Agenda packet — San Rafael City Council, November 21, 2022 (part 1 of 2)

AGENDA
SAN RAFAEL CITY COUNCIL - MONDAY, NOVEMBER 21, 2022
REGULAR MEETING AT 7:00 P.M.

In-Person:

San Rafael City Council Chambers
1400 Fifth Avenue, San Rafael, CA 94901
Participate Virtually:

Watch on Zoom Webinar: https://tinyurl.com/CC-2022-11-21 Watch on YouTube: www.youtube.com/cityofsanrafael
Listen by phone: (669) 900-9128
ID: 899-2635-9885#
One Tap Mobile: US: US: +16699009128,,89926359885#
CORONAVIRUS (COVID-19) ADVISORY NOTICE
In response to Assembly Bill 361, the City of San Rafael is offering teleconference without complying with the procedural requirements of Government Code section 54953(b)(3). This meeting will be held in-person, virtually using Zoom and is being streamed to YouTube at www.youtube.com/cityofsanrafael.

How to participate in the meeting in-person:
• Stay home if you are experiencing COVID-19 symptoms.
• Face coverings are recommended for attendees.
• Use the sign-in sheet (optional) which allows notification of potentially exposed individuals if contact tracing reveals COVID-19 transmission may have occurred in a given meeting. • Attendance will be limited to 50 percent of room capacity (no more than 90 persons) and all inperson attendees should socially distance as recommended by public health authorities. If the Chambers are 50% occupied, please participate online instead or utilize the audio feed in the lobby.
• All attendees are encouraged to be fully vaccinated.

How to participate in the meeting virtually:
• Submit public comment in writing before 4:00 p.m. the day of the meeting to [email protected].
• Join the Zoom webinar and use the 'raise hand' feature to provide verbal public comment. • Dial-in to Zoom's telephone number using the meeting ID and press *9 to raise your hand, and *6 to unmute yourself, then provide verbal public comment.

Any member of the public who needs accommodations should contact the City Clerk (email [email protected] or phone at 415-485-3066) who will use their best efforts to provide reasonable accommodations to provide as much accessibility as possible while also maintaining public safety in accordance with the City procedure for resolving reasonable accommodation requests.

OPEN SESSION – THIRD FLOOR CONFERENCE ROOM – 6:15 PM
Dial-in: (669) 444-9171, Meeting ID# 832-5158-3140#
One Tap Mobile +16694449171,,83251583140# US or +12532050468,,83251583140# US

1. Mayor Kate to announce Closed Session items.
2 CLOSED SESSION – THIRD FLOOR CONFERENCE ROOM – 6:15 PM

2. Closed Session:
a. CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Government Code Section 54956.9) 1 case: Crimmins v. CSR

OPEN TIME FOR PUBLIC EXPRESSION
The public is welcome to address the City Council at this time on matters not on the agenda that are within its jurisdiction. Please be advised that pursuant to Government Code Section 54954.2, the City Council is not permitted to discuss or take action on any matter not on the agenda unless it determines that an emergency exists, or that there is a need to take immediate action which arose following posting of the agenda. Comments may be no longer than two minutes and should be respectful to the community.

CITY MANAGER AND COUNCILMEMBER REPORTS:
(including AB 1234 Reports on Meetings and Conferences Attended at City Expense)

3. City Manager and Councilmember Reports:

CONSENT CALENDAR:

The opportunity for public comment on consent calendar items will occur prior to the City Council’s vote on the Consent Calendar. The City Council may approve the entire consent calendar with one action. In the alternative, items on the Consent Calendar may be removed by any City Council or staff member, for separate discussion and vote.

4. Consent Calendar Items:
a. Approval of Minutes
Approve Minutes of the City Council Regular and Special Meetings of November 7, 2022 and the City Council Special Meeting of November 2, 2022 (CC) Recommended Action - Approve minutes as submitted
b. Use of Teleconferencing for Public Meetings During State of Emergency Resolution Pursuant to Assembly Bill 361 Making Findings and Confirming the Need for the Use or Continued Use of Teleconferencing to Hold Public Meetings of the City’s Legislative Bodies During the Continuing State of Emergency Relating to the Covid-19 Pandemic (CA) Recommended Action - Adopt Resolution
c. Downtown Business Improvement District (BID) Business Assessment Annual Renewal Resolution Declaring the City Council’s Intention to Levy an Annual Assessment for Calendar Year 2023 for the Downtown San Rafael Business Improvement District (ED) Recommended Action – Adopt Resolution
d. Accepting Grant Funds to Support Resilience Planning Resolution Accepting the Grant of Funds from the State Coastal Conservancy and Marin Community Foundation for the Canal Community Resilience Planning Project and Appropriating Funds in the Amount of $762,000 for Project #31100 (CM) Recommended Action – Adopt Resolution
3 PUBLIC HEARING

5. Public Hearing:
a. Triennial Building Code Ordinance Amendments
Final Adoption of Ordinance 2021: An Ordinance Amending Title 12 (Building Regulations) of the Municipal Code of the City of San Rafael, to Adopt by Reference the 2022 Edition of the California Building Code, the California Residential Code, the California Mechanical Code, the California Plumbing Code, the California Electrical Code, the California Existing Building Code, the California Green Building Construction Standards Code, the California Historical Building Code, the California Energy Code, and the California Referenced Standards Code, with Appendices and Amendments Herein; to Adopt by Reference the 2021 Edition of the International Property Maintenance Code and the International Swimming Pool and Spa Code, with Amendments Herein; Adopting Administrative and Program Provisions for the Codes; Adopting New Chapter 12.350 with Administrative and Program Regulations on Gate Safeguards; and Adopting Findings of Fact Supporting the Amendments to the Codes (CD)
Recommended Action – Final adoption of Ordinance No. 2021 b. Ordinance Amending Green Building Codes
Introduction of an Ordinance Amending Title 12 (Building Regulations) of the Municipal Code of the City of San Rafael, by Amending the 2022 California Green Building Standards Code for Electric Vehicle Chargers; Amending the 2022 California Mechanical Code and the 2022 California Plumbing Code to Limit Fuel Gas in Existing Single Family Homes and Duplexes, and Prohibit Fuel Gas in New Construction with Limited Exceptions; and Adopting Findings of Fact Supporting the Amendments to the Codes (CD) Recommended Action – Waive further reading of the ordinance and refer to it by title only, and introduce the Ordinance
c. Master Fee Schedule
Resolutions Amending the City of San Rafael Master Fee Schedule to Adopt a Comprehensive Master Fee Update and Establishing an Annual CPI Increase with Max Annual Increase of 3%; Updating to the Affordable Housing In-Lieu Fee; and the Repeal of Resolutions Where Fees and Fee Methodology are Otherwise Referenced (Fin) Recommended Action – Continued to a future City Council meeting

OTHER AGENDA ITEMS

6. Other Agenda Items:
a. Year-End Financial Statements and Related Audit Reports Fiscal Year 2021-2022 Annual Financial Report; GANN Appropriations Limit; Memorandum on Internal Control; Report of Required Communications; and the Child Development Program Financial Report (Fin)
Recommended Action – Accept report
SAN RAFAEL SUCCESSOR AGENCY:

1. Consent Calendar: - None.

ADJOURNMENT:
4 Any records relating to an agenda item, received by a majority or more of the Council less than 72 hours before the meeting, shall be available for inspection online and at City Hall, 1400 Fifth Avenue, and placed with other agenda-related materials on the table in front of the Council Chamber prior to the meeting. Sign Language interpreters may be requested by calling (415) 485-3066 (voice), emailing [email protected] or using the California Telecommunications Relay Service by dialing “711”, at least 72 hours in advance of the meeting. Copies of documents are available in accessible formats upon request. To request Spanish language interpretation, please submit an online form at https://www.cityofsanrafael.org/request-for-interpretation/.

AGENDA
SAN RAFAEL CITY COUNCIL - MONDAY, NOVEMBER 7, 2022
REGULAR MEETING AT 7:00 P.M.

In-Person:

San Rafael City Council Chambers
1400 Fifth Avenue, San Rafael, CA 94901
Participate Virtually:

Watch on Zoom Webinar: https://tinyurl.com/CC-2022-11-07 Watch on YouTube: www.youtube.com/cityofsanrafael
Listen by phone: (669) 900-9128
ID: 817-3692-0337#
One Tap Mobile: US: US: +16699009128,,81736920337#
CORONAVIRUS (COVID-19) ADVISORY NOTICE
In response to Assembly Bill 361, the City of San Rafael is offering teleconference without complying with the procedural requirements of Government Code section 54953(b)(3). This meeting will be held in-person, virtually using Zoom and is being streamed to YouTube at www.youtube.com/cityofsanrafael.

Present: Councilmember Bushey
Councilmember Hill
Vice Mayor Kertz
Councilmember Llorens Gulati
Mayor Kate

Absent: None
2 Also Present: City Manager Jim Schutz
City Attorney Robert Epstein
City Clerk Lindsay Lara
Mayor Kate called the meeting to order at 7:06 p.m. and invited City Clerk Lindsay Lara to call the roll. All members of the City Council were present.

Mayor Kate provided opening remarks, which included the hybrid City Council meeting, gratitude to City Staff, San Rafael being one of three cities in the U.S. awarded Best Place to Work in Local Government in 2022 (by Engaging Local Government Leaders), and a land acknowledgement.

City Clerk Lindsay Lara informed the community that the in-person meeting would also be recorded and streamed live to YouTube and through Zoom, and members of the public would provide public comment either on the telephone or through Zoom. She explained the process for community participation on the telephone, through Zoom and in-person.

OPEN SESSION

1. None.

CLOSED SESSION

2. None.

OPEN TIME FOR PUBLIC EXPRESSION
• Name Withheld, addressed the City Council regarding texting the moderator of the City Council meeting.
• Dave Rhoads, addressed the City Council expressing gratitude for the City holding hybrid meetings.
• David Moller, addressed the City Council regarding the Green Building Reach Codes item heard in the Study Session prior to tonight’s regular meeting.

CITY MANAGER AND COUNCILMEMBER REPORTS:
(including AB 1234 Reports on Meetings and Conferences Attended at City Expense)

3. City Manager and Councilmember Reports:

City Manager Jim Schutz announced:
• Appointments made at the November 2, 2022, Boards & Commissions Interviews • Marin County Overdose Prevention Summit to be held on Tuesday, November 15 at Embassy Suites at 4 p.m.
• November 5, 2022, Dia de los Muertos Recap
Councilmember Reports:
• Councilmember Kertz reported on the Arbor Park art installation, her and Councilmember Hill’s Community Conversations, Leadership for Equity and Opportunity (LEO), a Glenwood Elementary visit, a San Rafael Chamber of Commerce coffee chat, and Dia de los Muertos. • Councilmember Hill reported on the Arbor Day Tree Planting ceremony, a City County Schools Liaison meeting, a Glenwood Elementary visit, recent Boards and Commissions Interviews and a County Priority-Setting Committee meeting. • Councilmember Bushey reported on two San Rafael Sanitation District meetings, a Marin County Council of Mayors and Councilmembers (MCCMC) meeting and the recent Boards and Commissions Interviews.
3 • Councilmember Llorens Gulati reported on a Tiscornia Marsh Project community meeting, Arbor Day Tree Planting ceremony, City’s Quarterly Climate Action Forum, a MCCMC Climate Action Committee meeting, two Policing in Our Community meetings and Dia de los Muertos. She announced her Community Conversation to be held on Monday, November 14 at Pickleweed Park at 6 p.m.
• Mayor Kate reported on her Community Conversation and one she covered for Councilmember Bushey, a ribbon cutting for ESPIN Electric Bikes, a Marin Latino Leaders luncheon, as well as, Marin Transit and SMART meetings.

Mayor Kate invited public comment; however, there was none.

CONSENT CALENDAR:

Mayor Kate invited public comment; however, there was none.

Councilmember Bushey moved and Councilmember Kertz seconded to approve the Consent Calendar, and the City Clerk read the title of the ordinance presented in item 4.c.

4. Consent Calendar Items:
a. Approval of Minutes
Approve Minutes of the City Council Regular Meeting of October 17, 2022 (CC) Approved minutes as submitted
b. Use of Teleconferencing for Public Meetings During State of Emergency Resolution Pursuant to Assembly Bill 361 Making Findings and Confirming the Need for the Use or Continued Use of Teleconferencing to Hold Public Meetings of the City’s Legislative Bodies During the Continuing State of Emergency Relating to the Covid-19 Pandemic (CA)
Resolution 15152 - Resolution Pursuant to Assembly Bill 361 Making Findings and Confirming the Need for the Use or Continued Use of Teleconferencing to Hold Public Meetings of the City’s Legislative Bodies During the Continuing State of Emergency Relating to the Covid-19 Pandemic c. Tri-Annual Building Code Ordinance Amendments
Introduction of an Ordinance Amending Title 12 (Building Regulations) of the Municipal Code of the City of San Rafael, to Adopt by Reference the 2022 Edition of the California Building Code, the California Residential Code, the California Mechanical Code, the California Plumbing Code, the California Electrical Code, the California Existing Building Code, the California Green Building Construction Standards Code, the California Historical Building Code, the California Energy Code, and the California Referenced Standards Code, with Appendices and Amendments Herein; to Adopt by Reference the 2021 Edition of the International Property Maintenance Code and the International Swimming Pool and Spa Code, with Amendments Herein; Adopting Administrative and Program Provisions for the Codes; Adopting New Chapter 12.350 with Administrative and Program Regulations on Gate Safeguards; and Adopting Findings of Fact Supporting the Amendments to the Codes; and Setting a Public Hearing for November 21, 2022 (CD) Waived further reading of the ordinance and referred to it by title only, introduced the Ordinance, and set a public hearing for November 21, 2022
d. Sun Valley Park Playground Project
Resolution Awarding and Authorizing the City Manager to Execute a Construction Agreement for the Sun Valley Park Playground Project, City Project No. 11391, to Bauman 4 Landscape and Construction, Inc. in the Amount of $453,709, and Authorizing Contingency Funds of $66,291 for a Total Appropriated Amount of $520,000 (PW) Resolution 15153 - Resolution Awarding and Authorizing the City Manager to Execute a Construction Agreement for the Sun Valley Park Playground Project, City Project No. 11391, to Bauman Landscape and Construction, Inc. in the Amount of $453,709, and Authorizing Contingency Funds of $66,291 for a Total Appropriated Amount of $520,000 e. Pickleweed Park Enhancement Project
Resolution Approving and Authorizing the City Manager to Execute a Professional Services Agreement with Gates + Associates for Landscape Architectural and Engineering Design Services Associated with the Pickleweed Park Enhancement Project, City Project No. 11376, in the Amount Not to Exceed $498,734 (PW)
Resolution 15154 - Resolution Approving and Authorizing the City Manager to Execute a Professional Services Agreement with Gates + Associates for Landscape Architectural and Engineering Design Services Associated with the Pickleweed Park Enhancement Project, City Project No. 11376, in the Amount Not to Exceed $498,734 f. Special Event Street Closures in Downtown San Rafael Resolution Authorizing the Temporary Closure of Fourth Street Between Lincoln Avenue and Cijos Street for the Annual Parade of Lights and Winter Wonderland Event (PD) Resolution 15155 - Resolution Authorizing the Temporary Closure of Fourth Street Between Lincoln Avenue and Cijos Street for the Annual Parade of Lights and Winter Wonderland Event g. Investment Management and Advisory Services
Resolution Approving and Authorizing the City Manager to Execute an Agreement with Chandler Asset Management to Provide Investment Management and Advisory Services for Three (3) Years with an Option to Extend for an Additional Two (2) Years (Fin) Resolution 15156 - Resolution Approving and Authorizing the City Manager to Execute an Agreement with Chandler Asset Management to Provide Investment Management and Advisory Services for Three (3) Years with an Option to Extend for an Additional Two (2) Years AYES: Councilmembers: Bushey, Hill, Kertz Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None

SPECIAL PRESENTATION

5. Special Presentation:

Mayor Kate invited public comment; however, there was none. a. Presentation of Proclamation Supporting United Against Hate Week (CM) Mayor Kate presented the proclamation.

Bernadette Sullivan, Senior Management Analyst (City Manager Office) provided comments. b. Presentation of Proclamation to Stacey Laumann for Her Service on the Park & Recreation Commission (LR)
Mayor Kate presented the proclamation.
5 Stacey Laumann provided comments.

PUBLIC HEARING

6. Public Hearing:
a. Triannual Fire Code Ordinance Amendments
Final Adoption of Ordinance No. 2020: An Ordinance Amending Chapter 4.08 of the San Rafael Municipal Code to Adopt by Reference the California Fire Code 2022 Edition with Amendments, the International Fire Code 2021 Edition, and Appendix A of the 2021 International Wildland-Urban Interface Code and Adopting Findings of Fact Supporting the Amendments to Such Codes (FD)
Robert Sinnott, Deputy Fire Chief presented the Staff Report.

Staff responded to questions from Councilmembers.

Mayor Kate invited public comment; however, there was none.

Councilmember Bushey moved and Councilmember Llorens Gulati seconded to adopt Ordinance No. 2020.

AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None
Final adoption of Ordinance No. 2020

OTHER AGENDA ITEMS

7. Other Agenda Items:
a. US 101/I-580 Multimodal and Local Access Improvement Project Informational Report from Transportation Authority of Marin (TAM) on the US 101/I-580 Multimodal and Local Access Improvement Project and Additional Interchange Proof of Concept on Interstate 580 (PW)
April Miller, Public Works Director introduced Anne Richman and Connie Fremier, Transportation Authority of Marin (TAM) who presented the Staff Report.

Staff responded to questions from Councilmembers.

Connie Fremier, Transportation Authority of Marin (TAM) continued with the presentation.

Staff responded to further questions from Councilmembers.

Mayor Kate invited public comment.

Speakers: Jeff Rhoads, Resilient Shore, Evan Cross, Bill Carney, Sustainable San Rafael Staff responded to public comment.

Councilmembers provided comments.
6 Councilmember Bushey moved and Councilmember Kertz seconded to accept the report.

AYES: Councilmembers: Bushey, Hill, Kertz & Mayor Kate
NOES: Councilmembers: Llorens Gulati
ABSENT: Councilmembers: None
Accepted report
b. San Rafael Cannabis Industry Tax Rate Setting
Resolution Setting Lower Cannabis Industry Tax Rates for Cannabis Delivery Businesses, for the Period of January 1, 2023 Through December 31, 2024 (ED/CM) Bernadette Sullivan, Senior Management Analyst (City Manager Office) presented the Staff Report.

Staff responded to questions from Councilmembers.

Mayor Kate invited public comment.

Speakers: Name withheld, Danielle Span, Moonflower, Monica Gray Fong, Nice Guys Delivery
Councilmembers provided comments.

Councilmember Hill moved and Councilmember Kertz seconded to adopt the resolution.

AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None
Resolution 15157 - Resolution Setting Lower Cannabis Industry Tax Rates for Cannabis Delivery Businesses, for the Period of January 1, 2023 Through December 31, 2024 c. Update to the Unrepresented Executive Management Salary Schedule Resolution Approving the Adjustment of the Compensation Schedule for the City Manager Position and Recruitment (AS)
Nadine Hade, Administrative Services Director presented the Staff Report.

Staff responded to questions from Councilmembers.

Mayor Kate invited public comment; however, there was none.

Councilmember Bushey moved and Councilmember Kertz seconded to adopt the resolution.

AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None
Resolution 15158 - Resolution Approving the Adjustment of the Compensation Schedule for the City Manager Position and Recruitment
7 SAN RAFAEL SUCCESSOR AGENCY:

1. Consent Calendar: - None.

ADJOURNMENT:

Mayor Kate adjourned the meeting at 9:41 p.m.
___________________________
LINDSAY LARA, City Clerk
APPROVED THIS _____DAY OF____________, 2022
_____________________________________
KATE COLIN, Mayor
Minutes subject to approval at the November 21, 2022 City Council Meeting

Page 1 of 2 ends

SAN RAFAEL CITY COUNCIL SPECIAL MEETING
WEDNESDAY, NOVEMBER 2, 2022 AT 6:30 P.M.

Participate Virtually:

Watch on Zoom Webinar: https://tinyurl.com/CCSM-2022-11-02 Listen by phone: (669) 900-9128
ID: 818-4847-7130#
One Tap Mobile: US: +16694449171,,81848477130#

Present: Councilmember Bushey (joined at 7:49pm)
Councilmember Hill
Vice Mayor Kertz
Councilmember Llorens Gulati
Mayor Kate

Absent: None
Also Present: City Manager Jim Schutz
City Clerk Lindsay Lara
Mayor Kate called the meeting to order at 6:34 p.m. and requested City Clerk Lindsay Lara call the roll.

All members of the City Council were present, except for Councilmember Bushey who joined the meeting at 7:49 p.m.

Mayor Kate opened the public comment period for all agenda items; however, there was none.

1. Bicycle and Pedestrian Advisory Committee Interviews Interview Applicants and Make Appointments to Fill Two Four-Year Terms to the End of October 2026 on the Bicycle and Pedestrian Advisory Committee Due to the Expiration of Terms of DJ Allison, Kate Powers and Kevin Hagerty (CC) The City Council interviewed the following applicants: David Rhoads, Mark Kyle, Sunny Lee, Sylvain Frayer and Thomas Vogl.

Vice Mayor Kertz moved and Councilmember Hill seconded to appoint Mark Kyle and Sylvain Frayer to the Bicycle and Pedestrian Advisory Committee to the end of October 2026.

Ayes: Councilmembers: Hill, Kertz and Mayor Kate
Noes: Councilmembers: Llorens Gulati

Absent: Councilmembers: Bushey
Motion passed 3-1
Councilmember Maribeth Bushey joined the meeting.

2. Voter Approved Tax Oversight Committee Interviews
Interview Applicants and Make an Appointments to Fill Three Four-Year Terms to the End of November 2026 and Two Two-Year Terms to the End of November 2024 on the Newly Established Voter Approved Tax Oversight Committee (CC) The City Council interviewed the following applicants: Sierra Bloyd, Brian Holcomb, Caleb McWaters, Charles Friede, Jared White, Stephen Roth and Tracey Broadman. Applicants Edward LaBarre and Susan Clark withdrew from the interviews.

Councilmember Bushey moved and Councilmember Llorens Gulati seconded to appoint Charles Friede, Stephen Roth and Tracey Broadman to four-year terms to the end of November 2026, and Caleb McWaters and Sierra Bloyd to two-year terms to the end of November 2024 on the Voter Approved Tax Oversight Committee.

Ayes: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati and Mayor Kate Noes: Councilmembers: None

Absent: Councilmembers: None
Motion passed 5-0
ADJOURNMENT:

Mayor Kate adjourned the meeting at 9:15 p.m.
___________________________
LINDSAY LARA, City Clerk
APPROVED THIS _____DAY OF____________, 2022
_____________________________________
KATE COLIN, Mayor
Minutes subject to approval at the November 21, 2022 City Council Meeting

MINUTES

SAN RAFAEL CITY COUNCIL SPECIAL STUDY SESSION
MONDAY, NOVEMBER 7, 2022 AT 6:00 P.M.

In-Person:

San Rafael City Council Chambers
1400 Fifth Avenue, San Rafael, CA 94901
Participate Virtually:

Present: Councilmember Bushey
Councilmember Hill
Vice Mayor Kertz
Councilmember Llorens Gulati
Mayor Kate

Absent: None
Also Present: City Manager Jim Schutz
City Attorney Robert Epstein
City Clerk Lindsay Lara
Mayor Kate called the meeting to order at 6:00 p.m. and requested City Clerk Lindsay Lara call the roll. All members of the City Council were present.

STUDY SESSION

1. Green Building Reach Codes
Presentation on proposed local amendments or “reach codes” to Green Building requirements regarding energy and electric vehicle infrastructure (CM) Cory Bytof, Sustainability Program Manager presented the Staff Report.

Staff responded to questions from Councilmembers.

Mayor Kate invited public comment.

Speakers: Bill Carney, Sustainable San Rafael, Chris Yalonis, VenturePad, Annika Osborn, Sustainable San Rafael, Cool the Earth, Chris Hart
Mayor Kate provided comments on the informational item presented and informed the community who was unable to provide comments due to time constraints to provide comments to the City Clerk’s office by email at [email protected].

ADJOURNMENT:

Mayor Kate adjourned the meeting at 6:59 p.m.
___________________________
LINDSAY LARA, City Clerk
APPROVED THIS _____DAY OF____________, 2022
_____________________________________
KATE COLIN, Mayor

____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 4.b
Meeting Date: November 21, 2022

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Attorney
Prepared by: Genevieve Coyle,
Assistant City Attorney
City Manager Approval: ______________
TOPIC: USE OF TELECONFERENCING FOR PUBLIC MEETINGS DURING STATE OF

EMERGENCY
SUBJECT: RESOLUTION PURSUANT TO ASSEMBLY BILL 361 MAKING FINDINGS AND

CONFIRMING THE NEED FOR THE USE OR CONTINUED USE OF
TELECONFERENCING TO HOLD PUBLIC MEETINGS OF THE CITY’S LEGISLATIVE

BODIES DURING THE CONTINUING STATE OF EMERGENCY RELATING TO THE COVID-19 PANDEMIC
RECOMMENDATION:

Adopt the resolution pursuant to Assembly Bill 361 making findings and confirming the need for the use or continued use of teleconferencing to hold public meetings of the City’s legislative bodies during the continuing state of emergency relating to the COVID-19 pandemic.

BACKGROUND:

The Ralph M. Brown Act (“Brown Act”) requires that except as specifically provided, “meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting of the legislative body”. (Gov. Code §54953(a).) For many years, the Brown Act has authorized members of a local agency’s legislative body to attend a public meeting by teleconference in compliance with strict procedural requirements. Under Government Code section 54953(b)(3), to use teleconferencing, at least a quorum of the legislative body must participate from locations within the agency’s boundaries, and the agency must give notice of each teleconference location, post an agenda at each teleconference location, provide for public access to each teleconference location, and allow members of the public to address the Council at each teleconference location.

On March 4, 2020, Governor Newsom declared a statewide state of emergency in connection with the COVID-19 pandemic. Subsequently, on March 18, 2020, the Governor issued Executive Order No. N29-20 suspending the Brown Act’s requirements for in-person meetings and facilitating the use of teleconferencing for public meetings during the state of emergency. The Executive Order authorized public meetings to be held by teleconference only, provided that notice and accessibility requirements are met, members of the public are allowed to observe and address the legislative body at the meeting, and there is a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities. This order allowed the City Council and the City’s other formal boards and commissions to hold their public meetings using teleconferencing technologies until the order expired on SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
September 30, 2021. On September 16, 2021 Governor Newsom signed into law as an urgency measure Assembly Bill (AB) 361. AB 361 amended the Brown Act provisions governing the use of teleconferencing for public meetings of a local agency’s legislative bodies, allowing more liberal teleconferencing requirements to continue during the current and future state-declared emergencies. Therefore, since October 1, 2021, the City has relied on the amendments enacted by AB 361 as its authority to continue to hold meetings using teleconferencing technologies.

Government Code section 54953, as amended by AB 361, now provides in new subsection (e)(1), that during the current and any future state-declared state of emergency, the legislative body of a local agency may use teleconferencing without complying with the procedural requirements of Government Code section 54953(b)(3) in any of three circumstances:
(A) The legislative body holds a meeting during a proclaimed state of emergency, and state or local officials have imposed or recommended measures to promote social distancing. (B) The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees. (C) The legislative body holds a meeting during a proclaimed state of emergency and has determined, by majority vote, pursuant to subparagraph (B), that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.

Certain additional requirements would apply under the new law, however, including specific requirements as to how public comment must be allowed and heard, with which the City already complies. In addition:
• In the event of a disruption which prevents the City from broadcasting the meeting to members of the public using the call-in option or internet-based service option, or in the event of a disruption within the City’s control which prevents members of the public from offering public comments using the call-in option or internet-based service option, the legislative body shall take no further action on items appearing on the meeting agenda until public access to the meeting via the callin option or internet-based service option is restored. Actions taken on agenda items during a disruption which prevents the public agency from broadcasting the meeting may be challenged pursuant to Section 54960.1.
• If a state of emergency remains active, or state or local officials have imposed or recommended measures to promote social distancing, in order to continue to teleconference without compliance with paragraph (3) of subdivision (b), the legislative body shall, not later than 30 days after teleconferencing for the first time pursuant to subparagraph (A), (B), or (C) of paragraph (1), and every 30 days thereafter, make the following findings by majority vote:
o The legislative body has reconsidered the circumstances of the state of emergency. o Any of the following circumstances exist:
 (i) The state of emergency continues to directly impact the ability of the members to meet safely in person.
 (ii) State or local officials continue to impose or recommend measures to promote social distancing.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
ANALYSIS:

The City Council has determined that it is now safe to hold in person meetings in the City Council Chambers, and the Council held its first such meeting on April 18, 2022. Other boards and commissions that meet in the City Council Chambers will also be able to meet in person. The City Council Chambers are roomy enough to allow for social distancing in most cases and are now equipped with teleconferencing equipment that also allows participation in public meetings from other locations. This hybrid meeting model provides an alternative means to attend for those persons who feel they cannot safely attend in person, as well as for those persons who may find it more convenient to participate in the meetings through teleconferencing.

However, the City Council also holds special meetings at locations not in the City Council Chambers and staff has determined that the hybrid meeting model set up for these meetings has not provided sufficient space for social distancing and negatively impacts public participation through virtual means. Additionally, not all City boards and commissions meet in the City Council Chambers. Staff has not yet been able to make comparable arrangements for hybrid meetings in those other meeting locations. Therefore, staff recommends that the City Council continue to adopt the resolution required by AB 361, so that the City’s legislative bodies meeting outside the City Council Chambers can meet or continue to meet using teleconferencing technology. These include special meetings of the City Council and meetings of the City’s boards and commissions.

The resolution before the City Council is intended to comply with the requirement to make specified findings every 30 days. The resolution finds that the state of emergency continues in effect, that measures to promote social distancing are still being imposed or recommended by the state and county, and that the state of emergency directly impacts the ability of the public and the members of the City’s Council, boards, and commissions to meet safely in person. The proposed resolution confirms the City Council’s determination that all public meetings of the City’s legislative bodies (the Council and all formal boards and commissions) may continue to be held using only teleconferencing technology.

FISCAL IMPACT:

There is no fiscal impact associated with the adoption of the attached resolution.

OPTIONS:

The City Council has the following options to consider on this matter:

1. Adopt the resolution as proposed.

2. Adopt a modified resolution.

3. Direct staff to return with more information.

4. Take no action.

RECOMMENDED ACTION:

Adopt the resolution pursuant to Assembly Bill 361 making findings and confirming the need for use or continued use of teleconferencing to hold public meetings of the City’s legislative bodies during the continuing state of emergency relating to the COVID-19 pandemic.

ATTACHMENTS:

1. Resolution
Attachment 1: Page 1 of 2
RESOLUTION NO.

RESOLUTION OF THE SAN RAFAEL CITY COUNCIL PURSUANT TO ASSEMBLY BILL 361

MAKING FINDINGS AND CONFIRMING THE NEED FOR THE USE OR CONTINUED USE OF TELECONFERENCING TO HOLD PUBLIC MEETINGS OF THE CITY’S LEGISLATIVE BODIES DURING THE CONTINUING STATE OF EMERGENCY RELATING TO THE COVID-19

PANDEMIC
WHEREAS, on March 4, 2020 Governor Newsom issued a proclamation pursuant to Government Code Section 8625 declaring a state of emergency in California due to the COVID19 pandemic; and WHEREAS, the Ralph M. Brown Act (Gov. Code §§ 54950 et seq.) (hereafter, the “Brown Act”) provides in Government Code section 54953 that “all meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting of the legislative body of a local agency, except as otherwise provided by this chapter”; and WHEREAS, Government Code section 54953(b)(3) permits the legislative body of a local agency to use teleconferencing for the benefit of the public and the legislative body in connection with any meeting or proceeding authorized by law, subject to specified procedural requirements including, but not limited to, the posting of agendas at all teleconference locations, the opportunity for members of the public to address the legislative body directly at each teleconference location, and that at least a quorum of the members of the legislative body participate from locations within the boundaries of the territory over which the legislative body exercises jurisdiction; and WHEREAS, Government Code section 54953(e), added by Assembly Bill 361 effective September 16, 2021, provides, in section 54953(e)(1), that during a state of emergency proclaimed pursuant to Government Code section 8625, the legislative body of a local agency may hold a meeting using teleconferencing without complying with the procedural requirements of section 54953(b)(3), provided that the legislative body complies with the requirements of section 54953(e)(2); and
WHEREAS, pursuant to Government Code section 54953(e)(3), if a state of emergency remains active, or state or local officials have imposed or recommended measures to promote social distancing, then in order to continue to teleconference without compliance with the requirements of section 54953(b)(3), the legislative body shall make specified findings at least every 30 days; and
WHEREAS, the City Council has reconsidered the circumstances of the proclaimed COVID-19-related state of emergency and finds that it remains active; and WHEREAS, the City Council finds that state and/or local officials continue to impose or recommend measures to promote social distancing, including masking in certain indoor public settings; and
WHEREAS, the City Council finds that the state of emergency directly impacts or continues to directly impact the ability of the City’s legislative bodies to meet safely in person, Attachment 1: Page 2 of 2
including special meetings of the City Council and meetings of the City’s boards and commissions.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Rafael that in order to protect the safety of the members of the public and its legislative bodies, for the 30 days following adoption of this resolution, public meetings of the City’s legislative bodies may continue to be held using teleconferencing technology in compliance with the requirements of Government Code section 54953(e)(2) and all other applicable laws.

I, Lindsay Lara, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 21st day of November 2022 by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

Lindsay Lara, City Clerk
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 4.c
Meeting Date: November 21, 2022

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Economic Development
Prepared by: Victoria Lim
Senior Management Analyst
City Manager Approval: ______________
TOPIC: DOWNTOWN BUSINESS IMPROVEMENT DISTRICT (BID) BUSINESS ASSESSMENT

ANNUAL RENEWAL
SUBJECT: RESOLUTION DECLARING THE CITY COUNCIL’S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR CALENDAR YEAR 2023 FOR THE DOWNTOWN SAN RAFAEL

BUSINESS IMPROVEMENT DISTRICT
RECOMMENDATION:

Accept report and adopt resolution declaring the City Council’s intention to levy an annual assessment for calendar year 2023 for the Downtown San Rafael Business Improvement District.

BACKGROUND:

Section 36500 of the California Streets and Highways Code allows for the creation of a business improvement district (BID) within a municipality, whereby businesses within the district self-assess an annual fee in order to pay for improvements and activities which benefit the overall business district. The intent of the state law is to provide a funding mechanism for business districts to promote economic vitality.

In 1979, businesses in Downtown San Rafael set up a business district. This original district included approximately 125 businesses along Fourth Street between Lincoln Avenue and E Street. In 2013, the City Council voted to replace it with a larger district of approximately 700 businesses along Fourth Street.

The expanded district includes the West End and some side streets, as well as non-ground floor tenants and other tenants not included in the original BID.

For 2022, the BID Board of Directors focused on supporting downtown businesses as they emerged from the COVID-19 pandemic. The BID Board welcomed a new Director – Sarah Tipple – this year, and the BID has achieved many notable accomplishments as highlighted in its Annual Report, including a website redesign, various initiatives and partnerships to promote foot traffic downtown, and actively promoting Downtown through social media, the BID website, marketing campaigns, and email blasts.

Downtown San Rafael is coming back to life after some slow COVID years. The BID hosted numerous events, including two successful and profitable events: May Madness and the Hops and Vine Stroll. The BID Board continued to produce the ‘Dining Under the Lights’ (DUTL) outdoor dining event on Thursday SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
evenings (late May through September 2022) and the West End Block Parties on Thursday and Friday evenings (late May – early October 2022). The BID Board also hosted various events such as BID Night at the Pacifics, the Annual BID Mixer, Trick or Treat on Fourth Street, Dia De Los Muertos Altar Displays, an Elf Hunt, and the Parade of Lights and Winter Wonderland on Shop Small Saturday. The BID helped to promote other Downtown events, including 2nd Friday Art Walks, San Rafael PorchFest, Mill Valley Film Festival, Dia De Los Muertos Car Procession, San Rafael Lighted Boat Parade, Heads Up Carnival at Davidson, Doc Lands Film Festival, State of the City Dinner, Youth in Arts C Street Celebration, and the Sunset Criterium.

The BID established partnerships with Embassy Suites and the California Film Institute, using QR code technology and ticket incentives to drive foot traffic Downtown. Other innovative initiatives include developing a walking tour on a mobile app that that BID hopes to have enough funding in the future to launch. The BID also created a “smART” Train Tour Map highlighting San Rafael’s many art organizations that the BID likewise hopes to implement in the future. In partnership with City staff, the BID contributed to the development and implementation of the outdoor dining Streetaries Program that was approved by Council in October 2022. The BID also participated in the process of getting new trash cans downtown, which has added to its beautification efforts.

Financially, the BID is facing challenges. BID assessments were lower than usual in 2022 and costs increased. Proceeds from BID assessments decreased to $61,648 in 2022, approximately 25% lower than typical assessment revenue of $83,000. Payroll costs, as well as higher costs due to inflation, increased overall expenses for the year. The BID projects a loss of approximately $18,000 for 2022, leaving the BID with a cash balance of $43,500.

For calendar year 2023, the annual assessment levied on businesses will not change and will be the same as prior years. See Exhibit B to the Annual Report. The BID states in its Annual Report that it plans to continue to host similar events to last year, plus a few new events. The two profitable events hosted by the BID are May Madness and Hops and Vines Stroll. The BID projects that costs will remain high and that the amounts collected through BID assessments will remain similar to 2022. As a result, without additional funding, the BID may need to postpone some of its initiatives. The BID projects a loss of approximately $16,000 for 2023, leaving the BID with a cash balance of $27,500 at the end of 2023. This trend is not sustainable without changes.

Uncollected revenue from businesses that paid the BID assessment in 2021 but did not renew their business license for 2022 was $9,825. This amount could be businesses that went out of business but never notified the City, or businesses that are operational but simply did not pay their BID assessment.

The BID has not included this amount in its annual income.

Staff has recommended that the BID Board plan ahead for 2023 events, prioritize high impact and low cost events, minimize low impact and high cost events, and focus on planning events that generate revenue so that the BID can become independent and financially sustainable. Planning ahead and being selective for its event roster in 2023 will also allow the BID to submit event applications 90 days in advance as per City requirements.

Staff has also recommended to the BID Board to attempt to cut costs in order to reduce its dependence on cash reserves and focus on long-term sustainability. In search of operational synergies, the BID has partnered with the Chamber of Commerce and now has its office co-located inside the Chamber of Commerce office in San Rafael. Also, importantly, the BID is participating in the City’s Economic Development Strategic Plan which is underway and will provide an opportunity to review business priorities downtown and throughout the City. There may be new synergies with the BID and Chamber of Commerce as that plan develops and implementation begins.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3

ANALYSIS
BID Renewal Process
Per State law, to renew the annual assessment, the City Council must first adopt a Resolution of Intention to Levy an Annual Assessment and set a public hearing for a future date. In accordance with State law, the annual renewal process for the BID assessment will take place at two City Council meetings as follows:

Meeting #1 – November 21, 2022
Adopt Resolution of Intention to Levy an Annual Assessment: The Council will consider action to accept the BID annual report, which reviews past BID Board accomplishments, and adopt the resolution of intention to levy an annual assessment for calendar year 2023. The resolution sets a public hearing date of December 5, 2022.

Meeting #2 – December 5, 2022
Public Hearing on Annual Assessment: This is the meeting to receive additional input from the public on the annual BID assessment and to confirm the levy of an assessment for the upcoming calendar year 2023.

COMMUNITY OUTREACH:

The BID will notify its members of the annual renewal process through its member communications, including the BID e-newsletter, notifications on the BID website, and through agenda items at the monthly BID Board meeting.

FISCAL IMPACT:

There is no fiscal impact associated with this action. The assessment collected by the City of San Rafael on behalf of the BID is passed to the BID upon receipt. All administrative costs associated with collecting the assessment are absorbed by the General Fund.

OPTIONS:

The City Council has the following options to consider on this matter:
1) Accept report and adopt the resolution as presented. 2) Accept report and adopt the resolution with modifications. 3) Decline to accept the report and decline to adopt the resolution.

RECOMMENDED ACTION:

Accept report and adopt a resolution declaring City Council’s intention to levy an annual assessment for calendar year 2023 for the Downtown San Rafael Business Improvement District.

ATTACHMENTS:

1. Resolution

2. BID 2022 Annual Report, including:

A. Exhibit A: BID Map
B. Exhibit B: 2023 BID Assessment Formula
C. Exhibit C: BID 2022 / 2023 Budget
D. Exhibit D: Memo – BID 2022 / 2023 Financial Summary
RESOLUTION NO.

RESOLUTION OF THE SAN RAFAEL CITY COUNCIL DECLARING THE CITY COUNCIL’S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR CALENDAR YEAR 2023 FOR THE DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT

DISTRICT
WHEREAS, California Streets and Highways Code Sections 36500 et seq. authorizes cities to establish parking and business improvement areas for the purpose of promoting economic revitalization and physical maintenance of business districts, in order to create jobs, attract new businesses and prevent erosion of business districts; and
WHEREAS, the Downtown San Rafael Business Improvement District (“BID”) was established in 2013 to amend the existing Parking and Business Improvements District instituted in 1979 in the commercial area on and around the Fourth Street corridor in San Rafael; and
WHEREAS, pursuant to San Rafael Municipal Code Chapter 10.09 and California Streets and Highways Code Section 36533, the Advisory Board of the BID shall prepare an annual report for each calendar year in which assessments are to be levied which the City Council shall review; and
WHEREAS, the BID Advisory Board has prepared and filed with the City Clerk its “BID 2022 Annual Report” and the City Council has reviewed and approved the report; NOW THEREFORE BE IT RESOLVED by the City Council of the City of San Rafael as follows:

1. The City Council intends to levy and collect an annual benefit assessment for calendar year 2023 on businesses in the Downtown San Rafael Business Improvement District to pay for selected improvements and activities of the BID.

2. The boundaries of the entire area to be included in the BID, and the boundaries of each separate benefit zone within the BID, are set forth in Exhibit A to the BID 2022 Annual Report on file with the City Clerk.

3. The types of improvements and activities proposed to be funded by the levy of assessments on business in the BID are set forth in the BID 2022 Annual Report on file with the City Clerk.

4. The method and the basis for levying the benefit assessment on businesses within the BID and proposed assessments to be levied for calendar year 2023 are set forth in San Rafael Municipal Code Section 10.09.050 and Exhibit B to the BID 2022 Annual Report on file with the City Clerk.

5. All funds of the BID shall be expended on improvements and activities within the BID.

6. New businesses shall not be exempt from payment of the fee.

7. A public hearing to consider the levy of the BID assessment shall be held before the City Council on December 5, 2022 at 7 p.m. in the Council Chambers, 1400 Fifth Avenue, San Rafael, California or by teleconference by visiting https://www.cityofsanrafael.org/departments/public-meetings/ for the call-in phone number and meeting ID listed on the agenda (or using Zoom app to connect to this meeting ID).

At the public hearing the testimony of all interested persons, for or against the levy of the BID assessment or on any of the matters included in the assessment, will be heard and all protests collected.

8. A protest against the assessment of the BID, or any aspect of the assessment may be made in writing or orally at the public hearing. To be counted as a part of a majority protest against the assessment of the BID, a protest must be in writing and from a business in the BID. A written protest may be withdrawn from the record at any time before the conclusion of the public hearing. Each written protest shall contain a written description of the business in which the person signing the protest is interested, sufficient to identify the business, and its address. If the person signing the protest is not shown on the official records of the City of San Rafael as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the business. Any written protest of the regularity of the proceedings shall be in writing and clearly state the irregularity or defect to which objection is made.

9. If at the conclusion of the public hearing on December 5, 2022 there is a record of written protests by business owners within the BID who will pay fifty percent (50%) or more of the total assessments of the entire BID, no further proceedings to levy the proposed assessment shall occur for a period of at least one year from the date of the finding of the majority written protest by the City Council. If the majority written protest is against the furnishing of a specified type or types of improvement or activity within the area, those types of improvements or activities shall be eliminated.

10. Further information regarding the Downtown San Rafael Business Improvement District may be obtained from the Office of Economic Development at 1400 Fifth Avenue, San Rafael, CA 94901.

11. The City Clerk is directed to give notice of said public hearing by publishing this resolution of intention once in a newspaper of general circulation in the City of San Rafael, at least seven days before the hearing; and by mailing a complete copy of this Resolution of Intention to those interested parties who have filed a written request with the local agency for mailed notice of public meetings or hearings on new or increased general taxes.

I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 21st day of November 2022, by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Lindsay Lara, City Clerk
Dear Fellow BID Members,
First, I want to thank Eda Lochte and Jaime Ortiz for their years of service to the Business Improvement District. The BID was truly transformed into an organization that the community could count on and be proud of.

This year, we found a new Executive Director in Sarah Tipple. She has been a wonderful addition and has made an immediate, positive impact for the BID.

As things slowly get back to normal this year, we have brought back traditional events, like the May Madness Car Show, while also assisting with the implementation of new ideas, like the permanent Streetaries program, the Friday Night Block Party, and the Hops and Vines Stroll.

In 2023, we plan to build on our prior success while also developing new ideas to improve our downtown and our community.

Please visit DowntownSanRafael.org to see all the BID is doing, to update your directory listing, and continue to be involved.

Jed Greene, President
BID BOARD OF DIRECTORS 2022/23
Interim President
Jed Greene,
Five Corners Group
Vice President
Adam Dawson,
Mike’s Bikes
Jeff Brusati,
T & B Sports
.

