212
Sewage collection facilities 42,205,803 27,611 2,467,155 44,700,569
General plant and administration 1,676,278 100,623 ($27,108)1,749,793
Total capital assets being depreciated 80,437,222 952,042 (27,108) 3,838,418 85,200,574
Less accumulated depreciation for:
Subsurface lines (11,863,418) (579,346)(12,442,764)
Sewage collection facilities (19,691,736) (1,171,540)(20,863,276)
General plant and administration (1,140,144) (138,310) 27,108 (1,251,346)
Total accumulated depreciation (32,695,298) (1,889,196) 27,108 (34,557,386)
Total net capital assets being depreciated 47,741,924 (937,154)3,838,418 50,643,188
Total District's capital assets $48,633,057 $3,659,835 $52,292,892
Capital Asset Contributions - Some capital assets may have been acquired using Federal and State
grant funds, or were contributed by developers or other governments. These contributions are
accounted for as revenues at the time the capital assets are contributed.
62
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 5 - CAPITAL ASSETS (Continued)
Depreciation Allocation - Depreciation expense is charged to functions and programs based on
their usage of the related assets. The amounts allocated to each function or program are as
follows:
Governmental Activities
General government $144,138
Public safety 893,499
Public works and parks 5,851,551
Community development 46,532
Culture and recreation 841,993
Total Governmental Activities $7,777,713
Business-type Activities
Parking services $236,085
Total Business-type Activities $236,085
NOTE 6 - LONG TERM DEBT
The City generally incurs long-term debt to finance projects or purchase assets which will have
useful lives equal to or greater than the related debt.
A summary of governmental and business-type activities transactions for the fiscal year ended
June 30, 2019, are as follows:
Authorized Balance Balance Current
and Issued June 30, 2018 Retirements June 30, 2019 Portion
Governmental Activities Bonds:
2018 Authority Lease Revenue Bonds
4.00%-5.00%, due 6/1/2034 $45,485,000 $45,485,000 $45,485,000
Add: unamortized bond premium 8,127,097 $507,944 7,619,153
2010 Taxable Pension Obligation Bonds
6.00%-6.25%, due 7/1/2025 4,490,000 4,185,000 420,000 3,765,000 $445,000
Total Governmental Activities Bonds 57,797,097 927,944 56,869,153 445,000
Governmental Activities - Direct Borrowings:
PG & E City Hall HVAC Retrofit Note Payable
0.00%, due 11/30/2023 334,585 179,278 33,280 145,998 33,280
PG & E Street Light Retrofit Note Payable
0.00%, due 8/31/2019 233,896 48,873 41,892 6,981 6,981
PG & E CEC Efficiency Note Payable
1.00%, due 12/22/2027 1,178,813 1,080,800 1,080,800
Total Governmental Activities - Direct Borrowings 1,308,951 75,172 1,233,779 40,261
Total Governmental Activities Debt $59,106,048 $1,003,116 $58,102,932 $485,261
Business-type Activities
Direct Borrowing:
PG & E Parking Lot Lighting Retrofit Note Payable
0.00%, due 11/30/2023 $66,380 $34,571 $6,816 $27,755 $6,816
2012 Authority Lease Revenue Refunding Bonds
2.00-4.00%, due 4/1/2033 6,750,000 5,174,999 275,000 4,899,999 285,000
Less: unamortized bond discount (10,697) (725)(9,972)
Total Business-type Activities Bonds 5,164,302 274,275 4,890,027 285,000
Total Business-type Activities $5,198,873 $281,091 $4,917,782 $291,816
63
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 6 - LONG-TERM DEBT (Continued)
A. 2018 Authority Lease Revenue Bonds
On March 5, 2018, the Authority issued 2018 Authority Lease Revenue Bonds in the amount of
$45,485,000 bearing interest at rates from 4.00% to 5.00%. The proceeds of the bonds were
provided for replacement of two fire stations and construction of a public safety center. Interest
on the Bonds is payable semiannually on June 1 and December 1. Principal payable on the Bonds
will be paid on June 1 starting on June 1, 2021. The Bonds maturing on or prior to June 1, 2028,
are not subject to optional redemption prior to their maturity. The Bonds maturing on or after
June 1, 2029, are subject to optional redemption as a whole or in part on any date after June 1,
2028, at the option of the Authority, at a redemption price equal to the principal amount of the
Bonds subject to redemption, plus accrued interest to the date fixed for redemption, without
premium.
The Bonds are payable from any source of available funds of the City. The bond covenants
contain events of default that require the revenue of the City to be applied by the Trustee as
specified in the terms of the agreement if any of the following conditions occur: default on debt
service payments; the failure of the City to observe or perform the conditions, covenants, or
agreement terms of the debt; bankruptcy filing by the City; or if any court or competent
jurisdiction shall assume custody or control of the City.
B. 2010 Taxable Pension Obligation Bonds
On July 1, 2010, the City issued 2010 Taxable Pension Obligation Bonds in the amount of
$4,490,000 bearing interest at rates from 6.00% to 6.25%. Principal payments are due annually on
July 1 and interest is payable semiannually on January 1 and July 1. The Bonds were issued to
prefund a portion of the obligations of the City to the Marin County Employees’ Retirement
Association. Payment of the principal and interest on the Bonds is not limited to any special
source of funds and is payable from any legally available moneys of the City. The City is not
empowered or obligated to levy or pledge taxes to make payments on the Bonds. The bond
covenants contain events of default that require the revenue of the City to be applied by the
Trustee as specified in the terms of the agreement if any of the following conditions occur:
default on debt service payments; the failure of the City to observe or perform the conditions,
covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or
competent jurisdiction shall assume custody or control of the City.
C.Pacific Gas and Electric Note Payable
PG&E Lighting Retrofit
On September 30, 2013, the City executed a note payable agreement with Pacific Gas and
Electric (PG&E) in the amount of $634,861, bearing no interest. The debt was assumed as a
means to finance energy-efficient retrofit projects which include updating existing heating,
ventilation and air conditioning (HVAC) unit in City Hall and converting the street and parking
lot light to light emitting diode (LED). $334,585 of the loan is for the HVAC projects and
$300,276 of the loan is for the LED projects. Repayment of the loan commenced in December
2013, and is due monthly until paid in full in 2023.
64
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 6 - LONG-TERM DEBT (Continued)
PG&E CEC Efficiency
On September 5, 2017, City Council approved the execution of a note payable agreement with
Pacific Gas and Electric (PG&E) in the amount of $1,178,813, bearing interest at 1%. The debt
was assumed as a means to finance the execution of various energy efficiency system upgrades to
City facilities and street lights. The upgrades will include interior and exteriors lighting upgrades
and energy management control systems. As of June 30, 2019, the loan obligation was
$1,080,000, the project is ongoing and additional note proceeds are expected in fiscal year 2019-
2020. Payments will commence in December 2020, and are due semi-annually until paid in full in
2027.
D. 2012 Authority Lease Revenue Refunding Bonds
On August 7, 2012, the Authority issued 2012 Authority Lease Revenue Refunding Bonds in the
amount of $6,750,000 bearing interest at rates from 2.00% to 4.00%. The proceeds of the Series
2012 Bonds were used to repay the Authority’s 2003 Authority Lease Revenue Bonds that
financed the construction of the 3rd and C Street parking structure and achieved lower interest
rates and lower annual debt service payments. The refunding resulted in a net present value
savings to the City in debt service of $670,496. In addition, the requisition price exceeded the net
carrying amount of the old debt by $295,278. The Series 2012 Bonds are payable from lease
payments made by the City to the Authority for leasing the City facilities. The rights to these
lease payments have been irrevocably transferred by the Authority to the Trustee. Activities
related to the Series 2012 Bonds are reported in the Parking Services Enterprise Fund. Principal
payments are due annually on April 1 and interest is payable semiannually on October 1 and
April 1. The Bonds maturing on or prior to April 1, 2022, are not subject to optional redemption
prior to their maturity. The Bonds maturing on or after April 1, 2023, are subject to optional
redemption as a whole or in part on any date after April 1, 2022, at the option of the Authority, at
a redemption price equal to the principal amount of the Bonds subject to redemption, plus accrued
interest to the date fixed for redemption, without premium.
The Bonds are payable from any source of available funds of the City. The bond covenants contain
events of default that require the revenue of the City to be applied by the Trustee as specified in the
terms of the agreement if any of the following conditions occur: default on debt service payments;
the failure of the City to observe or perform the conditions, covenants, or agreement terms of the
debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or
control of the City.
65
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 6 - LONG-TERM DEBT (Continued)
E. Future Debt Service
Future debt service requirements, including interest, at June 30, 2019, are as follows:
For the Year Governmental Activities - Bonds Governmental Activities - Direct Borrowings
Ended June 30 Principal Interest Principal Interest
2020 $445,000 $2,420,832 $40,261 $33,280
2021 2,385,000 2,393,232 87,320 54,626
2022 2,575,000 2,286,801 87,320 53,545
2023 2,775,000 2,171,501 87,320 52,464
2024 3,000,000 2,045,528 66,918 30,981
2025 - 2029 16,830,000 7,848,506 270,200 74,306
2030 - 2034 21,240,000 3,211,250 270,200 47,285
2035 - 2039 270,200 20,265
2040 54,040 810
Totals 49,250,000 $22,377,650 1,233,779 $367,562
Reconciliation of Long-term debt:
Add: unamortized premium 7,619,153
$56,869,153 $1,233,779
Business-type
Activities
For the Year Business-type Activities - Bonds Direct Borrowings
Ended June 30 Principal Interest Principal
2020 $285,000 $169,838 $6,816
2021 290,000 161,288 6,816
2022 300,000 152,588 6,816
2023 310,000 143,588 6,816
2024 320,000 134,288 491
2025 - 2029 1,750,000 507,518
2030 - 2034 1,644,999 164,400
Totals 4,899,999 $1,433,508 27,755
Reconciliation of Long-term debt:
Less: unamortized discount (9,972)
$4,890,027 $27,755
66
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 7 - DEBT WITHOUT CITY COMMITMENT
The City has sponsored the issuance of the following debt, for which the City is not liable for
repayment but acts as an agent for the property owners and bondholders:
Project Original Outstanding
Description Amount June 30, 2019
San Rafael Redevelopment Agency 162-175 Belvedere
Multifamily Housing Revenue Bonds-2000A Apartments $3,590,529 $997,394
California Statewide Communities
Development Authority Revenue Bonds-2002 St. Marks School 5,605,000 3,205,000
San Rafael Redevelopment Agency
Variable Rate Demand Multifamily 55 Fairfax
Housing Revenue Bonds-2001A Apartments 3,000,000 1,900,000
San Rafael Redevelopment Agency San Rafael Commons
Multifamily Housing Revenue Bonds-2001 Apartments 6,100,000 4,585,000
San Rafael Redevelopment Agency Martinelli House
Multifamily Housing Revenue Bonds-2007 Series A Project 6,000,000 1,845,971
Multifamily Housing Revenue Bonds-2007 Series B Martinelli House 1,000,000 175,174
Pt. San Pedro Road Median Landscaping Pt. San Pedro Road
Assessment District Limited Obligation Bonds-2012 Median Landscaping 1,750,000 1,387,200
Total $27,045,529 $14,095,739
NOTE 8 - NET POSITION AND FUND BALANCE
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflow over all its liabilities, and
deferred inflows regardless of fund. Net Position is divided into three captions. These captions
apply only to Net Position, which is determined only at the Government-wide level and business
type activity and are described below:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the
current net book value of the City’s capital assets, less the outstanding balance of any debt issued
to finance these assets.
Restricted describes the portion of Net Position which is restricted to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other
restrictions which the City cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted to use.
67
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 8 - NET POSITION AND FUND BALANCE (Continued)
B. Fund Balance
In the fund financial statements, fund balances represent the net current assets of each fund. Net
current assets generally represent a fund’s cash and receivables, less its liabilities. The City’s
fund balances are classified in accordance with Governmental Accounting Standards Board
Statement Number 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type
Definitions, which requires the City to classify its fund balances based on spending constraints
imposed on the use of resources. For programs with multiple funding sources, the City prioritizes
and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned.
Each category in the following hierarchy is ranked according to the degree of spending constraint:
Nonspendable represents balances set aside that do not represent available, spendable resources
even though they are a component of assets. Fund balances required to be maintained intact, such
as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes
receivable, and land held for redevelopment are included. However, if proceeds realized from the
sale or collection of nonspendable assets are restricted, committed or assigned, then
Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors,
laws, regulations, or enabling legislation which requires the resources to be used only for a
specific purpose. Nonspendable amounts subject to restrictions are included along with spendable
resources.
Committed fund balances have constraints imposed by resolution of the City Council which may
be altered only by resolution of the City Council. Nonspendable amounts subject to council
commitments are included along with spendable resources.
Assigned fund balances are amounts constrained by the City’s intent that they be used for a
specific purpose, but are neither restricted nor committed. Intent is expressed by the City
Manager as designated by the City Council and may be changed at the discretion of the City
Council or City Manager. This authorization is given through Resolution No. 13173 which adopts
the City’s Fund Balance Policy. This category includes nonspendables, when it is the City’s intent
to use proceeds or collections for a specific purpose; and residual fund balances, if any, of Special
Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or
assigned. This includes the residual General Fund balance and residual fund deficits, if any, of
other governmental funds.
68
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 8 - NET POSITION AND FUND BALANCE (Continued)
Detailed classifications of the City’s fund balances, as of June 30, 2019, are below:
Capital Project
Funds
General Fund
Traffic and
Housing
Mitigation Gas Tax
Essential Facilities
Capital Projects
Fund
Other
Governmental
Funds Total
Fund balances:
Nonspendable:
Prepaids $37,271 $27,627 $64,898
Total Nonspendable 37,271 27,627 64,898
Restricted for:
Assessment District capital projects 302,890 302,890
Baypoint Lagoons Assessment District 252,414 252,414
Bedroom tax capital projects 84,325 84,325
Childcare 1,746,845 1,746,845
Development services 631,375 631,375
Emergency medical services 785,719 785,719
1997 financing authority revenue bonds debt service 151,695 151,695
Gas tax $4,728,111 4,728,111
Grants 796,024 796,024
Household hazmat facility 366,418 366,418
Library 2,449,535 2,449,535
Library assessment 556,470 556,470
Loch Lomond Assessment District 674,208 674,208
Loch Lomond Assessment District #2 282,718 282,718
Low and Moderate Income Housing 895,727 895,727
Mariposa Assessment District debt service 16,573 16,573
Measure E - Public Safety Facility $32,390,499 32,390,499
Measure G - Cannabis 75,973 75,973
Parkland dedication 257,542 257,542
Peacock Gap Assessment District debt service 2,875 2,875
Public safety 89,647 89,647
Pt. San Pedro- Maintenance Portion 120,673 120,673
Recreation revolving 2,328 2,328
Storm water 402,544 402,544
Traffic and housing mitigation $5,197,376 5,197,376
Total Restricted 5,197,376 4,728,111 32,390,499 10,944,518 53,260,504
Committed to:
Capital improvement capital projects 1,890,447 1,890,447
Park capital projects 10,824 10,824
Total Committed 1,901,271 1,901,271
Assigned to:
Contractual commitments 230,646 230,646
MOU - One-time payments 797,625 797,625
Measure E - Public Safety Facility 143,702 143,702
Emergency and cash flow 7,900,000 7,900,000
Infrastructure Reserve 600,000 600,000
General plan / long range planning 1,719,111 1,719,111
Open space capital projects 118,139 118,139
Total Assigned 11,391,084 118,139 11,509,223
Unassigned 1,104,216 1,104,216
Total Fund Balances $12,532,571 $5,197,376 $4,728,111 $32,390,499 $12,991,555 $67,840,112
Special Revenue Funds
69
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 9 - PENSION PLANS
A. Plan Description
The City’s defined benefit retirement plan is administered by the Marin County Employees’
Retirement Association (MCERA), a retirement system established in July 1950 and governed by
the California Constitution; the County Employees Retirement Law of 1937 (CERL or 1937 Act,
California government Code Section 31450 et seq.); the Public Employees’ Pension Reform Act
of 2013 (PEPRA, Government Code Section 7522); the provisions of California Government
Code Section 7500 et seq; and the bylaws, procedures, and policies adopted by MCERA’s Board
of Retirement. The Marin County Board of Supervisors may also adopt resolutions, as permitted
by the CERL and PEPRA, which may affect the benefits of MCERA members.
MCERA operates as a cost-sharing multiple employer defined benefit plan for the City and eight
other participating employers: County of Marin, Local Agency Formation Commission
(LAFCO), Marin City Community Services District, Marin County Superior Court,
Marin/Sonoma Mosquito and Vector Control District, Novato Fire Protection District, Southern
Marin Fire Protection District, and Tamalpais Community Services District. Separate actuarial
valuations are performed for these other agencies and districts, and the responsibility for funding
their plans rest with those entities. Post-retirement benefits are administered by MCERA to
qualified retirees.
Copies of MCERA’s annual financial reports, which include required supplementary information
(RSI) for each plan may be obtained from their office at One McInnis Parkway, Suite 100, San
Rafael, CA 94903 or online at www.mcera.org.
B. Benefit Provisions
Service Retirement: MCERA’s service retirement benefits are based on the years of credited
service, final average compensation, and age at retirement, according to the applicable statutory
formula. Members who qualify for service retirement are entitled to receive monthly retirement
benefits for life.
General members hired prior to January 1, 2013 are eligible to retire once they attain the age of
50 (except Misc Tier 2, whereby the minimum age is 55) and have acquired 10 or more years of
retirement service credit. A member with 30 years of service is eligible to retire regardless of age.
A member who is age 70 or older is eligible to retire regardless of service credit. General
members who are first hired on or after January 1, 2013 are eligible to retire once they have
attained the age of 52, and have acquired 5 years of retirement service credit, or age 70,
regardless of service.
Safety members hired prior to January 1, 2013 are eligible to retire once they attain the age of 50
and have acquired 10 or more years of retirement service credit. A member with 20 years of
service is eligible to retire regardless of age. A member who is age 70 or older is eligible to retire
regardless of service. Safety members who are first hired on or after January 1, 2013 are eligible
to retire once they have attained the age of 50, and have acquired 5 years of retirement service
credit, or age 70, regardless of service.
70
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 9 - PENSION PLANS (Continued)
Disability Retirement: A member with five years of service, regardless of age, who becomes
permanently incapacitated for the performance of duty is eligible to apply for a non-service
connected disability retirement. Any member who becomes permanently incapacitated for the
performance of duty as a result of injury or disease arising out of and in the course of
employment is eligible to apply for a service-connected disability retirement, regardless of
service length or age.
Death Benefits: MCERA provides specified death benefits to beneficiaries and members’
survivors. The death benefits provided depend on whether the member is active or retired. The
basic active member death benefit consists of a members’ retirement contributions plus interest
plus one month’s pay for each full year of service (up to a maximum of six month’s pay).
Retiring members may choose from five retirement benefit payment options. Most retirees elect
to receive the unmodified allowance which provides the maximum benefit to the retiree and
continuance of 60% of the retiree’s allowance to the surviving spouse or registered domestic
partner after the retiree’s death. Other death benefits may be available based on the years of
service, marital status, and whether the member has minor children.
Cost of Living Adjustment: Retirement allowances are indexed for inflation. Most retirees
receive automatic basic cost of living adjustments (COLA’s) based upon the Urban Consumer
Price Index (UCPI) for the San Francisco Bay Area. These adjustments go into effect on April 1
of each year. Annual COLA increases are statutorily capped at 2%, 3%, or 4% depending upon
the member’s retirement tier. When the UCPI exceeds the maximum statutory COLA for the
member’s tier, the difference is accumulated for use in future years when the UCPI is less than
the maximum statutory COLA. The accumulated percentage carryover is known as the COLA
Bank.
C. Funding Policy
The funding policy of MCERA provides for actuarially determined periodic contributions by the
City at rates such that sufficient assets will be available to pay plan benefits when due. The
employer rates for normal cost are determined using the Entry Age Normal Actuarial Cost
Method, which takes into account those benefits that are expected to be earned in the future as
well as those already accrued.
The City contribution rates for the year ended June 30, 2019 were as follows:
Employer Employee
Contribution Rate Contribution Rate Benefit Basis
City of San Rafael Misc Tier 1 53.34%0.00% - 16.13% 2.7% @ 55 Highest year
City of San Rafael Misc Tier 2 52.40%7.34% - 11.76% 2.0% @ 55 Average three highest years
City of San Rafael Fire Tier 1 74.94%0.00% - 19.59% 3.0% @ 55 Highest year
City of San Rafael Fire Tier 2 72.55% 11.40% - 17.36% 3.0% @ 55 Average three highest years
City of San Rafael Safety Police Tier 1 74.30%0.00% - 19.59% 3.0% @ 55 Highest year
City of San Rafael Safety Police Tier 2 73.49% 11.40% - 17.36% 3.0% @ 55 Average three highest years
PEPRA Misc 45.39%9.30% 2.0% @ 62 Average three highest years
PEPRA Safety 63.06%13.98% 2.7% @ 57 Average three highest years
These rates were determined by MCERA, based on the actuarial valuation dated June 30, 2017.
The actual rate of return on investments during that year was 11.92% on a market value basis net
of investment expenses, as compared to the prior year’s 7.25% assumption.
71
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 9 - PENSION PLANS (Continued)
The City uses the actuarially determined percentages of payroll to calculate and pay contributions
to MCERA. Contributions to the plan from the City were $20,352,203 for the year ended June 30,
2019, based on a total payroll of $44,634,340, of which $33,106,430 represented the basis for the
plan contributions. Of the total payroll subject to plan contributions, $1,431,100 is attributable to
the San Rafael Sanitation District (SRSD), a component unit of the City.
Effective with the June 30, 2013 valuation, the Unfunded Actuarial Liability (UAL) as of June
30, 2013 is being amortized over a closed 17-year period (13 years remaining as of June 30,
2017), except for the additional UAL attributable to the outstanding unfunded actuarial loss from
2009, which is being amortized over a separate closed period (currently 21 years).
Effective with the June 30, 2014 valuation, any new sources of UAL due to actuarial gains and
losses or method changes are amortized over a closed 24-year period, with a 5-year ramp up
period at the beginning of the period, a 4-year ramp down at the end of the period, and 15 years of
level payments as a percentage of payroll between the ramping periods. This new amortization
method for gains and losses is similar to a 20-year amortization period with level payments as a
percentage of payroll, in conjunction with a traditional 5-year asset smoothing.
Assumption changes are amortized over a closed 22-year period, with a 3-year ramp up period, 2-
year ramp down period, and 17 years of level payments as a percentage of payroll.
D. Pension Liability and Pension Expense
The City’s net pension liability (NPL) has been determined for the financial reporting period
ended June 30, 2019 based on the following methodology: The City’s NPL as of June 30, 2017
was updated to the measurement date of June 30, 2018 using the actual City’s plan assets as of
June 30, 2018 and estimating the change in the City’s liabilities between July 1, 2017 and June
30, 2018. This estimate is based on a projection of the City’s long-term contributions to the
pension plan relative to the projected contributions of all participating employers.
The resulting NPL for the City under this calculation is $110,567,858, or 34.4752% of the total
MCERA NPL of $330,297,827 (reference MCERA’s GASB 67/68 report as of June 30, 2018).
This compares to the previous year’s NPL of $120,649,687, or 32.718% of the total MCERA
NPL of $368,756,305 (reference MCERA’s GASB 67/68 report as of June 30, 2017).
In addition to the reporting of the NPL as of June 30, 2019, the City reported deferred inflows of
$34,181,686 and deferred outflows of $12,350,764 as of the measurement date June 30, 2018.
The City reported post-measurement date outflows of $20,352,203 from actual fiscal year 2018-
2019 pension contributions. Deferred outflows include deferred investment gains and adjustments
to assumptions based on actual positive results. Deferred outflows have a positive impact on net
assets (offsetting the NPL) and will be recognized in future reporting periods. Deferred inflows
include deferred investment losses, adjustments to assumptions based on actual negative results,
and contributions made after the measurement date. Deferred inflows have a negative impact on
net assets (similar to the NPL) and will be recognized in future reporting periods. The net impact
of these pension liability related entries on the City’s Statement of Net Position before allocations
to the San Rafael Sanitation District was $112,046,577. After allocations to the San Rafael
Sanitation District, the net impact on the City’s Statement of Net Position was $108,526,391.
72
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 9 - PENSION PLANS (Continued)
Under GASB 68, the City’s pension expense is based on the Plan’s pension expense, adjusted for
the City’s actual contributions and net pension liability.
Three components are used to calculate pension expense: (1) changes in the net pension liability;
(2) changes in benefit terms (if any): and (3) changes in actuarial assumptions and experience.
Pension expense is calculated using a different methodology than that used to derive the
actuarially determined annual contribution to the Plan. Actual pension contributions during the
reporting year were $20,352,203. Because pension expense is affected by annual changes in the
net pension liability, volatility is to be expected. For the current measurement period, investment
returns above the assumed rate were responsible for the decrease in net pension liability and had a
corresponding impact on pension expense.
