HomeMy WebLinkAboutFin Financial Reports FY2012-13CITY OW
Agenda Item No: 3. a
Meeting Date: November 4, 2013
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: FINANCE
Prepared by: Mark Moses )(P—
Finance Director
City Manager Approval:
SUBJECT: FISCAL YEAR 2012-2013 ANNUAL FINANCIAL REPORT; SINGLE
AUDIT; GANN APPROPRIATIONS LIMIT; MEMORANDUM ON
INTERNAL CONTROL; AND CHILD DEVELOPMENT PROGRAM
RECOMMENDATION: ACCEPT THE FISCAL YEAR 2012-2013 ANNUAL
FINANCIAL REPORT; ACCEPT THE SINGLE AUDIT
REPORT; ACCEPT THE GANN APPROPRIATIONS LIMIT
REPORT; ACCEPT THE MEMORANDUM ON INTERNAL
CONTROL; AND ACCEPT THE CHILD DEVELOPMENT
PROGRAM 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 2012-2013. 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-13 3 ), Audits of State and Local Government and
Non -Profit Organizations.
The Federal Government requires that any local agency expending $500,000 or more in
combined federal grant funds, either directly or indirectly in a fiscal year, is subject to a separate
audit on those programs and a separate Single Audit Report is issued. This threshold amount did
occur in fiscal year 2012-2013.-, therefore, this separate audit was required.
The requirements of Section 1.5 of Article X111B 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, 2014. A Memorandum on Internal Control is also prepared by the auditors to
help identifv areas that could help improve the City's organization and controls over its financial
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activities. These reports are also attached to this staff report.
Finally., as part of the fiscal A. -ear -end closing activities. the Finance and Community Services
FOR CITY CLERK ONLY
File No.:
Council Meeting:
Disposition:
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paye: 2
departments worked with Maze and Associates to complete the annual audit of the City's
childcare program, as required by the State of California.
ANALYSIS:
Financial results: City-wide
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
was $253.3 million,, an increase of $12.5 million from the prior year. This increase is largely
attributable to positive general fund operating results, coupled with the accumulation of funds for
specific purposes — e.g., traffic and housing mitigation, capital projects, equipment replacement,
building maintenance,, gas tax., etc.
A financial summary of revenues and expenditures is shown in the Statement of Activities and
Changes in Net Position. Total governmental revenues and transfers in of $97.3 million exceeded
the $84.8 million in expenditures by $12.5 million. Strong sales and property tax performance.,
coupled with development -related fees and reimbursements from the Successor Agency on
behalf of the former Redevelopment Agency contributed to this result. Total revenues from
business activities (Parking Fund) of $3,995,000 exceeded expenditures and operating transfers
out of $3,969,000 by $26,000.
Supplementary explanatory information is provided in the Management's Discussion and
Analysis (MD&A) section beginning on page three. The MD&A provides key highlights and a
summary view of performance of financial activities for the year.
Financial results: General Fund
The final operating results for the General Fund exceeded the original projections made at the
time the budget was adopted for fiscal year 2012-2013 by approximately $1.0 million. These
funds were added to the City's Emergency and cash flow reserve in the General Fund.
.01
The original, adopted General Fund budget projected total revenue of $56.1 million and transfers
in of $1.5 million for total resources of $57.6 million. This budget appropriated expenditures of
$56.2 million and transfers out of $ 1.4 million, for a total of $57.6 million. Actual revenues, at
$60.0 million,, exceeded the original budgeted revenues by $3.9 million. This positive
performance was driven by tax revenues {property tax,, sales tax, transient occupancy tax) and
payments from the Successor Agency for obligations due to the general fund from the former
Redevelopment Agency. In addition, actual transfers in of $3 ).1 million exceeded budgeted
transfers in by $1.6 million, primarily as a result of $1.5 million released from the general
liability reserN:e following a positive outcome from litigation.
Of the $5.5 million in additional resources, $4.5 million was allocated via additional
appropriations during the year to support long-term capital infrastructure. building repair and
maintenance, technolocyy. and unfunded retirement -related liabilities. The remaining $1.0 million
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was added to the emergency and cash flow reserve.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pau: 3
Single Audit
The City incurred a total of $2,894,896 in federal expenditures during fiscal year 2012-2013 that
fall under the parameters of this audit. The auditor identified the following three major programs
to be audited.
1. U.S Department of Transportation - Highway Planning and Construction: $1,115,979 in funds
supported Citywide street resurfacing, transit center connectors and safe routes to school
constructions.
2. U.S Department of Energy — Energy Efficiency and Conservation Block Grant: $410,948 in
funds supported upgrade to the City Hall heating, ventilation and air condition system.
3. U.S Department of Homeland Security — Assistance to Firefighters Grant: $329,316 in funds
supported the purchase of self-contained breathing apparatus (SOBA).
As required under the Single Audit Act, a number of separate reports are contained within the
document. Most of these reports comment on either compliance with Federal assistance
regulations or recommendations regarding the City's accounting practices. With respect to
compliance, the auditors found no material instances of noncompliance with laws, regulations,,
contracts or grants applicable to our programs. There were no findings or recommendations for
fiscal year 2012-2013..
Gann Appropriations Limit
The Agreed -Upon Procedures report for the Gann Appropriations Limit required three steps to be
performed including testing the accuracy of the calculations and comparison of information
presented. No exceptions were noted in the three steps for the fiscal year 2013-2014 calculation.
Afemorandum on Internal Control I
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. The section titled
"Schedule of Other Matters" addresses items that are considered by the auditors to be worthy of
note to the Council. One recommendation was included which pertained to the review of workers
compensation claim -related disbursements initiated by the City's third -party administrator. There
were no areas that the auditors considered to be material weaknesses for fiscal year 2012-2013,
and all of the issues raised in prior year communications have been successfully addressed.
The auditors noted several new pronouncements issued by the Governmental Accounting
Standards Board (GASB) which become effective over the upcoming years. This is significant.,
due to both the number of new statements and the scope of change associated with some of them
GAS13 Statement No. 65 - Items Previously Reported as Assets and Liabilities and No. 68 -
Accounting and Financial Reporting for Pensions).
(._'hildcare Audit
The Childcare Program operated at near breakeven. with $3.7 million in total revenues and $3 ) .7
million in expenditures for the fiscal year. The audit resulted in no adverse findings.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / PaLye: 4
FISCAL IMPACT: No fiscal impact occurs by the City Council's acceptance of these reports.
The fiscal year 2012-2013 Comprehensive Annual Financial Report and related reports are
presented as the actual results of the City and related entities' financial activities for the year.
RECOMMENDATION: Staff recommends that City Council accept the reports as presented.
Attachments: Comprehensive Annual Financial Report — Fiscal Year Ending June 30, 2013
Single Audit for the year ended June 30, 2013
Prop 111 (GANN) fiscal year 2013-2014 Appropriations Limit
Memorandum on Internal Control
Child Development Program (Childcare)
W-ManagementServices- WorkFileTinance- WorkFile"'Council Materlal\Staff Reports-\2013\City\YE-Financial-Audit Reports FY12-13.doc
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDING JUNE 3O, 2013
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For the Fiscal Year Ended
June 30, 2013
City of •
P.O. Box 151560
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Prepared by the Finance Department of the City of San Rafael
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San Rafael Police Patrol Boat
INTRODUCTORY
SECTION
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CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2013
Table of Contents
INTRODUCTORY SECTION
TABLE OF CONTENTS
Letterof Transmittal....................................................................................................................................v
Mission Statement and Vision Statement....................................................................................................x
CityCouncil and Staff................................................................................................................................
xi
LocationMap............................................................................................................................................
xii
OrganizationalChart ................................................................................................................................
xiii
FINANCIAL SECTION I
Independent Auditor's Report..................................................................................................................1
Management's Discussion and Analysis..................................................................................................5
Basic Financial Statements:
Government -wide Financial Statements:
Statementof Net Position.............................................................................................................23
Statementof Activities..................................................................................................................24
Fund Financial Statements:
Major Governmental Funds:
BalanceSheet............................................................................................................................28
Balance Sheet - Reconciliation of Governmental Fund Balances to
Net Position of Governmental Activities..............................................................................29
Statement of Revenues, Expenditures, and Changes in Fund Balances....................................30
Reconciliation of the Net Change in Fund Balances - Total Governmental
Funds with the Statement of Activities.................................................................................31
Proprietary Funds:
Statementof Net Position..........................................................................................................34
Statement of Revenues, Expenses, and Changes in Fund Net Position....................................35
Statementof Cash Flows...........................................................................................................36
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CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2013
Table of Contents
FINANCIAL SECTION (Continued) I
Fiduciary Funds:
Statement of Fiduciary Net Position..........................................................................................3 8
Statement of Changes in Fiduciary Net Position.......................................................................39
Notes to Basic Financial Statements..................................................................................................41
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual -
Budgetary Basis
GeneralFund..............................................................................................................................82
Traffic and Housing Mitigation Special Revenue Fund............................................................83
Gas Tax Special Revenue Fund.................................................................................................84
Supplementary Information:
Non -major Governmental Funds:
CombiningBalance Sheets...........................................................................................................90
Combining Statements of Revenues, Expenditures, and Changes
inFund Balance.....................................................................................................................96
Budgeted Non -major Government Funds:
Combining Schedules of Revenues, Expenditures, and Changes
in Fund Balances — Budget and Actual......................................................................102
Internal Service Funds:
Combining Statements of Net Position.......................................................................................112
Combining Statements of Revenues, Expenses and Changes in Fund Net Position ..................114
Combining Statements of Cash Flows........................................................................................116
Agency Funds:
Combining Statements of Changes in Assets and Liabilities .....................................................120
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CITY OF SAN RAFAEL, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2013
Table of Contents
STATISTICAL SECTION
Financial Trends:
Net Position by Component — Last Ten Fiscal Years............................................................................. 124
Changes in Net Position — Last Ten Fiscal Years................................................................................... 126
Fund Balances of Governmental Funds — Last Ten Fiscal Years........................................................... 130
Changes in Fund Balance of Governmental Funds — Last Ten Fiscal Years .......................................... 132
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years ............................134
Property Tax Rates - All Direct and Overlapping Governments— Last Ten Fiscal Years......................135
Principal Property Tax Payers — Current Year and Nine Years Ago......................................................136
Property Tax Levies and Collections — Last Ten Fiscal Years...............................................................137
Debt Capacity:
Ratio of Outstanding Debt by Type — Last Ten Fiscal Years.................................................................138
Computation of Direct and Overlapping Debt........................................................................................139
Computation of Legal Bonded Debt Margin..........................................................................................140
Revenue Bond Coverage Parking Facility — Last Ten Fiscal Years .......................................................141
Demographic and Economic Information:
Demographic and Economic Statistics — Last Ten Fiscal Years............................................................142
PrincipalEmployers................................................................................................................................143
Operating Information:
Full -Time Equivalent City Government Employees by Function
— Last Ten Fiscal Years.......................................................................................................................144
Operating Indicators by Function/Program — Last Ten Fiscal Years .....................................................146
Capital Asset Statistics by Function/Program — Last Ten Fiscal Years .................................................148
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October 21, 2013
Honorable Mayor, Members of the City Council and Residents of San Rafael:
The Comprehensive Annual Financial Report (CAFR) of the City of San Rafael for the year ended June 30,
2013, is hereby submitted as required by local ordinances, State statutes and bond covenants. This financial
report has been prepared in conformance with Generally Accepted Accounting Principles as promulgated
by the Governmental Accounting Standards Board (GASB) and includes the report of the independent
certified public accounting firm, Maze and Associates Accountancy Corporation, who has issued an
unqualified ("clean") opinion on the City of San Rafael's financial statements for the fiscal year ended
June A, 2013.
The independent audit of the financial statements is part of a broader, federally mandated "Single Audit"
designed to meet the needs of federal grantor agencies. The standards governing Single Audit engagements
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 awards. These reports will be available in the City's separately issued Single Audit Report.
Responsibility for both the data accuracy, and the completeness and fairness of the presentation, rests with
management. 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 of San Rafael. 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 are in the Management's Discussion and Analysis document in the
financial section. 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 of San Rafael'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.
1400 FIFTH AVENUE • PO Box 151560 • SAN RAFAEL, CA 94915-1560
WWW. CITYOFSANRAFAEL.ORG
CAFR TRANSMITTAL LETTER
REPORTING ENTITY — PROFILE OF THE GOVERNMENT
The City of San Rafael is located 17 miles north of San Francisco in Marin County. Protected by its
Mediterranean like setting along the shores of the San Francisco Bay, the City enjoys a mild climate year
round. As the County seat, San Rafael is considered the commercial, financial, cultural and civic hub of
Marin County. Abundant recreational facilities are available in and around the City. The City's park and
recreational resources include 25 City parks, City and County open space, and China Camp State Park. San
Rafael is close to other attractions, including Muir Woods, Mount Tamalpais, four other State parks, as
well as San Francisco, Oakland and the 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. The mayor is elected separately to a four-year term. The City's land area is 22 square
miles, including 17 square miles of land and five of water and tidelands. San Rafael's population on
January 1, 2013 was 58,182, an increase of 0.3% from the January 1, 2012 population of 57,982.
Downtown San Rafael is the location of many community events, including May Madness Classic Car
Parade, a 26 week Farmers Market Festival on Thursday Nights, Second Friday Art Walks, Twilight
Criterium Bike Race, Mill Valley Film Festival, and the Winter Wonderland/Parade of Lights. San Rafael
is also the heart of the County's cultural activities with venues such as the Marin Center, Falkirk Cultural
Center, the Christopher B. Smith Film Center, and a host of diverse dining and entertainment venues.
Marin Center presents numerous ballets, concerts, speaking engagements, and the award winning Marin
County Fair. The Falkirk Cultural Center provides art exhibits and children's programming. The City is also
home to the distinguished Dominican University of California.
The City of San Rafael provides a full range of municipal services required by statute or charter, namely:
police and fire protection, construction and maintenance of streets, parks, storm drains and other
infrastructure, recreation, childcare, permits, planning, code enforcement, and a library system serving two
locations. The City performed certain infrastructure construction and economic development activities
through a separate Redevelopment Agency until its dissolution on February 1, 2012. The City of San
Rafael accepted the role of Successor Agency to the Redevelopment Agency per Council action on
January 3, 2012.
The City and California Municipal Finance Authority compose the San Rafael Joint Powers Financing
Authority, which was originally established by the City and former Redevelopment 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 Footnote No. 1 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 Footnote No. 12 in the CAFR.
vi
CAFR TRANSMITTAL LETTER
ECONONHC FACTORS
The City has a diversified economic base, which includes high-tech, fmancial, service -based, entertainment
and industrial businesses. Downtown San Rafael provides a mix of restaurants, retail stores and financial
institutions. The City's diversified economic base is also reflected in a diverse property tax base, which is
76% residential, 21% commercial and 3% industrial. The top 50 sales tax producers provide 56% of overall
sales tax revenues.
For fiscal year 2013-2014, sales tax is projected to increase over the prior year by approximately 6.5%, and
Transaction Use Tax (Measure S) is projected to increase by about 5%. Property -related taxes are projected
to increase by approximately 3%. On the November 2013 ballot there will be a measure (Measure E) to
extend the existing Transaction Use Tax and add an additional .25% to this tax for another 20 years. All
other revenues, including business tax, franchise tax, charges for services and permit fees are expected to
experience modest increases.
It is anticipated that economy will continue to grow during the upcoming year, but job gains will be limited.
The City has achieved significant progress by funding current year operating expenses without the use of
one-time revenues or reserves. However, the organization has deferred maintenance and capital
replacement for several years, and reduced its organizational capacity by approximately 20% over the past
six years.
Demographic Data
A sampling of demographic information is provided to give the user an understanding of the character and
diversity that make San Rafael an exceptional place to live and work.
0 Economic development organizations in San Rafael include the Downtown Business Improvement
District, Chamber of Commerce and the Marin Economic Forum.
0 The City of San Rafael is Marin county's largest employment base with 29,600 jobs in 2012.The City's
largest employers include Kaiser Permanente, Autodesk, Comcast, City of San Rafael, Safeway,
Macy's, MHN, Bradley Real Estate, Dominican University of California, and Guide Dogs for the Blind
El 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).
0 The top three sales tax categories in 2012 for San Rafael are as follows: 1. Autos and Transportation,
2. General Consumer Goods, 3. Building and Construction.
0 Several hotels and motels support tourism activity, led by 235 room facilities for both the Embassy
Suites and Four Points Sheraton. Citywide, the total number of hotel rooms is 803.
1E Home buying and apartment rentals continue to be an affordability challenge both in San Rafael and
Marin County. Rents for one bedroom apartments range from $1,00041,900, while two bedroom
apartments go for $1,500 to $2,950.
vii
CAFR TRANSMITTAL LETTER
Recent growth and economic vibrancy:
• Terrapin Crossroads, a food and entertainment venue, opened in 2012
• New Audi/VW dealership (49,995 sq. ft.), opened in October 2013
• New Nissan dealership (15,000 sq. ft), to open in 2014
• New Target store (137,000 sq. ft.) opened in October 2013
• TJ Maxx replaced Borders Books (20,000 sq. ft.), opened in 2012
• Completion a new 82 unit apartment building at 33 North
• Completion of a 24 unit townhouse complex at 1515 Lincoln Avenue
• Completion of a Station Area Plan for the Downtown and Civic Center SMART (Sonoma Marin
Area Rapid Transit) Station
• The San Rafael Pacifics, a minor league baseball team, began operations downtown in Albert Park
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 should
ensure that proper accounting data is collected so as to prepare reports in conformance with generally
accepted accounting principles.
Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding:
(1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of
financial records for preparing financial statements and maintaining accountability for assets. The concept
of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be
derived. All internal control evaluations occur within the above framework. It is management's belief that
the City's internal accounting controls adequately safeguard assets and provide reasonable assurance that
financial transactions are properly recorded.
The City develops a budget based upon City Council priorities and department objectives. The Finance
Department maintains a traditional line item budget by major function. Budget control is accomplished at
the functional or division level within each fund. This budget creates a comprehensive management and
fiscal system aimed at achieving the objectives of each operating level consistent with those that have been
set for the community by the City Council. Each department director is responsible for accomplishing goals
within his or her functional area and monitoring the use of his or her budget allocations consistent with
policies set by the City Council and monitored by the City Manager.
viii
CAFR TRANSMITTAL LETTER
ACKNOWLEDGMENTS
The preparation of this City-wide document would not have been possible without the assistance from each
of the City's departments. We would like to specifically call out the diligent, dedicated efforts of the
Finance Department's staff. Appreciation goes to Van Bach, Accounting Manager, Helen Yu, Senior
Accountant, and Carl Tregner, Accountant. These employees were instrumental in coordinating the annual
audit in a timely and professional manner. 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 second consecutive year that the City received the award.
Lastly, support by the Mayor and City Council Members, with an emphasis on community based guidance
and customer service, has allowed the Finance Department to bring professional level financial leadership
and management home to San Rafael.
Respectfully submitted,
Nancy Mackle
City Manager
lx
Mark Moses
Finance Director
CITY OF
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
Gary O. Phillips, Mayor
Barbara Heller, Vice Mayor
Damon Connolly, Council Member
Kate Colin, Council Member
Andrew Cuyugan McCullough, Council Member
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City Council and Staff
Citv Council
J
Gary O. Phillips, Mayor
Barbara Heller, Vice Mayor
Damon Connolly, Council Member
Kate Colin, Council Member
Andrew Cuyugan McCullough, Council Member
Elected Officials
Rob Epstein, City Attorney
Esther Beirne, City Clerk
Executive Team
Nancy Mackle, City Manager
Jim Schutz, Assistant City Manager
Anil Comelo, Human Resources Director
Paul Jensen, Community Development Director
Sarah Houghton, Library Director
Chris Gray, Fire Chief
Stephanie Lovette, Economic Development Director
Carlene McCart, Community Services Director
Mark Moses, Interim Finance Director
Nader Mansourian, Public Works Director
Diana Bishop, Chief of Police
Doris Toy, District Manager/ Engineer- SRSD
CAFR Team
Mark Moses, Interim Finance Director
Van Bach, Accounting Manager
Helen Yu, Senior Accountant
Carl Tregner, Accountant
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Glass Pumpkin Patch at Falkirk Culture Center
FINANCIAL SECTION
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MAZE
® &ASSOCIATES
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, the aggregate remaining fund information and the discretely presented
component unit of the City of San Rafael as of and for the year ended June 30, 2013, 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 financial statements of the San Rafael Sanitation District which is reported as a discretely
presented component unit. Those statements were audited by other auditors whose report has been
furnished to us, and our opinion, insofar as it relates to the amounts included for the District, is based
solely on the report of the other 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.
T 925.930.0902
Accountancy Corporation F 925.930.0135
3478 Buskirk Avenue, Suite 215 e maze@mazeassociates.com
Pleasant Hill, CA 94523 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, 2013, and the respective changes in
financial position and, where applicable, cash flows thereof and the respective budgetary comparisons
listed as part of the basic financial statements for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
Emphasis of Matters
Management adopted the provisions of the following Governmental Accounting Standards Board
Statements, which became effective during the year ended June 30, 2013 and had material effects on the
financial statements:
Statement 63 - Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources,
and Net Position. See note 8 to the financial statements for relevant disclosures.
The emphasis of these matters does not constitute a modification to our opinions.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management's
Discussion and Analysis, and budgetary comparison information for the General Fund, Traffic and
Housing Mitigation Fund, and Gas Tax 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 as a whole. 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.
2
The Supplementary Information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or
to the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the Supplementary
Information is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 18,
2013, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City's internal control
over financial reporting and compliance.
40
Pleasant Hill, Califo is
October 18, 2013
3
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CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
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, 2013. Please read it in conjunction with the basic financial statements and the
accompanying notes to those basic financial statements.
FINANCIAL HIGHLIGHTS
Government -wide:
• Net Position —The assets of the City exceeded its liabilities as of June 30, 2013 by $253.3 million.
• Activities — During the fiscal year the City's total revenues of $100.9 million were greater than expenses for
governmental and business -type activities of $88.4 million by $12.5 million.
• Changes in Net Position — The City's total net position increased by $12.5 million in fiscal year 2013. Net position
of governmental activities increased by $12.5 million, while net position of the business type activities increased by
$26 thousand.
Fund Level:
• Governmental Funds — Fund Balances- As of the close of fiscal year 2013, the City's governmental funds
reported combined ending fund balances of $39.6 million, an increase of $8.8 million from the prior year. Of
this total amount, $0.6 million is nonspendable, $20.8 million is restricted, $9.2 million is committed, and
$9.0 million is assigned.
• Governmental fund revenues were $94.1 million; an increase of $8.9 million from fiscal year 2012. This increase
was attributable to stronger General Fund, Traffic and Housing Mitigation, and Gas Tax revenue performance.
• Governmental fund expenditures increased by $5.1 million to $87.0 million in fiscal year 2013, from $81.9 million
in the prior year, due to expenditure increases in the General fund and Gas Tax fund.
• Enterprise fund financial results remained relatively flat in fiscal year 2013.
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
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.
Wi
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
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, sales and use taxes, user fees, interest income, franchise
fees, hotel taxes, business license and property transfer taxes, plus state and federal grants finance these activities.
Business -type Activities — The City charges fees to customers to cover the full costs of certain services it provides. The City's
Parking Services program is the City's sole business -type activity.
Discretely Presented Component Units - The government wide financial statements include not only the City itself (the
primary government), but also the San Rafael Sanitation District, a legally separate entity for which the City is financially
accountable. Financial information for the San Rafael Sanitation District is reported separately from the financial
information presented for the primary government.
The government -wide financial statements can be found on pages 23 through 25 of this report.
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 which are major funds, was established by 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 90 through 110
of this report.