Bishlam & Amy Bullock,
Salon B Style Lab
Elisabeth Setten –
Art Works Downtown
Morgan Schauffler,
Youth in Arts
Your name here!
Secretary
Tobi Lessem,
Bodywise Massage
Social Media Chair
Erika Bowker,
Pleasures of the Heart
Treasurer
TBD
Terrance Thornton,
San Rafael Martial Arts
Committee Members:

Jaime Ortiz,
Bank of Marin
Ryan Spencer,
Libation Taproom
Meg Reilly,
Marin Society of the Arts
..
2022Annual Report

SAN RAFAEL

DOWNTOWN BID
Development, Organization, andDesign Marketing &Promotions • ARPA Fund Proposal – The BID created a proposal
requesting $70, 000 of the ARPA Funds to go toward the
following BID Projects: Marketing & Promotion, Event
Planning & Production, Beautification, Walking Tour
App, Expansion of Second Friday Art Walks, Community
Public Art Projects. The request is pending.
 Downtown San Rafael Arts District Collaboration – The BID's DSRAD committee advocated for ARPA funding and
California Arts Council support to subsidize multiple
creative placemaking projects aimed at revitalizing and enhancing downtown San Rafael. DSRAD, in concert with
their fellow Cultural Arts Districts, was successful in reactivating a direct funding structure from the
California Arts Council and expects disbursement in
2023.
 Fundraising & Event Management – Through successful
events and the BID being able to do most event tasks inhouse, expenses were decreased, and our bottom line was increased with two signature events, May Madness,
and the Hops & Vines Stroll.
 Beautification – Worked with the City’s new Volunteer coordinator to discuss future landscaping projects for
volunteers to help beautify our Downtown.
 New Trashcans in Downtown – Last year, the BID was
on the selection and advocation team to get new
trashcans in Downtown San Rafael. They arrived this
year and their sleek appearance really lifts Downtown
San Rafael’s aesthetics.
 Welcome Packets – The BID created an info sheet of
what the BID is, does, and why it exists to give new
Downtown Businesses insight into who we are and what
we do.
 SR Chamber Partnership – The BID now has an office
located at the San Rafael Chamber, which is a great path toward stronger collaborations and networking
opportunities.
 Member emails, newsletters, and updates – Monthly
Newsletters included news on City updates, fellow
business events/openings, and events. Also,
continuously updated members on DPW activity on their
blocks.
 Hands-on help – Executive Director is actively available by phone and in person to meet with and discuss
member activities and concerns.
 Streetary Program- The BID was included in the
development of this program and advocated for more
business involvement, affordability, and frequent
communication during the rollout.
 City partnerships – worked with City government and
departments including Economic Development, Public
Works, Parking, Parks & Recreation, and SRPD.
 Website updates – Gave DowntownSanRafel.org site a
facelift by updating the events page to include all ongoing events, the News page with all news from members and
city updates, added useful San Rafael Business resources to the About Downtown Page, and more.

BIDAccomplishments 2022
 Walking Tour Mobile App - Developed a user-friendly
Walking Tour of Downtown San Rafael on the Distrx
Mobile App, to highlight historical and cultural points of interest throughout the downtown. Funding for long-term implementation pending approval.
 Designed a smART Train Tour Program – Created an
interactive map to emphasize multiple artistic institutions easily accessed along the smART train route, with San
Rafael as the center point. Meetings to further develop the project are expected in fall 2022.
 Partnered with CFI (California Film Institute) and Mill Valley Film Festival – Created a “Ticket Stub Incentive” Program to get the ticket holders and filmmakers inside our Downtown Businesses. The goal is to promote foot
traffic to our BID District to support local small businesses.  Embassy Suites Partnership – The BID partnered with the Embassy Suites in San Rafael to generate more foot traffic Downtown by adding a QR code linking to our events page to their guest’s “What to Do” guide, giving them $5 off to Hops event, and discussing a possible punch card list of deals and discounts that downtown businesses can offer
to their guests.
 Social media director – Board member Erika Bowker
actively posts to 5,600 followers on Instagram and
Facebook and multiplies effects by engaging with
Downtown businesses’ social media and email campaigns.
 Shop Local during the Holiday Season - print and digital ad campaigns for the holiday season and free parkingUpcoming Downtown Sa n Rafael Events

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BIDAccomplishments 2022
Event Success
 Clean & Green Day (Fri. April 22, Earth Day)
 Dining Under The Lights featuring Live Music,
Outdoor Dining, and Kids Activities (Thurs. end of May
through Sept)
 Friday Night Block Party in the West End (Fri. end of May through Oct)
 32nd Annual May Madness (Sat. May 7)
 Downtown BID Night at the Pacifics ( June 21)
 Annual San Rafael BID Mixer (Thur. Sept. 22)
 2nd Annual Hops & Vines Stroll (Sat. Sept 24)
 4th Annual West End Culture Crawl (Sat. Oct. 8)
 34th Annual Trick or Treat on 4th Street & Pet Costume Contest (Sat. Oct. 29)
 Dia De Los Muertos Alter Displays (thru Nov 5)
 Elf Hunt (Nov-Dec)
 San Rafael Parade of Lights & Winterwonderland on
Shop Small Saturday (Nov 26)
In 2022, we brought back many popular events after the
2-year hiatus due to the pandemic and were also able to raise money for the BID in the process.
 Promoted ALL Downtown Events/Activities – To keep
members and the community informed on all things
Downtown, the BID promoted all events in or near
Downtown on our events page & Newsletters, not just
BID-produced events, including 2nd Friday Art Walks, San Rafael PorchFest, Mill Valley Film Festival, Dia De Los Muertos Car Procession, San Rafael Lighted Boat Parade, Heads Up Carnival at Davidson, Doc Lands Film Festival, State of the City Dinner, Youth in Arts C Street
Celebration, and the Sunset Criterium. These events
brought many visitors to our Downtown.
 Dining Under the Lights – The BID continued to support the successful Dining Under the Lights Program. The
block party feel of having several different blocks closed throughout downtown gave businesses the choice to be
involved by booking live bands or bringing their tables into the street for alfresco dining.
 West End Block Party – West End businesses built a
successful Thursday and Friday night block party, which began under Dining Under the Lights, by booking great
bands, creating a welcoming beverage garden and dining
area, and having large neighborhood support. In
partnership with the City, the BID supported the vibrancy that this event brought to Downtown and advocated to
help the organizers continue it as a two-day event,
rather than shortening it to a one day.
 Clean & Green – Every year on Earth Day, the BID and
Cory Bytof with the City of San Rafael coordinate a day of trash clean-up, graffiti removal, polishing street poles, and landscape weeding and mulching. This year, the
event had more volunteers than ever, almost 40 people,
including staff from Bio Marin, SRPD, and many of our
very own BID Board Members.
 May Madness – After a 2-year hiatus, May Madness was
back and ready to Roll in 2022. The BID’s volunteer
event committee and Rick with Gold Rush Jewelers
worked tirelessly to bring thousands of people
downtown to enjoy over 200 hot rods, food, beverages,
and the Classic Car Parade. It was a day to remember.

The BID made a net profit of $6,229.84.
 Dia de los Muertos window displays & Car procession – Downtown merchants will again present window altars
for Day of the Dead in collaboration with Marin
Multicultural Center, San Rafael Dia de los Muertos, City Rec Dept. and artists.

Complete List of BID Events in 2022
Future Marketing, Development, Events, and Operations
DowntownSanRafael.org Phone:415-849-1876 Email:[email protected] Downtown San Rafael BID2023Preliminary Work Plan
 If the ARPA request is approved, funding will go
toward: Marketing & Promotion, Event Planning &
Production, Beautification, Walking Tour App,
Expansion of Second Friday Art Walks, & Community
Public Art Projects.
 Walking Tour App- Launch the Walking Tour App of
Downtown San Rafael with ARPA funds.
 Encourage more family-friendly events and
fundraisers – Work closely with local family groups to
provide the much-needed niche of more family
activities in Downtown.
 Engage with the local College Students – Create a Back to School Night or program, where students can visit
our website and see all the places in Downtown where
their student ID can get them discounts or deals.
 Farmer’s Market – Rebuild the relationship with AIM to bring back the Thursday Night Farmer’s Market to
Fourth Street.
 Makers Markets – Meet with other maker market
producers to bring their event to our downtown on a
Thursday Night.
 smART Train Tour Program – Further develop and
launch the interactive map of art stops along the
SMART train route with our Downtown at the Heart.
 Outdoor Movie Night – Work with Park & Recs to bring
their successful outdoor movie night in the park
program to our Downtown.
 Social Media Manager Contractor - The BID is
interested in hiring a part-time social media contractor to promote and showcase a different Downtown
Business each day on IG & FB. Our current Social Media
Director will still promote our events.
 Add board members, committee members, and
volunteers – Actively recruit committee members and
engage prospective board members to build an
inclusive environment for greater equity and diversity.

If you are interested, please contact us!
 Communicate with members/community outreach –
Continue engagement via website, email, newsletters,
social media, marketing, advertising, & in person
 Beautification & Art – Work with the new City Library & Rec Director to look at public art opportunities.
 Landscaping upgrades - Hardscape landscaping updates
to intersections via volunteer coordination.
 Raise BID funding – Explore supplemental funding
sources through more financially lucrative events,
matching funds from the City, and more.
 Scavenger Hunts – If funding allows, the Walking Tour App can be used to create “Apptivities” and we can
create scavenger hunts within the businesses. If
successful, we’d like to create one for each season.
 Explore partnerships with all local Schools –Create
more collaborative relationships between Dominican
and other SR Schools to expand BID’s reach to create
added visibility and excitement for Downtown.
 Partnership & Collaboration – Continue to align the
BID with the DSRAD, the SR Chamber, Pacifics, Embassy
Suites, CFI, the City, SMART, SRPD, & more.
 Resume Dining Under the Lights & The Friday Block
Party in the West End– Refine the program in
partnership with the City to create an ongoing Summer
outdoor program.
 Events: The BID has committed to continue May
Madness, Hops & Vines, and all other events produced
in 2022.

I want to thank this AMAZING BID Board for their
passion, commitment, experience, and support as we
all work to continue making Downtown San Rafael a
fantastic place to work and live.

I would also like to thank all the Business owners and
staff that have welcomed me as their Director and
that have taken the time to speak with me about
their constructive ideas and experience on 4th Street.

I am passionate about Downtown San Rafael and the
people and businesses that thrive here! Please
don’t hesitate to reach out to me. I look forward to
hearing from you!
-Sarah Tipple, Executive Director
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Document Path: X:\Finance\BID\BID_Edits_20180802.mxd ZBaron Print Date: 8/13/2018 San Rafael Business Improvement District (BID) PREMIUM BID -

STANDARD BID -
2023 BID Assessment Formula
Exhibit B
San Rafael Downtown BID Budget Exhibit C
2021 Year End Fund Balance $61,687 2022 Year End Fund Balance $43,531 Revenues 2022 Programs
Year 2022
Estimated Year End 2023 Programs
Year 2023
Proposed Budget
BID Assessments $61,648 BID Assessments $60,000
Event Income $50,887 Event Income $50,000
Total Operating Income $112,535 $110,000
Expenses
Events May Madness ($19,290) May Madness ($20,000)
Hops and Vines ($9,767) Other Events/Costs: ($32,000)
Culture Crawl ($926) Hops and Vines
Trick or Treat ($450) Culture Crawl
Shop Small & Winter Fest ($2,500) Trick or Treat
Clean and Green Day $0 Winter Wonderland
Clean and Green Day
Event Staffing ($16,475) Mixers
August Hot Nights
West End Celebration
Event Staffing
Events subtotal ($49,408) ($52,000)
Initiatives
Thursday Nights/DUTL
(includes BID staff costs) ($18,217)
Thursday Nights/DUTL
(includes BID staff costs) ($15,000)
West End Block Party
(includes BID staff costs) ($8,237)
West End Block Party
(includes BID staff costs) ($9,000)
Beautification
Initiatives subtotal ($26,454) ($24,000)
Marketing & Promotions Advertising/Marketing ($2,300) Advertising/Marketing ($2,500) Website Maintenance ($1,500) Website Maintenance ($2,000) Member Communication/Mixer ($1,962) BID Member Communication ($1,000) Social Media ($1,000)
Marketing & Promotions Subtotal ($5,762) ($6,500)
Operating Expenses Staffing ($21,966) Staffing ($22,000) Insurance ($4,900) Insurance ($4,900)
Office Expense (supplies,
communications, etc.) ($3,443)
Office Expense (supplies,
communications, etc.) ($3,500)
Professional Fees ($1,500) Professional Fees ($3,000)
Consultant ($7,965) Taxes and Payroll Costs ($5,300)
Taxes and Payroll Costs ($5,292) Rent ($4,800)
Rent ($4,000)
Operating Expenses Subtotal ($49,066) ($43,500)
Total Expenses ($130,691) ($126,000)
Net Profit/(Loss) ($18,156) ($16,000)
Projected 2022 Ending Fund Balance/Carryover to 2023 $43,531 2023 Ending Fund Balance $27,531 Memorandum
To: San Rafael City Council
From: Jed Greene, President
San Rafael Business Improvement District
Date: October 24, 2022
Re: San Rafael Business Improvement District Financial Summary This memorandum highlights the significant 2022 financial activity of the San Rafael Business Improvement District (BID) and the 2023 proposed budget. 2022
Downtown San Rafael is coming back to life after some slow COVID years. The BID hosted numerous events, including two highly successful (and profitable) events: May Madness and the Hops and Vine Stroll.

Unfortunately, our BID assessments were much lower than usual and our costs have increased.

Proceeds from BID assessments decreased to $61,648, approximately 25% lower than our typical assessment revenue of $83,000. Payroll costs, as well as higher costs due to inflation, increased our overall expenses for the year.

We project a loss of approximately $18,000 for 2022, leaving the BID with a cash balance of $43,500. 2023
We will continue to host similar events to last year, plus a few more new events. These events are either profitable or low cost, with a significant benefit to the Downtown community.

We project that our costs will remain high and that our BID assessments will remain similar to 2022. As a result, without additional funding, we will need to postpone some of our initiatives (e.g. beautification, downtown walking app).

We project a loss of approximately $16,000 for 2023, leaving the BID with a cash balance of $27,500. ____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Manager, Sustainability Division
Prepared by: Kate Hagemann
Climate Adaptation and Resilience
Planner
City Manager Approval: ___
TOPIC: ACCEPTING GRANT FUNDS TO SUPPORT RESILIENCE PLANNING SUBJECT: RESOLUTION ACCEPTING THE GRANT OF FUNDS FROM THE STATE

COASTAL CONSERVANCY AND MARIN COMMUNITY FOUNDATION FOR

THE CANAL COMMUNITY RESILIENCE PLANNING PROJECT AND
APPROPRIATING FUNDS IN THE AMOUNT OF $762,000 FOR PROJECT #31100
RECOMMENDATION: Adopt a resolution accepting the grant of funds from the State Coastal Conservancy and Marin Community Foundation for the Canal Community Resilience Planning Project and appropriating funds in the amount of $762,000 for project #31100.

BACKGROUND:

On September 22, 2022, the State Coastal Conservancy adopted a resolution authorizing a grant of up to $700,000 to the City of San Rafael (“grantee”) for the Canal Community Resilience Planning Project (“the project”). The resolution was adopted by the Conservancy after being favorably recommended by staff. Additionally, the Marin Community Foundation has decided to award this project $62,000 to further support this work and bolster the community engagement and training aspects.

The grant application was developed collaboratively earlier this year by staff from the City of San Rafael’s Sustainability Division, County staff with expertise in sea level rise, and community partners the Multicultural Center of Marin, and the Canal Alliance. The purpose of the grant is to conduct a community-informed technical feasibility study of sea level rise adaptation options along the greater Canal neighborhood shoreline of San Rafael. It will include robust engagement in our priority equity community census tracts to ensure that underrepresented community members have a voice and that inclusive decision-making guides the process.

The City will work with the County of Marin and community-based organization project partners Canal Alliance and Multicultural Center of Marin (“Project Team”) to build capacity of the two organizations by hiring staff to help lead the project and develop culturally relevant community engagement methods for these areas, which have been identified as most vulnerable by the Bay Conservation and Development Commission’s 2020 Regional Sea Level Rise Vulnerability and Adaptation Study.

Agenda Item No: 4.d
Meeting Date: November 21, 2022
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Geographically, the Project Study Area is the entire shoreline area within the boundaries of City of San Rafael and can be loosely framed by downtown on the west, the Richmond-San Rafael Bridge to the east, and McNears Beach to the north. The Project Study Area includes both sides of the San Rafael Canal. Socially, the study’s focal community Engagement Area is the Canal neighborhood, census tracts 1122.03 and 1122.04. A particular focus will be on creative ways to engage people in multifamily housing since most of the residents in the Engagement Area are tenants and many are subletters.

The Project will conduct a technical feasibility study that considers nature-based, hybrid, and hard infrastructure sea level rise adaptation measures. These will include but not be limited to consideration of the full range of nature-based solutions such as ecotone levees and subtidal habitat restoration, green-grey riprap, and traditional engineered solutions such as sea walls and a tide gate at the mouth of the Canal. Through the technical feasibility study and collaborative community planning process, a minimum of at least one project will be identified for further development and implementation.

Additionally, the Project will produce community-developed policy language for the City’s multihazard climate adaptation plan, and potentially other plans and documents such as a proposed neighborhood plan, housing plan, and other General Plan-related documents.

The Project will simultaneously model a collaborative planning process that elevates the community’s role in decision-making, adaptation planning work, and other critical local policy decisions. Providing funding for staff at two community-based organizations will build capacity at each to engage fully in the project and advocate on behalf of their constituents.

The City will be responsible for coordinating with the Conservancy to keep them informed about the project status. The City will manage the budget, schedule, requests for disbursement, and other project management activities.

The City will be part of a larger, collaborative Project Team that includes the Canal Alliance, Multicultural Center of Marin, and the County of Marin. The Project Team will meet regularly to coordinate on the project strategy, review documents, prepare for meetings, and initiate and respond to communications with the public and other partners.

Throughout the course of the project there will be multiple opportunities for interested residents, business leaders, agencies, and others to participate and craft the community-led planning process. The intention of this goal is to deepen, broaden, and enhance community participation and that will be at the center of all activities over the coming years.

ANALYSIS:

Over the past several years the City, community organizations, and other agencies have made significant progress understanding the implications of rising water levels. This grant will allow the City, partners, and residents to dive deeper into understanding the implications, debate potential solutions, and prioritize short-term actions. Most importantly, this project will help broaden the conversations around these issues to increase the participation of residents living in the Canal neighborhood who are some of the most exposed to the negative consequences of sea level rise.

This grant does not require a direct match from the City; however, staff time and use of community facilities such as the Albert J. Boro Community Center will be provided as in-kind match to facilitate the successful completion of this project over the next three years. Without action, sea level rise is expected to negatively impact communities, housing, businesses, and major infrastructure in the next several decades. Accepting this grant could help the City avert these negative consequences by proactively identifying adaption measures that will help protect the SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
community in the coming years.

FISCAL IMPACT: If the grant is accepted, funds would be appropriated in Project #31100 in the amount of $700,000 from the Coastal Conservancy and $62,000 from the Marin Community Foundation for a total appropriated amount of $762,000.

The matching funding for this grant ($138,000) is in the form of in-kind staff time and use of facilities over the three-year grant period. The match is primarily the time of the City’s Climate Adaptation and Resilience Planner, who would be working on these issues in the absence of this grant as well. This position is included in the Sustainability Division’s budget in the General Fund.

There is no cash match requirement for this grant.

OPTIONS:

The City Council has the following options to consider relating to this item:

1. Adopt the resolution as presented.

2. Adopt the resolution as amended.

3. Direct staff to return with additional information.

RECOMMENDED ACTION:

Adopt a resolution accepting the grant of funds from the State Coastal Conservancy and Marin Community Foundation for the Canal Community Resilience Planning Project and appropriating funds in the amount of $762,000 for project #31100.

ATTACHMENTS:

1. Resolution

2. Grant workplan submitted to the State Coastal Conservancy

3. Grant budget submitted to the State Coastal Conservancy RESOLUTION NO.

A RESOLUTION ACCEPTING THE GRANT OF FUNDS FROM THE STATE COASTAL

CONSERVANCY AND MARIN COMMUNITY FOUNDATION FOR THE CANAL

COMMUNITY RESILIENCE PLANNING PROJECT AND APPROPRIATING FUNDS IN THE AMOUNT OF $762,000 FOR PROJECT #31100
WHEREAS, the Legislature of the State of California has established the State Coastal Conservancy (“Conservancy”) under Division 21 of the California Public Resources Code, and has authorized the Conservancy to award grants to public agencies and nonprofit organizations to implement the provisions of Division 21; and
WHEREAS, the Conservancy awards grants for projects that it determines are consistent with Division 21 of the Public Resources Code and with the Conservancy’s Strategic Plan and that best achieve the Conservancy’s statutory objectives, in light of limited funding; and WHEREAS, at its September 22, 2022 meeting, the Conservancy adopted a resolution authorizing a grant of up to $700,000 to the City of San Rafael (“grantee”) for the Canal Community Resilience Planning Project (“the project”). The resolution was adopted by the Conservancy pursuant to and is included in the Conservancy September 22, 2022 staff recommendation, a copy of which is on file with the grantee and with the Conservancy; and WHEREAS, the Conservancy requires that the governing body of the grantee certify through a resolution that it approves the award of Conservancy grant funding and authorizes the execution by a representative of the grantee of a grant agreement on terms and conditions required by the Conservancy grant agreement number 22-057; and
WHEREAS, the Marin Community Foundation has also decided to award an additional $62,000 to support this same project.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Rafael hereby:

1. Accepts the award of grant funding from the Conservancy and Marin Community Foundation for the project.

2. Acknowledges that it has or will have sufficient funds to complete the project and, if any property is acquired as part of the project to operate and maintain the property, and, if any facilities are constructed as a part of the project, to operate and maintain the facilities for a reasonable period, not less than the useful life of the facilities.

3. Agrees to be bound by all terms and conditions of the grant agreement and any other agreement or instrument as may be required by the Conservancy and as may be necessary to fulfill the terms of the grant agreement and to complete the project.

4. Authorizes the City Manager or their designee to act as a representative of the City, to negotiate and execute on behalf of the City all agreements and instruments necessary to complete the project and to comply with the Conservancy's grant requirements, including, without limitation, the grant agreement.

5. Appropriates funds in the amount of $762,000 from Project #31100 to be spent on the grant work plan agreed upon with the two grant funders.

I, Lindsay Lara, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the San Rafael City Council held on the 21st day of November 2022, by the following vote to wit:

AYES:

NOES:

ABSENT:

______________________
LINDSAY LARA, City Clerk
1 WORK PROGRAM
Grantee City of San Rafael
Project Name Canal Community Resilience Collaboration
SCC Grant Agreement # 22-057
Date October 24, 2022 to March 31, 2025
I. PROJECT DESCRIPTION
The purpose of this Project is to conduct a community-informed technical feasibility study of sea level rise adaptation options along the greater Canal District shoreline of San Rafael (“Project Study Area”). It will include robust engagement in our priority equity community census tracts (“Primary Engagement Area”) to ensure that underrepresented community members have a voice and that inclusive decision-making guides the process. The City of San Rafael (Grantee) will work with the County of Marin and community-based organization (CBO) project partners Canal Alliance and Multicultural Center of Marin (“Project Team”) to build capacity of the two organizations by hiring one staff person per organization to help lead the project and develop culturally relevant community engagement methods for these census tracts, which have been identified as most vulnerable by the Bay Conservation and Development Commission’s 2020 Regional Sea Level Rise Vulnerability and Adaptation Study.

Geographically, the Project Study Area is the entire shoreline area within the boundaries of City of San Rafael and can be loosely framed by downtown on the west, the Richmond-San Rafael Bridge to the east, and McNears Beach to the north. The Project Study Area includes both sides of the San Rafael Canal.

The Project will conduct a technical feasibility study that considers nature-based, hybrid, and hard infrastructure sea level rise adaptation measures within the Project Study Area.

These will include but not be limited to consideration of the full range of nature-based solutions such as ecotone levees and subtidal habitat restoration, green-grey riprap, and traditional engineered solutions such as sea walls and a tide gate at the mouth of the Canal.

Through the technical feasibility study and collaborative community planning process, a minimum of at least one project will be identified for further development and implementation.

Additionally, the Project will produce community-developed policy language for the City’s multi-hazard climate adaptation plan (currently in development, anticipated completion in spring 2025), and potentially other plans and guiding documents such as a proposed neighborhood specific plan, housing plan or strategy, and other General Plan-related documents.

The Project will simultaneously prototype and model a collaborative planning process that elevates the community’s role in decision-making to be used in future resilience and SCC Grant Agreement # 22-057
2 adaptation planning work and other critical local policy decisions. Providing funding for staff at two community-based organizations will build capacity at each to engage fully in the project and advocate on behalf of their constituents. An effectiveness evaluation will summarize the process and guide future engagement efforts for the City and County. 3 II. SCOPE OF WORK
Task 1 Project Management
The Grantee will coordinate with the Conservancy Project Manager to keep them informed about the status of the Project. Grantee will manage the budget and schedule, submitting requests for disbursement, and other project management activities. Before hiring subcontractors for work under this grant agreement, Grantee will submit subcontractor qualifications to perform specified tasks for the review and approval of the Conservancy Project Manager. In the progress reports, the Grantee shall document all subcontractor activities, deliverables completed, progress, issues, and proposed resolutions.

Subtask 1.2 Project Team Management
The Grantee is part of a collaborative Project Team that includes two CBOs– Canal Alliance and Multicultural Center of Marin (MCM) – and the County of Marin. While all team members have long supported work in the community, working together on this effort will require coordination as we establish stronger networks and trust with each other and the community. The Project Team will meet regularly to coordinate on the project strategy, review documents, prepare for meetings, and initiate and respond to communications with the public and other partners.

Task 1 Deliverables: progress reports, invoices, and subcontract documentation Task 2 Community-Informed Technical Feasibility Study
Complete a community-informed technical feasibility study to evaluate nature-based, hybrid and hard infrastructure options that can increase community resilience to sea level rise and flooding in the Project Study Area. The options will reflect community priorities and technical feasibility, with at least one project option identified along with specific recommendations for further project development and implementation (i.e., considerations for landowner approval, project lead for CEQA and permitting, etc.).

Subtask 2.1: Confirm study area and selected sea level rise scenarios The Canal Community Resilience Collaboration study area consists of two nested scales:
geographic and social. Geographically, the Project Study Area is the entire shoreline area loosely framed by downtown on the west, the Richmond-San Rafael Bridge to the east, and the McNears Beach to the north in order to develop comprehensive solutions at the operational landscape unit scale. Specific project boundaries will be confirmed by the Steering Committee (Task 4.3). Socially, the study’s focal community Engagement Area is the Canal Neighborhood, census tracts 1122.03 and 1122.04.

The Project will begin with consideration of the six sea level rise scenarios used in the 2017 BayWAVE Vulnerability Assessment:

SCC Grant Agreement # 22-057
4 BayWAVE Scenarios Sea Level Rise +100-year storm
Near-term (approx. 2030) 10 inches 46 inches (3.8 feet) Mid-term (approx. 2050) 20 inches 56 inches (4.7 feet)
Long-term (approx. 2100) 60 inches 96 inches (8 feet)
Working with the technical consultants, the City will confirm which of the BayWAVE sea level rise scenarios-- or other additional scenarios--best capture current, near-term, midterm, and long-term impacts to the Project Study Area and carry that specific subset of scenarios forward throughout the Feasibility Study.

Task 2.1 Deliverables: Study area maps; memo confirming sea level rise scenarios with high level summary of the sea level rise scenarios selection process Subtask 2.2: Confirm identified vulnerable assets
Build on prior work completed in the BayWAVE Vulnerability Analysis, San Rafael Sea-Level Rise Adaptation Study (ESA 2020), and other regional studies to confirm physical asset vulnerabilities within the study area for the selected sea level rise scenarios. Confirmation of asset vulnerabilities will include a comprehensive consideration of stormwater, drainage, existing flooding, and future sea level rise, in dialogue with City of San Rafael Department of Public Works. The community will review vulnerable assets identified in BayWAVE and other prior work and add any physical asset vulnerabilities not already identified.

Task 2.2 Deliverables: Inventory of vulnerable assets; maps by asset type and SLR scenario as well as visuals developed for public engagement Subtask 2.3: Identify and describe possible adaptation measures at different planning horizons
Work with technical consultant to develop culturally relevant and non-technical visual materials that engage the community and clearly depict a broad range of possible naturebased, hybrid, and hard infrastructure adaptation measures. The materials will show how each measure relates to combined sea level rise and flooding levels, so the community understands “what works when and where”. Communicate the broad benefits, limitations, and tradeoffs of these different options, providing information about:
- level of fluvial and tidal flood protection
- effectiveness at different planning horizons
- spatial and ecological requirements
- construction cost estimates
- permitting requirements (to demonstrate feasibility)
SCC Grant Agreement # 22-057
5 - public access, ecology, and other co-benefits identified by the community and technical consultant, e.g., neighborhood beautification, transit network resilience, etc.
- potential threats and benefits to community posed by each adaptation measure including flooding risks, catastrophic risks associated with infrastructure failure, and non-structural threats like gentrification, economic losses, and other negative economic impacts
Task 2.3 Deliverables: Draft and revised lists of adaptation co-benefits; graphic renderings of a range of adaptation measures or combinations of measures accompanied by plain-language written descriptions of each measure or combinations of measures; matrix or other document presenting tradeoffs.

Subtask 2.4: Refine and analyze list of adaptation measures based on community input Winnowing the broad range of adaptation measures to a narrower set for detailed analysis will depend on community priorities informed by technical analyses, feedback from the Steering and Technical Advisory Committees, regulatory feasibility, and alignment with City plans and priorities. For example, what time horizon should the City and County plan for in this community? What level of flooding is acceptable and what should be addressed immediately? The goal would be to identify flood impacts of concern to the community, both spatially and temporally.

During this Project, the broad set of possible adaptation measures will be refined and developed into more detailed analyses based on the community’s expressed priorities and community discussions with technical consultants and the Project Team about the feasibility of and tradeoffs across different measures. The community will engage on a series of measures that address sea level rise over time and spatially along the stretches of shoreline. Place-based renderings would support informed discussion about the measures. “Adaptation pathways” or other tools that show when critical decision-points require a change in plan based on thresholds like water levels and preferred near-term adaptation measures could demonstrate trade-offs and assumptions about future risks.

Summary materials will be prepared to capture design decisions made by the community, including preferences that may eliminate other future choices. These summary materials will also include information on the other aspects of project prioritization including ecological performance and regulatory feasibility. Documentation of community decisions and project prioritization will remain important beyond this grant-funded process.

The consultant team will then research, prepare, and scope at least one spatially-specific measure identified through community input for further design. The team will assemble SCC Grant Agreement # 22-057
6 technical and other background documents to assist the city with preparation of a scope of work for undertaking 30% design in a future project phase. Documents will include guidance regarding assumptions, gaps, and constraints with the feasibility of all measures recommended by the community.

A draft and final study will summarize the benefits, limitations, and tradeoffs presented by the measures or suites of measures for the list of considerations in Task 2.3 (i.e., physical flood protection, economic, regulatory, public access, ecological). For areas of shoreline where consensus or input is limited, the consultant would identify measures that fill gaps to ensure continuity of protection consistent with community input elsewhere along the shoreline.

2.4 Deliverables: Summary documentation of community input and project prioritization; Draft Community-Informed Technical Feasibility Study; Final CommunityInformed Technical Feasibility Study. A minimum of one sea level rise adaptation measure completed to conceptual design level (to include considerations developed in Task 2.3).

Task 3 Staff and Partner Training
The Project Team will organize, attend, and lead trainings to promote competencies in the foundational areas of this project: sea level rise (including causes and impacts, Adaptation Pathways, and nature-based solutions), equitable community engagement, and cultural competency.

Subtask 3.1 Sea Level Rise Training
Grantee will work with County of Marin DPW staff to develop and conduct a series of (6) trainings on the causes and implications of sea level rise, flooding, time scales, compounding effects, and the Adaptation Pathways approach to planning for sea level rise impacts. All relevant Project Team staff and community partners will be provided the training.

Subtask 3.2 Equitable Community Engagement Training
A minimum of (3) trainings specific to inclusive and equitable community engagement will be organized and conducted by the CBOs, with MCM taking the lead. MCM has experience in this realm and will build upon their past efforts to formalize curriculum and training materials. Trainings will be attended by all staff on the Project Team as well as from other relevant stakeholders.

SCC Grant Agreement # 22-057
7 Subtask 3.3 Cultural Competency Training
A minimum of (3) Cultural Competency Trainings specific to the residents of the Canal will be organized and conducted by the two CBOs with MCM taking the lead. MCM has experience in this area and will build upon prior efforts with a particular focus on the Project. Language, culture, norms, perceptions, and empathy training will be included, with a focus on the immigrant experience of people from Guatemala, Mexico, and Vietnam living in San Rafael. These will include information on the variety of affinity groups, resources, programs, and service providers currently engaged with residents. Trainings will be primarily focused on City and County staff and open to other government agencies and stakeholders.

Task 3 Deliverables: copies of training materials; cultural competency protocols; list of staff and project partners trained
Task 4 Community Engagement
The Project Team will develop an engagement strategy and refine the timeline and schedule, conduct stakeholder mapping, identify key community partners, identify community resources for meeting facilitation and support, design materials, develop creative means of communication and documentation of the project, conduct workshops and trainings, develop a community Steering Committee, and develop questions and content for focus groups, surveys, and other community events and groups. This work will all be informed by the lessons from trainings in Tasks 3.1, 3.2 and 3.3. The Project Team will work closely with the feasibility study consultant to develop culturally appropriate and understandable materials for ongoing feedback and input into the study.

Subtask 4.1 Community Development
Canal Alliance and Multicultural Center of Marin serve the Canal community through a range of services and expertise. They are trusted organizations in the community and understand that sea level rise threats require engaged community decision-making. The experience during the pandemic continually demonstrated how much extra time and effort it took to get key messages into the community. No one outreach source is adequate.

Residents come from many different backgrounds and cultures and speak several languages. Of critical importance to issues of land use and planning is the ability to have time, access, and knowledge of complex issues. It is essential for governments and CBOs to spend adequate time meeting people where they are, understanding the needs, values, and cultural milieu of the various subpopulations in a community, and creating materials and processes that work for them. The two CBO partners in this grant application are clear that although they serve this community directly, they do not represent the community per se and that something as significant as adaptation planning will require developing community ambassadors and a capacity within the community to be part of the decision-making.

SCC Grant Agreement # 22-057
8 To accommodate this critical need, each organization will hire one new part-time staff to build subject-matter expertise on sea level rise and engage with the community. These new staff members will work collaboratively with the City, County, and consultant for the feasibility study to conduct robust community engagement for the project.

The Project Team will work with the technical consultant to conduct stakeholder mapping to identify community champions, influencers, resources, affinity groups, and others that should be engaged at different levels throughout the Project. This will include the wide range of demographics represented in the area with a specific focus on the two primary equity census tracts conducted in three languages. It will include representation from the broader study area, as well as other relevant agencies and stakeholders, such as utilities and state and federal agencies.

The Project Team and technical consultant will refer to the stakeholder mapping and schedule interviews with key stakeholders to refine outreach strategies for the Project.

Outreach strategies may include printed visuals (flyers, maps, etc.), electronic media, video content, block parties, volunteer ambassadors, school programming and classroom materials, and participation in existing community events. A particular focus will be on creative ways to engage people in multifamily housing since most of the residents in the Engagement Area are tenants and many are subletters.

Presentations, participation at existing community events, and community block parties will be conducted to get input on the project at different stages and to identify the best methods of engagement as the project unfolds. Community outreach will be carried out collaboratively between the two CBOs and by the consultant, with City and County support, while in others there will be a clear delineation based on constituencies and core competencies. For example, Canal Alliance will lead engagement in multifamily housing and schools, while MCM will lead the video, radio, and other digital media development.

4.1 Deliverables: stakeholder mapping; copies of outreach materials from community events (minimum 4) and large-scale engagements like block parties (minimum 2), including translated materials; documentation of creative communications (such as links to social media account postings, photos and video recordings, project website link, list of trained volunteers, or other engagement products)
Subtask 4.2 Focus Groups
A minimum of (6) focus groups consisting of stakeholders from the underrepresented census tracts in the Engagement Area will be conducted throughout the Project. Focus Groups will elevate people’s concerns and thoughts regarding community resilience and methods of engagement to help guide the sea level rise planning process. The Project Team will engage a professional communications consultant to help conduct the focus groups.

Initial focus groups identifying community values, inclinations, and educational needs on key project topics will be led by MCM. Later focus groups on the draft feasibility study and SCC Grant Agreement # 22-057
9 housing security in relationship with climate adaptation will be led by Canal Alliance. Focus group participants will be carefully chosen to ensure representation from residents that might not otherwise be easily engaged as identified through the stakeholder mapping process.

4.2 Deliverables: focus group attendance rosters; report on findings covering a minimum of (6) Focus Group sessions.

Subtask 4.3 Steering Committee
MCM will take the lead and work with the other Project Team partners to organize and coordinate a community Steering Committee for the Project that includes representation from the greater Project Study Area. The Steering Committee will provide ongoing oversight for the Project. They will learn about sea level rise and flood impacts and solutions, guide the project, and guide the inclusion of community feedback into the feasibility study. They will receive reports and presentations from the feasibility consultant and provide input.

Training will be provided to Steering Committee members throughout the process. The Steering Committee will meet monthly during the early stages of the engagement to review consultant candidates and inform the scope of work for the feasibility study, then will meet every other month for the duration of the project. Committee members who identify the need will be provided stipends to participate and will be expected to contribute 8-10 hours per month to the project including attending regular meetings and some community engagements as well as reviewing materials and providing comments.

4.3 Deliverables: Steering Committee membership roster; meeting agendas, attendance logs, and meeting notes.

Subtask 4.4 Community Workshops
Throughout the process the Project Team will collectively conduct at least 8 larger community workshops in multiple languages to engage the community in the process of the feasibility study. The Project Team will work closely with the feasibility study consultant to decide on and design content to provide participants with meaningful opportunities to contribute and provide feedback. Earlier workshops will be used to help refine the focus of the consultant, while later workshops will be geared toward identifying recommendations and priorities for future implementation. These workshops will be done collaboratively by the full Project Team.

4.4 Deliverables: draft and final copies of workshop presentation materials Subtask 4.5 Technical Advisory Committee
City of San Rafael will take the lead and work with the other Project Team partners to organize and coordinate a Technical Advisory Committee (TAC) for the Project. The TAC will include experts in topics such as sea level rise adaptation planning, nature-based shoreline project implementation, and estuarine ecology. The TAC will inform the scope of work for SCC Grant Agreement # 22-057
10 the feasibility study, be engaged in the selection of the technical consultant team and provide review and feedback on technical analyses and interim technical deliverables at key junctures throughout the Feasibility Study process. TAC members will not be provided stipends. However, should the Project Team be unable to find local expertise in ecological engineering or another key technical aspect a subject matter expert may be hired to fill the role.

4.5 Deliverables: Technical Advisory Committee membership roster; meeting agendas, attendance logs, and meeting notes
Task 5 Local Plan Integration
The Project Team will work with City and County planning partners to develop and codify relevant outcomes and policy language to be included in the City’s climate adaptation plan (being developed concurrently by the City of San Rafael), including but not limited to selected sea level rise scenarios and project or projects identified for further development.

In addition, recommendations, priorities, and other outcomes will be assessed to identify inclusion in other City plans, strategies, and programs such as the Local Hazard Mitigation Plan (LHMP), Housing Element, or Safety Element of the City’s General Plan.

Subtask 5.1 Present to City and County Leadership
Project Team will prepare and conduct presentations to the San Rafael City Council, Planning Commission, and other relevant bodies. This will include prepping the Steering Committee and working with the feasibility study consultant to prepare materials, catalogue feedback and integrate comments.

Subtask 5.2 Develop Policy Recommendations
The Project Team will work with the Steering Committee and consultant to develop final policy recommendations and integrate them into City policies, programs, plans, and implementation activities. Potential documentation may include the Citywide climate adaptation plan, General Plan, Local Hazard Mitigation Plan, Capital Improvement Program, or a neighborhood specific plan, among others.

Task 5 Deliverables: draft and/or adopted policy language and documents; links to presentation recordings
Task 6 Effectiveness Evaluation
The Project Team led by Canal Alliance and MCM will catalogue the project’s engagement activities, delivery of technical information to stakeholders, and project outcomes to conduct an evaluation that can inform the City and County for ongoing community-driven planning. The evaluation will be a continuous part of the process to improve and inform SCC Grant Agreement # 22-057
11 engagement strategies as the Project unfolds. It will also be summarized at the end of the Project in the form of a report to inform further planning and implementation efforts and will document the most and least effective techniques, trainings, and engagements, changes in the strategy based on learnings, and recommendations for improvement.

Qualitative and quantitative evaluations will occur to determine which engagements provided the most feedback as well as where and when feedback carried forward into meaningful adjustments to the feasibility study and outcomes. The evaluation will include internal as well as external feedback through interviews with key stakeholders. It will also provide an analysis of the capacity building function of the Project and lessons learned for ongoing capacity building in the community and with the two CBOs.

Task 6 Deliverable: Effectiveness evaluation report
SCC Grant Agreement # 22-057
12 III. SCHEDULE
Work Completion Date: use date in Grant Agreement
Final Request for Disbursement and Final Progress Report: use date in Grant Agreement Grant Termination Date: use date in Grant Agreement
The Grantee will submit project deliverables as listed in the schedule below. In the event the Grantee anticipates a delay in the project schedule, the Grantee shall inform the Conservancy Project Manager by email prior to the scheduled due date of that task or deliverable.

In the event the project cannot be completed prior to the completion date of the Grant Agreement, the Grantee shall request an extension by email, providing justification for the extension and a revised schedule of completion. There is no guarantee that the grant agreement will be extended.

Task
Number
Task Title Deliverable Estimated
Start Date
Estimated
Completion
Date
1 Project Management Requests for Disbursement
Copies of Subcontracts
Not
Applicable
Monthly
throughout the
contract term
2 Technical Feasibility Study Study, including drafts and community input &
priorities for
implementation
March 2023 November
2024
3 Staff and Partner Trainings Training materials and
documentation
October 2022 May 2023
4 Community Engagement Engagement materials,
outcomes, and
documentation
October 2022 Dec 2024
5 Local Plan Integration Documentation of policies
and plans
March 2024 March 2025
6 Effectiveness Evaluation Report June 2024 March 2025
SCC Grant Agreement # 22-057
13 IV. BUDGET OVERVIEW
Task
Number
Task Title Coastal
Conservancy
Grant
Required
Grantee
Match *
Estimated
Other
Funding
Total
Budget
1 Project Management $ 57,403 $ 11,587 $0 $ 68,990
2 Technical Feasibility
Study
$ 365,694 $ 1,953 $0 $ 367,647
3 Staff and Partner
Trainings
$ 5,193 $ 18,611 $0 $ 23,804
4 Community Engagement $ 144,957 $ 29,375 $0 $ 174,332
5 Local Plan Integration $ 23,923 $0 $60,000 $83,923
6 Effectiveness Evaluation $ 11,050 $0 $ 11,050
Indirect Costs (15%) $ 91,233 $0 $91,233
TOTAL $ 699,452 $ 61,526 $60,000 $ 820,979
*Grantee Required Match
Marin Community Foundation: $61,526 of grant funding awarded May 2022.

California Department of Housing and Community development: $60,000 Local Early Action Planning (LEAP) grant awarded 2021.

In-Kind Match:

City of San Rafael will provide $ 137,584 of staff time as in-kind match to this project.

County of Marin DPW will provide $ 70,742 of staff time as in-kind match to this project.

V. BUDGET DETAIL

5.1 Direct Costs
Direct costs to be billed to this project include the following:
- Translation services: Spanish and Vietnamese translation of targeted project materials, as well as active Spanish and Vietnamese translation at community events, Steering Committee meetings, and Focus Group sessions.
- Childcare services: provided at community workshops and focus group sessions to facilitate equitable community engagement.
- Participation Stipends: provided to Focus Group and Steering Committee members who self-identify as needing financial compensation.
- Printing: for community engagement materials, educational resources, etc. - AV equipment rentals/table rentals/space rentals: for hosting community events - Technical Feasibility Study: this study will be contracted out by City of San Rafael. Scope of services for this $350,000 study shall include technical sea level rise adaptation SCC Grant Agreement # 22-057
14 expertise as well as additional translation services, graphics development and production/printing, and meeting facilitation support.

Food costs for community engagement events will NOT be billed to SCC.

This direct cost will be covered by non-SCC project funding.

5.2 Travel Costs
Travel costs for the grantee and any subcontractors must be billed at State rates which can be found at this link.

5.3 Indirect Costs
Consistent with the City of San Rafael’s indirect cost rate and SCC’s overhead recovery limit, indirect costs will be billed at a rate of 15% of total grant cost.

VI. SUBCONTRACTORS
Grantee may award subcontracts, as necessary, to qualified consultants or other agencies.

Prior to subcontractor initiating work under this agreement, the Grantee shall submit subcontractor qualifications along with a summary of tasks and deliverables to be completed by the subcontractor to Project Manager for approval. These will be reviewed for approval by the Conservancy Project Manager.