The table below provides a summary of the key results during the reporting period:
Measurement Date Measurement Date
Description 6/30/2018 6/30/2017
Net Pension Liability $110,567,858 $120,649,687
Deferred Inflows 34,181,686 31,607,575
Deferred Outflows (12,350,764) (18,395,737)
Impact on Net Position before Deferred Outflows from Contributions 132,398,780 133,861,525
Additional Deferred Outflows - Contributions Subsequent to Measurement Date (20,352,203) (20,167,435)
Impact on Statement of Net Position before Allocations 112,046,577 113,694,090
Allocation of NPL to SRSD 3,487,083 3,740,703
A llocation of Deferred Inflows (measurement date) to SRSD 1,078,020 979,982
A llocation of Deferred Outflows (measurement date) to SRSD (389,518) (570,354)
Impact on Net Position before Allocation of Deferred Outflows
from Contributions to SRSD 4,175,585 4,150,331
A llocation of Additional Deferred Outflows (Contributions) to SRSD (655,399) (657,863)
Long-Term Receivable from SRSD, due to pension obligations (see Note 4F)3,520,186 3,492,468
Impact on Statement of Net Position, net of receivable from SRSD $108,526,391 $110,201,622
Pension Expense $18,704,394 $21,503,841
Summary of Results
Projection of Total Pension Liability and Net Pension Liability
Total Pension Liability (TPL) is the actuarial present value of projected benefit payments
attributed to past periods of employee service. For the purposes of Governmental Accounting
Standards Board Statement No. 68 (GASB 68), MCERA and the City have adopted a
measurement date of June 30, 2018. The beginning of year measurement of TPL is based on the
actuarial valuation as of June 30, 2017. The TPL at the end of the measurement year,
June 30, 2018, is also measured as of the valuation date of June 30, 2017 and projected to
June 30, 2018.
The Plan Fiduciary Net Position (FNP) is the fair or market value of assets. The FNP at the
beginning of the year is based on the actuarial valuation as of June 30, 2017. The FNP at the end
of the measurement year, June 30, 2018, is also measured as of the valuation date of
June 30, 2017 and projected to June 30, 2018.
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 9 - PENSION PLANS (Continued)
The Net Pension Liability (NPL) is the City liability for benefits provided through its defined
benefit plan administered by MCERA. It is calculated by reducing the TPL by the FNP. The long-
term portion of the governmental activities’ NPL is liquidated primarily by the General Fund.
Actuarial assumptions:
The total pension liability as of June 30, 2018 (measurement date) was determined by an actuarial
valuation as of June 30, 2017, using the following actuarial assumptions applied to all prior periods
included in the measurement. The key assumptions in the valuation were:
Actuarial assumptions:
Expected Return on Assets 7.00 percent per year, net of investment expenses
Discount Rate 7.00 percent per year
Price Inflation 2.75% per year
Salary Increases 3% per year plus merit component based on employee classification
and years of service.
Administrative Expenses Administrative expenses in the actuarial valuation are assumed to be
$4.917 million for FY 2017-18, to be split between employees and
employers based on their share of the overall contributions.
Administrative expenses shown in this report are based on the actual
FY 2017-18 amounts.
Post-Retirement COLA Post-retirement COLAs are assumed at a rate of 2.7% for members
with a 4% COLA cap, 2.6% for members with a 3% COLA cap, and
1.9% for members with a 2% COLA cap.
Mortality Rates for Rates of mortality for active members are specified by CalPERS 2017
Healthy Members Pre-Retirement Non-Industrial Death Rates (plus Duty-Related Death
and Inactives rates for Safety members), with the 20-year static projection used by
CalPERS replaced by generational improvements from a base year of
2014 using Scale MP-2017.
Mortality Rates for Rates of mortality among disabled members are given by CalPERS 2017
Retired Disabled Disability Mortality rates (Non-Industrial rates for Miscellaneous members
Members and Industrial Disability rates for Safety members), adjusted by 90% for
Males (Miscellaneous and Safety) and 90% for Miscellaneous Females,
with the 20-year static projection used by CalPERS replaced by generational
improvements from a base year of 2014 using Scale MP-2017.
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 9 - PENSION PLANS (Continued)
Asset Allocation Policy and Expected Long-term Rate of Return by Asset Class
The Board of Retirement has adopted an Investment Policy Statement (IPS), which provides the
framework for the management of MCERA’s investments. The IPS establishes MCERA’s
investment objectives and defines the principal duties of the Retirement Board, the custodian bank,
and the investment managers. The asset allocation plan is an integral part of the IPS and is designed
to provide an optimum and diversified mix of asset classes with return expectations to satisfy
expected liabilities while minimizing risk exposure. MCERA currently employs external investment
managers to manage its assets subject to the provisions of the policy. Plan assets are managed on a
total return basis with a long term objective of achieving and maintaining a fully funded status for
the benefits provided through the Plan. The following was the Retirement Board’s adopted asset
allocation policy as of June 30, 2018:
Long-Term
Expected Rate
Target Long-Term Expected of Return
Asset Class Allocation Real Rate of Return (with the effect of inflation)
Domestic Equity 32% 4.60% 7.35%
International Equity 22% 4.75% 7.50%
Fixed Income 23% 0.75% 3.50%
Public Real Assets 7% 3.25% 6.00%
Real Estate 8% 3.50% 6.25%
Private Equity 8% 5.10% 7.85%
Total 100%
The Long-Term returns are calculated using a 10-year geometric return derived from arithmetic
returns and the associated risk (standard deviation).
Determination of Discount Rate
The discount rate used to measure the Total Pension Liability was 7.00%. Related to the discount
rate is the funding assumption that employees will continue to contribute to the plan at the required
rates and employers will continue the historical and legally required practice of contributing to the
plan based on an actuarially determined contribution, reflecting a payment equal to annual normal
cost, a portion of the expected administrative expenses, an amortization payment for the
extraordinary losses from 2009 amortized over a closed period (21 years remaining as of the June
30, 2017 actuarial valuation), and an amount necessary to amortize the remaining Unfunded
Actuarial Liability as a level percentage of payroll over a closed period (13 years remaining as of
the June 30, 2017 actuarial valuation).
A change in the discount rate would affect the measurement of the TPL. A lower discount rate
results in a higher TPL and higher discount rates results in a lower TPL. Because the discount rate
does not affect the measurement of assets, the percentage change in the NPL can be significant for a
relatively small change in the discount rate. A one percent decrease in the discount rate increases
the TPL by approximately 13% and increases the NPL by approximately 113%. A one percent
increase in the discount rate decreases the TPL by approximately 11% and decreases the NPL by
approximately 93%.
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 9 - PENSION PLANS (Continued)
The table below shows the sensitivity of the NPL to a one percent decrease and a one percent
increase in the discount rate:
1%Discount 1%
Decrease Rate Increase
Description 6.00%7.00%8.00%
Total Pension Liability $1,072,547,443 $947,923,920 $845,324,560
Fiduciary Net Position 837,356,062 837,356,062 837,356,062
Net Pension Liability $235,191,381 $110,567,858 $7,968,498
78.1%88.3%99.1%Fiduciary Net Position as a Percentage of the Total Pension Liability
Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Pension
Resources
The impact of experience gains or losses and assumption changes on the Total Pension Liability
(TPL) are recognized in the proportionate share of the pension expense over the average expected
remaining service life of all active and inactive members of the plan. As of the measurement date,
this recognition period was 4 years.
The following tables show the current balance and sources of deferred outflows and inflows related
to the City’s defined benefit retirement plan, and the scheduled recognition of these deferred
amounts:
Deferred Deferred
Outflows of Inflows of
Description Resources Resources
Differences between expected and actual experience $1,026,038
Changes in assumptions $10,243,832
Change in proportion 2,106,932 5,882,404
Difference between City contributions and proportionate share
of contributions 9,065,783
Actual FY 18-19 contributions (post measurement date)20,352,203
Net difference between projected and actual earnings
on pension plan investments 18,207,461
Deferred Inflows and Outflows Before Allocations $32,702,967 $34,181,686
Allocation of Deferred Inflows and Outflows to SRSD
As of measurement date $389,518 $1,078,020
Post-measurement date 655,399
Net Deferred Inflows and Outflows $31,658,050 $33,103,666
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 9 - PENSION PLANS (Continued)
The $20,352,203 reported as deferred outflows of resources related to contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the year ended
June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized as pension expense as follows:
Amortization
Year ended June 30 Amount
2020 ($4,765,259)
2021 (4,671,470)
2022 (8,312,697)
2023 (4,081,496)
Total ($21,830,922)
NOTE 10 - PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION
RETIREMENT PLANS)
The City contributes to the Public Agency Retirement System (PARS), which administers a defined
contribution retirement plan. A defined contribution retirement plan provides retirement benefits in
return for services rendered, provides an individual account for each participant, and specifies how
contributions to the individual’s accounts are determined instead of specifying the amount of
benefits the individual is to receive. The benefits a participant will receive depend on the amount
contributed to the participant’s account, and the returns earned on investments on those
contributions. The Plan’s trust administrator is Phase II, P.O. Box 12919, Newport Beach,
California 92658.
As established by the plan, all eligible part-time and temporary employees of the City become
participants in the plan from the date that they are hired. An eligible employee is any employee
who, at any time during which the employer maintains this plan, is not accruing a benefit under the
Marin County Employees’ Retirement Fund.
As determined by the plan, each employee must contribute 3.75% of gross earnings to the plan. The
City contributes an additional 3.75% of the employee’s gross earnings. Contributions made by an
employee and the employer vest immediately.
During the year, the City and employees each contributed $132,472. The total covered payroll of
employees participating in the plan for the year ended June 30, 2019, was $3,700,356. The total
payroll for the year was $44,634,340.
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 11 - POST-EMPLOYMENT HEALTH CARE BENEFITS
Plan Description
The City provides certain health care benefits for retired employees and their spouses under an
Agent Multiple-Employer Defined Benefit Plan. The benefit provisions were established under the
authority of the 1937 Act, Section 31450, et. seq. of the Government Code. Employees who meet
the vesting criteria become eligible for these benefits if they receive a retirement benefit from the
Marin County Employees’ Retirement Association within 120 days of retirement from City
employment.
The provisions and benefits of the City’s Other Post Employment Benefit Plan, in effect at June 30,
2019, are summarized as follows:
Elected Officials, Mid-Management, &
Unrepresented Management All other Bargaining Units
Eligibility
-Age 50 (age 55 if hired > 7/1/11) with 10 years services (Including reciprocity) OR
-
-Age 70
- Disability Retirement
Benefit Hired < 1/1/09 Full premium/cap Hired < 1/1/10 Up to cap
Hired ≥ 1/1/09 PEMHCA Min Hired ≥ 1/1/10 PEMHCA Min
Surviving Spouse
Benefit Continuation to surviving spouse
Medicare Part B Hired < 4/1/07 Full reimbursement None
Hired ≥ 4/1/07 None
Other No Dental, Vision, or Life Benefits
Retire directly from the City:
30 years service (Miscellaneous), 20 years service (Safety) OR
Membership in the plan consisted of the following at June 30, 2019, the measurement date:
Active plan members 366
Inactive employees or beneficiaries currently
receiving benefit payments 349
Inactive employees entitled to but not yet
receiving benefit payments 70
Total 785
Funding Policy and Actuarial Assumptions
The City’s net OPEB liability was measured using a Total OPEB Liability and Fiduciary Net
Position measured as of June 30, 2018, using an actuarial valuation as of June 30, 2017. The
following actuarial assumptions were used in the valuation: (a) 6.75% investment rate of return and
(b) 2.75% of general inflation increase, and (c) a healthcare trend of declining annual increases
ranging from 7.5% in 2019 to 4.0% for the years starting 2076. In addition, the fixed dollar benefit
amounts are assumed to be held flat in the future and the premium related benefits are assumed to
increase with the healthcare trend rate.
78
I
I
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 11 - POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an
actuarial experience study for the period July 1, 2016 through June 30, 2017.
The long-term expected rate of return on OPEB plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rates of return (expected returns,
net of OPEB plan investment expense and inflation) are developed for each major asset class. These
ranges are combined to produce the long-term expected rate of return by weighing the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class
are summarized in the following table:
Long-Term
Expected
Long-Term Rate of Return
Target Expected (with the effect
Asset Class Allocation Real Rate of Return of inflation)
Public Equity 57% 4.82% 7.57%
Fixed Income 27% 1.47% 4.22%
TIPS 5% 1.29% 4.04%
Commodities 3% 0.84% 3.59%
REITs 8% 3.76% 6.51%
Total 100%
Assumed Long-Term Rate of Inflation 2.75%
Assumed Long-Term Investment Expenses n/a
Expected Long-Term Net Rate of Return 6.75%
Discount Rate 6.75%
The Expected Long-Term Rate of Return is provided by CalPERS’ Strategic Asset Allocation
Overview in August 2014 – Strategy 1.
Discount Rate
The discount rate used to measure the total OPEB liability was 6.75 percent. The projection of cash
flows used to determine the discount rate assumed that City contributions will be made at rates
equal to the actuarially determined contribution rates. Based on these assumptions, the OPEB plan's
fiduciary net position was projected to be sufficient to make projected benefit payments and the
plan assets are expected to be invested using the strategy to achieve the expected return.
79
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 11 - POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Change in Net OPEB Liability
Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2017 $51,581,000 $17,884,000 $33,697,000
Changes Recognized for the Measurement Period:
Service Cost 822,000 822,000
Interest on the total OPEB liability 3,435,000 3,435,000
Changes in benefit terms
Difference between expected and actual experience -
Changes of assumptions -
Contributions from the employer 3,573,000 (3,573,000)
Net investment income 1,425,000 (1,425,000)
Administrative expenses (43,000) 43,000
Benefit payments and refunds (3,028,000) (3,028,000)
Net Changes during July 1, 2017 to June 30, 2018 1,229,000 1,927,000 (698,000)
Balance at June 30, 2018 (Measurement Date)$52,810,000 $19,811,000 $32,999,000
Increase (Decrease)
The benefit payments and refunds includes implied subsidy benefit payments in the amount of
$771,000.
Sensitivity of the net OPEB liability to changes in the discount rate
The following presents the net OPEB liability of the City, as well as what the City's net OPEB
liability would be if it were calculated using a discount rate that is 1-percentage-point lower
(5.75 percent) or 1-percentage-point higher (7.75 percent) than the current discount rate:
Discount Rate -1% Current Discount Discount Rate +1%
(5.75%) Rate (6.75%) (7.75%)
$39,267,000 $32,999,000 $27,753,000
Plan's Net OPEB Liability/(Asset)
Sensitivity of the net OPEB liability to changes in the health care cost trend rates
Healthcare Cost
Discount Rate -1% Trend Rates Discount Rate +1%
$29,161,000 $32,999,000 $37,724,000
Plan's Net OPEB Liability/(Asset)
80
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 11 - POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Detailed information about the OPEB plan’s fiduciary net position is available in the separately
issued plan financial report. That report may be obtained from the California Public Employees’
Retirement System, CERBT, P.O. Box 942703, Sacramento, CA, 94229.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
related to OPEB
Components of OPEB Expense for fiscal year 2018-2019 were as follows:
Service Cost $822,000
Interest on Total OPEB Liability 3,435,000
Projected earning on investments (1,206,000)
Employee contributions
Administrative expense 43,000
Change in benefits
Recognition of deferred outflows/inflows:
Experience (708,000)
Assumptions 833,000
Asset Returns 48,000
OPEB Expense $3,267,000
Components of deferred outflows of resources and deferred inflows of resources related to OPEB at
June 30, 2019 were as follows:
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:
Changes of assumptions $3,092,205 $72,795 $3,165,000
Employer contributions made subsequent
to the measurement date 3,639,325 85,675 3,725,000
Total deferred outflows of resources $6,731,530 $158,470 $6,890,000
Deferred inflows of resources:
Differences between expected and actual
experience $2,629,107 $61,893 $2,691,000
Net difference between projected and
actual earnings on plan investments 92,815 2,185 95,000
Total deferred inflows of resources $2,721,922 $64,078 $2,786,000
The difference between projected OPEB plan investment earnings and actual earnings is amortized
over a five-year period. The remaining gains and losses are amortized over the expected average
remaining service life.
81
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 11 - POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
$3,725,000 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30,
2020. Amounts reported as deferred outflows of resources and deferred inflows of resources related
to OPEB will be recognized as future OPEB expense as follows:
Measurement Period Amortized
Ended June 30 Amount
2020 $173,000
2021 173,000
2022 (23,000)
2023 56,000
$379,000
The table below provides a summary of the key results during this reporting period.
Measurement Date Measurement Date
Description June 30, 2018 June 30, 2017
Net OPEB Liability $32,999,000 $33,696,000
Deferred Inflows 2,786,000 3,399,000
Deferred Outflows (3,165,000)(4,170,000)
Impact on Net Position before deferred contributions 32,620,000 32,925,000
Additional Deferred Outflows - Contributions subsequent to measurement date (3,725,000)(3,563,000)
Impact on Statement of Net Position before Allocations 28,895,000 29,362,000
Allocation of NOL to SRSD 1,249,127 1,295,611
Allocation of Deferred Inflows (measurement date) to SRSD 105,460 130,692
Allocation of Deferred Outflows (measurement date) to SRSD (119,806)(160,337)
Impact on Net Position before deferred contributions to SRSD 1,234,781 1,265,966
Allocation of Additional Deferred Outflows (contributions) to SRSD (141,004)(136,997)
Long-Term Receivable from SRSD, due to OPEB obligations (see Note 4F)1,093,777 1,128,969
Impact on Statement of Net Positions, net of receivable from SRSD $27,801,223 $28,233,031
OPEB Expense $3,267,000 $3,395,000
Covered Employee Payroll $36,350,000 $32,885,000
Summary of Results
82
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 12 - JOINTLY GOVERNED ORGANIZATIONS
The City participates in the jointly governed organizations discussed below through formally
organized and separate entities established under the Joint Exercise of Powers Act of the State of
California. As separate legal entities, these entities exercise full powers and authorities within the
scope of the related Joint Powers Agreements including the preparation of annual budgets,
accountability for all funds, the power to make and execute contracts and the right to sue and be
sued. Each joint organization is governed by a board consisting of representatives from member
municipalities. Each board controls the operations of the respective joint organization, including
selection of management and approval of operating budgets, independent of any influence by
member municipalities beyond their representation on that board. Obligations and liabilities of this
joint organization are not the City’s responsibility and the City does not have an equity interest in
the assets of each joint organization except upon dissolution of the joint organization.
A.The Marin County Integrated On-Line Library System (System)
The MARINet Library Consortium was formed to provide for the procurement, ownership,
operation, maintenance, and governance of shared library services among the libraries, public and
academic, in Marin County. Current services shared and paid for on a consortial level through
annual membership dues include an integrated library system including patron database,
cataloging system, and online catalog of materials; delivery of items between libraries in Marin, a
statewide library delivery service called Link+, numerous online resources, and more. The
Governing Board of the System consists of the library director or designated alternate of each
participant in the System. In accordance with the cost sharing formula developed by the library
directors of the participants, the City’s share of annual operating costs is 16% or $258,164 for the
year ended June 30, 2019. Financial statements of the System can be obtained from the County
Librarian, Marin County Free Library, Marin County Civic Center, 3501 Civic Center Drive, San
Rafael, California 94903.
B. The Marin General Services Authority (MGSA)
The MGSA was formed by the County of Marin and twelve local agencies to acquire street light
facilities, operate the facilities during an eminent domain action against PG&E, and coordinate
the subsequent transfer of the facilities to the individual local agencies. Each of the local agency’s
share of contributions was based on the number of street lights to be acquired in the local
agency’s individual jurisdiction in relation to the total number of street lights to be acquired by
the Marin Streetlight Acquisition Joint Powers Authority. MGSA services now include street
light maintenance, abandoned vehicle abatement, taxicab regulation and administrative
responsibility for MarinMap. The City’s contribution to MGSA was $650,570 for the year ended
June 30, 2019. Financial statements of the MGSA can be obtained at 555 Northgate Drive, Suite
230, San Rafael, California 94903.
83
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 12 - JOINTLY GOVERNED ORGANIZATIONS (Continued)
C. The Marin Emergency Radio Authority (MERA)
MERA was formed on February 28, 1998, by the County of Marin and 25 local agencies within
the County to plan, finance, implement, manage, own, and operate a County-wide public safety
and emergency radio system. The Governing Board consists of one representative from each
member. In February 2010, MERA refinanced its 1999 Revenue Bonds; the 1999 bonds were
originally issued in the amount of $26,940,000 to finance the acquisition of the system. The 2010
refunding bonds were issued at a premium of $934,832 above their par value of $18,575,000.
These bonds mature annually through 2021 and bear interest from 2% to 4%. Similar to the
original bonds, the refunding bonds are special obligations of MERA and are secured by the
Members’ service payments. One February 1, 2007, MERA borrowed $2,250,000 from Citizens
Business Bank. The note is being amortized over 14 ½ years at an annual interest rate of 4.43%.
Loan Payments are funded by member operating payments. The costs of maintenance, operation,
and debt service are divided on a pro rata share based on an agreed-upon formula established by a
majority of the Governing Board. The members entered into a Project Operating Agreement on
February 1, 1999.
Under the Operating Agreement, members are obligated to contribute service payments to cover
the Authority’s operations and debt service. The City’s portion of the obligation is 16.913%. The
first operating service payment was in July 1999. The first debt service payment was in August
2002. The City contributed $680,205 of the Authority’s operation and debt service for the fiscal
year ended June 30, 2019. The City has established a reserve in its internal service funds to pay
future service payments. Financial statements of the MERA can be obtained at 95 Rowland Way,
Novato, California 94945.
D. The Countywide Planning Agency
The Agency was established on October 16, 1990, by the County of Marin and the cities of
Belvedere, Corte Madera, Fairfax, Larkspur, Mill Valley, Novato, Ross, San Anselmo, San Rafael,
Sausalito, and Tiburon to implement countywide performance standards for traffic, housing, water
and sewer facilities, and environmental protection to ensure that residential and commercial growth
does not exceed local water, sewer and transportation capacities. The Governing Board of the
Countrywide Planning Agency consists of one member of the County Board of Supervisors and one
member of the City Council of each participating city. Financial statements of the Agency can be
obtained at 3501 Civic Center Drive, San Rafael, California 94903.
E. The Marin Telecommunications Agency
The Agency was established to regulate the rates for cable television service and equipment and
to advise the participants of their license authority. The Governing Board of the Marin
Telecommunications Agency consists of one member from each of the eleven participating
agencies. The City’s contribution to the Agency was $72,914 for the year ended June 30, 2019.
Financial statements of the Agency can be obtained at 555 Northgate Drive, Suite 230, San
Rafael, California 94903.
84
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 12 - JOINTLY GOVERNED ORGANIZATIONS (Continued)
F.The Marin County Hazardous and Solid Waste Joint Powers Authority
The Authority was established by the County, local cities, and waste franchising districts to
finance, prepare and implement source reduction and recycling elements on a county-wide
integrated waste management plan as required by State Assembly Bill 939. The City’s
contribution to the Authority was $17,850 for the year ended June 30, 2019. Financial statements
of the Authority can be obtained at 3501 Civic Center Drive, San Rafael, California 94903.
G. Central Marin Sanitation Agency (CMSA)
In October 1979, the District entered into a joint powers agreement with three neighboring
sanitation agencies in central Marin County forming the Central Marin Sanitation Agency
(CMSA). CMSA serves as a regional wastewater treatment plant for its four member agencies
and San Quentin Prison (SQ) and is governed by a six-member Board of Commissioners, two
appointed by the Board of Directors of the San Rafael Sanitation District (SRSD), two appointed
by the Board of Directors of the San Rafael Sanitation District No. 1 (SD 1), one appointed by the
governing board of Sanitary District No. 2 (SD 2), and one appointed by the City Council of the
City of Larkspur (Larkspur).
Total project costs for the joint venture were funded from federal (75%) and state (13%) clean
water grants and from local shares (12% total) allocated among the member agencies and SQ
based upon the weighted average of the strength and volume of sewage flows per member at
inception of the project. Final individual local shares of total project costs were approximately
$7.6 million for SRSD, $6.3 million for SD 1, $1.6 million for SD 2, $1 million for Larkspur, and
$1.4 million for SQ. CMSA derives its annual funding for its operations and capital programs
almost exclusively from service charges to member agencies. The joint powers agreement does
not provide an explicit measurable right as required to establish an equity interest for any of the
joint venture participants, and in addition to, stipulates that all excess capital funds, if any, and all
excess administration, operations and maintenance funds from whatever source, if any, are the
property of CMSA.
The financial statements of the Agency are available at the CMSA office. Condensed financial
information for the Agency is presented below for June 30, 2018 and 2017, the most recent
information available.