Cel
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
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-four 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, Gas Tax, Traffic and Housing Mitigation, and Equipment Replacement. Data from the other thirty
governmental funds are combined into a single, aggregated presentation. The basic governmental fund financial
statements can be found on pages 28 through 31 of this report. Individual fund data for each of these non -major
governmental funds is provided in the form of combining statements on pages 90 through 110 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, workers compensation, general liability, and self-
insured dental program, and 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.
The basic proprietary fund financial statements can be found on pages 34 through 36 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 38 through 39 of this report.
VA
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CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
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 41 through 77 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, and traffic and
housing mitigation). 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 82 through 84 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Statement of Net Position
Net position is one indicator of the City's financial position. During this fiscal year, the net position of the City was
$240.1 million from Governmental Activities, and $13.2 million from Business -type Activities, for a total of $253.3
million. This represents an increase of $12.5 million from the prior year.
The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2013 and 2012.
Summary of Net Position
June 30, (in thousands)
Net Position:
Net investment in capital assets
Governmental Activities
Increase
Business -Type Activities
Increase
35,780
2013
2012
(Decrease)
2013
2012
(Decrease)
Current and other assets
$64,595
$64,476
$119
$2,774
$2,722
$52
Capital assets
193,223
195,680
(2,457)
16,924
17,096
(172)
Total assets
257,818
260,156
(2,338)
19,698
19,818
(120)
Current and other liabilities
5,294
10,915
(5,621)
422
337
85
Noncurrent liabilities
12,370
21,534
(9,164)
6,104
6,335
(231)
Total liabilities
17,664
32,449
(14,785)
6,526
6,672
(146)
Net Position:
Net investment in capital assets
193,223
192,361
862 10,670 10,650 20
Restricted
35,780
24,693
11,087 0
Unrestricted
11,151
10,652
499 2,502 2,496 6
Total net position
$240,154
$227,706
$12,448 $13,172 $13,146 $26
Current governmental liabilities decreased by approximately $5.6 million, primarily due to the retirement of a $6.0
million tax revenue anticipation note during fiscal year 2012-2013. The $9.2 million decrease in non-current,
governmental liabilities and $231K in business -type liabilities was largely due to the establishment of the OPEB trust,
which resulted in the recognition of $12.0 million in trust pre -funding when assets previously set aside were
transferred from the City to the trust.
8
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
The increase in total net position from fiscal year 2012 to fiscal year 2013 is chiefly attributable to positive general
fund operating results and the accumulation of funds for specific purposes (e.g., traffic and housing mitigation,
capital projects, equipment replacement, building maintenance, gas tax, etc.).
The net position in business -type activities, which reflects the activity of the Parking Services program, was
substantially unchanged, registering a $26 thousand increase from the previous year.
At June 30, 2013, the largest portion of net position, 81 percent, consisted of the City's net investment in capital
assets. 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, 14 percent, is subject to external restrictions, and their use is determined by those
restrictions whether legal or by covenant.
The remaining portion, 5 percent, is not subject to external restrictions, but may be assigned to reserves or other specified
funding needs.
Net Position as of June 30, 2013
Total - $253,326
(in thousands)
I
n res tri cted
5%
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
Statement of Activities - Governmental
The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ended June 30, 2013
and 2012:
Summary of Changes in Net Position
June 30, (in thousands)
General revenues:
Property taxes
Governmental Activities
Increase
(2,790)
2013
2012
(Decrease)
Revenues
Paramedic tax
3,805
3,807
Program revenues:
Transient occupancy tax
2,185
107
Charges for services
$27,031
$23,452
$3,579
Operating grants and contributions
405
3,158
927
Capital grants and contributions
5,877
2,706
3,171
Total program revenues
36,993
29,316
7,677
General revenues:
Property taxes
17,318
20,108
(2,790)
Sales taxes
24,262
22,356
1,906
Paramedic tax
3,805
3,807
(2)
Transient occupancy tax
2,185
107
318
Franchise tax
3,331
3,076
255
Business license tax
2,508
2,332
176
Other taxes
2,930
3,575
(645)
Investment earnings
992
205
787
Miscellaneous
2,581
543
2,038
Total general revenues
59,912
57,869
2,043
Transfers in
424
58
366
Total revenues and transfers
97,329
87,243
1006
Expenses
General government
10,203
10,171
32
Public safety
41,966
39,877
209
Public works and parks
17,695
17,423
272
Community/economic development
3,403
4,588
(1,185)
Culture and recreation
11,330
11,021
309
Interest on long-term debt
284
1,225
(941)
Total expenses
84,881
84,305
576
Transfers out
Total expenses and transfers
84,881
84,305
576
Extraordinary Items
Transfers to Successor Agency
28,926
(28,926)
Change in net position
$12,448
$31,864
$9,510
10
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
The City's governmental activities net position increased by $12.5 million, which represents a 5.5 percent increase from the
previous year. The most significant factor in this change was an increase in tax revenues.
Revenue highlights:
• Sales tax (including Triple Flip Backfill and Measure S transactions and use tax) increased by $1.9 million, an
8.5 percent increase compared to fiscal year 2012. Automobile sales contributed heavily to this trend.
Transient Occupancy Tax revenues increased by $319 thousand, or 17.1 percent, fueled by lower vacancy
rates coupled with higher room rates when compared to the previous year.
• Franchise tax increased by $255 thousand, or 8.3 percent. Revenues in this area were enhanced by a one-time
adjustment of $97 thousand relating to a distribution of funds collected for prior periods.
• Miscellaneous general revenues increased by $2.0 million due to one-time payments that included an RDA
loan repayment and other reimbursements totaling $605 thousand, and a legal fee reimbursement of $853
thousand.
• Charges for services increased by $3.6 million, or 15.3 percent. These charges included internal charges of
$1.6 million to fund building maintenance, $670 thousand for vehicle and equipment replacement, and $700
thousand for technology replacement, as well as $669 thousand in external, community development -related
charges.
11
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
The following charts display the City's governmental activities for fiscal year 2013, highlighting the proportionate elements
of the Revenue and Expenses by program.
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$56,339
Revenues by Source
Governmental Activities
Total - $96,905
(in thousands)
ton) el? 1;R1
31
$4,085
),877
N Charges for services ® Operating grants and contributions
7:a Capital grants and contributions ® Taxes
ri Investment earnings 1 4Miscellaneous
Expenses and Program Revenues
Governmental Activities
General Government Public Safety Public works and parks Community/economic Culture and recreation Interest on tong -term
development debt
■ Program Revenue N Expenses
12
CITY OF a. RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
Total expenses for governmental activities were $84.6 million (excluding interest on long-term debt of $284 thousand).
Program revenues offset total expenditures as follows:
® Those who directly benefited from programs contributed $27.0 million in charges for services.
® A total of $10.0 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 and other general revenues were
$47.9 million.
Functional expenses for the years ended June 30, 2013 were as follows:
Expenses by Function
For the fiscal year ended June 30, 2013 (in thousands)
Function
Amount
Percent of Total
General government
$10,203
12.0%
Public safety
41,966
49.5%
Public works and parks
17,695
20.9%
Community development
3,403
4.0%
Culture and recreation
11,330
13.3%
Interest on debt
284
0.3%
Total expenses
$84,881
100%
13
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
Statement of Activities — Business -type
Summary of Changes in Net Position
June 30, (in thousands)
Business -Type Activities Increase
2013 2012 (Decrease)
Revenues
Program revenues:
Charges for services $3,991 $3,901 $90
Total program revenues 3,991 3,901 90
General revenues:
Investment earnings
4
8
(4)
Total general revenues
4
8
(4)
Total revenues
3,995
3,909
86
Expenses
General government
3,545
3,446
99
Total expenses
3,545
3,446
99
Transfers out
424
58
366
Total expenses and transfers
3,969
3,504
465
Change in net position
$26
$405
($379)
Net position for business -type activities was $13.2 million, a $26 thousand increase from the prior fiscal year. Parking
services is the City's only business -type activity with income derived from program revenues of $4.0 million. Program
revenues include parking meter coin income of $1.2 million, and parking garage hourly parking income of $1.1 million.
Revenues also include parking and non -vehicle code fines totaling $1.7 million. Total expenses for parking services were
$3.5 million and transfers out to general fund and non -major governmental fund for support totaled $424 thousand during
fiscal year 2012-2013.
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 Defmitions." 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.
14
+CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
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 the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $39.6
million, an increase of $8.8 million from the prior year•, $0.6 million is nonspendable, $20.8 million is restricted, $9.2 million
is committed, and $9.0 million is assigned.
General Fund — The General Fund is the primary operating fund of the city.
General Fund — The fund balance of the General Fund as of June 30, 2013 was $3.8 million, a $1.0 million increase
from the prior year; $527 thousand is nonspendable, $801 thousand is committed, and $2.5 million is assigned. The
assigned portion of the balance includes $2.3 million for emergency and cash flow needs.
General Fund Budaetary HiAli6ts:
The original, adopted General Fund budget projected total revenue of $56.1 million and transfers in of $1.5 million for total
resources of $57.6 million. This budget appropriated expenditures of $56.2 million and transfers out of $1.4 million, for a
total of $57.6 million.
Actual revenues, at $60.0 million, exceeded the original budgeted revenues by $3.9 million. This positive performance was
driven by tax revenues (property tax, sales tax, transient occupancy tax) and payments from the Successor Agency for
obligations due to the general fund from the former Redevelopment Agency. In addition, actual transfers in of $3.1 million
exceeded budgeted transfers in by $1.6 million, primarily as a result of $1.5 million released from the general liability reserve
following a positive outcome from litigation.
Of the $5.5 million in additional resources, $4.5 million was allocated via additional appropriations during the year to
support long-term capital infrastructure, building repair and maintenance, technology, and unfunded retirement -related
liabilities. The remaining $1.0 million was added to the emergency and cash flow reserve.
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2013 (in thousands)
Adopted Budget
Revenues $56,120
Transfers in 1,485
Total resources 57,605
Expenditures
56,146
Transfers out
1,439
Total uses
57,585
Net Operating Results $20
Revised
Appropriations Final Results
$60,028
3,105
63,133
$59,256
57,762
4,338
4,338
63,594
62,100
$1,033
Gas Tax Fund — The City established this fund to manage its allocation of State gasoline taxes and local funding for street
maintenance projects. At June 30, 2013, the Gas Tax fund had a total fund balance of $6.1 million of which $3.9 million is
committed for construction projects approved by the City Council.
15
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
Equipment Replacement Fund — The City established this capital project fund to manage the replacement of vehicles and
equipment. At June 30, 2013, the Equipment Replacement fund had a total fund balance of $5.1 million.
Non -major Governmental Funds — The City's non -major funds are presented in the basic financial statements in the
aggregate. At June 30, 2013, non -major funds had a total fund balance of $12.2 million of which 52.5 percent ($6.4 million)
is legally restricted for specific purposes by external funding source providers and 35.3 percent ($4.3 million) is committed
for special purposes by the City Council. More information about these aggregated non -major funds can be found in the
combining statements which immediately follow the required supplementary information.
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in
more detail. As discussed in the business -type activities previously, the City's proprietary fund net position increased by
$26 thousand reflecting net operating results in the Parking Services fund.
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, 2013 amounts to
$210.1 million, net of accumulated depreciation of $142.5 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 total additions to the City's investment in capital assets for the current fiscal year was $4.8
million, offset by accumulated depreciation of $7.4 million, thereby equaling a net decrease of $2.6 million.
Major capital asset additions during the current fiscal year included work in process such as Mahon Creek Path -Transit
Center Connector, Pt. San Pedro Median Landscaping, Canal Lifeline Phase H, and Grand Ave. Pedestrian Bicycle (Bay
Trail).
Capital Projects
➢ City Hall HVAC Upgrades project was completed in 2013
➢ Dominican/Black Canyon Landscape project was completed in 2013
➢ Traffic Signal Cabinet & Controller Upgrades project was completed in 2013
➢ Safe Routes to School- Belle Ave. project was completed in 2013
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CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
The City's Capital Assets for the fiscal year 2013 and 2012 were as follows:
Summary of Capital Assets
June 30, (in thousands)
Business -type Activities
Land
2013
2012
Governmental Activities
10,328
10,235
Land
$82,464
$82,464
Construction in progress
2,548
1,173
Land improvements
8,789
8,581
Buildings and structures
40,321
38,856
Machinery and equipment
16,921
16,604
Infrastructure
181,556
181,198
Less accumulated depreciation
(139,376)
(133,196)
Subtotal Governmental Activities
193,223
195,680
Business -type Activities
Land
8,621
8,621
Buildings and structures
10,328
10,235
Machinery and equipment
1,139
1,097
Less accumulated depreciation
(3,164)
(2,857)
Subtotal Business -type Activities
16,924
17,096
Total Capital Assets
$210,147
$212,776
Additional information on the City's capital assets can be found in Note 5 on pages 55 through 57 of this report.
17
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
Debt Administration
The City's debt is discussed in more detail in Note 6 to the financial statements. The debt of the former Redevelopment
Agency is now reported under the Successor Agency, which is presented as Private Purpose Trust Fund on the Statement of
Fiduciary Net Position. See Note 15 to the financial statements for additional information. The City's long-term obligations
for the fiscal years 2013 and 2012 were as follows:
Summary of Long -Term Debt
June 30, (in thousands)
2013 2012
Governmental Activity Debt:
2010 Taxable Pension Obligation Bonds $4,490 $4,490
Ground Lease Note Payable 169 169
Subtotal Governmental Activity Debt 4,659 4,659
Business -type Debt:
2003 Authority Lease Revenue Bonds 6,445
2012 Authority Lease Revenue refunding Bonds 6,254
Subtotal Business -type Debt 6,254 6,445
Total Long -Term Obligations $10,913 $11,104
18
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
1 9 W10 a l *: r• �r:� . i��e
The nation is finally emerging from the longest, deepest recession since the Great Depression of the 1930s. Beacon
Economics is expecting the U.S. economy to grow by 3 percent through 2013, with continued lowering of the unemployment
rate. This optimism is partly driven by a resurgent housing market. Overall, the national economy is on the mend, but there
are many longer-term issues the nation must address, including working through changes to the national healthcare system,
long-term underemployment and unemployment, and resolving fundamental issues related to underfunded federal
entitlements and state and local pensions.
California is likewise headed down the road toward economic recovery. Slightly more than half of the jobs lost during the
downturn have been recovered, and almost every major indicator is showing improvement. Real estate has been one of the
major shifts in California's economy over the past 12 months — transitioning from being a drag on the recovery to becoming
a driver of growth in the state, with the median price of an existing single-family home up 26 percent. Unlike many states
that were hit hard by the mortgage market crash, California continues to maintain one of the lowest overall housing vacancy
rates in the nation — a positive sign for future homebuilding. In addition, tourism continues to be a force to be reckoned with
in California. With over 70 percent occupancy entering fiscal year 2013-2014, California's hotel occupancy rate well
exceeds the 62 percent occupancy rate nationwide.
The instability of the State budget continues to be a threat to local governments. However, the State's fiscal year 2013-2014
budget reflects a significant improvement in the State's finances due, according to the State Legislative Analyst's Office
(LAO), "to the economic recovery, prior budgetary restraint, and voters' approval of temporary tax increases." The LAO
believes the State has reached a point where its underlying expenditures and revenues are roughly in balance. There are still
significant risks to revenue estimates given uncertainty surrounding federal fiscal policy and the volatility inherent in the
State's revenue system. The State will still have no sizable reserve at the end of fiscal year 2016-2017, and will not have
begun the process of addressing high unfunded liabilities associated with the teachers' retirement system and State retiree
health benefits.
With the exception of some continuing employee concessions, the City's general fund budget for fiscal year 2013-2014
marks the first year in over a decade that short-term strategies (e.g., one-time reductions in contributions to capital
replacement funds, delayed hiring, uses of reserves and borrowed funds, etc.) have not been employed to balance the
budget.
The projected trends for sales tax and transactions and use tax (Measure S), which combined represent the City's biggest tax
revenue generators, are for continued growth. For fiscal year 2013-2014, sales tax is projected to increase by 6.5 percent and
transactions and use tax (Measure S) is projected to increase by about 5 percent.
The City's second largest tax generator is property tax. The City is expecting the fiscal year 2013-2014 tax roll to increase by
approximately three percent over the previous year. This is the first increase of more than one percent in the secured tax rolls
for more than five years.
The City's largest expenditure relates to personnel costs. Salaries and benefits are tied to the labor agreements with each
bargaining group. Most labor units are on a one-year contract that expires on June 30, 2014. The exception is SEIU,
which has a two-year agreement that expires on June 30, 2015.
19
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2013
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, 1400 Fifth Avenue, Room 204, San Rafael,
California 94901.
20
CITY OF SAN RAFAEL l
STATEMENT OF NET POSITION AND
STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City's financial
activities and financial position. They are also referred to as Government -wide financial statements.
The Statement of Net Position reports the difference between the City's total assets and the City's total
liabilities, including all the City's capital assets and all its long-term debt. The Statement of Net Position
focuses the reader on the composition of the City's net position, by subtracting total liabilities from total
assets.
The Statement of Net Position summarizes the financial position of all of the City's Governmental
Activities in a single column, and the financial position of all the City's Business -type Activities in a single
column; these columns are followed by a total column which presents the financial position of the entire
City.
The City's Governmental Activities include the activities of its General Fund, along with all its Special
Revenue, Capital Projects and Debt Service Funds. Since the City's Internal Service Funds service these
Funds, their activities are consolidated with Governmental Activities, after eliminating inter -fund
transactions and balances. The City's Business -type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City's net position. It is also prepared on
the full accrual basis, which means it includes all the City's revenues and all its expenses, regardless of
when cash changes hands. This differs from the "modified accrual" basis used in the Fund financial
statements, which reflect only current assets, current liabilities, available revenues and measurable
expenditures.
The Statement of Activities presents the City's expenses first, listed by program, and follows these with
the expenses of its business -type activities. Program revenues - that is, revenues which are generated
directly by these programs - are then deducted from program expenses to arrive at the net expense of
each governmental and Business -type program. The City's general revenues are then listed in the
Governmental Activities or Business -type Activities column, as appropriate, and the Change in Net
Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City and the San Rafael Joint Powers
Financing Authority which are legally separate but are considered to be component units of the City
because they are controlled by the City, which is financially accountable for their activities. The
balances and the activities of the San Rafael Sanitation District, a discretely presented component unit,
are included in these statements in a separate column.
21
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
STATEMENT OF NET POSITION
JUNE 309 2013
NET POSITION (Note 8):
Net investment in capital assets
193,222,791 10,670,190
203,892,981 33,340,892
Restricted for:
Component
Special revenue projects
28,085,574
28,085,574
Unit
7,529,594
7,529,594
Primary Government
165,244
San Rafael
Total Restricted Net Position
Governmental
Business -type
Unrestricted
Sanitation
13,652,816 18,575,184
Activities
Activities
Total
District
ASSETS
Cash and investments available for operations (Note 2)
$46,275,269
$2,741,909
$49,017,178
$18,916,657
Restricted cash and investments (Note 2)
76,285
76,285
Receivables:
Accounts
4,016,536
24,862
4,041,398
18,053
Taxes
4,534,162
4,534,162
Grants
641,871
641,871
Interest
54,261
54,261
Loans (Note 4)
1,189,576
1,189,576
Long-term receivable from the Successor Agency (Note 15)
2,160,210
2,160,210
Prepaid expenses and others
134,914
6,879
141,793
143,722
Net Pension asset (Note 9C)
1,000,000
1,000,000
Net OPEB asset (Note 11)
4,512,141
4,512,141
Capital assets (Note 5):
Nondepreciable
85,011,974
8,620,853
93,632,827
360,049
Depreciable, net
108,210,817
8,303,353
116,514,170
32,980,843
Total Assets
257,818,016
19,697,856
277,515,872
52,419,324
LIABILITIES
Accounts payable
2,252,754
110,416
2,363,170
5031248
Deposits payable
100,768
100,768
Interest payable
42,943
52,822
95,765
Developer bonds payable
321,766
321,766
Interest payable
Unearned revenue
103,034
103,034
Claims payable (Note 13):
Due in one year
1,939,300
1,939,300
Due in more than one year
3,976,049
3,976,049
Compensated absences (Note 1J):
Due in one year
533,485
13,614
547,099
Due in more than one year
3,734,396
95,300
3,829,696
Long-term debt (Note 6):
Due in one year
245,000
245,000
Due in more than one year
4,659,000
6,009,016
10,668,016
Total Liabilities
17,663,495
6,526,168
24,189,663
503,248
NET POSITION (Note 8):
Net investment in capital assets
193,222,791 10,670,190
203,892,981 33,340,892
Restricted for:
Special revenue projects
28,085,574
28,085,574
Capital projects
7,529,594
7,529,594
Debt service
165,244
165,244
Total Restricted Net Position
35,780,412
35,780,412
Unrestricted
11,151,318 2,501,498
13,652,816 18,575,184
Total Net Position
$240,154,521 $13,171,688
$253,326,209 $51,916,076
See accompanying notes to financial statements
23
CITY OF SAN RAFAEL
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2013
General revenues:
Taxes:
Property
Sales
Paramedic
Transient occupancy
Franchise
Business license
Other
Investment earnings
Miscellaneous
Aid from other governmental agencies
Transfers (Note 3C)
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
o
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Functions/Programs
Expenses
Services
Contributions
Contributions
Primary Government
Governmental Activities:
General government
$10,202,530
$2,655,749
$389,325
Public safety
41,966,065
6,478,321
726,058
$394,289
Public works and parks
17,695,164
7,837,472
2,630,588
5,482,704
Community development
3,403,158
3,984,204
36,400
Culture and recreation
11,330,058
6,075,129
302,702
Interest on long-term debt and fiscal charges
283,805
Total Governmental Activities
84,880,780
27,030,875
4,085,073
5,876,993
Business -type Activities
Parking services
3,545,387
3,990,706
Total Business -type Activities
3,545,387
3,990,706
Total Primary Government
$88,426,167
$31,021,581
$4,085,073
$5,876,993
Component Unit
San Rafael Sanitation District
$10,169,082
$12,413,123
General revenues:
Taxes:
Property
Sales
Paramedic
Transient occupancy
Franchise
Business license
Other
Investment earnings
Miscellaneous
Aid from other governmental agencies
Transfers (Note 3C)
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
o
Net (Expenses) Revenues and Changes in Net Position
Component
Primary Government
Unit
445,319
San Rafael
Governmental Business -type
Sanitation
Activities Activities
Total District
($7,157,456)
($7,157,456)
(34,367,397)
(34,367,397)
(1,744,400)
(1,744,400)
617,446
617,446
(4,952,227)
(4,952,227)
(283,805)
(283,805)
(47,887,839) (47,887,839)
25
$445,319
445,319
445,319
445,319
(47,887,839)
445,319
(47,442,520)
$2,244,041
17,317,772
17,317,772
1,177,469
24,262,282
24,262,282
3,804,985
3,804,985
2,185,287
2,185,287
3,331,160
3,331,160
2,507,785
2,507,785
2,929,915
2,929,915
991,762
3,739
995,501
25,591
2,580,882
2,580,882
56,589
423,817
(423,817)
60,335,647
(420,078)
59,915,569
1,259,649
12,447,808
25,241
12,473,049
3,503,690
227,706,713
13,146,447
240,853,160
48,412,386
$240,154,521
$13,171,688
$253,326,209
$51,916,076
25
This Page Left Intentionally Blank
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 2012-2013.
DU\�`111
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.
EQUIPMENT REPLACEMENT CAPITAL PROJECTS FUND
Established to provide for the replacement of vehicles and equipment.