Canal Alliance: Canal Alliance primarily serves immigrants in the underrepresented census tracts in the Canal Neighborhood of San Rafael. As one of the main CBO’s serving the neighborhood, they work to better conditions for residents in the area, with a primary focus on Latinx and Spanish speaking residents. Their deep community ties, success in advocacy for their constituents, and focus on policy and housing security positions them well as a Project Team partner in this Project.
https://canalalliance.org/
Multicultural Center of Marin (MCM): MCM serves the wide variety of underrepresented residents of Marin County, with a particular focus on immigrants in the Canal Neighborhood of San Rafael. MCM engages residents in Spanish and Vietnamese as well as immigrants who primarily speak indigenous languages from Central America and is the lead engagement entity for the Tiscornia Marsh Project, a wetlands restoration project in the Canal Neighborhood. They convene the Canal Community Resilience Council and have years of experience with issues of sea level rise and equitable engagement, which makes them an ideal Project Team partner for this Project.
https://multiculturalmarin.org/
Adaptation Planning Technical Consultant (TBD): Through a competitive RFP process, City of San Rafael will secure an adaptation planning consultant to develop and deliver the SCC Grant Agreement # 22-057
15 community-informed technical feasibility study described in Task 2 above. Key competencies for the selected firm must include:
o coastal engineering expertise in both hard infrastructure and nature-based adaptation measures
o project cost estimating expertise in both hard infrastructure and nature-based adaptation measures
o estuarine ecological expertise (ideally from practitioners who have designed and/or monitored shoreline projects)
o shoreline project permitting experience
o sea level rise adaptation planning
o robust graphic design abilities
o public meeting design and facilitation skills
o translation capacity for Spanish and Vietnamese.

Professional Facilitator (TBD): Professional facilitation assistance will be contracted by City of San Rafael, specifically to support development and delivery of the project’s Focus Group sessions.

VII.PLAN FOR ACKNOWLEDGMENT
City of San Rafael will acknowledge Conservancy funding in community workshops hosted throughout the project, project press and promotional materials circulated by the City and County, and website content. Project publications will include written acknowledgement of Conservancy funding.

Please use the linked Acknowledgement Plan and Logo Use guidelines. Your grant manager can also share these documents with you directly.

Photo Release: We encourage grantees to share photographs and other media demonstrating the benefits of Conservancy grants with us. Please note that unless otherwise stated, photographs and other media (including photographs of children and other vulnerable populations) shared with the Conservancy may be used for publicity and education by the Conservancy. Grantees should consider issues of copyright, consent, and privacy before sharing media with the Conservancy.

IV. BUDGET OVERVVIEW
Directions: The budget needs to show the same task categories as the Scope of Work.

Task Task Title
Coastal Conservancy
Grant Grantee Match* (MCF) Estimated Other Funding Total Budget 1 Project Management $57,403 $11,587 $0 $68,990
2 Technical Feasibility Study $365,694 $1,953 $0 $367,646 3 Staff and Partner Trainings $5,193 $18,611 $0 $23,804 4 Community Engagement $144,957 $29,376 $0 $174,333
5 Local Plan Integration $23,923 $0 $60,000 $83,923
6 $11,050 $0 $0 $11,050
Indirect Costs (15%)** $91,233 $0 $0 $91,233
TOTAL $699,452 $61,526 $60,000 $820,978
* If required in grant agreement
* The Conservancy limits overhead recovery to a maximum of 15% of a grant. i.e., the indirect costs charged on labor can exceed 15%, as long as the indirect costs are below 15% of the total cost of the grant. ____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 5.a
Meeting Date: November 21, 2022

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community Development
Prepared by: Don Jeppson, AIA CBO
Chief Building Official
City Manager Approval: ______________
TOPIC: TRIENNIAL BUILDING CODE ORDINANCE AMENDMENTS
SUBJECT: ADOPTION OF AN ORDINANCE OF THE SAN RAFAEL CITY COUNCIL AMENDING TITLE 12 (BUILDING REGULATIONS) OF THE MUNICIPAL CODE OF THE CITY OF SAN RAFAEL, TO ADOPT BY REFERENCE THE 2022 EDITION OF THE CALIFORNIA

BUILDING CODE, THE CALIFORNIA RESIDENTIAL CODE, THE CALIFORNIA

MECHANICAL CODE, THE CALIFORNIA PLUMBING CODE, THE CALIFORNIA

ELECTRICAL CODE, THE CALIFORNIA EXISTING BUILDING CODE, THE

CALIFORNIA GREEN BUILDING CONSTRUCTION STANDARDS CODE, THE

CALIFORNIA HISTORICAL BUILDING CODE, THE CALIFORNIA ENERGY CODE,

AND THE CALIFORNIA REFERENCED STANDARDS CODE, WITH APPENDICES AND AMENDMENTS HEREIN; TO ADOPT BY REFERENCE THE 2021 EDITION OF

THE INTERNATIONAL PROPERTY MAINTENANCE CODE AND THE
INTERNATIONAL SWIMMING POOL AND SPA CODE, WITH AMENDMENTS HEREIN; ADOPTING ADMINISTRATIVE AND PROGRAM PROVISIONS FOR THE CODES; ADOPTING NEW CHAPTER 12.350 WITH ADMINISTRATIVE AND PROGRAM REGULATIONS ON GATE SAFEGUARDS; AND ADOPTING FINDINGS OF FACT

SUPPORTING THE AMENDMENTS TO THE CODES
RECOMMENDATION:

Adopt the Ordinance of the San Rafael City Council Amending Title 12 (Building Regulations) of the Municipal Code of the City of San Rafael, to Adopt by Reference the 2022 Edition of the California Building Code, the California Residential Code, the California Mechanical Code, the California Plumbing Code, the California Electrical Code, the California Existing Building Code, the California Green Building Construction Standards Code, the California Historical Building Code, the California Energy Code, and the California Referenced Standards Code, with Appendices and Amendments Herein; to Adopt by Reference the 2021 Edition of the International Property Maintenance Code and the International Swimming Pool and Spa Code, with Amendments Herein; Adopting Administrative and Program Provisions for the Codes; Adopting New Chapter 12.350 with Administrative and Program Regulations on Gate Safeguards; and Adopting Findings of Fact Supporting the Amendments to the Codes.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
BACKGROUND:

The State of California Code of Regulations Title 24 construction codes are typically updated and published on a three-year cycle. The California Building Standards Commission publishes the tri-annual codes and State law mandates that these codes become effective throughout California 180 days after the publication date. For this latest cycle, the publication date was July 1, 2022, meaning that the current cycle of State construction codes becomes effective on January 1, 2023. This is done to foster uniformity in fire prevention, life/safety and construction standards statewide. Local jurisdictions are permitted to further amend the published codes based on and to suit local climatic, geological, or topographical conditions.

The proposed ordinance adopts the latest version of California Title 24 construction codes. Specifically, this includes the 2022 California Building Code, the 2022 California Residential Code, the 2022 California Mechanical Code, the 2022 California Plumbing Code, the 2022 California Electrical Code, the 2022 California Existing Building Code, 2022 California Green Building Standards Code, the 2022 California Historical Building Code, the 2022 California Energy Code, the California Referenced Standard Code, the 2021 International Property Maintenance Code, and the 2021 International Swimming Pool and Spa Code with appendices and local amendments. State law mandates that these codes become effective statewide on January 1, 2023, with or without the incorporation of local jurisdiction amendments. Building permit applications filed with the City prior to January 1, 2023 would be subject to the currently-adopted codes and City ordinance.

The purpose of the codes is to establish the minimum requirements to safeguard the public health, safety and general welfare through requirements for structural strength, means of egress, access for persons with disabilities, sanitation, adequate lighting and ventilation, and energy conservation; and to provide safety to fire fighters and emergency responders during emergency operations. Below is a summary of each of these codes:
2022 California Building Code: The provisions of this code shall apply to the construction, alteration, movement, enlargement, replacement, repair, equipment, use and occupancy, location, maintenance, removal and demolition of every building or structure or any appurtenances connected or attached to such buildings or structures. 2022 California Residential Code: The provisions of this code shall apply to the construction, alteration, movement, enlargement, replacement, repair, equipment, use and occupancy, location, removal and demolition of detached one- and two-family dwellings and townhouses not more than three stories above-grade in height with a separate means of egress and their accessory structures not more than three stories above the grade plane in height. 2022 California Mechanical Code: The provisions of this code shall apply to the installation, alteration, repairs and replacement of mechanical systems, including equipment, appliances, fixtures, fittings, and appurtenances, including ventilating, heating, cooling, air conditioning and refrigeration systems, incinerators, and other energy related systems. 2022 California Plumbing Code: The provisions of this code shall apply to the installation, alteration, repairs and replacement of plumbing systems, including equipment, appliances, fixtures, fittings, and appurtenances, where connected to a water or sewage system, gas system, and all aspects of medical gas system.
2022 California Electrical Code: The provisions of this code shall apply to the installation and removal of electrical conductors, equipment, and raceways; signaling and communications SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
conductors, equipment, and raceways; and optical fiber cables and raceways to public and private properties, including yards, lots, parking lots, buildings, structures, mobile homes, recreational vehicles, and floating buildings.
2022 California Existing Building Code: The provisions of this code provide flexibility to permit the use of alternative approaches to achieve compliance with minimum requirements to safeguard the public health, safety and welfare insofar as they are affected by the repair, alteration, change of occupancy, addition and relocation of existing buildings. This code shall apply to the repair, alteration, change of occupancy, addition and relocation of all existing buildings, regardless of occupancy.
2022 California Historical Building Code: The provisions of this code provide regulations for the preservation, restoration, rehabilitation, relocation or reconstruction of buildings or properties designated as qualified historical buildings or properties. The intent is to facilitate and provide cost effective solutions for the preservation and continuing use of historical buildings or properties, while providing reasonable safety for building occupants and access for persons with disabilities. 2022 California Energy Code: The provisions of this code shall set minimum efficiency requirements for new and renovated buildings, assuring reductions in energy use and emissions over the life of the building.
2022 California Green Building Construction Standards Code: The provisions of this code improve public health, safety and general welfare by enhancing the design and construction of buildings through use of building concepts having a reduced negative impact or positive environmental impact and encouraging sustainable construction practices. 2022 California Referenced Standards Code: The provisions of this code provide construction standards.
2021 International Property Maintenance Code: The provisions of this code shall apply to all existing residential and nonresidential structures and all existing premises and constitute minimum requirements and standards for premises, structures, equipment and facilities for light, ventilation, space, heating, sanitation, protection from the elements, life safety, safety from fire and other hazards, and for safe and sanitary maintenance; the responsibility of owners, operators and occupants; the occupancy of existing structures and premises, and for administration, enforcement and penalties.
2021 International Swimming Pool and Spa Code: The provisions of this code shall apply to the construction, alteration, movement, renovation, replacement, repair and maintenance of aquatic recreation facilities, pools, and spas. The pools and spas covered by this code are either permanent or temporary and shall be only those that are designed and manufactured to be connected to a circulation system and that are intended for swimming, bathing or wading. The purpose of this code is to establish minimum standards to provide a reasonable level of safety and protection of life, health, property and public welfare by regulating and controlling the design, construction, installation, quality of materials, location and maintenance or use of pools and spas.

On November 7, 2022, the City Council introduced the ordinance and set the public hearing on the proposed ordinance at the next regularly scheduled meeting of the City Council on November 21, 2022, a procedure required because the ordinance is adopting various adopted State codes by reference, with appropriate local amendments, per Government Code Sections 50022.1 through 50022.10.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
ANALYSIS:

Most of the proposed local amendments are carried over from previous years. In addition, section

12.105.050 amends the duration of building permits from every six months with passed inspections, to a fixed two-year period and minor building permits to a fixed six month period. The amendment also provides option to renew a permit and a grace period for expired permits. This change will streamline the expiration process and management, making it clear for our applicants when the permit will expire and what needs to be done when the permit expires. There are minor language changes to section

12.109.040 tying fees to the City’s master fee schedule.

Section 3110 of the 2022 California Building Code (SRMC Section 12.200.020) is amended to add safeguards to manual gates, and a new Chapter 12.350 is added to provide administrative and program regulations on gate safeguards. These changes are proposed following the death of a child who was killed by a rolling gate in San Rafael in December 2019. The Chief Building Official and the City Attorney have been working with the family and their consultants to develop a standard and amendments to protect our community and prevent this from happening again. The new Chapter 12.350 requires existing gates to be retrofitted by 2025 and property owners are to have their gates inspected once every five years to ensure the gates are maintained to prevent injuries or deaths. It is anticipated the Chief Building Official and the City Attorney will have a short presentation scheduled for the meeting of the City Council on November 21, 2022.

The proposed ordinance recommends the City adopt the California Green Building Construction Standards as proposed by the State. Further review of the proposed Marin County Reach Codes is needed before staff can bring a recommendation to the City Council. Other amendments for energy or green building standards will be brought to the City Council under a separate ordinance. This direction is consistent with the action taken by the Council at the last code adoption hearings in 2013, 2017 and 2019. Staff may bring a recommendation to adopt additional Reach Codes to the City Council some time in 2023 for consideration.

FISCAL IMPACT:

There is no fiscal impact associated with this action.

ENVIRONMENTAL REVIEW:

It has been determined that the proposed ordinance amendments are covered by the ‘general rule’ that the California Environmental Quality Act (CEQA) applies only to projects which have the potential to cause a significant, physical environmental impact. Pursuant to CEQA Section 15061(b)(3), the ordinance amendments are not subject to environmental review.

RECOMMENDED ACTION:

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
ATTACHMENT:

1. Ordinance
1 ORDINANCE NO.

AN ORDINANCE OF THE SAN RAFAEL CITY COUNCIL AMENDING TITLE 12 (BUILDING

REGULATIONS) OF THE MUNICIPAL CODE OF THE CITY OF SAN RAFAEL, TO ADOPT BY REFERENCE THE 2022 EDITION OF THE CALIFORNIA BUILDING CODE, THE CALIFORNIA

RESIDENTIAL CODE, THE CALIFORNIA MECHANICAL CODE, THE CALIFORNIA

PLUMBING CODE, THE CALIFORNIA ELECTRICAL CODE, THE CALIFORNIA EXISTING

BUILDING CODE, THE CALIFORNIA GREEN BUILDING CONSTRUCTION STANDARDS

CODE, THE CALIFORNIA HISTORICAL BUILDING CODE, THE CALIFORNIA ENERGY

CODE, AND THE CALIFORNIA REFERENCED STANDARDS CODE, WITH APPENDICES AND AMENDMENTS HEREIN; TO ADOPT BY REFERENCE THE 2021 EDITION OF THE

INTERNATIONAL PROPERTY MAINTENANCE CODE AND THE INTERNATIONAL SWIMMING POOL AND SPA CODE, WITH AMENDMENTS HEREIN; ADOPTING ADMINISTRATIVE AND PROGRAM PROVISIONS FOR THE CODES; ADOPTING NEW CHAPTER 12.350 WITH ADMINISTRATIVE AND PROGRAM REGULATIONS ON GATE SAFEGUARDS; AND ADOPTING FINDINGS OF FACT SUPPORTING THE AMENDMENTS TO THE CODES.

THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:

DIVISION 1. AMENDMENTS TO TITLE 12 OF THE MUNICIPAL CODE.

Section 1. Adoption of and Amendments to Construction Codes.

Section 12.100.010 of the Municipal Code of the City of San Rafael is hereby replaced in its entirety and amended to read as follows:

12.100.010 Adopted codes. The following recognized codes are hereby adopted by City of San Rafael together with the supplements, listed changes, additions and deletions as noted:

1. 2022 Edition, California Building Code (“CBC”), chapters 2 through 28, 30, 31, 32, 33, 35 and Appendices C, H, I, N and O.

2. 2022 Edition, California Electrical Code (“CEC”).

3. 2022 Edition, California Energy Code (“CEgC”).

4. 2022 Edition, California Existing Building Code (“CEBC”), chapters 2 through 16 and Appendices.

5. 2022 Edition, California Green Building Construction Standards Code (“CalGreen”), chapters 1 through 8 and Appendices A4 and A5.

6. 2022 Edition, California Historical Building Code (“CHBC”)

7. 2022 Edition, California Mechanical Code (“CMC”) chapters 2 through 17.

8. 2022 Edition, California Plumbing Code (“CPC”), chapters 2 through 17 and Appendices A, C, D, and I.

9. 2022 Edition, California Referenced Standards Code.

10. 2022 Edition, California Residential Code (“CRC”), chapters 2 through 10, chapter 44, and Appendices H, J, K, O, Q, R, S, T, and X.

11. 2021 Edition, International Property Maintenance Code (“IPMC”) chapters 1 through 8 and Appendix A.

12. 2021 Edition, International Swimming Pool and Spa Code (“ISPSC”), chapters 2 through 11.

Section 12.105.050 of the Municipal Code of the City of San Rafael is hereby amended to read as follows. Deletions are in strikethrough, and additions are in underline:
2 12.105.050 - Expiration. All building permits for the construction of buildings issued by the building official under the provisions of this code and the SRMC shall expire and become invalid one hundred eighty (180) days24 months after the date of issuance. The building official is authorized to grant, in writing, one (1) or more extensions of time, for periods not more than one hundred eighty (180) days24 months each. The extension shall be requested in writing and justifiable cause demonstrated. All other permits including permits issued for grading, fences, equipment replacements, and utilities, shall expire and become invalid one hundred eighty (180) days after the date of issuance.

All work authorized by a permit that has expired must stop and may only continue upon application for and approval of either a renewal of the expired permit or a new permit. Renewal of a permit is prohibited if the work authorized by a permit is not commenced and inspected within the permit period after issuance or if any permit is not renewed within the renewal grace period after expiration.

Exception: The building official may allow an invalid permit to be renewed only upon a determination by the building official that unforeseen and extraordinary circumstances are established by the applicant and the other provisions of this Section 12.105.5050 are satisfied.

12.105.050.1 New permits. Any new permit issued for the same purpose will require a new application and payment of all permit fees as required by this code existing at the time of application for new permit. New permits shall be governed by this code and any other applicable policy, regulation or law, local, state or federal, existing at the time of application for new permit.

12.105.050.2 Renewals. Renewals of an expired permit must be applied for within the renewal grace period from the permit expiration date and all additional fees paid. A renewal may be granted in writing by the building official only if the building official is satisfied that justifiable cause exists for a renewal or a site inspection by the building official establishes that all work is within the scope and is authorized by the and the work is not complete. Renewals shall extend the time of the permit from the date of expiration of the original permit or the last renewal. The renewals shall have the same duration as the original permit.

Exceptions: If the building official is satisfied with proof from the applicant of his active military service that prevented timely completion of the authorized work, the building official may grant a one-time extension for a reasonable period of time not to exceed two (2) years at no cost to the applicant. If the authorized work is not completed within this extension of time, a renewal of the original permit, if possible hereunder, or a new permit will be required pursuant to the provisions of this code.

If at the time of expiration of the permit or its renewal the authorized work is in the final inspection stage as defined in Chapter 12.109, the building official may grant a one (1) time ninety 90-day extension at no cost. If work under this extension is not completed within the ninety (90) days, a renewal of the original permit, if possible hereunder, or a new permit will be required pursuant to the provisions of this code.

12.105.050.3 Renewal limit. Permits may be renewed three (3) times. After the expiration of the third renewal, the applicant shall apply for a new permit.

12.105.050.4 Renewal Grace Period. Building permits shall have a grace period of not more than twelve (12) months from the expiration date of the permit. All other permits including grading, fences, equipment replacements, and utilities, shall have a grace period of not more than three (3) months from the expiration date of the permit.

Temporary permits for structures and uses shall not have a grace period and any extension to the permit shall comply with Chapter 12.107.

Section 12.109.040 of the Municipal Code of the City of San Rafael is hereby amended to read 3 as follows. Deletions are in strikethrough, and additions are in underline:

12.109.040 Plan review fees. When submittal documents are required by this code a plan review fee shall be paid at the time of submittal. The review fee shall be a percentage of the building permit fees in accordance with the Master Fee Schedule Resolution as adopted by the San Rafael City Council.

Section 12.109.050 of the Municipal Code of the City of San Rafael is hereby amended to read as follows. Deletions are in strikethrough, and additions are in underline:

12.109.050. Investigative Investigation fee. An investigation fee shall be collected in advance, whether or not a permit is then or subsequently issued, when any person who commences any work on a site, building, structure, electrical, gas, mechanical or plumbing system before obtaining the necessary permits further set forth Section 114 hereof. The investigation fee is further described in Chapter 12.114 hereof.

Chapters 12.200, 12.210, 12.220, 12.230, 12.235, 12.240, 12.245, 12.250, 12.255, 12.260, and

12.265 of the Municipal Code of the City of San Rafael are hereby replaced in their entirety and amended to read as follows:

CHAPTER 12.200 - CALIFORNIA BUILDING CODE AMENDMENTS

12.200.010 General. For purpose of this Chapter:

Deleted language from the base code has been stricken through.

Added language to the base code has been underlined.

12.200.020 Amendments. The 2022 California Building Code is amended or modified as follows:

Amend Section 202 to read as follows:

The definition of “Kitchen or Kitchenette” is deleted and replaced in its entirety to read as follows:

KITCHEN. An area in which the preparation of food for eating occurs (that has provisions for cooking or heating of food; washing and storing of dishware and utensils; and refrigeration and storing of food).

The definition of “Substantial Remodel” is added to read as follows:

SUBSTANTIAL REMODEL. Substantial remodel shall mean the alteration of any structure which combined with any additions to the structure, performed within any three (3) year period, affects a floor area which exceeds fifty percent (50%) of the existing floor area of the structure. When any changes are made in the building, such as walls, columns, beams or girders, floor or ceiling joists and coverings, roof rafters, roof diaphragms, foundations, piles or retaining walls or similar components, the floor area of all rooms affected by such changes shall be included in computing floor areas for purposes of applying this definition. This definition does not apply to the replacement and upgrading of residential roof coverings or exterior wall finishes.

Amend Section 903.2 to read as follows:
903.2 Where Required. Approved automatic fire sprinkler systems in new buildings and structures shall be provided in the locations described in Sections 903.2.1 through 903.2.12 and Sections 903.2.14 through 903.2.21 and in all of the following:
4 1. Newly constructed buildings or facilities, except detached Group U occupancies not more than one thousand (1,000) square feet in floor area and provided with exterior wall and opening protection as per Table 602 of the California Building Code.

2. Newly created, attached, second dwelling units which meet the definition of a substantial remodel.

3. All other existing buildings, fire sprinkler systems may be required by the fire chief in accordance with the following:

3.1. All buildings where improvements occur during any three (3) year period which cumulatively meet the definition of a substantial remodel.

3.2. All buildings, except R-3 occupancies, in excess of three thousand (3,000) square feet which have more than ten percent (10%) floor area added within any three (3) year period.

Exceptions may be granted by the fire chief when alternate means of protection are installed as approved by the fire code official.

3.3. A change in the use of a building that results in a higher fire or life safety hazard when the square footage of the area changing use is more than 50% of the square footage of the existing building.

3.4. Where fire sprinklers are required by provisions of this code, they shall be extended throughout the building.

4. All public storage facilities. Exceptions may be granted by the fire chief when alternate means of protection are installed as approved by the fire code official

5. All tunnels used for the transportation of people or any type of vehicle.

The requirements for fire sprinkler systems in this code section are not meant to disallow the provisions for area increase, height increase, or fire-resistive-rated substitution if otherwise allowed by this code.

Exception [Unchanged.]
Sections 903.2.1 through 903.2.17. [Unchanged.]
Amend Section 903.2.18 by deleting the exception.

Section 903.2.19 through 903.2.21. [Unchanged.]
Amend Section 909.2 by adding the following sentence at the end of the paragraph:

Replacement of an existing smoke alarm which is hardwired, and/or interconnected shall be made with an alarm of the same functionality.

Amend Section 1015.2 by adding the following concluding sentence:

Guards are also required at waterfront bulkheads, fixed piers and gangways.

Add Sections 1015.8.2 and 1015.8.3 to read as follows:
1015.8.2 Existing Hotels. The provisions of sections 1015.8 shall apply retroactively to all existing hotels.
1015.8.3 Clear area adjacent to hotel window opening. There shall be no furniture, fixed or 5 moveable, placed within thirty-six inches (36") of any openable portion of a window. Hotels shall also provide notice to prospective guests of this requirement.

Amend Section 1505.1 by deleting the last sentence and the referenced Table 1505.1.

Exception [Unchanged]
Section 1505.1.1 [Unchanged]
Amend Section 1505.1.2 to read as follows:
1505.1.2 Roof coverings within all other areas. The entire roof covering of every existing structure, where more than 50% of the total roof area is replaced within any one-year period, the entire roof covering of every new structure, and any roof covering applied in the alteration, repair or replacement of the roof of every existing structure, shall be a fire-retardant roof covering that is at least Class C A.

All roof coverings that are not at least Class A shall be a fire-retardant roof covering that is at least Class A by May 31, 2027.

Amend Section 1505.1.3 to read as follows:
1505.1.3 Roofing requirements in a Wildland-Urban Interface Fire Area. Roofing requirements for structures located in a Wildland-Urban Interface Fire Area shall be a fire-retardant roof covering that is least Class A and shall also comply with Section 705A.

Add Section 1807.4 to read as follows:
1807.4 Wooden retaining walls. Wooden retaining walls may not be used to support any building surcharge or vehicular way. In addition, wooden retaining walls shall not be employed to retain soils above or below a building where failure of the wall may subject the building to damage.

Amend Section 3110 to read as follows:

Section 3110 Automatic Vehicular Gates
3110.1 General. Automatic vehicular gates shall comply with the requirements of Sections 3110.2 and 3110.3 and other applicable sections of this code. All other gates shall comply with Sections 3110.4 and other applicable sections of this code.
3110.2 Vehicular Gates Intended for Automation. Vehicular gates intended for automation shall be designed, constructed and installed to comply with the requirements of ASTM F2200. 3110.3 Vehicular Gate Openers. Vehicular gate openers, where provided, shall be listed in accordance with UL 325.
3110.4 All Other Gates. Any gate more than 48 inches (1219 mm) in width or more than 84 inches (2134 mm) in height shall meet the requirements of ASTM F1184, shall be installed per the manufacturer’s recommendations, and shall be designed, constructed, and installed to meet all of the following:

1. Gate shall not fall over more than 45 degrees from a vertical plane when the gate is detached from supporting hardware.

2. Gate shall be balanced and not move under the gate’s own weight or by gravity.

3. Rolling wheels shall be covered.

4. Gate shall have positive stops.

Amend Section 3202.2.3 to read as follows:
6 3202.2.3 Awnings. The vertical clearance from the public right-of-way to the lowest part of any awning, including valances, shall be not less than 7 feet (2134 mm) 8 feet (2439 mm).

CHAPTER 12.210 - CALIFORNIA ELECTRICAL CODE AMENDMENTS

12.210.010 No amendment. The 2022 California Electrical Code is not amended or modified.

CHAPTER 12.220 - CALIFORNIA ENERGY CODE AMENDMENTS

12.220.010 No amendment. The 2022 California Energy Code is not amended or modified.

CHAPTER 12.230 - CALIFORNIA EXISTING BUILDING CODE AMENDMENTS

12.230.010 General. For purpose of this Chapter:

Deleted language from the base code has been stricken through.

Added language to the base code has been underlined.

12.230.020 Amendments. The 2022 California Existing Building Code is amended or modified as follows:

Add Sections 505.2.1 and 505.2.2 to read as follows:
505.2.1 Existing Hotels. The provisions of section 406.2 shall apply retroactively to all existing hotels.
505.2.2 Clear area adjacent to hotel window opening. There shall be no furniture, fixed or moveable, placed within thirty-six inches (36”) of any openable portion of a window. Hotels shall also provide notice to prospective guests of this requirement.

CHAPTER 12.235 - CALIFORNIA GREEN BUILDING CONSTRUCTION STANDARDS CODE

AMENDMENTS

12.235.010 No amendment. The 2022 California Green Building Construction Standards Code is not amended or modified.

CHAPTER 12.240 - CALIFORNIA HISTORICAL BUILDING CODE AMENDMENTS

12.240.010 No amendment. The 2022 California Historical Building Code is not amended or modified.

CHAPTER 12.245 - CALIFORNIA MECHANICAL CODE AMENDMENTS

12.245.010 No amendment. The 2022 California Mechanical Code is not amended or modified.

CHAPTER 12.250 - CALIFORNIA PLUMBING CODE AMENDMENTS

12.250.010 No amendment. The 2022 California Plumbing Code is not amended or modified. 7 CHAPTER 12.255 - CALIFORNIA RESIDENTIAL CODE AMENDMENTS

12.255.010 General. For purpose of this Chapter:

Deleted language from the base code has been stricken through.

Added language to the base code has been underlined.

12.255.020 Amendments. The 2022 California Residential Code is amended or modified as follows:

Amend Section R202 to read as follows:

The definition of “Kitchen” is deleted and replaced in its entirety to read as follows:

The definition of “Substantial Remodel” is added to read as follows:

Delete exception to Section R313.1 and amend Section R313.1 to read as follows:

R313.1 Townhouse automatic fire sprinkler systems. An automatic sprinkler system shall be installed in all newly constructed townhouses and in existing townhouses where alterations and/or additions to the existing structure, performed over any 3-year period, qualify as a "Substantial Remodel" as defined in this code. Any addition to a building with an existing fire sprinkler system shall have that system extended to the new portions of the building irrespective of the size of the addition.

R313.1.1 [Unchanged]
Amend Section R313.2 to read as follows:

R313.2 One-and two-family dwellings automatic fire systems. An automatic sprinkler system shall be installed in all newly constructed one- and two-family dwellings and in existing one- and twofamily dwellings where alterations and/or additions to the existing structure, performed over any 3- year period, qualify as a "Substantial Remodel" as defined in this code. Any addition to a building with an existing fire sprinkler system shall have that system extended to the new portions of the building irrespective of the size of the addition.

R313.2.1. [Unchanged]
Amend Section R313.3.1.2 by deleting exception #4.

Amend Section R314.7.2 by adding the following:
8 Smoke alarms shall be tested and maintained in accordance with the manufacturer's instructions.

Smoke alarms that no longer function shall be replaced. Replacement of an existing smoke alarm which is hardwired, and/or interconnected shall be made with an alarm of the same functionality.

Amend Section R902.1.2 to read as follows:

R902.1.2 Roof coverings in all other areas. The entire roof covering of every existing structure, where more than 50% of the total roof area is replaced within any one-year period, the entire roof covering of every new structure, and any roof covering applied in the alteration, repair or replacement of the roof of every existing structure, shall be a fire-retardant roof covering that is at least Class C A and shall also comply with Section R337.5.

All roof coverings that are not at least Class A shall be a fire-retardant roof covering that is at least Class A by May 31, 2027.

Amend Section R902.1.3 to read as follows:

R902.1.3 Roofing requirements in a Wildland-Urban Interface Fire Area. Roofing requirements for structures located in a Wildland-Urban Interface Fire Area shall be a fire-retardant roof covering that is at least Class A and shall also comply with Section R337.5.

CHAPTER 12.260 – INTERNATIONAL PROPERTY MAINTENANCE CODE AMENDMENTS

12.260.010 General. For purpose of this Chapter only:

Deleted language from the base code has been stricken through.

Added language to the base code has been underlined.

12.260.020 Amendments. The 2021 International Property Maintenance Code is amended or modified as follows:

Delete Sections 101.1, 103, 104, 106, 107, and 108.

Amend Section 111.4 to read as follows:
111.4 Notice. Whenever the code official determines that there has been a violation of this code or has grounds to believe that a violation has occurred, notice shall be given in the manner prescribed in Section 111.4.1 and 111.4.2 1.08.060 of the San Rafael Municipal Code to the owner or the owner’s authorized agent, for the violation as specified in this code. Notices for condemnation procedures shall comply with this section.

Delete Section 111.4.1 and 111.4.2.

Amend Sections 112.2, 112.3 and 112.4 to read as follows:
112.2 Temporary safeguards. Notwithstanding other provisions of this code, whenever, in the opinion of the code official, there is imminent danger due to an unsafe condition, the code official shall may order the necessary work to be done, including the boarding up of openings, to render such structure temporarily safe whether or not the legal procedure herein described has been instituted; and shall cause such other action to be taken as the code official deems necessary to meet such emergency.
112.3 Closing streets. When necessary for public safety, the code official shall may temporarily close structures and close or order the authority having jurisdiction to close, sidewalks, streets, public 9 ways and places adjacent to unsafe structures, and prohibit the same from being utilized. 112.4 Emergency repairs. For the purposes of this section, the code official shall may employ the necessary labor and materials to perform the required work as expeditiously as possible.

Amend Section 113.1 to change "two years" to "one year" in the first sentence.

Amend Section 113.2 and 130.3 to read as follows:
113.2 Notices and orders. Notices and orders shall comply with Section 111.4 Chapter 1.46 of San Rafael Municipal Code.
113.3 Failure to comply. If the owner of a premises or owner’s authorized agent fails to comply with a demolition order within the time prescribed, the code official shall may cause the structure to be demolished and removed, either through an available public agency or by contract or arrangement with private persons, and the cost of such demolition and removal shall be charged against the real estate upon which the structure is located and shall be a lien upon such real estate.

Amend Section 202 to read as follows:

The definition for “Code Official” is added as follows:

CODE OFFICIAL. Where used in this code, the term code official shall mean the code enforcement supervisor or the building official of the City of San Rafael, and their designees.

Amend Section 302.4 to read as follows:
302.4 Weeds. Premises and exterior property shall be maintained free from weeds or plant growth in excess of 6 inches tall. Noxious weeds shall be prohibited. Weeds shall be defined as all grasses, annual plants and vegetation, other than trees or shrubs, provided however, this term shall not include cultivated flowers and gardens. [Rest of section to remain unchanged.] Amend Section 304.14 to read as follows:
304.14 Insect Screens. During the period from [DATE] to [Date] every Every door, window and other outside opening required for ventilation of habitable rooms, food preparation areas, food service areas or any areas where products to be included or utilized in food for human consumption are processed, manufactured, packaged or stored shall be supplied with approved tightly fitting screens of not less than 16 mesh per inch (16 mesh per 25 mm), and every screen door used for insect control shall have a self-closing device in good working condition.

Exception [Unchanged.]
Amend Section 308.2.2 to add these words to the end of the sentence:
or securing the doors in an approved manner.

Amend Section 308.3.1 by adding the following:

Every person maintaining or using any solid waste can or receptacle shall keep the same clean and sanitary.

Amend Section 308.3.2 by adding the following:

Within all residential districts in the city, no person shall use, locate or maintain (store) any solid waste can, garbage container or other waste receptacle within the public right-of-way other than on the day 10 of removal service. Such waste receptacles shall be stored out of public view on non-service dates, whenever practical, or stored nearest the main structure.

Amend Section 602.3 to read as follows:
602.3 Heat supply. Every owner and operator of any building who rents, leases or lets one or more dwelling units or sleeping units on terms, either expressed or implied, to furnish heat to the occupants thereof shall supply heat during the period from [DATE] to [DATE] to maintain a temperature of not less than 68°F (20°C) in all habitable rooms, bathrooms and toilet rooms.

Exceptions [Unchanged.]
Amend Section 602.4 to read as follows:
602.4 Occupiable work spaces. Indoor occupiable work spaces shall be supplied with heat during the period from [DATE] to [DATE] to maintain a temperature of not less than 65°F (18°C) during the period the spaces are occupied.

Exceptions [Unchanged.]
CHAPTER 12.265 – INTERNATIONAL SWIMMING POOL AND SPA CODE AMENDMENTS

12.265.010 General. For purpose of this Chapter:

Deleted language from the base code has been stricken through.

Added language to the base code has been underlined.

12.265.020 Amendments. The 2021 International Swimming Pool and Spa Code is amended or modified as follows:

Amend Section 202 to add the following definition:

PRIVATE SWIMMING POOL means a swimming pool or pool located at and intended primarily for the use of the occupants of a single or two-family dwelling unit.

Amend Section 301 by adding the following:
301.2 Existing swimming pools. Any person who owns or is in possession of an existing private swimming pool that does not conform to the requirements of this section shall make the pool conform to the requirements of this section within ninety (90) days from its effective date.

Exceptions: The chief building official is hereby authorized to exempt any private swimming pool from the provisions of Health and Safety Code section 115922:

1. If it is secured from unauthorized entry by a natural or artificial barrier that provides the same or a greater degree of protection than would an enclosure.

An application for exception shall be filed in writing with the chief building official. The application shall contain a brief statement evidencing that the applicant is entitled to the exception and such other information as the chief building official may prescribe.

Delete Section 302.

Amend Section 305 by deleting all provisions and replacing them in their entirety with the following:
11 305.1 General. Pool barriers and enclosures shall meet the requirements of the California Swimming Pool Safety Act. The text in CBC 3109.2 contains the statutory language that is required to be duplicated and published in California Code of Regulations, Title 24. As such the section numbers reflect those within the Health and Safety Code.
305.2 Enclosure required for private swimming pools. Every person who owns or is in possession of any land on which there is situated a private swimming pool shall secure the pool from unauthorized entry by an enclosure that meets all of the requirements of Health and Safety Code section 115923.

The enclosure shall be specifically designed to prevent unauthorized entry from adjacent private and/or public property. This enclosure shall be in addition to the "safety features" required by Health and Safety Code section 115922.

Section 2. Addition of new Chapter 12.350 with administrative and program regulations on gate safeguards.

Chapter 12.350 of the Municipal Code of the City of San Rafael is hereby added to read as follows:

CHAPTER 12.350 – GATE SAFEGUARDS

12.350.010 - Purpose. The purpose of this chapter is to promote public safety and welfare by reducing the risk of death or injury that may result from gates detaching from supporting hardware or gates not being well maintained or inspected. The city finds it necessary to require gates to be inspected periodically by a professional and record keeping to ensure the basic life safety of the public.

12.350.020 - Definitions. For the purposes of this chapter, the following definitions shall apply:

1. "Property owner" means and includes, without limitation, the fee owner(s) of real property, their agents, or the person(s) in possession of the real property.

2. “Gate inspector” means any licensed fence installer, licensed automatic system installer, ICC certified building inspector, licensed architect, or licensed engineer.

3. “Written certification” means a document signed and/or stamped by a gate inspector attesting that the inspector performed an in-person inspection of the gate and based on that inspection has determined that the gate meets all of the standards set forth in this chapter, the gate has been maintained, and the gate is in good working order. In addition, the document shall include the following:
a. Inspection date.
b. Site address.
c. Name of the property owner.
d. Contact information of inspector.
e. Signature and/or stamp of the inspector.

12.350.030 - Scope. The provisions of this chapter shall apply to all vehicular gates and any gate more than 48 inches (1219 mm) in width or more than 84 inches (2134 mm) in height.

12.350.040 - General requirements. Gates shall meet the requirements of ASTM F1184 and Section 3110 of Chapter 12.200.020 of this code. Gates with operators or similar systems shall also meet the requirements of UL 325 and ASTM F2200.

12.350.050 - Maintenance and inspection. The Property owner shall keep all gates on the property well maintained and in good working order. The property owner shall have or cause to have all gates on the property inspected by a gate inspector and obtain a written certification at least once every five (5) years. The property owner shall keep a copy of the most recent written certification for each gate and make it available to the building official upon request. 12 12.350.060 - Time limits for compliance. The property owner shall bring all gates existing as of the effective date of this ordinance into compliance with the provisions of this chapter, and obtain a written certification for each gate, by July 1, 2025 and at least once every five (5) years thereafter.

The property owner of a new gate installed after the effective date of this ordinance shall immediately comply with the provisions of this chapter and obtain a written certification upon installation of the gate and at least once every five (5) years thereafter.

DIVISION 2. FINDINGS.

California Health and Safety Code Sections 17958.5, 17958.7, and 18941.5 require that findings be made in order to change or modify building standards found in the California Building Standards Code based on local climatic, geologic, or topographic conditions. Therefore, the San Rafael City Council hereby finds that these changes or modifications to the Building Code as adopted in Chapter 12.200 of the San Rafael Municipal Code; the Residential Code as adopted in Chapter 12.255; and the Existing Building Code as adopted in Chapter 12.230 are reasonably necessary because of the following local climatic, geological and topographical conditions:

III. Topographic conditions:
a) Much of San Rafael is located in hilly areas, and many of the residential areas are heavily landscaped, and many exist adjacent to hilly open space areas which are characterized by dry vegetation and have limited access. In addition, the steepness of grades located in the hills and canyons results in narrow and winding roads, and limited water supply, making timely access, rescue and firefighting activities by emergency providers difficult. b) The major arterial route between San Francisco and Marin and Sonoma county areas, Highway 101, bisects the City of San Rafael; should that highway become impassable, alternative routes via surface streets in San Rafael may cause heavy traffic congestion, limiting emergency access.
13 More specifically, the above modified building standards are listed below with the corresponding climatic, geological or topographical condition which necessitates the modification.

CBC Section Numbers Climatic, geological and topographical condition 903.2 Ia, IIa, IIIa, IIIb
909.2 Ia, IIa, IIIa
1015.2 Ib, IIa
1015.8 Ib, IIa
1505.1 Ia, IIIa
1807.4 Ib, IIa, IIb
3110 IIIa, IIIb
3202.2.3 IIa, IIb, IIIb
CEBC Section Numbers
505.2 IIa
CRC Section Numbers
R313.1 Ia, IIa, IIIa, IIIb
R313.2 Ia, IIa, IIIa, IIIb
R313.3 Ia, IIa, IIIa, IIIb
R314.7.2 Ia, IIa, IIIa
R902.1 Ia, IIIa
DIVISION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).

This Ordinance is exempt from the California Environmental Quality Act (CEQA), pursuant to 14 CCR Section 15061(b)(3), since it can be seen with certainty that there is no possibility that the adoption of this Ordinance may have a significant effect on the environment. (14 Cal. Code Regs. Section 15061(b)(3), ‘general rule’ provision).

DIVISION 4. SEVERABILITY.

If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion of this Ordinance. The City Council of the City of San Rafael hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases shall be declared invalid.

DIVISION 5. EFFECTIVE DATE OF ORDINANCE.

This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published and circulated in the City of San Rafael and shall be in full force and effect on January 1, 2023. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Council members voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California.

Within fifteen (15) days after adoption, the City Clerk shall also post in the office of the City Clerk, a certified copy of the full text of this Ordinance along with the names of those Councilmembers voting for and against the Ordinance.
14 THE FOREGOING ORDINANCE was first read and introduced at a regular meeting of the San Rafael City Council on the 7th day of November 2022, and was passed and adopted at a regular meeting of the San Rafael City Council on the 21st day of November 2022 by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
______________________________
Kate Colin, Mayor
Attest:
_____________________________
LINDSAY LARA, City Clerk
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 5.b
Meeting Date: November 21, 2022

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community Development
Prepared by: Don Jeppson, AIA CBO
Chief Building Official
Cory Bytof
Sustainability Program Manager
City Manager Approval: ______________
TOPIC: ORDINANCE AMENDING GREEN BUILDING CODES
SUBJECT: AN ORDINANCE OF THE SAN RAFAEL CITY COUNCIL AMENDING TITLE 12 (BUILDING REGULATIONS) OF THE MUNICIPAL CODE OF THE CITY OF SAN RAFAEL, BY AMENDING THE 2022 CALIFORNIA GREEN BUILDING STANDARDS CODE FOR ELECTRIC VEHICLE CHARGERS; AMENDING THE 2022 CALIFORNIA MECHANICAL CODE AND THE 2022 CALIFORNIA PLUMBING CODE TO LIMIT FUEL

GAS IN EXISTING SINGLE FAMILY HOMES AND DUPLEXES, AND PROHIBIT FUEL GAS IN NEW CONSTRUCTION WITH LIMITED EXCEPTIONS; AND ADOPTING FINDINGS OF FACT SUPPORTING THE AMENDMENTS TO THE CODES.

RECOMMENDATION:

Waive further reading of the Ordinance and refer to it by title only, introduce the Ordinance.

BACKGROUND:

The State of California Code of Regulations Title 24 construction codes are updated and published on a three-year cycle. The California Building Standards Commission publishes the triennial codes and State law mandates that these codes become effective throughout California 180 days after the publication date. For this latest cycle, the publication date was July 1, 2022, meaning that the current cycle of State construction codes becomes effective on January 1, 2023. Local jurisdictions are permitted to further amend the published codes based on and to suit local climatic, geological, or topographical conditions.

On November 7, 2022, the City Council introduced an item to adopt the new Title 24 State Building Code in its entirety with minor amendments. At this November 21, 2022 meeting, Council will hold a separate public meeting to adopt those construction codes.

Each three-year code cycle, the State updates the Green Building section of the Title 24 codes as well and provides potential Green Building “reach” codes to local jurisdictions that go above the State code.

These reach codes are encouraged to adopt more stringent local amendments to help drive greenhouse gas (GHG) reductions and inform future State code updates. Often these more stringent reach codes include stronger energy and water efficiency requirements, among other things. In the past the City has SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
adopted one of the two added “tiers” that generally set a percentage higher than State codes for a variety of building choices. This year the State is also providing guidance and support for all-electric construction, which tends to be more efficient and reduces GHG emissions while providing a healthier environment for inhabitants.

The proposed ordinance would amend Title 12 of our local Building Standards codes to include these reach codes. These amendments would prohibit natural gas in all new construction in San Rafael, effectively requiring them to be all-electric construction with some exemptions and exceptions. In addition, the code amendments would prohibit the extension of current gas infrastructure to single family homes and duplexes beyond what is already installed. Finally, the amendments would require minimum levels of electric vehicle charging infrastructure for all new construction as well.

State law authorizes local agencies to enact local amendments to the State Building Code that go beyond state standards if reasonably necessary because of local climatic, geological, or topographical conditions (Health and Safety Code sections 18941.5 and 17958.7). To date, over 60 California jurisdictions (including the cities of Fairfax, San Anselmo, Petaluma, Contra Costa County, Santa Clara County, Oakland, San Jose, and San Francisco) have adopted ordinances enacting local amendments to the State Building Code by requiring all-electric buildings for new construction.