2018 2017
Total assets $99,091,285 $99,239,615
Deferred outflows of resources 7,332,920 5,961,780
Total liabilities (62,147,599) (61,321,187)
Deferred inflows of resources (2,056,973) (1,260,848)
Net position $42,219,633 $42,619,360
Total revenues $17,353,966 $17,235,271
Total expenses (16,351,993) (16,793,252)
Total contributions and adjustments (1,025,880) (1,283,532)
Prior period adjustment (375,820) (2,164,585)
Change in net position ($399,727) ($3,006,098)
85
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 13 - RISK MANAGEMENT
A. City
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 established the
Risk Management Internal Service Fund to account for and finance its uninsured risks of loss.
The City manages risk by participating in a public entity risk pool (described below), purchasing
insurance and by retaining certain risks.
Risk Coverage
Liability Coverage
The City is a member of the California Joint Powers Risk Management Authority (CJPRMA)
which covers general liability claims up to $40,000,000. The purpose of CJPRMA is to spread the
adverse effects of general liability losses among the member agencies. The City also purchases
commercial insurance for property damage claims with an insured amount of $114,220,740. The
City is self-insured up to $500,000 for each general liability claim and $25,000 for each property
damage claim. Once the self-insured retention is met CJPRMA becomes responsible for payment
of all liability claims up to the limit. The City contributed a total of $334,004 in liability coverage
premiums during the fiscal year ended June 30, 2019. Five years after settlement of all claims for
a program year, CJPRMA will retroactively adjust premium deposits for any excess or deficiency
in deposits related to paid claims and reserves. Financial statements for the risk pools may be
obtained from CJPRMA at 3201 Doolan Road, Suite 285, Livermore, California 94551.
Workers’ Compensation Coverage
The City purchases insurance for workers’ compensation through Safety National Casualty
Corporation Excess Workers’ Compensation and Employers Liability Insurance with coverage up
to statutory limits. The City is self-insured up to $1,000,000 for each worker’s compensation
claim.
Insurance Internal Service Funds and Financial Reporting
The City records estimated liabilities for claims filed up to the amounts for which it retains risk in
the General Liability and Workers Compensation Internal Service Funds. Charges to the General
Fund and other funds are based on relative general liability and workers compensation risk
associated with the activities of each fund. Charges are recorded in the funds as expenditures or
expenses and as revenues in the respective internal service funds.
The Governmental Accounting Standards Board (GASB) requires municipalities to record their
liability for uninsured claims and to reflect the current portion of this liability as an expenditure in
their financial statements. As discussed above, the City has coverage for such claims, but it has
retained the risk for the deductible or uninsured portion of these claims.
86
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 13 - RISK MANAGEMENT (Continued)
The City’s liability for uninsured general liability claims and workers’ compensation claims,
including claims incurred but not reported, are reported in the Statements of Net Position.
General Workers' Totals, as of June 30
Liability * Compensation ** 2019 2018
Balance, beginning of year $3,557,907 $5,985,768 $9,543,675 $8,747,338
Current year claims and changes
in estimates 984,984 1,022,113 2,007,097 2,601,883
Claims paid (926,826) (902,398) (1,829,224) (1,805,546)
Balance, end of year $3,616,065 $6,105,483 $9,721,548 $9,543,675
Due in one year $1,100,676 $1,252,599 $2,353,275 $2,696,736
Due in more than one year 2,515,389 4,852,884 7,368,273 6,846,939
Total claim liabilities $3,616,065 $6,105,483 $9,721,548 $9,543,675
* Liability based on an actuarial valuation as of March 31, 2018, extrapolated to June 30, 2019
** Liability based on an actuarial valuation as of December 31, 2017, extrapolated to June 30, 2019
The claims settlements have not exceeded insurance coverage for the past three years.
B.District
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction
of assets; errors and omissions; injuries to employees and natural disaster. The District
participates in a joint powers agreement with other entities forming the California Sanitation Risk
Management Authority (CSRMA), a public entity risk pool operating as a common risk
management and insurance program for 60 member entities. CSRMA is governed by a Board of
Directors composed of one representative from each member agency and meets three times per
year in conjunction with conferences of the California Association of Sanitation Agencies. The
Board controls the operations of CSRMA, including selection of management and approval of
operating budgets, independent of any influence by member entities.
The District pays annual premiums to CSRMA for its primary insurance and property insurance
programs. Primary and property insurance programs are fully insured wherein CSRMA
purchases insurance as a group thereby reducing its costs. CSMRA provides both fully insured
and pooled insurance programs for its participating member entities. Because all employees of
the District are contracted employees from the City of San Rafael, workers’ compensation
insurance is not carried by the District but is provided through the City.
The District’s primary and property insurance programs transfer risk to commercial insurance
policies for claims above deductibles, while the District retains risk for claims to the extent of
deductibles. Settled claims for CSRMA have not exceeded coverage in any of the past three
fiscal years.
87
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 13 - RISK MANAGEMENT (Continued)
The following summarizes active insurance policies as of June 30, 2019 together with coverage
limits for each insured event:
Insurance Program Limits Coverage Description
CSRMA - Allied World Ins. $3,000,000 Gen/Mgt liability - aggregate
CSRMA - Allied World Ins. $1,000,000 Gen/Mgt liability - occurrence
CSRMA - Allied World Ins. $1,000,000 Auto liability - accident
CSRMA - Allied World Ins. $4,000,000 Excess liability
CSRMA - Public Entity Property
Insurance Program (P.E.P.I.P.)$12,174,235 Special form property
CSRMA - Illinois Union Ins. $25,000,000 Pollution liability - tier 1
CSRMA - Illinois Union Ins. $2,000,000 Pollution liability - tier 2
CSRMA - Lloyds of London $2,000,000 Cyber liability - third party
CSRMA - Lloyds of London $2,000,000 Cyber liability - third party
CSRMA - Travelers Ins. $25,000 Identity theft
The financial statements of CSRMA are available at their office: 100 Pine Street, 11th Floor, San
Francisco, CA 94111. Condensed financial information for CSRMA is presented below for the years
ended June 30, 2018 and 2017 (latest information available).
2018 2017
Assets $25,703,119 $28,419,707
Liabilities (17,997,369) (17,241,037)
Net assets $7,705,750 $11,178,670
Revenues $10,453,268 $11,166,523
Expenses (13,926,188) (11,588,811)
Increase (decrease) in net assets (3,472,920) ($422,288)
NOTE 14 - COMMITMENTS AND CONTINGENCIES
A.City
Litigation
The City is a defendant in several lawsuits arising from its normal operations. City management
is of the opinion that the potential claims against the City not covered by insurance resulting from
such litigation would not materially affect the basic financial statements of the City.
Major Contracts
In December 2017, the City entered into a contract for the construction of a public safety
administrative center and fire station in the amount of $36,727,000. The primary source of
funding for these projects comes from a portion of General Fund revenues attributable to the
Measure E Transactions and Use Tax. Lease Revenue Bonds were issued in March 2018 to
ensure sufficient funds on hand. As of June 30, 2019, remaining obligations on the contract total
approximately $21,343,000. All remaining obligations are expected to be satisfied during the
fiscal year ending June 30, 2020.
88
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Continued)
B.District
As of June 30, 2019, SRSD had several contracts for sewer improvement projects with remaining
obligations of approximately $1,471,000, the majority of which are expected to be completed
within the 2019-2020 fiscal year.
NOTE 15 - SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES
A. Redevelopment Dissolution
In an effort to mitigate its budget deficit, the State of California adopted ABx1 26 on June 28,
2011, amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities
except for limited specified activities as of that date and dissolved redevelopment agencies on
January 31, 2012.
The suspension provisions prohibited all redevelopment agencies from a wide range of activities,
including incurring new indebtedness or obligations, entering into or modifying agreements or
contracts, acquiring or disposing of real property, taking actions to adopt or amend
redevelopment plans and other similar actions, except actions required by law or to carry out
existing enforceable obligations, as defined in ABx1 26.
In addition, ABx1 26 and AB1484 directed the State Controller to review the activities of all
redevelopment agencies and successor agencies to determine whether an asset transfer between
an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did
occur and the public agency that received the asset is not contractually committed to a third party
for the expenditure or encumbrance of the asset, the legislation requires the State Controller to
order the asset returned to the redevelopment agency. This review was performed in May 2013,
and a report issued on July 29, 2013 (see section B of this footnote).
The City elected to become the Successor Agency to the Redevelopment Agency, and on
February 1, 2012, the Redevelopment Agency’s remaining net assets were distributed to the
Successor Agency. ABx1 26 requires the establishment of an Oversight Board to oversee the
activities of the Successor Agency and one was established on April 2, 2012. The activities of the
Successor Agency are subject to review and approval of the Oversight Board, which is comprised
of seven members.
The activities of the Successor Agency are reported in the Successor Agency to the
Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the
Oversight Board. The City provides administrative services to the Successor Agency to wind
down the affairs of the former Redevelopment Agency.
Pursuant to the dissolution of the City of San Rafael Redevelopment Agency, certain assets of the
Redevelopment Agency were distributed to the Housing Successor and all remaining
Redevelopment Agency assets and liabilities were distributed to the Successor Agency.
89
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 15 - SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
The City elected to become the Housing Successor and on February 1, 2012. Assets and
Liabilities relating to the Housing Successor are reported in the City’s Low and Moderate Income
Housing Special Revenue Fund.
B. Redevelopment Property Tax Trust Fund (RPTTF)
The Successor Agency’s primary source of revenue comes from the RPTTF allocation distributed
by the County. Property tax revenues for each Project Area are deposited into the RPTTF, which
redistributes each Project Area’s tax increment under specified formulas. The County Auditor
administers the RPTTF and disburses twice annually from this fund pass-through payments to
affected taxing entities, an amount equal to the total of obligation payments that are required to be
paid from tax increment as denoted on the Recognized Obligation Payment Schedule (“ROPS”).
The disbursements are established in the treasury of the Successor Agencies, and various allowed
administrative fees and allowances. Any remaining balance is then distributed by the County
Auditor back to affected taxing entities under a prescribed method that accounts for pass-through
payments. The County Auditor is also responsible for the distributing other monies received from
the Successor Agency (from sale of assets, etc.) to the affected taxing entities. Successor agencies
in turn will use the amounts deposited into their respective funds to make payments for principal
and interest on loans and monies advanced to or indebtedness incurred by the dissolved
redevelopment agencies.
C. Long-Term Debt
1999 Tax Allocation Bonds and Capital Appreciation Bonds
On June 16, 1999, the former Agency issued Tax Allocation Bonds in the amount of $23,504,004.
The bonds were issued as Current Interest Bonds in the aggregate principal amount of
$21,115,000 and as Capital Appreciation Bonds in the original amount of $2,389,004. The
proceeds of the bonds were used to finance certain redevelopment activities of benefit to the
former Agency’s Central San Rafael Redevelopment Project Area.
In December 2009 of the former Agency exercised the redemption option of the Current Interest
Bonds. The outstanding balance of the Bonds was refunded, on a current basis, through the
issuance of the 2009 Tax Allocation Refunding Bonds as discussed below.
The Capital Appreciation Bonds mature annually after December 1 from 2018 to 2022, in
amounts ranging from $1,440,000 to $2,070,000 and bear interest at rates from 5.58% to 5.60%.
Interest on the Capital Appreciation Bonds will compound on each interest premium date and will
be payable solely at maturity. The bonds are secured, on parity with the 1992 and 1995 bonds
(refunded in 2002), by a pledge and a lien on tax revenues and amounts on deposit in certain
funds and accounts held by the fiscal agent.
90
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 15 - SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
2002 Tax Allocation Refunding Bonds
On October 9, 2002, the former Agency issued Tax Allocation Refunding Bonds in the amount of
$25,020,000. The proceeds of the bonds were used to refund the 1992 Tax Allocation Refunding
Bonds and the 1995 Tax Allocation Bonds. The Bonds mature annually each December 1 from
2002 to 2022, in amounts ranging from $540,000 to $1,920,000 and bear interest at rates ranging
from 2.00% to 5.25%. Interest is payable semiannually on June 1 and December 1. The Bonds
maturing on or after December 1, 2013, are subject to optional redemption prior to maturity, in
whole or in part, and by lot within any one maturity, prior to their respective maturity dates, on
any date on or after December 1, 2012, at a price equal to the principal amount, plus accrued
interest on the redemption date. The bonds are payable from tax revenues to be derived from the
redevelopment activities of the former Agency related to the Central San Rafael Redevelopment
Project Area.
2009 Tax Allocation Refunding Bonds
On December 14, 2009, the former Agency issued 2009 Tax Allocation Refunding Bonds in the
amount of $14,660,000 bearing interest at rates from 3.00% to 5.00%. The proceeds of the Series
2009 Bonds were used to refund the former Agency’s 1999 Tax Allocation Current Interest
Bonds and to advance funds to the City to finance street and parking improvements for the benefit
of the Agency’s Central San Rafael Redevelopment Project. Principal payments are due annually
on December 30 and interest payable semiannually on June 30 and December 30.
The Series 2009 Bonds maturing on or before December 1, 2019, are not subject to optional
redemption prior to their respective stated maturities. The Series 2009 Bonds maturing on or
after December 1, 2020, are subject to optional redemption as a whole or in part either on a pro
rata basis among maturities or in inverse order of maturity, and by lot within any one maturity,
prior to their respective maturity dates, at the option of the Agency, on any date on or after
December 1, 2019, at a price equal to the principal amount of such Series 2009 Bonds called for
redemption, together with interest accrued on the date fixed for redemption, without premium.
Use of Tax Increment
The former Agency pledged all future tax increment revenues for the repayment of the 1999
Capital Appreciation Bonds, and the 2002 and 2009 Tax Allocation Refunding Bonds. The
pledge of all future tax increment revenues ends upon repayment of $16.1 million in remaining
debt service on the Bonds, which is scheduled to occur in 2023. For fiscal year June 30, 2019,
tax increment revenues amounted to $3.8 million which was used to make the debt service
payments of $3.6 million. The bond covenants contain events of default that require the revenue
of the Agency to be applied by the Trustee as specified in the terms of the agreement if any of the
following conditions occur: default on debt service payments; the failure of the Agency to
observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing
by the Agency; or if any court or competent jurisdiction shall assume custody or control of the
Agency. The Agency’s bonds also contain a subjective acceleration clause that allows the trustees
or holders, who hold the majority of the aggregate principal amount of the notes, to accelerate
payment of the entire principal amount outstanding and interest accrued to become immediately
due if they determine that a material adverse change occurs.
91
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 15 - SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
The following table summarizes the activity for the fiscal year ended June 30, 2019:
Authorized Balance Balance Current
and Issued June 30, 2018 Additions Retirements June 30, 2019 Portion
San Rafael Redevelopment Agency
1999 Tax Allocation Bonds
Capital Appreciation Bonds
5.58%-5.6%, due 12/1/2022 $2,389,004 $6,782,447 $344,403 $1,440,000 $5,686,850 $1,440,000
2002 Tax Allocation Refunding Bonds
2.00%-5.25%, due 12/1/2021 25,020,000 2,310,000 540,000 1,770,000 565,000
2009 Tax Allocation Refunding Bonds
3.00%-5.00%, due 12/1/2022 14,660,000 6,645,000 1,210,000 5,435,000 1,210,000
Add: deferred bond premium costs 399,301 79,861 319,440
Total Successor Agency Long-term Debt $16,136,748 $344,403 $3,269,861 $13,211,290 $3,215,000
Debt Service Requirements
Annual debt service requirements are shown below:
For the Year Governmental Activities
Ended June 30 Principal Interest
2020 $3,309,082 $297,019
2021 3,389,231 214,175
2022 3,404,749 120,819
2023 3,586,374 36,500
Totals 13,689,436 $668,513
Reconciliation of long-term debt:
Less: unaccreted discount (797,586)
Less: deferred bond premium costs 319,440
$13,211,290
D. Other Long-Term Obligations
During the fiscal year ending June 30, 2013, the San Rafael Successor Agency Oversight Board
approved two personnel-related obligations of the former Redevelopment Agency. On August 30,
2012, the Oversight Board approved the inclusion of $1,904,431, representing the unfunded pension
liability attributable to former Redevelopment Agency employees; the repayment is being made in
ten equal, annual installments.
The following table summarizes the activity for the fiscal year ended June 30, 2019:
Approved Balance Balance
Amount June 30, 2018 Retirements June 30, 2019
Unfunded Pension Liability $1,904,431 $571,330 $190,443 $380,887
Total Long-Term Obligations $571,330 $190,443 $380,887
92
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
NOTE 15 - SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
Annual repayment requirements are shown below:
For the Year Ended
June 30 Principal
2020 $190,443
2021 190,444
Totals $380,887
E. Commitment and Contingencies
State Approval of Enforceable Obligation
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi-
annually that contains all proposed expenditures for the subsequent six-month period. The ROPS
is subject to the review and approval of the Oversight Board as well as the State Department of
Finance. As of June 30, 2019, the Successor Agency had prepared twelve ROPS, all of which
have been approved by the Oversight Board and the California Department of Finance. The
Department of Finance has stated that all items on a future ROPS are subject to a subsequent
review. The amount, if any, of current obligations that may be denied by the Department of
Finance cannot be determined at this time. The City expects such amounts, if any, to be
immaterial.
93
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2019
Measurement date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018
City's proportionate share 30.0453% 36.7394% 34.9538% 32.7180% 33.4752%
Proportionate share of total pension liability $677,753,565 $907,195,058 $900,629,287 $878,483,703 $947,923,920
Proportionate share of fiduciary net position 603,499,779 764,871,931 733,574,437 757,834,016 837,356,062
Proportionate share of the net pension liability $74,253,786 $142,323,127 $167,054,850 $120,649,687 $110,567,858
Plan fiduciary net position as a percentage of the total pension liability 89.04% 84.31% 84.31% 86.27% 88.34%
Covered payroll (report date)$31,073,560 $32,126,272 $32,885,135 $36,349,651 $33,106,430
Net pension liability as a percentage of covered payroll 236.26% 443.01% 508.00% 331.91% 333.98%
* - The fiscal year ended June 30, 2015 was the first year of implementation, therefore only five years are shown
Last 10 years*
Schedule of the City's Proportionate Share of the Net Pension Liability
Cost-Sharing Multiple Employer Plan
94
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2019
Schedule of Contributions
Defined Benefit Pension
Cost-Sharing Multiple Employer
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
Fiscal year ended, June 30 2015
Contractually required contribution 17,802,358$
Contributions in Relation to the
Contractually required contribution 17,802,358
Contribution Deficiency/ (Excess)-$
Covered payroll 31,073,560$
Contributions as a percentage of
covered payroll 57.29%
Notes to Schedule
Valuation Date / Timing 6/30/2013 (for contributions made in FY2014-2015)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2014-15):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Actuarial Loss from 2009
Remaining Amortization period Unfunded liability - 17 years / Extraordinary Actuarial Loss - 25 years
Asset valuation method 5-year smoothed market, 80% /120% corridor around market
Inflation 3.25%
Salary increases 3.25% plus merit component based on employee classification and years of service
Investment Rate of Return 7.50%
Retirement Age
Healthy Mortality Sex distinct RP-2000 Combined Mortality projected to 2010 using Scale AA
with ages set back one year for male members / two years for female members
Disabled Mortality Sex distinct RP-2000 Combined Mortality projected to 2010 using Scale AA
with ages set forward three years for all members
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
95
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2019
Fiscal year ended, June 30 2016
Contractually required contribution 19,339,577$
Contributions in Relation to the
Contractually required contribution 19,339,577
Contribution Deficiency/ (Excess)-$
Covered payroll 32,126,272$
Contributions as a percentage of
covered payroll 60.20%
Notes to Schedule
Valuation Date / Timing 6/30/2014 (for contributions made in FY2015-2016)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2015-16):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Actuarial Loss from 2009
Remaining Amortization period Unfunded liability - 16 years / Extraordinary Actuarial Loss - 24 years
Asset valuation method 5-year smoothed market, 80% /120% corridor around market
Inflation 3.25%
Salary increases 3.25% plus merit component based on employee classification and years of service
Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality CalPERS 2014 Pre-Retirement Non-Industrial Death rates (plus Duty-Related Death rates for
Safety Members), with the 20-year static projection used by CalPERS replaced by
generational improvements from a base year of 2009 using Scale MP-2014
Disabled Mortality CalPERS 2014 Disability Mortality rates (Non-Industrial rates for Miscellaneous members
and Industrial Disability rates for Safety members), adjusted by 90% for Males and Females
(Miscellaneous and Safety) with the 20-year static projection used by CalPERS replaced by
generational improvements from a base year of 2009 using Scale MP-2014
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Defined Benefit Pension
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
(Continued)
Cost-Sharing Multiple Employer
Schedule of Contributions
96
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2019
Fiscal year ended, June 30 2017
Contractually required contribution 20,003,001$
Contributions in Relation to the
Contractually required contribution 20,003,001
Contribution Deficiency/ (Excess) -$
Covered payroll 32,885,135$
Contributions as a percentage of
covered payroll 60.83%
Notes to Schedule
Valuation Date / Timing 6/30/2015 (for contributions made in FY2016-2017)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2016-17):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(24 years remaining as of 6/30/14), the remaining UAL as of June 30, 2013
(16 years as of 6/30/14), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 19 years remaining as of June 30, 2016
Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages
set back one year for male members/two years for female members
Disabled Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages
set forward three years for all members
Schedule of Contributions
Defined Benefit Pension
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
(Continued)
Cost-Sharing Multiple Employer
97
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2019
Fiscal year ended, June 30 2018
Contractually required contribution 20,167,435$
Contributions in Relation to the
Contractually required contribution 20,167,435
Contribution Deficiency/ (Excess) -$
Covered payroll 36,349,651$
Contributions as a percentage of
covered payroll 55.48%
Notes to Schedule
Valuation Date / Timing 6/30/2016 (for contributions made in FY2017-2018)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2017-18):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(22 years remaining as of 6/30/16), the remaining UAL as of June 30, 2013
(14 years as of 6/30/16), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 18 years remaining as of June 30, 2017
Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality Sex distinct CalPERS 2014 Pre-Retirement Non-Industrial Death rates (plus Duty-Related
death rates for Safety members)
Disabled Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages
set forward three years for all members
Schedule of Contributions
Defined Benefit Pension
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
(Continued)
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Cost-Sharing Multiple Employer
98
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2019
Fiscal year ended, June 30 2019
Contractually required contribution $20,352,203
Contributions in Relation to the
Contractually required contribution 20,352,203
Contribution Deficiency/ (Excess)$0
Covered payroll $33,106,430
Contributions as a percentage of
covered payroll 61.48%
Notes to Schedule
Valuation Date / Timing 6/30/2017 (for contributions made in FY2018-2019)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2018-19):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(21 years remaining as of 6/30/17), the remaining UAL as of June 30, 2013
(13 years as of 6/30/17), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 17 years remaining as of June 30, 2018
Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 7.00%
Retirement Age
Healthy Mortality Rates of mortality for active members are specified by CalPERS 2017
Pre-Retirement Non-Industrial Death Rates (plus Duty-Related Death
rates for Safety members), with the 20-year static projection used by
CalPERS replaced by generational improvements from a base year of
2014 using Scale MP-2017.
Disabled Mortality Rates of mortality among disabled members are given by CalPERS 2017
Disability Mortality rates (Non-Industrial rates for Miscellaneous members
and Industrial Disability rates for Safety members), adjusted by 90% for
Males (Miscellaneous and Safety) and 90% for Miscellaneous Females,
with the 20-year static projection used by CalPERS replaced by generational
improvements from a base year of 2014 using Scale MP-2017.
Schedule of Contributions
Defined Benefit Pension
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
(Continued)
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Cost-Sharing Multiple Employer
99
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2019
Measurement period 2015-16 2016-17 2017-18
Total OPEB liability
Service cost $766,000 $789,000 $822,000
Interest 3,447,000 3,540,000 3,435,000
Differences between expected and actual experience (4,107,000)
Assumption changes 4,831,000
Benefit payments, including refunds of employee contributions (2,896,000) (3,015,000) (3,028,000)
Net change in total OPEB liability 1,317,000 2,038,000 1,229,000
Total OPEB liability - beginning 48,226,000 49,543,000 51,581,000
Total OPEB liability - ending (a)$49,543,000 $51,581,000 $52,810,000
OPEB fiduciary net position
Contributions - employer $2,896,000 $3,475,000 $3,573,000
Net investment income 157,000 1,675,000 1,425,000
Benefit payments, including refunds of employee contributions (2,896,000) (3,015,000) (3,028,000)
Administrative expense (7,000) (8,000) (44,000)
Net change in plan fiduciary net position 150,000 2,127,000 1,926,000
Plan fiduciary net position - beginning 15,608,000 15,758,000 17,885,000
Plan fiduciary net position - ending (b)$15,758,000 $17,885,000 $19,811,000
Plan net OPEB liability - ending (a) - (b)$33,785,000 $33,696,000 $32,999,000
Plan fiduciary net position as a percentage
of the total OPEB liability 31.81%34.67%37.51%
Covered employee payroll $32,885,000 $36,350,000 $40,496,000
Plan net OPEB liability as a percentage of covered employee payroll 102.74%92.70%81.49%
Historical information is required only for the measurement periods for which GASB 75 is applicable.