27
ASSETS
Cash and investments available for operations (Note 2)
Restricted cash and investments (Note 2)
Receivables:
Accounts
Taxes
Grants
Interest
Loans (Note 4)
Long-term receivable from the
Successor Agency (Note 15)
Prepaids
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Deposits payable
Developer bonds payable
Due to other funds (Note 3)
Deferred revenue
Total Liabilities
Fund Balances (Note 8):
Nonspendable
Restricted
Committed
Assigned
Total Fund Balances
Total Liabilities and Fund Balances
CITY OF SAN RAFAEL
GOVERNMENTALFUNDS
BALANCE SHEET
JUNE 30, 2013
Capital
Special Revenue Funds Projects Fund
Traffic and Other Total
Housing Equipment Governmental Governmental
General Mitigation Gas Tax Replacement Funds Funds
$12,382,897 $5,873,321
$2,848,696
66,367
4,292,861
118,676
5,913 714,143
214,695
54,261
4,534,162
451,453
57,144
2,160,210
54,261
75,782
1,189,576
$9,883,263
$12,440,041 $6,273,059
$5,193,343 $11,319,984
$34,769,545
76,285
76,285
5,913 714,143
3,635,119
122,625
4,534,162
427,176
641,871
43,317
54,261
680,979
1,189,576
2,160,210
6,215 45,306
127,303
$5,205,471 $13,386,498 $47,188,332
$959,179
$166,560
$139,553
$881,163
$2,146,455
57,451
43,317
100,768
320,266
1,500
321,766
748,239
748,239
3,993,341
292,564
4,285,905
6,078,476
166,560
139,553
1,218,544
7,603,133
527,235
6,215
45,306
578,756
$12,140,041
2,232,975
6,396,530
20,769,546
800,876
300,000
3,873,524
4,273,971
9,248,371
2,476,676
5,059,703
1,452,147
8,988,526
3,804,787
12,440,041
6,106,499
5,065,918
12,167,954
39,585,199
$9,883,263
$12,440,041
$6,273,059
$5,205,471
$13,386,498
$47,188,332
See accompanying notes to basic financial
statements
28
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2013
Total fund balances reported on the governmental funds balance sheet $39,585,199
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. 193,222,791
Internal service funds are used by management to charge the cost of management of
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. 12,133,484
Interest payable on long-term debt does not require the use of current financial
resources and, therefore, are not reported in the Governmental Funds. (42,943)
Long-term liabilities, including bonds payable, are not due and payable in the current
period and, therefore, are not reported in the Governmental Funds. (4,659,000)
Compensated absences (4,267,881)
Deferred revenue 4,182,871
Net position of governmental activities $240,154,521
See accompanying notes to financial statements
29
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2013
REVENUES
Taxes and special assessments
Licenses and permits
Fines and forfeitures
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Community development
Culture and recreation
Capital outlay
Capital improvement / special projects
Debt service:
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in (Note 313)
Transfers out (Note 313)
Total Other Financing Sources (Uses)
Net Change in Fund Balances
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
$46,670,007
1,929,387
734,005
228,565
6,475,596
2,079,265
1,910,686
60,027,511
9,087,723
33,987,636
8,875,111
2,961,275
2,200,468
170,138
194,425
283,805
57,760,581
$17,226 $7,366
3,305,466
3,096,328 1,031,919
53,993
3,113,554 4,398,744
74,609 30,084
428,230
1,641,022
Capital
Special Revenue Funds
Projects Fund
Traffic and
Other Total
Housing
Equipment Governmental Governmental
General Mitigation Gas Tax
Replacement Funds Funds
$46,670,007
1,929,387
734,005
228,565
6,475,596
2,079,265
1,910,686
60,027,511
9,087,723
33,987,636
8,875,111
2,961,275
2,200,468
170,138
194,425
283,805
57,760,581
$17,226 $7,366
3,305,466
3,096,328 1,031,919
53,993
3,113,554 4,398,744
74,609 30,084
428,230
1,641,022
3,077,558 23,458,048 94,075,415
492,597
1,132,192
1,441,757
7,389,426
3,022,644
8,390,589
2,918,489
2,317,081
74,609 2,099,336 1,624,789 25,479,986
10,529,480
41,377,062
12,002,448
2,961,275
10,591,057
4,009,454
5,284,720
283,805
87,039,301
2,266,930
$4,879,299
$51,549,306
1,452,769
(2,021,938)
1,929,387
3,104,622
734,005
$5,327
66,559
325,043
329,316
1,759,511
11,869,889
2,670,927
14,696,935
23,575,374
71,988
2,055,744
4,092,411
3,077,558 23,458,048 94,075,415
492,597
1,132,192
1,441,757
7,389,426
3,022,644
8,390,589
2,918,489
2,317,081
74,609 2,099,336 1,624,789 25,479,986
10,529,480
41,377,062
12,002,448
2,961,275
10,591,057
4,009,454
5,284,720
283,805
87,039,301
2,266,930
3,038,945
2,299,408
1,452,769
(2,021,938)
7,036,114
3,104,622
365
5,320,487
8,425,474
(4,338,227)
(674,521)
(1,698,909)
(6,711,657)
(1,233,605)
(674,156)
3,621,578
1,713,817
1,033,325
3,038,945
1,625,252
1,452,769
1,599,640
8,749,931
2,771,462
9,401,096
4,481,247
3,613,149
10,568,314
30,835,268
$3,804,787
$12,440,041
$6,106,499
$5,065,918
$12,167,954
$39,585,199
See accompanying notes to financial statements
30
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, 2013
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $8,749,931
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 capital projects expenditures are therefore added back to fund balance 9,294,174
Non -capitalized capital outlay expenditures were reclassified to various governmental activities (4,611,188)
Depreciation expense is deducted from the fund balance (7,124,286)
Loss on retirement of capital assets is deducted from the fund balance (15,539)
Accrual of Non -Current Items
The amount below included in the Statement of Activities does not require the use of current financial resources
and therefore is not reported as revenue or expenditures in governmental funds (net change):
Interest payable 183,011
Compensated absences 107,322
Deferred revenue 1,962,295
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. 3,902,088
Change in Net Position of Governmental Activities $12,447,808
See accompanying notes to financial statements
31
This Page Left Intentionally Blank
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.
171:3:11MM-104 � .y �liJ►`117
Established to maintain parking garages, lots and spaces in the Downtown Parking District, and to pay
for parking enforcement and meter collection.
33
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2013
34
Business -type
Activities -
Governmental
Enterprise Funds
Activities
Parking
Internal
Services
Service Funds
ASSETS
Current Assets:
Cash and investments available for operations (Note 2)
$2,710,360
$11,537,273
Accounts receivable
24,862
381,417
Due from other funds (Note 3)
748,239
Prepaids
6,879
7,611
Net Pension Asset (Note 9)
1,000,000
Net OPEB Asset (Note 11)
4,512,141
Total Current Assets
2,742,101
18,186,681
Noncurrent Assets:
Capital assets (Note 5):
Nondepreciable
8,620,853
Depreciable, net
8,303,353
Total Noncurrent Assets
16,924,206
Total Assets
19,666,307
18,186,681
LIABILITIES
Current Liabilities:
Accounts payable
110,416
106,299
Interest payable
52,822
Compensated absences, due in one year (Note 1J)
13,614
Claims payable, due in one year (Note 13)
1,939,300
Long-term debt, due in one year (Note 6)
245,000
Total Current Liabilities
421,852
2,045,599
Noncurrent Liabilities:
Compensated absences (Note 1J)
95,300
Claims payable (Note 13)
3,976,049
Long-term debt (Note 6)
6,009,016
Total Noncurrent Liabilities
6,104,316
3,976,049
Total Liabilities
6,526,168
6,021,648
NET POSITION (Note 8):
Net investment in capital assets
10,670,190
Restricted
5,512,141
Unrestricted
2,469,949
6,652,892
Total Net Position
13,140,139
$12,165,033
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.
31,549
Net position business -type activities
$13,171,688
See accompanying notes to financial statements
34
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2013
OPERATING REVENUES
Charges for current services
Other operating revenues
Total Operating Revenues
OPERATING EXPENSES
Personnel
Insurance premiums and claims
Maintenance and repairs
Depreciation (Note 5)
General and administrative
Total Operating Expenses
Operating Income
NONOPERATING REVENUES (EXPENSES)
Investment income
Interest expense
Total Nonoperating Revenues (Expenses)
Income Before Transfers
Transfers in (Note 3B)
Transfers out (Note 3B)
Change in Net Position
NET POSITION, BEGINNING OF YEAR
NET POSITION, END OF YEAR
* Reconciliation of the Change in Net Position with the Statement of Activities
Change in Net Position
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.
Change in Net Position of Business -type Activities
See accompanying notes to financial statements
35
Business -type
Activities -
Enterprise Funds
Parking
Services
$2,277,771
1,712,935
3,990,706
2,101,937
32,253
323,076
836,048
3,293,314
697,392
3,739
(240,012)
(236,273)
461,119
(423,817)
37,302
13,102,837
$13,140,139
$37,302
(12,061)
$25,241
Governmental
Activities
Internal
Service Funds
$8,635,073
1,135,735
9,770,808
4,315,160
199,484
943,198
5,457,842
4,312,966
867,061
867,061
5,180,027
1,879,113
(3,169,113)
3,890,027
8,275,006
$12,165,033
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30,
2013
Business -type
Activities -
Enterprise Funds
Parking
Services
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds
$2,277,771
Cash payments to suppliers for goods and services
(828,630)
Cash payments to employees
(2,079,056)
Other operating revenues
1,708,997
Payment to Pension Trust
Payment to OPEB Trust
Cash Flows from Operating Activities
1,079,082
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts (payments)
(423,817)
Cash Flows from Noncapital
Financing Activities
(423,817)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal payments on revenue bonds
(190,984)
Interest expenses and fiscal charges
(263,875)
Acquisition of capital assets
(151,724)
Cash Flows from Capital and
Related Financing Activities
(606,583)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income
3,739
Proceeds from sale of investments
Cash Flows from Investing Activities
3,739
NET INCREASE IN CASH AND CASH EQUIVALENTS
52,421
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
2,657,939
CASH AND CASH EQUIVALENTS, END OF YEAR
$2,710,360
Reconciliation of operating income to net cash
provided by operating activities:
Operating income
$697,392
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation
323,076
Net change in assets and liabilities:
Accounts receivable
(3,938)
Prepaids and deposits
(6,879)
Net Pension Asset
Net OPEB Asset
Accounts payable
46,550
Compensated absence obligations
22,881
Claims payable
Net Cash Provided by Operating Activities
$1,079,082
See accompanying notes to basic financial statements
36
Governmental
Activities
Internal
Service Funds
$8,326,594
(6,784,394)
1,135,735
(1,000,000)
(4,512,141)
(2,834,206)
(2,038,239)
(2,038,239)
867,061
3,584,164
4,451,225
(421,220)
11,958,493
$11,537,273
$4,312,966
(308,479)
(7,611)
(1,000,000)
(4,512,141)
65,072
(1,384,013)
($2,834,206)
. .FIDUCIARY FUND FINANCIAL
STATEMENTS I
Fiduciary funds are used to account for assets held by the City as an agent or custodian for other entities.
The fmancial 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.
37
CITY OF SAN RAFAEL
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2013
Total Assets $6,280,077 $302,064
LIABILITIES
Accounts payable
Successor Agency
Interest payable
to the
Other long-term obligations (Note 15D)
Redevelopment
Long-term debt (Note 15C):
Agency
Due within one year
Private -Purpose Agency
Due more than one year
Trust Fund Funds
ASSETS
31,344,339 302,064
Cash and investments (Note 2)
$1,340,802
Cash and investments with fiscal agent (Note 2)
1,375,048 $300,578
Receivable:
Taxes
3,563,575 1,486
Interest
517
Prepaids
135
Total Assets $6,280,077 $302,064
LIABILITIES
Accounts payable
$1,856
Interest payable
255,838
Other long-term obligations (Note 15D)
2,160,210
Long-term debt (Note 15C):
Due within one year
2,540,000
Due more than one year
26,386,435 $302,064
Total Liabilities
31,344,339 302,064
NET POSITION (DEFICIT):
Held in trust for private purpose
($25,064,262)
See accompanying notes to financial statements
38
CITY OF SAN RAFAEL
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2013
Successor Agency
to the
Redevelopment Agency
Private -Purpose
Trust Fund
ADDITIONS
Property taxes
$7,128,844
Use of money and property
2,700
Bond premium
79,860
Other revenue
1,134,711
Total Additions 8,346,115
DEDUCTIONS
General government 667,721
Interest expense 1,416,768
Total Deductions 2,084,489
Change in Net Position 6,261,626
SPECIAL ITEM (Note 15)
Liability assumed by the Successor Agency (2,406,431)
NET POSITION HELD IN TRUST FUND
FOR OTI ER PURPOSES
Beginning of year (28,919,457)
End of year ($25,064,262)
See accompanying notes to financial statements
W
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
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.
As of June 30, 2013, the Authority had no assets or liabilities to report. For the fiscal year ended
June 305 2013, the Authority had no revenues or expenditures to report. 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 City contracts with
the District to maintain the collection systems in the City and unincorporated areas.
The District is governed by a three-member Board of Directors who are appointed to four-year
terms. The City Council of the City appoints two out of the three board members and has the ability
to remove the two board members at will.
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.
41
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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-maj or 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.
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.
42
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ( Continued)
Gas Tax Special Revenue Fund - Established to receive and expend the City's allocation of the
State gasoline taxes.
Equipment Replacement Capital Projects Fund — Established to provide for the replacement
of vehicles and equipment.
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, employee benefits,
liability insurance, workers' compensation, dental insurance, pension plan reserve, and retiree
health (OPEB).
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. Fiduciary funds are
custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
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. 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.
43
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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. 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 Grants Special Revenue Fund, capital
projects funds and the Peacock Gap Assessment District Debt Service Fund. Appropriations and
spending authorizations for projects in the capital projects funds and some special revenue funds
are approved by the City Council on a multi-year basis. From the effective date of the budget,
which is adopted at the department level, the amounts stated therein as proposed expenditures
become appropriations to the various City departments. The City Council may amend the budget
by resolution during the fiscal year in order to respond to emerging needs, changes in resources, or
shifting priorities. Expenditures may not exceed appropriations at the fund level, which is the legal
level of control. The City Manager is authorized to transfer budgeted amounts between accounts,
departments or funds; the Council must approve any increase in the City's operating expenditures
as well as any appropriations for capital projects.
Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles for the
General Fund and Special Revenue Funds.
44
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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. Encumbrances outstanding at year-end are reported as a reservation of fund balances since
they do not constitute expenditures or liabilities and are carried forward in the subsequent year's
budget. All unencumbered appropriations lapse at year end.
H. 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.
I Capital Assets
All capital assets are valued at historical cost or estimated historical cost if actual historical cost
is not available. Contributed capital assets are valued at their estimated fair market value on the
date contributed.
The City has included the value of all infrastructure capital assets into its Basic Financial
Statements using the Basic Approach for infrastructure reporting.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase is reflected in the capitalized value of the asset
constructed, net of interest earned on the invested proceeds over the same period.
Capital assets, excluding infrastructure, are recorded if acquisition or construction costs exceeds
$5,000. The similar threshold for infrastructure is $25,000.
Depreciation is provided using the straight-line method which means the cost of the asset is divided
by its expected useful life in years and the result is charged to expense each year until the asset is
fully depreciated. The purpose of depreciation is to spread the cost of capital assets equitably
among all users over the life of these assets. The amount charged to depreciation expense each year
represents that year's pro rata share of the cost of capital assets.
The City has assigned the useful lives listed below to capital assets:
Buildings, improvements, and structures 20 — 50 years
Machinery and equipment 4 — 20 years
Infrastructure 15 — 50 years
MR
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I
J. 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 fmancial 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:
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)
46
Governmental Business -Type
Activities
Activities
Total
Beginning Balance
$4,375,203
$86,033
$4,461,236
Additions
3,389,844
134,534
3,524,378
Payments
(3,497,166)
(111,653)
(3,608,819)
Ending Balance
$4,267,881
$108,914
$4,376,795
Current Portion
$533,485
$13,614
$547,099
K. Property Tax Levy, Collection and
Maximum Rates
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)
46
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I
The term "unsecured" refers to taxes on personal property other than land and buildings. These
taxes are secured by liens on the property being taxed.
Property taxes are levied and recorded as revenue when received in the fiscal year of levy because
of the adoption of the "alternate method of property tax distribution," known as the Teeter Plan, by
the City and the County of Marin. The Teeter Plan authorized the auditor -controller of the County
of Marin to allocate 100% of the secured property taxes billed, but not yet paid. The County of
Marin remits tax monies to the City in three installments, as follows:
55% remitted on December 15
40% remitted on April 15
5% remitted on June 15
L. 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.
M. New Funds
The Measure A Open Space Special Revenue Fund was 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 -finding for the operation or maintenance of open space, park or recreation
lands.
The Pt. San Pedro Road Assessment District Agency Fund was established to accumulate funds
for payment of principal and interest for Pt. San Pedro Road Median Landscaping Assessment
District bonds.
NOTE 2 -CASH AND INVESTMENTS
The City's goal is to invest at the maximum yield, consistent with safety and liquidity.
A. Policies
The City invests in individual investments and in investment pools. Individual investments are
evidenced by specific identifiable securities instruments, or by an electronic entry registering the
owner in the records of the institution issuing the security, called the book entry system. In order to
increase security, the City employs the Trust Department of a bank as the custodian of certain City
managed investments, regardless of their form.
California Law requires banks and savings and loan institutions to pledge government securities
with a market value of 110% of the City's cash on deposit, or first trust deed mortgage notes with a
market value of 150% of the deposit, as collateral for these deposits. Under California Law this
collateral is held in a separate investment pool by another institution in the City's name and places
the City ahead of general creditors of the institution.
47
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 2 -CASH AND INVESTMENTS (Continued)
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, 2013, 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.
Financial Statement Presentation:
Statement of Net Position:
City of San Rafael:
Cash and investments available for operations $49,017,178
Restricted cash and investments 76,285
Total Primary Government Cash and Investments 49,093,463
San Rafael Sanitation District (Component Unit)
Cash and investments available for operations 18,916,657
Total San Rafael Sanitation District cash and Investments 18,916,657
Statement of Fiduciary Net Position (separate statement):
Successor Agency to the Redevelopment Agency:
Cash and investments available for operations
1,340,802
Restricted Cash and investments
1,375,048
Total Successor Agency Cash and Investments
2,715,850
Pt. San Pedro Road Assessment District Agency Fund
300,578
Total Fiduciary Cash and Investments
3,016,428
Total Cash and Investments
$71,026,548
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.
48
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 2 - CASH AND INVESTMENTS (Continued) N
C. Investments Authorized by the California Government Code and the City's Investment Policy
The City's investment policy and the California Government Code allow the City to invest in the
following provided the credit ratings of the issuers are acceptable to the City; and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of
the California Government Code, or the City's Investment Policy where it is more restrictive:
The San Rafael Sanitation District adopted the investment policy of the Treasurer and Tax
Collector of the County of Marin. Accordingly, the District, following the County, may invest in
U.S. Treasury and agency securities, commercial papers, bankers' acceptances, time deposits,
repurchase agreements, and the State of California LAW. The District, additionally, may invest
in the Marin County Investment Pool. At year-end, the District's investments were in
compliance with the above provisions.
49
Minimum
Maximum
Maximum
Maximum
Credit
Percentage of
Investment in
Authorized Investment Type
Maturity
Quality
Portfolio
One Issuer
U.S. Government Obligation
5 years
No limit
No limit
U.S. Agency Securities and
5 years
AAA
No limit
No limit
Instruments
Repurchase Agreements
1 year
A-1
No limit
No limit
Prime Commercial Paper
270 days
A-1
25%
$1,000,000
Bankers' Acceptances
180 days
A-1
40%
$2,000,000
Medium -Term Corporate Notes
5 years
A
30%
$11,0001000
Negotiable Certificates of Deposit
5 years
AA
30%
No limit
Non-negotiable Certificates
180 days
N/A
No limit
No limit
of Deposit
Local Agency Investment Fund
N/A
N/A
N/A
N/A
Money Market Mutual Funds
N/A
AAA
10%
N/A
Limited Obligation Improvement
30 years
N/A
N/A
N/A
Bonds related to Special
Assessment Districts and
Special Tax Districts
The San Rafael Sanitation District adopted the investment policy of the Treasurer and Tax
Collector of the County of Marin. Accordingly, the District, following the County, may invest in
U.S. Treasury and agency securities, commercial papers, bankers' acceptances, time deposits,
repurchase agreements, and the State of California LAW. The District, additionally, may invest
in the Marin County Investment Pool. At year-end, the District's investments were in
compliance with the above provisions.
49
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 2 - CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City and the Successor Agency to the Redevelopment Agency 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:
Local Agency Investment Fund N/A N/A N/A
(A) Guaranteed Investment Contracts must be fully collateralized with U.S. Treasury Obligations or
U.S. Agency Obligations.
a
Maximum
Maximum
Minimum Credit
Percentage of
Authorized Investment Type
Maturity
Quality
Portfolio
5 years to no
U.S. Treasury Obligations
maximum
N/A
No Limit
U.S. Agency Securities
3- 5 years
N/A
No Limit
U.S. Agency Instruments
5 years
AAA
No Limit
Repurchase Agreements
1 year
A-1
No limit
Category
Bankers' Acceptances
360 days
Highest Rating
No Limit
Category
Money Market Funds
N/A
Highest Rating
No Limit
Category
Prime Commercial Paper
270 days
Highest Rating
No Limit
Guaranteed Investment Contracts
Category
(fully collateralized) (A)
N/A
Highest Rating
No Limit
Two Highest Category
Municipal Obligations
N/A
Ratings
No Limit
Medium -Term Corporate Notes
5 Years
A
No Limit
Non -Negotiable Certificates of
Deposit
180 Days
N/A
No Limit
Negotiable Certificates of
Deposit
5 Years
N/A
No limit
Local Agency Investment Fund N/A N/A N/A
(A) Guaranteed Investment Contracts must be fully collateralized with U.S. Treasury Obligations or
U.S. Agency Obligations.
a
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 2 - CASH AND INVESTMENTS (Continued) N
E. 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:
The City is a participant in the Local Agency Investment Fund (LATE) 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 LAW 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, 2013, these investments
matured in an average of 278 days.
Money Market Mutual Funds are available for withdrawal on demand and at June 30, 2013,
matured in an average of 53 days.
51
12 Months
More than
Type of Investment
or Less
12 Months
Total
City and Fiduciary:
Money Market Mutual Funds
$1,451,333
$1,451,333
Local Agency Investment Fund
44,009,433
44,009,433
Limited Obligation Improvement Bonds
$1,750,000
1,750,000
Total Investments
$45,460,766
$1,750,000
47,210,766
Cash in banks and on hand
4,899,125
Total City and Fiduciary Cash and Investments
52,109,891
San Rafael Sanitary District:
Cash in banks and short-term pooled investments
18,916,657
Total District's Cash and Investments
18,916,657
Total Cash and Investments
$71,026,548
The City is a participant in the Local Agency Investment Fund (LATE) 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 LAW 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, 2013, these investments
matured in an average of 278 days.
Money Market Mutual Funds are available for withdrawal on demand and at June 30, 2013,
matured in an average of 53 days.
51
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 2 - CASH AND INVESTMENTS (Continued)
F. 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, 2013, for each of the
Primary Government's investment types as provided by Standard and Poor's or Fitch investment
rating systems, except as noted:
Type of Investment Aaa/AAA Total
City and Fiduciary:
Money Market Mutual Funds $1,451,333 $1,451,333
Total rated investments $1,451,333 1,451,333
Not rated:
Limited Obligation Improvement Bonds 1,750,000
Local Agency Investment Fund 44,009,433
Cash in banks and on hand 4,899,125
Total City and Fiduciary Cash and Investments 52,109,891
San Rafael Sanitary District:
Not rated:
Cash in banks and short-term pooled investments 18,916,657
Total District's Cash and Investments 18,916,657
Total Cash and Investments $71,026,548
G. Concentration Risk
The City's investments that are greater than five percent of the total investments are in either an
external investment pool or mutual funds and are therefore exempt.