Attachment 3 is a Policy Summary Chart, and below is a brief summary of each of these code areas to be amended:
2022 Green Building Standards Code for Electric Vehicle Chargers: The provisions of this code shall apply to the installation of electric vehicle charging infrastructure, including equipment, fixtures, and fittings, including receptacles, charging equipment, software, and load management. 2022 California Plumbing and Mechanical Codes: The provisions of this code shall apply to the installation of plumbing and mechanical systems, including equipment, appliances, fixtures, fittings, and appurtenances, including ventilating, heating, cooling, air conditioning and refrigeration systems, incinerators, and other energy related systems.

After introduction of this ordinance and public hearing, the ordinance would return to Council for final adoption at the next regularly scheduled meeting of December 5, 2022. After final adoption, the ordinance with these code amendments would be effective on January 4, 2023. Building permit applications filed with the City prior to January 4, 2023 would not be subject to these amendments.

ANALYSIS:

Attachment 2 contains a Policy Snapshot that discusses the merits, challenges, financial and equity considerations of the proposed ordinance and code amendments in greater detail.

The purpose of the changes to the Plumbing and Mechanical Codes is to reduce the greenhouse gas (GHG) emissions associated with the installation of gas appliances such as space heating and water heating and to require the use of more efficient heat-pump appliances. Generally, these appliances use between 20-25% of the energy of similar gas and older electric equipment. These code changes would apply to all new construction, including residential and non-residential buildings, including detached ADUs and JADUs. It is estimated that enacting these reach codes would contribute between 2.9 – 10.7% of GHG reductions toward our 2030 goal set out in our most recent Climate Change Action Plan.

The one provision in the code amendments for existing buildings relates to the expansion of gas infrastructure to single-family homes and duplexes. This amendment would preclude any expansion of SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
gas service lines or meter service to existing properties. This is to preclude dramatic increases in gas to current properties where the owner wants to add more natural gas-fired appliances such as saunas, hot tubs, and outdoor fireplaces or to replace current electric appliances with gas. It would not preclude anyone from adding those features or from replacing current gas appliances with new gas appliances, rather it would simply preclude allowing for new, expanded piping to increase the amount of gas going to the property. Owners could use electric appliances or swap out other gas-fired appliances to stay within their overall gas use.

The electric vehicle infrastructure amendments would require an amount greater than the new State code in some instances. For single-family homes and duplexes it would require new construction to have the capacity, wiring, and equipment so that it would be easy for a homeowner to install the charger of their choice. For multifamily dwellings it would require 100% of parking spaces attributed to tenants to be equipped with low-power level 2 charger infrastructure with receptacles for charging at lower speeds, providing the flexibility to more easily add the charging equipment in the future. For 15% of those spaces it would be required to have a level 2 charger installed. The locations and configurations would be up to the owner and builder. For non-residential new construction, the proposal is to match the State’s Tier 1 requirements, which require 35% of parking spaces to be EV Ready with low-level 2 infrastructure, 10% EV Capable (meaning only the conduit installed), and 10% installed fully with level 2 chargers. This matches the County of Marin and the codes being adopted in many other jurisdictions, modeled after an extensive effort conducted in the South and East Bay by Peninsula Clean Energy and East Bay Clean Energy that staff and the County participated in.

Some exemptions and exceptions would apply, mainly to account for the rare situations where installations of electric appliances incur significant cost or are not feasible due to specifics of a situation.

The burden of proof would be on the applicant to show they modeled different appliances and sought incentives and technical assistance from the numerous offerings through the State, utilities and son-tobe-available Federal Inflation Reduction Act.

The State provides cost-effectiveness studies for cities to use based on the specific climate zone or zones the city resides in. San Rafael is in Climate Zone 2 and electrification is generally shown to be costeffective for most building types. These studies helped develop the rationale for exemptions and exceptions. For example, one building type that does not show as cost-effective is restaurants, and significantly so. Therefore, this reach code proposal exempts restaurants. Also, certain industrial processes and commercial laundry facilities don’t currently have electric equipment that can accommodate their needs or can be extremely costly. The City rarely sees this type of new construction, but the proposed ordinance allows the Building Official to make exemptions where it is demonstrated that replacing with electric is technically infeasible or has a disproportionate cost to the project causing an insurmountable hardship.

Finally, in certain situations, to accommodate affordable housing, there may be instances where it is necessary for the developer to use natural gas appliances or risk cost increases that make it too burdensome to build. The incentives for multifamily affordable housing are significant though, and staff believes it will be rare for this sort of exception to be necessary.

One further commitment is to work regionally with our partners to develop a learning “hub” that helps builders, developers, and homeowners find and access the incentives and technical assistance available to them. Recently Peninsula Clean Energy and Silicon Valley Clean Energy launched such a hub in the South Bay. This is something builders felt strongly about during the public engagements convened over the past year. Should these proposed reach codes be adopted, staff is proposing to begin work on an analysis of options for existing building renovations and to convene stakeholders to develop a learning hub, which would ideally be a regional offering much like the one in the South Bay.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
COMMUNITY ENGAGEMENT:

The City participated on a Steering Committee for a County of Marin-led “model reach code” development process, which resulted in the current reach code proposal. From September 2021 to September 2022, the Steering Committee implemented a comprehensive community engagement strategy. The Committee engaged and garnered feedback from City, Town, and County staff; community-based organizations including environmental, affordable housing, senior/aging-in-place, and equity priority advocates; building community members including developers, architects, realtors, contractors and Marin Builders Association; utilities including MCE and PG&E; and Town and City commission, subcommittee, and City Council members.

The year was highlighted by formal engagements with key stakeholders including five monthly technical working meetings consisting of City and Town building officials and planners, one public community workshop, and three focus group workshops co-hosted by the Marin Builders Association. The County also administered a public survey with draft model reach code language in September. These engagements informed the reach code proposal.

FISCAL IMPACT:

There is no fiscal impact associated with this action.

ENVIRONMENTAL REVIEW:

The proposed ordinance has been determined to be exempt from the California Environmental Quality Act (CEQA), pursuant to 14 CCR Section 15061(b)(3), since it can be seen with certainty that the adoption of this Ordinance would not have potential for causing a significant effect on the environment. (14 Cal.

Code Regs. Section 15061(b)(3), ‘general rule’ provision). The Ordinance is also exempt from the requirements of CEQA pursuant to CEQA Guidelines sections 15307 and 15308 as an action by a regulatory agency taken to protect the environment and natural resources.

OPTIONS:

The City Council has the following options to consider on this matter:

1. Consider public comment/testimony and introduce the Ordinance for adoption as proposed

2. Consider public comment/testimony and introduce the Ordinance with amendments as directed by the Council

3. Do not introduce the ordinance and provide alternative direction to staff RECOMMENDED ACTION:

Waive further reading of the ordinance and refer to it by title only, introduce the Ordinance.

ATTACHMENTS:

1. Ordinance

2. Policy Snapshot

3. Policy Summary Chart

4. PG&E and MCE Support Letters
1 ORDINANCE NO.

AN ORDINANCE OF THE SAN RAFAEL CITY COUNCIL AMENDING TITLE 12 (BUILDING

REGULATIONS) OF THE MUNICIPAL CODE OF THE CITY OF SAN RAFAEL, BY AMENDING THE 2022 CALIFORNIA GREEN BUILDING STANDARDS CODE FOR ELECTRIC VEHICLE CHARGERS; AMENDING THE 2022 CALIFORNIA MECHANICAL CODE AND THE 2022

CALIFORNIA PLUMBING CODE TO LIMIT FUEL GAS IN EXISTING SINGLE FAMILY HOMES

AND DUPLEXES, AND PROHIBIT FUEL GAS IN NEW CONSTRUCTION WITH LIMITED EXCEPTIONS; AND ADOPTING FINDINGS OF FACT SUPPORTING THE AMENDMENTS TO THE CODES.

THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:

DIVISION 1. AMENDMENTS TO MUNICIPAL CODE.

Chapter 12.235 of the Municipal Code of the City of San Rafael is hereby amended to read as follows:

CHAPTER 12.235 - CALIFORNIA GREEN BUILDING CONSTRUCTION STANDARDS CODE

AMENDMENTS

12.235.010 General. For purpose of this Chapter:

Deleted language from the base code has been stricken through.

Replacement language to the base code has been underlined.

12.235.020 Amendments. The 2022 California Green Building Standards Code is amended or modified as follows:

Delete Section 4.106.4.1 and replace in its entirety to read as follows:

4.106.4.1 New One- And Two-Family Dwellings and Town-Houses. For each dwelling unit, install a 40 ampere 208/240 volt dedicated EV branch circuit, capable of supporting Level 2 EVSE, terminating with a receptacle or an EV charger in close proximity to the vehicle charging area.

Delete Subsection 4.106.4.1.1 in its entirety.

Subsection 4.106.4.2 [unchanged].

Delete Subsection 4.106.4.2.1 and replace in its entirety to read as follows:

4.106.4.2.1 New Hotels and Motels. The number of dwelling units, sleeping units or guest rooms shall be based on all buildings on a project site subject to this section.

1. EV Capable. Ten (10) percent of total number of parking spaces on the building site, provided for all types of parking facilities, shall be electric vehicle charging spaces (EV spaces) capable of supporting future Level 2 EVSE. Electrical load calculations shall demonstrate that the electrical panel service capacity and electrical system, including any on-site distribution transformer(s), have sufficient capacity to simultaneously charge all EVs at all required EV spaces at a minimum of 40 amperes.

The service or subpanel circuit directory shall identify the overcurrent protective device space(s) reserved for future EV charging purposes as “EV CAPABLE” in accordance with the California Electrical Code.
2 Exceptions: When EV chargers (Level 2 EVSE) or EV Ready are installed in a number greater than the minimum required, the EV capable spaces may be reduced by the same number.

2. EV Ready. Thirty-five (35) percent of total number of parking spaces shall be equipped with low power Level 2 EV charging receptacles. Conduit size and junction boxes for EV ready must be sized for Level 2 EVSE as in accordance with the California Electrical Code.

Exceptions:

1. Areas of parking facilities served by parking lifts.

2. When EV chargers (Level 2 EVSE) are installed in a number greater than the required, the EV ready spaces may be reduced by the same number.

3. EV Chargers. Ten (10) percent of total number of parking spaces shall be equipped with Level 2 EVSE.

When low power Level 2 EV charging receptacles or Level 2 EVSE are installed beyond the minimum required, an automatic load management system (ALMS) may be used to reduce the maximum required electrical capacity to each space served by the ALMS. The electrical system and any on-site distribution transformers shall have sufficient capacity to deliver at least 3.3 kW simultaneously to each EV charging station (EVCS) served by the ALMS. The branch circuit shall have a minimum capacity of 40 amperes, and installed EVSE shall have a capacity of not less than 30 amperes. ALMS shall not be used to reduce the minimum required electrical capacity to the required EV capable spaces.

Delete Subsection 4.106.4.2.2 and replace in its entirety to read as follows (subsection 4.106.4.2.2.1 remains unchanged):

4.106.4.2.2 New Multifamily Dwellings and New Residential Parking Facilities. The number of dwelling units, sleeping units or guest rooms shall be based on all buildings on a project site subject to this section.

1. EV Ready. Eighty-five (85) percent of total number of parking spaces shall be equipped with low power Level 2 EV charging receptacles. For multifamily parking facilities, no more than one receptacle is required per dwelling unit when more than one parking space is provided for use by a single dwelling unit. Conduit size and junction boxes for EV ready must be sized for Level 2 EVSE as in accordance with the California Electrical Code.

Exceptions:

1. Areas of parking facilities served by parking lifts.

2. When EV chargers (Level 2 EVSE) are installed in a number greater than the required, the EV ready spaces may be reduced by the same number.

2. EV Chargers. Fifteen (15) percent of total number of parking spaces shall be equipped with Level 2 EVSE. Where common use parking is provided, at least one EV charger shall be located in the common use parking area and shall be available for use by all residents or guests.

When low power Level 2 EV charging receptacles or Level 2 EVSE are installed beyond the minimum required, an automatic load management system (ALMS) may be used to reduce the maximum required electrical capacity to each space served by the ALMS. The electrical system and any on-site distribution transformers shall have sufficient capacity to deliver at least 3.3 kW simultaneously to each EV charging station 3 (EVCS) served by the ALMS. The branch circuit shall have a minimum capacity of 40 amperes, and installed EVSE shall have a capacity of not less than 30 amperes. ALMS shall not be used to reduce the minimum required electrical capacity to the required EV capable spaces.

Subsection 4.106.4.2.2.1 [unchanged].

CHAPTER 12.245 - CALIFORNIA MECHANICAL CODE AMENDMENTS

12.245.010 General. For purpose of this Chapter:

Deleted language from the base code has been stricken through.

Added language to the base code has been underlined.

12.245.020 Amendments. The 2022 California Mechanical Code is amended or modified as follows:

Amend Section 1301.1 to read as follows:
1301.1 Applicability. The regulations of this chapter shall govern the installation of fuel gas piping in or in connection with a building, structure or within the property lines of premises up to 5 poundsforce per square inch (psi) (34 kPa) for natural gas and 10 psi (69 kPa) for undiluted propane, other than service pipe. Fuel oil piping systems shall be installed in accordance with NFPA 31.

Exceptions:

1. Fuel gas and oil piping is prohibited in new construction unless for use in emergency electrical generation when required by the code, commercial kitchen for preparing food, commercial laundry for laundry, or in an approved industrial process.

2. Existing fuel gas and oil piping in one- and two-family dwellings may not be expanded unless overall gas use is reduced, unchanged, or is for additional attached housing.

3. Existing gas meter service size in one- and two-family dwellings may not be increased unless the increase is required for additional attached housing.

At the discretion of the building official, the building official may approve fuel gas in new construction or expand fuel gas in existing construction when replacing with electric has been demonstrated to be technically infeasible or has a disproportionate cost to the project causing an insurmountable hardship.

CHAPTER 12.250 - CALIFORNIA PLUMBING CODE AMENDMENTS

12.250.010 General. For purpose of this Chapter:

Deleted language from the base code has been stricken through.

Added language to the base code has been underlined.

12.250.020 Amendments. The 2022 California Plumbing Code is amended or modified as follows:

Amend Section 1201.1 to read as follows:
1201.1 Applicability. The regulations of this chapter shall govern the installation of fuel gas piping in or in connection with a building, structure or within the property lines of premises up to 5 poundsforce per square inch (psi) (34 kPa) for natural gas and 10 psi (69 kPa) for undiluted propane, other than service pipe. Fuel oil piping systems shall be installed in accordance with NFPA 31. 4 Exceptions:

1. Fuel gas and oil piping is prohibited in new construction unless for use in emergency electrical generation, commercial kitchen for preparing food, commercial laundry for laundry, or in an approved industrial process.

2. Existing fuel gas and oil piping in one- and two-family dwellings may not be expanded unless overall gas use is reduced, unchanged, or is for additional attached housing.

3. Existing gas meter service size in one- and two-family dwellings may not be increased unless the increase is required for additional attached housing.

DIVISION 2 FINDINGS.

The San Rafael City Council finds that the scientific evidence has established that natural gas combustion as well as leakage occurring during natural gas procurement, transportation, storage, and distribution produce significant greenhouse gas emissions that contribute to global warming, climate change and sea level rise.

California Health and Safety Code Sections 17958.5, 17958.7, and 18941.5 require that findings be made in order to change or modify building standards found in the California Building Standards Code based on local climatic, geologic, or topographic conditions. Therefore, the San Rafael City Council hereby finds that these changes or modifications to the California Green Building Standards Code, the California Plumbing Code and the California Mechanical Code as adopted in Chapter 12.200 of the San Rafael Municipal Code are reasonably necessary because of the following local climatic, geological and topographical conditions:

I. Climatic conditions:
a) Most of the annual rainfall in San Rafael occurs during the winter, it receives no measurable precipitation between May and October. During this time, temperatures average between 70 and 90 degrees. These conditions eliminate most of the moisture in the natural vegetation and heavily wooded hillsides. The area also suffers periodic droughts that can extend the dry periods to other months of the year. These conditions can be further exacerbated by occasional off-shore hot, dry, Santa-Ana winds; all of which contribute to an elevated fire hazard.
b) Most of the annual rainfall in San Rafael occurs during the winter, and some portions of San Rafael are subject to tidal influences, there are times that flooding conditions occur in low-lying areas
II. Geologic conditions:
a) San Rafael lies near several earthquake faults, including the very active San Andreas Fault, there are significant potential hazards such as road closures, fires, collapsed buildings, and isolation of residents requiring assistance. b) Many areas of the city, including some highly developed industrial and commercial areas, are located on bay alluvial soils which are subject to liquefaction in the event of an earthquake.
5 III. Topographic conditions:
a) Much of San Rafael is located in hilly areas, and many of the residential areas are heavily landscaped, and many exist adjacent to hilly open space areas which are characterized by dry vegetation and have limited access. In addition, the steepness of grades located in the hills and canyons results in narrow and winding roads, and limited water supply, making timely access, rescue and firefighting activities by emergency providers difficult. b) The major arterial route between San Francisco and Marin and Sonoma county areas, Highway 101, bisects the City of San Rafael; should that highway become impassable, alternative routes via surface streets in San Rafael may cause heavy traffic congestion, limiting emergency access.

More specifically, the above modified building standards are listed below with the corresponding climatic, geological or topographical condition which necessitates the modification.

Cal Green Section Numbers Climatic, geological and topographical condition

4.106.4.1. Ia, Ib, IIa, IIIa, IIIb

4.106.4.2.1 Ia, Ib, IIa, IIIa, IIIb

4.106.4.2.2. Ia, Ib, IIa, IIIa, IIIb
CMC Section Numbers
1301.1 Ia, Ib, IIa, IIIa, IIIb
CPC Section Numbers
1201.1 Ia, Ib, IIa, IIIa, IIIb
DIVISION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) This Ordinance is exempt from the California Environmental Quality Act (CEQA), pursuant to 14 CCR Section 15061(b)(3), since it can be seen with certainty that the adoption of this Ordinance would not have potential for causing a significant effect on the environment. (14 Cal. Code Regs. Section 15061(b)(3), ‘general rule’ provision). The Ordinance is also exempt from the requirements of CEQA pursuant to CEQA Guidelines sections 15307 and 15308 as an action by a regulatory agency taken to protect the environment and natural resources.

DIVISION 4 SEVERABILITY.

DIVISION 5. EFFECTIVE DATE OF ORDINANCE.

This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published and circulated in the City of San Rafael and shall be in full force and effective thirty (30) days after its adoption. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Council members voting for or against 6 same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California.

THE FOREGOING ORDINANCE was first read and introduced at a regular meeting of the San Rafael City Council on the 21st day of November 2022, and was passed and adopted at a regular meeting of the San Rafael City Council on the 5th day of December 2022 by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
______________________________
Kate Colin, Mayor
Attest:
_____________________________
LINDSAY LARA, City Clerk
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Building Electrification Proposal for New Construction
Policy Snapshot
November 8, 2022
Reach Code Proposal
Every three years the Green Building codes are updated at the State level and local jurisdictions are allowed and encouraged to adopt more stringent “reach codes” to help drive future State code updates. Attached is the Policy Summary Chart. Staff are proposing to adopt reach codes for new construction this year along with one measure for existing buildings, and to otherwise address remodels of existing buildings in 2023. For new construction it is being proposed to disallow natural gas in new residential or commercial buildings. Exceptions or exemptions would be made in certain situations where it may be necessary for emergency power generation or cause extraordinary hardship due to infeasibility or costs. The requirements would apply to multifamily development and detached accessory dwelling units (ADUs) as well as single family homes. Restaurants would be exempt. Included in the reach codes would be an increase in electric vehicle charging infrastructure to ensure that multifamily buildings have the wiring and outlets necessary to install chargers with the least barriers and costs possible to meet future demand.

The one code change for existing buildings being proposed would prohibit any increase of existing gas lines and capacity unless for emergency backup power. This is because the Building Division is seeing installations of luxury appliances such as outdoor fireplaces and hot tubs that are dramatically increasing natural gas use in single family homes, requiring pipe and meter increases. Finally, the proposal is to continue the analysis into 2023 for other code changes for existing buildings and to put together an “implementation plan” with our partnering jurisdictions. The plan would include a regional resource hub of incentives and technical assistance as well as a proactive outreach strategy to support residents and contractors in electrification and energy efficiency work. There is a statewide web resource called The Switch Is On being updated with all incentives in one place and there is a new technical assistance program for contractors in the South Bay that is a good example to build from.

Rationale
In 2019 the City Council adopted the 2030 Climate Change Action Plan which set a goal to reduce greenhouse gas emissions 40% by 2030. 30% of San Rafael’s community greenhouse gas emissions are in the building sector; 6% from electricity consumption and 24% from the consumption of natural (methane) gas. Methane gas has significant greenhouse gas (GHG) emissions associated with its generation, transmission, and end-use. It also has health consequences, including increased asthma, illness, and death. Building electrification allows for reductions in emissions as the California electrical grid becomes greener and includes more renewable sources such as wind, solar, and biomass. This is even more so for buildings that include solar and battery storage on site and rely less on the grid for energy. Installing electric appliances and infrastructure is much cheaper during the new construction ~ ~ SAN RAFAEL

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phase rather than retrofitting later. Over the last decade, in-state renewable energy generation, such as solar, wind, biomass, and geothermal, increased from 29 percent in 2010 to 43 percent in 2020.

Natural gas used to produce electricity has dropped 9% over the past two decades. California is investing over $3 billion to boost grid reliability and facilitate more renewable energy over the next several years, and hundreds of millions more to increase long-duration storage systems to serve the grid. With the State moving to an all-electric future, requiring new construction to be all-electric removes the challenges and expense of retrofitting later when appliances get to end-of-life. Further, there are a plethora of incentives existing and impending in 2023 and 2024 that builders can access.

Pairing an all-electric mandate with the timing of these incentives telegraphs the transition to the building community and relieves the up-front cost burden, while ensuring polluting gas-fired amenities and appliances are not installed.

Climate Change Action Plan (CCAP) Measures addressed by this proposal

1. Green Building Reach Code (EE-C4)

2. Building and Appliance Electrification (RE-C3)

3. Energy Efficiency Programs (EE-C1)
The Green Building Reach Code represents the potential to contribute between 2.9 – 10.7% of the City’s total 2030 greenhouse gas (GHG) reduction goal. Combined, these three programs represent a potential to contribute up to 18,990 MTCO2e, comprising up to 20% of the City’s total 2030 GHG reduction goal.

Challenges and Opportunities
Rapid decarbonization will not always be easy to do in all cases. One of the main questions posed at the outset of this project was how to best meet our GHG reduction goals while also meeting our housing production and economic development goals, especially as it relates to cost. Exemptions and exceptions have been built into the proposal to accommodate those occasional cases where it would be infeasible or prohibitively costly to meet the code. In addition, some building and use-cases can be extremely difficult to electrify such as certain industrial processes, restaurants, and other operations that require large amounts of water heating. These have been exempted for now, with the option to scale back or remove exemptions as the industry matures and solutions become more readily available in these situations. However, these hard use-cases are very rarely built in San Rafael.

Another question posed had to do with resiliency: How does an all-electric building fare during a power outage, and can the electrical grid handle the increase in demand? Currently many gas appliances require electricity to operate, meaning in many cases space heating and hot water impacts will be felt by those in mixed-fuel homes as well. Exceptions for backup power generation were included for multifamily properties that might require it to have lighting and elevator function during power outages. However, local power distribution has been hardened and most of San Rafael is no longer at threat for a PG&E Public Safety Power Shutoff event. Common power outages are lasting shorter amounts of time. California is investing over $3 billion in grid reliability and backup power in the next several years to reduce these impacts even further. New State codes are requiring most new construction to have battery backup power and solar, adding resilience on-site. If demand for ~ ~ SAN RAFAEL

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electrification of buildings and vehicles outpaces utility upgrades and increases in clean energy production, the grid could face challenges in the future. However, utilities believe the grid will not be compromised with the investments the State and utilities are making to ensure reliability, especially since new building is a small percentage of the demand on the grid.

Economy and Social Equity
For single family homes and ADUs electrification will be relatively straightforward and, in many instances, will save owners money when building. Slight utility bill cost increases may occur at current energy prices though the California Public Utilities Commission projects the price of natural gas will increase at almost double the rate of electricity in the coming decade. Multifamily housing and certain commercial applications can often be harder and more expensive to build but show utility bill savings for tenants. However, builders can also save costs by not having to install gas lines and meters. The State and utilities are providing numerous incentives to help offset initial costs of build, and soon the Federal government will be providing additional incentives through the Inflation Reduction Act. Locally, the reach code proposal includes certain exceptions and exemptions to allow for those specific cases where the cost burden may be too great, especially in the case of affordable multifamily housing. The State also provides technical assistance to multifamily and affordable housing developers to achieve its electrification goals, including help in applying for the incentives.

With projected increases in extreme heat events, building electrification can provide residents with highly efficient air conditioning at about ¼ the energy use of typical air conditioners. This is because heat pump space heaters can reverse the flow of air and provide cool air as well as heat, offering tenants air conditioning options that were previously out of reach. Also, currently there is very little opportunity for apartment dwellers to charge electric vehicles (EV) at home. Having more EV charger availability in apartment complexes, public parking lots, and workplace settings will enable renters to acquire EVs and plug-in hybrids. There are currently several programs and incentives for multifamily and affordable housing developers to offset costs of chargers and electrical infrastructure with more in the works. New State legislation will remove long-standing subsidies for gas line installations for new buildings, and a new ruling will require that utilities cover the cost of additional electrical infrastructure for EV charging in multifamily housing and commercial properties.

Co-Benefits & Potential Unintended Consequences
Two potential unintended consequences of adopting a reach code are additional costs and confusion for contractors due to hard-to-understand code language and burdensome Building Division implementation. However, the City of San Rafael’s Building Division demonstrates collaboration and simplification and was consistently referenced as the easiest to work with in Marin during engagements with builders and the Marin Builders Association. Other potential unintended consequences may include the challenges of installing and using new technologies, added time and associated costs for permitting transformers for larger projects, and the ability to find contractors that can do the work. An added element to this proposal is the City’s commitment to work with our regional partners to compile and promote all the technical assistance and incentives available to owners and contractors for ease of implementation in the coming year. Electrify Marin and Bay Area ~ ~ SAN RAFAEL

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Regional Energy Network have been training contractors and providing incentives to build the capacity necessary to transition to an electric future and have seen a thousand-fold increase in qualified contractors since 2019. Supply chain issues and availability of materials is another concern for builders but is not specific to electrification materials and appliances.

Co-benefits include resident health and workforce development. Over 40 studies have documented the negative health effects of having gas (methane) in the home, including asthma, increased deaths and illness. Local workforce programs include MCE’s Workforce, Education and Training program in conjunction with Strategic Energy Innovations focused on building electrification and energy efficiency.

More workforce programs are being funded and developed across the region and the City will be exploring opportunities to enhance them for local residents through our upcoming Economic Inclusion in Climate Action project. The EV requirements in this proposal will provide EV chargers on-site for a small percentage of parking spaces, as well as the infrastructure to easily install more based on demand, providing renters with a much-needed resource to be able to own an electric vehicle.

Engagement
This proposal and analysis were guided by multiple meetings with our ad-hoc subcommittee comprised of Councilmembers Bushey and Llorens Gulati. In addition, staff sought input from the Mayor and other Councilmembers throughout the year. City staff participated in the countywide building decarbonization steering committee, which convened dozens of engagements with a wide array of stakeholders over the last 10 months. These engagements included builders, developers, appliance installers, other jurisdictions’ planning and building staff, nonprofit partners, and affordable housing entities. Engagements included focus groups, presentations to community groups, public meetings, individual meetings with key stakeholders, and a public survey. This proposal is based on the County’s Model Reach Codes and incorporates feedback received during these public engagements.

See pages 5 & 6 below for sources and references.
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Sources & References
Climate Change Action Plan Measures
• San Rafael Climate Action Plan Energy Efficiency Measures • San Rafael Climate Action Plan Renewable Energy Measures Reach Code Proposal
• Policy Summary Chart Draft
• Statewide Reach Codes Website
• Building Standards Codes and Green Building Website
• Equitable Building Decarbonization: Implementation Approaches • Marin County Model Reach Code Development
• South and East Bay Reach Code Initiative
• All-electric Reach Code Listing, California
• California Energy Commission Building Decarb and EV Resources • Switch is On Electrification Resources for Owners and Contractors Rationale
• California Energy Policy Report 2021 Data and Studies • 2021 Total System Generation Report
• PG&E Energy Mix 2021
• PG&E System Battery Storage Projects
• Electric Water Heating GHG Study
• Marin Climate GHG Inventories
• Health Impacts of Natural Gas Stanford Study
• Health Impacts of Natural Gas Meta Analysis
• Assessment of Impacts of Electrifying Residential Buildings in California • UCLA Report Residential Gas Appliances
Challenges and Opportunities
• BUILD Program for Technical Assistance and Incentives Multifamily • CPUC Utility Costs and Affordability Evaluation
• Building Decarbonization Practice Guide
• PG&E Public Safety Power Shutoff Map
• Article: California Electric Grid and EVs
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• Grid Impacts Study California EVs
• MCE Electric Load Planning
Economy and Social Equity
• Cost Effectiveness Studies
• Prioritizing California’s Affordable Housing in the Transition Towards Equitable Building Decarbonization
• Low-Rise Residential Cost-Effectiveness Study
• MCE Workforce Program
• County of Marin Model EV Reach Code Policy Brief
• Inflation Reduction Act Fact Sheet
• Inflation Reduction Act Incentives Calculator
• California Eliminates Natural Gas Subsidies
• EV Rule 29 Providing for EV charging infrastructure for multifamily and non-residential installations
Co-benefits & Potential Unintended Consequences
• Electrify Marin Rebate Program
• Bay Area Regional Energy Network Resources for Public, Government, and Contractors • Heat Pump Systems
• Heat Pumps and Heat Waves, Rocky Mountain Institute*
Engagement
• Model Reach Code Development Engagements
• Letter of Support from MCE
• Letter of Support from PG&E for Marin County Model Reach Code 1 NEW CONSTRUCTION
Reach Code Policy Summary DRAFT 11/8/22
All-Electric for All Residential and Nonresidential Buildings Proposed Policy Description Proposed Qualified/Covered Project Notes Key Policy Components
Require all-electric for newly
constructed buildings
As per “Newly Constructed
Building” and “All-electric Building”
definitions below
All building types (residential and commercial)
whole or partly in jurisdictional boundaries
Definition: Newly Constructed
Building
Building that has never before been used or
occupied for any purpose
Definition: All-electric Building or
Design definition
A building that uses a permanent supply of
electricity as the source of energy for all
space heating, water heating (including pools
and spas), cooking appliances, and clothes
drying appliances, and has no natural
gas or propane plumbing installed in the
building. An all-electric building also includes
solar thermal collectors.

Accessory Dwelling Units
(ADU)
New ADUs and Junior ADUs
(JADUs) built on existing property
is considered newly constructed
building
Detached only
Prohibits Conversion from
Electric to Gas
For applications submitted on or
after effective date of the chapter
goes into effect
Applicants are ineligible to apply for and the
building official may not grant permits that
would convert an all-electric building to a
mixed-fuel building
Electric Readiness/Future
Proofing if Gas Permitted as per
exceptions allowed
Electric capacity for future
electrification. Panel/Subpanel
installed to accommodate future
electrification of all appliances in
the building
All - State minimum standards already make
everything electric ready
Load determined by
installation of planned
heat pumps, induction
stoves, and/or EV
Infrastructure
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2 Exception/Exemptions
Hardship/Infeasibility
Exemption or Waiver
Burden of Proof is on project
applicant.

Building Official & Planning Staff
make the determination.

1. Compliance disproportionate to overall
project cost, OR

2. Lack of commercially available
technologies, OR

3. Physical conditions make installing
measures impractical
Would apply only to
Affordable Housing or
MF Housing.

Permits prior to effective date Development projects for which all building and related permits have been applied for or
issued and remain valid prior to January 1,
2023 exempted
Based on application
date
Emergency Back-up power and
industrial process
Emergency electrical generation only for
essential services, multifamily developments,
and/or an approved industrial process for
essential services buildings (ostensibly means
gas fuel can be used)
Portable propane
Appliances
For use outside of the building
envelope
Outdoor cooking, refrigeration, and outdoor
heating appliances
HVAC or water
heating appliances are
not exempt
Attached ADUs and JADUs
Creating a new unit of housing for
independent living
All attached ADUs
Food Service Establishments Commercial Kitchens and cooking equipment serving food on or off-site
Can be revoked or natural gas infrastructure
capped if use changes (e.g. changes from
restaurant to retail)
Approved industrial
Building Official makes the
determination.

Commercial Laundry Facilities
Option – Existing Buildings
Prohibit Gas Line Extensions For remodels of single-family homes and ADU’s. Prohibits adding gas capacity to what
is already there. Requires new gas appliance
installations to reduce BTU’s through some
other measure (e.g., replace an existing gas
appliance with an electric one or remove it)
Addresses an
important element of
existing buildings
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3 Electric Vehicle Charging Requirements
Be EV Ready

1. Raceway with 208/240-volt
branch circuit

2. Service Panel and/or
Subpanel 40 amp Capacity
and Space(s)

3. Electrical conforms to CA
electrical code incl. a
receptacle or blank cover
Single Family Homes: One- and Two-Family
Homes, Townhomes with Private Garages,
ADU’s with dedicated parking

1. EV Ready 85% of parking
spaces w/Low Power Level 2
Receptacles

2. EV Chargers 15% of parking
spaces require level 2 EVSE
Multifamily Dwellings Based on # units with
associated parking
spaces

1. EV Capable 10% of parking
spaces

2. EV Ready 35% of parking
spaces w/Low Power Level 2
Receptacles

3. EV Chargers 10% of parking
spaces require level 2 EVSE
All Non-Residential, including Hotels and
Motels
Pacific Gas and
Electric CompanyN
November 9, 2022
VIA EMAIL TO:

Mayor Kate Colin
Mayor Kate Colin
[email protected]
San Rafael City Council
1400 5th A venue
San Rafael, CA 94901
Dear Mayor Colin:

Chris Benjamin
Director
Corporate Sustainability
77 Beale Street
San Francisco, CA 94105
[email protected]
Pacific Gas and Electric Company (PG&E) is proud to provide electric and natural gas service to the City of San Rafael. As the state's largest energy provider, PG&E embraces our foundational role in transitioning California to a decarbonized and more climate-resilient economy. PG&E's Climate Strategy Report(available at www.pge.com/climate) shares our goals to achieve significant emissions reductions by 2030, reach net zero greenhouse gas emissions by 2040, and become "climate positive" by 2050, or actively removing more carbon from the environment than we emit as a company.

PG&E recognizes the value of building decarbonization as an important tool in meeting both PG&E's and the state's climate goals, and we welcome the opportunity to support the City of San Rafael's efforts to promote efficient, all-electric new construction. PG&E also appreciates the opportunity to avoid investments in new natural gas assets that might later prove underutilized as local governments and the state work together to realize long-term decarbonization objectives.

Beyond new construction, PG&E believes a multi-faceted approach is needed to cost-effectively achieve California's economy-wide greenhouse gas reduction objectives, including both strategic electrification and an orderly transition for the natural gas delivery system. In support of the transition, our climate goals include pursuing zonal electrification strategies and providing our hard-toelectrify customers with "greener" gas supplies, including renewable natural gas and potentially hydrogen over the longer-term. As California's decarbonization policies evolve, PG&E will continue to prioritize the safe and reliable operation of our electric and natural gas systems to continue supporting the customers that depend on us.

PG&E appreciates the partnership with the City of San Rafael during its policy development process, which allows us to prepare for the future and continue providing the best service possible to our customers. PG&E regularly forecasts electric load growth in our service area to assess the needs on the electric system and create plans and projects to address them and plan for the needs that allelectric buildings will require.

PG&E looks forward to continuing to work with the City of San Rafael to accomplish its policy goals and remains ready to engage with our customers, local governments, businesses, and community members to meet their needs safely, reliably, affordably, and with clean energy.

Thank you for your engagement with PG&E.

Sincerely,
CfokW~
Chris Benjamin
Director
cc:
• Don Jeppson, Chief Building Official, City of San Rafael [ [email protected]] • Cory Bytof, Sustainability Program Manager, City of San Rafael [ cory. [email protected]]
• Alicia Giudice, Community Development Director, City of San Rafael [ alicia. [email protected]]
• Anna Brooks, Director, Local Government Affairs, PG&E [[email protected]] • Kelly Cunningham, Codes, Standards & Cross-Cutting, PG&E [[email protected]] CONCORD OFFICE: 2300 Clayton Road, Suite 1150, Concord, CA 94520 SAN RAFAEL OFFICE: 1125 Tamalpais Avenue, San Rafael, CA 94901 mceCleanEnergy.org
November 8, 2022
San Rafael City Council
1400 Fifth Avenue, Room 203
San Rafael CA 94901
Dear Mayor Kate Colin and Members of the San Rafael City Council, I am writing to express MCE’s support for the City of San Rafael’s proposed Green Building Reach Code Ordinance which seeks to implement all-electric requirements for new construction. Electrifying the building sector will significantly reduce local greenhouse gas (GHG) emissions, supporting MCE’s mission to confront the climate crisis.

As we embark on a gradual transition to an all-electric building stock, MCE is planning for the increased electricity demand in our long-term power procurement practices. MCE works with our locally-elected Board of Directors and state regulatory agencies - including the California Energy Commission, the California Public Utility Commission, and the California Independent System Operator - to ensure that our customer’s energy needs are met. We forecast electricity demand years in advance; our Operational Integrated Resource Plan is updated annually to reflect needs for the next decade. This includes resource adequacy requirements to procure enough energy to meet at least 115% of expected peak demand, ensuring electricity is available during hours of high consumption to mitigate the risk of outages.

As MCE continues to plan for increased electrical load, we are investing in battery storage both locally and on a utility-scale. These projects allow us to store solar energy produced during the day for use during peak hours of 4 - 9 p.m. and increases access to renewable energy while improving grid reliability.

Projects such as MCE’s Daggett, Golden Fields, Humidor, and Ranch Sereno will collectively supply over 325 MW of utility scale solar + storage, enough to power approximately 133,000 homes.

MCE supports the City of San Rafael’s Green Building Reach Code Ordinance, and we appreciate the opportunity to provide this letter.

Sincerely,
Jamie Tuckey
Chief of Staff, MCE
(415) 688-1054
Agenda Item 5.c Master Fee Schedule -
Continued to a future City Council meeting
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 6.a
Meeting Date: November 21, 2022

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Nadine Atieh Hade,
Administrative Services Director
City Manager Approval: __________
TOPIC: YEAR-END FINANCIAL STATEMENTS AND RELATED AUDIT REPORTS SUBJECT: FISCAL YEAR 2021-2022 ANNUAL FINANCIAL REPORT; GANN APPROPRIATIONS LIMIT; MEMORANDUM ON INTERNAL CONTROL;
REPORT OF REQUIRED COMMUNICATIONS; AND THE CHILD

DEVELOPMENT PROGRAM FINANCIAL REPORT
RECOMMENDATIONS:

Accept the Fiscal Year 2021-2022 Annual Financial Report, Gann Appropriations Limit Report, Memorandum on Internal Control, Report of Required Communications, and the Child Development Program Financial Report.

BACKGROUND:

As required by local code, State law, bond covenants, and best practices, the City of San Rafael completes an annual audit of its financial activities. The auditing firm of Maze and Associates, Accountancy Corporation conducted the audit for fiscal year 2021-2022. Their work was completed in accordance with generally accepted auditing standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget Circular A133, Audits of State and Local Government and Non-Profit Organizations.

The requirements of Section 1.5 of Article XIIIB of the California Constitution are met with an agreed-upon procedure report applied to the Gann Appropriation Limit calculated for the year ending June 30, 2023. A Memorandum on Internal Control is also prepared by the auditors to address the City’s controls over its financial activities. These reports are attached to this staff report.

As part of the fiscal year-end activities, the Finance and Library & Recreation departments worked with the auditors to complete the annual audit of the City’s childcare program, as required by the State of California.

For the year ending June 30, 2022, the City did not receive funds under the purview of the Transportation Development Act. Therefore, no separate audit report was completed to satisfy requirements of the State of California pertaining to these funds.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
ANALYSIS:

Overview
Fiscal Year 2021-22 marked what appears to be a transition from the highs of fiscal 2020-21 as it began with continuing strong revenue growth from sales and use taxes and ended with a bit of a pull-back as inflation and other concerns weighed on economic activity. Overall results were positive, but the latter half of the year portends difficulties for future periods as the global economy navigates numerous challenges to growth.

Fiscal Year 2021-22 Annual Financial Report – City-wide Financial Results The actual results of the City’s financial activities are presented in the attached Annual Comprehensive Financial Report. The report includes Government-wide financial statements with governmental activities and business-type activities presented separately. Net position is one indicator of the City’s financial position. At the end of the fiscal year, net position of the City governmental activities inclusive of all governmental funds, all assets of the City (including infrastructure) and all liabilities (including long-term debt) was $234 million, an increase of $77.8 million from the prior year adjusted balance.

This increase is mainly attributable to a couple of factors. First, Pension and Other Pensionable Employee Benefits (OPEB) adjustments, based mainly on fiscal 2020-21 activity, greatly reduced expenses as the extraordinary market gains achieved during the measurement period caused Pension and OPEB related expenses to turn negative for the year. The adjustments are reflected in the reduction of functional expenses on the Statement of Activities and, as a result, report stark declines from prior years. Also significantly impacting the increase was the recognition of American Rescue Plan Act proceeds reflected in Operating Grants and Contributions on the Statement of Activities. The funds were recognized after a finalization of regulations with respect to the disbursements and qualified as revenue loss from the pandemic. Also impacting the net position were positive results from strong sales and use tax growth for much of the year as well growth in property tax rolls as we begin to realize the impacts of the housing boom of the prior years. The Parking Fund, reported as a business-type activity, ended the fiscal year with a net position of $1 million, or $1.1 million greater than that of the previous fiscal year. The increase was caused by the aforementioned pension and OPEB adjustments and are not reflective of the operational struggles of the program, which have not fully recovered from the shutdowns of the COVID-19 pandemic.

Additional explanatory information is provided in the Management’s Discussion and Analysis (MD&A) section beginning on page five of the attached CAFR. The MD&A provides key highlights and a summary view of financial activities for the year.

Financial Results: General Fund
General fund revenues exceeded expenditures by $16.9 million, mainly due to the recognition of ARPA revenue during the year. Gains achieved from growth in the City’s major revenue sources were largely offset by increased projected claims related to Liability and Workers’ Compensation self-insurance programs as well as an unrealized loss on investments resulting from the decrease in fair value as of June 30, 2022, caused by rapidly rising interest rates.

The fund balance of the General Fund as of June 30, 2022, was $33.8 million (an increase of $16.9 million from the prior year balance): $95 thousand is non-spendable, $9.4 million is committed, and $24.3 million is assigned. The committed portion of $9.4 million is for emergency and cash flow needs which meets the minimum target reserve levels at 10% of general fund operating expenditures.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Gann Appropriations Limit
The Agreed-Upon Procedures report for the Gann Appropriations Limit required three procedures to be performed including testing the accuracy of the calculations and comparison of information presented. No exceptions were noted in these procedures for compliance with the Proposition 111 fiscal year 2022-2023 Appropriations Limit calculation.

Memorandum on Internal Control
The auditors are required to communicate to the City Council matters that come to their attention relating to the audit in a report entitled Memorandum on Internal Control. Findings of deficiencies in internal controls were mainly due to administrative and clerical errors. Staff responses addressing each comment are included in the Memorandum.

Required Communications
Professional standards require that certain information regarding significant audit findings related to the audit be communicated to those charged with governance. These communications include minor changes to accounting policies, new accounting pronouncements, and a discussion of significant accounting estimates among other items. No adverse communications were noted.

Child Development Program (Childcare) Financial Report
The Childcare Program continues to have negative operating results resulting from the pandemic, with $3.2 million in total revenues and $3.3 million in expenditures for the fiscal year. As a result, the fund balance decreased from $508 thousand to $352 thousand. Although the results are negative for the year, the program showed progress in both the increase in revenues and reduction of expenses when compared to the prior year. The audit resulted in no adverse findings.

FISCAL IMPACT:

No fiscal impact occurs by the City Council’s acceptance of these reports. The fiscal year 2021- 22 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. The reports will remain as “draft” until City Council has accepted the reports.