Other Post-Employment Benefits (OPEB)
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
Last Ten Fiscal Years
Agent Multiple Employer Plan
100
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2019
SCHEDULE OF CONTRIBUTIONS
Agent Multiple Employer Plan
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
Fiscal year 2016-17
Actuarially determined contribution $3,450,000
Contributions in relation to
the actuarially determined contribution (3,475,000)
Contribution deficiency (excess)($25,000)
Covered employee payroll $32,885,000
Contributions as a percentage of
covered employee payroll 10.49%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 06/30/17.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2015
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 19 years remaining as of June 30, 2016
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 7.25%
Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2015 actuarial valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/14 MCERA assumptions
Medical Trend Non-Medicare - 6.5% for 2017, decreasing 0.5% per year to an ultima
rate of 4.50% for 2021 and Medicare - 6.7% for 2017, decreasing to a
ultimate rate of 4.5% for 2021 and later years
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived
PEMHCA minimum - 60%
Cap Increases None
Mortality projected fully generational with Scale MP-14, modified
Same as discount rate - expected City contributions projected to
101
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2019
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
Fiscal year 2017-18 2018-19
Actuarially determined contribution $3,530,000 $3,612,000
Contributions in relation to
the actuarially determined contribution (3,563,000) (3,725,000)
Contribution deficiency (excess)($33,000) ($113,000)
Covered employee payroll $36,350,000 $40,496,000
Contributions as a percentage of
covered employee payroll 9.71% 9.20%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/18 and
6/30/19.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2017
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 18 years remaining as of June 30, 2017
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.75% at June 30, 2017; 7.25% at June 30, 2016
Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2017 actuarial valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/17 MCERA assumptions
Medical Trend Non-Medicare - 7.5% for 2019, decreasing to 4.00% for
2076 and later years and Medicare - 6.5% for 2019, decreasing
to 4.00% for 2076 and later years
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived
PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Plan
Post-retirement mortality: projected fully generational with Scale
Pre-retirement mortality: projected 15-year static with 90% of
Scale MP-2016
Same as discount rate - expected City contributions projected to
keep sufficient plan assets to pay all benefits from trust
102
GENERAL FUND AND MAJOR SPECIAL REVENUE FUND
BUDGET-TO-ACTUAL STATEMENTS
GASB Statement No. 34 dictates that budget-to-actual information in the basic financial statements should
be limited to the General Fund and major Special Revenue Funds. This section is provided for the
presentation of Budget-to-Actual Statements for the General Fund, Traffic and Housing Mitigation, and the
Gas Tax Special Revenue Funds.
Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles for the General
Fund and Special Revenue Funds.
103
CITY OF SAN RAFAEL
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and special assessments $69,138,000 $69,258,000 $70,282,284 $1,024,284
Licenses and permits 2,937,000 2,937,001 2,661,500 (275,501)
Fines and forfeitures 375,000 375,000 337,680 (37,320)
Use of money and properties 246,200 246,200 250,570 4,370
Intergovernmental 3,229,000 3,229,000 3,290,086 61,086
Charges for services 2,465,552 2,465,552 2,671,395 205,843
Other revenue 505,000 505,000 841,538 336,538
Total Revenues 78,895,752 79,015,753 80,335,053 1,319,300
EXPENDITURES
Current:
General government 11,306,237 11,471,373 12,297,845 (826,472)
Public safety 43,650,861 43,614,581 43,107,841 506,740
Public works and parks 11,751,430 11,793,325 11,742,280 51,045
Community development 4,692,833 5,262,497 4,988,260 274,237
Culture and recreation 3,327,557 3,327,557 3,080,364 247,193
Capital outlay 90,690 90,690 90,690
Debt service:
Principal 495,172 493,280 495,172 (1,892)
Interest and fiscal charges 258,963 2,493,413 2,356,207 137,206
Total Expenditures 75,573,743 78,546,716 78,067,969 478,747
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,322,009 469,037 2,267,084 1,798,047
OTHER FINANCING SOURCES (USES)
Transfers in 1,686,911 4,321,361 4,321,361
Transfers out (5,875,000) (6,278,828) (6,278,828)
Total Other Financing Sources (Uses) (4,188,089) (1,957,467) (1,957,467)
Net Change in Fund Balances ($866,080) ($1,488,430) 309,617 $1,798,047
FUND BALANCES, BEGINNING OF YEAR 12,222,954
FUND BALANCES, END OF YEAR $12,532,571
104
CITY OF SAN RAFAEL
TRAFFIC AND HOUSING MITIGATION SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and properties $49,200 $49,200 $111,363 $62,163
Charges for services 300,000 300,000 2,356,530 2,056,530
Total Revenues 349,200 349,200 2,467,893 2,118,693
EXPENDITURES
Current:
General government 25,000 25,000 18,800 6,200
Public works and parks 212,424 242,036 59,945 182,091
Capital outlay 67,282 620,386 117,253 503,133
Total Expenditures 304,706 887,422 195,998 691,424
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 44,494 (538,222) 2,271,895 2,810,117
OTHER FINANCING SOURCES (USES)
Transfers Out (3,380,892) (3,380,892)
Total Other Financing Sources (Uses)44,494 (3,380,892) (3,380,892)
Net Change in Fund Balances $88,988 ($3,919,114) (1,108,997) $2,810,117
6,306,373
FUND BALANCES, END OF YEAR $5,197,376
FUND BALANCES, BEGINNING OF YEAR
105
CITY OF SAN RAFAEL
GAS TAX SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and properties $48,000 $48,000 $33,778 ($14,222)
Intergovernmental 3,293,999 7,743,999 10,567,243 2,823,244
Charges for services 1,043,600 1,043,600 1,206,142 162,542
Other revenue 374,639 374,639
Total Revenues 4,385,599 8,835,599 12,181,802 3,346,203
EXPENDITURES
Current:
General government
Public works and parks 5,431,189 3,759,551 2,337,369 1,422,182
Capital outlay 70,108 17,740,581 10,308,603 7,431,978
Total Expenditures 5,501,297 21,500,132 12,645,972 8,854,160
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,115,698) (12,664,533) (464,170) 12,200,363
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (400,000) (800,000) (800,000)
Total Other Financing Sources (Uses) (400,000) (800,000) (800,000)
Net Change in Fund Balances ($1,515,698) ($13,464,533) (1,264,170) $12,200,363
FUND BALANCES, BEGINNING OF YEAR 5,992,281
FUND BALANCES, END OF YEAR $4,728,111
106
SUPPLEMENTARY INFORMATION
107
CITY OF SAN RAFAEL
ESSENTIAL FACILITIES CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $871,481 $871,481
Other revenue $31,000,000 $31,000,000 3,251,151 (27,748,849)
Total Revenues 31,000,000 31,000,000 4,122,632 (26,877,368)
EXPENDITURES
Capital outlay 35,025,000 $35,823,871 23,908,035 11,915,836
Total Expenditures 35,025,000 35,823,871 23,908,035 11,915,836
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (4,025,000) (4,823,871) (19,785,403) (14,961,532)
OTHER FINANCING SOURCES (USES)
Transfers in 4,025,000 4,145,000 5,201,300 1,056,300
Transfers out (2,234,450) (2,234,450)
Total Other Financing Sources (Uses) 4,025,000 1,910,550 2,966,850 1,056,300
Net Change in Fund Balances $0 ($2,913,321) (16,818,553) ($13,905,232)
FUND BALANCES, BEGINNING OF YEAR 49,209,052
FUND BALANCES, END OF YEAR $32,390,499
108
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Recreation Revolving Fund – Established to administer the Community Services Department’s
program and facility rental charge and accounts for the Recreation Memorial Fund.
Baypoint Lagoons Assessment District Fund – The Baypoint Lagoons Lighting and Landscape
District was formed to protect and enhance wildlife habitat and water quality in Baypoint (Spinnaker)
Lagoon and the adjacent diked salt marsh.
Household Hazmat Facility Fund - Established to account for State mandated hazardous materials
information, collection, and reporting. Expenditures include inspection of businesses for compliance
with regulations. This fund also serves as the depository for countywide Household Hazardous Waste
Program.
Childcare Fund – Established to administer and account for childcare programs at eight sites
throughout the City.
Loch Lomond #10 Community Facilities District Fund – Established to provide maintenance for
stormwater and geotechnical mitigation facilities. A Mello Roos District was formed to fund this
maintenance.
Loch Lomond Marina #2 Community Facilities District Fund – Established to report tax
assessments and maintenance expenditures of the District.
Library Fund – Established to account for restricted library activities that are intended to be self-
funding.
Library Assessment Fund – Established to account for a special parcel tax dedicated to public
library services and facilities, equipment, and technology improvements.
Public Safety Fund – Established for special police services, which are intended to be self-funding.
Stormwater Fund – Established to provide for self-funding storm drain maintenance program plus
separate programs through the County and Bay Area to educate residents about urban runoff
pollution.
Development Services Fund – Established to account for development activities that are supported
by external sources of funds. This fund does not account for the operating costs of building,
planning, and engineering, which are located in the General Fund.
Grants Fund – Established to account for grants for the Library, Childcare, Police and Falkirk
Cultural Center.
Parkland Dedication Fund – Established to account for long-term developer deposits used to
enhance and maintain the park structure within City limits.
Emergency Medical Services Fund – Established to account for the Emergency Medical Services
and Transportation program that provides services to all segments of the community.
Business Improvement Fund – Established to account for activities held in Downtown San Rafael.
109
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Pt. San Pedro Maintenance Portion Special Revenue Fund – Established to account for ongoing
maintenance needs within the Pt. San Pedro assessment district.
Low and Moderate Income Housing Special Revenue Fund – Established to account for the
activities related to the assets assumed by the City as Housing Successor to the San Rafael
Redevelopment Agency for the housing activities of the former Redevelopment Agency.
Measure A Open Space Special Revenue Fund – Established to account for the use of proceeds
distributed by the County of Marin from Measure A, as well as other supplementary matching or
City-funding for the operation or maintenance of open space, park or recreation lands.
Measure G - Cannabis Special Revenue Fund – Established for the purpose of reporting tax revenue
and expenditures related to Cannabis activities authorized by Measure G.
DEBT SERVICE FUNDS
Peacock Gap Assessment District Fund – Established to accumulate funds for the payment of
principal and interest for the 1993 Bonds which matured in 2005. The proceeds were used to refund
the 1984 Bonds, which provided for the construction of public improvements in the project area.
Financing is to be provided by property tax increments generated within the specific geographic
region described by the bond assessment district.
Mariposa Assessment District Fund - Established to accumulate funds for the payment of principal
and interest for the 1993 Bond, which matured in 2008. The proceeds were used to finance the
grading and paving of Mariposa Road.
1997 Financing Authority Revenue Bonds Fund – Established to accumulate funds for the payment
of principal and interest for the 1997 Revenue Bonds which matured in 2011. The proceeds were
used to purchase the previously issued special assessment bonds. Financing is to be provided by
property tax increments generated within the specific geographic region described by the bond
assessment district.
CAPITAL PROJECTS FUNDS
Capital Improvement Fund – Established for the costs associated with major capital improvement
projects not tied to specific funds elsewhere. Improvements could include medians, parkways,
sidewalks, and other public assets.
Bedroom Tax Fund – Established to collect funds from multiple-unit housing used to pay for
maintaining and developing parks within local neighborhoods.
Assessment Districts Fund – Established to account for ongoing construction and improvement
needs within the following assessment districts: Peacock Gap, Kerner Boulevard, Sun Valley/Lucas
Valley Open Space, East San Rafael Drainage Assessment District 1.
Park Capital Projects Fund – Established to account for capital improvements for all City owned
parks, whether paid for by City funds, grants, donations, or partnership with the community.
Open Space Fund – Established for the acquisition of open space.
110
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2019
SPECIAL REVENUE FUNDS
Baypoint Loch Lomond
Lagoons Household #10
Recreation Assessment Hazmat Community
Revolving District Facility Childcare Facilities Dist.
ASSETS
Cash and investments $482,314 $252,288 $93,046 $1,753,287 $676,085
Restricted cash and investments
Receivables:
Accounts 43,471 717,656
Taxes 126
Grants 23,407
Interest
Loans
Prepaids
Total Assets $525,785 $252,414 $810,702 $1,776,694 $676,085
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $258,032 $287,458 $29,849 $1,877
Deposits payable
Developer deposits payable 156,826
Due to other funds
Deferred revenue 265,425
Total Liabilities 523,457 444,284 29,849 1,877
Fund Balances:
Nonspendable
Restricted 2,328 $252,414 366,418 1,746,845 674,208
Committed
Assigned
Total Fund Balances 2,328 252,414 366,418 1,746,845 674,208
Total Liabilities and Fund Balances $525,785 $252,414 $810,702 $1,776,694 $676,085
112
SPECIAL REVENUE FUNDS
Loch Lomond
Marina #2
Community Library Public Development
Facilities Dist. Library Assessment Safety Stormwater Services Grants
$282,320 $2,451,306 $586,458 $72,647 $448,831 $828,923 $771,556
17,000
398 5,235 6,395
50,958
$282,718 $2,451,306 $591,693 $89,647 $455,226 $828,923 $822,514
$1,771 $35,223 $52,682 $17,743 $17,708
175,620 8,782
4,185
1,771 35,223 52,682 197,548 26,490
$282,718 2,449,535 556,470 $89,647 402,544 631,375 796,024
282,718 2,449,535 556,470 89,647 402,544 631,375 796,024
$282,718 $2,451,306 $591,693 $89,647 $455,226 $828,923 $822,514
(Continued)
113
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2019
SPECIAL REVENUE FUNDS
Low and
Emergency Pt. San Pedro Moderate
Parkland Medical Business Maintenance Income
Dedication Services Improvement Portion Housing
ASSETS
Cash and investments $288,531 $522,718 $21,569 $126,760 $637,900
Restricted cash and investments
Receivables:
Accounts 276,275
Taxes 23,186 483
Grants
Interest 957
Loans 256,870
Prepaids 27,627
Total Assets $288,531 $849,806 $21,569 $127,243 $895,727
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $30,989 $36,460 $21,569 $6,570
Deposits payable
Developer deposits payable
Due to other funds
Deferred revenue
Total Liabilities 30,989 36,460 21,569 6,570
Fund Balances:
Nonspendable 27,627
Restricted 257,542 785,719 120,673 $895,727
Committed
Assigned
Total Fund Balances 257,542 813,346 120,673 895,727
Total Liabilities and Fund Balances $288,531 $849,806 $21,569 $127,243 $895,727
114
DEBT SERVICE FUNDS CAPITAL PROJECTS FUNDS
1997
Peacock Gap Mariposa Financing
Measure A Measure G - Assessment Assessment Authority Capital Bedroom
Open Space Cannabis District District Revenue Bonds Improvement Tax
$29,367 $2,875 $16,573 $151,695 $1,210,133 $84,325
625,686
$232,158 46,606
137,387
4,760
$232,158 $75,973 $2,875 $16,573 $151,695 $1,977,966 $84,325
$5,769 $87,519
226,389
232,158 87,519
$75,973 $2,875 $16,573 $151,695 $84,325
1,890,447
75,973 2,875 16,573 151,695 1,890,447 84,325
$232,158 $75,973 $2,875 $16,573 $151,695 $1,977,966 $84,325
(Continued)
SPECIAL REVENUE FUNDS
115
Total
Park Non-Major
Assessment Capital Open Governmental
Districts Projects Space Funds
ASSETS
Cash and investments $224,191 $10,824 $118,139 $12,144,661
Restricted cash and investments 79,149 704,835
Receivables:
Accounts 1,054,402
Taxes 314,587
Grants 211,752
Interest 5,717
Loans 256,870
Prepaids 27,627
Total Assets $303,340 $10,824 $118,139 $14,720,451
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $450 $891,669
Deposits payable 184,402
Developer deposits payable 161,011
Due to other funds 226,389
Deferred revenue 265,425
Total Liabilities 450 1,728,896
Fund Balances:
Nonspendable 27,627
Restricted 302,890 10,944,518
Committed $10,824 1,901,271
Assigned $118,139 118,139
Total Fund Balances 302,890 10,824 118,139 12,991,555
Total Liabilities and Fund Balances $303,340 $10,824 $118,139 $14,720,451
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2019
CAPITAL PROJECTS FUNDS
116
Baypoint Loch Lomond
Lagoons Household #10
Recreation Assessment Hazmat Community
Revolving District Facility Childcare Facilities Dist.
REVENUES
Taxes and special assessments $25,368
Use of money and properties $32,351 5,056 $607 $32,608 $12,547
Intergovernmental 27,200 390,329
Charges for services 2,271,345 167,285 3,181,669
Other revenue 48,257 13,577
Total Revenues 2,379,153 30,424 167,892 3,618,183 12,547
EXPENDITURES
Current:
General government
Public safety 143,827
Public works and parks 38,027 1,876
Culture and recreation 4,724,942 3,493,153
Community development
Capital outlay
Total Expenditures 4,724,942 38,027 143,827 3,493,153 1,876
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,345,789) (7,603) 24,065 125,030 10,671
OTHER FINANCING SOURCES (USES)
Transfers in 2,071,674 50,000
Transfers out
Total Other Financing Sources (Uses) 2,071,674 50,000
Net Change in Fund Balances (274,115) (7,603) 24,065 175,030 10,671
Fund Balance, Beginning 276,443 260,017 342,353 1,571,815 663,537
Fund Balance, Ending $2,328 $252,414 $366,418 $1,746,845 $674,208
SPECIAL REVENUE FUNDS
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2019
118
Loch Lomond
Marina #2
Community Library Public Development
Facilities Dist. Library Assessment Safety Stormwater Services Grants
$79,737 $1,041,371
5,000 $44,820 11,060 $88 $9,608 $49,999 $13,370
8,379 71,068 664,436
7,354 720 833,777
80,914 62,040 29,534
84,737 141,467 1,052,431 133,916 872,919 49,999 677,806
118 104,263
7,585 259,148 552,534
1,059,398
15,608 1,144,665
7,585 15,608 1,144,665 259,148 1,059,398 118 656,797
77,152 125,859 (92,234) (125,232) (186,479) 49,881 21,009
100,000 48,964
(100,000) (36,810)
100,000 (100,000) 12,154
77,152 125,859 (92,234) (25,232) (186,479) (50,119) 33,163
205,566 2,323,676 648,704 114,879 589,023 681,494 762,861
$282,718 $2,449,535 $556,470 $89,647 $402,544 $631,375 $796,024
(Continued)
SPECIAL REVENUE FUNDS
119
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2019
Low and
Emergency Pt. San Pedro - Moderate
Parkland Medical Business Maintenance Income
Dedication Services Improvement Portion Housing
REVENUES
Taxes and special assessments $4,934,584 $124,284
Use of money and properties $5,227 31,405 1,504 $22,271
Intergovernmental 140,706
Charges for services 2,470,659
Other revenue 5,135 398,202 48,995
Total Revenues 10,362 7,975,556 125,788 71,266
EXPENDITURES
Current:
General government 82,473
Public safety 7,375,342
Public works and parks 109,853
Culture and recreation 9,276
Community development
Capital outlay 654,091
Total Expenditures 663,367 7,375,342 109,853 82,473
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (653,005) 600,214 15,935 (11,207)
OTHER FINANCING SOURCES (USES)
Transfers in 308,106
Transfers out (1,056,300)
Total Other Financing Sources (Uses) 308,106 (1,056,300)
Net Change in Fund Balances (344,899) (456,086) 15,935 (11,207)
Fund Balance, Beginning 602,441 1,269,432 104,738 906,934
Fund Balance, Ending $257,542 $813,346 $120,673 $895,727
SPECIAL REVENUE FUNDS
120
1997
Peacock Gap Mariposa Financing
Measure A Measure G - Assessment Assessment Authority Capital Bedroom
Open Space Cannabis District District Revenue Bonds Improvement Tax
$482,356 $125,973 $5,228
367 $2,821 $28,541
442,817
482,723 125,973 2,821 471,358 5,228
50,000
232,599
261,436 7,438
3,710,022
494,035 50,000 3,710,022 7,438
(11,312) 75,973 2,821 (3,238,664) (2,210)
3,380,892
(392,754)
(392,754)3,380,892
(404,066) 75,973 2,821 142,228 (2,210)
404,066 $2,875 $16,573 148,874 1,748,219 86,535
$75,973 $2,875 $16,573 $151,695 $1,890,447 $84,325
(Continued)
SPECIAL REVENUE FUNDS CAPITAL PROJECTS FUNDSDEBT SERVICE FUNDS
121
Total
Park Non-Major
Assessment Capital Open Governmental
Districts Projects Space Funds
REVENUES
Taxes and special assessments $6,818,901
Use of money and properties $4,421 $2,197 315,868
Intergovernmental 1,744,935
Charges for services 8,932,809
Other revenue $4,060 690,714
Total Revenues 4,421 4,060 2,197 18,503,227
EXPENDITURES
Current:
General government 236,854
Public safety 8,571,035
Public works and parks 1,478,028
Culture and recreation 9,387,644
Community development
Capital outlay 3,043 4,367,156
Total Expenditures 3,043 24,040,717
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,378 4,060 2,197 (5,537,490)
OTHER FINANCING SOURCES (USES)
Transfers in 5,959,636
Transfers out (1,585,864)
Total Other Financing Sources (Uses)4,373,772
Net Change in Fund Balances 1,378 4,060 2,197 (1,163,718)
Fund Balance, Beginning 301,512 6,764 115,942 14,155,273
Fund Balance, Ending $302,890 $10,824 $118,139 $12,991,555
FOR THE YEAR ENDED JUNE 30, 2019
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
CAPITAL PROJECTS FUND
122
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2019
SPECIAL REVENUE FUNDS
Recreation Revolving Baypoint Lagoons Assessment District
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $25,500 $25,368 ($132)
Use of money and properties $28,409 $32,351 $3,942 1,300 5,056 3,756
Intergovernmental 15,000 27,200 12,200
Charges for services 3,084,700 2,271,345 (813,355)
Other revenue 2,750 48,257 45,507
Total Revenues 3,130,859 2,379,153 (751,706) 26,800 30,424 3,624
EXPENDITURES
Current:
General government
Public safety
Public works and parks 40,386 38,027 2,359
Culture and recreation 5,152,419 4,724,942 427,477
Community development
Capital outlay
Total Expenditures 5,152,419 4,724,942 427,477 40,386 38,027 2,359
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,021,560) (2,345,789) (324,229) (13,586) (7,603) 5,983
OTHER FINANCING SOURCES (USES)
Transfers in 2,071,674 2,071,674
Transfers out
Total Other Financing Sources (Uses) 2,071,674 2,071,674
FUND BALANCES, BEGINNING OF YEAR
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES $50,114 (274,115) ($324,229) ($13,586) (7,603) $5,983
FUND BALANCES, BEGINNING OF YEAR 276,443 260,017
FUND BALANCES, END OF YEAR $2,328 $252,414
124
Loch Lomond #10
Household Hazmat Facility Childcare
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$1,100 $607 ($493) $8,000 $32,608 $24,608 $3,500 $12,547 $9,047
336,908 390,329 53,421
156,515 167,285 10,770 3,765,000 3,181,669 (583,331)
13,577 13,577
157,615 167,892 10,277 4,109,908 3,618,183 (491,725) 3,500 12,547 9,047
175,271 143,827 31,444
25,054 1,876 23,178
4,080,509 3,493,153 587,356
175,271 143,827 31,444 4,080,509 3,493,153 587,356 25,054 1,876 23,178
(17,656) 24,065 41,721 29,399 125,030 95,631 (21,554) 10,671 32,225
50,000 50,000
50,000 50,000
($17,656) 24,065 $41,721 $79,399 175,030 $95,631 ($21,554) 10,671 $32,225
342,353 1,571,815 663,537
$366,418 $1,746,845 $674,208
(Continued)
Community Facilities District
SPECIAL REVENUE FUNDS
125
Library
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $204,500 $79,737 ($124,763)
Use of money and properties 400 5,000 4,600 $12,900 $44,820 $31,920
Intergovernmental 1,000 8,379 7,379
Charges for services 7,500 7,354 (146)
Other revenue 7,000 80,914 73,914
Total Revenues 204,900 84,737 (120,163) 28,400 141,467 113,067
EXPENDITURES
Current:
General government
Public safety
Public works and parks 25,000 7,585 17,415
Culture and recreation 55,000 15,608 39,392
Community development
Capital outlay
Total Expenditures 25,000 7,585 17,415 55,000 15,608 39,392
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 179,900 77,152 (102,748) (26,600) 125,859 152,459
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES $179,900 77,152 ($102,748) ($26,600) 125,859 $152,459
FUND BALANCES, BEGINNING OF YEAR 205,566 2,323,676
FUND BALANCES, END OF YEAR $282,718 $2,449,535
Community Facilities District
SPECIAL REVENUE FUNDS
Loch Lomond Marina #2
FOR THE YEAR ENDED JUNE 30, 2019
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
126
SPECIAL REVENUE FUNDS
Library Assessment Public Safety Stormwater
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$1,054,595 $1,041,371 ($13,224)
3,300 11,060 7,760 $210 $88 ($122) $1,200 $9,608 $8,408
90,000 71,068 (18,932)
7,500 720 (6,780) 782,800 833,777 50,977
75,000 62,040 (12,960) 5,000 29,534 24,534
1,057,895 1,052,431 (5,464) 172,710 133,916 (38,794) 789,000 872,919 83,919
276,155 259,148 17,007
1,287,941 1,059,398 228,543
1,243,207 1,144,665 98,542
64,130 64,130
1,243,207 1,144,665 98,542 276,155 259,148 17,007 1,352,071 1,059,398 292,673
(185,312) (92,234) 93,078 (103,445) (125,232) (21,787) (563,071) (186,479) 376,592
100,000 100,000
100,000 100,000
($185,312) (92,234) $93,078 ($3,445) (25,232) ($21,787) ($563,071) (186,479) $376,592
648,704 114,879 589,023
$556,470 $89,647 $402,544
(Continued)
127
Grants
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments
Use of money and properties $39,000 $49,999 $10,999 $2,600 $13,370 $10,770
Intergovernmental 929,750 664,436 (265,314)
Charges for services
Other revenue
Total Revenues 39,000 49,999 10,999 932,350 677,806 (254,544)
EXPENDITURES
Current:
General government 117,000 118 116,882 231,105 104,263 126,842
Public safety 996,417 552,534 443,883
Public works and parks
Culture and recreation
Community development
Capital outlay
Total Expenditures 117,000 118 116,882 1,227,522 656,797 570,725
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (78,000) 49,881 127,881 (295,172) 21,009 316,181
OTHER FINANCING SOURCES (USES)
Transfers in 48,964 48,964
Transfers out (100,000) (100,000)(36,810) (36,810)
Total Other Financing Sources (Uses) (100,000) (100,000)12,154 12,154
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES ($178,000) (50,119) $127,881 ($283,018) 33,163 $316,181
FUND BALANCES, BEGINNING OF YEAR 681,494 762,861
FUND BALANCES, END OF YEAR $631,375 $796,024
Development Services
FOR THE YEAR ENDED JUNE 30, 2019
SPECIAL REVENUE FUNDS
BUDGET AND ACTUAL
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
128
Parkland Dedication Emergency Medical Services Business Improvement
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$4,744,398 $4,934,584 $190,186
$3,000 $5,227 $2,227 12,500 31,405 18,905
130,000 140,706 10,706
2,550,000 2,470,659 (79,341)
5,135 5,135 265,738 398,202 132,464
3,000 10,362 7,362 7,702,636 7,975,556 272,920
7,578,000 7,375,342 202,658
200,000 200,000
37,301 9,276 28,025
711,781 654,091 57,690
949,082 663,367 285,715 7,578,000 7,375,342 202,658
(946,082) (653,005) 293,077 124,636 600,214 475,578
308,106 308,106
(1,056,300) (1,056,300)
308,106 308,106 (1,056,300) (1,056,300)
($637,976) (344,899) $293,077 $124,636 (456,086) ($580,722)
602,441 1,269,432
$257,542 $813,346
(Continued)
SPECIAL REVENUE FUNDS
129
Low and Moderate Income Housing
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $77,000 $124,284 $47,284
Use of money and properties 640 1,504 864 $2,200 $22,271 $20,071
Intergovernmental
Charges for services
Other revenue 70,000 48,995 (21,005)
Total Revenues 77,640 125,788 48,148 72,200 71,266 (934)
EXPENDITURES
Current:
General government 200,000 82,473 117,527
Public safety
Public works and parks 134,345 109,853 24,492
Culture and recreation
Community development
Capital outlay
Total Expenditures 134,345 109,853 24,492 200,000 82,473 117,527
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (56,705) 15,935 72,640 (127,800) (11,207) 116,593
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES ($56,705) 15,935 $72,640 ($127,800) (11,207) $116,593
FUND BALANCES, BEGINNING OF YEAR 104,738 906,934
FUND BALANCES, END OF YEAR $120,673 $895,727
Pt. San Pedro-Maintenance Portion
SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2019
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
130
DEBT SERVICE FUNDS
Measure A Open Space Measure G - Cannabis
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$476,662 $482,356 $5,694 $126,000 $125,973 ($27)
1,900 367 (1,533)
478,562 482,723 4,161 126,000 125,973 (27)
50,000 50,000
198,064 232,599 (34,535)
155,000 261,436 (106,436)
410,335 410,335
763,399 494,035 269,364 50,000 50,000
(284,837) (11,312) 273,525 76,000 75,973 (27)
(392,754) (392,754)
(392,754) (392,754)
($677,591) (404,066) $273,525 $76,000 75,973 ($27)
404,066 $16,573
$75,973 $16,573
(Continued)
Mariposa Assessment District
SPECIAL REVENUE FUNDS
131
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2019
1997 Financing Authority Revenue Bonds
Variance
Final Positive
Budget Actual (Negative)
REVENUES
Taxes and special assessments
Use of money and properties $780 $2,821 $2,041
Intergovernmental
Charges for services
Other revenue
Total Revenues 780 2,821 2,041
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation
Community development
Capital outlay
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 780 2,821 2,041
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES $780 2,821 $2,041
148,874
FUND BALANCES, END OF YEAR $151,695
DEBT SERVICE FUNDS
132
INTERNAL SERVICE FUNDS
Internal service funds account for department services and financing performed for other departments
within the same governmental jurisdiction. Funding comes from charges assessed to the departments
benefiting from the service.