52
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 3 -INTER-FIIND TRANSACTIONS
Interfund Receivables and Payables
Inter -fund receivables and payables represent short term loans owed by one fund to another fund for
the purpose of covering short term negative cash positions. Such inter -fund transactions are routine,
year-end adjustments. Inter -fund receivables and payables at June 30, 2013, were as follows:
Due To: Due From:
Employee Retirement Internal Service Fund General Fund
$748,239 $7485239
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, 2013, were as follows:
From Fund
To Fund
Amount
General Fund
Non -Major Governmental Funds
$3,754,627
(A)
Internal Service Funds
583,600
(B)
Gas Tax Fund
General Fund
440,000
(C)
Non Major Governmental Fund
234,521
(A)
Non -Major Governmental Funds
General Fund
805,805
(C)
Gas Tax Fund
365
(D)
Non -Major Governmental Fund
892,739
(A)
Parking Services Enterprise Fund
General Fund
358,817
(C)
Non -Major Governmental Funds
65,000
(A)
Internal Service Funds
General Fund
1,500,000
(C)
Internal Services Funds
1,295,513
(B )
Non -Major Governmental Funds
373,600
(A)
$10,304,587
( A) Transfers to the Non -Major Governmental Funds were for administrative costs, program support,
capital projects, and special projects.
( B) Transfers to the Internal Service Funds were to fund internal operations.
( C) Transfers to the General Fund were for street maintenance support, administrative costs,
dispatch contract, and to reverse excess liability reserve.
( D) Transfer to Gas Tax Fund was for project reimbursement.
C. Internal Balances
Internal balances are 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.
53
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 4 — LOANS RECEIVABLE
A. Summary of Loans Receivable
The City has reserved the portion of fund balance represented by these loans. At June 30, 2013,
these loans totaled:
Employee Loans $5,545
Centertown Associates 280,979
One "H" Street Associates 57,144
Fire Chief Loan 445,908
Marin Housing Authority 4009000
Total $19189,576
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.
C. Centertown Associates
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 fmal 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.
D. One "H" Street Associates
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.
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, 2013, the balance of
the loan was $445,908.
54
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 4 — LOANS RECEIVABLE (Continued) I
F. Redevelopment Agency Loan
In 1972, the City loaned the former Redevelopment Agency $20,000 at an annual rate of 7%. This
obligation, with a principal and accrued interest balance totaling $299,489, was assumed by the
Successor Agency of the Redevelopment Agency Private Purpose Trust. The obligation was
included in the Third Recognized Obligation Payment Schedule, approved by the Successor Agency
Oversight Board on August 31, 2012, and approved by the California Department of Finance on
October 15, 2012. The principal and accrued interest was paid off in full on June 3, 2013.
G. Marin Housing Authority Loans
In 2012, the former Redevelopment Agency and the City, as Housing Successor to the
Redevelopment Agency, loaned Marin Housing Authority $235,000 and $165,000, respectively, at
zero percent interest for the purchase of two low and moderate income units. The loans due upon the
sale of the units. With the dissolution of the Redevelopment Agency effective February 1, 2012, the
assets of the Redevelopment Agency Low and Moderate Income Housing fund, including these
Marin Housing Authority loans, were assumed by the City's Low and Moderate Income Housing
Special Revenue fund. The $235,000 loan was repaid by Marin Housing Authority on December 19,
2012. On February 6, 2013, the City loaned Marin Housing Authority an additional $235,000 at zero
percent interest for the purchase of a low and moderate income unit.
NOTE 5 - CAPITAL ASSETS
Changes in capital assets during the fiscal year consisted of:
(4,712,975)
(274,647)
Balance
Buildings and structures
(12,360,994)
Balance
June 30, 2012
Additions Retirements
Transfers
June 30, 2013
Governmental Activities
(12,969,169)
Infrastructure
(103,199,547)
(4,722,849)
Capital assets not being depreciated:
(107,922,396)
Total accumulated depreciation
(133,196,004)
(7,124,286)
Land
$82,464,364
Total net capital assets being depreciated
112,042,133
$82,464,364
Construction in progress
1,173,133
$3,438,215
($2,063,738)
2,547,610
Total capital assets not being depreciated
83,637,497
3,438,215
(2,063,738)
85,011,974
Capital assets being depreciated:
Land improvements
8,580,916
208,069
8,788,985
Buildings and structures
38,855,645
60,604
1,405,295
40,321,544
Machinery and equipment
16,603,920
1,184,167 ($959,442)
92,000
16,920,645
Infrastructure
181,197,656
358,374
181,556,030
Total capital assets being depreciated
245,238,137
1,244,771 (959,442)
2,063,738
247,587,204
Less accumulated depreciation for:
Land improvements
(4,712,975)
(274,647)
(4,987,622)
Buildings and structures
(12,360,994)
(1,136,206)
(13,497,200)
Machinery and equipment
(12,922,488)
(990,584)
943,903
(12,969,169)
Infrastructure
(103,199,547)
(4,722,849)
(107,922,396)
Total accumulated depreciation
(133,196,004)
(7,124,286)
943,903
(139,376,387)
Total net capital assets being depreciated
112,042,133
(5,879,515)
(15,539)
2,063,738 108,210,817
Total governmental activity capital assets
$195,679,630
($2,441,300)
($15,539)
$193,222,791
55
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 5 - CAPITAL ASSETS (Continued) I
Balance
June 30, 2012 Additions Retirements
Business -type Activities
Capital assets not being depreciated:
Land
$8,620,853
Construction in process
Balance
$93,743
Total capital assets not being depreciated
8,620,853
Adjustments
Capital assets being depreciated:
$115,329
Buildings and structures
10,234,521
$115,329
Machinery and equipment
1,097,136
57,981
Total capital assets being depreciated
11,331,657
57,981
Less accumulated depreciation for:
(605,539)
Buildings and structures
(2,063,518)
(210,538)
Machinery and equipment
(793,434)
(112,538)
Total accumulated depreciation
(2,856,952)
(323,076)
Total net capital assets being depreciated
8,474,705
(265,095)
Total business -type activity capital assets
$17,095,558
($265,095)
San Rafael Sanitation District
Capital assets not being depreciated:
Land and easements
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Subsurface lines
Sewage collection facilities
General plant and administration
Total capital assets being depreciated
Less accumulated depreciation for:
Subsurface lines
Sewage collection facilities
General plant and administration
Total accumulated depreciation
Total net capital assets being depreciated
Total District's capital assets
($15,840)
(15,840)
15,840
15,840
Transfers
($93,743)
(93,743)
93,743
93,743
93,743
Balance
June 30, 2013
$8,620,853
8,620,853
10,328,264
1,139,277
11,467,541
(2,274,056)
(890,132)
(3,164,188)
8,303,353
$16,924,206
Balance
Transfers &
Balance
June 30, 2012
Additions
Retirements
Adjustments
June 30, 2013
$115,329
$115,329
455,002
$395,257
($605,539)
244,720
570,331
395,257
(605,539)
360,049
19,720,409
127,569
563,512
20,411,490
36,811,811
($104,465)
42,027
36,749,373
1,192,998
32,803
(32,050)
1,193,751
57,725,218
160,372
(136,515)
605,539
58,354,614
(9,200,965)
(368,656)
(9,569,621)
(14,530,447)
(828,365)
104,465
(15,254,347)
(453,846)
(128,007)
32,050
(549,803)
(24,185,258)
(1,325,028)
136,515
(25,373,771)
33,539,960
(1,164,656)
605,539
32,980,843
$34,110,291
($769,399)
$33,340,892
56
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 5 - CAPITAL ASSETS (Continued)
Capital Asset Contributions - Some capital assets may have been acquired using Federal and State
grant funds, or were contributed by developers or other governments. These contributions are
accounted for as revenues at the time the capital assets are contributed.
Depreciation Allocation - Depreciation expense is charged to functions and programs based on
their usage of the related assets. The amounts allocated to each function or program are as
follows:
Governmental Activities
General government
$198,973
Public safety
725,584
Public works and parks
5,409,188
Community development/redevelopment
42,304
Culture and recreation
748,237
Total Governmental Activities
$7,124,286
Business -type Activities
Parking services
$323,076
Total Business -type Activities $323,076
NOTE 6 —LONG TERM OBLIGATIONS
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, 2013, are as follows:
Authorized Balance
and Issued June 30, 2012
Governmental Activities:
2010 Taxable Pension Obligation Bonds
6%-6.25%, due 7/1/2025 $4,490,000
Total Pension Obligation Bonds
Ground Lease Note Payable,
8.00%, due 11/1/2024 169,000
Total Governmental Long-term Debt
Business -type Activities
2003 Authority Lease Revenue Bonds
3.00-4.70%, due 4/1/2033 $7,605,000
2012 Authority Lease Revenue Refunding Bonds
2.00-4.00%, due 4/1/2033 6,750,000
Less: unamortized discount/issuance cost
Total Enterprise Fund Debt
$4,490,000
4,490,000
169,000
$4,659,000
$6,445,000
$6,445,000
57
Balance Current
Additions Retirements June 30, 2013 Portion
$4,490,000
4,490,000
169,000
$4,659,000
$6,445,000
$6,750,000 305,000 $6,445,000 $245,000
(199,848) (8,864) (190,984)
$6,550,152 $6,741,136 $6,254,016 $245,000
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 6 . LONG-TERMJnmu uuu OBLIGATIONS (Continued)
A. 2010 Taxable Pension Obligation Bonds
On July 1, 2010, the City issued 2010 Taxable Pension Obligation Bonds in the amount of
$4,490,000 bearing interest at rates from 6.00% to 6.25%. Interest on the Bonds are payable on
January 1 and July 1 on each year. Principal payable on the Bonds will be paid on July 1 starting
July 1, 2016. The Bonds were issued to prefund a portion of the obligations of the City to the
Marin County Employees' Retirement Association. Payment of the principal and interest on the
Bonds is not limited to any special source of funds and is payable from any legally available
moneys of the City. The City is not empowered or obligated to levy or pledge taxes to make
payments on the Bonds.
B. Ground Lease Note Payable
On November 6, 1989, the City of San Rafael Redevelopment Agency signed a $169,000
promissory note with Bridge Housing Corporation, bearing interest at 8% with principal and
accrued interest due and payable in November 2024. The note was assumed to finance the
purchase of certain property by the Agency. Assembly Bill 1x26 dissolved all California
redevelopment agencies, effective January 31, 2012, and required the transfer all assets and
liabilities to the Successor Agency. The City of San Rafael as Housing Successor assumed the
liabilities of the Successor Agency of the Housing fund. This note will be repaid from City
Housing Successor Low and Moderate Income Housing special revenue fund.
C. 2003 Authority Lease Revenue Bonds
On March 26, 2003, the Authority issued 2003 Authority Lease Revenue Bonds in the amount of
$75605,000 bearing interest at rates from 3.00% to 4.70%. The proceeds of the bonds were
provided for the design and construction of a new public parking garage. The bonds were to
mature annually each April 1 from 2006 to 2033, in amounts ranging from $150,000 to $290,000.
Interest was payable semiannually on April 1 and October 1. The bonds maturing on or after
April 1, 2011 were subject to optional redemption prior to maturity on or after April 1, 2010 at
the option of the Authority, as a whole on any date. In August 2012, the Authority exercised the
redemption option. The outstanding balance of the Bonds was refunded through the issuance of
2012 Authority Lease Revenue Refunding Bonds as discussed on Note 6D.
58
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 6 - LONG-TERM OBLIGATIONS (Continued)
D. 2012 Authority Lease Revenue Refunding Bonds
On August 7, 2012, the Authority issued 2012 Authority Lease Revenue Refunding Bonds in the
amount of $6,750,000 bearing interest at rates from 2.00% to 4.00%. The proceeds of the Series
2012 Bonds were used to repay the Authority's 2003 Authority Lease Revenue Bonds that
financed the construction of the 3rd and C Street parking structure and achieved lower interest
rates and lower annual debt service payments. The refunding resulted in a net present value
savings to the City in debt service of $670,496. In addition, the requisition price exceeded the
net carrying amount of the old debt by $295,278. The Series 2012 Bonds are payable from lease
payments made by the City to the Authority for leasing the City facilities. Principal payments
are due annually on April 1 and interest payable semiannually on October 1 and April 1. The
bonds are payable from revenues consisting primarily of certain Base Rental payments payable
by the City of San Rafael. The Bonds maturing on or prior to April 1, 2022 are not subject to
optional redemption prior to their maturity. The Bonds maturing on or after April 1, 2023 are
subject to optional redemption as a whole or in part on any date after April 1, 2022 at the option
of the Authority, at a redemption price equal to the principal amount of the Bonds subject to
redemption, plus accrued interest to the date fixed for redemption, without premium.
E. Future Debt Service
Future debt service requirements, including interest, at June 30, 2013, are as follows:
For the Year
Ended June 30
2014
2015
2016
2017
2018
2019-2023
2024-2028
2029-2033
Governmental Activities
Principal
Interest
$245,000
$276,512
245,000
276,512
250,000
276,512
$100,000
273,512
205,000
264,362
2,38000
948,898
1,974,000
173,912
Business -type Activities
Principal
Interest
$245,000
$211,288
245,000
206,388
250,000
201,488
260,000
193,988
270,000
186,188
1,460,000
805,390
1,695,000
564,400
2,020,000
241,806
Totals $49659,000 $29490,220 $6,4459000 $2,6109936
59
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
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 is only acting as an agent for the property owners and bondholders:
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 are 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
fmance 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.
Mi
Project
Original
Outstanding
Description
Amount
June 30, 2013
San Rafael Redevelopment Agency
162-175 Belvedere
Multifamily Housing Revenue Bonds
Apartments
$3,590,529
$1,227,402
California Statewide Communities
Development Authority Revenue Bonds
St. Marks School
5,605,000
4,505,000
San Rafael Redevelopment Agency
Variable Rate Demand Multifamily
55 Fairfax
Housing Revenue Bonds
Apartments
3,000,000
2,500,000
San Rafael Redevelopment Agency
San Rafael Commons
Multifamily Housing Revenue Bonds -2001
Apartments
6,100,000
5,315,000
Martinelli House
1,000,000
City of San Rafael
Kaiser Foundation
Variable Rate Revenue Bonds
Hospitals
275,000,000
195,630,000
San Rafael Redevelopment Agency
Martinelli House
Multifamily Housing Revenue Bonds -2007 Series A
Project
6,000,000
2,109,849
Multifamily Housing Revenue Bonds -2007 Series B
Martinelli House
1,000,000
257,014
Pt. San Pedro Road Median Landscaping
Pt. San Pedro Road
1,750,000
1,750,000
Assessment District Limited Obligation Bonds
Median Landscaping
NOTE 8 —NET POSITION AND FUND BALANCE
A. Net Position
Net Position is the excess of all the City's assets and deferred outflow over all its liabilities, and
deferred inflows regardless of fund. Net Position are 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
fmance 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.
Mi
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
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. Encumbrances and 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. Encumbrances and 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 encumbrances; 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
61
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
(NOTE 8 - NET POSITION AND FUND BALANCE (Continued)
Detailed classifications of the City's Fund Balances, as of June 30, 2013, are below:
62
Special Revenue Funds
Capital Projects
Traffic and
Other
Housing
Equipment
Governmental
General Fund
Mitigation Gas Tax
Replacement
Funds
Total
Fund balances:
Nonspendable:
Loans receivable $451,453
$451,453
Prepaids 75,782
$6,215
$45,306
127,303
Total Nonspendable 527,235
6,215
45,306
578,756
Restricted for:
Assessment District capital projects
302,174
302,174
Baypoint Lagoons Assessment District
194,517
194,517
Bedroom tax capital projects
21,970
21,970
Business improvement
4,298
4,298
Development services
479,329
479,329
Emergency medical services
736,842
736,842
1997 financing authority revenue bonds debt service
145,826
145,826
Gas tax
$2,232,975
2,232,975
Grants
459,600
459,600
Household hazmat facility
183,123
183,123
Library
10,383
10,383
Library assessment
51,469
51,469
Loch Lomond Assessment District
521,224
521,224
Mariposa Assessment District debt service
16,543
16,543
Measure A Open Space
217,213
217,213
Parkland dedication
695,630
695,630
Peacock Gap Assessment District debt service
2,875
2,875
Public safety
183,855
183,855
Pt. San Pedro - Maintenance Portion
166,296
166,296
Recreation revolving
496
496
Street maintenance and cleaning
550,529
550,529
Storm water
1,452,338
1,452,338
Traffic and housing mitigation
$12,140,041
12,140,041
Total Restricted
12,140,041 2,232,975
6,396,530
20,769,546
(Continued)
62
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
(NOTE S - NET POSITION AND FUND BALANCE (Continued)
Special Revenue Funds Capital Projects
Traffic and
Other
Housing Equipment
Governmental
General Fund Mitigation Gas Tax Replacement
Funds
Total
Committed to:
Assessment District capital projects
57,190
57,190
Capital improvement capital projects
1,143,215
1,143,215
Childcare
9,700
9,700
Development services
181,703
181,703
Gas tax
3,873,524
3,873,524
Grants
766,788
766,788
Household hazmat facility
35,273
35,273
Library
104,782
104,782
Library assessment
541,195
541,195
Low and moderate income housing
806,479
806,479
Park capital projects
12,986
12,986
Parkland dedication
255,000
255,000
Project development
800,876
800,876
Public safety
4,766
4,766
Recreation revolving
23,310
23,310
Storm water
331,584
331,584
Traffic and housing mitigation
300,000
300,000
Total Committed
800,876 300,000 3,873,524
4,273,971
9,248,371
Assigned to:
Childcare
56,744
56,744
Contractual commitments
19,412
19,412
Development services
210,633
210,633
Emergency and cash flow
2,288,411
2,288,411
Equipment replacement capital projects
5,059,703
5,059,703
Household hazmat facility
21,985
21,985
Library
106,679
106,679
Open space capital projects
130,836
130,836
Park capital projects
4,315
4,315
Project development
168,853
168,853
Radio replacement capital projects
580,328
580,328
Recreation revolving
29,505
29,505
Sewer maintenance
31,141
31,141
Street maintenance and cleaning
82,759
82,759
Telephone replacement capital projects
197,222
197,222
Total Assigned
2,476,676 5,059,703
1,452,147
8,988,526
Total Fund Balances
$3,804,787 $12,440,041 $6,106,499 $5,065,918
$12,167,954
$39,585,199
63
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 9 —EMPLOYEES RETIREMENT PLAN
A. Plan Description
The City's retirement plan is administered by the Marin County Employees' Retirement Association
(Association). All full-time and permanent part-time employees who work at least 75% of a full time
position are eligible to participate.
The Association is a multiple -employer retirement system governed by the 1937 Act of the California
Government Code. The Association acts as a common administrative and investment agent for defined
benefit retirement plan for various local governmental agencies within the County of Marin. The
Association provides retirement, disability, and death benefits based on the employee's years of service,
age, and final compensation. Employees vest after five years of service and are eligible to receive
retirement benefits after 10 years of service and having attained the age of 50, or 30 years of service (20
years for safety employees) regardless of age. Copies of the Association's annual financial reports,
which include required supplementary information for each plan may be obtained from the Marin
County Employees' Retirement Association, One McInnis Parkway, Suite 100, San Rafael, California
94903.
B. Funding Policy
The funding policy of the Association 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 City
contributed 65.82% and 66.64% of payroll for Police and Fire personnel, respectively, and 44.13% for
other covered employees for the year ended June 30, 2013.
C: Annual Pension Cost
The annual required contribution was determined as part of the actuarial valuation performed as of
June 30, 2012. The employer rates for normal cost are determined using the Entry Age Normal
Actuarial Cost Method. It takes into account those benefits that are expected to be earned in the future
as well as those already accrued. The significant assumptions used in the 2012 actuarial valuation
include an assumed rate of return on invested assets of 7.50%, annual payroll increases reflecting 3.25%
for inflation and an approximate range of 0.50% to 5.00% for merit and longevity. The actual rate of
return on investments was a gain of 1.6%. The actuarial value of assets was determined using
techniques that smooth the effects of short-term volatility in the market value of investments over a
period of five years. The Association uses a 17 -year level percentage, open method to amortize the
unfunded actuarial liability. It is assumed that payroll will increase at an annual inflation rate of 3.25%
over the amortization period. The City uses the actuarially determined percentages of payroll to
calculate and pay contributions to the Association. In the fiscal year ended June 30, 2013, the City made
an additional contribution of $1,000,000. The required contributions and related rates for the year ended
June 30 were as follows:
Fiscal Year
Annual
Percentage of
Net
Ended
Pension Cost
APC
Pension
June 30
(APC)
Contributed
Obligation (Asset)
2011
$15,409,519
100%
$0
2012
14,627,709
100%
0
2013
15,522,832
106%
(1,000,000)
N
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 9 — EMPLOYEES RETIREMENT PLAN (Continued)
The Plans' actuarial value (which differs from market value) and funding progress over the most recent
three years available is set forth below at their actuarial valuation date of June 30:
D. Public Employees' Pension Reform Act (PEPRA)
Assembly Bill 340 (AB 340) created the Public Employees' Pension Reform Act (PEPRA) that
implemented new benefit formulas and final compensation periods, as well as new contribution
requirements for new employees hired on or after January 1, 2013, who meet the definition of new
member under PEPRA.
The table below provides the details of the new provisions.
Benefit Formula
Final Compensation
Period
Miscellaneous
2.0%(a),62
Average of the highest 3
years
Safety
2.7% (a, 57
Average of the highest 3
years
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 H, 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 $66,909. The total covered payroll of
employees participating in the plan for the year ended June 30, 2013, was $1,784,229. The total payroll
for the year was $35,326,393.
65
Actuarial
Excess
Excess (Deficit)
Actuarial
Actuarial
Accrued
(Deficit)
Assets Over AAL
Valuation
Value
Liability (AAL)
Assets
Funded
Covered
As a % of
Date
of Assets
Entry Age
Over AAL,
Ratio
Payroll
Payroll
6/30/10
$248,500,000
$394,889,000
($146,389,000)
63%
$30,320,000
(483%)
6/30/11
258,963,000
412,743,000
(153,780,000)
63%
31,692,000
(4850%)
6/30/12
267,317,000
437,785,000
(170,468,000)
61%
31,182,000
(547%)
D. Public Employees' Pension Reform Act (PEPRA)
Assembly Bill 340 (AB 340) created the Public Employees' Pension Reform Act (PEPRA) that
implemented new benefit formulas and final compensation periods, as well as new contribution
requirements for new employees hired on or after January 1, 2013, who meet the definition of new
member under PEPRA.
The table below provides the details of the new provisions.
Benefit Formula
Final Compensation
Period
Miscellaneous
2.0%(a),62
Average of the highest 3
years
Safety
2.7% (a, 57
Average of the highest 3
years
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 H, 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 $66,909. The total covered payroll of
employees participating in the plan for the year ended June 30, 2013, was $1,784,229. The total payroll
for the year was $35,326,393.
65
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 10 - PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION
RETIREMENT PLANS) (Continued)
Additionally, the City participates in a 401(a) tax qualified plan for eligible executive management and
mid -management employees, and elected officials. This is an employer only contribution program
separate from the Marin County Employees' Retirement Association. Under this plan, the percent
amount of contribution is 3% of base salary of eligible employees. During the year, the City
contributed $123,704 to the plan on behalf of the eligible employees.