ATTACHMENTS:

1. FY 2021-22 Draft Comprehensive Annual Financial Report

2. FY 2021-22 Draft Gann Appropriations Limit

3. FY 2021-22 Draft Memorandum of Internal Controls

4. FY 2021-22 Draft Required Communications

5. FY 2021-22 Draft Child Development Program Financial Report

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDING JUNE 30, 2022
Southern Heights Bridge, San Rafael, California
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SAN RAFAEL

THE CITY WITH A MISSION
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ANNUAL COMPREHENSIVE

FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2022
City of San Rafael, California
1400 Fifth Avenue
San Rafael, California 94901
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Goat grazing near Robert Dollar Drive

INTRODUCTORY SECTION
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CITY OF SAN RAFAEL, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2022
Table of Contents

INTRODUCTORY SECTION

TABLE OF CONTENTS
Letter of Transmittal .................................................................................................................................... v Mission Statement and Vision Statement ................................................................................................... xi City Council and Staff ............................................................................................................................... xii Location Map ............................................................................................................................................ xiii Organizational Chart ................................................................................................................................. xiv Certificate of Achievement for Excellence in Financial Reporting ........................................................... xv

FINANCIAL SECTION
Independent Auditor's Report .................................................................................................................. 1 Management’s Discussion and Analysis .................................................................................................. 5 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ............................................................................................................. 23 Statement of Activities .................................................................................................................. 24 Fund Financial Statements:

Major Governmental Funds:

Balance Sheet ............................................................................................................................ 28 Balance Sheet – Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities .............................................................................. 29 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 30 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with the Statement of Activities ................................................................................. 31

Proprietary Funds:

Statement of Net Position .......................................................................................................... 34 Statement of Revenues, Expenses, and Changes in Fund Net Position .................................... 35 Statement of Cash Flows ........................................................................................................... 36 DRAFT DRAFT REVIEW DRAFT 11-7-22 i DRAFT

CITY OF SAN RAFAEL, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2022
Table of Contents
FINANCIAL SECTION (Continued)
Fiduciary Funds:

Statement of Fiduciary Net Position ......................................................................................... 38 Statement of Changes in Fiduciary Net Position ....................................................................... 39 Notes to Basic Financial Statements .................................................................................................. 41 Required Supplementary Information:

Schedule of the City’s Proportionate Share of the Net Pension Liability ..................................... 96 Schedule of Contributions – Defined Benefit Pension Plan ......................................................... 97 Schedule of Changes in Net OPEB Liability and Related Ratios ............................................... 105 Schedule of Contributions – OPEB ............................................................................................ 106 Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Budgetary Basis
General Fund ........................................................................................................................... 114 Traffic and Housing Mitigation Special Revenue Fund .......................................................... 115 Gas Tax Special Revenue Fund ............................................................................................... 116 Supplementary Information:

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Budgetary Basis
Essential Facilities Capital Projects Fund ................................................................................ 118 Non-major Governmental Funds:

Combining Balance Sheets ......................................................................................................... 122 Combining Statements of Revenues, Expenditures, and Changes in Fund Balance ................................................................................................................... 126

Budgeted Non-major Governmental Funds:

Combining Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...................................................................... 130

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CITY OF SAN RAFAEL, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2022
Table of Contents
FINANCIAL SECTION (Continued)
Internal Service Funds:

Combining Statements of Net Position ....................................................................................... 140 Combining Statements of Revenues, Expenses and Changes in Fund Net Position ................... 142 Combining Statements of Cash Flows ........................................................................................ 144

STATISTICAL SECTION
Financial Trends:

Net Position by Component – Last Ten Fiscal Years ....................................................................... 150 Changes in Net Position – Last Ten Fiscal Years ............................................................................. 152 Fund Balances of Governmental Funds – Last Ten Fiscal Years ..................................................... 156 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .................................... 158 Revenue Capacity:

Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ...................... 160

Property Tax Rates – All Overlapping Governments – Last Ten Fiscal Years ................................ 161 Property Tax Rates – Direct & Overlapping Governments – Last Ten Fiscal Years (Rate Per $100 of Assessed Value) .......................................................... 162 Principal Property Tax Payers – Current Year and Nine Years Ago ................................................ 163 Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................... 164 Debt Capacity:

Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................... 165

Computation of Direct and Overlapping Debt .................................................................................. 166 Computation of Legal Bonded Debt Margin .................................................................................... 167 Revenue Bond Coverage Parking Facility – Last Ten Fiscal Years ................................................. 168

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CITY OF SAN RAFAEL, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2022
Table of Contents
STATISTICAL SECTION (Continued)
Demographic and Economic Information:

Demographic and Economic Statistics – Last Ten Calendar Years .................................................. 169 Principal Employers – Last Ten Calendar Years .............................................................................. 170 Operating Information:

Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ................................................................................................................. 173 Operating Indicators by Function/Program – Last Ten Fiscal Years ................................................ 174 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ............................................ 176 DRAFT DRAFT REVIEW DRAFT 11-7-22 iv DRAFT

Kate Colin, Mayor • Rachel Kertz, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati, Councilmember • Eli Hill, Councilmember November 21, 2022
Honorable Mayor, Members of the City Council and Residents of San Rafael:

The Annual Comprehensive Financial Report (“Annual Report”) of the City of San Rafael (“City”) for the year ended June 30, 2022, is hereby submitted as required by local ordinances, state statutes and bond covenants. This financial report has been prepared in conformance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB) and includes the report of the independent certified public accounting firm, Maze and Associates Accountancy Corporation, which has issued an unmodified, or “clean” opinion on the City’s financial statements for the fiscal year ended June 30, 2022.

The independent audit of the financial statements is part of a broader, federally mandated examination known as a “Single Audit”, which is designed to meet the needs of federal grantor agencies. The standards governing Single Audits require the independent auditor to report on the audited agency’s internal controls and compliance with legal requirements, with special emphasis on such controls and requirements involving the administration of federal funding. These reports will be available in the City’s separately issued Single Audit Report.

City Management is responsible for both the data accuracy, and the completeness and fairness of the presentation of this report. To the best of our knowledge and belief, the data presented is accurate in all material respects and is reported in a manner that presents fairly the financial position and results of operations of the various funds and component units of the City. Further, the Annual Report is prepared in accordance with procedures and policies set by the Government Finance Officers Association. The analysis of the financial condition and the result of operations can be found in the financial section of the Management’s Discussion and Analysis document. The Annual Report is organized into three sections:

1. Introductory section, which is unaudited, includes this letter of transmittal, an organizational chart and a list of the City’s elected and appointed officials.

2. Financial section, includes the basic financial statements, related footnote disclosures, and the combining and individual fund financial statements and schedules, as well as the independent auditors' report.

3. Statistical section, which is unaudited, includes selected financial and demographic information, presented on a multi-year basis. Generally, ten-year data is presented for expenditures, revenues, assessed valuation for local properties and construction activity.

v
CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG

Kate Colin, Mayor • Rachel Kertz, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati, Councilmember • Eli Hill, Councilmember REPORTING ENTITY – PROFILE OF THE GOVERNMENT
The City of San Rafael is located 17 miles north of San Francisco in Marin County.

Protected by its Mediterranean like setting along the shores of the San Francisco Bay, the City enjoys a mild climate year-round. As the County seat, San Rafael is considered the commercial, financial, cultural and civic hub of Marin County. Abundant recreational facilities are available in and around the City. The City’s park and recreational resources include 24 city parks, 393 acres of developed parkland, city and county open space, and China Camp State Park. San Rafael is close to other attractions, including the Golden Gate Bridge, Muir Woods, Point Reyes National Seashore, Mount Tamalpais, multiple state parks, San Francisco, Oakland and the Sonoma and Napa wine country.

In 1874, the City 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 to four-year terms while the mayor is elected separately to a four-year term. The City’s land area is 22 square miles, including seventeen square miles of land and 5 of water and tidelands. San Rafael's population on January 1, 2022, was 60,560.

Downtown San Rafael is the location of many community events, including Second Friday Art Walks, the Sunset Criterium Bike Race, Mill Valley Film Festival, Parade of Lights and Holiday Festival, and is one of only 14 Cultural Arts Districts in the State of California.

San Rafael is also the heart of the County’s cultural activities with venues such as the Marin Center, which presents numerous ballets, concerts, speaking engagements as well as the award-winning Marin County Fair; the Falkirk Cultural Center, providing art exhibits and children's programming; the Christopher B. Smith Film Center, and a host of other diverse dining and entertainment venues.

The City 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 three locations. The City performed certain infrastructure construction and economic development activities through a separate Redevelopment Agency until its dissolution on February 1, 2012. The City of San Rafael accepted the role of Successor Agency to the Redevelopment Agency per Council action on January 3, 2012, and now conducts its economic development activities with funding from its General Fund.

The City and California Municipal Finance Authority compose the San Rafael Joint Powers Financing Authority, originally established by the City and former Redevelopment Agency for the purpose of financing redevelopment and other projects. The San Rafael Sanitation District is a discretely presented component unit of the City and is presented independent of City financial information. For a further explanation of these entities, refer to Note 1 – Summary of Significant Accounting Policies in the Financial Section of the Annual Report.

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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG

Kate Colin, Mayor • Rachel Kertz, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati, Councilmember • Eli Hill, Councilmember The City participates in various organizations through formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these agencies exercise full powers and authorities within the scope of the related Joint Powers Agreement including the preparation of annual budgets, accountability for all funds, and the power to make and execute contracts.

Obligations and liabilities of the separate entities are not those of the City. For a further explanation of these separate entities, refer to Note 12 – Jointly Governed Organizations in the Annual Report.

Building from over a decade of community efforts to address San Rafael's aging essential public safety facilities, the Essential Facilities project has been underway with major milestones met during the year. In August of 2020 the City completed and placed into service the new Public Safety Center, a state-of-the-art facility for police headquarters and public safety services. On October 18, 2021, the City Council approved a construction bid for Fire Station 54 and Fire Station 55 and construction is currently underway.

ECONOMIC FACTORS
The City has a diversified economic base, which includes an assortment of high-tech, financial, service-based, entertainment and industrial businesses. Downtown San Rafael provides a mix of restaurants, retail shops and financial institutions. The City’s varied economic base is reflected in its property tax base, which is 71% residential, 19% commercial, 2% industrial, and 8% unsecured and others. The top 25 sales tax producers provide 52% of overall sales tax revenues.

With the COVID-19 pandemic waning, the macro-economic environment is facing increasing challenges on its road to recovery. Inflation is running at 40-year highs and actions by the Federal Reserve to contain it threaten to slow economic activity for the near-term. Further, supply chain disruptions persist with ongoing challenges at the ports, railway networks, and the state’s trucking industry causing delays in getting goods to market.

Locally, Marin County is still recovering from the effects of the pandemic, however, as the county’s workforce is more concentrated in the finance, science, and information sectors there is hope the region’s employment figures will continue to outperform much of the state that relies more heavily on personal service and retail.

Demographic Data
The following is a sample of demographic and economic attributes that make San Rafael an exceptional place to live and work.

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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG

Kate Colin, Mayor • Rachel Kertz, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati, Councilmember • Eli Hill, Councilmember  Economic development organizations in San Rafael include the San Rafael Chamber of Commerce, Downtown Business Improvement District, and the Marin Economic Forum.
 Marin County’s top 10 employers include Kaiser Permanente, Marin Health Medical Center, Dominican University of California, Marin Community Clinics, Novato Community Hospital, Hospice by the Bay, W Bradley Electric, Wells Fargo, Community Action Marin, and BioMarin.
 Major shopping areas, as measured in available retail square footage, include the Downtown corridor (938,000 aggregate), Northgate Mall (725,000), Montecito Center (130,000) and Northgate One (113,900).
 The top three sales tax categories during the fiscal year ended June 30, 2022, for San Rafael were: 1. Autos and Transportation (30%), 2. Building and Construction (22%), and 3. State and County Pools, which mainly reflects ecommerce activity (16%).  Several hotels and motels support tourism activity, led by a combined 471 rooms in the Embassy Suites and Four Points Sheraton. Citywide, the total number of hotel rooms is 787.
 Establishing and maintaining affordable residential housing for sale and lease continues to be a challenge both in San Rafael and throughout Marin County. The median rent for an apartment in San Rafael is $2,752. The median home value in San Rafael is $1,507,497.

Recent growth and economic vibrancy:
 The City is enjoying a boost in development of hotel rooms thanks to a new AC Marriott Hotel currently under construction in the heart of our Downtown. A dual-brand Hampton Inn/H2 Hotel is also coming soon in the East San Rafael neighborhood to serve a variety of large retailers and businesses as well as workers within the traditionally industrial area. These two hotels combined are expected to add 325 new hotel rooms to the City and generate Transit Occupancy Tax (TOT).
 The City has embarked upon its first ever Economic Development Strategic Plan by retaining Kosmont Companies to prepare a detailed proposal of insightful, actionable recommendations that provide measurable benefits and value for the City of San Rafael’s economic vitality.
 San Rafael continues to serve our local business and restaurant community by implementing a structured formal outdoor dining program called the Streetary Program, which will replace the temporary emergency outdoor dining program that greatly supported our businesses during the COVID-19 pandemic. In coordination with the Business Improvement District, the City has also reimagined the ‘Dining Under the Lights’ event into a tailored, post-COVID program including block parties and entertainment that draws foot traffic to our downtown.

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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG

Kate Colin, Mayor • Rachel Kertz, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati, Councilmember • Eli Hill, Councilmember

FINANCIAL INFORMATION
The City's management is responsible for establishing and maintaining internal controls to ensure that the City's assets are adequately protected from loss, theft or misuse. In addition, management controls ensure that proper accounting data is collected so as to prepare reports in conformance with generally accepted accounting principles.

Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived. All internal control evaluations occur within the above framework. It is management’s belief that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance that financial transactions are properly recorded.

The City develops a budget based upon City Council priorities and department objectives.

The Finance Department maintains a traditional line-item budget by major function.

Budget control is accomplished at the functional or division level within each fund. This budget creates a comprehensive management and fiscal system aimed at achieving the objectives of each operating level consistent with those that have been set for the community by the City Council. Each department director is responsible for accomplishing goals within his or her functional area and monitoring the use of her or his budget allocations consistent with policies set by the City Council and monitored by the City Manager.

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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG

Kate Colin, Mayor • Rachel Kertz, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati, Councilmember • Eli Hill, Councilmember

ACKNOWLEDGMENTS
The preparation of this City-wide document would not have been possible without the assistance of each of the City’s departments. In addition, Finance support staff Kate Llamas, Whitney Zimmerman, Rayanne Lulay, Damien Oyobio, Claire Coleman, and Finance lead Shawn Plate, with oversight by Accounting Manager Van Bach and Administrative Services Director Nadine Atieh Hade were key to the timely issuance of this report. We believe this document meets the Government Finance Officers Association’s (GFOA) Certificate of Achievement for Excellence in Financial Reporting requirements and will be submitting it to the GFOA to determine its eligibility. If accepted, this will mark the eleventh consecutive year for which the City received the award.

Lastly, we appreciate the ongoing leadership and support from the Mayor and City Councilmembers. Their strong commitment to financial accountability and stewardship provide inspiration to the organization and motivate a high level of achievement.

Respectfully submitted,
Jim Schutz Nadine Atieh Hade
City Manager Administrative Services
Director
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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG

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
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SAN RAFAEL

THE CITY WITH A MISSION
City Council and Staff
As of November 21, 2022
City Council
Kate Colin, Mayor
Rachel Kertz, Vice Mayor
Maribeth Bushey, Councilmember
Eli Hill, Councilmember
Maika Llorens Gulati, Councilmember
Elected Officials
Rob Epstein, City Attorney
Lindsay Lara, City Clerk
Executive Team
Jim Schutz, City Manager
Cristine Alilovich, Assistant City Manager
David Spiller, Chief of Police
Darin White, Fire Chief
April Miller, Public Works Director
Alicia Giudice, Community Development Director
Catherine Quffa, Library & Recreation Director
Nadine Atieh Hade, Administrative Services Director
Sean Mooney, Director of Digital Service & Open Government Genevieve Coyle, Assistant City Attorney
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SAN RAFAEL

THE CITY WITH A MISSION

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ORGANIZATIONAL CHART
Electorate
City Attorney City Clerk
Mayor
& City Council
Boards &
Assistant City Commissions
Manager
Volunteer
and
Sustainability
Programs
Parking
Services
Police
Department
Fire
Department
Library and
Recreation
Public
Works
Economic
Development
City Manager
Digital Service and
Open Government
Community
Development
Homeless
Initiatives
Administrative
Services
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~SAN
~
RAFAEL

THE CITY WITH A M ISSION
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Rafael
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
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e
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“Streetary”, Downtown San Rafael

FINANCIAL SECTION
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of San Rafael, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of San Rafael (City), California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management 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, and for 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.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

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Accountancy Corporation
3478 Buskirk Avenue, Suite 215
Pleasant Hill, CA 94523
T 925.930.0902
F 925.930.0135
E [email protected]
w mazeassociates.com
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Change in Accounting Principles
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 87, Leases, which became effective during the year ended June 30, 2022 and required restatement of certain governmental activities lease-related balances as discussed in Note 1S to the financial statements.

Management also adopted the provisions of Governmental Accounting Standards Board Statement No. 98, The Annual Comprehensive Financial Report, for the year ended June 30, 2022, which establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments.

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The emphasis of these matters does not constitute a modification to our opinions.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other required supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such 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.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exits, we are required to describe it in our report.

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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 21, 2022, 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 solely 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 the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Pleasant Hill, California
November 21, 2022
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
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, 2022. Please read it in conjunction with the basic financial statements and the accompanying notes to those basic financial statements.

FINANCIAL HIGHLIGHTS
Government-wide:
 Net Position – The assets and deferred outflows of the City exceeded its liabilities and deferred inflows as of June 30, 2022, by $244 million.
 Activities – During the fiscal year the City’s total revenues of $152.2 were greater than expenses of $73.4 million for governmental and business-type activities.  Changes in Net Position – The City’s total net position increased by $78.9 million in fiscal year 2021-2022 as compared to the net position of the previous year. Net position of governmental activities increased by $77.8 million, while net position of the business-type activities increased by $1.1 million.

Fund Level:
 Governmental Funds – As of the close of fiscal year 2021-2022, the City’s governmental funds reported combined ending fund balances of $71.9 million, an increase of $17.1 million primarily due the recognition of $16.1 million in American Rescue Plan Act (ARPA) funding. Of this total amount, $185 thousand is nonspendable, $36.4 million is restricted, $10.9 million is committed, and $24.4 million is assigned.  Governmental fund revenues totaled $147.1 million, an increase of $23.1 million from the those of the previous fiscal year. Approximately $16.1 million was due to the recognition of ARPA funding, $4 million can be attributed to larger use tax remittances with a full year of Measure R proceeds recorded during the year as opposed to one quarter in fiscal 2020-2021. The remainder is mainly due to increased grant activity related to projects during the year, offset by a negative fair value adjustment of approximately $2 million against the pooled fixed income investment portfolio for the year.  Governmental fund expenditures increased by $15.8 million to $132.4 million, from $116.5 million in the prior year, due to a number of factors. Compensation increased following labor negotiations in the prior year and the repayment of furloughs enacted during the prior fiscal year additionally, project expenditures increased as we begin to deploy ARPA funds as well as Essential Facilities Capital Projects increasing with the construction of Fire Stations 45 and 55 adding $3.8 million in charges. Overall, we also experienced increasing costs for goods and services across the board.  Enterprise fund net position increased $1.1 million to $10 million as a result of pension adjustments related to market gains achieved in FY 2020-2021 (measurement year), which is also responsible for the decrease in Enterprise operating expenses of $1.5 million when compared to the previous year.

OVERVIEW OF FINANCIAL STATEMENTS
The Annual Comprehensive 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, including Fiduciary Funds, along with the Notes to these financial statements

4. Combining statements for Non-Major Governmental Funds and Internal Service Funds

5. Statistical Information
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which have three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Basic Financial Statements.

The basic financial statements include the City (primary government) and all legally separate entities (component units) for which the government is financially accountable. This report also contains other supplementary information in addition to the basic financial statements for further information and analysis.

Government-wide Financial Statements
The government-wide financial statements present the financial picture of the City and provide readers with a broad view of the City’s finances. These statements present governmental activities and business-type activities separately and include all assets of the City (including infrastructure) as well as all liabilities (including long-term debt).

Additionally, certain interfund receivables, payables, and other interfund activity have been eliminated as prescribed by generally accepted accounting principles.

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, deferred outflows/inflows of resources, and liabilities, with the difference reported as net position. Over time, increases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities and Changes in Net Position presents information showing how the City’s net position changed during the year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of timing of related cash flows.

In the Statement of Net Position and the Statement of Activities and Changes in Net Position, City activities are separated as follows:

Governmental Activities – Most of the City’s basic services are reported in this category, including Public Safety, Public Works and Parks, Community Development, Cultural and Recreation, and Government Administration (finance, human resources, legal, City Clerk and City Manager operations). Property tax, sales and use taxes, user fees, interest income, franchise fees, hotel taxes, business licenses, and property transfer taxes, plus state and federal grants finance these activities.

Business-type Activities – The City charges fees to customers to cover the full costs of certain services it provides.

The City’s Parking Services program is the City’s sole business-type activity.

Discretely Presented Component Units – The government–wide financial statements include not only the City itself (the primary government), but also the San Rafael Sanitation District, a legally separate entity for which the City is financially accountable. Financial information for the San Rafael Sanitation District is reported separately from the financial information presented for the primary government.

The government-wide financial statements can be found on pages 23 through 25 of this report.

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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
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. 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 122 through 137 of this report.

Governmental Funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financial capacity.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for government funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. These reconciliations are presented on the page immediately following each governmental fund financial statement.

The City has thirty-two governmental funds, of which four are considered major funds for presentation purposes.

Each major fund is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. The City’s four major funds are: the General Fund, Traffic and Housing Mitigation Fund, Gas Tax Fund and Essential Facilities Capital Projects Fund. Data from the other twenty-five governmental funds are combined into a single, aggregated presentation. The basic governmental fund financial statements can be found on pages 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 122 through 137 of this report.

Proprietary Funds – The City maintains two different types of proprietary funds - enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses an enterprise fund to account for its Parking Services program and reports it as a major fund. Internal service funds are used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its building maintenance; vehicle, equipment and computer replacement; workers’ compensation; general liability; self-insured dental program; other employee and retiree benefits programs. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Like the government-wide financial statements, proprietary fund financial statements use the accrual basis of accounting. There is no reconciliation needed between the government-wide financial statements for business-type activities and the proprietary fund financial statements.

The proprietary fund financial statements can be found on pages 34 through 36 of this report.

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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
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 Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds include a private purpose trust fund to account for activities of the City of San Rafael Successor Agency and a custodial 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.

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 95 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 General Fund and major funds (general, gas tax, and traffic and housing mitigation). The other section includes schedules of funding progress for the Marin County Employees’ Retirement System and the City’s OPEB plan. 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 the system and the OPEB plan. Required supplementary information can be found on pages 96 through 111 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
Net position measures the difference between (a) assets and deferred outflows of resources and (b) liabilities and deferred inflows of resources. During this fiscal year, the net position of the City was $234.3 million from Governmental Activities and $10.1 million from Business-type Activities, for a total of $244.4 million. This represents an increase of $78.9 million from the prior year net position.

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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2022 and 2021:

Current and other governmental assets increased by $67.4 million, primarily resulting from the inclusion of a Net Pension Asset of $46.6 million as the City’s pension plan became fully funded following substantial gains during the measurement period, as well as the recognition of ARPA revenues during the year of $8 million. The remainder is primarily the result of positive operating results as revenue growth outpaced expense growth during the year. The $15.6 million increase in capital assets reflects project-to-date activity for Fire Station 54 and 55 construction and improvements in combination with major traffic infrastructure improvements. The decrease of $15 million in deferred outflows is primarily a result the impact of pension-related investment gains during the measurement year which caused the unamortized net difference between projected and actual earnings on plan investments to shift to a deferred inflow. In order to decrease the volatility of the measurement of net pension liability gains and losses in excess of those projected are capitalized and amortized over a five-year period. Current and other liabilities decreased by approximately $3.8 million, primarily due to the recognition of ARPA funds that were classified as unearned revenue in the prior year, offset by an increase in accounts payable of $3.6 million. Noncurrent governmental liabilities decreased by $153.6 million mainly as a result of the reclassification of net pension liability to net pension asset mentioned previously. Deferred inflows increased by $147.7 million mainly as a result of the net difference between projected and actual earning on investments during the measurement period that resulted in a substantial net deferred inflow.

Increase Increase
2022 2021 (A) (Decrease) 2022 2021 (Decrease)
Current and other assets $174,072 $106,662 $67,410 $3,568 $2,536 $1,032 Capital assets 294,928 279,337 15,591 15,281 15,505 (224) Total assets 469,000 385,999 83,001 18,849 18,041 808
Deferred outflows (Notes 9 and 11) 42,534 57,577 (15,043) 1,312 1,864 (552) Current and other liabilities 19,246 23,067 (3,821) 533 464 69 Noncurrent liabilities 88,630 242,272 (153,642) 4,086 9,793 (5,707) Total liabilities 107,876 265,339 (157,463) 4,619 10,257 (5,638) Deferred inflows (Notes 4G, 9 and 11) 169,434 21,739 147,695 5,475 678 4,797 Net Position:

Net investment in capital assets 246,438 228,253 18,185 11,256 11,174 82 Restricted 36,668 36,175 493 0 0 0
Unrestricted (48,883) (107,930) 59,047 (1,189) (2,205) 1,016 Total net position $234,223 $156,498 $77,725 $10,067 $8,969 $1,098 (A) Not restated for the effects of GASB Statement No. 87 implementation. See Note 1S for additional information.

Governmental Activities Business-Type Activities
Summary of Net Position
(in thousands)
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
The net position in business-type activities reflects the fiscal activity of the Parking Services program and increased by $1.1 million from the previous year as a result of pension adjustments noted above for extraordinary gains during the measurement period. Capital assets decreased by $224 thousand due to current year depreciation. The decreases in noncurrent liabilities and deferred outflows and related increases in deferred inflows and current and other assets was due to the pension-related adjustments mentioned above. The $69 thousand increase in current liabilities is driven by the increase accounts payable to end the year.

At June 30, 2022, the largest portion of total net position in the amount of $257.7 million consisted of the City’s investment in capital assets net of related debt. This component represents the total amount of funds required to acquire capital assets less any related debt used for such acquisition that is still outstanding. The City uses these assets to provide services to residents. The capital assets of the City are not sources of income for repayment of debt as most assets are not revenue generating and generally are not liquidated to repay debt. Therefore, debt service payments are funded from other sources available to the City.

A portion of the City's total net position, $36.7 million, is subject to external restrictions, and their use is determined by those restrictions whether legal or by covenant. The remaining portion, unrestricted negative $50 million, represents the extent to which the net investment in capital assets and restricted net position exceed total net assets.

Invested in Capital Assets (net) $257,694
Restricted 36,668
Unrestricted (50,072)
Total Net Position $244,290
Net Position as of 6/30/2022
(in thousands)
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
Statement of Activities - Governmental
The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ended June 30, 2022 and 2021:

Increase
2022 2021 (Decrease)

REVENUES
Program revenues:

Charges for services $18,938 $19,764 ($826)
Operating grants and contributions 22,521 5,133 17,388
Capital grants and contributions 9,868 8,719 1,149
Total program revenues 51,327 33,616 17,711
General revenues:

Property taxes 32,324 30,994 1,330
Sales taxes 44,110 39,599 4,511
Paramedic tax 5,110 5,153 (43)
Transient occupancy tax 2,976 1,798 1,178
Franchise tax 4,210 3,974 236
Business license tax 2,646 2,575 71
Other taxes 3,109 2,997 112
Investment earnings (1,424) 389 (1,813)
Gain from sale of capital assets 990 - 990
Miscellaneous 2,966 2,840 126
Total general revenues 97,017 90,319 6,698
TOTAL REVENUES 148,344 123,935 24,409

EXPENSES
General government 10,459 12,255 (1,796)
Public safety 34,379 54,737 (20,358)
Public works and parks 14,031 20,750 (6,719)
Community/economic development 2,835 5,804 (2,969)
Culture and recreation 7,431 10,619 (3,188)
Interest on long-term debt 2,005 1,936 69
TOTAL EXPENSES 71,140 106,101 (34,961)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 77,204 17,834 59,370
Transfers in 521 538 (17)
Total Other Financing Sources (Uses) 521 538 (17)
Net Change in Net Position 77,725 18,372 59,353
Beginning Net Position 156,498 138,126 18,372
Ending Net Position, June 30 $234,223 $156,498 $77,725
Governmental Activities
Summary of Changes in Net Position
(in thousands)
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
The City’s governmental activities net position increased by $77.7 million during fiscal year 2021-2022. Year-overyear increases in revenues of $24.4 million were mainly the result of the recognition of ARPA proceeds of $16.1, but also impacted by other items. Sales and use tax remittances continued to outperform forecasts while also including the first full year of Measure R transaction and use tax proceeds leading to an increase of $4.5 million over the prior year. Property tax revenues showed strong growth at 4.2% leading to an overall revenue increase of $1.3 million as we begin to see the impact of increased assessed valuations following the raging hot housing market of the previous fiscal year. Transient occupancy tax showed some resilience as the pandemic waned, leading to a year over year increase of $1.2 million, however these revenues remain below pre-pandemic levels. These positives are offset by the reported investment loss caused by the rapid rise in interest rates toward the latter half of the fiscal year depressing bond markets and adversely affecting the City’s fixed income portfolio.

Overall operating expenses report stark declines for the fiscal year as a direct result of pension and OPEB adjustments made during the year. The measurement year for determining these adjustments was the year ending June 30, 2021, when the market had achieved extraordinary returns causing overall pension and OPEB expense to be negative for the year. The adjustments for these expenses offset personnel costs in each functional area on the Statement of Activities and produce a dramatically different picture than that of the fund financial statements, which do not account for pension and OPEB items in the same manner.

The following graph shows governmental revenues by source:

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Capitill gr.ants and
contributions, 6.6§%
Revenues by Source
Governmental Act"v"f es
Cltarges for senrices,

12.76%
Operating grants and
-...._ contributions, 15.11%
Misc:ellaneous, 1.81%

CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
Total expenses for governmental activities were $69.1 million (excluding interest on long-term debt of $2 million).

Program revenues offset total expenses as follows:
 Those who directly benefited from programs contributed $18.9 million in charges for services.  A total of $32.3 million in operating and capital projects were funded by outside agencies through operating grants, capital grants, and contributions.

As a result, total expenses that were funded by tax revenues, investment income, other general revenues and fund balance were $17.9 million.

Functional expenses for the year ended June 30, 2022, were as follows:

Function Amount Percent of Total
General government $10,459 14.7%
Public safety 34,379 48.3%
Public works and parks 14,031 19.7%
Community development 2,835 4.0%
Culture and recreation 7,431 10.4%
Interest on debt 2,005 2.8%
Total expenses $71,140 100%
Expenses by Function
(in thousands)
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$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
sPublic Safety
Expenses and Program Revenues
Governmenta I Activities
(in thousands)
Public Works and
Parks
Culture and
Recreati o:n
General Government Commuriity
Development
■ Program Revenues ■ Expenses

CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
The net position for business-type activities increased from the prior year by $1.1 million primarily as a result of pension adjustments related to extraordinary investment gains during the measurement period reducing reported personnel expenses significantly.

Parking services is the City’s only business-type activity with income derived from program revenues of $3.8 million.

Program revenues include parking meter coin income of $1.3 million and parking garage hourly and monthly parking income of $0.8 million. Revenues also include parking and non-vehicle code fines totaling $1.7 million. Total expenses for parking services were $2.2 million and transfers out to general fund and non-major governmental fund for support totaled $521 thousand during the fiscal year 2021-2022. The Parking services program has been acutely affected by the lasting impacts of the coronavirus pandemic as the effects of reduced brick-and-mortar business activity and increased remote work arrangements have reduced demand for street and garage parking.

Increase
2022 2021 (Decrease)
Revenues
Program revenues:

Charges for services $3,837 $3,352 $485
Total program revenues 3,837 3,352 485
General revenues:

Investment Income 9 4 5
Total general revenues 9 4 5
TOTAL REVENUES 3,846 3,356 490
Expenses
General government 2,227 3,749 (1,522)
TOTAL EXPENSES 2,227 3,749 (1,522)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES (393) 1,619 2,012

OTHER FINANCING SOURCES (USES)
Transfers out (521) (538) 17
Total Other Financing sources (uses) (521) (538) 17
Net Change in Net Position 1,098 (931) 2,029
Net Position, Beginning 8,969 9,900 (931)
Net Position, Ending $10,067 $8,969 $1,098
Summary of Changes in Net Position
For the periods ended June 30, 2022 and 2021 (in thousands) Business-Type Activities
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022

FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS
Governmental Funds
Fund Balance Classifications
Fund balances are classified in five categories: nonspendable, restricted, committed, assigned, and unassigned based on a hierarchy of constraint. Further details on fund balance classifications can be found in Note 8B.

The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financial capacity. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of June 30, 2022, the City reported a combined ending fund balance of $71.9 million of all its governmental funds (an increase of $17.1 million from the prior year): $185 thousand is non-spendable, $36.4 million is restricted, $10.9 million is committed, and $24.4 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, 2022, was $33.8 million (an increase of $16.9 million from the prior year balance): $95 thousand is non-spendable, $9.4 million is committed, and $24.3 million is assigned. The committed portion of the balance includes $9.4 million for emergency and cash flow needs.

General Fund Budgetary Highlights:

The original adopted General Fund budget projected total revenue of $89 million and transfers-in of $1.8 million for total resources of $90.8 million. This budget appropriated expenditures of $88.5 million and transfers-out of $2 million for total appropriations of $90.5 million. Revenues were later increased to $110.1 million to include the recognition of $16.1 million in ARPA proceeds as well as better-than-anticipated sales and use tax receipts. Transfersout were increased by $974 thousand to provide increased support of recreation fund expenditures as a result of the lasting effects of the pandemic as well as project support.

Actual revenues, at $109.8 million, exceeded original budgeted revenues by $20.8 million. $16.1 million of the increase is related to the recognition of ARPA proceeds and the remainder can be attributed to increased sales and use taxes as the economy remained in high gear for much of the year, as well as the new Measure R transaction and use tax recording its first full year of implementation. These revenue increases were offset by an adverse fair value adjustment to the City’s fixed income portfolio of approximately $2 million. Expenditures of $91.6 million were $3.1 million greater than original budgeted expenditures of $88.5 million after actuarial reports for Liability and Workers’ Compensation programs were issued with substantially increased liabilities for future claims.

Fiscal year 2021-2022 General Fund revenues and transfers in of $111.5 million exceeded expenditures and transfers out of $94.6 million by $16.8 million. The increase is primarily the result of the use of ARPA proceeds and the savings have been earmarked for specific future projects and initiatives.

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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
Traffic and Housing Mitigation Fund – The City uses this fund to collect developer contributions to be used for major street improvement and housing infrastructure projects. During the year, the fund balance decreased from $6.6 million to $4.9 million. Revenues totaled $630 thousand, while $1.1 million was charged against this fund to support the maintenance of the City-wide traffic model, and $1.2 million was transferred out for project support. The main projects supported during the year include pedestrian improvements in the Canal neighborhood as well as the third street rehabilitation project. The balance in the fund is being held in anticipation of major street projects identified in the General Plan 2040 and other qualifying expenditures.

Gas Tax Fund – The City uses this fund to manage its allocation of State gasoline taxes and local funding for street maintenance projects. Gas tax revenues exceeded expenditures and net transfers by $2.6 million in fiscal year 2021- 2022 resulting in an increase in fund balance from $4.3 million to $6.9 million. The activities for the year were all planned and approved project work.

Expenditures during fiscal year 2021-2022 totaled $11.6 million. In addition to routine street-related maintenance of $1.5 million, major expenditures included $5.8 million for the third street rehabilitation project, $1.5 million for sidewalk improvements along Francisco Boulevard, $1 million for a resurfacing and improvements to Bungalow Avenue, and $500 thousand for pedestrian improvements in the Canal neighborhood.

The largest sources of revenues were $3.9 million in development impact fees, $2.6 million in federal grants, $1.4 million from State gasoline taxes, $1.2 million in State RMRA (Road Maintenance and Rehabilitation Account) funding, $1 million in local Measure A funding.

Essential Facilities Capital Projects Fund – The City uses this fund to account for major capital improvements to public safety facilities. During the year, construction began on Fire Stations 54 and 55. Expenditures during fiscal year 2021-2022 totaled $4.9 million, transfers from the General Fund representing an allocation of Measure E Transaction and Use Tax totaled $715 thousand and $307 thousand was allocated from paramedic tax funds.

Non-major Governmental Funds – The City’s non-major funds are presented in the basic financial statements in the aggregate. At June 30, 2022, non-major funds had a total fund balance of $17 million, a $2 million increase over that of the previous year. The largest fund balance decrease, $359 thousand, was recorded in the Grants Fund as result of prior year grants being spent down. The largest fund balance increase, $649 thousand, was recorded in the Low and Moderate Income Housing Fund as an old ground lease was refinanced into a loan during the year resulting in the repayment of $643 thousand.

Adopted Budget Revised Budget Actual
Revenues $88,997 $110,146 $109,790
Transfers in 1,755 1,755 1,755
Total resources 90,752 111,901 111,545
Expenditures 88,491 $92,275 91,636
Operating transfers out 2,000 2,250 2,250
Capital transfers out - 724 724
Total uses 90,491 95,249 94,610
Net Results $261 $16,652 $16,935
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2022 (in thousands)
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
Of the ending total non-major fund balances of $17 million: $15.3 million (90%) is legally restricted for specific purposes by external funding source providers, $1.5 million (9%) is committed for special purposes by the City Council, $118 thousand (less than 1%) is assigned, and $90 thousand (less than 1%) in nonspendable. Additional information about these aggregated non-major funds is presented in the combining statements which immediately follow the required supplementary information.

Proprietary Funds
The City’s proprietary funds are presented in the basic financial statements in a manner similar to that found in the government-wide financial statements, but in more detail. As noted in the Summary of Changes in Net Position – Business-type Activities at page 14, the City’s enterprise fund net position increased by $1.1 million during the fiscal year. The Parking Services Fund is the City’s sole business-type (Enterprise) activity.

The parking services fund’s operating revenue increased by $485 thousand in fiscal year 2021-2022 to $3.8 million.

The enterprise fund operating expenses were $2.1 million in fiscal year 2021-2022, a decrease of $1.5 million over the prior fiscal year. The increase in operating revenues was the result of recovery from the pandemic driving a slightly higher demand for parking, however, is not reaching pre-pandemic totals. The substantial decrease in expenses is a direct result of pension adjustments related to the measurement year ending June 30, 2022, when extraordinary gains were achieved and more than offset expenses for the period.

The City’s Internal Service Funds are also reported in this Proprietary Fund classification. In fiscal year 2021-2022, the Internal Services Funds were comprised of: Building Maintenance, Vehicle Replacement, Equipment Replacement, Employee Benefits, Liability Insurance, Workers’ Compensation, Dental Insurance, Employee Retirement, OPEB/Retiree Medical, Radio Replacement, Telephone Replacement and Sewer Maintenance. The net position of the Internal Service Funds increased by $4.5 million. Net investment in capital assets decreased by $863 thousand, while unrestricted fund balance increased by $5.3 million. The decrease in capital assets resulted primarily from depreciation of existing capital assets. The increase in unrestricted fund balance reflected increased allocations to the Building Maintenance Fund, Vehicle Replacement Fund, and Equipment Replacement Fund to fund repair and replacement of aging capital assets. The other Internal Service Funds reported small-to-moderate changes to their respective net positions.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2022, amounts to $310 million, net of accumulated depreciation of $206 million. This investment in capital assets includes land, buildings, improvements, machinery and equipment, infrastructure, right-to-use lease assets, 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 addition to the City’s investment in capital assets for the current fiscal year was $14.3 million, offset by accumulated depreciation of $8.6 million.

Additions to capital assets during fiscal year 2021-2022 included:
 Machinery and Equipment: Fire boat infrared camera $39 thousand  Infrastructure: $20.9 million
 Anderson Drive Rail Crossing Improvements - $6.2 million  Francisco Blvd East Sidewalk Improvements - $6.1 million DRAFT DRAFT REVIEW DRAFT 11-7-22 17 DRAFT

CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
 Southern Heights Bridge Replacement – $4.7 million
 Traffic Signal Improvements - $1.5 million
 Francisco Blvd East Resurfacing - $1.1 million
 Canal Neighborhood Pedestrian Improvements - $822 thousand  San Rafael High School Crosswalk - $472 thousand
The City’s Capital Assets for the fiscal years ending June 30, 2022 and 2021 were as follows:

Additional information on the City’s capital assets can be found in Note 5 on pages 62 through 64 of this report.

The 2021 balances have been restated to reflect the effects of the implementation of GASB Statement No. 87. See Note 1S for additional information.

Debt Administration
The City’s debt obligations were stable year-over-year and reflect payments of principal made during the year. The debt of the former Redevelopment Agency is reported under the Successor Agency, which is presented as a PrivatePurpose Trust Fund on the Statement of Fiduciary Net Position. (See Note 6 of the financial statements for additional information on the debt obligations of the City and Note 16 for additional information on the Successor Agency.) The City’s long-term obligations for the fiscal years ending June 30, 2022 and 2021 were as follows:
2022 2021 (as restated)
Governmental Activities
Land $84,026 $83,662
Construction in progress 22,485 24,617
Land improvements 9,763 9,763
Buildings and structures 119,165 119,165
Machinery and equipment 20,497 21,146
Infrastructure 234,559 213,602
Intagible right-to-use leased building 5,476 5,476
Intagible right-to-use leased equipment 258 258
Less accumulated depreciation ( (192,617) 201,301)
Subtotal Governmental Activities 294,928 285,072
Business-type Activities
Land 8,621 8,621
Buildings and structures 10,714 10,714
Machinery and equipment 940 940
Less accumulated depreciation (4,994) (4,770)
Subtotal Business-type Activities 15,281 15,505
Total Capital Assets $310,209 $300,577
Summary of Capital Assets
(in thousands)
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
ECONOMIC CLIMATE AND NEXT YEAR’S BUDGET
The global economy is currently experiencing a slowdown as high inflation and supply constraints weigh heavily on the economic outlook. The International Monetary Fund currently projects global growth to slow from 6.0% in 2021 to 3.2% in 2022, then reduced further to 2.7% in 2023. Overall, in the near-term, it is easy to sour upon the outlook as Russia’s invasion of Ukraine rages on, financial markets in turmoil in the United Kingdom, and reduced production from China as they continue to grapple with the COVID-19 pandemic all present considerable challenges to global economic activity.

In California the slowdown is beginning to take shape as the Legislative Analyst Office recently revised estimates for personal income, sales, and corporation taxes down, now indicating an 80% chance of falling below the Budget Act assumption of $210 billion. According to preliminary August data, California’s unemployment rate has ticked up to 4.1% after steadily declining to 3.9% in July and posting its first month-over month increase since May of 2020.

It appears the state may be at an inflection point and time will tell how it will weather the storm.

Locally, Marin County remains somewhat insulated from more pronounced impacts of the macro environment with an unemployment rate among the lowest in the state at 2.4% and per capita income among the highest. However, there could be signs of tougher times ahead as Marin’s traditionally largest service sector, Educational & Health Services, has seen reduced employment of 11.2% year-over year, according to the most recent data from the Employment Development Department.

In San Rafael, any negative economic impacts remain subdued early in the year. Sales and use taxes for the first two months of fiscal year 2023 are tapering from the highs of the prior year, however, remain at the elevated postshutdown level of fiscal year 2020-2021. The macro-economic headwinds are expected to filter down to the City in the near term, however, they can be expected to be less severe at the local level.

The City heads into the new fiscal year with a strong balance sheet and large capital projects in the pipeline bolstered by ARPA funds. Expectations are for large drawdowns on accumulated fund balances as capital projects get underway.

However, costs are continuing to rise and certain projects may need to be prioritized to ensure the City does not become overextended.
2022 2021
Governmental Activity Debt:
2018 Authority Lease Revenue Bond $47,600 $50,179
2010 Taxable Pension Obligation Bonds 2,340 2,845
PG & E City Hall HVAC Retrofit Note Payable 46 79
PG & E Efficiency Note Payable 680 826
PG & E City Hall Efficiency Note Payable 165
Subtotal Governmental Activity Debt 50,831 53,929
Business-Type Activity Debt:

PG & E Parking Lot Lighting Retrofit Note Payable 7 14
2012 Authority Lease Revenue Refunding Bonds 4,018 4,317 Subtotal Business-Type Activity Debt 4,025 4,331
Total Long-Term Obligations $54,856 $58,260
Summary of Long-Term Debt
(in thousands)
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CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
Sales tax and transactions and use tax (Measure E and Measure R) combined, represent the City’s largest tax revenue generators, the second largest being property tax. The City initially budgeted for mostly level revenues with the prior year but has since begun to temper expectations as it begins to be clear that economic headwinds may take their toll on municipal revenues.

The City’s largest expenditure relates to personnel costs. Salaries and benefits are tied to the labor agreements with each bargaining group. The City’s labor units are all operating under three-year contracts that expire in 2024.

REQUEST FOR INFORMATION
This financial report is designed to provide our residents, businesses, customers, and investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for providing high quality services within the limits of our fiscal resources. If you have questions about this report or need additional financial information, contact the City of San Rafael – Finance Department at 1400 Fifth Avenue, Room 204, San Rafael, California 94901.

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CITY OF SAN RAFAEL

STATEMENT OF NET POSITION AND

STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial activities and financial position. They are also referred to as Government-wide financial statements.

The Statement of Net Position reports the difference between the City’s total assets and deferred outflows of resources and the City’s total liabilities and deferred inflows of resources, 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 and deferred inflows of resources from total assets and deferred outflows of resources.

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 and Capital Projects 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, deferred outflows/inflows of resources, 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.