Building Maintenance Fund - Established to account for construction projects and cyclical large
dollar maintenance tasks (roof, painting) completed on City owned buildings.
Vehicle Replacement Fund – Established to provide for the replacement of vehicles.
Equipment Replacement Fund – Established to provide for the replacement of computers and
equipment.
Employee Benefits Fund - This fund is utilized for the payment of retiree benefits, unemployment
insurance, accumulated leave requirements and other negotiated benefits not tied to a specific
department.
Liability Insurance Fund - Established to maintain sufficient reserves for outstanding claims. All
costs associated with liability premiums are paid from this fund.
Workers’ Compensation Fund - Established to maintain sufficient reserves for injury claims. All
costs associated with workers compensation, including safety training, wellness programs, claim
expenses and insurance premiums are paid from this fund.
Dental Insurance Fund - Set up to maintain sufficient reserves for dental claims. All costs associated
with dental claims and administrations are paid from this fund.
Employee Retirement Fund – Established to maintain sufficient reserves to fund debt service
payments on the 2010 Taxable Pension Obligation Bonds and other pension related obligations.
OPEB/Retiree Medical Fund – Established to account for activities related to the funding,
administration and procurement of retiree medical benefits.
Radio Replacement Fund - Established to meet radio system operating costs, capital acquisition and
replacement, and operating lease obligations for the Public Works, Fire, Community Development and
Police Departments. The Marin Emergency Radio Authority (MERA) is a countywide JPA that has
taken the roll in procurement and installation of a new digital radio system. This fund supports San
Rafael's portion of the MERA efforts and related contractual obligations.
Telephone Replacement Fund – Established to provide ongoing support services for telephone
equipment and usage throughout the organization.
Sewer Maintenance Fund – Established to record both the cost of providing services to the San
Rafael Sanitation District and the charges for those services.
133
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2019
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
ASSETS
Current Assets:
Cash and investments $97,070 $1,162,146 $2,874,104 $599,034 $3,623,799
Accounts receivable
Grants receivable 69,156
Prepaids 633,973
Capital assets:
Nondepreciable assets 3,126,385
Depreciable assets, net 3,733,205 6,101,220 426,553
Total Assets 7,025,816 7,897,339 3,300,657 599,034 3,623,799
LIABILITIES
Current Liabilities:
Accounts payable 150,698 131,878 266,018 9,734 7,377
Claims payable - due in one year 1,100,676
Non-current Liabilities:
Claims payable - due in more than one year 2,515,389
Total Liabilities 150,698 131,878 266,018 9,734 3,623,442
NET POSITION:
Net investment in capital assets 6,859,590 6,101,220 426,553
Unrestricted 15,528 1,664,241 2,608,086 589,300 357
Total Net Position $6,875,118 $7,765,461 $3,034,639 $589,300 $357
134
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total
$6,762,682 $100,548 $1,638,768 $457,028 $98,659 $224,110 $263,261 $17,901,209
72,720 72,720
69,156
633,973
3,126,385
10,260,978
6,762,682 100,548 1,638,768 529,748 98,659 224,110 263,261 32,064,421
16,842 3,634 21,951 30,763 263,261 902,156
1,252,599 2,353,275
4,852,884 7,368,273
6,122,325 3,634 21,951 30,763 263,261 10,623,704
13,387,363
640,357 96,914 1,638,768 507,797 98,659 193,347 8,053,354
$640,357 $96,914 $1,638,768 $507,797 $98,659 $193,347 $21,440,717
135
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
OPERATING REVENUES
Charges for current services $1,500,000 $1,100,000 $3,146,433 $891,777 $1,564,879
Intergovernmental 200,000
Other operating revenues 8,035 179
Total Operating Revenues 1,708,035 1,100,000 3,146,433 891,777 1,565,058
OPERATING EXPENSES
Personnel 737,055 798,239 219,930
Insurance premiums and claims 1,426,988
Maintenance and repairs 1,120,435 38,069
General and administrative 9,617 2,349,637 144,580 150
Depreciation expense 133,500 1,064,637 104,555
Total Operating Expenses 1,263,552 1,102,706 3,191,247 942,819 1,647,068
Operating Income (Loss) 444,483 (2,706) (44,814) (51,042) (82,010)
NONOPERATING REVENUES (EXPENSES)
Investment income 20,770 37,471 38,973 66,286
Miscellaneous Income 11,259
Loss on sale of capital assets (4,119)
Total Nonoperating
Revenues (Expenses) 27,910 37,471 38,973 66,286
Net income (loss) before transfers 444,483 25,204 (7,343) (12,069) (15,724)
TRANSFERS IN 170,798
TRANSFERS OUT (86,150)
Change in Net Position 529,131 25,204 (7,343) (12,069) (15,724)
NET POSITION, BEGINNING OF YEAR 6,345,987 7,740,257 3,041,982 601,369 16,081
NET POSITION, END OF YEAR $6,875,118 $7,765,461 $3,034,639 $589,300 $357
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2019
136
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total
$2,194,521 $372,442 $350,000 $3,099,837 $648,660 $561,276 $2,575,521 $18,005,346
200,000
38,132 3,041 852,810 33 902,230
2,232,653 375,483 350,000 3,952,647 648,660 561,309 2,575,521 19,107,576
98,610 142,081 2,474,391 4,470,306
1,573,307 425,320 3,934,803 7,360,418
1,158,504
66,118 3,727 680,205 423,591 101,130 3,778,755
1,302,692
1,738,035 425,320 3,727 3,934,803 680,205 565,672 2,575,521 18,070,675
494,618 (49,837) 346,273 17,844 (31,545) (4,363) 1,036,901
126,725 3,871 26,129 4,337 324,562
11,259
(4,119)
126,725 3,871 26,129 4,337 331,702
621,343 (45,966) 372,402 17,844 (31,545) (26) 1,368,603
170,798
(678,213) (764,363)
621,343 (45,966) (305,811) 17,844 (31,545) (26) 775,038
19,014 142,880 1,944,579 489,953 130,204 193,373 20,665,679
$640,357 $96,914 $1,638,768 $507,797 $98,659 $193,347 $21,440,717
137
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2019
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $1,630,844 $1,118,969 $3,146,433 $891,777 $1,564,879
Cash payments to suppliers for goods and services (1,247,520) (672,042) (2,486,841) (183,660) (1,368,853)
Cash payments to employees for salaries and benefits (737,055) (798,239) (219,930)
Other operating revenues 8,035 179
Cash Flows from Operating Activities 391,359 446,927 (77,463) (90,122) (23,725)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts 170,798
Interfund payments (86,150)
Cash Flows from Noncapital
Financing Activities 84,648
'CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (661,334) (169,346)
Proceeds from sale of property 11,259
Cash Flows from Investing Activities (661,334) (158,087)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 20,770 37,471 38,973 66,286
Cash Flows from Investing Activities 20,770 37,471 38,973 66,286
Net increase (decrease) in cash and cash equivalents (185,327) 309,610 (39,992) (51,149) 42,561
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 282,397 852,536 2,914,096 650,183 3,581,238
CASH AND CASH EQUIVALENTS, END OF YEAR $97,070 $1,162,146 $2,874,104 $599,034 $3,623,799
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss) $444,483 ($2,706) ($44,814) ($51,042) ($82,010)
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation 133,500 1,064,637 104,555
Net change in assets and liabilities:
Accounts receivable (69,156)
Prepaid (633,973)
Loans receivable 18,969
Accounts payable (117,468) (137,204) (39,080) 127
Claims payable 58,158
Net Cash Provided by (Used in) Operating Activities $391,359 $446,927 ($77,463) ($90,122) ($23,725)
138
OPEB/
Workers' Dental Employee Employee Radio Telephone Sewer
Compensation Insurance Retirement Retirement Replacement Replacement Maintenance Total
$2,194,521 $372,442 $350,000 $3,027,117 $648,660 $561,276 $2,575,521 $18,082,439
(1,503,153) (425,370) (3,727) (3,913,779) (680,205) (414,308) (2,537,831) (15,437,289)
(98,610) (142,081) (1,995,915)
38,132 3,041 852,810 33 902,230
630,890 (49,887) 346,273 (33,852) (31,545) 4,920 37,690 1,551,465
170,798
(678,213) (764,363)
(678,213) (593,565)
(830,680)
11,259
(819,421)
126,725 3,871 26,129 4,337 324,562
126,725 3,871 26,129 4,337 324,562
757,615 (46,016) (305,811) (33,852) (31,545) 9,257 37,690 463,041
6,005,067 146,564 1,944,579 490,880 130,204 214,853 225,571 17,438,168
$6,762,682 $100,548 $1,638,768 $457,028 $98,659 $224,110 $263,261 $17,901,209
$494,618 ($49,837) $346,273 $17,844 ($31,545) ($4,363) $1,036,901
1,302,692
(72,720) (141,876)
(633,973)
18,969
16,557 (50) 21,024 9,283 $37,690 (209,121)
119,715 177,873
$630,890 ($49,887) $346,273 ($33,852) ($31,545) $4,920 $37,690 $1,551,465
139
AGENCY FUND
Agency Funds account for assets held by the City as agent for individuals, governmental entities, and non-public
organizations.
Pt. San Pedro Road Assessment District Fund - Established to accumulate funds for payment of principal and
interest for Pt. San Pedro Road Median Landscaping Assessment District bonds.
141
CITY OF SAN RAFAEL
AGENCY FUNDS
COMBINING STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED JUNE 30, 2019
Balance Balance
June 30, 2018 Additions Deductions June 30, 2019
Pt. San Pedro Road Assessment District
Assets
Restricted cash and investments $286,396 $26,457 $29,899 $282,954
Taxes receivable 983 725 983 725
Total Assets $287,379 $27,182 $30,882 $283,679
Liabilities
Interest payable $25,474 $24,276 $25,474 $24,276
Due to bondholders 261,905 2,906 5,408 259,403
Total Liabilities $287,379 $27,182 $30,882 $283,679
Balance Balance
June 30, 2018 Additions Deductions June 30, 2019
Total Agency Fund
Assets
Restricted cash and investments $286,396 $26,457 $29,899 $282,954
Taxes receivable 983 725 983 725
Total Assets $287,379 $27,182 $30,882 $283,679
Liabilities
Interest payable $25,474 $24,276 $25,474 $24,276
Due to bondholders 261,905 2,906 5,408 259,403
Total Liabilities $287,379 $27,182 $30,882 $283,679
142
Boyd Park
STATISTICAL SECTION
STATISTICAL SECTION
This part of the City’s Comprehensive Annual Financial Report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary information
says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not
subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well-
being have changed over time:
1.Net Position by Component
2.Changes in Net Position
3.Fund Balances of Governmental Funds
4.Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the
property tax:
1.Assessed and Estimated Actual Value of Taxable Property
2.Property Tax Rates, All Overlapping Governments
3.Principal Property Taxpayers
4.Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding
debt and the City’s ability to issue additional debt in the future:
1.Ratio of Outstanding Debt by Type
2.Computation of Direct and Overlapping Debt
3.Computation of Legal Bonded Debt Margin
4.Revenue Bond Coverage Parking Facility
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which
the City’s financial activities take place:
1.Demographic and Economic Statistics
2.Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s
financial report relates to the services the City provides and the activities it performs:
1.Full-Time Equivalent City Government Employees by Function
2.Operating Indicators by Function/Program
3.Capital Asset Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports
for the relevant year.
145
2010 2011 2012 2013
Governmental activities
Net investment in capital assets $173,536,144 $174,281,922 $192,361,245 $193,222,791
Restricted 26,150,254 21,322,937 24,693,205 35,780,412
Unrestricted (4,631,276) (8,170,324) 10,652,263 11,151,318
Total governmental activities net position $195,055,122 $187,434,535 $227,706,713 $240,154,521
Business-type activities
Net investment in capital assets $10,950,825 $10,793,592 $10,650,558 $10,670,190
Unrestricted 2,017,354 1,948,447 2,495,889 2,501,498
Total business-type activities net position $12,968,179 $12,742,039 $13,146,447 $13,171,688
Primary government
Net investments in capital assets $184,486,969 $185,075,514 $203,011,803 $203,892,981
Restricted 26,150,254 21,322,937 24,693,205 35,780,412
Unrestricted (2,613,922) (6,221,877) 13,148,152 13,652,816
Total primary government net position $208,023,301 $200,176,574 $240,853,160 $253,326,209
(a) The City adjusted certain beginning balances during fiscal years 2013-2014, 2014-2015 and 2016-2017. Financial data
shown for proceeding years were not adjusted for the presentation.
CITY OF SAN RAFAEL
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
($130,000)
($80,000)
($30,000)
$20,000
$70,000
$120,000
$170,000
$220,000
$270,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Thousands
Net of Related Debt Restricted Unrestricted
146
□ • •
2014 2015 2016 2017 2018 2019
$190,286,275 $190,621,085 $193,707,175 $199,202,842 $217,170,376 $231,844,210
37,339,141 33,389,224 31,286,725 29,225,643 25,549,583 23,288,874
(196,824) (82,336,534) (93,273,480) (112,913,181) (122,577,233) (118,215,177)
$227,428,592 $141,673,775 $131,720,420 $115,515,304 $120,142,726 $136,917,907
$10,786,591 $10,744,952 $10,958,058 $10,968,642 $10,951,518 $11,023,426
2,049,957 (938,519) (1,136,050) (871,620) (886,848) (1,180,121)
$12,836,548 $9,806,433 $9,822,008 $10,097,022 $10,064,670 $9,843,305
$201,072,866 $201,366,037 $204,665,233 $210,171,484 $228,121,894 $242,867,636
37,339,141 33,389,224 31,286,725 29,225,643 25,549,583 23,288,874
1,853,133 (83,275,053) (94,409,530) (113,784,801) (123,464,081) (119,395,298)
$240,265,140 $151,480,208 $141,542,428 $125,612,326 $130,207,396 $146,761,212
147
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2010 2011 2012 2013
Expenses
Governmental Activities:
General government $8,396,759 $8,269,846 $10,171,332 $10,202,530
Public safety 42,752,033 44,735,486 39,876,910 41,966,065
Public works and parks 17,401,923 17,408,038 17,423,033 17,695,164
Community development 6,738,873 7,804,650 4,587,557 3,403,158
Culture and recreation 11,139,225 11,487,999 11,020,663 11,330,058
Interest on long-term debt and fiscal charges 2,200,024 1,621,605 1,224,991 283,805
Total Governmental Activities Expenses 88,628,837 91,327,624 84,304,486 84,880,780
Business-Type Activities:
Parking services 4,016,198 3,785,751 3,446,482 3,545,387
Total Business-Type Activities Expenses 4,016,198 3,785,751 3,446,482 3,545,387
Total Primary Government Expenses $92,645,035 $95,113,375 $87,750,968 $88,426,167
Component Unit:
San Rafael Sanitation District $9,087,354 $9,677,630 $10,185,779 $10,169,082
Program Revenues
Governmental Activities:
Charges for services:
General government $1,665,460 $1,636,542 $1,986,791 $2,655,749
Public safety 6,308,912 6,167,925 7,122,396 6,478,321
Public works and parks 3,916,874 4,141,103 5,214,267 7,837,472
Community development 2,830,179 2,676,663 3,255,367 3,984,204
Culture and recreation 5,280,458 5,362,497 5,873,147 6,075,129
Operating grants and contributions 3,721,055 3,651,902 3,158,281 4,085,073
Capital grants and contributions 2,116,906 1,857,670 2,705,696 5,876,993
Total Government Activities Program Revenues 25,839,844 25,494,302 29,315,945 36,992,941
Business-Type Activities:
Charges for services:
Parking services 4,244,404 4,011,333 3,901,175 3,990,706
Total Business-Type Activities Program Revenues 4,244,404 4,011,333 3,901,175 3,990,706
Total Primary Government Program Revenues $30,084,248 $29,505,635 $33,217,120 $40,983,647
Component Unit:
San Rafael Sanitation District
Charges for service $11,559,549 $12,223,779 $12,368,889 $12,413,123
Operating grants and contributions
Capital grants and contributions
Total Component Unit Program Revenues $11,559,549 $12,223,779 $12,368,889 $12,413,123
Net (Expense)/Revenue
Governmental Activities ($62,788,993) ($65,833,322) ($54,988,541) ($47,887,839)
Business-Type Activities 228,206 225,582 454,693 445,319
Total Primary Government Net Expense ($62,560,787) ($65,607,740) ($54,533,848) ($47,442,520)
Component Unit Activities $2,472,195 $2,546,149 $2,183,110 $2,244,041
148
2014 2015 2016 2017 2018 2019
$9,085,672 $9,099,858 $12,952,983 $10,996,269 $9,835,941 $11,967,641
43,800,158 39,968,631 55,399,798 44,366,734 53,231,197 49,899,296
22,125,336 16,893,164 22,929,289 19,845,719 22,084,433 19,270,613
3,451,244 3,128,373 4,307,269 4,242,743 4,040,195 5,781,826
11,846,818 11,198,151 15,026,680 14,131,000 13,285,563 12,819,429
327,350 284,288 277,263 271,263 884,336 1,848,263
90,636,578 80,572,465 110,893,282 93,853,728 103,361,665 101,587,068
4,125,476 4,249,597 4,762,851 4,188,152 4,627,716 5,038,553
4,125,476 4,249,597 4,762,851 4,188,152 4,627,716 5,038,553
$94,762,054 $84,822,062 $115,656,133 $98,041,880 $107,989,381 $106,625,621
$11,378,055 $11,375,239 $11,654,767 $11,255,194 $12,235,868 $12,601,257
$2,838,940 $1,379,523 $526,495 $421,393 $517,542 $377,606
6,014,034 4,966,251 4,939,658 4,264,939 5,628,478 5,304,832
6,101,460 3,078,267 5,157,289 1,804,698 2,362,375 4,158,338
3,279,251 3,796,684 4,004,178 3,850,107 3,814,892 4,312,259
6,417,003 6,537,646 6,683,059 6,941,013 6,819,303 5,750,846
4,698,142 4,185,450 4,678,338 3,965,351 5,142,670 4,584,855
762,719 1,308,027 1,470,953 1,702,993 974,603 8,042,524
30,111,549 25,251,848 27,459,970 22,950,494 25,259,863 32,531,260
4,485,394 5,173,557 5,212,181 5,268,991 5,203,585 5,362,016
4,485,394 5,173,557 5,212,181 5,268,991 5,203,585 5,362,016
$34,596,943 $30,425,405 $32,672,151 $28,219,485 $30,463,448 $37,893,276
$13,732,496 $14,629,758 $15,414,530 $16,014,016 $16,829,908 $16,964,083
36,945 58,440 5,907
79,245 105,734 1,433,871
$13,732,496 $14,629,758 $15,414,530 $16,130,206 $16,994,082 $18,403,861
($60,525,029) ($55,320,617) ($83,433,312) ($70,903,234) ($78,101,802) ($69,055,808)
359,918 923,960 449,330 1,080,839 575,869 323,463
($60,165,111) ($54,396,657) ($82,983,982) ($69,822,395) ($77,525,933) ($68,732,345)
$2,354,441 $3,254,519 $3,862,215 $4,875,012 $4,758,214 $5,802,604
149
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2010 2011 2012 2013
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property $21,684,131 $21,632,733 $20,107,637 $17,317,772
Sales 19,055,124 21,623,445 22,355,749 24,262,282
Special assessments
Paramedic 3,489,494 3,661,064 3,807,545 3,804,985
Motor vehicles 171,518 297,425
Transient occupancy 1,558,243 1,644,262 1,866,575 2,185,287
Franchise 2,868,332 2,990,539 3,076,094 3,331,160
Business license 2,317,664 2,296,460 2,332,146 2,507,785
Other 1,411,583 1,930,531 3,574,918 2,929,915
Investment earnings 302,180 176,502 205,413 991,762
Gain (Loss) on disposal of assets 221,791
Miscellaneous 541,390 1,496,174 542,816 2,580,882
Special item - Court fines repayment
Transfers 458,300 463,600 57,960 423,817
Total Government Activities 54,079,750 58,212,735 57,926,853 60,335,647
Business-Type Activities:
Investment earnings 17,678 11,878 7,675 3,739
Aid from other government agencies
Transfers (458,300) (463,600) (57,960)(423,817)
Total Business-Type Activities (440,622) (451,722) (50,285)(420,078)
Total Primary Government $53,639,128 $57,761,013 $57,876,568 $59,915,569
Component Unit:
San Rafael Sanitation District
Property Taxes $823,187 $1,214,519 $1,192,566 $1,177,469
Investment earnings 93,274 59,265 38,191 25,591
Miscellaneous
Aid from other governmental agencies 415,391 6,499 9,613 56,589
Total Component Unit $1,331,852 $1,280,283 $1,240,370 $1,259,649
Special Item
Governmental Activities
Component Unit Activities
Change in Net Position
Governmental Activities ($8,709,243) ($7,620,587) $2,938,312 $12,447,808
Business-Type Activities (212,416) (226,140) 404,408 25,241
Total Primary Government ($8,921,659) ($7,846,727) $3,342,720 $12,473,049
Change in Net Position
Component Unit Activities $3,804,047 $3,826,432 $3,423,480 $3,503,690
150
2014 2015 2016 2017 2018 2019
$18,439,619 $19,039,443 $19,998,567 $23,343,140 $24,627,373 $25,903,240
27,758,971 32,269,915 34,348,089 31,819,259 34,119,502 35,626,646
3,816,070 3,820,240 4,226,020 5,485,637 4,923,148 4,934,584
2,332,277 2,661,878 3,063,263 2,984,758 3,115,151 3,203,499
3,260,958 3,272,390 3,418,277 3,610,824 3,726,841 3,627,254
2,588,728 2,670,071 2,824,664 2,774,803 2,790,212 2,788,496
3,452,171 3,295,751 3,465,193 1,824,830 2,245,882 1,783,170
184,171 216,066 300,091 210,628 556,745 1,450,434
1,140,743 2,254,901 1,387,315 2,448,604 5,991,713 5,904,968
449,917 432,630 448,478 536,000 632,657 608,698
63,423,625 69,933,285 73,479,957 75,038,483 82,729,224 85,830,989
4,375 7,008 14,723 10,810 24,436 63,870
(449,917)(432,630)(448,478)(536,000)(632,657)(608,698)
(445,542)(425,622)(433,755)(525,190)(608,221)(544,828)
$62,978,083 $69,507,663 $73,046,202 $74,513,293 $82,121,003 $85,286,161
$1,345,018 $1,319,852 $1,367,172 $1,528,047 $1,620,584 $1,727,221
151,729 171,804 46,225 97,090 234,379 519,793
10,690 7,768
22,125 35,090
$1,518,872 $1,526,746 $1,413,397 $1,625,137 $1,865,653 $2,254,782
$4,462,815
($4,462,815)
$2,898,596 $19,075,483 ($9,953,355) $4,135,249 $4,627,422 $16,775,181
(85,624)498,338 15,575 555,649 (32,352)(221,365)
$2,812,972 $19,573,821 ($9,937,780) $4,690,898 $4,595,070 $16,553,816
$3,873,313 $318,450 $5,275,612 $6,500,149 $6,623,867 $8,057,386
151
CITY SAN RAFAEL
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2010 2011 2012 2013
General Fund
Pre-GASB 54 Presentation:
Reserved $1,763,622
Unreserved 5,038,173
GASB 54 Presentation:
Nonspendable $589,833 $527,509 $527,235
Restricted 200,238 76,188
Committed 555,561 651,121 800,876
Assigned 5,439,879 1,516,644 2,476,676
Unassigned
Total General Fund $6,801,795 $6,785,511 $2,771,462 $3,804,787
All Other Governmental Funds
Pre-GASB 54 Presentation:
Reserved $15,352,723
Unreserved, reported in:
Special Revenue Funds 8,778,027
Capital Project Funds 4,527,627
Debt Service Funds
Expendable Trust Fund
GASB 54 Presentation:
Nonspendable $377,180 $788,031 $51,521
Restricted 19,289,367 16,856,959 20,769,546
Committed 3,864,322 5,135,257 8,447,495
Assigned 4,124,029 5,283,559 6,511,850
Total all other governmental funds $28,658,377 $27,654,898 $28,063,806 $35,780,412
(a) The change in total fund balance for the General Fund and other governmental funds
is explained in Management's Discussion and Analysis.