NOTE 11—POST-EMPLOYMENT HEALTH. CARE BENEFITS
The City provides certain health care benefits for retired employees and their spouses. The benefit
provisions were established under the authority of the 1937 Act, Section 31450, et. seq. of the
Government Code. Employees who meet the vesting criteria become eligible for these benefits if they
receive a retirement benefit from the Marin County Employees' Retirement Association within 120
days of retirement from City employment. At June 30, 2013, 324 retirees and surviving spouses
received post -employment health care benefits.
The provisions and benefits of the City's Other Post Employment Benefit Plan, in effect at June 30,
2013, are summarized as follows:
Elected Officials, Mid -Management, &
Unrepresented Management All other Bargaining Units
Eligibility Retire directly from the City:
- Age 50 (age 55 if hired > 7/1/11) with 10 years services (Including reciprocity) OR
- 30 years service (Miscellaneous), 20 years service (Safety) OR
- Disability Retirement
Benefit Hired:5 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 INone
Hired > 4/1/07 None
Other No Dental, Vision, or Life Benefits
Funding Policy and Actuarial Assumptions
The City's funding policy requires a minimum annual contribution equivalent to the annual required
contribution (ARC).
The ARC was determined as part of a June 30, 2011 actuarial valuation using the entry age normal
actuarial cost method. This is a projected benefit cost method, which takes into account those
benefits that are expected to be earned in the future as well as those already accrued. The actuarial
assumptions included (a) 4.25% investment rate of return and (b) 3.25% of general inflation increase,
and (c) a healthcare trend of declining annual increases ranging from 9.40% in 2013 to 5.00% for
years starting 2021. In addition, the fixed dollar benefit amounts are assumed to be held flat in the
future and the premium related benefits are assumed to increase with the healthcare trend rate.
N6
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 11— POST -EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the City and the plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing benefit costs between the City and plan
members at that point. The actuarial methods and assumptions used include techniques that smooth
the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets.
Actuarial calculations reflect a long-term perspective and actuarial valuations involve estimates of
the value of reported amounts and assumptions about the probability of events far into the future.
Actuarially determined amounts are subject to revision at least biennially as results are compared to
past expectations and new estimates are made about the future. The City's OPEB unfunded actuarial
accrued liability is being amortized as a level percentage of projected payroll using a 23 -year fixed
(closed) period for June 30, 2012.
Funding Progress and Funded Status
During the fiscal year ended June 30, 2013, the City has recorded a Net OPEB Asset in the
Statements of Net Position, representing the difference between the ARC and actual contributions, as
presented below:
Annual required contribution (ARC)
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost
Contributions made:
Benefits payment
Trust pre -funding
Additional contribution to OPEB Trust
Total contributions
Change in net OPEB obligation/(asset)
Net OPEB Obligation (Asset) at June 30, 2012
Net OPEB Obligation (Asset) at June 30, 2013
67
Amounts
(in thousands)
$2,434
843
(782)
2,495
2,073
12,028
500
14,601
(12,106)
7,594
($4,512)
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 11—POST-EMPLOYMENT HEALTH
CARE BENEFITS (Continued) I
Generally accepted accounting principles permit assets to be treated as OPEB assets and deducted
from the Actuarial Accrued Liability when such assets are placed in an irrevocable trust or equivalent
arrangement. Contributions to a 401(h) account held and administered by the MCERA were made by
the City in prior years and were included in the June 30, 2011, actuarial valuation. The balance in
this account was recorded as an asset on the City's government -wide statements. On June 25, 2013,
the 401(h) account balance of $12,027,705 was transferred to an irrevocable trust under the
California Employers' Retiree Benefit Trust Fund (CERBT) managed by CalPERS. This amount is
treated as a contribution toward the Net OPEB Obligation (Asset). As of June 30, 2013, the account
balance in the CERBT was $12,665,652.
For the fiscal year ended June 30, 2013, the City has calculated and recorded the Net OPEB Asset,
representing the difference between the ARC, and contributions, as presented below:
The Schedule of Funding Progress presents trend information about whether the actuarial value of
plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Trend data from the June 30, 2011, actuarial study is presented below:
Annual
Required
Annual
Unfunded
Annual
Contribution
OPEB Cost
Actual
Percentage
Net OPEB
Fiscal Year
(ARC)
(AOC)
Contribution
of AOC
Obligation (Asset)
Ended
(000's omitted)
(000's omitted)
(000's omitted)
Contributed
(000's omitted)
June 30, 2011
$4,025
$3,868
$2,648
66%
$6,485
June 30, 2012
2,312
3,233
2,124
92%
7,594
June 30, 2013
2,434
29495
149601
600%
(4,512)
The Schedule of Funding Progress presents trend information about whether the actuarial value of
plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Trend data from the June 30, 2011, actuarial study is presented below:
68
Overfunded
(Underfunded)
Actuarial
Liability as
a Percentage of
Covered
Payroll
(104.75%)
(122.85%)
(71.84%)
Actuarial
Unfunded
Annual
Value of
Accrued
Accrued
Covered
Valuation
Assets
Liability
Liability
Funded
Payroll
Date
(000's omitted)
(000's omitted)
(000's omitted)
Ratio
(000's omitted)
6/30/2007
$14,563
$52,767
($38,204)
28%
$36,470
6/30/2009
12,773
56,262
(43,489)
23%
35,401
6/30/2011
10,861
35,156
(24,295)
31%
31,692
68
Overfunded
(Underfunded)
Actuarial
Liability as
a Percentage of
Covered
Payroll
(104.75%)
(122.85%)
(71.84%)
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
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 N UUNet 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 16.94% or $188,738 for the year ended June 30, 2013. Financial statements of the
System can be obtained from the County Librarian, Marin County Free Library, Civic Center,
Administration Building, San Rafael, California 94903.
B. The Marin General Services Authority (MGSA)
The MGSA was formed by the County of Marin and twelve local agencies to acquire street light
facilities, operate the facilities during an eminent domain action against PG&E, and coordinate the
subsequent transfer of the facilities to the individual local agencies. Each of the local agency's share
of contributions was based on the number of street lights to be acquired in the local agency's
individual jurisdiction in relation to the total number of street lights to be acquired by the MSLAJPA.
MGSA services now include street light maintenance, abandoned vehicle abatement, taxicab
regulation and administrative responsibility for MarinMap. The City's contribution to MGSA was
$3,134 for the year ended June 30, 2013. Financial statements of the MGSA can be obtained at 555
Northgate Drive, Suite 230, San Rafael, California 94903.
Z
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
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.
On February 1, 1999, the Authority issued the 1999 Revenue Bonds in the amount of $26,940,000
with interest rates ranging from 4.75% to 5.01%, maturing on August 15, 2016, to finance the
acquisition and installation of the system. The costs of maintenance, operation, and debt service are
divided on a pro rata share based on an agreed-upon formula established by a majority of the
Governing Board. The members entered into a Project Operating Agreement on February 1, 1999.
Under the Operating Agreement, members are obligated to contribute service payments to cover the
Authority's operation and debt service. The City's portion of the obligation is 16.913%. The first
operating service payment was in July 1999. The first debt service payment was in August 2002.
The City contributed $270,123 of the Authority's operation and debt service for the fiscal year ended
June 30, 2013. 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 $43,144 for the year ended June 30, 2013. Financial
statements of the Agency can be obtained at 371 Bel Marin Keys Blvd, Suite 100, Novato, California
94949.
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 $13,187 for the year ended June 30, 2013. Financial statements of the Authority can be obtained
at 3501 Civic Center Drive, San Rafael, California 94903.
70
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 12 — JOINTLY GOVERNED ORGANIZATIONS (Continued)
G. Regional Government Services and Local Government Services
Regional Government Services (RGS) and Local Government Services (LGS) were established in
2001 to provide administrative, support and staffing services to other California public agencies.
RGS and LCS help their clients address the increasing demand for local services with limited
revenues and assist with the recruitment and retention of key employees. The members are the cities
of Dublin, Larkspur and San Rafael, the town of Yountville and the Association of Bay Area
Governments (ABAG). Each agency's chief executive officer appoints a seat on the Board of
Directors for RGS and on the Board of Directors for LGS. Financial statements of LGS and RGS
can be obtained at P.O. Box 1350, Carmel Valley, CA. 93924
(NOTE 13 -RISK MANAGEMENT
The City manages risk by participating in the public entity risk pools described below and by retaining
certain risks.
Public entity risk pools are 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 risk pool is governed by a board consisting of representatives
from member municipalities. Each board controls the operations of the respective risk pool, 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 these
risk pools are not the City's responsibility.
A. 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 $99,236,049. The City is self-
insured up to $500,000 for each general liability claim and $25,000 for each property damage claim.
Once the self-insured retention is met CJPRMA becomes responsible for payment of all liability
claims up to the limit. During the fiscal year ended June 30, 2013, the City contributed $191,896 for
coverage during the current year and received a refund of $101,040 of prior year excess
contributions. Five years after settlement of all claims for a program year, CJPRMA retroactively
adjusts premium deposits for any excess or deficiency in deposits related to paid claims and reserves.
CJPRMA refunds excess contributions to members from time to time, based on the results of
actuarial studies of each program year's claims experience. Financial statements for the risk pools
may be obtained from CJPRMA at 3201 Doolan Road, Suite 285, Livermore, California 94551.
71
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 13 RISK MANAGEMENT (Continued)
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 $750,000 for each worker's compensation claim.
B. Insurance Internal Service Funds and Financial Reporting
The City records estimated liabilities for claims filed up to the amounts for which it retains risk in the
General Liability and Workers Compensation Internal Service Funds. Charges to the General Fund
and other funds are based on relative general liability and workers compensation risk associated with
the activities of each fund. Charges are recorded in the funds as expenditures or expenses and as
revenues in the respective internal service funds.
The Governmental Accounting Standards Board (GASB) requires municipalities to record their
liability for uninsured claims and to reflect the current portion of this liability as an expenditure in
their financial statements. As discussed above, the City has coverage for such claims, but it has
retained the risk for the deductible or uninsured portion of these claims.
The City's liability for uninsured general liability claims and workers' compensation claims,
including claims incurred but not reported, are reported in the Statements of Net Position. The
liability is based on an actuarial valuation prepared as of June 30, 2012:
The claims settlements have not exceeded insurance coverage for the past three years.
72
General
Workers'
Totals, as of June 30
Liability
Compensation
2013
2012
Balance, beginning of year
$2,581,164
$4,718,198
$7,299,362
$3,970,177
Current year claims and changes
in estimates
(1,177,543)
1,193,909
16,366
3,940,606
Claims paid
(300,834)
(1,099,545)
(1,400,379)
(611,421)
Balance, end of year
$1,102,787
$4,812,562
$5,915,349
$7,299,362
Due in one year
$512,376
$1,426,924
$1,939,300
$1,842,820
Due in more than one year
590,411
3,385,638
3,976,049
5,456,542
Total claim liabilities
$1,102,787
$4,812,562
$5,915,349
$7,299,362
The claims settlements have not exceeded insurance coverage for the past three years.
72
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 14 - COMMITMENTS AND CONTINGENCIES
Litigation
The City is subject to litigation arising in the normal course of business. In the opinion of the City
Attorney there is no pending litigation which is likely to have a material adverse effect on the
financial position of the City.
In 2004, the City of San Rafael entered into a Settlement Agreement with the federal Department
of Justice to bring City managed programs, activities, services and facilities into compliance with
the Americans with Disabilities Act (ADA). The City has made significant progress over the past
eight years and is in the process of completing the few remaining projects identified in the
Settlement Agreement.
Among those projects is the construction of 800 curb ramps throughout San Rafael. As of June 30,
2013, the City had constructed 404 ramps. During fiscal year 2012-2013, the City negotiated a 5 -
year extension to the original 2014 expiration date to complete the ramp construction project. The
revised Agreement expires in February 2019.
NOTE 15 —SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE -
PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES
Aa Redevelopment Dissolution
In an effort to mitigate its budget deficit, the State of California adopted ABxl 26 on June 28, 2011,
amended by AB 1484 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 ABxl 26.
In addition, ABxl 26 and AB 1484 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.
73
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 15 — SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE -
PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
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 Capital Projects Fund were distributed to the Housing Successor and all
remaining Redevelopment Agency assets and liabilities were distributed to the Successor Agency.
The City elected to become the Housing Successor and on February 1, 2012, certain housing assets
were transferred to the City's Low and Moderate Income Housing Special Revenue Fund.
B. Due Diligence and Other Required Reviews
Low and Moderate Income Housing Fund Due Diligence Review
Pursuant to Health and Safety Code section 34179.6 (c), the City of San Rafael Successor Agency
(Agency) submitted an Oversight Board approved Low and Moderate Income Housing Due
Diligence Review to the California Department of Finance (DOF) on October 15, 2012. In
November 2012, the DOF sent correspondence to the City questioning a transfer of $1,371,751 for
cash and investment transfers made. The City contended that the transfers were lawfully made and
requested a meet -and -confer session. Following this meeting, the DOF upheld its position and
demanded payment of $1,371,751. The full payment was made from the Low and Moderate
Income Housing Fund to the Marin County Auditor Controller on December 19, 2012. The Auditor
Controller has indicated the housing funds have been distributed to the taxing entities.
Non -Housing Funds Due Diligence Review
Pursuant to Health and Safety Code section 34179.6(c), the City of San Rafael Successor Agency
submitted an Oversight Board approved Non -Housing Funds Due Diligence Review to the
California Department of Finance (DOF) on February 26, 2013. As of the end of the 45 -day
review period, there was no requirement to pay funds from the Non -Housing funds.
State Asset Transfer Review
Pursuant to Health and Safety Code section 34167.5, the State Controller's Office is required to
review the records of the former redevelopment agency for asset transfers that took place after
January 1, 2011, between the city or county, or city and county that created a redevelopment
agency, or any other public agency, and the redevelopment agency through its termination on
January 31, 2012. The State Controller's Office is required to order that such assets, except those
that already had been committed to a third party prior to June 28, 2011, the effective date of ABxl
26, be turned over to the Successor Agency. The State Controller's Office completed this review
on May 17, 2013, and issued its report on July 29, 2013. The report resulted in no action required
by the City of San Rafael Successor Agency.
74
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 15 — SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE -
PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
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.
2002 Tax Allocation Refunding Bonds
On October 9, 2002, the former Agency issued Tax Allocation Refunding Bonds in the amount of
$25,020,000. The proceeds of the bonds were used to refund the 1992 Tax Allocation Refunding
Bonds and the 1995 Tax Allocation Bonds. The Bonds mature annually each December 1 from 2002
to 2022, in amounts ranging from $540,000 to $1,920,000 and bear interest at rates ranging from
2.00% to 5.25%. Interest is payable semiannually on June 1 and December 1. The Bonds maturing
on or after December 1, 2013, are subject to optional redemption prior to maturity, in whole or in
part, and by lot within any one maturity, prior to their respective maturity dates, on any date on or
after December 1, 2012, at a price equal to the principal amount, plus accrued interest on the
redemption date. The bonds are payable from tax revenues to be derived from the redevelopment
activities of the former Agency related to the Central San Rafael Redevelopment Project Area.
2009 Tax Allocation Refunding Bonds
On December 14, 2009, the former Agency issued 2009 Tax Allocation Refunding Bonds in the
amount of $14,660,000 bearing interest at rates from 3.00% to 5.00%. The proceeds of the Series
2009 Bonds were used to refund the former Agency's 1999 Tax Allocation Current Interest Bonds, to
advance funds to the City to finance street and parking improvements for the benefit of the Agency's
Central San Rafael Redevelopment Project. Principal payments are due annually on December 30
and interest payable semiannually on June 30 and December 30.
75
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 15 — SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE -
PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
The Series 2009 Bonds maturing on or before December 1, 2019, are not subject to optional redemption
prior to their respective stated maturities. The Series 2009 Bonds maturing on or after December 1,
2020, are subject to optional redemption as a whole or in part either on a pro rata basis among
maturities or in inverse order of maturity, and by lot within any one maturity, prior to their respective
maturity dates, at the option of the Agency, on any date on or after December 1, 2019, at a price equal to
the principal amount of such Series 2009 Bonds called for redemption, together with interest accrued on
the date fixed for redemption, without premium.
The former Agency pledged all future tax increment revenues, less amounts required to be set aside in
the Low and Moderate Income Housing Fund, 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 $35.7 million in remaining debt service on the Bonds, which is
scheduled to occur in 2023. For fiscal year June 30, 2013, tax increment revenues amounted to $3.6
million which was used to make the debt service payments of $3.6 million.
The following table summarizes the activity for the fiscal year ended June 30, 2013:
Authorized Balance
and Issued June 30, 2012 Additions Retirements
San Rafael Redevelopment Agency
Activities
1999 Tax Allocation Bonds
Interest
Capital Appreciation Bonds
1,023,576
5.58%-5.6%, due 12/1/2022 $2,389,004
$4,871,597 $276,233
2002 Tax Allocation Refunding Bonds
766,926
2.00%-5.251/o, due 12/1/2021 25,020,000
12,525,000
2009 Tax Allocation Refunding Bonds
484,026
3.00%-5.00%, due 12/1/2022 14,660,000
12,880,000
Add: deferred bond premium costs
878,465
Total Successor Agency Long-term Debt
Debt Service Requirements
Balance Current
June 30, 2013 Portion
$5,147,830
$1,495,000 11,030,000 $1,575,000
930,000 11,950,000 965,000
79,860 798,605
$31,155,062 $276,233 $2,504,860 $28,926,435 $2,540,000
Annual debt service requirements are shown below:
For the Year
Ended June 30
2014
2015
2016
2017
2018
2019-2023
Totals
Reconciliation of long-term debt:
Less unaccreted discount
Add deferred bond premium costs
76
Governmental
Activities
Principal
Interest
$2,540,000
1,023,576
2,675,000
893,201
2,800,000
766,926
2,930,000
634,276
3,080,000
484,026
16,785,000
1,039,189
30,810,000 $4,841,194
(2,682,170)
798,605
$28,926,435
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
NOTE 15 — SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE -
PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
D. Other Long -Term Obligations
During the fiscal year ending June 30, 2013, the San Rafael Successor Agency Oversight Board
approved two personnel -related obligations of the former Redevelopment Agency. On August 30,
2012, the Oversight Board approved the inclusion of $1,904,431, representing the unfunded pension
liability attributable to former Redevelopment Agency employees; the repayment is being made in ten
equal, annual installments. On January 22, 2013, the Oversight Board approved the inclusion of
$502,000, representing the unfunded OPEB (retiree medical) liability attributable to former
Redevelopment Agency employees; the repayment is being made in nine equal, annual installments.
The following table summarizes the activity for the fiscal year ended June 30, 2013:
Approved
Balance Balance
Amount
June 30, 2012 Additions Retirements June 30, 2013
Unfunded Pension Liability $1,904,431
$1,904,431 $190,443 $1,713,988
Unfunded OPEB Liability 502,000
502,000 55,778 446,222
Total Long Term Obligations
E. Commitment and Contingencies
State Approval of Enforceable Obligation
$2,406,431 $246,221 $2,160,210
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, 2013, the Successor Agency had prepared four 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.
Demand for True -Up Payment
Pursuant to Health and Safety Code section 34183.5 (b), Successor Agencies are required to remit a
True -Up Payment representing a calculation of tax increment collected in December 2011 by the
former Redevelopment Agency in excess of the enforceable obligations, as approved by the County
Auditor/Controller. On July 9, 2012 the Successor Agency received a Demand from the County
Auditor/Controller that had calculated a True -Up Payment of $1,731,446. Management reviewed the
calculation and believes it is inaccurate. Management's calculation of the True -Up Payment
amounted to $148,589 and on July 12, 2012 the Successor Agency remitted that amount to the
County Auditor/Controller. The remaining unpaid balance of the Demand has not been recorded in
the accompanying financial statements as management believes its calculation is accurate.
The California State Attorney General's Office has been in contact with the Successor Agency to
inform the Successor Agency of the litigation process that will resolve the issue in the amount paid on
July 12, 2012. The City anticipates proceeding with this process during fiscal year 2013-2014.
77
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REQUIRED SUPPLEMENTAL INFORMATION
This Page Left Intentionally Blank
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.
81
CITY OF SAN RAFAEL
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2013
REVENUES
Taxes and special assessments
Licenses and permits
Fines and forfeitures
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Community development/redevelopment
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
FUND BALANCES, BEGINNING OF YEAR, as restated
FUND BALANCES, END OF YEAR
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$44,877,050
$45,373,704
$46,670,007
$1,296,303
1,685,000
1,813,000
1,929,387
116,387
714,700
714,700
734,005
19,305
148,210
173,310
228,565
55,255
6,370,308
6,370,308
6,475,596
105,288
2,099,750
2,219,750
2,079,265
(140,485)
225,000
564,489
1,910,686
1,346,197
56,120,018
57,229,261
60,027,511
2,798,250
8,274,237
9,989,088
9,087,723
901,365
33,708,233
34,259,194
33,987,636
271,558
8,892,289
8,909,453
8,875,111
34,342
2,971,296
2,971,296
2,961,275
10,021
2,231,769
2,231,768
2,200,468
31,300
44,850
172,940
170,138
2,802
23,260
438,260
194,425
243,835
283,805
283,805
56,145,934
59,255,804
57,760,581
1,495,223
(25,916)
(2,026,543)
2,266,930
4,293,473
1,485,200
3,104,622
3,104,622
(1,438,998)
(4,338,227)
(4,338,227)
46,202
(1,233,605)
(1,233,605)
$20,286
($3,260,148)
1,033,325
$4,293,473
2,771,462
$3,804,787
82
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, 2013
REVENUES
Use of money and properties
Charges for services
Total Revenues
EXPENDITURES
Current:
Public works and parks
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
Net Change in Fund Balances
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
74,543
74,649
Variance with
40
74,543
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
$19,000 $19,000
$17,226
($1,774)
$3,094,594
3,096,328
3,096,328
19,000 19,000
3,113,554
3,094,554
74,543
74,649
74,609
40
74,543
74,649
74,609
40
(55,543)
(55,649)
3,038,945
3,094,594
($55,543)
($55,649)
3,038,945
$3,094,594
9,401,096
$12,440,041
83
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, 2013
REVENUES
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works and parks
Capital outlay
Capital improvement/special projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out)
Total Other Financing Sources (Uses)
Net Change in Fund Balances
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
Budgeted Amounts
Actual
Original
Final
Amounts
$3,750
$3,750
$7,366
4,760,442
4,760,442
3,305,466
496,000
619,800
1,031,919
53,993
5,260,192
5,383,992
4,398,744
30,026
30,190
30,084
1,489,009
1,490,338
428,230
3,469,143
3,219,143
1,641,022
4,988,178
4,739,671
2,099,336
272,014
644,321
2,299,408
365
365
(440,000)
(674,521)
(674,521)
(440,000)
(674,156)
(674,156)
($167,986)
($29,835)
1,625,252
4,481,247
$6,106,499
84
Variance with
Final Budget
Positive
(Negative)
$3,616
(1,454,976)
412,119
53,993
(985,248)
106
1,062,108
1,578,121
2,640,335
1,655,087
$1,655,087
SUPPLEMENTARY INFORMATION
This Page Left Intentionally Blank
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 ad acent diked salt marsh.
Household Hazmat Facility Fund - Established to account for State mandated hazardous
materials information, collection, and reporting. Expenditures include inspection of businesses for
compliance with regulations. This fund also serves as the depository for countywide Household
Hazardous Waste Program.
Childcare Fund - Established to administer and account for childcare programs at ten sites
throughout the City.
Street Maintenance and Cleaning Fund - Established to maintain the City's streets, pubic
properties and rights of way.
Loch Lomond Assessment District Fund - Established to provide maintenance for stormwater and
geotechnical mitigation facilities. A Mello Roos District was formed to fund this maintenance.
Library Fund - Established to account for restricted library activities that are intended to be self -
funding.