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CITY OF SAN RAFAEL

STATEMENT OF NET POSITION
JUNE 30, 2022
Component
Primary Government Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
ASSETS
Cash and investments available for operations (Note 2) $102,374,883 $1,129,447 $103,504,330 $46,864,314 Restricted cash and investments (Note 2) 712,709 712,709 Receivables:

Accounts, net 3,504,742 877,306 4,382,048 1,607,845
Intergovernmental 11,084,418 11,084,418
Grants 2,797,356 2,797,356
Interest 133,047 133,047
Loans (Note 4A) 2,778,004 2,778,004
Long-term receivable from San Rafael Sanitation District (Note 4F) 3,324,061 3,324,061 Leases receivable (Note 4G) 557,629 557,629
Prepaid expenses and others 189,500 189,500 75,194
Net pension asset (Note 9) 46,614,932 1,561,377 48,176,309 Capital assets (Note 5):

Nondepreciable 106,510,879 8,620,853 115,131,732 937,738 Depreciable, net 188,417,498 6,659,877 195,077,375 54,629,711 Total Assets 468,999,658 18,848,860 487,848,518 104,114,802

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension (Note 9) 36,393,655 1,219,013 37,612,668 Deferred outflows related to OPEB (Note 11) 6,140,534 93,466 6,234,000 Total Deferred Outflows of Resources 42,534,189 1,312,479 43,846,668

LIABILITIES
Accounts payable 11,236,564 140,931 11,377,495 1,169,978 Developer and other deposits payable 991,469 991,469
Interest payable 35,897 35,897
Unearned revenue 619,549 25,798 645,347
Claims payable (Note 13):

Due in one year 2,802,022 2,802,022
Due in more than one year 12,799,700 12,799,700
Compensated absences (Note 1L):

Due in one year 535,976 13,518 549,494
Due in more than one year 3,751,835 94,629 3,846,464
Long-term debt (Note 6):

Due in one year 2,978,397 316,816 3,295,213
Due in more than one year 47,852,479 3,707,692 51,560,171 Lease liabilities (Note 14):

Due in one year 82,561 82,561
Due in more than one year 5,578,135 5,578,135
3,324,061
Net OPEB liability, due in more than one year (Note 11) 18,648,153 283,847 18,932,000 Total Liabilities 107,876,840 4,619,128 112,495,968 4,494,039

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension (Note 9) 158,929,204 5,323,368 164,252,572 Deferred inflows related to OPEB (Note 11) 9,961,376 151,624 10,113,000 Deferred inflows related to leases receivable (Note 4G) 543,350 543,350 Total Deferred Inflows of Resources 169,433,930 5,474,992 174,908,922 NET POSITION (Note 8):

Net investment in capital assets 246,437,706 11,256,222 257,693,928 55,567,449 Restricted for:

Special revenue projects:

Housing and street improvements 13,662,708 13,662,708
Stormwater 1,269,705 1,269,705
Emergency medical services 832,600 832,600
Other 11,015,663 11,015,663
Capital projects 9,888,090 9,888,090
Total Restricted Net Position 36,668,766 36,668,766
Unrestricted (48,883,395) (1,189,003) (50,072,398) 44,053,314 Total Net Position $234,223,077 $10,067,219 $244,290,296 $99,620,763 See accompanying notes to financial statements
Long-term payable to the City of San Rafael, due in more than one year (Note 4F) DRAFT DRAFT REVIEW DRAFT 11-7-22 23 DRAFT

CITY OF SAN RAFAEL

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary Government
Governmental Activities:

General government $10,458,884 $1,039,816 $16,732,928
Public safety 34,379,474 6,302,852 1,700,678
Public works and parks 14,030,717 2,996,881 3,706,929 $8,914,792 Community development 2,835,173 4,493,292 5,821
Culture and recreation 7,430,968 4,105,520 374,524 953,091 Interest on long-term debt and fiscal charges 2,004,572 Total Governmental Activities 71,139,788 18,938,361 22,520,880 9,867,883 Business-type Activities:

Parking services 2,226,556 3,836,881
Total Business-type Activities 2,226,556 3,836,881
Total Primary Government $73,366,344 $22,775,242 $22,520,880 $9,867,883 Component Unit
San Rafael Sanitation District $12,892,687 $16,458,113 $5,568 $517,752 General revenues:

Taxes:

Property
Sales:

Sales and Use
Measure R quarter-cent sales
Measure E half-cent sales
Measure E quarter-cent sales
Paramedic
Transient occupancy
Franchise
Business license
Other
Investment earnings
Gain from sale of capital assets
Miscellaneous
Transfers (Note 3A)
Total general revenues and transfers
Change in Net Position
Net Position, beginning of year
Net Position, end of year
See accompanying notes to financial statements
DRAFT DRAFT REVIEW DRAFT 11-7-22 24 DRAFT
Component
Primary Government Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
$7,313,860 $7,313,860
(26,375,944) (26,375,944)
1,587,885 1,587,885
1,663,940 1,663,940
(1,997,833) (1,997,833)
(2,004,572) (2,004,572)
(19,812,664) (19,812,664)
$1,610,325 1,610,325
1,610,325 1,610,325
(19,812,664) 1,610,325 (18,202,339)
$4,088,746
32,324,129 32,324,129 2,086,682
24,502,716 24,502,716
4,778,951 4,778,951
9,885,869 9,885,869
4,942,935 4,942,935
5,109,836 5,109,836
2,976,234 2,976,234
4,209,979 4,209,979
2,645,636 2,645,636
3,108,543 3,108,543
(1,424,183) 8,802 (1,415,381) (406,535)
989,991 989,991
2,965,697 2,965,697
521,209 (521,209)
97,537,542 (512,407) 97,025,135 1,680,147
77,724,878 1,097,918 78,822,796 5,768,893
156,498,199 8,969,301 165,467,500 93,851,870
$234,223,077 $10,067,219 $244,290,296 $99,620,763
Net (Expenses) Revenues and Changes in Net Position
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FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year. Only individual major funds are presented in the Fund Financial Statements, while non-major funds are combined in a single column. Individual non-major funds may be found in the Supplemental Section.

The funds described below were determined to be major funds by the City in fiscal year 2021-2022:

GENERAL FUND
Established to account for all financial resources necessary to carry out basic governmental activities of the City which are not accounted for in another fund. The General Fund supports essential City services such as police and fire protection, building and street maintenance, libraries, recreation, parks, and open space maintenance.

TRAFFIC AND HOUSING MITIGATION SPECIAL REVENUE FUND
Established to maintain long-term developer contributions for major housing and street improvement projects.

GAS TAX SPECIAL REVENUE FUND
Established to receive and expend the City’s allocation of the State gasoline taxes.

ESSENTIAL FACILITIES CAPITAL PROJECTS FUND
Established to account for major capital improvements to public safety facilities.

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CITY OF SAN RAFAEL

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2022
Traffic and Essential Other Total
General Housing Facilities Capital Governmental Governmental Fund Mitigation Gas Tax Projects Fund Funds Funds
ASSETS
Cash and investments available for operations (Note 2) $29,467,022 $2,912,417 $6,470,630 $10,401,325 $14,946,428 $64,197,822 Restricted cash and investments (Note 2) 608,125 205 104,379 712,709 Receivables:

Accounts 1,433,476 162,167 1,909,099 3,504,742
Intergovernmental 8,944,744 1,982,097 157,577 11,084,418 Grants 545,861 1,187,749 1,045,581 2,779,191
Interest 131,313 1,734 133,047
Loans (Note 4A) 747 1,856,431 920,826 2,778,004
Leases (Note 4G) 54,319 503,310 557,629
Prepaids 95,279 89,761 185,040
Total Assets $41,280,886 $4,931,015 $9,640,476 $10,401,530 $19,678,695 $85,932,602

LIABILITIES
Accounts payable $5,623,208 $59,144 $2,722,209 $1,084,218 $1,262,546 $10,751,325 Deposits payable 286,573 306,567 593,140
Developer deposits payable 394,694 3,635 398,329
Unearned revenue 62,000 557,549 619,549
Total Liabilities 6,366,475 59,144 2,722,209 1,084,218 2,130,297 12,362,343

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue:

SB90 reimbursement receivable 1,080,400 1,080,400
Related to leases (Note 4G) 52,892 490,458 543,350
Total Deferred Inflows of Resources 1,133,292 490,458 1,623,750 Fund Balances (Note 8):

Nonspendable 95,279 89,761 185,040
Restricted 4,871,871 6,918,267 9,317,312 15,336,069 36,443,519 Committed 9,415,000 1,514,355 10,929,355
Assigned 24,270,840 117,755 24,388,595
Total Fund Balances 33,781,119 4,871,871 6,918,267 9,317,312 17,057,940 71,946,509 Total Liabilities, Deferred Inflows of Resources
and Fund Balances $41,280,886 $4,931,015 $9,640,476 $10,401,530 $19,678,695 $85,932,602 Special Revenue Funds
See accompanying notes to basic financial statements
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CITY OF SAN RAFAEL

GOVERNMENTAL FUNDS

BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL

FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES JUNE 30, 2022
Total fund balances reported on the governmental funds balance sheet $71,946,509 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. 283,221,992 Internal service funds are used by management to charge the cost of management of 33,654,138
Long-term liabilities, including bonds payable and lease liabilities, are not due and payable in the current period and, therefore, are not reported in the Governmental Funds. (56,326,600) Compensated absences (4,287,811)
Unavailable revenue 1,080,400
Long-term receivable from San Rafael Sanitation District 3,324,061 Deferred outflows related to pension 36,393,655
Net pension asset 46,614,932
Deferred inflows related to pension (158,929,204)
Deferred outflows related to OPEB 6,140,534
Deferred inflows related to OPEB (9,961,376)
Net OPEB liability (18,648,153)
Net position of governmental activities $234,223,077
building, workers' compensation, employee benefits, insurance, and post-retirement healthcare benefits to individual funds. The assets and liabilities are included in Governmental Activities in the Statement of Net Position.

See accompanying notes to financial statements
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CITY OF SAN RAFAEL

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2022
Traffic and Essential Other Total
Housing Facilities Capital Governmental Governmental
General Mitigation Gas Tax Projects Fund Funds Funds

REVENUES
Taxes and special assessments $84,324,467 $9,280,515 $93,604,982 Licenses and permits 3,077,355 3,077,355
Fines and forfeitures 296,300 296,300
Use of money and properties (1,969,810) $47,133 $40,412 $95,586 188,965 (1,597,714) Intergovernmental 20,393,799 225,000 9,528,965 4,091,393 34,239,157 Charges for services 2,880,711 198,531 2,089,594 8,146,178 13,315,014 Other revenue 786,766 159,310 1,811,524 1,442,220 4,199,820 Total Revenues 109,789,588 629,974 13,470,495 95,586 23,149,271 147,134,914

EXPENDITURES
Current:

General government 17,214,009 31,986 470,671 17,716,666 Public safety 46,824,239 11,573,482 58,397,721
Public works and parks 13,516,875 636,429 1,474,091 868,152 16,495,547 Community development 5,377,625 358,588 5,736,213
Culture and recreation 2,989,038 8,330,508 11,319,546
Capital outlay 372,147 99,173 10,099,991 4,897,862 1,876,281 17,345,454 Debt service:

Principal 2,829,057 2,829,057
Interest and fiscal charges 2,512,515 2,512,515
Total Expenditures 91,635,505 1,126,176 11,574,082 4,897,862 23,119,094 132,352,719

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 18,154,083 (496,202) 1,896,413 (4,802,276) 30,177 14,782,195

OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 1,000,000 1,000,000 Transfers in (Note 3A) 1,755,022 1,312,000 1,022,198 2,352,544 6,441,764 Transfers out (Note 3A) (2,973,885) (1,190,000) (635,000) (315,857) (5,114,742) Total Other Financing Sources (Uses) (1,218,863) (1,190,000) 677,000 2,022,198 2,036,687 2,327,022 Net Change in Fund Balances 16,935,220 (1,686,202) 2,573,413 (2,780,078) 2,066,864 17,109,217 FUND BALANCES, BEGINNING OF YEAR 16,845,899 6,558,073 4,344,854 12,097,390 14,991,076 54,837,292 FUND BALANCES, END OF YEAR $33,781,119 $4,871,871 $6,918,267 $9,317,312 $17,057,940 $71,946,509 See accompanying notes to financial statements
Special Revenue Funds
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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, 2022
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $17,109,217 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 and amortization expense.

Capital outlay and improvement expenditures are added back to fund balance 18,669,368 Retirement of capital assets is deducted from fund balance (1,255) Depreciation and amortization expense is deducted from fund balance (8,113,574) (Depreciation expense is net of internal service fund depreciation of $1,342,045, which has already been allocated to serviced funds.)
Long-Term Debt and Lease Liability Proceeds and Payments Governmental funds record proceeds and payments as other financing sources and expenditures.

However, in the Statement of Net Position, those costs are reversed as increases and decreases in long-term liabilities.

Repayments of long-term debt principal 2,755,169
Amortized bond premium expense is added back to fund balance 507,943 Repayments of lease principal 78,120
Interest on lease is deducted from fund balance (4,232) Accrual of Non-Current Items
The amount below included in the Statement of Activities does not require the use of current financial Compensated absences 518,294
Unavailable revenue (12,034)
Long-term receivable from San Rafael Sanitation District (1,600,309) Net Pension (Asset) Liability Transactions
Governmental funds record pension expense as it is paid. However, in the Statement of Activities those costs are reversed as deferred outflows/(inflows) and an increase/(decrease) in net pension (asset) liability. 40,667,809 Net OPEB Liability Transactions
Governmental funds record OPEB expense as it is paid. However, in the Statement of Activities those costs are reversed as deferred outflows/(inflows) and an increase/(decrease) in net OPEB liability. 2,672,302 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. 4,478,060 Change in Net Position of Governmental Activities $77,724,878 resources and therefore is not reported as revenue or expenditures in governmental funds (net change):

See accompanying notes to financial statements
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PROPRIETARY FUND FINANCIAL STATEMENTS
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges, whether external or internal.

The City reports its only enterprise fund as a major fund.

PARKING SERVICES FUND
Established to maintain parking garages, lots, and spaces in the Downtown Parking District, and to pay for parking enforcement and meter collection.

INTERNAL SERVICE FUNDS
Established to account for department services and financing performed for other departments within the same governmental jurisdiction. Funding comes from charges assessed to the departments benefiting from the service.

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CITY OF SAN RAFAEL

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2022
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds
ASSETS
Current Assets:

Cash and investments available for operations (Note 2) $1,129,447 $38,177,061 Receivable:

Accounts, net 877,306
Grants 18,165
Prepaid expense 4,460
Total Current Assets 2,006,753 38,199,686
Noncurrent Assets:

Capital assets (Note 5):

Nondepreciable 8,620,853 909,746
Depreciable, net 6,659,877 10,796,639
Net pension asset (Note 9) 1,561,377
Total Noncurrent Assets 16,842,107 11,706,385
Total Assets 18,848,860 49,906,071

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension (Note 9) 1,219,013 Deferred outflows related to OPEB (Note 11) 93,466
Total Deferred Outflows of Resources 1,312,479

LIABILITIES
Current Liabilities:

Accounts payable 140,931 485,239
Interest payable 35,897
Unearned revenue 25,798
Compensated absences, due in one year (Note 1L) 13,518
Claims payable, due in one year (Note 13) 2,802,022
Long-term debt, due in one year (Note 6) 316,816 21,755 Total Current Liabilities 532,960 3,309,016
Noncurrent Liabilities:

Compensated absences (Note 1L) 94,629
Claims payable (Note 13) 12,799,700
Long-term debt (Note 6) 3,707,692 143,217
Net OPEB liability (Note 11) 283,847
Total Noncurrent Liabilities 4,086,168 12,942,917
Total Liabilities 4,619,128 16,251,933

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension (Note 9) 5,323,368
Deferred inflows related to OPEB (Note 11) 151,624
Total Deferred Inflows of Resources 5,474,992
NET POSITION (Note 8):

Net investment in capital assets 11,256,222 11,541,413
Unrestricted (1,189,003) 22,112,725
Total Net Position $10,067,219 $33,654,138
See accompanying notes to financial statements
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CITY OF SAN RAFAEL

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2022
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds

OPERATING REVENUES
Charges for current services $2,160,302 $23,687,437
Other operating revenues 1,676,579 882,690
Intergovernmental 43,423
Total Operating Revenues 3,836,881 24,613,550

OPERATING EXPENSES
Personnel 295,540 4,024,485
Insurance premiums and claims 10,194,824
Maintenance and repairs 126,205 306,656
Depreciation expense (Note 5) 224,472 1,342,045
General and administrative 1,430,001 3,717,137
Total Operating Expenses 2,076,218 19,585,147
Operating Income 1,760,663 5,028,403

NONOPERATING REVENUES (EXPENSES)
Investment income 8,802 230,586
Miscellaneous revenue 30,193
Interest expense (150,338)
Gain from sale of capital assets 33,698
(Loss) from disposal of capital assets (39,007)
Total Nonoperating Revenues (Expenses) (141,536) 255,470 Income Before Contributions and Transfers 1,619,127 5,283,873 TRANSFERS OUT (Note 3A) (521,209) (805,813)
Change in Net Position 1,097,918 4,478,060
NET POSITION, BEGINNING OF YEAR 8,969,301 29,176,078
NET POSITION, END OF YEAR $10,067,219 $33,654,138
See accompanying notes to financial statements
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CITY OF SAN RAFAEL

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2022
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $2,160,302 $23,732,399 Cash payments to suppliers for goods and services (1,498,095) (13,716,473) Cash payments to employees for salaries and benefits (1,901,398) (1,240,692) Other revenues 1,775,014 882,690
Cash Flows from Operating Activities 535,823 9,657,924

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Miscellaneous revenues 30,193
Interfund payments (521,209) (805,813)
Cash Flows from Noncapital
Financing Activities (521,209) (775,620)

CASH FLOWS FROM CAPITAL

AND RELATED FINANCING ACTIVITIES
Principal payments on revenue bonds and note payable (306,818) (9,064) Proceeds from note payable 174,036
Interest expenses and fiscal charges (151,863)
Acquisition of capital assets (696,003)
Proceeds from sale of capital assets 46,401
Cash Flows from Capital and
Related Financing Activities (458,681) (484,630)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 8,802 230,586
Cash Flows from Investing Activities 8,802 230,586
NET CHANGE IN CASH AND CASH EQUIVALENTS (435,265) 8,628,260 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,564,712 29,548,801 CASH AND CASH EQUIVALENTS, END OF YEAR $1,129,447 $38,177,061 Reconciliation of operating income to net cash
provided by operating activities:

Operating income $1,760,663 $5,028,403
Adjustments to reconcile operating income
to cash flows from operating activities:

Depreciation 224,472 1,342,045
Net change in assets and liabilities:

Accounts receivable 93,811 1,539
Prepaids (4,460)
OPEB-related items (276,698)
Accounts payable 58,111 (42,422)
Unearned revenue 4,624
Compensated absence obligations (10,046)
Pension-related items (1,319,114)
Claims payable 3,332,819
Net Cash Provided by Operating Activities $535,823 $9,657,924 NON-CASH TRANSACTIONS:

Retirement of capital assets ($51,710)
Amortization of bond discount $725
See accompanying notes to basic financial statements
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FIDUCIARY FUND FINANCIAL STATEMENTS
Fiduciary funds are used to account for assets held by the City as an agent or custodian for other entities.

The financial activities of such funds are excluded from the Government-wide financial statements and present fund statements that consist of a Statement of Net Position and a Statement of Changes in 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 CUSTODIAL FUND
Established to accumulate funds for payment of principal and interest for Pt. San Pedro Road Median Landscaping Assessment District bonds.

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Successor Agency
to the Pt. San Pedro
Redevelopment Road Assessment
Agency District
Private-Purpose Custodial
Trust Fund Fund
ASSETS
Cash available for operations (Note 2) $173,063 $221,627 Receivables:

Taxes 3,081,500 857
Total Assets 3,254,563 222,484

LIABILITIES
Accounts payable 2,500
Interest payable 20,288
Long-term debt (Note 16C):

Due within one year 3,553,454
Total Liabilities 3,555,954 20,288

NET POSITION (DEFICIT)
Restricted for:

Bondholders 173,063 202,196
Unrestricted (474,454)
Total Net Position ($301,391) $202,196
See accompanying notes to financial statements

CITY OF SAN RAFAEL

FIDUCIARY FUNDS

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022
DRAFT DRAFT REVIEW DRAFT 11-7-22 38 DRAFT
Successor Agency
to the Pt. San Pedro
Redevelopment Road Assessment
Agency District
Private-Purpose Custodial
Trust Fund Fund

ADDITIONS
Property taxes $3,450,910 $134,759
Use of money and property 7
Total Additions 3,450,917 134,759

DEDUCTIONS
General government 180,640
Payments to bondholders 79,900
Interest expense 174,324 61,563
Total Deductions 354,964 141,463
Change in Net Position 3,095,953 (6,704)

NET POSITION
Beginning of year (3,397,344) 208,900
End of year ($301,391) $202,196

CITY OF SAN RAFAEL

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
See accompanying notes to financial statements
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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
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 Unit
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 unit is 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.

Activities of the Authority related to the 2012 Authority Lease Revenue Refunding Bonds are reported in the Parking Services Enterprise Fund. Activities of the Authority related to the 2018 Authority Lease Revenue Bonds are reported in the City’s General Fund and the Essential Facilities Capital Projects Fund. Separate financial statements are not prepared for the Authority.

C. Description of Discretely Presented Component Unit
San Rafael Sanitation District – The San Rafael Sanitation District (District) was formed in 1947 under Section 4700 of the California Health and Safety Code to provide wastewater transmission over the southern two-thirds of the City and adjacent unincorporated areas.

The District is governed by a three-member Board of Directors who are appointed to four-year terms. The City Council of the City appoints two out of the three board members and has the ability to remove the two board members at will.

The City contracts with the District to maintain the collection systems in the City and surrounding unincorporated areas. These employees are paid through the City’s payroll department and participate in the City’s cost-sharing multiple-employer defined benefit pension plan administered by the Marin County Employees’ Retirement Association. The employees also participate in the City’s healthcare benefits plan which includes a provision for postemployment benefits. These costs are the obligation of the District and not the City. As discussed in Note 4F, a receivable from the District has been established.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The District’s activities are reported as a discretely presented component unit in a separate column in the basic financial statements which includes the District’s assets, liabilities, revenues, expenses, results of operations and cash flows. The District’s fiscal year ends on June 30 and its separately issued component unit financial statements can be obtained at the San Rafael Sanitation District, 111 Morphew Street, San Rafael, California 94901.

D. Basis of Presentation
Government-wide Statements – The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall City government, except for fiduciary activities. Interfund transfers and amounts owed between funds within the primary government have been eliminated from the statements. Amounts representing interfund services and uses remain in the statements. These statements distinguish between the governmental and businesstype activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements – The fund financial statements provide information about the City’s funds, including fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as non-major funds.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.

E. Major Funds and Other Reported Funds
Major funds are defined as funds that have either assets and deferred outflows of resources, liabilities and deferred inflows of resources, 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.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City reported the following major governmental funds in the accompanying financial statements:

General Fund – Established to account for all financial resources necessary to carry out basic governmental activities of the City which are not accounted for in another fund.

Traffic and Housing Mitigation Special Revenue Fund – Established to maintain long-term developer contributions for major housing and street improvement projects.

Gas Tax Special Revenue Fund – Established to receive and expend the City’s allocation of State gasoline taxes.

Essential Facilities Capital Projects Fund – Established to account for major capital improvements to public safety facilities.

The City reported its only enterprise fund as a major fund in the accompanying financial statements. The enterprise fund is:

Parking Services Fund – Established to maintain parking garages, lots, and spaces in the Downtown Parking District, and to pay for parking enforcement, meter collection, and downtown enforcement services.

The City also reports the following fund types:

Internal Service Funds – These funds account for: building maintenance; vehicle, equipment, radio, and telephone replacement; employee benefits; liability insurance; workers’ compensation; dental insurance; employee retirement; retiree medical (OPEB); and sewer maintenance.

Fiduciary Funds – These funds include: Successor Agency to the Redevelopment Agency PrivatePurpose 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; and Pt. San Pedro Road Assessment District Custodial 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.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end with the exception of sales and use tax revenues which are reported as available if collected within ninety days of yearend. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, including lease liabilities, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions, including entering into contracts giving the City the right-to-use leased assets, are reported as expenditures in governmental funds. Proceeds from long-term debt and financing through leases are reported as other financing sources.

Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental revenues, interest revenue, charges for services, fines, and forfeitures. Other receipts and taxes are recognized as revenue when the cash is received.

Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenue. Thus, both restricted and unrestricted net position may be made available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

The City considers restricted shared state revenues such as gasoline taxes and public safety sales taxes, restricted locally imposed transportation sales taxes, fines, forfeitures, licenses, permits, charges for services, and program grants as program revenues.

Certain indirect costs are included in program expenses reported for individual functions and activities.

G. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In addition to liabilities, the statement of financial position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

Unavailable revenue, a type of deferred inflow of resources, is reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from intergovernmental receivables and deferred amounts related to leases. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

H. Budgets, Budgetary Accounting, and Encumbrances
The City adopts an annual budget which is effective July 1 for the ensuing fiscal year. The budget reflects estimated revenues and expenditures, except for the capital projects funds. Appropriations and spending authorizations for projects in the capital projects funds and some special revenue funds are approved by the City Council on a multi-year basis. From the effective date of the budget, which is adopted at the department level, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The City Council may amend the budget by resolution during the fiscal year in order to respond to emerging needs, changes in resources, or shifting priorities. Expenditures may not exceed appropriations at the fund level, which is the legal level of control. The City Manager is authorized to transfer budgeted amounts between accounts, departments, or funds; the Council must approve any increase in the City’s operating expenditures, appropriations for capital projects, and transfers between major funds and reportable fund groups.

Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles for the General Fund and Special Revenue Funds.

Encumbrance accounting, under which purchase orders for expenditures are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of the budgetary process. All unencumbered appropriations lapse at year end.

I. Cash Equivalents
For purposes of the statement of cash flows, the City considers all highly liquid investments (including all restricted assets) with maturities 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.

J. Prepaids
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) K. Capital Assets
City
Contributed capital assets are valued at their estimated acquisition value on the date contributed.

Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value. All other capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available, except for intangible right-to-use lease assets, the measurement of which is discussed in Note 1R below.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

City policy has set the capitalization thresholds for reporting capital assets at the following:

General capital assets ranging from $5,000 to $50,000
Infrastructure capital assets ranging from $25,000 to $250,000 Depreciation is provided using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets.

The City has assigned the useful lives listed below to capital assets:

Buildings, improvements, and structures 20 – 50 years
Machinery and equipment 4 – 20 years
Infrastructure 15 – 50 years
Right to use leased building 35 years
Right to use leased equipment 1.5 – 5 years
District
Collection systems and facilities purchased or constructed are stated at cost. Assets contributed are recorded at the estimated acquisition value at the date received. Interest is capitalized for assets constructed when applicable. The costs of normal repairs and maintenance that do not add to the value of an asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable.

Applicable capital assets must be capitalized for amounts $1,000 or above and may be capitalized for amounts from $500 to $1,000 if determined to be sensitive. Depreciation is provided by the straight-line method over the estimated useful lives of capital assets as follows:

Subsurface lines 50 – 80 years
Sewage collection facilities 5 – 50 years
General plant and administrative facilities 3 – 15 years DRAFT DRAFT REVIEW DRAFT 11-7-22 46 DRAFT

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) L. Compensated Absences
Compensated absences are accrued as earned. Upon termination, employees are paid for all unused vacation at their current hourly rates. Unused sick leave may be compensable up to 600 hours, depending upon the provisions of the MOUs, which vary by bargaining unit.

The long-term portion of the liability for compensated absences for governmental fund type operations is recorded as compensated absences in the government-wide financial statements.

Compensated absences are liquidated by the fund that has recorded the liability. Proprietary fund liabilities are recorded within their respective funds. The long-term portion of governmental activities compensated absences is liquidated primarily by the General Fund.

The changes in compensated absences as of June 30, 2022 were as follows:

Governmental Business-Type
Activities Activities Total
Beginning Balance $4,806,105 $118,193 $4,924,298
Additions 2,464,583 86,071 2,550,654
Payments (2,982,877) (96,117) (3,078,994)
Ending Balance $4,287,811 $108,147 $4,395,958
Current Portion $535,976 $13,518 $549,494
M. Property Tax Levy, Collection and Maximum Rates – City State of California Constitution Article XIII A provides that the combined maximum property tax rate on any given property may not exceed 1% of its assessed value unless an additional amount for general obligation debt has been approved by voters. Assessed value is calculated at 100% of market value as defined by Article XIII A and may be adjusted by no more than 2% per year unless the property is sold, transferred, or substantially improved. The State Legislature has determined the method of distribution of receipts from a 1% tax levy among the counties, cities, school districts and other districts. Marin County assesses properties, bills for, and collects property taxes on the schedule that follows:

Secured Unsecured
Valuation/lien dates January 1 January 1
Levy dates July 1 July 1
Due dates (delinquent as of) 50% on November 1 (December 10) July 1 (August 31) 50% on February 1 (April 10)

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) For assessment and collection purposes, property is classified as either “secured” or “unsecured” and is listed accordingly on separate parts of the assessment roll. The “secured roll” is that part of the assessment roll containing State-assessed property and real property having a tax lien that is sufficient, in the opinion of the County Assessor, to secure payment of the taxes. Unsecured property comprises all taxable property not attached to land, such as personal property or business property.

Every tax levied by a county that becomes a lien on secured property has priority over all present and future private liens arising pursuant to State law on the secured property, regardless of the time of the creation of the other liens. A tax levied on unsecured property does not become a lien against the taxed unsecured property, but may become a lien on other property owned by the taxpayer.

Property taxes are levied and recorded as revenue when received in the fiscal year of levy because of the adoption of the “alternate method of property tax distribution,” known as the Teeter Plan, by the City and the County of Marin. The Teeter Plan authorized the auditor-controller of the County of Marin to allocate 100% of the secured property taxes billed, but not yet paid. The County of Marin remits tax monies to the City in three installments, as follows:
55% remitted on December 15
40% remitted on April 15
5% remitted on June 15
N. Sewer Charges – District
Sewer charges are billed and collected on behalf of the District by the County of Marin as a special assessment on annual property tax billings. Property taxes are levied on January 1 and are due in two equal installments on November 1 and February 1 and become delinquent December 10 and April 10, for the first and second installments, respectively. In accordance with the Teeter Plan, the County remits to the District all charges which are assessed and the county retains responsibility for collecting past due amounts.

The Teeter Plan provides that the County advance the District its share of the annual gross levy of secured property taxes and special assessments. In consideration, the District gives the County of Marin its rights to penalties and interest on delinquent secured property tax receivables and actual proceeds collected.

O. Connection Fees – District
Connection fees represent a one-time contribution of resources to the District imposed on contractors and developers for the purpose of financing capital improvements. Connection fees are recognized after non-operating revenues (expenses) in the statement of revenues, expenses, and changes in net position. The District utilizes connection fees received on a first-in-first-out basis to finance current year capital projects. Accordingly, if there is a balance of connection fees available at year-end, it is classified as restricted net position.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) P. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for an asset or liability.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.

Q. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles 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.

R. Leases
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment.

Lessee – The City is a lessee for noncancellable leases of equipment and land. The City recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in the government‐wide financial statements. The City recognizes lease liabilities with an initial individual value of $25,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight‐line basis over the lesser of its useful life or the life of the lease agreement.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments as follows:
 The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease.  Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise, if applicable.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with other capital assets and lease liabilities are reported with long-term lease liabilities on the statement of net position.

Lessor – The City is a lessor for noncancellable leases of certain buildings and land. The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
 The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease.  Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) S. New Accounting Pronouncements
GASB Statement No. 87 – In June 2017, GASB issued Statement No. 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The provisions of this Statement were implemented during fiscal year 2022. As part of the implementation of this Statement, the City has accounted for certain lessor and lessee transactions, which required the restatement of beginning net position of the governmental activities leases receivable and deferred inflows in the amounts of $615,997, and capital assets and lease liabilities in the amount of $5,734,584, and the net effect on beginning net position and fund balance is zero. See the leases disclosures in Notes 4G and 14.

GASB Statement No. 92 – In January 2020, GASB issued Statement No. 92, Omnibus 2020.

The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics and includes specific provisions about the following: Statement No. 87, Leases; reporting of intra-entity transfers between a primary government employer and a component unit defined benefit pension plan or defined benefit other postemployment benefit (OPEB) plan; applicability of Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, as amended, and No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, to reporting assets accumulated for postemployment benefits; applicability of certain requirements of Statement No. 84, Fiduciary Activities, to postemployment benefit arrangements; asset retirement obligations; reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature; terminology used to refer to derivative instruments. The provisions of this Statement were implemented during fiscal year 2022. The implementation of this Statement did not have a material effect on the financial statements.

GASB Statement No. 98 – In October 2021, GASB issued Statement No. 98, The Annual Comprehensive Financial Report. This Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. The provisions of this Statement were implemented during fiscal year 2022.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS
A. Policies
The City maintains an investment policy that emphasizes safety, liquidity, and reasonable market yield. This policy is reviewed and approved by the City Council annually.

The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. In order to increase security, the City employs the trust department of a bank as the custodian of certain City managed investments, regardless of their form.

California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a market value of 150% of the deposit, as collateral for these deposits. Under California Law this collateral is held in a separate investment pool by another institution in the City’s name and places the City ahead of general creditors of the institution.

The City’s investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.

B. Classification
Cash and investments as of June 30, 2022, are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or agency agreements.

Statement of Net Position:

City of San Rafael:

Cash and investments available for operations $103,504,330 Restricted cash and investments 712,709
Total Primary Government Cash and Investments 104,217,039 San Rafael Sanitation District (Component Unit):

Cash and investments available for operations 46,864,314 Total San Rafael Sanitation District Cash and Investments 46,864,314 Statement of Fiduciary Net Position (separate statement):

Successor Agency to the Redevelopment Agency Private Purpose Trust Fund:

Cash available for operations 173,063
Pt. San Pedro Road Assessment District Custodial Fund:

Cash available for operations 221,627
Total Fiduciary Fund Cash and Investments 394,690
Total Cash and Investments $151,476,043
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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
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.

C. Investments Authorized by the California Government Code and the City’s Investment Policy The City’s investment policy and the California Government Code allow the City to invest in the following securities provided the credit ratings of the issuers are acceptable to the City and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City’s Investment Policy where it is more restrictive:

Minimum Maximum Maximum
Maximum Credit Percentage of Investment in
Authorized Investment Type Maturity Quality (A) Portfolio (A) One Issuer U.S. Government Obligations 5 years N/A No limit No limit Federal Agency Securities and Instruments 5 years N/A No limit No limit Repurchase Agreements 1 year N/A No limit No limit
Prime Commercial Paper 270 days A-1 25% 10% of total outstanding commercial paper and
5% of portfolio
Banker's Acceptances 180 days A-1 40% $2,000,000
Medium-Term Corporate Notes 5 years A 30% 5% of portfolio Negotiable Certificates of Deposit 5 years A-1 30% 5% of portfolio Non-negotiable Certificates of Deposit 5 years N/A 30% 5% of portfolio Local Agency Investment Fund N/A N/A N/A $75m per Account Money Market Funds N/A AAA 10% N/A
Mortgage and Asset-Backed Obligations 5 years AA 20% N/A Supranational Securities 5 years AA 15% N/A
Limited Obligation Improvement Bonds
Special Assessment Districts and Special Tax
Districts issued by the City of San Rafael 30 years N/A N/A N/A (A) At time of purchase
The San Rafael Sanitation District maintains all of its cash in the County of Marin pooled investment fund for the purpose of increasing interest earnings through pooled investment activities.

The County Pool includes both voluntary and involuntary participation from external entities.

The District is a voluntary participant. The State of California statutes require certain special districts and other governmental entities to maintain their cash surplus with the County Treasurer.

The District has approved by resolution, the investment policy of the County of Marin which complies with the California Government Code.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged as reserves to be used if there are insufficient resources to meet debt repayment obligations. The California Government Code requires these funds to be invested in accordance with City ordinance bond indentures or State statute. The table below identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements:

Maximum
Maturity
U.S. Treasury Obligations 5 years to no
maximum
N/A No Limit
U.S. Agency Securities 3 - 5 years N/A No Limit
U.S. Agency Instruments 5 years N/A No Limit
Repurchase Agreements 1 year A-1 No Limit
Banker's Acceptances 360 days Highest Category Rating No Limit Money Market Mutual Funds N/A Highest Category Rating No Limit Prime Commercial Paper 270 days Highest Category Rating No Limit N/A Highest Category Rating No Limit
Medium-Term Corporate Notes 5 Years A No Limit
Non-Negotiable Certificates of Deposit 180 Days N/A No Limit Negotiable Certificates of Deposit 5 Years N/A No Limit Local Agency Investment Fund N/A N/A No Limit
California Asset Management Program N/A N/A No Limit
Deposit Accounts N/A A No Limit
Defeasance Securities N/A N/A No Limit
(A) At time of purchase.
(B) Guaranteed Investment Contracts must be fully collateralized with U.S. Treasury or U.S. Agency Obligations.

Maximum
Percentage of
Portfolio
Guaranteed Investment Contracts (fully
collateralized) (B)
Authorized Investment Type Minimum Credit Quality (A)
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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
E. Fair Value Hierarchy
The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2022:
(a) (b) (c)
Level 1 Level 2 Level 3 Total
City:

Money Market Funds $787,168 $787,168
U.S. Government Obligations $19,307,665 19,307,665
Federal Agency Securities and Instruments 11,004,009 11,004,009 Medium-Term Corporate Notes 13,224,811 13,224,811
Investment in Pt. San Pedro Bonds $1,134,017 (d) 1,134,017 $19,307,665 $25,015,988 $1,134,017 45,457,670
Investments Exempt from Fair Value Hierarchy:

Local Agency Investment Fund 48,843,399
Marin County Investment Pool 81,400
Total Investments 94,382,469
Cash in banks and on hand 9,834,570
Total City Cash and Investments 104,217,039
Fiduciary:

Cash in banks 394,690
Total Fiduciary Cash 394,690
Total City and Fiduciary Cash and Investments 104,611,729 San Rafael Sanitation District:

Marin County Investment Pool 46,864,314
46,864,314
Total Cash and Investments $151,476,043
Source: The above GASB 72 Classifications in the different input levels are provided by US Bank. (a)
(b)
(c)
(d) This pertains to the City-owned bonds of its investments in Pt. San Pedro Special Assessment District that has no trading market and is thus listed under Level 3. This bond is valued using discounted cash flow techniques.

District's Total Cash and Investments
Level 1 inputs are quoted prices in active market for identical assets. These are quoted prices in active markets for identical assets at the measurement date. An active market for the asset is a market in which transactions for the asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 inputs are significant other observable inputs. These inputs include: a) Quoted prices for similar assets in active markets; b) Quoted prices for identical or similar assets in markets that are not active; and c) Inputs other than quoted prices that are observable for an asset.

Level 3 inputs are significant unobservable inputs. These inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset at the measurement date.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
F. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City also manages its interest rate risk by holding most investments to maturity, thus reversing unrealized market gains and losses.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date:
12 Months More than
Type of Investment or Less 12 Months Total
City:

Money Market Funds $787,168 $787,168
Local Agency Investment Fund 48,843,399 48,843,399
Marin County Investment Pool 81,400 81,400
U.S. Government Obligations 7,739,810 $11,567,855 19,307,665 Federal Agency Securities and Instruments 4,665,547 6,338,462 11,004,009 Medium-Term Corporate Notes 1,986,625 11,238,186 13,224,811 Investment in Pt. San Pedro Bonds 1,134,017 1,134,017
Total Investments $64,103,949 $30,278,520 94,382,469
Cash in banks and on hand 9,834,570
Total City Cash and Investments 104,217,039
Fiduciary:

Cash in banks 394,690
Total Fiduciary Cash 394,690
Total City and Fiduciary Cash and Investments 104,611,729 San Rafael Sanitation District:

Marin County Investment Pool 46,864,314
Total District's Cash and Investments 46,864,314
Total Cash and Investments $151,476,043
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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more.

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, 2022, these investments matured in an average of 311 days.

Money Market Mutual Funds are available for withdrawal on demand. The investment portfolio of the Money Market Mutual Fund had an average maturity of 12 days at June 30, 2022.

The County’s investment pool is not registered with the Securities and Exchange Commission as an investment company. The pool has a credit rating of “AAA/V1.” Investments made by the Treasurer are regulated by the California Government Code and by the County’s investment policy. The objectives of the policy are in order of priority, safety, liquidity, yield, and public trust. The County has established a treasury oversight committee to monitor and review the management of public funds maintained in the investment pool in accordance with Article 6 Section 27131 of the California Government Code. The oversight committee and the Board of Supervisors review and approve the investment policy annually. The County Treasurer prepares and submits a comprehensive investment report to the members of the oversight committee and the investment pool participants every month.

The report covers the types of investments in the pool, maturity dates, par value, actual costs, and fair value.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
G. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of June 30, 2022, for each of the City’s or District’s investment types as provided by Standard and Poor’s or Moody’s investment rating systems, except as noted:

Percentage
Amount of
Investments Invested Investments NRSRO Rating
City:

Money Market Funds $787,168 1% AAAm
Marin County Investment Pool 81,400 < 1% AAA/V1
U.S. Government Obligations 19,307,665 20% AA+/Aaa
Federal Agency Securities and Instruments 11,004,009 12% AA+/Aaa Medium-Term Corporate Notes 13,224,811 14% AA+, AA, AA-, A+, A-/ Aaa, Aa2, Aa3, A1, A2, A3
Local Agency Investment Fund 48,843,399 52% Not Rated
Investment in Pt. San Pedro Bonds 1,134,017 1% Not Rated Total City Investments 94,382,469
San Rafael Sanitation District:

Marin County Investment Pool 46,864,314 AAA/V1
Total Investments $141,246,783
H. Concentration Risk
Investments in the securities of any individual issuers, other than U.S. Treasury securities, mutual funds, and external investment pools, that represent 5% or more of the total entity–wide investments are as follows at June 30, 2022:

Issuer Investment Type Amount
Federal National Mortgage Association Federal Agency Securities and Instruments $4,721,114

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 3 – INTER-FUND TRANSACTIONS
A. Transfers
Resources may be transferred from one City fund to another. Transfers routinely fund capital projects or capital outlays, lease or debt service payments, and operating expenses.

Transfers between funds during the fiscal year ended June 30, 2022, were as follows:

From Fund To Fund Amount
General Fund Essential Facilities Capital Projects Fund $714,885 (A) Non-Major Governmental Funds (B) 2,259,000
Traffic and Housing Mitigation Special Revenue Fund Gas Tax Special Revenue Fund 1,190,000 (C) Gas Tax Special Revenue Fund General Fund 635,000 (D)
Parking Services Enterprise Fund General Fund 436,209 (E) Non-Major Governmental Funds 85,000 (B)
Equipment Replacement Internal Service Fund Gas Tax Special Revenue Fund 122,000 (C) Employee Retirement Internal Service Fund General Fund 683,813 (E) Non-Major Governmental Funds Essential Facilities Capital Projects Fund 307,313 (A) Non-Major Governmental Funds 8,544 (C)
$6,441,764
(A) Transfers for Public Safety Center Projects.
(B) Transfers for administrative costs, grant matching, recreation, and other program support. (D) Transfers for street maintenance support and administrative costs. (E) Transfers for debt service.
(C) Transfers for project support.

NOTE 4 – LOANS AND LEASES RECEIVABLE
A. Summary of Loans Receivable
The City has identified the portion of fund balance represented by these loans as nonspendable or restricted as discussed in Note 8. As of June 30, 2022, these loans consisted of the following:

Employee Loans $747
Centertown Associates 920,826
One "H" Street Associates 31,431
Vivalon Loan 1,825,000
Total $2,778,004
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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 4 – LOANS AND LEASES RECEIVABLE (Continued)
B. Employee Loans
The City administers a computer loan program that supports the use of technology by employees.

Employees are permitted to borrow up to $1,500 for the purchase of computer hardware and software. The loans are interest-free, have maximum terms of one year, and are repaid through automatic payroll deductions. As of June 30, 2022, the balance of the employee loans receivable was $747.

C. Centertown Associates Loan
On August 20, 1990, the former Redevelopment Agency loaned Centertown Associates, Ltd, $303,000 at 3% interest due semiannually. The loan was made for the construction of a 60-unit affordable Centertown apartment complex and was fully secured by a deed of trust. The final payment is due on July 31, 2065. With the dissolution of the Redevelopment Agency effective February 1, 2012, the assets of the Agency’s Low and Moderate Income Housing Fund, including the Centertown Associates loan, were assumed by the City’s Low and Moderate Income Housing Special Revenue Fund. On October 22, 2021, City Council approved the Amended and Restated Promissory Note for the loan. The amendment extended the due date to October 22, 2078, for the original loan balance of $266,781 consisting of $219,982 in remaining principal and $46,799 in accrued interest as of the date of the amended loan agreement. In addition, the amendment included an additional loan in the amount of $643,095 for a ground lease for certain land located at 855 C Street, currently improved with approximately sixty units of affordable housing. Interest is compounded at 1.74% annually and is repayable from residual receipts as defined under the agreement. Repayment is due on October 22, 2078. The amended note is secured by a Leasehold Deed of Trust with Assignment of Rents and Security Agreement on the Property. As of June 30, 2022, the balance of the loan including principal and accrued interest was $920,826.

D. One “H” Street Associates Loan
On January 18, 1994, the City loaned One “H” Street Associates $100,000 at zero percent interest with annual payments of $2,857 and the final payment is due January 18, 2034. As of June 30, 2022, the balance of this loan was $31,431.

E. Vivalon Loan
On April 1, 2022, the City entered into a loan agreement in the amount of $1,825,000 to fund construction of the Vivalon Healthy Aging Center located at 999 3rd Street. Interest is due annually at 3% during the construction phase. The site will include 66 one-bedroom and studio units for older adults and approximately 20% of the units will be supportive housing. The term is the later of (a) the fifty-seventh anniversary of the date the Deed of Trust is recorded in the Recorder’s Office of Marin County or (b) the fifty-fifth anniversary of the date on which construction financing is converted into permanent financing. Annual payments equal to the City’s proportionate share of residual receipts attributable to the prior calendar year are due beginning June 1st after the end of the calendar year that the construction loan for the property converts to a permanent loan. The note is secured by a Deed of Trust. As of June 30, 2022, the balance of the loan was $1,825,000.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 4 – LOANS AND LEASES RECEIVABLE (Continued)
F. Other Receivables – Long-Term Receivable from San Rafael Sanitation District The City provides staffing to San Rafael Sanitation District (District) under a contractual arrangement originated in 1987 that requires the District to pay all related employee costs incurred by the City on its behalf. Accordingly, the cost of providing pension and postemployment health benefits incurred by the City for the District staff but not yet funded are reflected by the District as an obligation, and by the City as a noncurrent receivable. The obligation as of June 30, 2022, is $3,324,061, and is composed of the following:

Defined benefit pension liability allocation $2,658,961 Other post-employment benefit liability allocation 665,100 Total long-term receivable from San Rafael Sanitation District $3,324,061 G. Leases Receivable
The City from to time to time engages in lease arrangements allowing the right for others to use various owned land and buildings for the public benefit. As of June 30, 2022, these leases and related deferred inflows of resources consisted of the following:

Deferred
Leases Inflows of
Receivable Resources
Marin History Museum $54,319 $52,892
Yacht Club 201,806 197,737
Trans Bay Cable 301,504 292,721
Total $557,629 $543,350
On August 1, 2021, the City began leasing a building to the Marin History Museum with monthly payments of $1,200 - $1,260 through July 1, 2026. The City recognized $11,874 in lease revenue and $2,753 in interest revenue during the current fiscal year related to this lease. Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term.