(b) The City adjusted certain beginning balances during fiscal years 2013-2014, 2014-2015 and 2015-2016.
Financial data shown for preceding years were not adjusted for the presentation.
($5,000)
$15,000
$35,000
$55,000
$75,000
$95,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Thousands
Total Fund Balance
152
□
2014 2015 2016 2017 2018 2019 (a)
$503,338 $399,299 $476,316 $508,446 $1,008,234 $37,271
6,866,149 12,374,002 16,440,910 14,900,945 11,214,720 11,560,392
1,588,500 1,772,577 1,295,041 934,908
$7,369,487 $14,361,801 $18,689,803 $16,704,432 $12,222,954 $12,532,571
$8,719 $2,359 $9,449 $302,366 $27,627
30,185,064 31,742,184 27,552,245 $25,812,405 $73,489,688 53,260,504
2,185,825 931,871 3,799,421 3,491,708 1,754,983 1,901,271
4,959,533 712,810 119,183 115,103 115,942 118,139
$37,339,141 $33,389,224 $31,480,298 $29,419,216 $75,662,979 $55,307,541
153
CITY OF SAN RAFAEL
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2010 2011 2012 2013
Revenues
Taxes and special assessments $47,678,541 $51,448,130 $51,395,116 $51,549,306
Licenses and permits 1,518,819 1,416,772 1,648,890 1,929,387
Fines and forfeitures 787,411 862,820 801,758 734,005
Use of money and properties 433,874 380,720 315,561 325,043
Intergovernmental 13,001,703 11,864,127 10,537,396 11,869,889
Charges for services 15,787,325 15,888,750 19,649,433 23,575,374
Other revenue 716,760 1,026,845 870,957 4,092,411
Total Revenues 79,924,433 82,888,164 85,219,111 94,075,415
Expenditures
Current:
General government 7,997,067 6,863,142 8,783,873 10,529,480
Public safety 39,574,091 40,967,352 39,311,551 41,377,062
Public works and parks 10,731,669 10,666,176 11,518,822 12,002,448
Community development 4,398,594 4,527,351 3,755,504 2,961,275
Culture and recreation 9,605,684 10,067,822 10,345,673 10,591,057
Capital outlay 1,890,559 1,745,483 1,312,383 4,009,454
Capital improvement/special projects 3,436,608 6,240,861 3,604,171 5,284,720
Debt service:
Principal 2,804,258 2,530,338 2,518,320
Interest and fiscal charges 1,979,372 1,448,910 735,221 283,805
Total Expenditures 82,417,902 85,057,435 81,885,518 87,039,301
Excess (deficiency) of revenues over
(under) expenditures (2,493,469)(2,169,271)3,333,593 7,036,114
Other Financing Sources (Uses)
Issuance of debt 14,660,000
Payment to refunded bonds (14,315,000)
Bond premiums 1,038,185
Proceeds from PG&E loans
Proceeds from sale of capital asset 221,791
Transfers in 7,494,560 5,806,834 4,539,646 8,425,474
Transfers (out)(6,411,150)(4,657,326)(4,864,293)(6,711,657)
Total other financing sources (uses)2,688,386 1,149,508 (324,647)1,713,817
Extraordinary Item
Transfer to Successor Agency (2,352,584)
Net Change in fund balances $194,917 ($1,019,763)$3,008,946 $6,397,347
Debt service as a percentage of
noncapital expenditures 6.2%5.2%4.2%0.4%
Fiscal Year Ended June 30,
154
2014 2015 2016 2017 2018 2019
$56,686,142 $61,804,228 $65,866,218 $71,166,891 $74,893,789 $77,101,185
1,934,755 2,456,820 2,588,411 2,559,841 2,718,166 2,661,500
669,553 556,076 435,829 400,283 384,268 337,680
363,089 444,757 460,206 349,349 654,531 1,583,060
11,953,308 13,233,503 13,685,003 8,063,156 8,878,974 15,602,264
19,949,333 15,346,794 14,366,744 13,425,161 14,660,094 15,166,876
2,045,407 1,777,003 3,208,749 1,842,053 5,219,414 5,158,042
93,601,587 95,619,181 100,611,160 97,806,734 107,409,236 117,610,607
8,678,833 10,203,687 11,349,079 10,557,416 10,010,100 12,553,499
41,900,762 43,954,515 47,071,166 49,018,153 51,805,708 51,678,876
13,697,957 12,758,643 14,390,699 16,752,961 17,647,312 15,617,622
3,296,375 3,416,859 3,670,108 3,759,564 4,051,224 4,988,260
11,106,367 11,616,777 12,048,104 12,646,728 12,823,771 12,468,008
2,154,900 4,498,924 4,813,757 2,100,926 22,815,967 38,701,047
7,168,776 2,186,986 4,826,576 7,403,249
208,642 75,172 75,172 175,172 280,172 495,172
327,350 284,288 277,263 271,263 1,005,636 2,356,207
88,539,962 88,995,851 98,521,924 102,685,432 120,439,890 138,858,691
5,061,625 6,623,330 2,089,236 (4,878,698)(13,030,654)(21,248,084)
46,565,800
568,481
3,655,302 4,348,149 7,533,364 9,287,007 68,351,964 15,482,297
(3,053,865)(3,051,499)(6,582,555)(8,454,762)(68,373,222)(14,280,034)
1,169,918 1,296,650 950,809 832,245 46,544,542 1,202,263
$6,231,543 $7,919,980 $3,040,045 ($4,046,453)$33,513,888 ($20,045,821)
0.7%0.4%0.4%0.5%1.3%2.8%
155
CITY OF SAN RAFAEL
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct
Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b)
2010 7,335,863,721$ 2,052,276,292$ 244,857,019$ 130,177,994$ 9,763,175,026$ 401,201,906$ 10,164,376,932$ 10,164,376,932$ 0.19215%
2011 7,215,965,203 2,056,985,417 247,409,955 124,426,487 9,644,787,062 383,414,952 10,028,202,014 10,028,202,014 0.17851%
2012 7,317,280,602 2,036,262,351 247,485,238 118,579,648 9,719,607,839 384,950,872 10,104,558,711 10,104,558,711 0.17827%
2013 7,265,617,525 1,987,170,644 245,917,096 115,453,836 9,614,159,101 384,534,108 9,998,693,209 9,998,693,209 0.17456%
2014 7,558,708,224 2,009,718,415 245,674,195 130,594,237 9,944,695,071 402,261,887 10,346,956,958 10,346,956,958 0.11985%
2015 7,991,224,952 2,120,065,908 249,864,918 115,675,852 10,476,831,630 417,217,272 10,894,048,902 10,894,048,902 0.11657%
2016 8,511,358,216 2,221,843,976 263,830,302 108,982,883 11,106,015,377 400,942,059 11,506,957,436 11,506,957,436 0.11672%
2017 9,025,896,811 2,390,814,514 267,468,956 135,689,202 11,819,869,483 423,545,667 12,243,415,150 12,243,415,150 0.11693%
2018 9,522,645,933 2,532,439,852 276,751,912 128,305,868 12,460,143,565 417,902,554 12,878,046,119 12,878,046,119 0.11709%
2019 10,042,494,232 2,681,917,170 285,601,803 107,472,477 13,117,485,682 409,129,431 13,526,615,113 13,526,615,113 0.11742%
(a)
(b)
Data Source: Marin County Assessor 2009/10 - 2018/19 Combined Tax Rolls
The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides.
These values are considered to be full market values.
California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within
a tax rate area.
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Millions
Unsecured Property Secured Property
156
1 --
Fiscal School Misc. Special
Year City County (1)Districts Districts Total
2010 0.154 0.295 0.7402 0.0461 1.2349
2011 0.154 0.295 0.7542 0.0461 1.2489
2012 0.154 0.295 0.7831 0.0461 1.2779
2013 0.154 0.295 0.7743 0.0461 1.2691
2014 0.154 0.295 0.7890 0.0461 1.2838
2015 0.154 0.295 0.7651 0.0461 1.2599
2016 0.154 0.295 0.7846 0.0695 1.3028
2017 0.154 0.295 0.8251 0.0553 1.3291
2018 0.154 0.295 0.8127 0.0661 1.3275
2019 0.154 0.295 0.8495 0.0650 1.3635
Notes:
(1) Like other cities, San Rafael includes several property tax rate areas with different rates. A mean average is indicated.
Data Source: Marin County Assessors Office 2008/09 - 2017/18 Tax Rate Tables
CITY OF SAN RAFAEL
PROPERTY TAX RATES
ALL OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
157
CITY OF SAN RAFAEL
PRINCIPAL PROPERTY TAX PAYERS
CURRENT FY 2018/19 AND FY 2009/2010
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
California Corporate Center ACQ LLC 273,522,259$ 2.02%
MGP XI Northgate LLC 214,970,194 1.59%
Professional Financial Investors Inc 112,170,328 0.83%
BRE Properties Inc 63,635,520 0.47%
South Valley Apartments LLC 54,071,293 0.40%
Regency Center II Associates LP 47,653,153 0.35% 41,716,937$ 0.41%
Northbay Properties II 46,914,742 0.35%
Bay Apartment Communities Inc 44,412,310 0.33% 35,182,329 0.35%
Barbara Fasken 1995 Trust ETAL 44,190,490 0.33%
Coastal City Partners LLC 42,603,280 0.31%
Northgate Mall Associates 112,797,140 1.11%
SR Corporation Center Phase 1 72,881,400 0.72%
SR Corporation Center Phase 2 40,204,768 0.40%
Corac LLC 82,587,760 0.81%
Sutter Health 44,602,859 0.44%
Marin Sanitary Service 39,236,037 0.39%
4040 Civic Center LLC 36,503,908 0.36%
Robert Dickson Trust 44,076,750 0.43%
Subtotal 944,143,569$ 6.98% 549,789,888$ 5.41%
Total Net Assessed Valuation:
Fiscal Year 2018-2019 13,526,615,113$
Fiscal Year 2009-2010 10,164,376,932$
FY 2018-2019 FY 2009-2010
158
Delinquent taxes
Fiscal as a Percent of
Year Rate Levies Allocations Collections Apportionments Delinquencies Allocations
2010 1.00 (2)21,702,536$ (2)21,702,536$ (2)0.0%
2011 1.00 (2)21,632,731 (2)21,632,731 (2)0.0%
2012 1.00 (2)20,704,368 (2)20,704,368 (2)0.0%
2013 1.00 (2)20,883,041 (2)20,883,041 (2)0.0%
2014 1.00 (2)22,001,357 (2)22,001,357 (2)0.0%
2015 1.00 (2)22,376,457 (2)22,376,457 (2)0.0%
2016 1.00 (2)23,636,093 (2)23,636,093 (2)0.0%
2017 1.00 (2)25,173,651 (2)25,173,651 (2)0.0%
2018 1.00 (2)26,088,961 (2)26,088,961 (2)0.0%
2019 1.00 (2)27,718,712 (2)27,718,712 (2)0.0%
Notes:
(1) Includes deductions for County property tax administration.
(2) Information not applicable. All general purpose property taxes are levied by the county and allocated
to other governmental entities.
CITY OF SAN RAFAEL
PROPERTY TAX LEVIES AND COLLECTIONS (1)
LAST TEN FISCAL YEARS
$6
$9
$12
$16
$19
$22
$25
$28
$31
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019MillionsAllocations
Apportionments
159
-------,,
~
---,, ---.,., --
-+--
~ -
CITY OF SAN RAFAEL
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
RDA Tax Financing Court Fine Capitalized Pension Lease
Fiscal Allocation Authority Note Promissory Lease Obligation Revenue
Year Bonds Revenue Bonds Payable Note Obligations Bonds Bonds Total
2010 35,355,988$ -$ 169,000$ 363,328$ 135,330$ 36,023,646$
2011 33,298,499 - 169,000 124,222 69,098 4,490,000$ 38,150,819
2012 - - 169,000 - - 4,490,000 4,659,000
2013 - - 169,000 - - 4,490,000 4,659,000
2014 - - 528,839 - - 4,490,000 5,018,839
2015 - - 453,667 - - 4,490,000 4,943,667
2016 - - 378,495 - - 4,490,000 4,868,495
2017 - - 303,323 - - 4,390,000 4,693,323
2018 - - 1,308,951 - - 4,185,000 45,485,000$ 50,978,951
2019 1,233,779 3,765,000 45,485,000 50,483,779
Parking Total Percentage
Fiscal Services Note Primary of Personal Per
Year Bonds Payable Total Government Income (a)Capita (a)
2010 6,805,000$ 6,805,000$ 42,828,646$ 1.85% 728.11
2011 6,630,000 6,630,000 44,780,819 1.87% 770.28
2012 6,445,000 6,445,000 11,104,000 0.46% 190.45
2013 6,445,000 6,445,000 11,104,000 0.44% 190.85
2014 6,186,403 61,836$6,248,239 11,267,078 0.43%192.38
2015 5,942,128 55,020 5,997,148 10,940,815 0.41%184.77
2016 5,692,853 48,204 5,741,057 10,609,552 0.38%175.13
2017 5,433,577 41,388 5,474,965 10,168,288 0.35%167.13
2018 5,164,303 34,572 5,198,875 56,177,826 n/a 926.25
2019 4,890,027 27,755 4,917,782 55,401,561
Notes : Debt amounts exclude any premiums, discounts, or other amortization amounts.
In August 2012, the series 2003 parking services bonds were refunded with series 2012 refunding bonds.
Data Sources:City of San Rafael
State of California, Department of Finance (population)
U.S. Department of commerce, Bureau of the Census (income)
(a) See Schedule of Demographic and Economic Statistics for personal income and population data.
Governmental Activities
Business-Type Activities
$-
$10
$20
$30
$40
$50
$60
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019MillionsTotal Governmental
Total Business
160
Cl
•
CITY OF SAN RAFAEL
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 2019
2018-19 Assessed Valuation:13,526,615,113$
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2019 % Applicable (1) Debt 6/30/2019
Marin Community College District 462,100,000$ 17.274% 79,823,154$
San Rafael High School District 116,868,938 78.409% 91,635,766
Tamalpais Union High School District 101,995,000 0.077%78,536
Dixie School District 30,910,810 66.296% 20,492,631
Ross School District 17,934,441 1.491% 267,403
Ross Valley School District 42,363,340 0.012%5,084
San Rafael School District 141,275,126 83.707% 118,257,170
Marin Healthcare District 372,690,000 20.778% 77,437,528
Marin Emergency Radio Authority Parcel Tax Obligations 33,000,000 17.249% 5,692,170
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 393,689,442$
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Marin County Certificates of Participation 85,234,007$ 17.249% 14,702,014$
Marin County Pension Obligation Bonds 84,770,000 17.249% 14,621,977
Marin County Transit District General Fund Obligations 69,502 17.249%11,988
Marin Municipal Water District General Fund Obligations 56,544 21.984%12,431
Marin Community College District Certification of Participation 13,360,834 17.274% 2,307,950
San Rafael School District Certificates of Participation 3,140,000 83.707% 2,628,400
City of San Rafael General Fund Obligations 52,614,778 100.000% 52,614,778 (2)
City of San Rafael Pension Obligations 3,765,000 100.000% 3,765,000
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 90,664,538
Less: City of San Rafael lease revenue bonds supported by parking revenues 4,900,000
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 85,764,538$
OVERLAPPING TAX INCREMENT DEBT (Successor Agency 9,099,465$ 100.000% 9,099,465$
TOTAL GROSS DIRECT DEBT 56,379,778
TOTAL NET DIRECT DEBT 51,479,778
TOTAL OVERLAPPING DEBT 437,073,669
GROSS COMBINED TOTAL DEBT 493,453,445 (3)
NET COMBINED TOTAL DEBT 488,553,445
(1)The percentage of overlapping debt applicable to the city is
estimated using taxable assessed property value. Applicable
percentages were estimated by determining the portion of the
overlapping district's assessed value that is within the
boundaries of the city divided by the district's total taxable
(2) Include share of Marin Emergency Radio Authority refunding revenue bonds and $1,233,779 PG&E notes.
Ratios to 2018-19 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 2.91%
Total Gross Direct Debt ($56,379,778)0.42%
Total Net Direct Debt ($51,479,778)0.38%
Gross Combined Total Debt 3.65%
Net Combined Total Debt 3.61%
Ratios to Redevelopment Incremental Valuation ($,2964,827,159
Total Overlapping Tax Increment Debt 0.31%
Data Source: MuniServices
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded
capital lease obligations.
161
ASSESSED VALUATION:13,526,615,113$
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) 507,248,067$
LESS AMOUNT OF DEBT SUBJECT TO LIMIT: 50,978,951.00
LEGAL BONDED DEBT MARGIN 456,269,116$
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2010 381,164,135$ 36,023,646$ 345,140,489$ 10.44%
2011 376,057,576 38,150,819 337,906,757 11.29%
2012 378,920,952 4,659,000 374,261,952 1.24%
2013 374,950,995 4,659,000 370,291,995 1.26%
2014 388,010,886 5,018,839 382,992,047 1.31%
2015 408,526,834 4,943,667 403,583,167 1.22%
2016 431,510,904 4,868,495 426,642,409 1.14%
2017 459,128,068 4,693,323 454,434,745 1.03%
2018 482,926,729 50,978,951 431,947,778 11.80%
2019 507,248,067 50,483,779 456,764,288 11.05%
NOTE: (a)
Source: City of San Rafael's Finance Department
CITY OF SAN RAFAEL
COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2019
California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in
basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is
one-fourth
162
CITY OF SAN RAFAEL
REVENUE BOND COVERAGE
PARKING FACILITY
LAST TEN FISCAL YEARS
Debt Service Requirements
Net Revenue
Fiscal Gross Operating Available for
Year Revenue (1) Expenses (2) Debt Service Principal Interest Total Coverage
2010 4,262,082$ 3,343,680$ 918,402$ 170,000$ 325,285$ 495,285$ 1.85
2011 4,023,211 3,101,411 921,800 175,000 319,391 494,391 1.86
2012 3,908,664 2,870,718 1,037,946 185,000 312,291 497,291 2.09
2013 3,994,446 3,121,964 872,481 310,000 240,012 550,012 1.59
2014 4,489,769 3,716,552 773,217 245,000 210,063 455,063 1.70
2015 5,180,554 4,031,161 1,149,393 245,000 205,163 450,163 2.55
2016 5,226,904 3,739,321 1,487,583 250,000 199,613 449,613 3.31
2017 5,279,801 2,425,281 2,854,520 260,000 192,038 452,038 6.31
2018 5,219,721 4,320,695 899,026 270,000 184,163 454,163 1.98
2019 5,425,883 4,283,754 1,142,130 275,000 176,025 451,025 2.53
Notes: On March 26, 2003, the City Financing Authority issued lease revenue bonds for the design and construction of a new parking facility.
On August 12,2012 , the City Financing Authority refunded the series 2003 lease revenue bonds with series 2012 lease
revenue refunding bonds to take advantage of lower interest rates.
(1) Includes all Parking Facility Operating Revenues and Non-operating Interest Revenue
(2) Includes all Parking Facility Operating Expenses less Depreciation and Interest
Data Source: San Rafael Finance Department Revenue and Expenditure Status Reports
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Coverage
163
1 -
CITY OF SAN RAFAEL
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Personal Per Capita Average Marin City
Fiscal City Income (2)Personal Unemployment County Population
Year Population (1)(in thousands)Income (2) Rate (3)Population % of County
2010 58,822$ 2,317,704$ 39,402$ 9.80% 260,651$ 22.57%
2011 58,136 2,389,222 40,978 8.80% 254,692 22.83%
2012 58,305 2,438,291 41,908 5.50% 254,790 22.88%
2013 58,182 2,538,895 43,351 4.70% 254,007 22.91%
2014 58,566 2,621,228 44,531 4.50% 255,846 22.89%
2015 59,214 2,699,436 44,558 3.70% 258,972 22.87%
2016 60,582 2,817,497 46,308 3.40% 262,274 23.10%
2017 60,842 2,943,227 48,374 3.30% 263,604 23.08%
2018 60,651 3,152,985 52,509 2.30% 263,886 22.98%
2019 60,046 n/a n/a n/a 262,879 22.84%
Source: (1) State of California, Department of Finance - Demographic Research Unit. The data represents the City's population as of
January 1, of each year.