Library Assessment Fund - Established to account for a special parcel tax dedicated to public
library services and facilities, equipment, and technology improvements.
Public Safety Fund - Established for special police services, which are intended to be self -funding.
Stormwater Fund - Established to provide for self -funding storm drain maintenance program plus
separate programs through the County and Bay Area to educate residents about urban runoff
pollution.
Development Services Fund - Established to account for development activities that are supported
by external sources of funds. This fund does not account for the operating costs of building,
planning, and engineering, which are located in the General Fund.
Grants Fund - Established to account for grants for the Library, Childcare, Police and Falkirk
Cultural Center.
Parkland Dedication Fund - Established to account for long-term developer deposits used to
enhance and maintain the park structure within City limits.
Emergency Medical Services Fund - Established to account for the Emergency Medical Services
and Transportation program that provides services to all segments of the community.
87
NON -MAJOR GOVERNMENTAL FUNDS (Continued)
Business Improvement Fund — Established to account for activities held in Downtown San Rafael,
such as the Farmers Market.
Sewer Maintenance Fund — Established under the terms of the JPA to provide all necessary
maintenance to the Sanitation District's gravity collection sewer system.
Pt. San Pedro Maintenance Portion Special Revenue Fund — Established to account for ongoing
maintenance needs within the Pt. San Pedro assessment district.
Low and Moderate Income Housing Special Revenue Fund — Established to account for the
activities related to the assets assumed by the City as Housing Successor to the San Rafael
Redevelopment Agency for the housing activities of the former Redevelopment Agency.
Measure A Open Space Special Revenue Fund — Established to account for the use of proceeds
distributed by the County of Marin from Measure A, as well as other supplementary matching or
City -funding for the operation or maintenance of open space, park or recreation lands.
DEBT SERVICE FUNDS
Peacock Gap Assessment District Fund — Established to accumulate funds for the payment of
principal and interest for the 1993 Bonds which matured in 2005. The proceeds were used to refund
the 1984 Bonds, which provided for the construction of public improvements in the project area.
Financing is to be provided by property tax increments generated within the specific geographic
region described by the bond assessment district.
Mariposa Assessment District Fund - Established to accumulate funds for the payment of principal
and interest for the 1993 Bond, which matured in 2008. The proceeds were used to finance the
grading and paving of Mariposa Road.
1997 Financing Authority Revenue Bonds Fund — Established to accumulate funds for the
payment of principal and interest for the 1997 Revenue Bonds which matured in 2011. The proceeds
were used to purchase the previously issued special assessment bonds. Financing is to be provided
by property tax increments generated within the specific geographic region described by the bond
assessment district.
Pt. San Pedro Debt-CIP Portion Payment Debt Services Fund — Established to accumulate funds
for payment of principal and interest for Pt. San Pedro Assessment District bonds.
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.
88
NON -MAJOR GOVERNMENTAL FUNDS (Continued)
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.
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.
89
ASSETS
Cash and investments
Restricted cash and investments
Receivables:
Accounts
Taxes
Grants
Loans
Prepaids
Total Assets
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2013
SPECIAL REVENUE FUNDS
Baypoint
Lagoons Household Street
Recreation Assessment Hazmat Maintenance
Revolving District Facility Childcare and Cleaning
$239,660 $194,238 $217,744 $78,148 $633,288
225,103
2,371
17,145
$484,279
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
$121,259
Deposits payable
Developer bonds payable
Deferred revenue
292,564
Total Liabilities
413,823
Fund Balances:
Nonspendable
17,145
Restricted
496
Committed
23,310
Assigned
29,505
Total Fund Balances
70,456
Total Liabilities and Fund Balances
$484,279
267,040
279
29,297
6,814
$194,517 $484,784 $114,259 $633,288
$244,403 $41,001
244,403 41,001
6,814
$194,517 183,123 $550,529
35,273 9,700
21,985 56,744 82,759
194,517 240,381 73,258 633,288
$194,517 $484,784 $114,259 $633,288
SPECIAL REVENUE FUNDS
Loch Lomond
Assessment Library Public Development
District Library Assessment Safety Stormwater Services Grants
$521,052 $226,967 $617,883 $171,621 $1,804,837 $846,125 $1,070,681
17,000 45,000
172
$521,224 $226,967 $617,883
8,413
225,545
$188,621 $1,813,250 $891,125 $1,296,226
$5,123
$25,219
$29,328
$8,073
$36,408
9,887
33,430
1,500
5,123
25,219
29,328
19,460
69,838
$521,224 10,383
51,469
$183,855
1,452,338
479,329
459,600
104,782
541,195
4,766
331,584
181,703
766,788
106,679
210,633
521,224 221,844
592,664
188,621
1,783,922
871,665
1,226,388
$521,224 $226,967
$617,883
$188,621
$1,813,250
$891,125
$1,296,226
(Continued)
91
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2013
Parkland
Dedication
ASSETS
Cash and investments
$847,553
Restricted cash and investments
Receivables:
Medical
Accounts
Sewer
Taxes
Services
Grants
103,077
Loans
$593,674
Prepaids
$126,651
Total Assets
$950,630
LIABILITIES AND FUND BALANCES
Liabilities:
Emergency
Accounts payable
Deposits payable
Medical
Developer bonds payable
Sewer
Deferred revenue
Services
Total Liabilities
Maintenance
Fund Balances:
$593,674
Nonspendable
$126,651
Restricted
$695,630
Committed
255,000
Assigned
45,627
Total Fund Balances
950,630
Total Liabilities and Fund Balances
$950,630
SPECIAL REVENUE FUNDS
Emergency
Pt. San Pedro
Medical
Business
Sewer
Maintenance
Services
Improvement
Maintenance
Portion
$593,674
$4,298
$126,651
$165,362
160,000
45,627
934
7,907
$807,208
$4,298
$126,651
$166,296
$62,459 $95,510
62,459 95,510
7,907
736,842 $4,298 $166,296
31,141
744,749 4,298 31,141 166,296
$807,208 $4,298 $126,651 $166,296
92
67,200
66,886
680,979
$811,319 $217,213 $2,875 $16,543 $145,826 $1,213,910
$4,840 $70,695
4,840 70,695
$217,213 $2,875 $16,543 $145,826
806,479 1,143,215
806,479 217,213 2,875 16,543 145,826 1,143,215
$811,319 $217,213 $2,875 $16,543 $145,826 $1,213,910
(Continued)
93
CAPITAL
PROJECT
SPECIAL REVENUE FUNDS
DEBT SERVICE FUNDS
FUND
Low and
1997
Pt. San Pedro
Moderate
Peacock Gap
Mariposa
Financing
Debt-CIP
Income Measure A
Assessment
Assessment
Authority
Portion
Capital
Housing Open Space
District
District
Revenue Bonds
Payment
Improvement
$130,340 $150,013
$2,875
$16,543
$145,826
$19147,024
67,200
66,886
680,979
$811,319 $217,213 $2,875 $16,543 $145,826 $1,213,910
$4,840 $70,695
4,840 70,695
$217,213 $2,875 $16,543 $145,826
806,479 1,143,215
806,479 217,213 2,875 16,543 145,826 1,143,215
$811,319 $217,213 $2,875 $16,543 $145,826 $1,213,910
(Continued)
93
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2013
ASSETS
Cash and investments
Restricted cash and investments
Receivables:
Accounts
Taxes
Grants
Loans
Prepaids
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Deposits payable
Developer bonds payable
Deferred revenue
Total Liabilities
Fund Balances:
Nonspendable
Restricted
Committed
Assigned
Total Fund Balances
Total Liabilities and Fund Balances
CAPITAL PROJECT FUNDS
Park
Bedroom Assessment
Capital Open Radio
Tax Districts
Projects Space Replacement
$21,970 $379,145
$18,446 $130,836 $580,328
76,285
$21,970 $455,430 $18,446 $130,836 $580,328
$96,066 $1,145
96,066 1,145
$21,970 302,174
57,190
12,986
4,315 $130,836 $580,328
21,970 359,364
17,301 130,836 580,328
$21,970 $455,430
$18,446 $130,836 $580,328
94
Total
Non -Major
Telephone Governmental
Replacement Funds
$236,856 $11,319,984
76,285
714,143
122,625
427,176
680,979
13,440 45,306
$250,296 $13,386,498
$39,634 $881,163
43,317
1,500
292,564
39,634 1,218,544
13,440 45,306
6,396,530
4,273,971
197,222 1,452,147
210,662 12,167,954
$250,296 $13,386,498
95
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONIVIAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2013
REVENUES
Taxes and special assessments
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation
Capital outlay
Capital improvement/special projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balance, Beginning
Fund Balance, Ending
1,428,074
SPECIAL REVENUE FUNDS
Baypoint
3,834,741
3,692,141
Lagoons
Household
Street
Recreation
Assessment
Hazmat
Maintenance
Revolving
District
Facility
Childcare
and Cleaning
3,692,141
$25,368
(1,219,655)
21,280
20,083
$139
251
$208
$84
$883
14,999
1,160,998
257,134
2,600,368
1,447,674
3,403,782
20,083
37,534
1,353
1,400
250
470
2,653,040
25,619
1,449,282
3,661,250
1,353
1,428,074
4,339
3,834,741
3,692,141
6,868
31,086
1,125
3,872,695
4,339
1,429,199
3,692,141
(1,219,655)
21,280
20,083
(30,891)
1,353
1,160,998
100,000
1,160,998
100,000
(58,657)
21,280
20,083
69,109
1,353
129,113
173,237
220,298
4,149
631,935
$70,456
$194,517
$240,381
$73,258
$633,288
Loch Lomond
Assessment
District
$15,606
1,111
16,717
54
54
16,663
(413,952)
(413,952)
(397,289)
918,513
$521,224
Library
$20,615
19,515
7,038
356
47,524
24,920
46,858
71,778
(24,254)
(24,254)
246,098
$221,844
SPECIAL REVENUE FUNDS
Library Public Development
Assessment Safety Stormwater Services
$861,498
764
862,262
830,324
830,324
31,938
31,938
560,726
$592,664
Grants
$201 $1,643 $30,124 $617
103,242 1,364,237
2,118 784,459 49,175
6,160 5,937 60,549 41,465
111,721 792,039 139,848 1,406,319
153,886
821,962
(478,787)
677,547
5,159
517,442
15,299
46,576
174,344
724,123
(62,623)
67,916
65,000
713,952
(2,221)
62,779
713,952
156
781,868
188,465
1,002,054
$188,621
$1,783,922
97
41,513
100,000
29,040
64,973
56,286 1,031,783
56,286 1,267,309
83,562 139,010
478,787
821,962
(478,787)
(304,520)
517,442
83,562
656,452
788,103
569,936
$871,665
$1,226,388
(Continued)
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2013
98
SPECIAL REVENUE FUNDS
Emergency
Pt. San Pedro -
Parkland
Medical
Business
Sewer
Maintenance
Dedication
Services
Improvement
Maintenance
Portion
REVENUES
Taxes and special assessments
$19,058
$3,804,985
$82,269
Use of money and properties
1,184
117
$9
171
Intergovernmental
Charges for services
2,384,514
$2,407,505
Other revenue
17,694
Total Revenues
20,242
6,189,616
17,703
2,407,505
82,440
EXPENDITURES
Current:
General government
17,842
Public safety
5,707,466
Public works and parks
2,188,640
2,119
Culture and recreation
8,463
Capital outlay
14,478
Capital improvement/special projects
Total Expenditures
8,463
5,721,944
17,842
2,188,640
2,119
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
11,779
467,672
(139)
218,865
80,321
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
(280,200)
(218,864)
Total Other Financing Sources (Uses)
(280,200)
(218,864)
Net Change in Fund Balances
11,779
187,472
(139)
1
80,321
Fund Balance, Beginning
938,851
557,277
4,437
31,140
85,975
Fund Balance, Ending
$950,630
$744,749
$4,298
$31,141
$166,296
98
SPECIAL REVENUE FUNDS
DEBT SERVICE FUNDS
120,905
Low and
1997
Pt. San Pedro -
Moderate Peacock Gap
Mariposa Financing
Debt-CIP
Income Measure A Assessment
Assessment Authority
Portion
Housing Open Space District
District Revenue Bonds
Payment
$67,200
$2,875 16,519 145,623 120,905
$5819 13
$24 $203
$2,875 $16,543 $145,826
291,391
297,210 67,213 24 203
1,382,402
$120,905
1,382,402
120,905
(1,085,192)
67,213
24 203 (120,905)
150,000
150,000
(1,085,192)
217,213
24 203 (120,905)
1,891,671
$2,875 16,519 145,623 120,905
$806,479
$217,213
$2,875 $16,543 $145,826
CAPITAL
PROJECT
FUNDS
Capital
Improvement
$384
480,642
481,026
1,279,822
31,945
1,311,767
(830,741)
1,753,600
1,753,600
922,859
220,356
$1,143,215
(Continued)
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2013
REVENUES
Taxes and special assessments
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation
Capital outlay
Capital improvement/special projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balance, Beginning
Fund Balance, Ending
100
CAPITAL PROJECT FUNDS
Park
Bedroom
Assessment
Capital
Open
Radio
Tax
Districts
Projects
Space
Replacement
$3,315
29
$1,552
$24
$182
$385
648,660
1,585,555
6,983
3,344
1,587,107
7,007
182
649,045
1,547,189
1,325
3,905
629,080
1,547,189
1,325
3,905
629,080
3,344
39,918
5,682
(3,723)
19,965
76,188
(365)
75,823
3,344
115,741
5,682
(3,723)
19,965
18,626
$243,623
11,619
134,559
560,363
$21,970
$359,364
$17,301
$130,836
$580,328
100
Total
Non -Major
Telephone Governmental
Replacement Funds
$4,879,299
$207 66,559
1,759,511
481,000 14,696,935
2,055,744
481,207 23,458,048
1,441,757
7,389,426
3,022,644
8,390,589
2,918,489
421,813 2,317,081
421,813 25,479,986
59,394 (2,021,938)
5,320,487
(1,698,909)
3,621,578
59,394 1,599,640
151,268 10,568,314
$210,662 $12,167,954
101
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, 2013
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 $25,000 $25,368 $368
Licenses and permits
Use of money and properties $420 $139 ($281) 330 251 (79)
Intergovernmental
14,999
14,999
Charges for services
2,638,270
2,600,368
Other revenue
8,480
37,534
Total Revenues
2,662,169
2,653,040
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation
3,778,826
3,834,741
Capital outlay
6,870
6,868
Capital improvement/special projects
86,999
31,086
Total Expenditures
3,872,695
3,872,695
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(1,210,526)
(1,219,655)
OTHER FINANCING SOURCES (USES)
Bonds issued
Transfers in
1,160,998
1,160,998
Transfers out
(60,000)
Total Other Financing Sources (Uses)
1,100,998
1,160,998
FUND BALANCES, BEGINNING OF YEAR
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
($109,528)
(58,657)
FUND BALANCES, BEGINNING OF YEAR
129,113
FUND BALANCES, END OF YEAR
$70,456
102
(37,902)
29,054
(9,129) 25,330 25,619 289
4,339 4,339
(55,915)
2
55,913
(9,129)
60,000
60,000
4,339 4,339
20,991 21,280 289
$50,871 $20,991 21,280
173,237
$194,517
$289
SPECIAL REVENUE FUNDS
Household Hazmat Facility Childcare Street Maintenance and Cleaning
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$120 $208 $88 $84 $84 $1,370 $883 ($487)
5,330 (5,330) $259,030 257,134 (1,896)
1,388,340 1,447,674 59,334 3,336,730 3,403,782 67,052
1,400 1,400 250 250 470 470
1,393,790 1,449,282 55,492 3,595,760 3,661,250 65,490 1,370 1,353 (17)
1,428,319 1,428,074 245
3,763,090 3,692,141 70,949
5,330 5,330
1,130 1,125 5
1,429,449 1,429,199 250 3,768,420 3,692,141 76,279
(35,659) 20,083 55,742 (172,660) (30,891) 141,769
100,000 100,000
100,000 100,000
($35,659) 20,083 $55,742 ($72,660) 69,109 $141,769
220,298 4,149
$240,381 $73,258
103
130
130
1,240
1,353
130
130
113
$1,240 1,353 $113
631,935
$633,288
(Continued)
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, 2013
SPECIAL REVENUE FUNDS
Loch Lomond Assessment District
Variance
Final Positive Final
Budget Actual (Negative) Budget
REVENUES
Taxes and special assessments $15,610 $15,606 ($4)
Licenses and permits
Use of money and properties 1,900 1,111 (789) $25,390
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation
Capital outlay
Capital improvement/special projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Bonds issued
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
19,515
4,000
20,000
17,510 16,717 (793) 68,905
Library
Variance
Positive
Actual (Negative)
$20,615
19,515
7,038
356
47,524
($4,775)
3,038
(19,644)
(21,381)
16,050 54 15,996
89,350 24,920 64,430
24,515 46,858 (22,343)
16,050 54 15,996 113,865 71,778 42,087
1,460 16,663 15,203 (44,960) (24,254) 20,706
(413,952) (413,952)
(413,952) (413,952)
($412,492) (397,289) $15,203
918,513
$521,224
104
($44,960) (24,254) $20,706
246,098
$221,844
105
SPECIAL REVENUE FUNDS
153,886
7,960
Library Assessment
Public Safety
Stormwater
1,052,117
677,547
374,570
Variance
830,324
3
Variance
Variance
Final
Positive
Final
Positive
Final
Positive
Budget
Actual
(Negative)
Budget
Actual
(Negative)
Budget
Actual
(Negative)
$886,500
$861,498
($25,002)
830,324
3
179,455
174,344
5,111
1,152,117
724,123
427,994
57,073
31,938
(25,135)
(114,015)
$5,000
51,392
($5,000)
$900
764
(136)
$340
$201
($139)
2,200
$1,643
(557)
713,952
65,100
103,242
38,142
(2,221)
2,118
2,118
793,000
784,459
(8,541)
713,952
$57,073
31,938
6,160
6,160
156
5,937
5,937
887,400
862,262
(25,138)
65,440
111,721
46,281
800,200
792,039
(8,161)
105
161,846
153,886
7,960
1,052,117
677,547
374,570
830,327
830,324
3
5,159
5,159
12,450
15,299
(2,849)
100,000
46,576
53,424
830,327
830,324
3
179,455
174,344
5,111
1,152,117
724,123
427,994
57,073
31,938
(25,135)
(114,015)
(62,623)
51,392
(351,917)
67,916
419,833
65,000
65,000
713,952
713,952
(2,221)
(2,221)
62,779
62,779
713,952
713,952
$57,073
31,938
($25,135)
($51,236)
156
$51,392
$362,035
781,868
$419,833
560,726
188,465
1,002,054
$592,664
$188,621
$1,783,922
(Continued)
105
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, 2013
SPECIAL REVENUE FUNDS
Development Services
Variance
Final Positive Fina
Budget Actual (Negative) Budg
REVENUES
Taxes and special assessments
Licenses and permits
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation
Capital outlay
Capital improvement/special projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Bonds issued
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
$26,100 $30,124
$4,024
49,175
49,175
60,549
60,549
26,100 139,848
113,748
$2,040
Parkland Dedication
Variance
Positive
Actual
(Negative)
$19,058
$19,058
1,184
(856)
2,040 20,242 18,202
8,500 8,463 37
$150,000 150,000
56,300 56,286 14
56,300 56,286 14 158,500 8,463 150,037
(30,200) 83,562 $113,762 (156,460) 11,779 168,239
478,787 478,787
(478,787) (478,787)
($30,200) 83,562 $113,762
788,103
$871,665
106
($156,460) 11,779 $168,239
938,851
$950,630
(280,200) (280,200)
(280,200) (280,200)
(218,864) (218,864)
(218,864) (218,864)
$128,437 187,472 $59,035 $20 (139) ($159) $8,636 1 ($8,635)
557,277 4,437 31,140
$744,749 $4,298 $31,141
(Continued)
107
SPECIAL REVENUE FUNDS
Emergency Medical Services
Business Improvement
Sewer Maintenance
Variance
Variance
Variance
Final
Positive
Final
Positive
Final
Positive
Budget
Actual
(Negative)
Budget
Actual
(Negative)
Budget
Actual
(Negative)
$3,882,520
$3,804,985
($77,535)
280
117
(163)
$20
$9
($11)
2,300,000
2,384,514
84,514
$2,502,442
$2,407,505
($94,937)
22,520
17,694
(4,826)
6,182,800
6,189,616
6,816
22,540
17,703
(4,837)
2,502,442
2,407,505
(94,937)
22,520
17,842
4,678
5,768,163
5,707,466
60,697
2,274,942
2,188,640
86,302
6,000
14,478
(8,478)
5,774,163
5,721,944
52,219
22,520
17,842
4,678
2,274,942
2,188,640
86,302
408,637
467,672
59,035
20
(139)
(159)
227,500
218,865
(8,635)
(280,200) (280,200)
(280,200) (280,200)
(218,864) (218,864)
(218,864) (218,864)
$128,437 187,472 $59,035 $20 (139) ($159) $8,636 1 ($8,635)
557,277 4,437 31,140
$744,749 $4,298 $31,141
(Continued)
107
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, 2013
REVENUES
Taxes and special assessments
Licenses and permits
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation
Capital outlay
Capital improvement/special projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Bonds issued
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
SPECIAL REVENUE FUNDS
Pt. San Pedro -Maintenance Portion
Low and Moderate Income Housing
Variance
Variance
Final Positive
Final Positive
Budget Actual (Negative)
Budget Actual (Negative)
$88,600 $82,269 ($6,331)
(1,085,192)
171 171
$5,819 $5,819
291,391
88,600 82,440 (6,160) 297,210 5,819
$1,456,845 1,382,402 74,443
2,282 2,119 163
2,282
2,119
163
1,456,845
1,382,402
74,443
86,318
80,321
(5,997)
(1,456,845)
(1,085,192)
371,653
$86,318 80,321
85,975
$166,296
108
($5,997) ($1,456,845) (1,085,192) $371,653
1,891,671
$806,479
SPECIAL REVENUE FUNDS
DEBT SERVICE FUNDS
Measure A
Mariposa Assessment District
1997 Financing Authority Revenue Bonds
Variance
Variance
Variance
Final Positive
Final Positive
Final
Positive
Budget Actual (Negative)
Budget Actual (Negative)
Budget
Actual (Negative)
$67,200 $67,200
13 $13
$40 $24 ($16)
$310
$203 ($107)
67,213 67,213 40 24 (16) 310 203 (107)
67,213 67,213 40 24 (16) 310 203 (107)
$150,000 150,000
150,000 150,000
$150,000 217,213 $67,213 $40 24 ($16) $310 203 ($107)
16,519 145,623
$217,213 $16,543 $145,826
(Continued)
109
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, 2013
REVENUES
Taxes and special assessments
Licenses and permits
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works and parks
Culture and recreation
Capital outlay
Capital improvement/special projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Bonds issued
Transfers in
Transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES AND USES OVER
(UNDER) EXPENDITURES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
DEBT SERVICE FUNDS
Pt. San Pedro-Debt-CIP Payment
Variance
Final Positive
Budget Actual (Negative)
$124,600 ($124,600)
124,600 (124,600)
120,906 $120,905 1
120,906 120,905 1
3,694 (120,905) ($124,599)
1,750,000
(1,585,555)
164,445
$168,139 (120,905)
120,905
110
(1,750,000)
1,585,555
(164,445)
($289,044)
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.
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.