On April 1, 2014, the City began leasing property to the San Rafael Yacht Club. The lease was extended during fiscal year 2022 and lease payments are due annually with an initial amount of $28,699 commencing March 31, 2022. Lease payments are to be increased by 5% every two years thereafter, until the end of the lease on March 31, 2029. The City recognized $28,248 in lease revenue and $4,520 in interest revenue during the current fiscal year related to this lease.

Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 4 – LOANS AND LEASES RECEIVABLE (Continued)
On January 1, 2007, the City began leasing land to a third party for a cable operation. Lease payments are due annually with an initial amount of $33,500 commencing March 31, 2022. Lease payments are to be increased by 3% every year thereafter, until the end of the lease on January 1, 2031. The City recognized $32,525 in lease revenue and $9,757 in interest revenue during the current fiscal year related to this lease. Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term.

NOTE 5 – CAPITAL ASSETS
Changes in capital assets during the fiscal year consisted of:

Balance
June 30, 2021 Balance
(as restated) Additions Retirements Transfers June 30, 2022 Governmental Activities
Capital assets not being depreciated:

Land $83,662,359 $368,000 ($4,700) $84,025,659
Construction in progress 24,616,957 18,861,107 ($20,992,844) 22,485,220 Total capital assets not being depreciated 108,279,316 19,229,107 (4,700) (20,992,844) 106,510,879 Capital assets being depreciated:

Land improvements 9,762,567 9,762,567
Buildings and structures 119,165,142 119,165,142
Machinery and equipment 21,145,959 132,904 (820,929) 39,147 20,497,081 Infrastructure 213,601,501 3,360 20,953,697 234,558,558 Intangible right-to-use leased building 5,476,219 5,476,219 Intangible right-to-use leased equipment 258,365 258,365 Total capital assets being depreciated 369,409,753 136,264 (820,929) 20,992,844 389,717,932 Less accumulated depreciation for:

Land improvements (7,137,860) (213,705) (7,351,565)
Buildings and structures (24,163,745) (2,894,246) (27,057,991) Machinery and equipment (14,743,393) (1,136,975) 772,664 (15,107,704) Infrastructure (146,572,481) (4,973,490) (151,545,971)
Intangible right-to-use leased building (156,463) (156,463) Intangible right-to-use leased equipment (80,740) (80,740) Total accumulated depreciation (192,617,479) (9,455,619) 772,664 (201,300,434) Total net capital assets being depreciated 176,792,274 (9,319,355) (48,265) 20,992,844 188,417,498 Total governmental activity capital assets $285,071,590 $9,909,752 ($52,965) $294,928,377 During fiscal year 2022, the City implemented the provisions of GASB Statement No. 87, Leases, which required the restatement of capital assets, specifically to incorporate an intangible right-touse leased building and right-to-use leased equipment. As a result, initial intangible right-to-use lease assets were recorded in the amounts of $5,476,219 and $258,365, respectively, as of July 1, 2021. The lease assets are offset with lease liabilities as discussed in Note 14.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 5 – CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2021 Additions June 30, 2022
Business-type Activities
Capital assets not being depreciated:

Land $8,620,853 $8,620,853
Total capital assets not being depreciated 8,620,853 8,620,853 Capital assets being depreciated:

Buildings and structures 10,713,814 10,713,814
Machinery and equipment 940,164 940,164
Total capital assets being depreciated 11,653,978 11,653,978 Less accumulated depreciation for:

Buildings and structures (3,921,410) ($205,363) (4,126,773) Machinery and equipment (848,219) (19,109) (867,328)
Total accumulated depreciation (4,769,629) (224,472) (4,994,101) Total net capital assets being depreciated 6,884,349 (224,472) 6,659,877 Total business-type activity capital assets $15,505,202 ($224,472) $15,280,730 Balance Balance
June 30, 2021 Additions Transfers June 30, 2022
San Rafael Sanitation District
Capital assets not being depreciated:

Land and easements $115,329 $115,329
Construction in progress 4,037,237 $2,546,213 ($5,761,041) 822,409 Total capital assets not being depreciated 4,152,566 2,546,213 (5,761,041) 937,738 Capital assets being depreciated:

Subsurface lines 41,910,303 510,563 3,073,641 45,494,507 Sewage collection facilities 45,073,165 155,048 2,687,400 47,915,613 General plant and administration 2,365,939 742 2,366,681 Total capital assets being depreciated 89,349,407 666,353 5,761,041 95,776,801 Less accumulated depreciation for:

Subsurface lines (13,538,918) (610,363) (14,149,281)
Sewage collection facilities (23,683,812) (1,614,777) (25,298,589) General plant and administration (1,564,017) (135,203) (1,699,220) Total accumulated depreciation (38,786,747) (2,360,343) (41,147,090) Total net capital assets being depreciated 50,562,660 (1,693,990) 5,761,041 54,629,711 Total District's capital assets $54,715,226 $852,223 $55,567,449 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.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 5 – CAPITAL ASSETS (Continued)
Depreciation Allocation – Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program are as follows:

Governmental Activities
General government $108,142
Public safety 886,474
Public works and parks 6,309,621
Community development 51,993
Culture and recreation 757,344
Internal service funds 1,342,045
Total Governmental Activities $9,455,619
Business-type Activities
Parking services $224,472
Total Business-type Activities $224,472
NOTE 6 – LONG TERM DEBT
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt.

A summary of governmental and business-type activities transactions for the fiscal year ended June 30, 2022, are as follows:

Authorized Balance Balance Current
and Issued June 30, 2021 Additions Retirements June 30, 2022 Portion Governmental Activities Bonds:
2018 Authority Lease Revenue Bonds

4.00%-5.00%, due 6/1/2034 $45,485,000 $43,575,000 $2,070,000 $41,505,000 $2,240,000 Add: unamortized bond premium 6,603,265 507,943 6,095,322 2010 Taxable Pension Obligation Bonds

6.00%-6.25%, due 7/1/2025 4,490,000 2,845,000 505,000 2,340,000 535,000 Total Governmental Activities Bonds 53,023,265 3,082,943 49,940,322 2,775,000 Governmental Activities - Direct Borrowings:

PG & E City Hall HVAC Retrofit Note Payable

0.00%, due 11/30/2023 334,585 79,438 33,280 46,158 33,280 PG & E CEC Efficiency Note Payable

1.00%, due 12/22/2026 1,104,799 826,313 146,889 679,424 148,362 PG & E Energy Efficient Lighting Project Note Payable

0.00% due 1/20/30 174,036 $174,036 9,064 164,972 21,755 Total Governmental Activities - Direct Borrowings 905,751 174,036 189,233 890,554 203,397 Total Governmental Activities Debt $53,929,016 $174,036 $3,272,176 $50,830,876 $2,978,397 Business-type Activities:

Direct Borrowing:

PG & E Parking Lot Lighting Retrofit Note Payable

0.00%, due 11/30/2023 66,380 $14,123 $6,818 $7,305 $6,816 2012 Authority Lease Revenue Refunding Bonds

2.00-4.00%, due 4/1/2033 6,750,000 4,325,000 300,000 4,025,000 310,000 Less: unamortized bond discount (8,522) (725) (7,797)
Total Business-type Activities Bonds 4,316,478 299,275 4,017,203 310,000 Total Business-type Activities $4,330,601 $306,093 $4,024,508 $316,816 DRAFT DRAFT REVIEW DRAFT 11-7-22 64 DRAFT

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 6 – LONG-TERM DEBT (Continued)
A. 2018 Authority Lease Revenue Bonds
On March 5, 2018, the Authority issued 2018 Authority Lease Revenue Bonds in the amount of $45,485,000 bearing interest at rates from 4.00% to 5.00%. The proceeds of the bonds were provided for replacement of two fire stations and construction of a public safety center. The Authority has pledged revenue pursuant to a site and facility lease between the City and the Authority for the public safety center. The lease rental payments are due semi-annually and are in an amount sufficient to make payments on the Bonds. Interest on the Bonds is payable semiannually on June 1 and December 1. Principal payable on the Bonds will be paid on June 1 starting on June 1, 2021. The Bonds maturing on or prior to June 1, 2028, are not subject to optional redemption prior to their maturity. The Bonds maturing on or after June 1, 2029, are subject to optional redemption as a whole or in part on any date after June 1, 2028, at the option of the Authority, at a redemption price equal to the principal amount of the Bonds subject to redemption, plus accrued interest to the date fixed for redemption, without premium.

The Bonds are payable from any source of available funds of the City. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City.

B. 2010 Taxable Pension Obligation Bonds
On July 1, 2010, the City issued 2010 Taxable Pension Obligation Bonds in the amount of $4,490,000 bearing interest at rates from 6.00% to 6.25%. Principal payments are due annually on July 1 and interest is payable semiannually on January 1 and July 1. The Bonds were issued to prefund a portion of the obligations of the City to the Marin County Employees’ Retirement Association. Payment of the principal and interest on the Bonds is not limited to any special source of funds and is payable from any legally available moneys of the City. The City is not empowered or obligated to levy or pledge taxes to make payments on the Bonds. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur:
default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City.

C. Pacific Gas and Electric Notes Payable
PG&E HVAC and Lighting Retrofit
On September 30, 2013, the City executed a note payable agreement with Pacific Gas and Electric (PG&E) in the amount of $634,861, which does not bear interest. The debt was assumed as a means to finance energy-efficient retrofit projects which include updating the existing heating, ventilation, and air conditioning (HVAC) unit in City Hall and converting the street and parking lot lights to light emitting diode (LED). $334,585 of the loan is for the HVAC projects and $300,276 of the loan is for the LED projects. Repayment of the loan commenced in December 2013, and is due monthly until paid in full in 2023.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 6 – LONG-TERM DEBT (Continued)
PG&E CEC Efficiency
On September 5, 2017, City Council approved the execution of a note payable agreement with PG&E in an amount up to $1,178,813, bearing interest at 1%. The debt was assumed as a means to finance the execution of various energy efficiency system upgrades to City facilities and street lights. The upgrades included interior and exterior lighting upgrades and energy management control systems. The City made the final draw on the loan and the final loan obligation was $1,104,799. Payments commenced in December 2019, and are due semi-annually until paid in full in December 2026.

PG&E Energy Efficient Lighting Project
On September 20, 2021, the City executed a note payable agreement with PG&E in the amount of $174,036, which does not bear interest. The debt was assumed as a means of financing energy efficient lighting for the Al Boro recreation center and the department of Public Works building.

Repayment of the loan commenced in February 2022 and payments are due monthly until paid in full in January 2030.

D. 2012 Authority Lease Revenue Refunding Bonds
On August 7, 2012, the Authority issued 2012 Authority Lease Revenue Refunding Bonds in the amount of $6,750,000 bearing interest at rates from 2.00% to 4.00%. The proceeds of the Series 2012 Bonds were used to repay the Authority’s 2003 Authority Lease Revenue Bonds that financed the construction of the 3rd and C Street parking structure and achieved lower interest rates and lower annual debt service payments. The refunding resulted in a net present value savings to the City in debt service of $670,496. In addition, the requisition price exceeded the net carrying amount of the old debt by $295,278. The Series 2012 Bonds are payable from lease payments made by the City to the Authority for leasing the City facilities. The rights to these lease payments have been irrevocably transferred by the Authority to the Trustee. Activities related to the Series 2012 Bonds are reported in the Parking Services Enterprise Fund. Principal payments are due annually on April 1 and interest is payable semiannually on October 1 and April 1. The Bonds maturing on or prior to April 1, 2022, are not subject to optional redemption prior to their maturity. The Bonds maturing on or after April 1, 2023, are subject to optional redemption as a whole or in part on any date after April 1, 2022, at the option of the Authority, at a redemption price equal to the principal amount of the Bonds subject to redemption, plus accrued interest to the date fixed for redemption, without premium.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 6 – LONG-TERM DEBT (Continued)
E. Future Debt Service
Future debt service requirements, including interest, at June 30, 2022, are as follows:

Governmental Activities
For the Year Bonds Direct Borrowings
Ended June 30 Principal Interest Principal Interest
2023 $2,775,000 $2,204,781 $203,397 $6,425
2024 3,000,000 2,058,406 184,469 4,951
2025 3,245,000 1,900,250 173,106 3,436
2026 3,510,000 1,729,256 174,623 1,919
2027 3,105,000 1,565,750 98,761 386
2028 - 2032 19,555,000 5,240,250 56,198
2033 - 2034 8,655,000 624,250
Totals 43,845,000 $15,322,943 890,554 $17,117
Reconciliation of Long-term debt:

Add: unamortized premium 6,095,322
$49,940,322 $890,554
Business-type Activities
For the Year Bonds Direct Borrowing
Ended June 30 Principal Interest Principal
2023 $310,000 $143,588 $6,816
2024 320,000 134,288 489
2025 330,000 124,288
2026 335,000 113,562
2027 350,000 102,256
2028 - 2032 1,945,000 314,412
2033 - 2034 435,000 17,400
Totals 4,025,000 $949,794 7,305
Reconciliation of Long-term debt:

Less: unamortized discount (7,797)
$4,017,203 $7,305
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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 7 – DEBT WITHOUT CITY COMMITMENT
A. Special Assessment Debt Without City Commitment
Special assessment districts have been established in various parts of the City to provide improvements to properties located in those districts. Properties in these districts are assessed for the cost of improvements; these assessments are payable solely by property owners over the term of the debt issued to finance these improvements. The City is not legally or morally obligated to pay these debts or be the purchaser of last resort of any foreclosed properties in these special assessment districts, nor is it obligated to advance City funds to repay these debts in the event of default by any of these districts. The City does act as an agent for the property owners and bondholders and at June 30, 2022, the balances of these Districts’ outstanding debt were as follows:

Project Original Outstanding
Description Amount June 30, 2022
Pt. San Pedro Road Median Landscaping Pt. San Pedro Road Assessment District Limited Obligation Bonds-2012 Median Landscaping $1,750,000 $1,159,300 B. Conduit Debt
The City has assisted private-sector entities by sponsoring their issuance of debt for purposes the City deems to be in the public interest. These debt issues are secured solely by the property financed by the debt. The City is not legally or morally obligated to pay these debts or be the purchaser of last resort of any foreclosed properties secured by these debts, nor is it obligated to advance City funds to repay these debts in the event of default by any of these issuers. At June 30, 2022, the balance of this issuers’ outstanding debt was as follows:

Project Original Outstanding
Description Amount June 30, 2022
San Rafael Redevelopment Agency 162-175 Belvedere
Multifamily Housing Revenue Bonds-2000A Apartments $3,590,529 $846,020 California Statewide Communities
Development Authority Revenue Bonds-2001 St. Marks School 5,605,000 2,335,000 San Rafael Redevelopment Agency San Rafael Commons
Multifamily Housing Revenue Bonds-2002 Apartments 6,100,000 4,105,000 San Rafael Redevelopment Agency
Multifamily Housing Revenue Bonds-2007 Series A Martinelli House Project 6,000,000 1,676,396 Multifamily Housing Revenue Bonds-2007 Series B Martinelli House 1,000,000 122,650 Total $22,295,529 $9,085,066

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 8 – NET POSITION AND FUND BALANCE
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net Position is divided into three captions. These captions apply only to Net Position, which is determined only at the Governmentwide level and business type activity and are described below:

Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of Net Position which is restricted to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter.

Unrestricted describes the portion of Net Position which is not restricted to use.

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 generally accepted accounting principles, which require 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, loans receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.

Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose. Nonspendable amounts subject to restrictions are included along with spendable resources.

Committed fund balances have constraints imposed by resolution of the City Council which may be altered only by resolution of the City Council. Nonspendable amounts subject to Council commitments are included along with spendable resources.

Assigned fund balances are amounts constrained by the City’s intent that they be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Manager, as designated by the City Council, and may be changed at the discretion of the City Council or City Manager. This authorization is given through Resolution No. 13173 which adopted the City’s Fund Balance Policy.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
This category includes nonspendables, when it is the City’s intent to use proceeds or collections for a specific purpose; and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.

Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual General Fund balance and residual fund deficits, if any, of other governmental funds.

Detailed classifications of the City’s fund balances, as of June 30, 2022, are below:

Capital Project
Funds
General Fund
Traffic and
Housing
Mitigation Gas Tax
Essential Facilities
Capital Projects
Fund
Other
Governmental
Funds Total
Fund balances:

Nonspendable:

Prepaids $95,279 $89,761 $185,040
Total Nonspendable 95,279 89,761 185,040
Restricted for:

Assessment District capital projects 305,142 305,142
Baypoint Lagoons Assessment District 204,245 204,245
Bedroom tax capital projects 130,150 130,150
Childcare 344,552 344,552
Development services 349,645 349,645
Emergency medical services 742,839 742,839
Street improvements and Maintenance (Gas Tax) $6,918,267 6,918,267 Grant funded programs 396,202 396,202
Household hazmat facility 511,631 511,631
Library 3,087,520 3,087,520
Library assessment 959,651 959,651
Loch Lomond Assessment District 771,508 771,508
Loch Lomond Assessment District #2 736,909 736,909
Low and Moderate Income Housing 1,872,570 1,872,570
Measure A - Open space 780,956 780,956
Measure C - Wildlife Prevention 803,182 803,182
Measure E - Public Safety Facility $9,317,312 9,317,312 Measure G - Cannabis 968,251 968,251
Parkland dedication 343,740 343,740
Public safety 133,083 133,083
Pt. San Pedro- Maintenance Portion 140,036 140,036
Recreation revolving 484,552 484,552
Stormwater 1,269,705 1,269,705
Traffic and housing mitigation $4,871,871 4,871,871
Total Restricted 4,871,871 6,918,267 9,317,312 15,336,069 36,443,519 Committed to:

Capital improvement capital projects 1,496,419 1,496,419 Emergency and cash flow 9,415,000 9,415,000
Park capital projects 17,936 17,936
Total Committed 9,415,000 1,514,355 10,929,355
Assigned to:

Contractual commitments 4,027,421 4,027,421
One-time funds allocated to capital projects 14,971,510 14,971,510 Capital Project grant matching 3,449,733 3,449,733
Infrastructure Reserve 600,000 600,000
General plan / long range planning 1,222,176 1,222,176
Open space capital projects 117,755 117,755
Total Assigned 24,270,840 117,755 24,388,595
Total Fund Balances $33,781,119 $4,871,871 $6,918,267 $9,317,312 $17,057,940 $71,946,509 Special Revenue Funds

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
C. Minimum Fund Balance Policy
The City Council adopted a General Fund Reserve Policy in November 2014 to establish target reserve levels and the methodology for calculating reserve levels. The Policy also establishes criteria for the use of reserves and a process to replenish reserves.

The Policy requires the City to strive to maintain the following fund balances:
1) Emergency and Cash Flow Reserve (10% minimum)
An emergency and cash flow reserve will be maintained for the purposes of (1) sustaining General Fund operations in the case of a public emergency, such as a natural disaster or other unforeseen catastrophic event; and (2) to cover sudden operating shortfalls caused by (a) a severe drop in revenues that cannot be sufficiently offset by a corresponding reduction in expenditures and/or other available resources, or (b) an unforeseen, unavoidable expenditure that must be paid from the General Fund.

This reserve level is measured as a percentage of annual operating expenditures. Budgeted operating expenditures are to be used for the purposes of budget allocations and projections, and actual operating expenditures are to be used for the purpose of measuring this reserve at fiscal year-end. This reserve may be expended only when the City Council determines by resolution that such action is consistent with the purpose and intent of this policy.

In the event the balance in the Emergency and Cashflow Reserve falls below the minimum level, the City Manager, shall recommend a plan to replenish the fund within a timeframe not to exceed three years. This recommendation shall be approved by the City Council no later than the time at which the next annual budget is adopted. Any variance from the stipulations established within this policy shall require approval by the City Council along with a statement of findings supporting the temporary or ongoing modification to this policy.

The required reserve was $9,415,000 at June 30, 2022, and the balance of the reserve, included in the General Fund’s committed fund balance was $9,415,000 at that date. 2) Other Facilities and Infrastructure
The purpose of the assigned infrastructure reserve is to accumulate funds to be used for the purpose of non-public safety facility construction and major improvements (e.g., library, administrative and non-safety buildings, streets, and the stormwater system). This was $600,000 at June 30, 2022.

The General Plan/Long Range Planning reserve included in the General Fund’s assigned fund balance was $1,222,176 at June 30, 2022, which is specifically assigned to the City’s General Plan, a state required plan that must address eight topic areas – Neighborhoods, Community Design, Economic Vitality, Infrastructure, Governance, Culture and Arts, Parks and Recreation and Air and Water Quality.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 9 – PENSION PLAN
A. Plan Description
The City’s defined benefit retirement plan is administered by the Marin County Employees’ Retirement Association (MCERA), a retirement system established in July 1950 and governed by the California Constitution; the County Employees Retirement Law of 1937 (CERL or 1937 Act, California government Code Section 31450 et seq.); the Public Employees’ Pension Reform Act of 2013 (PEPRA, Government Code Section 7522); the provisions of California Government Code Section 7500 et seq; and the bylaws, procedures, and policies adopted by MCERA’s Board of Retirement. The Marin County Board of Supervisors may also adopt resolutions, as permitted by the CERL and PEPRA, which may affect the benefits of MCERA members.

MCERA operates as a cost-sharing multiple employer defined benefit plan for the City and eight other participating employers: County of Marin, Local Agency Formation Commission (LAFCO), Marin City Community Services District, Marin County Superior Court, Marin/Sonoma Mosquito and Vector Control District, Novato Fire Protection District, Southern Marin Fire Protection District and Tamalpais Community Services District. Separate actuarial valuations are performed for these other agencies and districts, and the responsibility for funding their plans rest with those entities. Post-retirement benefits are administered by MCERA to qualified retirees.

Copies of MCERA’s annual financial reports, which include required supplementary information (RSI) for the plan may be obtained from their office at One McInnis Parkway, Suite 100, San Rafael, CA 94903 or online at www.mcera.org.

B. Benefit Provisions
Service Retirement: MCERA’s service retirement benefits are based on the years of credited service, final average compensation, and age at retirement, according to the applicable statutory formula. Members who qualify for service retirement are entitled to receive monthly retirement benefits for life.

General members hired prior to January 1, 2013, are eligible to retire once they attain the age of 50 (except Misc. Tier 2, whereby the minimum age is 55) and have acquired 10 or more years of retirement service credit. A member with 30 years of service is eligible to retire regardless of age.

A member who is age 70 or older is eligible to retire regardless of service credit. General members who are first hired on or after January 1, 2013, are eligible to retire once they have attained the age of 52, and have acquired 5 years of retirement service credit, or age 70, regardless of service.

Safety members hired prior to January 1, 2013, are eligible to retire once they attain the age of 50 and have acquired 10 or more years of retirement service credit. A member with 20 years of service is eligible to retire regardless of age. A member who is age 70 or older is eligible to retire regardless of service. Safety members who are first hired on or after January 1, 2013, are eligible to retire once they have attained the age of 50, and have acquired 5 years of retirement service credit, or age 70, regardless of service.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 9 – PENSION PLAN (Continued)
Disability Retirement: A member with five years of service, regardless of age, who becomes permanently incapacitated for the performance of duty is eligible to apply for a non-service connected disability retirement. Any member who becomes permanently incapacitated for the performance of duty as a result of injury or disease arising out of and in the course of employment is eligible to apply for a service-connected disability retirement, regardless of service length or age.

Death Benefits: MCERA provides specified death benefits to beneficiaries and members’ survivors. The death benefits provided depend on whether the member is active or retired. The basic active member death benefit consists of a members’ retirement contributions plus interest plus one month’s pay for each full year of service (up to a maximum of six month’s pay).

Retiring members may choose from five retirement benefit payment options. Most retirees elect to receive the unmodified allowance which provides the maximum benefit to the retiree and continuance of 60% of the retiree’s allowance to the surviving spouse or registered domestic partner after the retiree’s death. Other death benefits may be available based on the years of service, marital status, and whether the member has minor children.

Cost of Living Adjustment: Retirement allowances are indexed for inflation. Most retirees receive automatic basic cost of living adjustments (COLA’s) based upon the Urban Consumer Price Index (UCPI) for the San Francisco Bay Area. These adjustments go into effect on April 1 of each year. Annual COLA increases are statutorily capped at 2%, 3%, or 4% depending upon the member’s retirement tier. When the UCPI exceeds the maximum statutory COLA for the member’s tier, the difference is accumulated for use in future years when the UCPI is less than the maximum statutory COLA. The accumulated percentage carryover is known as the COLA Bank.

C. Funding Policy
The funding policy of MCERA provides for actuarially determined periodic contributions by the City at rates such that sufficient assets will be available to pay plan benefits when due. The employer rates for normal cost are determined using the Entry Age Normal Actuarial Cost Method, which takes into account those benefits that are expected to be earned in the future as well as those already accrued.

The City contribution rates for the year ended June 30, 2022 were as follows:

Employer Employee
Contribution Rate Contribution Rate Benefit Basis
City of San Rafael Misc Tier 1 54.22% 0.00% - 16.13% 2.7% @ 55 Highest year City of San Rafael Misc Tier 2 53.61% 7.34% - 11.76% 2.0% @ 55 Average three highest years City of San Rafael Fire Tier 1 77.38% 13.21% - 19.59% 3.0% @ 55 Highest year City of San Rafael Fire Tier 2 76.81% 11.40% - 17.36% 3.0% @ 55 Average three highest years City of San Rafael Safety Police Tier 1 77.56% 13.21% - 19.59% 3.0% @ 55 Highest year City of San Rafael Safety Police Tier 2 79.66% 11.40% - 17.36% 3.0% @ 55 Average three highest years PEPRA Misc 47.73% 9.71% 2.0% @ 62 Average three highest years PEPRA Safety 67.41% 14.99% 2.7% @ 57 Average three highest years

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 9 – PENSION PLAN (Continued)
These rates were determined by MCERA, based on the actuarial valuation dated June 30, 2020.

The actual rate of return on investments during that year was 3.48% on a market value basis net of investment expenses, as compared to the prior year’s 7% assumption.

The City uses the actuarially determined percentages of payroll to calculate and pay contributions to MCERA. Contributions to the plan from the City were $21,859,307 for the year ended June 30, 2022, based on a total payroll of $47,190,217, of which $34,418,052 represented the basis for the plan contributions. Of the total payroll subject to plan contributions, $1,402,799 is attributable to the San Rafael Sanitation District (SRSD), a component unit of the City.

Effective with the June 30, 2013, valuation, the Unfunded Actuarial Liability (UAL) as of June 30, 2013, is being amortized over a closed 17-year period (10 years remaining as of June 30, 2020), except for the additional UAL attributable to the outstanding unfunded actuarial loss from 2009, which is being amortized over a separate closed period (currently 18 years).

Effective with the June 30, 2014 valuation, any new sources of UAL due to actuarial gains and losses or method changes are amortized over a closed 24-year period, with a 5-year ramp up period at the beginning of the period, a 4-year ramp down at the end of the period, and 15 years of level payments as a percentage of payroll between the ramping periods. This amortization method for gains and losses is similar to a 20-year amortization period with level payments as a percentage of payroll, in conjunction with a traditional 5-year asset smoothing.

Assumption changes are amortized over a closed 22-year period, with a 3-year ramp up period, 2- year ramp down period, and 17 years of level payments as a percentage of payroll.

D. Net Pension Asset and Pension Expense
The City’s net pension asset (NPA) has been determined for the financial reporting period ended June 30, 2022, based on the following methodology: The City’s NPA as of June 30, 2020, was updated to the measurement date of June 30, 2021 using the actual City’s plan assets as of June 30, 2021, and estimating the change in the City’s liabilities between July 1, 2020 and June 30, 2021. This estimate is based on a projection of the City’s long-term contributions to the pension plan relative to the projected contributions of all participating employers.

The resulting NPA for the City under this calculation is $48,176,309 or 29.665% of the total MCERA NPA of $162,401,177 (reference MCERA’s GASB 67/68 report as of June 30, 2021).

This compares to the previous year’s net pension liability of $157,279,576 or 34.3574% of the total MCERA net pension liability of $457,774,963 (reference MCERA’s GASB 67/68 report as of June 30, 2020).

In addition to the reporting of the NPA as of June 30, 2022, the City reported deferred inflows of $164,252,572 and deferred outflows of $15,753,361 as of the measurement date June 30, 2021.

The City reported post-measurement date outflows of $21,859,307 from actual fiscal year 2021- 2022 pension contributions. Deferred outflows include deferred investment gains and adjustments to assumptions based on actual positive results. Deferred outflows have a positive impact on net assets (offsetting the net pension liability) and will be recognized in future reporting periods.

Deferred inflows include deferred investment losses, adjustments to assumptions based on actual negative results, and contributions made after the measurement date.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 9 – PENSION PLAN (Continued)
Deferred inflows have a negative impact on net assets (similar to the net pension liability) and will be recognized in future reporting periods. The net impact of these net pension asset related entries on the City’s Statement of Net Position before allocations to the San Rafael Sanitation District was $78,463,595. After allocations to the San Rafael Sanitation District, the net impact on the City’s Statement of Net Position was $75,804,634.

Under generally accepted accounting principles, the City’s pension expense is based on the Plan’s pension expense, adjusted for the City’s actual contributions and net pension liability (asset).

Three components are used to calculate pension expense: (1) changes in the net pension liability; (2) changes in benefit terms (if any): and (3) changes in actuarial assumptions and experience.

Pension expense is calculated using a different methodology than that used to derive the actuarially determined annual contribution to the Plan. Actual pension contributions during the reporting year were $21,859,307. Because pension expense is affected by annual changes in the net pension liability, volatility is to be expected. For the current measurement period, investment returns above the assumed rate were responsible for the decrease in net pension liability to a net pension asset and had a corresponding impact on pension expense.

The table below provides a summary of the key results during the reporting period:

Measurement Date Measurement Date
Description 6/30/2021 6/30/2020
Net Pension (Asset) Liability ($48,176,309) $157,279,576 Deferred Inflows 164,252,572 17,358,743
Deferred Outflows (15,753,361) (34,080,980)
Impact on Net Position before Deferred Outflows from Contributions 100,322,902 140,557,339 Additional Deferred Outflows - Contributions Subsequent to Measurement Date (21,859,307) (20,106,821) Impact on Statement of Net Position before Allocations 78,463,595 120,450,518 Allocation of Net Pension (Asset) Liability to SRSD (1,635,722) 5,026,185 Allocation of Deferred Inflows (measurement date) to SRSD 5,576,838 554,734 Allocation of Deferred Outflows (measurement date) to SRSD (534,871) (1,089,126) Impact on Net Position before Allocation of Deferred Outflows from Contributions to SRSD 3,406,245 4,491,793
Allocation of Additional Deferred Outflows (Contributions) to SRSD (747,284) (713,745) Long-Term Receivable from SRSD, due to pension obligations (see Note 4F) 2,658,961 3,778,048 Impact on Statement of Net Position, net of receivable from SRSD $75,804,634 $116,672,470 Pension (Revenue) Expense ($20,127,615) $25,009,310
Summary of Results
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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 9 – PENSION PLAN (Continued)
Projection of Total Pension Liability and Net Pension Liability Total Pension Liability (TPL) is the actuarial present value of projected benefit payments attributed to past periods of employee service. MCERA and the City have adopted a measurement date of June 30, 2021. The beginning of year measurement of TPL is based on the actuarial valuation as of June 30, 2020. The TPL at the end of the measurement year, June 30, 2021, is also measured as of the valuation date of June 30, 2020 and projected to June 30, 2021.

The Plan Fiduciary Net Position (FNP) is the fair or market value of assets. The FNP at the beginning of the year is based on the actuarial valuation as of June 30, 2020. The FNP at the end of the measurement year, June 30, 2021, is also measured as of the valuation date of June 30, 2020, and projected to June 30, 2021.

The Net Pension Liability (Asset) (NPL/NPA) is the City’s liability (asset) for benefits provided through its defined benefit plan administered by MCERA. It is calculated by reducing the TPL by the FNP. The long-term portion of the governmental activities’ NPL is liquidated primarily by the General Fund.

Actuarial assumptions:

The total pension liability as of June 30, 2021 (measurement date) was determined by an actuarial valuation as of June 30, 2020, using the following actuarial assumptions applied to all prior periods included in the measurement.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 9 – PENSION PLAN (Continued)
The key assumptions in the valuation were as follows:

Expected Return on Assets 6.75% per year, net of investment expenses Discount Rate 6.75% per year
Price Inflation 2.50% per year
Salary Increases 3.00% per year plus merit component based on employee classification and years of service.

Administrative Expenses Administrative expenses in the actuarial valuation are assumed to be $5 million for FY 2020-21, to be split between employees and employers based on their share of the overall contributions.

Administrative expenses shown in this report are based on the actual FY 2019-20 amounts.

Post-Retirement COLA Post-retirement COLAs are assumed at a rate of 2.5% for members with a 4% COLA cap, 2.4% for members with a 3% COLA cap, and

1.9% for members with a 2% COLA cap.

Mortality Rates for
Healthy Members
and Inactives
Mortality Rates for
Retired Disabled
Members
Mortality rates for Miscellaneous active members are based on the sex distinct Public General 2010 Employee Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale MP-2020, with no adjustments.

Rates of mortality for Miscellaneous disabled members are based on the sex distinct Public General 2010 Disabled Retiree Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale MP-2020, with no adjustments.

Rates of mortality for Safety disabled members are based on the sex distinct Public Safety 2010 Disabled Retiree Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale MP-2020, adjusted by 95% for males with no adjustment for females.

Changes of Assumptions
The discount rate decreased from 7.0% to 6.75% and price inflation decreased from 2.75% to

2.50%. Other changes included changes to the mortality, service retirement, disability and termination rates.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 9 – PENSION PLAN (Continued)
Asset Allocation Policy and Expected Long-Term Rate of Return by Asset Class The Board of Retirement has adopted an Investment Policy Statement (IPS), which provides the framework for the management of MCERA’s investments. The IPS establishes MCERA’s investment objectives and defines the principal duties of the Retirement Board, the custodian bank, and the investment managers. The asset allocation plan is an integral part of the IPS and is designed to provide an optimum and diversified mix of asset classes with return expectations to satisfy expected liabilities while minimizing risk exposure. MCERA currently employs external investment managers to manage its assets subject to the provisions of the policy. Plan assets are managed on a total return basis with a long term objective of achieving and maintaining a fully funded status for the benefits provided through the Plan.

The following was the Retirement Board’s adopted asset allocation policy as of June 30, 2021:

Long-Term
Expected Rate
Target Long-Term Expected of Return
Asset Class Allocation Real Rate of Return (with the effect of inflation) Domestic Equity 32% 4.60% 7.10%
International Equity 22% 4.80% 7.30%
Fixed Income 23% -0.25% 2.25%
Public Real Assets 7% 2.90% 5.40%
Real Estate 8% 3.75% 6.25%
Private Equity 8% 6.00% 8.50%
Cash and Short-Term Investments 0% -1.00% 1.50%
Total 100%
The Long-Term returns are calculated using a 10-year geometric return derived from arithmetic returns and the associated risk (standard deviation).

Determination of Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. Related to the discount rate is the funding assumption that employees will continue to contribute to the plan at the required rates and employers will continue the historical and legally required practice of contributing to the plan based on an actuarially determined contribution, reflecting a payment equal to annual normal cost, a portion of the expected administrative expenses, an amortization payment for the extraordinary losses from 2009 amortized over a closed period (18 years remaining as of the June 30, 2020 actuarial valuation), and an amount necessary to amortize the remaining Unfunded Actuarial Liability as a level percentage of payroll over a closed period (10 years remaining as of the June 30, 2020 actuarial valuation).

A change in the discount rate would affect the measurement of the TPL. A lower discount rate results in a higher TPL and higher discount rates results in a lower TPL. Because the discount rate does not affect the measurement of assets, the percentage change in the NPL can be significant for a relatively small change in the discount rate. A one percent decrease in the discount rate increases the TPL by approximately 13% and increase the NPL by approximately 259%. A one percent increase in the discount rate decreases the TPL by approximately 11% and decreases the NPL by approximately 213%.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 9 – PENSION PLAN (Continued)
The table below shows the sensitivity of the Net Pension Liability (Asset) to a one percent decrease and a one percent increase in the discount rate:
1% Discount 1%
Decrease Rate Increase
Description 5.75% 6.75% 7.75%
Total Pension Liability $1,083,821,676 $959,104,784 $856,399,657 Fiduciary Net Position 1,007,281,093 1,007,281,093 1,007,281,093 Net Pension Liability (Asset) $76,540,583 ($48,176,309) ($150,881,436)

92.9% 105.0% 117.6%
Fiduciary Net Position as a
Percentage of the Total Pension Liability
Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Pension Resources
The impact of experience gains or losses and assumption changes on the Total Pension Liability (TPL) are recognized in the proportionate share of the pension expense over the average expected remaining service life of all active and inactive members of the plan. As of the measurement date, this recognition period was 4 years.

The following tables show the current balance and sources of deferred outflows and inflows related to the City’s defined benefit retirement plan, and the scheduled recognition of these deferred amounts:

Deferred Deferred
Outflows of Inflows of
Description Resources Resources
Differences between expected and actual experience $5,463,897 Changes in assumptions 7,492,156
Change in proportion 2,797,308 $17,336,022
Difference between City contributions and proportionate share of contributions 8,395,761
Actual FY 21-22 contributions (post measurement date) 21,859,307 Net difference between projected and actual earnings
on pension plan investments 138,520,789
Deferred Inflows and Outflows Before Allocations $37,612,668 $164,252,572 Allocation of Deferred Inflows and Outflows to SRSD
As of measurement date $534,871 $5,576,838
Post-measurement date 747,284
Net Deferred Inflows and Outflows $36,330,513 $158,675,734 DRAFT DRAFT REVIEW DRAFT 11-7-22 79 DRAFT

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 9 – PENSION PLAN (Continued)
The $21,859,307 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Amortization
Year ended June 30 Amount
2023 ($37,818,939)
2024 (36,121,281)
2025 (35,717,833)
2026 (38,841,158)
Total ($148,499,211)
NOTE 10 – PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION

RETIREMENT PLAN)
The City contributes to the Public Agency Retirement System (PARS), which administers a defined contribution retirement plan. A defined contribution retirement plan provides retirement benefits in return for services rendered, provides an individual account for each participant, and specifies how contributions to the individual’s accounts are determined instead of specifying the amount of benefits the individual is to receive. The benefits a participant will receive depend on the amount contributed to the participant’s account, and the returns earned on investments on those contributions. The Plan’s trust administrator is Phase II, P.O. Box 12919, Newport Beach, California 92658.

As established by the plan, all eligible part-time and temporary employees of the City become participants in the plan from the date that they are hired. An eligible employee is any employee who, at any time during which the employer maintains this plan, is not accruing a benefit under the Marin County Employees’ Retirement Fund.

As determined by the plan, each employee must contribute 3.75% of gross earnings to the plan. The City contributes an additional 3.75% of the employee’s gross earnings. Contributions made by an employee and the employer vest immediately.

During the year, the City and employees each contributed $133,398. The total covered payroll of employees participating in the plan for the year ended June 30, 2022, was $3,557,279.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS
Plan Description
The City provides certain health care benefits for retired employees and their spouses under an Agent Multiple-Employer Defined Benefit Plan. The benefit provisions were established under the authority of the 1937 Act, Section 31450, et. seq. of the Government Code. Employees who meet the vesting criteria become eligible for these benefits if they receive a retirement benefit from the Marin County Employees’ Retirement Association within 120 days of retirement from City employment.

The provisions and benefits of the City’s Other Post Employment Benefit Plan, in effect at June 30, 2022, are summarized as follows:

Elected Officials, Mid-Management, & Unrepresented
Management All other Bargaining Units
Eligibility
- Age 50 (age 55 if hired > 7/1/11) with 10 years services (Including reciprocity) OR -
- Age 70
- Disability Retirement
Benefit Hired < 1/1/09 Full premium/cap Hired < 1/1/10 Up to cap Hired ≥ 1/1/09 PEMHCA Min Hired ≥ 1/1/10 PEMHCA Min
Surviving Spouse
Benefit Continuation to surviving spouse
Medicare Part B Hired < 4/1/07 Full reimbursement None
Hired ≥ 4/1/07 None
Other No Dental, Vision, or Life Benefits
Retire directly from the City:
30 years service (Miscellaneous), 20 years service (Safety) OR

Membership in the plan consisted of the following at June 30, 2021, the measurement date:

Active plan members 347
Inactive employees or beneficiaries currently
receiving benefit payments 371
Inactive employees entitled to but not yet
receiving benefit payments 80
Total 798
Funding Policy and Actuarial Assumptions
The City’s net OPEB liability was measured using a Total OPEB Liability and Fiduciary Net Position measured as of June 30, 2021, using an actuarial valuation as of June 30, 2021. The following actuarial assumptions were used in the valuation: (a) 6.25% investment rate of return and (b) 2.50% of general inflation increase, and (c) a healthcare trend of declining annual increases ranging from 6.50% in 2023 to 3.75% for the years starting 2076. In addition, the fixed dollar benefit amounts are assumed to be held flat in the future and the premium related benefits are assumed to increase with the healthcare trend rate.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2020 through June 30, 2021.

The long-term expected rate of return on OPEB plan investments was determined using a buildingblock method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Long-Term
Expected
Long-Term Rate of Return
Target Expected (with the effect
Asset Class Allocation Real Rate of Return of inflation) Global Equity 59% 4.56% 7.06%
Fixed Income 25% 0.78% 3.28%
TIPS 5% -0.08% 2.42%
Commodities 3% 1.22% 3.72%
REITs 8% 4.06% 6.56%
Total 100%
Assumed Long-Term Rate of Inflation 2.50%
Assumed Long-Term Investment Expenses n/a
Expected Long-Term Net Rate of Return 6.25%
Discount Rate 6.25%
The Expected Long-Term Rate of Return is provided by CalPERS’ Strategic Asset Allocation Overview in October 2018 – Strategy 1.

Changes of Assumptions
The discount rate decreased from 6.75% to 6.25% and general inflation decreased from 2.75% to

2.50%. Other assumption changes included a decreased medical trend rate for Kaiser Senior Advantage, the Medicare Advantage implied subsidy was removed, and mortality and demographic assumptions were updated.

Discount Rate
The discount rate used to measure the total OPEB liability was 6.25%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be sufficient to make projected benefit payments and the plan assets are expected to be invested using the strategy to achieve the expected return.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) Change in Net OPEB Liability
Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2021 (6/30/20 measurement date) $48,941,000 $22,986,000 $25,955,000 Changes Recognized for the Measurement Period:

Service Cost 679,000 679,000
Interest on the total OPEB liability 3,238,000 3,238,000 Difference between expected and actual experience (4,063,000) (4,063,000) Changes of assumptions 2,748,000 2,748,000
Contributions from the employer 3,323,000 (3,323,000)
Net investment income 6,319,000 (6,319,000)
Administrative expenses (17,000) 17,000
Benefit payments and refunds (3,315,000) (3,315,000)
Net Changes during July 1, 2021 to June 30, 2022 (713,000) 6,310,000 (7,023,000) Balance at June 30, 2022 (6/30/21 measurement date) $48,228,000 $29,296,000 $18,932,000 Increase (Decrease)
The benefit payments and refunds include implied subsidy benefit payments in the amount of $757,000.

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.25 percent) or 1-percentage-point higher (7.25 percent) than the current discount rate:

Discount Rate -1% Current Discount Discount Rate +1%
(5.25%) Rate (6.25%) (7.25%)
$24,257,000 $18,932,000 $14,435,000
Plan's Net OPEB Liability/(Asset)
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current rates.

Healthcare Cost
Trend Rate -1% Trend Rates Trend Rate +1%
$15,808,000 $18,932,000 $22,629,000
Plan's Net OPEB Liability/(Asset)

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) Detailed information about the OPEB plan’s fiduciary net position is available in the separately issued plan financial report. That report may be obtained from the California Public Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, CA, 94229.

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources related to OPEB
Components of OPEB Expense for fiscal year 2021-2022 were as follows:

Service Cost $679,000
Interest on Total OPEB Liability 3,238,000
Projected earning on investments (1,552,000)
Administrative expense 17,000
Recognition of deferred outflows/inflows:

Experience (1,933,000)
Assumptions 835,000
Asset Returns (939,000)
OPEB Expense $345,000
Components of deferred outflows of resources and deferred inflows of resources related to OPEB at June 30, 2022 were as follows:

Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Changes of assumptions $2,895,921 $44,079 $2,940,000
Employer contributions made subsequent
to the measurement date 3,244,613 49,387 3,294,000
Total deferred outflows of resources $6,140,534 $93,466 $6,234,000 Deferred inflows of resources:

Differences between expected and actual
experience $5,316,083 $80,917 $5,397,000
Net difference between projected and
actual earnings on plan investments 3,346,069 50,931 3,397,000 Changes of assumptions 1,299,224 19,776 1,319,000
Total deferred inflows of resources $9,961,376 $151,624 $10,113,000 The difference between projected OPEB plan investment earnings and actual earnings is amortized over a five-year period. The remaining gains and losses are amortized over the expected average remaining service life.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) $3,294,000 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as future OPEB expense as follows:

Measurement Period Amortized
Ended June 30 Amount
2023 ($1,958,000)
2024 (2,015,000)
2025 (1,838,000)
2026 (1,182,000)
2027 (180,000)
($7,173,000)
The table below provides a summary of the key results during this reporting period.