(2) 2007-2009 Income Data--Demographic Estimates are based on the last available census. Projections are developed
by incorporating all of the prior census data released to date.
2010 and later- Income - US Census Bureau, most recent American Community Survey
(3)Unemployment Data: California Employment Development Department
0.00%
2.50%
5.00%
7.50%
10.00%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Unemployment Rate (%)
22.00%
22.50%
23.00%
23.50%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
City Population as
a % of County
Population
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Personal Income (2) (in thousands)
$30
$35
$40
$45
$50
$55
ThousandsPer Capita Personal Income (2)
164
r ■
■
---+---■
Employer # (A) # (A) # (A) # (A) # (A) # (A) # (A) # (A) # (A) # (A)
Kaiser Permanente 2,014 6.22% 2,092 6.62% 2,061 6.52% 662 2.02%1,575 4.82% 1,637 5.26% 1,756 5.74% 1,803 6.68% 1,330 4.93% 1,311 4.88%
BioMarin Pharmaceutical Inc.950 2.93%
San Rafael Elementary/High Schools Dist(700 2.16% 700 2.22% 700 2.22% 650 1.98% 650 1.99% 600 1.93% 600 1.96% 600 2.22% 600 2.22% 600 2.23%
City of San Rafael 410 1.27% 410 1.30% 454 1.44% 577 1.76% 581 1.78% 666 2.14% 643 2.10% 521 1.93% 592 2.19% 630 2.34%
Dominican University of California 421 1.30% 319 1.01%456 1.44% 485 1.48% 422 1.29% 354 1.14% 347 1.13% 346 1.28% 336 1.24% 370 1.38%
Guide Dogs for the Blind 227 0.70% 200 0.63% 203 0.64% 225 0.69% - - - - - - - - - - 287 1.07%
Buckelew Programs 103 0.32% 106 0.34% 240 0.76% 186 0.57% - - - - - - - - - - - -
Lifehouse 100 0.31%0.00%0.00% - - - - - `` - - - - - - - -
EO Poducts 150 0.46%0.00%0.00% - - - - - - - - - - - - - -
Toyota Marin 141 0.44%0.00%0.00% - - - - - - - - - - - - - -
Totals 5,216 16.10% 4,708 14.90% 5,853 18.52% 5,314 16.20% 5,620 17.19% 6,025 19.37% 6,079 19.87% 6,715 24.87% 6,007 22.25% 6,092 22.67%
#Number of FTE employees in Marin locations
(A)Percentage of total employment
Note: From the EDD website, it shows that the Total 2019 Employment in the City of San Rafael was 32,400 of which it is used as the denominator for the 2019 percentages are calculated.
Data Sources: State of California, Employment Development Department, Labor Market Information Division & North Bay Business Journal (Annual Book of Lists)
2014 2013 2012 2011 2010
CITY OF SAN RAFAEL
PRINCIPAL EMPLOYERS
FISCAL YEAR 2018-2019
LAST TEN CALENDAR YEARS
20152016201920172018
165
CITY OF SAN RAFAEL
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Function
General Government 56.88 54.35 55.23 53.23 55.11 58.11 60.61 62.11 60.11 63.11
Public Safety 165.00 166.00 162.00 163.00 168.00 171.75 175.75 176.55 175.35 175.65
Public Works and Parks 60.80 62.80 62.00 60.00 61.00 62.00 62.00 63.00 66.67 66.00
Community Development 26.75 26.75 18.25 18.25 17.80 17.80 19.80 20.00 21.00 22.00
Culture and Recreation 83.49 89.82 81.56 80.76 83.66 84.23 84.25 84.35 87.35 85.82
Total 392.92 399.72 379.04 375.24 385.57 393.89 402.41 406.01 410.48 412.58
Data Source: City of San Rafael's Finance Department
0.00
50.00
100.00
150.00
200.00
250.00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019FTE'sGeneral Government Public Safety
Public Works and Parks Community Development
Culture and Recreation
166
■
■
■
■
■
CITY OF SAN RAFAEL
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2010 2011 2012 2013
Function/Program
Public safety:
Fire:
Inspection permit issued 307 294 282 307
Police:
Police calls for service 42,227 39,512 39,537 42,707
Law violations:
Part I crimes 2,352 2,180 2,101 2,523
Physical arrests (adult and juvenile)4,487 3,102 2,981 2,951
Traffic violations 5,777 8,190 4,048 3,448
Parking violations 42,806 34,590 32,492 30,881
Public works
Street resurfacing (miles) (Eng Div)2.77 7.40 N/A 2.70
Potholes repaired (square miles)N/A N/A N/A N/A
Asphalt used for street repairs (tons)N/A 10,809 178.9 7,500
Culture and recreation:
Recreation class participants 9,524 9,000 12,075 7,082
Recreation Facility Rentals
Childcare School-Age program participants
Library:
Items in collection (thousands)151.88 158.30 159.18 125.92
Total items borrowed (thousands)371.12 435.66 366.46 392.23
Note: N/A denotes information not available.
168
2014 2015 2016 2017 2018 2019
261 282 198 233 186 123
51,261 55,805 57,026 53,567 51,013 47,919
2,289 2,533 2,523 2,392 2,326 1,893
3,227 3,450 3,453 2,526 2,019 1,923
4,498 4,168 3,252 3,341 2,758 2,944
38,814 36,398 34,803 36,169 36,208 40,407
9.00 6.40 6.76 2.32 2.50 4.30
N/A N/A N/A N/A N/A N/A
10,700 11,000 7,195 5,800 4,730 7,200
9,857 10,023 12,725 13,493 12,842 N/A
5,146
7,592
168.62 127.76 227.89 117,354 115,812 123,432
478.96 443.64 469.79 327,297 324,452 356,301
169
CITY OF SAN RAFAEL
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2010 2011 2012 2013
Function/Program
Public safety:
Fire stations 6666
Police stations 1111
Police Fleet
Public works
Miles of streets 173 173 173 173
Street lights 4,435 4,435 4,435 4,435
Parking District lights
Traffic Signals 89 89 89 89
Culture and recreation:
Community services:
City parks 20 20 20 20
City parks acreage 42424242
Playgrounds 14 14 14 14
City trails 20 20 20 20
Community gardens 1111
Community centers 4444
Senior centers 0000
Sports centers 0000
Performing arts centers 0000
Swimming pools 1111
Tennis courts 10 10 10 10
Basketball Courts 5555
Baseball/softball diamonds 5555
Soccer/football fields 2222
Library:
City Libraries 2222
Wastewater:
Miles of sanitary sewers 179 179 179 179
Data Source: City of San Rafael's Finance Department
170
2014 2015 2016 2017 2018 2019
666666
111111
173 173 173 173 173 173
4,435 4,435 4,435 4,435 4,435 4,435
89 89 89 89 89 89
20 20 20 20 20 20
42 42 42 42 42 42
14 14 14 14 14 14
20 20 20 20 20 20
111111
444444
000000
000000
000000
111111
10 10 10 10 10 10
555555
555555
222222
222222
145 145 145 145 145 145
171
INDEPENDENT ACCOUNTANT'S REPORT ON
APPL YING AGREED UPON PROCEDURES FOR
COMPLIANCE WITH THE PROPOSITION 111
2019-2020 APPROPRIATIONS LIMIT INCREMENT
Honorable Mayor and Members of the City Council
City of San Rafael, California
We have performed the procedures below, which were agreed to by the City of San Rafael, on the
Appropriations Limit Worksheet (Worksheet) for the year ended June 30, 2019. The City's management is
responsible for the Worksheet. These procedures, which were suggested by the League of California Cities
and presented in their Article XIIIB Appropriations Limitation Uniform Guidelines, were performed solely
to assist you in meeting the requirements of Section 1.5 ·of Article XIIIB of the California Constitution. The
sufficiency of these procedures is solely the responsibility of the City. Consequently, we make no
representation regarding the sufficiency of the procedures described below either for the purpose for which
this repmi has been requested or for any other purpose.
The procedures and associated findings were as follows:
A. We obtained the Worksheet and determined that the 2019-2020 Appropriations Limit of
$138,889,447 and annual adjustment factors were adopted by Resolution of the City Council. We
also determined that the population and inflation options were selected by a recorded vote of the
City Council.
B. We recomputed the 2019-2020 Appropriations Limit by multiplying the 2018-2019 Prior Year
Appropriations Limit by the Total Growth Factor. We recomputed the Total Growth Factor by
multiplying the population option by the inflation option.
C. For the Worksheet, we agreed the Per Capita Income Factor, City Population Factor and County
Population F~ctor to California State Department of Finance Worksheets.
This agreed-upon procedures engagement was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. We were not engaged to and did
not conduct an examination or review, the objective of which would be the expression of an opinion or
conclusion, respectively, on the Worksheet. Accordingly, we do not express such an opinion or conclusion.
Had we performed additional procedures, other matters might have come to our attention that would have
been repmied to you.
This report is intended solely for the information and use of management and the City Council and is not
intended to be and should not be used by anyone other than those specified parties; however, this
restriction is not intended to limit the distribution of this report, which is a matter of public record. ·
1\1¥\&~e. 1 X/1,(Jo~
Pleasant Hill, California
November 8, 2019
Accountancy Corporation
3478 Buskirk Avenue, Suite 215
Pleasant Hill, CA 94523
T 925.930.0902
F 925 .930.0135
E maze@mazeassociates.com
w mazeassociates.com
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
AND
REQUIRED COMMUNICATIONS
FOR THE YEAR ENDED JUNE 30, 2019
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
AND
REQUIRED COMMUNICATIONS
For The Year Ended June 30, 2019
Table of Contents
Page
Memorandum on Internal Control .................................................................................................. I
Schedule of Other Matters ..................................................................................................... .3
Required Communications ............................................................................................................... 7
Significant Audit Findings ... _ ......................................................................................................... 7
Accounting Policies ................................................................................................................ 7
Unusual Transactions, Controversial or Emerging Areas .................................................... 7
Accounting Estimates ............................................................................................................. 8
Disclosures .............................................................................................................................. 8
Difficulties Encountered in Performing the Audit.. .............................................................. 8
Corrected and Uncorrected Misstatements ............................................................................ 8
Disagreements with Management.. ........................................................................................ 9
Management Representations ................................................................................................. 9
Management Consultations with Other Independent Accountants ...................................... 9
Other Audit Findings or Issues ............................................................................................... 9
Other Information Accompanying the Financial Statements ....................................................... 9
This Page Left Intentionally Blank
M MAZE
& ASSOCIATES
MEMORANDUM ON INTERNAL CONTROL
To the City Council of
the City of San Rafael, California
We have audited the basic financial statements of the City of San Rafael for the year ended June 30, 2019
and have issued our report thereon dated November 7, 2019. Our opinions on the basic financial
statements and this report, insofar as they relate to San Rafael Sanitation District (District), are based
solely on the report of other auditors. In planning and performing our audit of the basic financial
statements of the City of San Rafael, in accordance with auditing standards generally accepted in the
United States of America, we considered the City's internal control over financial reporting (internal
control) as a basis for designing our auditing procedures that are appropriate in the circumstances for the
purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on
the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a .combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the City's financial statements will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control was for the limited purpose described in the first paragraph and was
not designed to identify all deficiencies in internal control that might be material weaknesses. In addition,
because of inherent limitations in internal control, including the possibility of management override of
controls, misstatements due to error or fraud may occur and not be detected by such controls. Given these
limitations during our audit, we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we
believe are opportunities for strengthening internal controls and operating efficiency.
This communication is intended solely for the information and use of management, City Council, others
within the organization, and agencies and pass-through entities requiring compliance with Government
Auditing Standards, and is not intended to be and should not be used by anyone other than these specified
parties.
ttYl "'~ -( ~/)d"~
Pleasant Hill, California
November 8, 2019
Accountancy Corporation
3478 Buskirk Avenue, Suite 215
Pleasant Hill, CA 94523
T 925.930.0902
F 925.930.0135
e maze @mazeassociates.com
w mazeassoclates,com
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE
The following comment represents new pronouncements taking effect in the next few years. We have
cited them here to keep you abreast of developments:
EFFECTIVE FISCAL YEAR 2019/20:
GASB 84-Fiduciary Activities
The objective of this Statement is to improve guidance regarding the identification of fiduciary activities
for accounting and financial reporting purposes and how those activities should be reported.
This Statement establishes criteria for identifying fiduciary activities of all state and local governments.
The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary
activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included
to identify fiduciary component units and postemployment benefit arrangements that are fiduciary
activities.
This Statement describes four fiduciary funds that should be reported, ifapplicable: (1) pension (and other
employee benefit) trust funds, (2) investment trust funds, (3) private-purpose trust funds, and ( 4) custodial
funds. Custodial funds generally should report fiduciary activities that are not held in a trust or equivalent
arrangement that meets specific criteria.
GASB 90 -Maioritv Equity Interests-an amendment of GASB Statements No. 14 and No. 61)
The primary objectives of this Statement are to improve the consistency and comparability of reporting a
govermnent's majority equity interest in a legally separate organization and to improve the relevance of
financial statement information for certain component units. It defines a majority equity interest and
specifies that a majority equity interest in a legally separate organization should be reported as an
investment if a government's holding of the equity interest meets the definition of an investment. A
majority equity interest that meets the definition of an investment should be measured using the equity
method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary
fund, or an endowment (including permanent and term endowments) or permanent fund. Those
governments and funds should measure the majority equity interest at fair value.
For all other holdings of a majority equity interest in a legally separate organization, a government should
report the legally separate organization as a component unit, and the government or fund that holds the
equity interest should report an asset related to the majority equity interest using the equity method. This
Statement establishes that ownership of a majority equity interest in a legally separate organization results
in the government being financially accountable for the legally separate organization and, therefore, the
government should report that organization as a component unit.
This Statement also requires that a component unit in which a government has a 100 percent equity
interest account for its assets, deferred outflows of resources, liabilities, and deferred inflows of resources
at acquisition value at the date the government acquired a 100 percent equity interest in the component
unit. Transactions presented in flows statements of the component unit in that circumstance should
include only transactions that occurred subsequent to the acquisition.
3
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2020/21:
GASB87-Leases
The objective of this Statement is to better meet the information needs of financial statement users by
improving accounting and financial reporting for leases by governments. This Statement increases the
usefulness of governments' financial statements by requiring recognition of certain lease assets and
liabilities for leases that previously were classified as operating leases and recognized as inflows of
resources or outflows of resources based on the payment provisions of the contract. It establishes a single
model for lease accounting based on the foundational principle that leases are financings of the right to
use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an
intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred
inflow of resources, thereby enhancing the relevance and consistency of information about governments'
leasing activities.
GASB 89 -Accounting for Interest Cost Incurred before the End of a Construction Period
The objectives of this Statement are (1) to enhance the relevance and comparability of information about
capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest
cost incurred before the end of a construction period.
This Statement establishes accounting requirements for interest cost incurred before the end of a
construction period. Such interest cost includes all interest that previously was accounted for in
accordance with the requirements of paragraphs 5-22 of Statement No. 62, Codification of Accounting
and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA
Pronouncements, which are superseded by this Statement. This Statement requires that interest cost
incurred before the end of a construction period be recognized as an expense in the period in which the
cost is incurred for financial statements prepared using the economic resources measurement focus. As a
result, interest cost incurred before the end of a construction period will not be included in the historical
cost of a capital asset reported in a business-type activity or enterprise fund.
This Statement also reiterates that in financial statements prepared using the current financial resources
measurement focus, interest cost incurred before the end of a construction period should be recognized as
an expenditure on a basis consistent with governmental fund accounting principles.
EFFECTIVE FISCAL YEAR 2021/22:
GASB 91 -Conduit Debt Obligations
The primary objectives of this Statement are to provide a single method of reporting conduit debt
obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by
issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This
Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation;
establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for
accounting and financial reporting of additional commitments and voluntary commitments extended by
issuers and arrangements associated with conduit debt obligations; and improving required note
disclosures.
4
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
This Statement also addresses arrangements-often characterized as leases-that are associated with
conduit debt obligations.
This Statement requires issuers to disclose general information about their conduit debt obligations,
organized by type of commitment, including the aggregate outstanding principal amount of the issuers'
conduit debt obligations and a description of each type of commitment. Issuers that recognize liabilities
related to supporting the debt service of conduit debt obligations also should disclose information about
the amount recognized and how the liabilities changed during the reporting period.
5
This Page Left Intentionally Blank
M MAZE
&ASSOCIATES
REQUIRED COMMUNICATIONS
To the City Council of
the City of San Rafael, California
We have audited the basic financial statements of the City of San Rafael for the year ended June 30, 2019.
We did not audit the financial statements of the San Rafael Sanitation District, as of and for the year
ended June 30, 2019, which represent 24%, 36%, and 14% of the assets , net position and revenues ,
respectively, of the entity-wide reporting entity. These component unit financial statements were audited
by another auditor, whose report thereon has been furnished to us, and our opinion, insofar as it relates to
the amounts included for this entity, is based solely on the report of the other auditor.
Professional standards require that we communicate to you the following information related to our audit
under generally accepted auditing standards and Gov ernm ent Auditing Standards and the Uniform
Guidance.
Significant Audit Findings
Accounting Policies
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City of San Rafael are described in Note 1 to the financial statements. No
new accounting policies were adopted and the application of existing policies was not changed during the
year, except as indicated below.
The following Governmental Accounting Standards Board (GASB) pronouncement became effective, but
did not have a material effect on the financial statements.
GASB 83 Certain Asset Retirement Obligations
The following GASB pronouncement became effective, but did not have a material effect on the financial
statements. See Notes 6 and 15C in the financial statements for additional disclosure.
GASB 88 Certain Disclosures Related to Debt, including Direct Borrowings and Direct
Placements
Unusual Transactions, Controversial or Emerging Areas
We noted no transactions entered into by the City during the year for which there is a lack of authoritative
guidance or consensus. All significant transactions have been recognized in the financial statements in the
proper period.
Accountancy Corporation
3478 Buskirk Avenue, Suite 215
Pleasant Hill , CA 94523 7
T 925.930.0902
F 925,930.0135
E maze @mazeassociates .com
w mazeassoclates.corn
Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
significantly from those expected. The most sensitive estimate(s) affecting the City's financial statements
were:
• Estimated Net Pension Liabilities and Pension-Related Deferred Outflows and Inflows of
Resources: Management's estimate of the net pension liabilities and related deferred
outflows/inflows ofresources are disclosed in Note 9 to the financial statements and are based on
actuarial studies determined by a consultant, which are based on the experience of the City. We
evaluated the key factors and assumptions used to develop the estimate and determined that it is
reasonable in relation to the basic financial statements taken as a whole.
• Estimated Net OPEB Liability and Pension-Related Deferred Outflows and Inflows of Resources:
Management's estimate of the net OPEB liability and related deferred outflows/inflows of
resources are disclosed in Note 11 to the financial statements and is based on actuarial studies
determined by a consultant, which are based on the experience of the City. We evaluated the key
factors and assumptions used to develop the estimate and determined that it is reasonable in
relation to the basic financial statements taken as a whole.
• Management's estimate of the depreciation: is based on useful lives determined by management.
These lives have been determined by management based on the expected useful life of assets as
disclosed in Note 1 to the financial statements. We evaluated the key factors and assumptions
used to develop the depreciation estimate and determined that it is reasonable in relation to the
basic financial statements taken as a whole.
• Estimated Fair Value of Investments: As of June 30, 2019, cash and investments were measured
by fair value. Fair value is essentially market pricing in effect as of June 30, 2019. These fair
values are not required to be adjusted for changes in general market conditions occurring
subsequent to June 30, 2019.
Disclosures
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. Management has corrected all such misstatements. In addition, none of the misstatements
detected as a result of audit procedures and corrected by management were material, either individually or
in the aggregate, to each opinion unit's financial statements taken as a whole.
8
Professional standards require us to accumulate all known and likely uncorrected misstatements identified
during the audit, other than those that are trivial, and communicate them to the appropriate level of
management. We have no such misstatements to report to the City Council.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor's report. We are pleased to report that no such disagreements arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in a management
representation letter dated November 8, 2019.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves
application of an accounting principle to the City's financial statements or a determination of the type of
auditor's opinion that may be expressed on those statements, our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the governmental unit's auditors. However,
these discussions occurred in the nonnal course of our professional relationship and our responses were
not a condition to our-retention. ·
Other Information Accompanying the Financial Statements
We applied certain limited procedures to the required supplementary information that accompanies and
supplements the basic financial statements. Our procedures consisted of inquiries of management
regarding the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We did not audit the required supplementary information
and do not express an opinion or provide any assurance on the required supplementary infonnation.
We were engaged to report on the supplementary information which accompany the financial statements,
but are not required supplementary information. With respect to this supplementary information, we made
certain inquiries of management and evaluated the form, content, and methods of preparing · the
information to determine that the information complies with accounting principles generally accepted in
the United States of America, the method of preparing it has not changed from the prior period, and the
information is appropriate and complete in relation to our audit of the financial statements. We compared
and reconciled the supplementary information to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
9
We were not engaged to report on the Introductory and Statistical Sections which accompany the financial
statements, but are not required supplementary information. Such information has not been subjected to the
auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express
an opinion or provide any assurance on it.
******
This infonnation is intended solely for the use of City Council and management and is not intended to be,
and should not be, used by anyone other than these specified parties.
lyf\6'~~ 4~1cx)o~
Pleasant Hill, California
November 8, 2019
10
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
FOR THE YEAR ENDED JUNE 30, 2019
Table of Contents
INTRODUCTORY SECTION:
Table of Contents ........................................................................................................................................... .i
FINANCIAL SECTION:
Independent Auditor's Report ................................................................................................................... 1
Basic Financial Statements
Balance Sheet .......................................................................................................................................... 3
Statement of Revenue, Expenditures and Changes in
Fund Balance ........................................................................................................................................ 4
Notes to Basic Financial Statements ...................................................................................................... 5
Supplementary Information
Schedule of A wards .............................................................................................................................. 10
Combining Statement of Revenues, Expenditures and Changes in
Fund Balance ................................................................................................................................ 11
Schedule of Expenditures by State Categories .................................................................................... 12
Schedule of Reimbursable Administrative Costs ................................................................................ 13
Schedule of Equipment Expenditures Utilizing Contract Funds ...................................................... 14
Schedule of Renovation and Repair Expenditures Utilizing Contract Funds ..................................... 14
Audited Attendance and Fiscal Reports/ Audited Fiscal Reports:
CSPP8280 -California State Preschool Programs ............................................................................ 15
Audited Reserve Account Activity Report ....................................................................................... 20
Compliance Report ·
Independent Auditor's Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards ........................................................................ 25
This Page Left Intentionally Blank
INDEPENDENT AUDITOR'S REPORT
To the Honorable Members of the City Council
City of San Rafael, California
Report on the Financial Statements
We have audited the accompanying financial statements of the City of San Rafael Child Development
Program (Program) of the City of San Rafael , California, as of and for the year ended June 30, 2019, and
the related notes to the financial statements, which collectively comprise the Program's basic financial
statements as listed in the Table of Contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of the financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements , whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the Program's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Program's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Ac coun t an cy C or pora t ion
3 478 Bu sk ir k Avenue, Suit e 2 15
Pl easa nt Hill , CA 94523
T 925 .930 .0902
F 925.930.0 135
E maze@mazeassociates.co m
w mazeassociates .com
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Program as of June 30, 2019, and changes in financial position for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Program's basic financial statements as a whole. The Supplementary Information as listed
· in the Table of Contents are presented for purposes of additional analysis and are not required parts of the
basic financial statements.
The Supplementary Information as listed in the Table of Contents is the responsibility of management and
was derived from and relates directly to the underlying accounting and other records used to prepare the
basic financial statements. The information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and in conformity with the CDE Audit Guide, issued by the
California Department of Education, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the Supplementary Information is
fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 8,
2019 on our consideration of the Program's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Program's internal control over
financial reporting and compliance.
~~i?\00~
Pleasant Hill, California
November 8, 2019
2
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
BALANCE SHEET
JUNE 30, 2019
ASSETS
Cash (Note 3)
Grants receivable (Note 4)
Total Assets
LIABILITIES AND FUND BALANCE
Accounts payable
Total Liabilities
Fund balance, restricted (Note 5)
Total Liabilities and Fund Balance
See accompanying notes to financial statements
3
$1,753,287
23,407
$1,776,694
$29,849
29,849
1,746,845
$1,776,694
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2019
REVENUES
State grants:
Current year grants
CDBG preschool grant
First five school readiness grants
Local grant
Interest
Parent fees
Other
Total Revenues
EXPENDITURES
Certified salaries
Classified Salaries
Employee benefits
Training and instruction
Office supplies
Books and supplies
Utilities and housekeeping services
Travel and conference
Rentals
Services and other operating expenditures
Equipment
Insurance
Renovation and repair
Total Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in from the City
Total Transfers
CHANGE IN FUND BALANCE
FUND BALANCE,
Beginning of year
End of year
See accompanying notes to financial statements
4
$232,864
36,447
99,978
21,040
32,608
3,181,669
13,577
3,618,183
1,722,132
76,030
1,155,391
3,667
3,615
139,707
24,592
14,641
40,438
231,557
38,284
31,570
11,529
3,493,153
50,000
50,000
175,030
1,571,815
$1,746,845
INOTE 1-ORGANIZATION
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
Notes to the Basic Financials Statements
For the Year Ended June 30, 2019
The City of San Rafael operates the Child Development Program encompassing eight childcare
centers within the City of San Rafael. One of these centers provides day care services to subsidized
families under the Child Development Program funded by the California Department of Education,
which includes the Preschool program. The City is financially accountable for the activities of the
Program. The Program has no employees and substantially all staff services which it requires are
performed by the City's personnel. Costs incurred by the City to provide such services including
compensation, retirement, and other benefit costs are reimbursed by the Program. These basic
financial statements present only the activities of the Program and are not intended to present the
financial position of the City of San Rafael, California, or the results of its operations. The
financial statements of the Program are included as a Special Revenue Fund in the City's financial
statements.
jNOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Accounting
The accounting and reporting treatment applied to a fund is determined by its measurement focus.