111
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2013
112
Building
Employee
Liability
Workers'
Maintenance
Benefits
Insurance
Compensation
ASSETS
Current Assets:
Cash and investments
$2,431,599
$740,698
$1,377,886
$5,205,995
Accounts receivable
189,908
Due from other funds
Prepaids
3,522
3,639
Net Pension Asset (Note 9)
Net OPEB Asset
Total Assets
2,435,121
740,698
1,377,886
5,399,542
LIABILITIES
Current Liabilities:
Accounts payable
58,343
10,419
13,760
Claims payable - due in one year
512,376
1,426,924
Non-current Liabilities:
Claims payable - due in more than one year
590,411
3,385,638
Total Liabilities
58,343
10,419
1,102,787
4,826,322
NET POSITION:
Restricted
Unrestricted
2,376,778
730,279
275,099
573,220
Total Net Position
$2,376,778
$730,279
$275,099
$573,220
112
OPEB/
Dental Employee Retiree
Insurance Retirement Medical
$135,058 $1,032,541 $613,496
191,509
748,239
450
1,000,000
4,512,141
135,058 2,780,780 5,317,596
3,715 20,062
3,715 20,062
1,000,000 4,512,141
131,343 1,780,780 785,393
$131,343 $2,780,780 $5,297,534
Total
$11,537,273
381,417
748,239
7,611
1,000,000
4,512,141
18,186,681
106,299
1,939,300
3,976,049
6,021,648
5,512,141
6,652,892
$12,165,033
113
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 305 2013
OPERATING REVENUES
Charges for current services
Other operating revenues
Total Operating Revenues
OPERATING EXPENSES
Insurance premiums and claims
Maintenance and repairs
General and administrative
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Investment income
Interest expense
Total Nonoperating
Revenues (Expenses)
Net income (loss) before transfers
Transfers in
Transfers out
Change in Net Position
NET POSITION, BEGINNING OF YEAR
NET POSITION, END OF YEAR
Building
Employee
Liability
Workers'
Maintenance
Benefits
Insurance
Compensation
$1,614,190
$700,000
$1,569,880
$1,972,083
11,300
101,040
1,625,490
700,000
1,670,920
1,972,083
739,636
380,000
(868,977)
1,307,005
199,484
$730,279
$275,099
$573,220
669,391
173,068
98,739
199,484
669,391
(695,909)
1,405,744
1,426,006
30,609
2,366,829
566,339
1,136
670
3,783
6,881
1,136
670
3,783
6,881
1,427,142
31,279
2,370,612
573,220
583,600
319,000
(373,600)
(2,095,513)
1,637,142
350,279
275,099
573,220
739,636
380,000
$2,376,778
$730,279
$275,099
$573,220
114
379
4,077
OPEB/
Dental
Employee
Retiree
Insurance
Retirement
Medical
$495,588
(500,000)
$2,283,332
8,490
(221,410)
1,014,905
504,078
3,002,190
3,298,237
380,610
$2,780,780
3,496,522
$2,000
380,610
2,000
3,496,522
123,468
(2,000)
(198,285)
379
4,077
850,135
379
4,077
850,135
123,847
2,077
651,850
276,513
700,000
(200,000)
(500,000)
(76,153)
(221,410)
1,351,850
207,496
3,002,190
3,945,684
$131,343
$2,780,780
$5,297,534
Total
$8,635,073
1,135,735
9,770,808
4,315,160
199,484
943,198
5,457,842
4,312,966
867,061
867,061
5,180,027
1,879,113
(3,169,113)
3,890,027
8,275,006
$12,165,033
115
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds
Cash payments to suppliers for goods and services
Other operating revenues
Payment to Pension Trust
Payment to OPEB Trust
Cash Flows from Operating Activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts (payments)
Interest expense
Cash Flows from Noncapital
Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Investment received
Proceeds from sale of investments
Cash Flows from Investing Activities
Net increase (decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)
Net change in assets and liabilities:
Accounts receivable
Prepaids and deposits
Net Pension Asset
Net OPEB Asset
Accounts payable
Claims payable
Net Cash Provided by (Used in) Operating Activities
Building
Employee
Liability
Workers'
Maintenance
Benefits
Insurance
Compensation
$1,614,190
$772,938
$1,569,880
$1,782,175
(150,576)
(673,998)
(789,647)
(1,310,694)
11,300
322,088
101,040
4,727,633
1,474,914 98,940 881,273 471,481
210,000 319,000 (2,095,513)
210,000
319,000
(2,095,513)
$566,339
1,136
670
3,783
6,881
1,136
670
3,783
6,881
1,686,050
418,610
(1,210,457)
478,362
745,549
322,088
2,588,343
4,727,633
$2,431,599
$740,698
$1,377,886
$5,205,995
$1,426,006
$30,609
$2,366,829
$566,339
72,938
(189,908)
(3,522)
(3,639)
52,430
(4,607)
(7,179)
4,325
(1,478,377)
94,364
$1,474,914
$98,940
$881,273
$471,481
116
(200,000) (971,726) 700,000 (2,038,239)
(200,000) (971,726) 700,000 (2,038,239)
379 4,077
379
4,077
OPEB/
(1,969,649)
Dental
Employee
Employee
$1,032,541
Insurance
Retirement
Retirement
Total
$495,588
$2,091,823
$8,326,594
(380,569)
($2,000)
(3,476,910)
(6,784,394)
8,490
1,014,905
1,135,735
(1,000,000)
(1,000,000)
(4,512,141)
(4,512,141)
123,509
(1,002,000)
(4,882,323)
(2,834,206)
(200,000) (971,726) 700,000 (2,038,239)
(200,000) (971,726) 700,000 (2,038,239)
379 4,077
379
4,077
(76,112)
(1,969,649)
211,170
3,002,190
$135,058
$1,032,541
850,135
867,061
3,584,164
3,584,164
4,434,299
4,451,225
251,976
(421,220)
361,520
11,958,493
$613,496
$11,537,273
$123,468 ($2,000) ($198,285) $4,312,966
(191,509) (308,479)
(450) (7,611)
(1,000,000) (1,000,000)
(4,512,141) (4,512,141)
41 20,062 65,072
(1,384,013)
$123,509 ($1,002,000) ($4,882,323) ($2,834,206)
117
This Page Left Intentionally Blank
AGENCY FUNDS
Agency Funds account of assets held by the City as agent for individuals, governmental entities, and non-
public organizations.
Pt. San Pedro Road Assessment District Fund - Established to accumulate funds for payment of
principal and interest for Pt. San Pedro Road Median Landscaping Assessment District bonds.
119
CITY OF SAN RAFAEL
AGENCY FUNDS
COMBINING STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED JUNE 30, 2013
Balance Balance
June 30, 2012 Additions Deductions June 30, 2013
Pt. San Pedro Road Assessment District
Assets
Restricted cash and investments $300,578 $300,578
Taxes Receivable 1,486 1,486
Total Assets $302,064 $302,064
Liabilities
Due to bondholders $302,064 $302,064
Total Liabilities $302,064 $302,064
Balance Balance
June 30, 2012 Additions Deductions June 30, 2013
Total Agency Fund
Assets
Restricted cash and investments $300,578 $300,578
Taxes Receivable 1,486 1,486
Total Assets $302,064 $302,064
Liabilities
Due to bondholders $302,064 $302,064
Total Liabilities $302,064 $302,064
120
Terra Linda Community Pool
STATISTICAL SECTION
This Page Left Intentionally Blank
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 Direct and 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.
123
$290,000
$240,000
$190,000
$140,000
$90,000
$40,000
($10,000)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
CITY OF SAN RAFAEL
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
®Net of Related Debt ®Restricted ■Unrestricted
124
As of June 30
2004
2005
2006
2007
Governmental activities
Invested in capital assets,
net of related debt
$202,215,793
$194,658,126
$175,806,100
$171,849,149
Restricted
2,708,397
2,378,641
620,889
31,124,935
Unrestricted
9,775,565
14,167,627
32,739,318
4,499,136
Total governmental activities net position
$214,699,755
$211,204,394
$209,166,307
$207,473,220
Business -type activities
Invested in capital assets,
net of related debt
$8,749,750
$8,615,483
$9,819,435
$9,717,501
Unrestricted
1,447,467
1,900,504
2,113,659
2,226,838
Total business -type activities net position
$10,197,217
$10,515,987
$11,933,094
$11,944,339
Primary government
Net Investments in capital assets
$210,965,543
$203,273,609
$185,625,535
$181,566,650
Restricted
2,708,397
2,378,641
620,889
31,124,935
Unrestricted
11,223,032
16,068,131
34,852,977
6,725,974
Total primary government net position
$224,896,972
$221,720,381
$221,099,401
$219,417,559
124
$10,130,329
$11,243,637
As of June 30
$10,793,592
$10,650,558
$10,670,190
2008
2009
2010
2011
2012
2013
$176,724,820
$178,744,119
$173,536,144
$174,281,922
$192,361,245
$193,222,791
26,848,900
25,721,231
26,150,254
21,322,937
24,693,205
35,780,412
4,273,937
(700,985)
(4,631,276)
(8,170,324)
10,652,263
11,151,318
$207,847,657
$203,764,365
$195,055,122
$187,434,535
$227,706,713
$240,154,521
$10,130,329
$11,243,637
$10,950,825
$10,793,592
$10,650,558
$10,670,190
2,471,117
1,936,958
2,017,354
1,948,447
2,495,889
2,501,498
$12,601,446
$13,180,595
$12,968,179
$12,742,039
$13,146,447
$13,171,688
$186,855,149
$189,987,756
$184,486,969
$185,075,514
$203,011,803
$203,892,981
26,848,900
25,721,231
26,150,254
21,322,937
24,693,205
35,780,412
6,745,054
1,235,973
(2,613,922)
(6,221,877)
13,148,152
13,652,816
$220,449,103
$216,944,960
$208,023,301
$200,176,574
$240,853,160
$253,326,209
125
Expenses
Governmental Activities:
General government
Public safety
Public works and parks
Community development
Culture and recreation
Interest on long-term debt and fiscal charges
Total Governmental Activities Expenses
Business -Type Activities:
Parking services
Total Business -Type Activities Expenses
Total Primary Government Expenses
Component Unit:
San Rafael Sanitation District
Program Revenues
Governmental Activities:
Charges for services:
General government
Public safety
Public works and parks
Community development
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total Government Activities Program Revenues
Business -Type Activities:
Charges for services:
Parking services
Total Business -Type Activities Program Revenues
Total Primary Government Program Revenues
Component Unit:
Charges for services:
San Rafael Sanitation District
Net (Expense)/Revenue
Governmental Activities
Business -Type Activities
Total Primary Government Net Expense
Component Unit Activities
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2004 2005 2006
$5,074,335
30,453,108
16,043,092
3,921,422
7,444,339
2,516,659
65,452,955
$5,895,390
32,891,692
16,820,453
4,624,345
8,450,017
2,129,818
70,811,715
$6,252,533
33,178,537
23,401,246
4,194,249
8,652,445
1,725,559
77,404,569
1,539,441
2,451,941
2,761,511
1,539,441
2,451,941
2,761,511
$66,992,396
$73,263,656
$80,166,080
$5,297,737
$5,288,582
$6,148,915
$1,487,595
2,203,371
2,697,858
1,982,211
3,960,777
5,252,820
573,485
18,158,117
$1,831,269
4,315,141
3,298,076
1,974,527
3,924,360
3,321,135
606,589
19,271,097
$402,094
5,085,679
3,799,861
3,190,832
4,368,274
2,745,570
3,936,474
23,528,784
2,307,432
2,604,066
3,025,380
2,307,432
2,604,066
3,025,380
$20,465,549
$21,875,163
$26,554,164
$5,811,437
$6,060,993
$6,340,773
($47,294,838)
767,991
($46,526,847)
$513,700
126
($51,540,618)
152,125
($51,388,493)
$772,411
($53,875,785)
263,869
($53,611,916)
$191,858
2007
$8,908,433
37,271,272
20,998,749
4,384,408
9,729,485
2,183,683
83,476,030
3,110,254
3,110,254
$86,586,284
$6,656,432
$1,512,814
5,279,785
4,030,060
2,815,009
4,521,004
3,701,901
2,786,761
24,647,334
3,242,046
3,242,046
$27,889,380
$7,857,916
($58,828,696)
131,792
($58,696,904)
$1,201,484
2008
2009
2010
2011
2012
2013
$8,621,079
$8,075,344
$8,396,759
$8,269,846
$10,171,332
$10,202,530
40,845,347
42,708,538
42,752,033
44,735,486
39,876,910
41,966,065
22,105,367
23,036,676
17,401,923
17,408,038
17,423,033
17,695,164
5,811,866
5,759,171
6,738,873
7,804,650
4,587,557
3,403,158
10,300,230
11,505,896
11,139,225
11,487,999
11,020,663
11,330,058
1,989,620
1,907,229
2,200,024
1,621,605
1,224,991
283,805
89,673,509
92,992,854
88,628,837
91,327,624
84,304,486
84,880,780
3,282,235
3,563,235
4,016,198
3,785,751
3,446,482
3,545,387
3,282,235
3,563,235
4,016,198
3,785,751
3,446,482
3,545,387
$92,955,744
$96,556,089
$92,645,035
$95,113,375
$87,750,968
$88,426,167
$8,090,636
$9,143,977
$9,087,354
$9,677,630
$10,185,779
$10,169,082
$1,494,784
$1,738,685
$1,665,460
$1,636,542
$1,986,791
$2,655,749
5,562,072
5,906,445
6,308,912
6,167,925
7,122,396
6,478,321
4,983,288
4,753,817
3,916,874
4,141,103
5,214,267
7,837,472
3,247,024
2,915,872
2,830,179
2,676,663
3,255,367
3,984,204
4,870,884
5,253,683
5,280,458
5,362,497
5,873,147
6,075,129
3,463,616
3,544,248
3,721,055
3,651,902
3,158,281
4,085,073
3,239,509
7,311,173
2,116,906
1,857,670
2,705,696
5,876,993
26,861,177
31,423,923
25,839,844
25,494,302
29,315,945
36,992,941
4,161,936
4,454,490
4,244,404
4,011,333
3,901,175
3,990,706
4,161,936
4,454,490
4,244,404
4,011,333
3,901,175
3,990,706
$31,023,113
$35,878,413
$30,084,248
$29,505,635
$33,217,120
$40,983,647
$9,366,305
$10,567,647
$11,559,549
$12,223,779
$12,368,889
$12,413,123
($62,812,332)
($61,568,931)
($62,788,993)
($65,833,322)
($54,988,541)
($47,887,839)
879,701
891,255
228,206
225,582
454,693
445,319
($61,932,631)
($60,677,676)
($62,560,787)
($65,607,740)
($54,533,848)
($47,442,520)
$1,275,669
$1,423,670
$2,472,195
$2,546,149
$2,183,110
$2,244,041
127
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
128
2004
2005
2006
2007
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property
$14,895,188
$17,385,722
$20,848,887
$20,360,475
Sales
17,166,966
17,132,100
18,188,524
24,484,356
Special assessments
3,329,680
3,642,184
3,017,488
2,998,925
Paramedic
Motor vehicles
2,495,598
4,657,817
372,726
331,620
Transient occupancy
Franchise
Business license
Other
5,476,044
5,151,205
6,963,448
8,830,955
Investment earnings
809,242
1,112,548
1,248,409
1,669,181
Gain (Loss) on disposal of assets
Miscellaneous
498,200
876,907
361,195
491,488
Special item - Court fines repayment
(1,133,458)
Transfers
142,970
15,720
201,191
212,170
Total Government Activities
44,813,888
49,974,203
51,201,868
58,245,712
Business -Type Activities:
Investment earnings
29,534
28,522
44,536
91,623
Aid from other government agencies
40,735
1,309,893
Transfers
(142,970)
(15,720)
(201,191)
(212,170)
Total Business -Type Activities
(113,436)
53,537
1,153,238
(120,547)
Total Primary Government
$44,700,452
$50,027,740
$52,355,106
$58,125,165
Component Unit:
San Rafael Sanitation District
Property Taxes
$591,078
$125,959
$179,479
$755,763
Investment earnings
75,739
117,348
237,206
367,887
Miscellaneous
154,919
Aid from other governmental agencies
609,419
645,804
340,642
Total Component Unit
$821,736
$852,726
$1,062,489
$1,464,292
Change in Net Position
Governmental Activities
($2,480,950)
($1,566,415)
($2,673,917)
($582,984)
Business -Type Activities
654,555
205,662
1,417,107
11,245
Total Primary Government
($1,826,395)
($1,360,753)
($1,256,810)
($571,739)
Change in Net Position
Component Unit Activities
$1,335,436
$1,625,137
$1,254,347
$2,665,776
128
2008 2009 2010 2011 2012 2013
$22,195,606
$21,978,859
$21,684,131
$21,632,733
$20,107,637
$17,317,772
25,764,457
21,970,262
19,055,124
21,623,445
22,355,749
24,262,282
3,503,555
3,210,317
3,489,494
3,661,064
3,807,545
3,804,985
257,320
197,989
171,518
297,425
1,678,912
1,558,243
1,644,262
1,866,575
2,185,287
2,941,149
2,868,332
2,990,539
3,076,094
3,331,160
2,405,934
2,317,664
2,296,460
2,332,146
2,507,785
9,242,241
1,561,835
1,411,583
1,930,531
3,574,918
2,929,915
1,583,056
717,968
302,180
176,502
205,413
991,762
221,791
296,454
461,224
541,390
1,496,174
542,816
2,580,882
344,080
361,190
458,300
463,600
57,960
423,817
63,186,769
57,485,639
54,079,750
58,212,735
57,926,853
60,335,647
121,486
49,084
17,678
11,878
7,675
3,739
(344,080)
(361,190)
(458,300)
(463,600)
(57,960)
(423,817)
(222,594)
(312,106)
(440,622)
(451,722)
(50,285)
(420,078)
$62,964,175
$57,173,533
$53,639,128
$57,761,013
$57,876,568
$59,915,569
$803,071
$855,511
$823,187
$1,214,519
$1,192,566
$1,177,469
341,032
206,752
93,274
59,265
38,191
25,591
3,546
3,540
577,860
381,144
415,391
6,499
9,613
56,589
$1,725,509
$1,446,947
$1,331,852
$1,280,283
$1,240,370
$1,259,649
$374,437
($4,083,292)
($8,709,243)
($7,620,587)
($2,938,312)
$12,447,808
657,107
579,149
(212,416)
(226,140)
(404,408)
25,241
$1,031,544
($3,504,143)
($8,921,659)
($7,846,727)
($3,342,720)
$12,473,049
$3,001,178
$2,870,617
$3,804,047
$3,826,432
$3,423,480
$3,503,690
129
CITY SAN RAFAEL
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Thousands
$55,000 -
$45,000
$35,000
$25,000
$15,000 = _ =
$5,000
($5,000)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
General Fund
Pre -GASB 54 Presentation:
Reserved
Unreserved
GASB 54 Presentation:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General Fund
All Other Governmental Funds
Pre -GASB 54 Presentation:
Reserved
Unreserved, reported in:
Special Revenue Funds
Capital Project Funds
Debt Service Funds
Expendable Trust Fund
GASB 54 Presentation:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
■Total Fund Balance
2004
2005
2006
2007
2008
$1,451,036
$2,442,881
$2,335,391
$905,068
$2,196,153
4,246,152
5,779,680
3,362,151
5,016,929
4,022,612
$5,697,188
$8,222,561
$5,697,542
$5,921,997
$6,218,765
$32,471,197
$26,599,557
$21,603,724
$20,773,760
$17,599,142
5,574,048
5,628,187
7,168,753
8,107,477
7,413,808
35,430
4,734,986
3,315,764
$38,045,245
$32,227,744
$28,772,477
$33,616,223
$28,364,144
(a) The change in total fund balance for the General Fund and other governmental funds
is explained in Management's Discussion and Analysis.
130
$16,680,568
8,641,239
(1,030,293)
3,360,540
$15,352,723
8,778,027
4,527,627
$27,652,054 $28,658,377
$377,180
19,289,367
3,864,322
4,124,029
$27,654,898
$788,031
16,856,959
5,135,257
5,283,559
$28,063,806
131
$51,521
20,769,546
8,447,495
6,511,850
$35,780,412
As of June 30
2009
2010
2011
2012
2013
$2,225,775
$1,763,622
1,670,455
5,038,173
$589,833
$527,509
$527,235
200,238
76,188
555,561
651,121
800,876
5,439,879
1,516,644
2,476,676
$3,896,230
$6,801,795
$6,785,511
$2,771,462
$3,804,787 (a)
$16,680,568
8,641,239
(1,030,293)
3,360,540
$15,352,723
8,778,027
4,527,627
$27,652,054 $28,658,377
$377,180
19,289,367
3,864,322
4,124,029
$27,654,898
$788,031
16,856,959
5,135,257
5,283,559
$28,063,806
131
$51,521
20,769,546
8,447,495
6,511,850
$35,780,412
CITY OF SAN RAFAEL
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
132
2004
2005
2006
2007
2008
Revenues
Taxes and special assessments
$40,875,826
$42,901,520
$44,901,544
$52,472,246
$56,129,195
Licenses and permits
928,303
929,993
1,175,030
1,157,981
1,489,748
Fines and forfeitures
791,975
1,088,459
622,494
515,528
797,081
Use of money and properties
1,024,199
1,244,406
1,316,558
1,744,688
1,584,508
Intergovernmental
8,049,002
10,522,095
11,705,917
12,760,496
12,081,968
Charges for services
10,423,754
11,407,622
13,104,572
13,504,621
15,607,460
Other revenue
735,976
1,135,485
1,475,078
1,468,743
815,704
Total Revenues
62,829,035
69,229,580
74,301,193
83,624,303
88,505,664
Expenditures
Current:
General government
5,014,452
5,539,191
6,200,338
8,188,999
8,288,170
Public safety
28,863,197
31,784,872
33,321,967
36,264,321
40,299,862
Public works and parks
9,257,991
9,294,419
10,622,585
11,972,537
13,641,665
Community development
3,875,542
3,763,614
4,184,084
4,319,042
5,786,661
Culture and recreation
7,145,264
7,538,607
8,409,833
9,005,370
9,820,365
Capital outlay
31,703
1,027,267
60,411
6,716,630
6,243,517
Capital improvement / special projects
9,825,103
9,253,661
13,200,872
1,189,613
5,124,091
Debt service:
Capitalized lease obligation
10,775
141,197
130,315
Principal
2,360,000
2,585,000
2,525,000
2,287,255
2,504,370
Interest and fiscal charges
2,456,357
2,140,673
1,878,265
1,829,091
1,776,354
Total Expenditures
68,840,384
73,068,501
80,533,670
81,772,858
93,485,055
Excess (deficiency) of revenues over
(under) expenditures
(6,011,349)
(3,838,921)
(6,232,477)
1,851,445
(4,979,391)
Other Financing Sources (Uses)
Issuance of debt
Payment to refunded bonds
Bond premiums
Capital lease for equipment acquisition
318,000
Contribution from Sanitation District
Proceeds from sale of capital asset
Transfers in
5,222,868
8,636,544
6,925,107
6,812,260
6,353,216
Transfers (out)
(4,979,898)
(7,740,324)
(6,672,916)
(6,958,046)
(6,329,136)
Total other financing sources (uses)
242,970
896,220
252,191
172,214
24,080
Extraordinary Item
Transfer to Successor Agency
Net Change in fund balances
($5,768,379)
($2,942,701)
($5,980,286)
$2,023,659
($4,955,311)
Debt service as a percentage of
noncapital expenditures
35.1%
8.2%
7.8%
6.7%
5.6%
132
8,059,526
Fiscal Year Ended
June 30,
8,783,873
10,529,480
2009
2010
2011
2012
2013
$51,019,143
$47,678,541
$51,448,130
$51,395,116
$51,549,306
1,472,913
1,518,819
1,416,772
1,648, 890
1,929,3 87
660,338
787,411
862,820
801,758
734,005
847,120
433,874
380,720
315,561
325,043
17,518,670
13,001,703
11,864,127
10,537,396
11,869,889
16,384,265
15,787,325
15,888,750
19,649,433
23,575,374
759,320
716,760
1,026,845
870,957
4,092,411
88,661,769
79,924,433
82,888,164
85,219,111
94,075,415
8,059,526
7,997,067
6,863,142
8,783,873
10,529,480
41,209,972
39,574,091
40,967,352
39,311,551
41,377,062
12,926,646
10,731,669
10,666,176
11,518,822
12,002,448
5,572,079
4,398,594
4,527,351
3,755,504
2,961,275
10,233,361
9,605,684
10,067, 822
10,345,673
10,591,057
5,048,044
1,890,559
1,745,483
1,312,383
4,009,454
6,606,857
3,436,608
6,240,861
3,604,171
5,284,720
2,714,358
2,804,258
2,530,338
2,518,320
1,683,240
1,979,372
1,448,910
735,221
283,805
94,054,083
82,417,902
85,057,435
81,885,518
87,039,301
(5,392,314)
(2,493,469)
(2,169,271)
3,333,593
7,036,114
14,660,000
(14,315,000)
1,038,185
221,791
8,972,495
7,494,560
5,806,834
4,539,646
8,425,474
(6,614,806)
(6,411,150)
(4,657,326)
(4,864,293)
(6,711,657)
2,357,689
2,688,386
1,149,508
(324,647)
1,713,817
(2,352,584)
($3,034,625)
$194,917
($1,019,763)
$656,362
$8,749,931
5.2%
5.3%
5.2%
4.2%
0.4%
133
CITY OF SAN RAFAEL
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
$12,000
$10,000 A
$8,000
$6,000
$4,000
$2,000
$o
r_ a K 9 yj
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
—0—Unsecured Property m-s—Secured Property)
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)
2004 $5,160,984,286 $1,514,445,365 $130,514,420 $91,737,340 $6,897,681,411 $431,291,562 $7,328,972,973 $7,328,972,973 0.20661%
2005 5,510,630,728 1,546,579,852 146,822,250 93,875,824 7,297,908,654 406,163,129 7,704,071,783 7,704,071,783 0.19903%
2006 6,018,318,932 1,618,091,589 177,974,231 91,321,393 7,905,706,145 407,016,133 8,312,722,278 8,312,722,278 0.19349%
2007 6,544,841,348 1,745,483,576 197,040,979 122,977,950 8,610,343,853 376,890,454 8,987,234,307 8,987,234,307 0.18087%
2008 7,024,610,641 1,824,656,505 214,341,528 105,409,028 9,169,017,702 362,727,209 9,531,744,911 9,531,744,911 0.17718%
2009 7,357,121,277 1,941,927,620 234,669,841 129,177,656 9,662,896,394 374,976,613 10,037,873,007 10,037,873,007 0.17951%
2010 7,335,863,721 2,052,276,292 244,857,019 130,177,994 9,763,175,026 401,201,906 10,164,376,932 10,164,376,932 0.19215%
2011 7,215,965,203 2,056,985,417 247,409,955 124,426,487 9,644,787,062 383,414,952 10,028,202,014 10,028,202,014 0.17851%
2012 7,317,280,602 2,036,262,351 247,485,238 118,579,648 9,719,607,839 384,950,872 10,104,558,711 10,104,558,711 0.17827%
2013 7,265,617,525 1,987,170,644 245,917,096 115,453,836 9,614,159,101 384,534,108 9,998,693,209 9,998,693,209 0.17456%
Source: HdL Coren & Cone, Marin County Assessor 2003/04-2012/13 Combined Tax Rolls
(a) 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.
(b) 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.
134
CITY OF SAN RAFAEL
PROPERTY TAX RATES
ALL OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Fiscal
School
Misc. Special
Year
City
County (1)
Districts
Districts
Total
2004
0.154
0.295
0.6483
0.0461
1.1430
2005
0.154
0.295
0.6593
0.0461
1.1540
2006
0.154
0.295
0.6828
0.0461
1.1775
2007
0.154
0.295
0.7160
0.0461
1.2107
2008
0.154
0.295
0.7225
0.0461
1.2172
2009
0.154
0.295
0.7192
0.0461
1.2139
2010
0.154
0.295
0.7402
0.0461
1.2349
2011
0.154
0.295
0.7542
0.0461
1.2489
2012
0.154
0.295
0.7831
0.0461
1.2779
2013
0.154
0.295
0.7743
0.0461
1.2691
Notes:
(1) Like other cities, San Rafael includes several property tax rate areas with different rates. A mean average is indicated.
Source: Marin County Assessors Office 2003/04 - 2012/13 Tax Rate Tables
135
CITY OF SAN RAFAEL
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
Taxpayer
Northgate Mall Associates
SR Corporation Center Phase Two
SR Corporation Center Phase 1 LLC
Sutter Health
Robert Dickson Trust
Regency Center Associates
Northbay Properties 11
Bay Apartment Communities
Marin Sanitary Service
Rafael Town Center Investors
AMG Realty Partners LP
Lucas Digital Ltd. LLC
4040 Civic Center LLC
BIT Holdings Forty -Five Inc.
Subtotal
Total Net Assessed Valuation:
Fiscal Year 2012-2013
Fiscal Year 2003-2004
2012-13
Percentage
of Total City
Taxable Taxable
Assessed Assessed
Value Value
$135,444,524
70,306,032
52,500,001
49,632,065
45,189,250
42,728,882
42,394,545
40,340,145
38,365,767
35,497,775
$552,398,986
$9,998,693,209
$7,328,966,973
136
1.35%
0.70%
0.53%
0.50%
0.45%
0.43%
0.42%
0.40%
0.38%
0.36%
2003-2004
Percentage
of Total City
Taxable Taxable
Assessed Assessed
Value Value
$81,047,490 1.11%
43,598,607 0.59%
37,050,248
30,736,645
31,229,307
29,399,739
0.51%
0.42%
0.43%
0.40%
69,880,258
0.95%
34,113,865
0.47%
34,783,073
0.47%
28,901,905
0.39%
5.52% $420,741,137
5.74%
CITY OF SAN RAFAEL
PROPERTY TAX LEVIES AND COLLECTIONS (i)
LAST TEN FISCAL YEARS
$25
0
0
$22 -
$19
—a, —Allocations
$16
— Apportionments
$12
$9
$6
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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.
Source: San Rafael Finance Department Revenue Reports
137
Delinquent taxes
Fiscal
as a Percent of
Year
Rate
Levies
Allocations
Collections ApportionmentsDelinquencies
Allocations
2004
1.00
(2)
$14,895,188
(2)
$14,895,188
(2)
0.0%
2005
1.00
(2)
17,385,722
(2)
17,385,722
(2)
0.0%
2006
1.00
(2)
20,848,887
(2)
20,848,887
(2)
0.0%
2007
1.00
(2)
20,360,475
(2)
20,360,475
(2)
0.0%
2008
1.00
(2)
22,195,606
(2)
22,195,606
(2)
0.0%
2009
1.00
(2)
219978,859
(2)
21,978,859
(2)
0.0%
2010
1.00
(2)
21,702,536
(2)
21,702,536
(2)
0.0%
2011
1.00
(2)
219632,731
(2)
21,6329731
(2)
0.0%
2012
1.00
(2)
20,704,368
(2)
20,704,368
(2)
0.0%
2013
1.00
(2)
209883,041
(2)
20,883,041
(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.
Source: San Rafael Finance Department Revenue Reports
137
$50
A
$45 —�
$40
$35
$30
$25
$20
$15
$10
$5
$0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
CITY OF SAN RAFAEL
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
® Total Governmental ■ Total Business
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.
Sources City of San Rafael
State of California, Department of Finance (population)
U.S. Department of commerce, Bureau of the Census (income)
138
Governmental Activities
RDA Tax
Financing
Court Fine
Capitalized
Pension
Fiscal
Allocation
Authority
Note
Promissory
Lease
Obligation
Year
Bonds
Revenue Bonds
Payable
Note
Obligations
Bonds
Total
2004
$43,239,004
$2,340,000
$169,000
0
0
0
$45,748,004
2005
41,514,004
1,685,000
169,000
0
0
0
43,368,004
2006
40,849,107
1,155,000
169,000
0
$412,441
0
42,585,548
2007
39,217,501
950,000
169,000
$1,029,717
596,927
0
41,963,145
2008
37,537,161
780,000
169,000
816,119
401,155
0
39,703,435
2009
35,793,692
455,000
169,000
594,100
198,816
0
37,210,608
2010
35,355,988
0
169,000
363,328
135,330
0
36,023,646
2011
33,298,499
0
169,000
124,222
69,098
$4,490,000
38,150,819
2012
0
0
169,000
0
0
4,490,000
4,659,000
2013
0
0
169,000
0
0
4,490,000
4,659,000
Business -Type Activities
Parking
Total
Percentage
Fiscal
Services
Primary
of Personal
Per
Year
Bonds
Total
Government
Income (a)
Capita (a)
2004
$7,605,000
$7,605,000
$53,353,004
2.34%
933.04
2005
7,605,000
7,605,000
50,973,004
2.14%
890.76
2006
7,455,000
7,455,000
50,040,548
1.97%
872.56
2007
7,300,000
7,300,000
49,263,145
1.85%
848.68
2008
7,140,000
7,140,000
46,843,435
1.73%
804.39
2009
6,975,000
6,975,000
44,185,608
1.67%
757.08
2010
6,805,000
6,805,000
42,828,646
1.85%
728.11
2011
6,630,000
6,630,000
44,780,819
1.87%
770.28
2012
6,445,000
6,445,000
11,104,000
n/a
190.45
2013
6,445,000
6,445,000
11,104,000
n/a
190.85
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.
Sources City of San Rafael
State of California, Department of Finance (population)
U.S. Department of commerce, Bureau of the Census (income)
138
CITY OF SAN RAFAEL
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 2013
2012-13 Assessed Valuation:
$9,998,693,209
Redevelopment Incremental Valuation:
2,187,187,899
Adjusted Assessed Valuation:
$7,811,505,310
Total Debt
City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:
6/30/2013
% Applicable (1)
Debt 6/30/13
Marin Community College District
$223,440,000
17.660%
$39,459,504
San Rafael High School District
47,780,315
78.332%
37,427,276
Tamalpais Union High School District
151,215,000
0.082%
123,996
Dixie School District
6,270,810
66.613%
4,177,175
Ross School District
17,909,941
1.583%
283,514
Ross Valley School District
38,384,639
0.015%
5,758
San Rafael School District
55,750,451
83.501%
46,552,184
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
$128,029,407
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Marin County Certificates of Participation
$74,396,820
17.631%
$13,116,903
Marin County Pension Obligations
108,400,000
17.631%
19,112,004
Marin County Transit District General Fund Obligations
187,384
17.631%
33,038
Marin Municipal Water District General Fund Obligations
152,448
22.654%
34,536
Marin Community College District Certification of Participation
2,740,834
17.660%
484,031
San Rafael School District Certificates of Participation
3,875,000
83.501%
3,235,664
City of San Rafael General Fund Obligations
9,130,308
100.000%
9,130,308 (2)
City of San Rafael Pension Obligations
4,490,000
100.000%
4,490,000
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT
$49,636,484
Less: City of San Rafael lease revenue bonds supported by parking revenues
6,445,000
TOTAL NET DIRECT AND OVERLAPPING GENERAL, FUND DEBT
43,191,484
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):
25,369,004
100.000%
25,369,004
TOTAL GROSS DIRECT DEBT
$13,620,308
TOTAL NET DIRECT DEBT
$7,175,308
TOTAL OVERLAPPING DEBT
$189,414,587
GROSS COMBINED TOTAL DEBT
$203,034,895 (3)
NET COMBINED TOTAL DEBT
$196,589,895
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.
(2) Include city's share of Marin Emergency Radio Authority refunding revenue bonds.
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non -bonded capital lease
obligations.
Ratios to 2012-13 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.28%
Total Gross Combined Direct Debt ($13,620,308) 0.14%
Total Net Direct Debt ($7,175,308) 0.07%
Gross Combined Total Debt 2.03%
Net Combined Total Debt 1.97%
Ratios to Redevelopment Incremental Valuation ($2,187,187,899):
Total Overlapping Tax Increment Debt 1.16%
Source: California Municipal Statistics, Inc.
139
CITY OF SAN RAFAEL
COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2013
ASSESSED VALUATION:
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:
LEGAL BONDED DEBT MARGIN
$9,998,693,209
374,950,995
4,490,000
$370,460,995
NOTE: (a) 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
Source: California Municipal Statistics. Inc. and City of San Rafael's Management Service Department
140
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
2004
$274,836,486
$43,239,004
$231,597,482
18.67%
2005
288,902,692
41,514,004
247,388,688
16.78%
2006
311,727,085
40,849,107
270,877,978
15.08%
2007
337,021,287
39,217,501
297,803,786
13.17%
2008
357,440,434
37,537,161
319,903,273
11.73%
2009
376,420,238
35,793,692
340,626,546
10.51%
2010
381,164,135
35,355,988
345,808,147
10.22%
2011
376,057,576
33,298,499
342,759,077
9.71%
2012
378,920,952
4,490,000
374,430,952
1.20%
2013
374,950,995
4,490,000
370,460,995
1.21%
NOTE: (a) 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
Source: California Municipal Statistics. Inc. and City of San Rafael's Management Service Department
140
4.00
3.00 -
2.00 -
1.00 -
0.00 -
CITY OF SAN RAFAEL
REVENUE BOND COVERAGE
PARKING FACILITY
LAST TEN FISCAL YEARS
2004 2005 2006 2007 2008 2009
11 a Coverage N
2010 2011 2012 2013
141
Debt Service Requirements
Net Revenue
Fiscal
Gross Operating Available for
Year
Revenue (1) Expenses (2) Debt Service Principal Interest
Total
Coverage
2004
$2,336,966 $1,498,740 $838,226 - -
-
N/A
2005
2,632,588 1,964,713 667,875 - $431,958
$431,958
1.55
2006
3,069,915 2,155,435 914,480 $150,000 344,441
494,441
1.85
2007
3,331,754 2,344,285 987,469 155,000 339,904
494,904
2.00
2008
4,089,112 2,692,086 1,397,026 160,000 335,216
495,216
2.82
2009
4,425,813 2,980,083 1,445,730 165,000 330,379
495,379
2.92
2010
4,262,082 3,343,680 918,402 170,000 325,285
495,285
1.85
2011
4,023,211 3,101,411 921,800 175,000 319,391
494,391
1.86
2012
3,908,664 2,870,718 1,037,946 185,000 312,291
497,291
2.09
2013
3,994,445 2,970,238 1,024,207 305,000 240,012
545,012
1.88
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
Source:
City of San Rafael Annual Financial Statements
141
CITY OF SAN RAFAEL
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
23.00%
22.00%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
■ City Population as a % of County Population
$50
N
G
N $45 -
0
$40
$35 -
$30
rLoz �� zc�
• Per Capita Personal Income..
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
e e e 4" e e ,y010 1
§0111 1Q1'11
1�\,
■ Personal Income (2) (in thousands)
10.00%
7.50% -
5.00% -
2.50% -
0.00%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
■ Unemployment Rate (%)
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) Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce. Data is Marin county -wide rate.
(3) Employment Development Department, Labor Market Information Division. Data represents Marin county -wide rate
only and is not seasonally adjusted.
142
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
2004
57,182
$2,282,733
$39,991
4.40%
251,330
22.75%
2005
57,224
2,382,096
41,765
3.90%
252,485
22.66%
2006
57,349
2,544,221
44,400
3.50%
253,341
22.64%
2007
58,047
2,663,922
46,152
3.70%
255,982
22.68%
2008
58,235
2,703,213
46,557
4.60%
257,406
22.62%
2009
58,363
2,642,978
45,288
7.60%
258,618
22.57%
2010
58,822
2,317,704
39,402
9.90%
260,651
22.57%
2011
58,136
2,389,222
40,978
9.60%
254,692
22.83%
2012
58,305
n/a
n/a
7.70%
254,790
22.88%
2013
58,182
n/a
n/a
6.30%
254,007
22.91%
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) Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce. Data is Marin county -wide rate.
(3) Employment Development Department, Labor Market Information Division. Data represents Marin county -wide rate
only and is not seasonally adjusted.
142
CITY OF SAN RAFAEL
PRINCIPAL EMPLOYERS
LAST FIVE CALENDAR YEARS
# - Number of employees
(A) percentage of total employment
Source: State of California, Employment Development Department, Labor Market Information Division
San Francisco Business Times, Annual Book of Lists
Note: Total employment in the City of San Rafael as of June 2013 was 30,600
*- The number of total employment for the City is available for the last five fiscal years only.
143
2013*
2012*
2011*
2010*
2009*
Employer
#
(A)
#
(A)
#
(A)
#
(A)
#
(A)
Kaiser Permanente
1,756
5.74%
1,803
6.68%
1,330
4.93%
1,311
4.88%
2,267
8.15%
Autodesk, Inc.
1,000
3.27%
878
3.25%
928
3.44%
1,028
3.83%
1,200
4.32%
City of San Rafael
643
2.10%
521
1.93%
592
2.19%
630
2.34%
633
2.28%
San Rafael Elementary/High Schools Dist(s)
600
1.96%
600
2.22%
600
2.22%
600
2.23%
575
2.07%
Macy's
380
1.24%
380
1.41%
450
1.67%
445
1.66%
-
-
Bradley Real Estate
369
1.21%
376
1.39%
350
1.30%
-
-
-
-
MHN
350
1.14%
350
1.30%
350
1.30%
350
1.30%
-
-
Dominican University of California
347
1.13%
346
1.28%
336
1.24%
370
1.38%
508
1.83%
Wells Fargo Bank
334
1.09%
-
-
-
-
-
-
-
-
Community Action Marin
300
0.98%
-
-
-
-
-
-
-
-
Ghilotti Bros.
-
-
-
-
-
-
-
-
240
0.86%
Safeway
-
-
841
3.11%
452
1.67%
452
1.68%
-
-
Comcast
-
-
620
2.30%
619
2.29%
619
2.30%
-
-
Guide Dogs for the Blind
-
-
-
-
-
-
287
1.07%
-
-
Golden Gate Bridge Highway & Transp. Dist.
-
-
-
-
-
-
-
-
828
2.98%
Fair Issac Corp
-
-
-
-
-
-
-
-
350
1.26%
YMCA
-
-
-
-
-
-
-
-
348
1.25%
San Rafael City Elementary School District
-
-
-
-
-
-
-
-
0
0.00%
San Rafael City High School District
-
-
-
-
-
-
-
-
0
0.00%
Totals
6,079
19.87%
6,715
24.87%
6,007
22.25%
6,092
22.67%
6,949
25.00%
# - Number of employees
(A) percentage of total employment
Source: State of California, Employment Development Department, Labor Market Information Division
San Francisco Business Times, Annual Book of Lists
Note: Total employment in the City of San Rafael as of June 2013 was 30,600
*- The number of total employment for the City is available for the last five fiscal years only.
143
t.,
CITY OF SAN RAFAEL
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
450.00
400.00
350.00
300.00
250.00
200.00
150.00
100.00
50.00
0.00
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
* General Government 0 Public Safety Public Works and Parks
* Community Development u Culture and Recreation
Source: City of San Rafael
144
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Function
General Government
49.27
47.02
53.71
59.38
59.88
58.88
56.88
54.35
55.23
53.23
Public Safety
201.63
193.13
188.86
189.00
186.00
183.00
165.00
166.00
162.00
163.00
Public Works and Parks
76.70
72.80
74.80
76.80
78.80
78.80
60.80
62.80
62.00
60.00
Community Development
28.75
26.75
26.43
31.00
34.50
34.50
26.75
26.75
18.25
18.25
Culture and Recreation
83.26
79.73
77.49
80.22
85.90
85.90
83.49
89.82
81.56
80.76
Total
439.61
419.43
421.29
436.40
445.08
441.08
392.92
399.72
379.04
375.24
Source: City of San Rafael
144
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CITY OF SAN RAFAEL
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
As of June 30
2004 2005 2006 2007 2008
Function/Program
800
124.46
N/A
359.41
N/A
Public safety:
Fire:
Inspection permit issued
N/A
N/A
N/A
143
217
Police:
Police calls for service
N/A
N/A
N/A
43,480
43,488
Law violations:
Part I crimes
N/A
N/A
N/A
2,557
2,314
Physical arrests (adult and juvenile)
N/A
N/A
N/A
3,809
4,182
Traffic violations
N/A
N/A
N/A
5,197
9,241
Parking violations
301946
39,421
33,610
36,228
42,481
Public works
Street resurfacing (miles) (Eng Div)
5.70
6.80
1.08
N/A
4.95
Potholes repaired (square miles)
N/A
N/A
N/A
N/A
N/A
Asphalt used for street repairs (tons)
N/A
N/A
N/A
N/A
N/A
Culture and recreation:
Recreation class participants 7,000 7,000 8,000
Items in collection (thousands)
Library:
Items in collection (thousands) 118.24 121.81 123.12
Total items borrowed (thousands) 332.33 299.30 333.15
Wastewater
Residential connections
Commercial connections
Other connections
Average daily sewage treatment (millions of gallons) 6.976
Note: N/A denotes information not available.
146
800
800
124.46
N/A
359.41
N/A
6.976 6.976 6.976 6.976
2009 2010 2011 2012 2013
196
307
294
282
307
42,227
42,227
39,512
39,537
42,707
2,352
2,352
2,180
2,101
2,523
4,487
4,487
3,102
2,981
2,951
5,777
5,777
8,190
4,048
3,448
44,913
42,806
34,590
32,492
3001
2.77
2.77
7.40
N/A
2.70
N/A
N/A
N/A
N/A
N/A
N/A
N/A
10,809
178.9
7,500
8,000
9,524
9,000
12,075
702
124.40
151.88
158.30
159.18
125.92
N/A
371.12
435.66
366.46
392.23
6.976 6.976 6.976 6.976 6.976
147
CITY OF SAN RAFAEL
CAPTIAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
As of June 30
2004 2005 2006 2007 2008
Function/Program
Public safety:
Fire stations
6
6
6
6
6
Police stations
1
1
1
1
1
Police Fleet
Public works
Miles of streets
172
172
173
173
173
Street lights
4,333
4,333
4,435
4,435
4,435
Parking District lights
Traffic Signals
85
85
89
89
89
Culture and recreation:
Community services:
City parks
19
19
19
19
20
City parks acreage
41
41
41
41
42
Playgrounds
13
13
13
13
14
City trails
15
15
15
20
20
Community gardens
2
2
1
1
1
Community centers
4
4
4
4
4
Senior centers
0
0
0
0
0
Sports centers
0
0
0
0
0
Performing arts centers
0
0
0
0
0
Swimming pools
1
1
1
1
1
Tennis courts
10
10
10
10
10
Basketball Courts
5
5
5
5
5
Baseball/softball diamonds
5
5
5
5
5
Soccer/football fields
2
2
2
2
2
Library:
City Libraries
1
1
1
1
1
Wastewater
Miles of sanitary sewers
179.15
179.15
179.15
179.15
179.15
57.60
57.60
57.60
57.60
57.60
Number of treatment plants
1
1
1
1
1
(1) Source: City of San Rafael
148
2009
2010
2011
2012
2013
6
6
6
6
6
1
1
1
1
1
173
173
173
173
173
4,435
4,435
4,435
4,435
4,435
89
89
89
89
89
20
20
20
20
20
42
42
42
42
42
14
14
14
14
14
20
20
20
20
20
1
1
1
1
1
4
4
4
4
4
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
1
1
1
1
10
10
10
10
10
5
5
5
5
5
5
5
5
5
5
2
2
2
2
2
2
2
2
2
2
179.15
179
179
179
179
57.60
58
58
58
58
1
1
1
1
1
149
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