Governmental funds are accounted for on a spending or "current financial resources" measurement
focus. Accordingly, only current assets and current liabilities generally are included on the balance
sheets. Operating statements of governmental funds present increases (revenues and other financial
sources) and decreases (expenditures and other financial uses) in net current assets.
The Program's financial activities are accounted for using the modified accrual basis of accounting.
Under this method, revenues are recognized when measurable and available. The City considers all
revenues reported in the governmental funds to be available if the revenues are collected within
sixty days after year-end. · Expenditures are recorded when the related fund liability is incurred.
Revenues considered susceptible to accrual include charges for services, federal and state grants,
and interest. Expenditures are recognized in the accounting period in which the liability is incurred,
if measurable.
B. Fund Balance
Fund Balance is the excess of all the Program's assets over all its liabilities.
5
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
Notes to the Basic Financials Statements
For the Year Ended June 30, 2019
!NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date. The City categorizes
its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used
to measure fair value into three levels based on the extent to which inputs used in measuring fair
value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities.
· Level 2 inputs are inputs -other than quoted prices included within level 1 -that are
observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair
value hierarchy, the measurement is considered to be based on the lowest priority level input that is
significant to the entire measurement.
I NOTE 3 -CASH AND INVESTMENTS
The Program's cash is included in a City-wide cash and investment pool, the details of which are
presented in the City's basic financial statements. The Program pools cash from all sources with the
City of San Rafael so that it can be invested at the maximum yield, consistent with safety and
liquidity, while individual funds can make expenditures at any time. The City's investment policy
and the California Government Code permit investments in Securities of the U.S. Government or its
agencies, Certificates of Deposit, Negotiable Certificates of Deposit, Banker's Acceptances,
Commercial Paper, the State of California Local Authority Investment Fund (LAIF Pool), Repurchase
Agreements, Medium-Term Corporate Notes, Limited Obligation Improvement Bonds related to
special assessment districts and special tax districts, and Money Market/Mutual Funds.
The City categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical
assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant
unobservable inputs. The City of San Rafael pooled investments is an uncategorized input not defined
as Level 1, Level 2, or Level 3 inp11t.
6
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
Notes to the Basic Financials Statements
For the Year Ended June 30, 2019
I NOTE 4 -GRANTS RECEIVABLE
The Program has the following grants receivable at June 30, 2019:
Agency Grant
Marin County First 5 Grant
Total
I NOTE 5 -FUND BALANCES
Amount
$23,407
$23,407
Governmental fund balances represent the net current assets of each fund. Net current assets
generally represent a fund's cash and receivables, less its liabilities.
The City's fund balances are classified based on spending constraints imposed on the use of
resources. For programs with multiple funding sources, the City prioritizes and expends funds in
the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the
following hierarchy is ranked according to the degree of spending constraint.
Nonspendable represents balances set aside to indicate items do not represent available, spendable
resources even though they are a component of assets. Fund balances required to be maintained
intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids,
notes receivable, and land held for redevelopment are included. However, if proceeds realized from
the sale or collection of nonspendable assets are restricted, committed or assigned, then
Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors,
laws, regulations, or enabling legislation which requires the resources to be used only for a specific
purpose. Nonspendable amounts subject to restrictions are included along with spendable resources.
Committed fund balances have constraints imposed by formal action of the City Council which may
be altered only by formal action of the City Council. Nonspendable amounts subject to council
commitments are included along with spendable resources.
Assigned fund balances are amounts constrained by the City's intent to be used for a specific
purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its
designee and may be changed at the discretion of the City Council or its designee. This category
includes nonspendables, when it is the City's intent to use proceeds or collections for a specific
purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service
Funds which have not been restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or
assigned. This includes the residual general fund balance and residual fund deficits, if any, of other
governmental funds.
7
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
Notes to the Basic Financials Statements
For the Year Ended June 30, 2019
I NOTE 6 -CONTINGENCIES AND COMMITMENTS
The Program participates in Federal, State and County grant programs that are fully or partially
funded by grants received from other governmental units. Expenditures financed by grants are
subject to audit by the appropriate grantor government. If expenditures are disallowed due to
noncompliance with grantor program regulations, the City may be required to reimburse the grantor
government. As of June 30, 2019, some amounts of grant expenditures have not been audited, but
the City believes that disallowed expenditures, if any, based on subsequent audits will not have a
material effect on any individual governmental funds or the overall financial condition of the City.
8
SUPPLEMENTARY INFORMATION
Program
Federal Awards
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
SCHEDULE OF AWARDS
FOR THE YEAR ENDED JUNE 30, 2019
Pass-Through Identifying
CFDA# Number
US Department of Housing and Urban Development,
Pass-through the County of Marin
Community Development Block Grant 14.218 40CDBG19CD4527
Total Federal Awards
State Awards
State of California Department of Education
Child Development Division
State Preschool Program FY2018 CSPP-8280
Total State Awards
County Award
County of Marin
First Five -Preschool CSRI-21-009-10
Local A wards
Marin Child Care Council NIA
Total Local Awards
Total State, Federal Awards, and Local
Award
Amount Revenue Expenditures
$36,447 $36,447 $36,447
$36,447 $36,447 $36,447
$232,864 $232,864 $286,118
$232,864 $232,864 $286,118
$99,978 $99,978 $99,978
$21,040 $21,040 $21,040
$21,040 $21,040 $21,040
$390,329 $390,329 $443,583
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2019
State Preschool
Program Total CDE Non-CDE
(CSPP 8280) CD Contracts Programs
REVENUES
State grants:
Current year grants $232,864 $232,864
CDBG preschool grant $36,447
First Five school readiness grants 99,978
Local grants 21,040
Interest 32,608
Parent fees -noncertified children 3,181,669
Other 13,577
Total Revenues 232,864 232,864 3,385,319
EXPENDITURES
Certified salaries 60,656 60,656 1,661,476
Classified salaries 76,030 76,030
Employee benefits 115,741 115,741 1,039,650
Training and instruction 3,667
Office supplies 3,615
Books and supplies 11,377 11,377 128,330
Utilities and housekeeping services 24,592
Travel and conference 14,641
Rentals 40,438
Services and other operating expenditures 22,314 22,314 209,243
Equipment 38,284
Insurance 31,570
Renovation and repair 11,529
Total Expenditures 286,118 286, 118 3,207,035
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (53,254) (53,254) 178,284
OTHER FINANCING SOURCE (USES)
Transfers in from City 50,000 50,000
Total Transfers 50,000 50,000
CHANGE IN FUND BALANCE ($3,254) ($3,254) $178,284
11
Total
$232,864
36,447
99,978
21,040
32,608
3,181,669
13,577
3,618,183
1,722,132
76,030
1,155,391
3,667
3,615
139,707
24,592
14,641
40,438
231,557
38,284
31,570
11,529
3,493,153
125,030
50,000
50,000
$175,030
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
SCHEDULE OF EXPENDITURES BY STATE CATEGORIES
FOR THE YEAR ENDED JUNE 30, 2019
EXPENDITURES:
11000
1100
1200
1300
1600
12001
2100
2300
2400
2500
2600
13000
3200
3300
3400
3600
14000
4200
4300
4500
4600
l5ooo
5100
5200
5300
5400
5500
5600
5700
5800
16000
6100
6200
6400
Certified personnel salaries
Teachers' salaries
Administration
Supervisors' salaries
Infant educators
Classified personnel salaries
Instructional aides' salaries
Clerical and other office salaries
Maintenance and operations salaries
Food services salaries
Transportation salaries
Employee benefits
Payroll taxes (Medicare)
Other benefits
Health and welfare
Workers' compensation insurance
Books and supplies
Other books
Instructional materials and supplies
Other supplies
Food supplies
Services and other operating expenditures
Lecturer
Travel and conferences
Memberships and dues
Insurance
Utilities and housekeeping services
Rentals, leases and repairs
Audit expense
Other direct services & admin.
Capital Outlay
Sites and improvements of sites
Buildings and improvements of buildings
Equipment (program-related)
6500 Equipment replacement (program related) I Depreciation
Costs capitalized as Fixed Assets
TOT AL OF REIMBURSABLE AND
NONREIMBURSABLE EXPENDITURES
CSPP-8280
State Preschool
Program
$60,656
60,656
$76,030
76,030
$115,741
1,864
77,742
34,618
1,517
$11,377
11,377
$22,314
3,066
2,462
3,005
13,781
$286,118
We have examined the claims filed for reimbursement and the original records supporting the transactions
recorded under the contracts listed above to an extent considered necessary to assure ourselves that the
amounts claimed by the contractor were eligible for reimbursement, reasonable, necessary, and adequately
supported, according to governing laws, regtJlations, and contract provisions.
12
Totals
$60,656 I
60,656
$76,o3o 1
76,030
$115,741
1,864
77,742
34,618
1,517
$11,377 1
11,377
$22,314 I
3,066
2,462
3,005
13,781
I
$286,118
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
SCHEDULE OF REIMBURSABLE ADMINISTRATIVE COSTS
FOR THE YEAR ENDED JUNE 30, 2019
Administrative Costs (Audit Fees)
Total Administrative Costs
13
CSPP-8280
State Preschool
Program
$5,408
$5,408
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
SCHEDULE OF EQUIPMENT EXPENDITURES UTILIZING CONTRACT FUNDS
FOR THE YEAR ENDED JUNE 30, 2019
Expenditures Under $7,500
Unit Cost
.Expenditures Over $7,500
Unit Cost with CDD Approval
Expenditures Over $7,500
Unit Cost Without CDD Approval
Cost Item Cost Item Cost Item
None None None
SCHEDULE OF RENOVATION AND REPAIR EXPENDITURES UTILIZING CONTRACT FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Expenditures Under $10,000
Unit Cost
Cost Item
None
Expenditures Over $10,000
Unit Cost with CDD Approval
Cost Item
None
14
Expenditures Over $10,000
Unit Cost Without CDD Approval
Cost Item
None
CALIFORNIA DEPARTMENT OF EDUCATION
AUDITED ATTENDANCE AND FISCAL REPORT FOR
CALIFORNIA STATE PRESCHOOL PROGRAMS
A U D 8501 Page 1 of 9 (06/19)
Fiscal Year Ending
Contract Number
Vendor Code
[June 30, 2019
jcsPP I [8280
[2193
Full Name of Contractor jcity of San Rafael J
........
VI
Section 1 -Days of Enrollment Certified Children
Three Years and Older Full-time-plus
Three Years and Older Full-time
Three Years and Older Three-quarters-time
Three Years and Older One-half-time
Exceptional Needs Full-time-plus
Exceptional Needs Full-time
Exceptional Needs Three-quarters-time
Exceptional Needs One-half-time
Limited and Non-English Proficient Full-time-plus
Limited and Non-English Proficient Full-time
Limited and Non-English Proficient Three-quarters-time
Limited and Non-English Proficient One-half-time
Column A Column B Column C
Cumulative Audit Cumulative
CDNFS 8501 Adjustments Per Audit
7,886 7,886
PageD
Column D Column E
Adjustment Adjusted Days
Factor Per Audit
1.1800 0
1.0000 0
0.7500 0
0.6193 4,883.7998
1.6166 0
1.3700 0
1.0275 0
0.6193 0
1.2980 0
1.1000 0
0.8250 0
0.6193 0
CALIFORNIA DEPARTMENT OF EDUCATION
AUDITED ATTENDANCE AND FISCAL REPORT FOR
CALIFORNIA STATE PRESCHOOL PROGRAMS
A U D 8501 Page 2 of 9 (06/19)
Fiscal Year Ending
Contract Number
Vendor Code
[June 30, 2019
lcsPP I 18280 I
[2193
Full Name of Contractor !city of San Rafael I
~
0\
Column A Column B Column C Column D Column E
Section 1 -Days of Enrollment Certified Children Cumulative Audit Cumulative Adjustment Adjusted Days
CDNFS 8501 Adjustments Per Audit Factor Per Audit
At Risk of Abuse or Neglect Full-time-plus 1.2980 0
At Risk of Abuse or Neglect Full-time 1 .. 1000 0
At Risk of Abuse or Neglect Three-quarters-time 0.8250 0
At Risk of Abuse or Neglect One-half-time 0.6193 0
Severely Disabled Full-time-plus 2.0237 0
\
Severely Disabled Full-time / 1.7150 0
Severely Disabled Three-quarters-time 1.2863 0
Severely Disabled One-half-time 0.6193 0
TOTAL DAYS OF ENROLLMENT 7,886 7,886 N/A 4,883.7998
DAYS OF OPERATION 175 175 N/A N/A
DAYS OF ATTENDANCE 7,886 7,886 N/A N/A
D NO NON-CERTIFIED CHILDREN Check this box (omit pages 3-5) and continue to Revenue Section on page 6.
Page~
CALIFORNIA DEPARTMENT OF EDUCATION
AUDITED ATTENDANCE AND FISCAL REPORT FOR
CALIFORNIA STATE PRESCHOOL PROGRAMS
A U D 8501 Page 3 of 9 (06/19)
Fiscal Year Ending
Contract Number
Vendor Code
[June 30, 2019
jcsPP I 18280 I
!2193
Full Name of Contractor IL-c_it_y_o_f_S_a_n_R_a_fa_e_l ________________________________ -------J
Section 2 -Days of Enrollment Non-Certified Column A Column B Column C Column D Column E
Cumulative Audit Cumulative Adjustment Adjusted Days Children CDNFS 8501 Adjustments Per Audit Factor Per Audit
Toddlers (18 up to 36 months) Full-time-plus 1.8880 0
Toddlers (18 up to 36 months) Full-time 1.6000 0
Toddlers (18 up to 36 months) Three-quarters-time 1.2000 0
f--'
---l ; Toddlers (18 up to 36 months) One-half-time 0.6193 0
Three Years and Older Full-time-plus 1.1800 0
Three Years and Older Full-time 1.0000 0
Three Years and Older Three-quarters-time 0.7500 0
Three Years and Older One-half-time 0.6193 0
Exceptional Needs Full-time-plus 1.6166 0
Exceptional Needs Full-time 1.3700 0
Exceptional Needs Three-quarters-time 1.0275 0
Exceptional Needs One-half-time 0.6193 0
PageLJ
CALIFORNIA DEPARTMENT OF EDUCATION
AUDITED ATTENDANCE AND FISCAL REPORT FOR
CALIFORNIA STATE PRESCHOOL PROGRAMS
A U D 8501 Page 4 of 9 (06/19)
Fiscal Year Ending
Contract Number
Vendor Code
[June 30, 2019
lcsPP 118280 I
[2193
Full Name of Contractor jcity of San Rafael j
........
00
Section 2 -Days of Enrollment Non-Certified
Children
Limited and Non-English Proficient Full-time-plus
Limited and Non-English Proficient Full-time
Limited and Non-English Proficient Three-quarters-time
Limited and Non-English Proficient One-half-time
At Risk of Abuse or Neglect Full-time-plus
At Risk of Abuse or Neglect Full-time
At Risk of Abuse or Neglect Three-quarters-time
At Risk of Abuse or Neglect One-half-time
Column A Column B
Cumulative Audit
CDNFS 8501 Adjustments
PageD
Column C Column D Column E
Cumulative Adjustment Adjusted Days
Per Audit Factor Per Audit
1.2980 0
1.1000 0
0.8250 0
0.6193 0
1.2980 0
1.1000 0
0.8250 0
0.6193 0
CALIFORNIA DEPARTMENT OF EDUCATION
AUDITED ATTENDANCE AND FISCAL REPORT FOR
CALIFORNIA STATE PRESCHOOL PROGRAMS
A U D 8501 Page 5 of 9 (06/19)
Fiscal Year Ending
Contract Number
Vendor Code
!June 30, 2019
lcsPP l 18280 I
[2193
Full Name of Contractor jcity of San Rafael j
Section 2 -Days of Enrollment Non-Certified Column A Column B Column C Column D Column E
Cumulative Audit Cumulative Adjustment Adjusted Days Children CDNFS 8501 Adjustments Per Audit Factor Per Audit
Severely Disabled Full-time-plus 2.0237 0
Severely Disabled Full-time 1.7150 0
,-.......
'-0
Severely Disabled Three-quarters-time 1.2863 0
Severely Disabled One-half-time 0.6193 0
TOTAL NON-CERTIFIED DAYS OF ENROLLMENT N/A 0
PageD
t0
0
CALIFORNIA DEPARTMENT OF EDUCATION
AUDITED ATTENDANCE AND FISCAL REPORT FOR
CALIFORNIA STATE PRESCHOOL PROGRAMS
A U D 8501 Page 6 of 9 (06/19)
Fiscal Year Ending jJune 30, 2019
Contract Number lcspp I [a280
Vendor Code 12193 I
Full Name of Contractor jcity of San Rafael J
Column A Column B Column C
Section 3 -Revenue Cumulative Audit Cumulative
CDNFS 8501 Adjustments Per Audit
Restricted Income -Child Nutrition Programs
Restricted Income -County Maintenance _of Effort (EC Section 8279)
Restricted Income -Other:
Restricted Income -Subtotal
Transfer from Reserve -General
Transfer from Reserve -Professional Development
Transfer from Reserve Total
Family Fees for Certified Children
Interest Earned on Child Development Apportionment Payments
Unrestricted Income: Fees for Non-Certified Children
Unrestricted Income: Head Start
Unrestricted Income -Other:
Total Revenue
Page□
CALIFORNIA DEPARTMENT OF EDUCATION
AUDITED ATTENDANCE AND FISCAL REPORT FOR
CALIFORNIA STATE PRESCHOOL PROGRAMS
A U D 8501 Page 7 of 9 (06/19)
Full Name of Contractor [city of San Rafael
Section 4 -Reimbursable Expenses
Direct Payments to Providers (FCCH only)
1000 Certificated Salaries
2000 Classified Salaries
3000 Employee Benefits
4000 Books and Supplies
5000 Services and Other Operating Expenses
t0 6100/6200 Other Approved Capital Outlay
........
6400 New Equipment (program-related)
6500 Equipment Replacement (program-related)
Depreciation or Use Allowance
Start-up Expenses (service level exemption)
Budget Impasse Credit
Indirect Costs (Include in Administrative Cost)
Non-Reimbursable (State Use Only)
Total Reimbursable Expenses
Total Administrative Cost (included in section 4 above)
Approved Indirect Cost Rate:
Column A
Cumulative
CDNFS 8501
60,656
76,030
115,741
11,377
22,314
286,118
Fiscal Year Ending !June 30, 2019
Contract Number jcsPP I [8280
Vendor Code !2193 j
Column B Column C
Audit Cumulative
Adjustments Per Audit
60,656
76,030
115,741
11,377
22,314
286,118
5,408 5,408
Comments: !Adjustments identified in Column B are adjustments made to report audit fees as administrative costs.
~ NO SUPPLEMENTAL REVENUE Check this box and omit Page 8.
PageD
CALIFORNIA DEPARTMENT OF EDUCATION
AUDITED ATTENDANCE AND FISCAL REPORT FOR
CALIFORNIA STATE PRESCHOOL PROGRAMS
A U D 8501 Page 8 of 9 (06/19)
Full Name of Contractor
Section 5 -Supplemental Revenue
Enhancement Funding
Other:
Other:
Total Supplemental Revenue
N
N
Section 6 -Supplemental Expenses
1000 Certificated Salaries
2000 Classified Salaries
3000 Employee Benefits
4000 Books and Supplies
5000 Services and Other Operating Expenses
6000 Equipment/Capital Outlay
Depreciation or Use Allowance
Indirect Costs
Non-reimbursable Expenses 6100-6500 Non-reimbursable Capital Outlay
Total Supplemental Expenses
Page □
Column A
Cumulative
CDNFS 8501
Column A
Cumulative
CDNFS 8501
Fiscal Year Ending IJune 30, 2019
Contract Number lcspp I lr-82_8_0_--,l
Vendor Code 12193 I
Column B Column C
Audit Cumulative
Adjustments Per Audit
Column B Column C
Audit Cumulative
Adjustments Per Audit
CALIFORNIA DEPARTMENT OF EDUCATION AUDITED ATTENDANCE AND
FISCAL REPORT FOR CALIFORNIA STATE PRESCHOOL PROGRAMS Fiscal Year Ending !June 30, 2019
A U D 8501 Page 9 of 9 (06/19) Contract Number lcspp I 18280 j
Full Name of ContractorjCity of San Rafael j
Vendor Code 12193 j
t0 w
Column A
Section 7 -Summary Cumulative
CDNFS 8501
Total Certified Days of Enrollment 7,886
Days of Operation 175
Days of Attendance 7,886
Total Non-Certified Days of Enrollment
Restricted Program Income
Transfer from Reserve
Family Fees for Certified Children
Interest Earned on Apportionment Payments
Direct Payments to Providers
Start-up Expenses (service level exemption)
Total Reimbursable Expenses 286,118
Total Administrative Cost
Column B Column C
Audit Cumulative
Adjustments Per Audit
7,886
175
7,886
286,118
5,408 5,408
Total Certified Adjusted
Days of Enrollment
Total Non-Certified
Adjusted
Days of Enrollment
4,883.7998
0
Independent Auditor's Assurances on Agency's Compliance with the Contract Funding Terms and Conditions and Program Requirements of
the California Department of Education, Early Learning and Care Division:
Eligibility, enrollment and attendance records are being maintained as required (check YES or NO):
Reimbursable expenses claimed on page 7 are eligible for reimbursement, reasonable, necessary, and adequately
supported (check YES or NO):
Include any comments in the Comments box on page 7. If necessary, attach additional sheets to explain adjustments.
Page □
~Yes
□No
~ Yes
□No
CALIFORNIA DEPARTMENT OF EDUCATION
AUDITED RESERVE ACCOUNT ACTIVITY REPORT
A U D 9530-A Page 1 of 1 (06/19)
Fiscal Year End !June 30, 2019
Reserve Account Type !center-Based
Vendor Code 1~2_1_93 ____ ~-~
Full Name of Contractor !city of San Rafael Child Development Program
Prior Year -Reserve Account Activity Per 2017-18 AUD 9530-A
1. Beginning Balance (2017-18 Ending Balance) 0
2. Plus Transfers to Reserve Account: Per CDNFS 9530
Contract No. 7280 0
Contract No.
Contract No.
Contract No.
Contract No.
Contract No.
Total Transferred from PY Contracts to Reserve 0
3. Less Excess Reserve to be Billed
4. Ending Balance on PY Post-Audit CDNFS 9530 0
Current Year -Reserve Account Activity Column A Column B Column C
CDNFS 9530-A Audit Adjustments Per Audit
5. Plus Interest Earned This Year on Reserve 0 0
C -_-,
6. Less Transfers to Contracts from Reserve: :} ,,-
CSPP General-Contract No. 8280 0 0
CSPP General-Contract No.
CSPP Professional Development-Contract No.
CSPP Professional Development-Contract No.
Subtotal CSPP Transfers 0 0
Other Contract No.
Other Contract No.
Other Contract No.
Other Contract No.
Other Contract No.
Subtotal Other Contract Transfers
Total Transferred to Contracts from Reserve Account 0 0
7. Ending Balance on June 30, 2019 0 0
COMMENTS -If necessarv attach additional sheets to exolain adiustments.
INDEPENDENT AUDITOR'S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the City Council
City of San Rafael, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the basic financial statements of the City of San
Rafael Child Development Program (Program), California, as of and for the year ended June 3 0, 2019, and
the related notes to the financial statements, and have issued our report thereon dated November 8, 2019.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Program's internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of Program's internal control. Accordingly, we do
not express an opinion on the effectiveness of Program's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the Program's financial statements will not be prevented, or detected and corrected on a timely basis.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Program's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, 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 or other matters that are required to be
reported under Government Auditing Standards.
Accountancy Corporation
3478 Buskirk Avenue, Suite 215
Pleasant Hill, CA 94523 25
T 925.930.0902
F 925,930.0135
E maze@mazeassociates .com
w mazeassociates.com
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Program's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Program's internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
1Vta)e-~~o~
Pleasant Hill, California
November 8, 2019
26