Measurement Date Measurement Date
Description June 30, 2021 June 30, 2020
Net OPEB Liability $18,932,000 $25,955,000
Deferred Inflows 10,113,000 5,058,000
Deferred Outflows (2,940,000) (1,930,417)
Impact on Net Position before deferred contributions 26,105,000 29,082,583 Additional Deferred Outflows - Contributions subsequent to measurement date (3,294,000) (3,322,583) Impact on Statement of Net Position before Allocations 22,811,000 25,760,000 Allocation of NOL to SRSD 552,000 1,155,000
Allocation of Deferred Inflows (measurement date) to SRSD 294,865 225,081 Allocation of Deferred Outflows (measurement date) to SRSD (85,722) (85,885) Impact on Net Position before deferred contributions to SRSD 761,143 1,294,196 Allocation of Additional Deferred Outflows (contributions) to SRSD (96,043) (147,874) Long-Term Receivable from SRSD, due to OPEB obligations (see Note 4F) 665,100 1,146,322 Impact on Statement of Net Positions, net of receivable from SRSD $22,145,900 $24,613,678 OPEB Expense $345,000 $1,778,000
Covered Employee Payroll $39,310,000 $39,920,000
Summary of Results
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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS
The City participates in the jointly governed organizations discussed below through formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each joint organization is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective joint organization, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities of this joint organization are not the City’s responsibility and the City does not have an equity interest in the assets of each joint organization except upon dissolution of the joint organization.

A. The Marin County Integrated On-Line Library System (System)

The MARINet Library Consortium was formed to provide for the procurement, ownership, operation, maintenance, and governance of shared library services among the libraries, public and academic, in Marin County. Current services shared and paid for 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 was $289,297 for the year ended June 30, 2022. Financial statements of the System can be obtained from the County Librarian, Marin County Free Library at 1401 Los Gamos Drive, Suite 200, San Rafael, California 94903.

B. The Marin General Services Authority (MGSA)
The MGSA was formed by the County of Marin and twelve local agencies to acquire street light facilities, operate the facilities during an eminent domain action against PG&E, and coordinate the subsequent transfer of the facilities to the individual local agencies. Each of the local agency’s share of contributions was based on the number of street lights to be acquired in the local agency’s individual jurisdiction in relation to the total number of street lights to be acquired by the Marin Streetlight Acquisition Joint Powers Authority. MGSA services now include street light maintenance, abandoned vehicle abatement, taxicab regulation, administrative responsibility for MarinMap and the CATV program formerly administered by the Marin Telecommunications Authority established to regulate the rates for cable television service and equipment. The City’s contribution to MGSA was $803,119 for the year ended June 30, 2022. Financial statements of the MGSA can be obtained at 900 Fifth Avenue, Suite 100, San Rafael, California 94901.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
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, 2007, MERA borrowed $2,250,000 from Citizens Business Bank. The note is being amortized over 14 ½ years at an annual interest rate of 4.43%. Loan Payments are funded by member operating payments. The costs of maintenance, operation, and debt service are divided on a pro rata share based on an agreed-upon formula established by a majority of the Governing Board. The members entered into a Project Operating Agreement on February 1, 1999.

Under the Operating Agreement, members are obligated to contribute service payments to cover the Authority’s operations and debt service. The City’s portion of the obligation is 16.913%. The City contributed $388,993 of the Authority’s operations and debt service for the fiscal year ended June 30, 2022. 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 Marin County Hazardous and Solid Waste Joint Powers Authority The Authority was established by the County, local cities, and waste franchising districts to finance, prepare and implement source reduction and recycling elements on a county-wide integrated waste management plan as required by State Assembly Bill 939. The City’s contribution to the Authority was $17,850 for the year ended June 30, 2022. Financial statements of the Authority can be obtained at 3501 Civic Center Drive, San Rafael, California 94903.

E. Central Marin Sanitation Agency (CMSA)
In October 1979, the District entered into a joint powers agreement with three neighboring sanitation agencies in central Marin County forming the Central Marin Sanitation Agency (CMSA). CMSA serves as a regional wastewater treatment plant for its four member agencies and San Quentin Prison (SQ) and is governed by a five-member Board of Commissioners, two appointed by the Board of Directors of the District, two appointed by the governing board of the Ross Valley Sanitary District, and one appointed by the governing board of Sanitary District No. 2 (SD 2).

Total project costs for the joint venture were funded from federal (75%) and state (12.5%) clean water grants and from local shares (12.5% total) allocated among the member agencies and SQ based upon the weighted average of the strength and volume of sewage flows per member at inception of the project. CMSA derives its annual funding for its operations and capital programs almost exclusively from service charges to member agencies. The joint powers agreement does not provide an explicit measurable right as required to establish an equity interest for any of the joint venture participants, and in addition to, stipulates that all excess capital funds, if any, and all excess administration, operations, and maintenance funds from whatever source, if any, are the property of CMSA.

The financial statements of the CMSA are available at the CMSA office at 1301 Anderson Drive, San Rafael, California 94901 and online at www.cmsa.us.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 13 – RISK MANAGEMENT
A. City
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City established the Risk Management Internal Service Fund to account for and finance its uninsured risks of loss.

The City manages risk by participating in a public entity risk pool (described below), purchasing insurance and by retaining certain risks.

Risk Coverage
Liability Coverage
The City is a member of the California Joint Powers Risk Management Authority (CJPRMA) which covers general liability claims up to $40,000,000. The purpose of CJPRMA is to spread the adverse effects of general liability losses among the member agencies. The City also purchases commercial insurance for property damage claims with an insured amount of $175,250,878. The City is self-insured up to $750,000 for each general liability claim and $25,000 for each property damage claim. Once the self-insured retention is met, CJPRMA becomes responsible for payment of all liability claims up to the limit. The City contributed a total of $942,552 in liability coverage premiums during the fiscal year ended June 30, 2022. Five years after settlement of all general liability claims for a program year, CJPRMA will retroactively adjust premium deposits for any excess or deficiency in deposits related to paid claims and reserves. Financial statements for the risk pool may be obtained from CJPRMA at 3201 Doolan Road, Suite 285, Livermore, California 94551.

Workers’ Compensation Coverage
The City purchases insurance for workers’ compensation through Safety National Casualty Corporation Excess Workers’ Compensation and Employers Liability Insurance with coverage up to statutory limits. The City is self-insured up to $1,000,000 for each worker’s compensation claim.

Insurance Internal Service Funds and Financial Reporting The City records estimated liabilities for claims filed up to the amounts for which it retains risk in the General Liability and Workers Compensation Internal Service Funds. Charges to the General Fund and other funds are based on relative general liability and workers compensation risk associated with the activities of each fund. Charges are recorded in the funds as expenditures or expenses and as revenues in the respective internal service funds.

Generally accepted accounting principles require municipalities to record the liability for uninsured claims and to reflect the current portion of this liability as an expenditure in the 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.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 13 – RISK MANAGEMENT (Continued)
The City’s liability for uninsured general liability claims and workers’ compensation claims, including claims incurred but not reported, are reported in the Statements of Net Position. The City’s present value liability for uninsured claims below include a provision for claims incurred but not reported using a discount rate of 2%.

General Workers' Totals, as of June 30
Liability * Compensation * 2022 2021
Balance, beginning of year $4,041,207 $8,227,696 $12,268,903 $12,420,277 Current year claims and changes
in estimates 1,490,936 3,730,334 5,221,270 1,751,191
Claims paid (835,639) (1,052,812) (1,888,451) (1,902,565) Balance, end of year $4,696,504 $10,905,218 $15,601,722 $12,268,903 Due in one year $1,057,147 $1,744,875 $2,802,022 $2,944,075 Due in more than one year 3,639,357 9,160,343 12,799,700 9,324,828 Total claim liabilities $4,696,504 $10,905,218 $15,601,722 $12,268,903 * Liability based on an actuarial valuation as of December 31, 2021, extrapolated to June 30, 2022.

The claims settlements have not exceeded insurance coverage for the past three years.

B. District
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and natural disaster. The District participates in a joint powers agreement with other entities forming the California Sanitation Risk Management Authority (CSRMA), a public entity risk pool operating as a common risk management and insurance program for 60 member entities. CSRMA is governed by a Board of Directors composed of one representative from each member agency and meets three times per year in conjunction with conferences of the California Association of Sanitation Agencies. The Board controls the Note 1 operations of CSRMA, including selection of management and approval of operating budgets, independent of any influence by member entities.

The District pays annual premiums to CSRMA for its primary insurance and property insurance programs. Primary and property insurance programs are fully insured wherein CSRMA purchases insurance as a group thereby reducing its costs. CSRMA provides both fully insured and pooled insurance programs for its participating member entities. Because all employees of the District are contracted employees from the City of San Rafael, workers’ compensation insurance is not carried by the District but is provided through the City.

CSRMA’s primary and property insurance programs transfer risk to commercial insurance policies for claims above deductibles, while the District retains risk for claims to the extent of deductibles. Settled claims for the District have not exceeded coverage provided by CSRMA in any of the past three fiscal years.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 13 – RISK MANAGEMENT (Continued)
The following summarizes active insurance policies as of June 30, 2022 together with coverage limits for each insured event:

Insurance Program Limits Coverage Description
CSRMA - Allied World Assur. $3,000,000 Gen/Mgt liability - aggregate CSRMA - Allied World Assur. $1,000,000 Gen/Mgt liability - occurrence CSRMA - Allied World Assur. $1,000,000 Auto liability - accident CSRMA - Allied World Assur. $4,000,000 Excess liability CSRMA - Public Entity Property
Insurance Program (P.E.P.I.P.) $30,359,825 Special form property CSRMA - Illinois Union Ins. $25,000,000 Pollution liability - tier 1 CSRMA - Illinois Union Ins. $2,000,000 Pollution liability - tier 2 CSRMA - Lloyds of London $2,000,000 Cyber liability - third party CSRMA - Lloyds of London $2,000,000 Cyber liability - first party CSRMA - Travelers Ins. $25,000 Identity theft
CSRMA - Lloyds of London $2,500,000 Deadly weapons - aggregate The financial statements of CSRMA are available at their office: 100 Pine Street, 11th Floor, San Francisco, California 94111.

NOTE 14 – LEASE LIABILITIES
A summary of governmental activities lease transactions for the fiscal year ended June 30, 2022, are as follows:

Balance
June 30, 2021 Balance Current
(as restated) Additions Retirements June 30, 2022 Portion Governmental Activities
Lease Liabilities
Fire Station 57 Land Lease $5,476,219 $4,232 $5,480,451 $508 Copier Equipment Leases 258,365 ($78,120) 180,245 82,053 Total $5,734,584 $4,232 ($78,120) $5,660,696 $82,561
On June 21, 2016, the City entered into a lease agreement as lessee with the County of Marin to lease property for constructing Fire Station # 57 for a 40 year term, ending on June 30, 2056. The City is required to make monthly principal and interest lease payments in the amount of $13,343 commencing July 1, 2021. The monthly lease payments are increased annually in the amount of 3% every July 1. The City recorded an initial lease liability and intangible right-to-use asset in the amount of $5,476,219, respectively, as of July 1, 2021. As of June 30, 2022, the balance of the lease liability was $5,480,451 and the net value of the right-to-use asset was $5,319,756, including accumulated amortization of $156,463.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 14 – LEASE LIABILITIES (Continued)
The City has entered into four separate equipment lease agreements as a lessee for copiers with various vendors. The lease terms vary from 3-5 years and interest is implicit in the lease agreements in the amount of 5%. The City is required to make monthly or yearly principal and interest lease payments in varying amounts ranging from $1,003 to $50,278, depending on the lease. The City recorded an initial lease liability and intangible right-to-use asset in the amount of $258,365, respectively, as of July 1, 2021. As of June 30, 2022, the balance of the lease liability was $180,245 and the net value of the right-to-use asset was $177,625, including accumulated amortization of $80,740. The future principal and interest lease payments as of June 30, 2022 were as follows:

For the Year
Ended June 30 Principal Interest Total
2023 $82,561 $172,869 $255,430
2024 62,395 168,654 231,049
2025 39,584 165,616 205,200
2026 29,156 164,311 193,467
2027 22,511 163,102 185,613
2028-2032 214,992 800,016 1,015,008
2033-2037 423,614 753,058 1,176,672
2038-2042 693,649 670,438 1,364,087
2043-2047 1,039,430 541,921 1,581,351
2048-2052 1,478,312 354,906 1,833,218
2053-2057 1,574,492 100,176 1,674,668
Totals $5,660,696 $4,055,067 $9,715,763
NOTE 15 – COMMITMENTS AND CONTINGENCIES
A. City Litigation
The City is a defendant in several lawsuits arising from its normal operations. City management is of the opinion that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the basic financial statements of the City.

B. District
As of June 30, 2022, SRSD had several contracts for sewer improvement projects with remaining obligations of approximately $2,070,000, the majority of which are expected to be completed within the 2022-2023 fiscal year.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 16 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE

TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES
A. Redevelopment Dissolution
In an effort to mitigate its budget deficit, the State of California adopted ABx1 26 on June 28, 2011, amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved redevelopment agencies on January 31, 2012.

The suspension provisions prohibited all redevelopment agencies from a wide range of activities, including incurring new indebtedness or obligations, entering into, or modifying agreements or contracts, acquiring, or disposing of real property, taking actions to adopt or amend redevelopment plans and other similar actions, except actions required by law or to carry out existing enforceable obligations, as defined in ABx1 26.

In addition, ABx1 26 and AB1484 directed the State Controller to review the activities of all redevelopment agencies and successor agencies to determine whether an asset transfer between an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did occur and the public agency that received the asset is not contractually committed to a third party for the expenditure or encumbrance of the asset, the legislation requires the State Controller to order the asset returned to the redevelopment agency. This review was performed in May 2013, and a report issued on July 29, 2013 (see section B of this footnote).

The City elected to become the Successor Agency to the Redevelopment Agency, and on February 1, 2012, the Redevelopment Agency’s remaining net assets were distributed to the Successor Agency. ABx1 26 requires the establishment of an Oversight Board to oversee the activities of the Successor Agency and one was established on April 2, 2012. On July 1, 2018, the County of Marin formed a county-wide Oversight Board to oversee the activities of all Successor Agencies within the County, including San Rafael. The activities of the Successor Agency are subject to review and approval of the Oversight Board, which is comprised of seven members.

The activities of the Successor Agency are reported in the Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency.

Pursuant to the dissolution of the City of San Rafael Redevelopment Agency, certain assets of the Redevelopment Agency were distributed to the Housing Successor and all remaining Redevelopment Agency assets and liabilities were distributed to the Successor Agency.

The City elected to become the Housing Successor and on February 1, 2012. Assets and Liabilities relating to the Housing Successor are reported in the City’s Low and Moderate Income Housing Special Revenue Fund.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 16 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
B. Redevelopment Property Tax Trust Fund (RPTTF)
The Successor Agency’s primary source of revenue comes from the RPTTF allocation distributed by the County. Property tax revenues for each Project Area are deposited into the RPTTF, which redistributes each Project Area’s tax increment under specified formulas. The County Auditor administers the RPTTF and disburses twice annually from this fund pass-through payments to affected taxing entities, an amount equal to the total of obligation payments that are required to be paid from tax increment as denoted on the Recognized Obligation Payment Schedule (“ROPS”).

The disbursements are established in the treasury of the Successor Agencies, and various allowed administrative fees and allowances. Any remaining balance is then distributed by the County Auditor back to affected taxing entities under a prescribed method that accounts for pass-through payments. The County Auditor is also responsible for the distributing other monies received from the Successor Agency (from sale of assets, etc.) to the affected taxing entities. Successor agencies in turn will use the amounts deposited into their respective funds to make payments for principal and interest on loans and monies advanced to or indebtedness incurred by the dissolved redevelopment agencies.

C. Long-Term Debt
1999 Tax Allocation Bonds and Capital Appreciation Bonds On June 16, 1999, the former Agency issued Tax Allocation Bonds in the amount of $23,504,004.

The bonds were issued as Current Interest Bonds in the aggregate principal amount of $21,115,000 and as Capital Appreciation Bonds in the original amount of $2,389,004. The proceeds of the bonds were used to finance certain redevelopment activities of benefit to the former Agency’s Central San Rafael Redevelopment Project Area.

In December 2009 of the former Agency exercised the redemption option of the Current Interest Bonds. The outstanding balance of the Bonds was refunded, on a current basis, through the issuance of the 2009 Tax Allocation Refunding Bonds as discussed below.

The Capital Appreciation Bonds mature annually after December 1 from 2018 to 2022, in amounts ranging from $1,440,000 to $2,070,000 and bear interest at rates from 5.58% to 5.60%.

Interest on the Capital Appreciation Bonds will compound on each interest premium date and will be payable solely at maturity. The bonds are secured, on parity with the 1992 and 1995 bonds (refunded in 2002), by a pledge and a lien on tax revenues and amounts on deposit in certain funds and accounts held by the fiscal agent.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 16 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
2002 Tax Allocation Refunding Bonds
On October 9, 2002, the former Agency issued Tax Allocation Refunding Bonds in the amount of $25,020,000. The proceeds of the bonds were used to refund the 1992 Tax Allocation Refunding Bonds and the 1995 Tax Allocation Bonds. The Bonds mature annually each December 1 from 2002 to 2022, in amounts ranging from $540,000 to $1,920,000 and bear interest at rates ranging from 2.00% to 5.25%. Interest is payable semiannually on June 1 and December 1. The Bonds maturing on or after December 1, 2013, are subject to optional redemption prior to maturity, in whole or in part, and by lot within any one maturity, prior to their respective maturity dates, on any date on or after December 1, 2012, at a price equal to the principal amount, plus accrued interest on the redemption date. The bonds are payable from tax revenues to be derived from the redevelopment activities of the former Agency related to the Central San Rafael Redevelopment Project Area.
2009 Tax Allocation Refunding Bonds
On December 14, 2009, the former Agency issued 2009 Tax Allocation Refunding Bonds in the amount of $14,660,000 bearing interest at rates from 3.00% to 5.00%. The proceeds of the Series 2009 Bonds were used to refund the former Agency’s 1999 Tax Allocation Current Interest Bonds and to advance funds to the City to finance street and parking improvements for the benefit of the Agency’s Central San Rafael Redevelopment Project. Principal payments are due annually on December 30 and interest payable semiannually on June 30 and December 30.

The Series 2009 Bonds maturing on or before December 1, 2019, are not subject to optional redemption prior to their respective stated maturities. The Series 2009 Bonds maturing on or after December 1, 2020, are subject to optional redemption as a whole or in part either on a pro rata basis among maturities or in inverse order of maturity, and by lot within any one maturity, prior to their respective maturity dates, at the option of the Agency, on any date on or after December 1, 2019, at a price equal to the principal amount of such Series 2009 Bonds called for redemption, together with interest accrued on the date fixed for redemption, without premium.

Use of Tax Increment
The former Agency pledged all future tax increment revenues for the repayment of the 1999 Capital Appreciation Bonds, and the 2002 and 2009 Tax Allocation Refunding Bonds. The pledge of all future tax increment revenues ends upon repayment of $3.6 million in remaining debt service on the Bonds, which is scheduled to occur in 2023. For fiscal year June 30, 2022, tax increment revenue amounted to $3.5 million which was used to make the debt service payment of $3.6 million. The bond covenants contain events of default that require the revenue of the Agency to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the Agency to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the Agency; or if any court or competent jurisdiction shall assume custody or control of the Agency. The Agency’s bonds also contain a subjective acceleration clause that allows the trustees or holders, who hold the majority of the aggregate principal amount of the notes, to accelerate payment of the entire principal amount outstanding and interest accrued to become immediately due if they determine that a material adverse change occurs.

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Authorized Balance Balance Current
and Issued June 30, 2021 Additions Retirements June 30, 2022 Portion San Rafael Successor Agency
1999 Tax Allocation Bonds
Capital Appreciation Bonds

5.58%-5.6%, due 12/1/2022 $2,389,004 $3,306,178 $147,409 $1,440,000 $2,013,587 $2,013,587 2002 Tax Allocation Refunding Bonds

2.00%-5.25%, due 12/1/2021 25,020,000 615,000 615,000
2009 Tax Allocation Refunding Bonds

3.00%-5.00%, due 12/1/2022 14,660,000 2,850,000 1,390,000 1,460,000 1,460,000 Add: deferred bond premium costs 159,718 79,851 79,867 79,867 Total Successor Agency Long-term Debt $6,930,896 $147,409 $3,524,851 $3,553,454 $3,553,454 Debt Service Requirements
Annual debt service requirements are shown below:

For the Year
Ended June 30 Principal Interest
2023 $3,530,000 $36,500
Totals 3,530,000 $36,500
Reconciliation of long-term debt:

Less: unaccreted discount (56,413)
Less: deferred bond premium costs 79,867
$3,553,454
D. Commitment and Contingencies
State Approval of Enforceable Obligation
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi-annually that contains all proposed expenditures for the subsequent six-month period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance. As of June 30, 2021, the Successor Agency had prepared fourteen 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.

DRAFT DRAFT REVIEW DRAFT 11-7-22 95 DRAFT

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022
Measurement date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 City's proportionate share 30.0453% 36.7394% 34.9538% 32.7180% 33.4752% Proportionate share of total pension liability $677,753,565 $907,195,058 $900,629,287 $878,483,703 $947,923,920 Proportionate share of fiduciary net position 603,499,779 764,871,931 733,574,437 757,834,016 837,356,062 Proportionate share of the net pension liability $74,253,786 $142,323,127 $167,054,850 $120,649,687 $110,567,858 Plan fiduciary net position as a percentage of the total pension liability 89.04% 84.31% 84.31% 86.27% 88.34% Covered payroll (report date) $28,563,328 $31,073,560 $32,126,272 $32,885,135 $36,349,651 Net pension liability as a percentage of covered payroll 259.96% 458.02% 519.99% 366.88% 304.18% Measurement date 6/30/2019 6/30/2020 6/30/2021
City's proportionate share 36.6081% 34.3574% 29.6650%
Proportionate share of total pension liability $1,082,900,638 $1,059,269,505 $959,104,784 Proportionate share of fiduciary net position 949,023,107 901,989,929 1,007,281,093 Proportionate share of the net pension liability (asset) $133,877,531 $157,279,576 ($48,176,309) Plan fiduciary net position as a percentage of the total pension liability 87.64% 85.15% 105.02% Covered payroll (report date) $33,106,430 $32,887,922 $31,697,590 Net pension liability (asset) as a percentage of covered payroll 404.39% 478.23% -151.99% * - The fiscal year ended June 30, 2015 was the first year of implementation, therefore only eight years are shown.

Cost-Sharing Multiple Employer Plan
Schedule of the City's Proportionate Share of the Net Pension Liability Last 10 years*
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CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015) Fiscal year ended, June 30 2015
Contractually required contribution $17,802,358
Contributions in Relation to the
Contractually required contribution 17,802,358
Contribution Deficiency/ (Excess) $0
Covered payroll $31,073,560
Contributions as a percentage of
covered payroll 57.29%
Notes to Schedule
Valuation Date / Timing 6/30/2013 (for contributions made in FY2014-2015) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2014-15):

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022
Fiscal year ended, June 30 2016
Contractually required contribution $19,339,577
Contributions in Relation to the
Contractually required contribution 19,339,577
Contribution Deficiency/ (Excess) $0
Covered payroll $32,126,272
Contributions as a percentage of
covered payroll 60.20%
Notes to Schedule
Valuation Date / Timing 6/30/2014 (for contributions made in FY2015-2016) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2015-16):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Actuarial Loss from 2009 Remaining Amortization period Unfunded liability - 16 years / Extraordinary Actuarial Loss - 24 years Asset valuation method 5-year smoothed market, 80% /120% corridor around market Inflation 3.25%
Salary increases 3.25% plus merit component based on employee classification and years of service Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality CalPERS 2014 Pre-Retirement Non-Industrial Death rates (plus Duty-Related Death rates for Safety Members), with the 20-year static projection used by CalPERS replaced by generational improvements from a base year of 2009 using Scale MP-2014 Disabled Mortality CalPERS 2014 Disability Mortality rates (Non-Industrial rates for Miscellaneous members and Industrial Disability rates for Safety members), adjusted by 90% for Males and Females (Miscellaneous and Safety) with the 20-year static projection used by CalPERS replaced by generational improvements from a base year of 2009 using Scale MP-2014 Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015) (Continued)
Cost-Sharing Multiple Employer
Schedule of Contributions
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CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022
Fiscal year ended, June 30 2017
Contractually required contribution $20,003,001
Contributions in Relation to the
Contractually required contribution 20,003,001
Contribution Deficiency/ (Excess) $0
Covered payroll $32,885,135
Contributions as a percentage of
covered payroll 60.83%
Notes to Schedule
Valuation Date / Timing 6/30/2015 (for contributions made in FY2016-2017) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2016-17):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (24 years remaining as of 6/30/14), the remaining UAL as of June 30, 2013 (16 years as of 6/30/14), and additional layers for unexpected changes in UAL after 6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for assumption changes with a 3-year phase-in/out).

Remaining Amortization period 19 years remaining as of June 30, 2016 Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages set back one year for male members/two years for female members Disabled Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages set forward three years for all members
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 (Continued)
Cost-Sharing Multiple Employer
Schedule of Contributions
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015) DRAFT DRAFT REVIEW DRAFT 11-7-22 99 DRAFT

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022
Fiscal year ended, June 30 2018
Contractually required contribution $20,167,435
Contributions in Relation to the
Contractually required contribution 20,167,435
Contribution Deficiency/ (Excess) $0
Covered payroll $36,349,651
Contributions as a percentage of
covered payroll 55.48%
Notes to Schedule
Valuation Date / Timing 6/30/2016 (for contributions made in FY2017-2018) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2017-18):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (22 years remaining as of 6/30/16), the remaining UAL as of June 30, 2013 (14 years as of 6/30/16), and additional layers for unexpected changes in UAL after 6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for assumption changes with a 3-year phase-in/out).

Remaining Amortization period 18 years remaining as of June 30, 2017 Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality Sex distinct CalPERS 2014 Pre-Retirement Non-Industrial Death rates (plus Duty-Related death rates for Safety members)
Disabled Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages set forward three years for all members
Disabled Mortality Rates of mortality among disabled members are given by CalPERS 2017 Disability Mortality rates (Non-Industrial rates for Miscellaneous members and Industrial Disability rates for Safety members), adjusted by 90% for Males (Miscellaneous and Safety) and 90% for Miscellaneous Females, with the 15-year static projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-2017.

Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015) (Continued)
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 DRAFT DRAFT REVIEW DRAFT 11-7-22 100 DRAFT

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022
Fiscal year ended, June 30 2019
Contractually required contribution $20,352,203
Contributions in Relation to the
Contractually required contribution 20,352,203
Contribution Deficiency/ (Excess) $0
Covered payroll $33,106,430
Contributions as a percentage of
covered payroll 61.48%
Notes to Schedule
Valuation Date / Timing 6/30/2017 (for contributions made in FY2018-2019) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2018-19):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (21 years remaining as of 6/30/17), the remaining UAL as of June 30, 2013 (13 years as of 6/30/17), and additional layers for unexpected changes in UAL after 6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for assumption changes with a 3-year phase-in/out).

Remaining Amortization period 17 years remaining as of June 30, 2018 Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service Investment Rate of Return 7.00%
Retirement Age
Healthy Mortality Rates of mortality for active members are specified by CalPERS 2017 Pre-Retirement Non-Industrial Death Rates (plus Duty-Related Death rates for Safety members), with the 20-year static projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-2017.

Disabled Mortality Rates of mortality among disabled members are given by CalPERS 2017 Disability Mortality rates (Non-Industrial rates for Miscellaneous members and Industrial Disability rates for Safety members), adjusted by 90% for Males (Miscellaneous and Safety) and 90% for Miscellaneous Females, with the 20-year static projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-2017.

Cost-Sharing Multiple Employer
Schedule of Contributions
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015) (Continued)
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 DRAFT DRAFT REVIEW DRAFT 11-7-22 101 DRAFT

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022
Fiscal year ended, June 30 2020
Contractually required contribution $20,031,614
Contributions in Relation to the
Contractually required contribution 20,031,614
Contribution Deficiency/ (Excess) $0
Covered payroll $32,887,922
Contributions as a percentage of
covered payroll 60.91%
Notes to Schedule
Valuation Date / Timing 6/30/2018 (for contributions made in FY2019-2020) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2019-20):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (20 years remaining as of 6/30/18), the remaining UAL as of June 30, 2013 (12 years as of 6/30/18), and additional layers for unexpected changes in UAL after 6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for assumption changes with a 3-year phase-in/out).

Remaining Amortization period 12 years remaining as of June 30, 2018 Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service Investment Rate of Return 7.00%
Retirement Age
Healthy Mortality
Disabled Mortality
Rates of mortality for active members are specified by CalPERS 2017 Pre-Retirement Non-Industrial Death rates (plus DutyRelated Death rates for Safety members), with the 15-year static projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-2017. 0% of all Miscellaneous and 95% of all Safety pre-retirement deaths are assumed to be service-connected.

Rates of mortality for retired members and their beneficiaries are given by CalPERS 2017 Post-Retirement Healthy Morality rates, adjusted by 90% for Males (Miscellaneous and Safety), with the 15-year static projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-2017.

Schedule of Contributions
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015) (Continued)
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 Cost-Sharing Multiple Employer
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CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022
Fiscal year ended, June 30 2021
Contractually required contribution $20,106,821
Contributions in Relation to the
Contractually required contribution 20,106,821
Contribution Deficiency/ (Excess) $0
Covered payroll $31,697,590
Contributions as a percentage of
covered payroll 63.43%
Notes to Schedule
Valuation Date / Timing 6/30/2019 (for contributions made in FY2020-2021) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2020 - 21):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (19 years remaining as of 6/30/19), the remaining UAL as of June 30, 2013 (11 years as of 6/30/19), and additional layers for unexpected changes in UAL after 6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for assumption changes with a 3-year phase-in/out).

Remaining Amortization period 11 years remaining as of June 30, 2019 Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service Investment Rate of Return 7.00%
Retirement Age
Healthy Mortality
Disabled Mortality
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015) (Continued)
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 Rates of mortality for active members are specified by CalPERS 2017 Pre-Retirement Non-Industrial Death rates (plus DutyRelated Death rates for Safety members), with the 15-year static projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-2017. 0% of all Miscellaneous and 95% of all Safety pre-retirement deaths are assumed to be service-connected.

DRAFT DRAFT REVIEW DRAFT 11-7-22 103 DRAFT

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022
Fiscal year ended, June 30 2022
Contractually required contribution $21,859,307
Contributions in Relation to the
Contractually required contribution (21,859,307)
Contribution Deficiency/ (Excess) $0
Covered payroll $34,418,052
Contributions as a percentage of
covered payroll 63.51%
Notes to Schedule
Valuation Date / Timing 6/30/2020 (for contributions made in FY2021-2022) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2021 - 22):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (18 years remaining as of 6/30/20), the remaining UAL as of June 30, 2013 (10 years as of 6/30/20), and additional layers for unexpected changes in UAL after 6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for assumption changes with a 3-year phase-in/out).

Remaining Amortization period 10 years remaining as of June 30, 2020 Asset valuation method Market Value
Inflation 2.50% per year
Salary increases 3.00% plus merit component based on employee classification and years of service Investment Rate of Return 6.75%
Retirement Age
Healthy Mortality
Disabled Mortality
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015) (Continued)
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 Mortality rates for Miscellaneous active members are based on the sex distinct Public General 2010 Employee Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale MP-2020, with no adjustments.

Mortality rates for Safety active members are based on the sex distinct Public Safety 2010 Above-Median Income Employee Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale MP-2020, with no adjustments. 10% of Safety member active deaths are assumed to occur in the line of duty Mortality Rates for Retired Disabled Members", should be"Rates of mortality for Miscellaneous disabled members are based on the sex distinct Public General 2010 Disabled Retiree Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale MP-2020, with no adjustments.

DRAFT DRAFT REVIEW DRAFT 11-7-22 104 DRAFT

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022
Measurement period 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Total OPEB liability
Service cost $766,000 $789,000 $822,000 $805,000 $687,000 $679,000 Interest 3,447,000 3,540,000 3,435,000 3,515,000 3,196,000 3,238,000 Differences between expected and actual experience (4,107,000) (3,040,000) (4,063,000) Assumption changes 4,831,000 (2,735,000) 2,748,000
Benefit payments, including refunds of employee contributions (2,896,000) (3,015,000) (3,028,000) (3,072,000) (3,225,000) (3,315,000) Net change in total OPEB liability 1,317,000 2,038,000 1,229,000 (4,527,000) 658,000 (713,000) Total OPEB liability - beginning 48,226,000 49,543,000 51,581,000 52,810,000 48,283,000 48,941,000 Total OPEB liability - ending (a) $49,543,000 $51,581,000 $52,810,000 $48,283,000 $48,941,000 $48,228,000 OPEB fiduciary net position
Contributions - employer $2,896,000 $3,475,000 $3,573,000 $3,725,000 $3,784,000 $3,323,000 Net investment income 157,000 1,675,000 1,425,000 1,224,000 770,000 6,319,000 Benefit payments, including refunds of employee contributions (2,896,000) (3,015,000) (3,028,000) (3,072,000) (3,225,000) (3,315,000) Administrative expense (7,000) (8,000) (44,000) (12,000) (19,000) (17,000) Net change in plan fiduciary net position 150,000 2,127,000 1,926,000 1,865,000 1,310,000 6,310,000 Plan fiduciary net position - beginning 15,608,000 15,758,000 17,885,000 19,811,000 21,676,000 22,986,000 Plan fiduciary net position - ending (b) $15,758,000 $17,885,000 $19,811,000 $21,676,000 $22,986,000 29,296,000 Plan net OPEB liability - ending (a) - (b) $33,785,000 $33,696,000 $32,999,000 $26,607,000 $25,955,000 $18,932,000 Plan fiduciary net position as a percentage
of the total OPEB liability 31.81% 34.67% 37.51% 44.89% 46.97% 60.74% Covered employee payroll $37,846,000 $32,885,000 $36,350,000 $40,496,000 $39,920,000 $39,310,000 Plan net OPEB liability as a percentage of covered employee payroll 89.27% 102.47% 90.78% 65.70% 65.02% 48.16% Historical information is required only for the measurement periods for which GASB 75 is applicable.

Other Post-Employment Benefits (OPEB)
Last Ten Fiscal Years
Agent Multiple Employer Defined Benefit Plan

SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS DRAFT DRAFT REVIEW DRAFT 11-7-22 105 DRAFT

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022

SCHEDULE OF CONTRIBUTIONS
Agent Multiple Employer Defined Benefit Plan
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
Fiscal year 2016-17
Actuarially determined contribution $3,450,000
Contributions in relation to
the actuarially determined contribution (3,475,000)
Contribution deficiency (excess) ($25,000)
Covered employee payroll $32,885,000
Contributions as a percentage of
covered employee payroll 10.49%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary Information for 10 years or as many years as are available upon implementation.

The June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 06/30/17.

Notes to Schedule:

Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported.

Methods and assumptions used to determine contribution rates:

Valuation Date June 30, 2015
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll Amortization Method Level dollar amount, over approximate 10-year period Remaining Amortization 19 years remaining as of June 30, 2016 Asset Valuation Method Investment gains and losses spread over 5-year rolling period Discount Rate 7.25%
Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2015 actuarial valuation Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/14 MCERA assumptions
Medical Trend Non-Medicare - 6.5% for 2017, decreasing 0.5% per year to an ultimate rate of 4.50% for 2021 and Medicare - 6.7% for 2017, decreasing to an ultimate rate of 4.5% for 2021 and later years
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived PEMHCA minimum - 60%
Cap Increases None
Mortality projected fully generational with Scale MP-14, modified to converge to ultimate improvement rates in 2022
Same as discount rate - expected City contributions projected to keep sufficient plan assets to pay all benefits from trust DRAFT DRAFT REVIEW DRAFT 11-7-22 106 DRAFT

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2017-18
Actuarially determined contribution $3,530,000
Contributions in relation to
the actuarially determined contribution (3,563,000)
Contribution deficiency (excess) ($33,000)
Covered employee payroll $36,350,000
Contributions as a percentage of
covered employee payroll 9.80%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary Information for 10 years or as many years as are available upon implementation.

The June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/18 and 6/30/19.

Notes to Schedule:

Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported.

Methods and assumptions used to determine contribution rates:

Valuation Date June 30, 2017
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll Amortization Method Level dollar amount, over approximate 10-year period Remaining Amortization 18 years remaining as of June 30, 2017 Asset Valuation Method Investment gains and losses spread over 5-year rolling period Discount Rate 6.75% at June 30, 2017; 7.25% at June 30, 2016 Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2017 actuarial valuation Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/17 MCERA assumptions
Medical Trend Non-Medicare - 7.5% for 2019, decreasing to 4.00% for 2076 and later years and Medicare - 6.5% for 2019, decreasing to 4.00% for 2076 and later years
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Post-retirement mortality: projected fully generational with Scale MP-2017 Pre-retirement mortality: projected 15-year static with 90% of Scale MP-2016 Same as discount rate - expected City contributions projected to keep sufficient plan assets to pay all benefits from trust
DRAFT DRAFT REVIEW DRAFT 11-7-22 107 DRAFT

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2018-19
Actuarially determined contribution $3,612,000
Contributions in relation to
the actuarially determined contribution (3,725,000)
Contribution deficiency (excess) ($113,000)
Covered employee payroll $40,496,000
Contributions as a percentage of
covered employee payroll 9.20%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary Information for 10 years or as many years as are available upon implementation.

The June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/18 and 6/30/19.

Notes to Schedule:

Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported.

Methods and assumptions used to determine contribution rates:

Valuation Date June 30, 2017
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll Amortization Method Level dollar amount, over approximate 10-year period Remaining Amortization 18 years remaining as of June 30, 2017 Asset Valuation Method Investment gains and losses spread over 5-year rolling period Discount Rate 6.75% at June 30, 2017; 7.25% at June 30, 2016 Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2017 actuarial valuation Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/17 MCERA assumptions
Medical Trend Non-Medicare - 7.5% for 2019, decreasing to 4.00% for 2076 and later years and Medicare - 6.5% for 2019, decreasing to 4.00% for 2076 and later years
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Pre-retirement mortality: projected 15-year static with 90% of Scale MP-2016 Post-retirement mortality: projected fully generational with Scale MP-2017 Same as discount rate - expected City contributions projected to keep sufficient plan assets to pay all benefits from trust
DRAFT DRAFT REVIEW DRAFT 11-7-22 108 DRAFT

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2019-20
Actuarially determined contribution $3,677,000
Contributions in relation to
the actuarially determined contribution (3,784,000)
Contribution deficiency (excess) ($107,000)
Covered employee payroll $39,920,000
Contributions as a percentage of
covered employee payroll 9.48%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary Information for 10 years or as many years as are available upon implementation.

The June 30, 2019 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/20 and 6/30/21.

Notes to Schedule:

Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported.

Methods and assumptions used to determine contribution rates:

Valuation Date June 30, 2019
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll Amortization Method Level dollar amount, over approximate 10-year period Remaining Amortization 16 years remaining as of June 30, 2019 Asset Valuation Method Investment gains and losses spread over 5-year rolling period Discount Rate 6.75% at June 30, 2019 and June 30, 2018, respectively Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2017 actuarial valuation Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/19 MCERA assumptions
Medical Trend Non-Medicare - 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076 and Medicare - 6.3% for 2021, decreasing to an ultimate rate of 4.00% in 2076
Healthcare participation for future retirees Capped benefit: 90% currently covered, 70% currently waived PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Mortality projected fully generational with Scale MP-2019 Same as discount rate - expected City contributions projected to keep sufficient plan assets to pay all benefits from trust
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CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2020-21
Actuarially determined contribution $3,027,000
Contributions in relation to
the actuarially determined contribution (3,322,583)
Contribution deficiency (excess) ($295,583)
Covered employee payroll $39,310,000
Contributions as a percentage of
covered employee payroll 8.45%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary Information for 10 years or as many years as are available upon implementation.

The June 30, 2019 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/20 and 6/30/21.

Notes to Schedule:

Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported.

Methods and assumptions used to determine contribution rates:

Valuation Date June 30, 2019
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll Amortization Method Level dollar amount, over approximate 10-year period Remaining Amortization 16 years remaining as of June 30, 2019 Asset Valuation Method Investment gains and losses spread over 5-year rolling period Discount Rate 6.75% at June 30, 2020 and June 30, 2019, respectively Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2017 actuarial valuation Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/19 MCERA assumptions
Medical Trend Non-Medicare - 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076 and Medicare - 6.3% for 2021, decreasing to an ultimate rate of 4.00% in 2076
Healthcare participation for future retirees Capped benefit: 90% currently covered, 70% currently waived PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Mortality projected fully generational with Scale MP-2019 Same as discount rate - expected City contributions projected to keep sufficient plan assets to pay all benefits from trust

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CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
Fiscal year 2021-22
Actuarially determined contribution $3,093,000
Contributions in relation to
the actuarially determined contribution (3,294,000)
Contribution deficiency (excess) ($201,000)
Covered employee payroll $42,604,000
Contributions as a percentage of
covered employee payroll 7.73%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary Information for 10 years or as many years as are available upon implementation.

The June 30, 2021 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/22 and 6/30/23.

Notes to Schedule:

Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported.

Methods and assumptions used to determine contribution rates:

Valuation Date June 30, 2021
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll Amortization Method Level dollar amount, over approximate 10-year period Remaining Amortization 14 years remaining as of June 30, 2021 Asset Valuation Method Investment gains and losses spread over 5-year rolling period Discount Rate 6.25% at June 30, 2022 and June 30, 2021, respectively Contribution Policy City contributes full ADC
General Inflation 2.50% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2019 valuation Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 2.75%
Merit - Increases - same as MCERA Assumptions as of June 30, 2020 valuation Medical Trend Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare (Non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare (Kaiser) - 4.60% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Healthcare participation for future retirees Capped benefit: 90% currently covered, 70% currently waived PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Mortality projected fully generational with Scale MP-2021 Same as discount rate - expected City contributions projected to keep sufficient plan assets to pay all benefits from trust
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DRAFT DRAFT REVIEW DRAFT 11-7-22 DRAFT

GENERAL FUND AND MAJOR SPECIAL REVENUE FUND

BUDGET-TO-ACTUAL STATEMENTS
Generally accepted accounting principles dictate 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.

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CITY OF SAN RAFAEL

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes and special assessments $77,725,521 $82,785,521 $84,324,467 $1,538,946 Licenses and permits 2,902,778 2,902,778 3,077,355 174,577 Fines and forfeitures 182,100 182,100 296,300 114,200
Use of money and properties 276,383 276,383 (1,969,810) (2,246,193) Intergovernmental 3,625,147 19,714,033 20,393,799 679,766 Charges for services 2,806,603 2,806,603 2,880,711 74,108 Other revenue 1,478,750 1,478,750 786,766 (691,984)
Total Revenues 88,997,282 110,146,168 109,789,588 (356,580)

EXPENDITURES
Current:

General government 13,138,280 16,887,256 17,214,009 (326,753) Public safety 47,061,089 47,083,093 46,824,239 258,854
Public works and parks 13,612,436 13,617,436 13,516,875 100,561 Community development 6,400,770 6,400,770 5,377,625 1,023,145 Culture and recreation 3,084,018 3,091,417 2,989,038 102,379 Capital outlay 92,776 92,776 372,147 (279,371)
Debt service:

Principal 2,755,169 2,755,169 2,829,057 (73,888)
Interest and fiscal charges 2,346,760 2,346,761 2,512,515 (165,754) Total Expenditures 88,491,298 92,274,678 91,635,505 639,173

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 505,984 17,871,490 18,154,083 282,593

OTHER FINANCING SOURCES (USES)
Transfers in 1,755,022 1,755,022 1,755,022
Transfers out (2,000,000) (2,973,885) (2,973,885)
Total Other Financing Sources (Uses) (244,978) (1,218,863) (1,218,863) Net Change in Fund Balance $261,006 $16,652,627 16,935,220 $282,593 FUND BALANCE, BEGINNING OF YEAR 16,845,899
FUND BALANCE, END OF YEAR $33,781,119
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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, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and properties $3,683 $10,564 $47,133 $36,569 Intergovernmental 225,000 225,000
Charges for services 863,000 887,563 198,531 (689,032)
Other revenue 159,310 159,310
Total Revenues 866,683 898,127 629,974 (268,153)

EXPENDITURES
Current:

General government 15,750 31,986 (16,236)
Public works and parks 225,138 652,138 636,429 15,709
Community development 374,824 358,588 16,236
Capital outlay 83,699 83,699 99,173 (15,474)
Total Expenditures 308,837 1,126,411 1,126,176 235

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 557,846 (228,284) (496,202) (267,918)

OTHER FINANCING SOURCES (USES)
Transfers out (1,190,000) (1,190,000)
Total Other Financing Sources (Uses) (1,190,000) (1,190,000) Net Change in Fund Balance $557,846 ($1,418,284) (1,686,202) ($267,918) 6,558,073
FUND BALANCE, END OF YEAR $4,871,871

FUND BALANCE, BEGINNING OF YEAR
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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, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and properties $7,943 $7,943 $40,412 $32,469 Intergovernmental 3,738,452 3,738,452 9,528,965 5,790,513 Charges for services 1,562,100 1,562,100 2,089,594 527,494 Other revenue 220,000 220,000 1,811,524 1,591,524
Total Revenues 5,528,495 5,528,495 13,470,495 7,942,000

EXPENDITURES
Current:

Public works and parks 2,492,528 3,660,828 1,474,091 2,186,737 Capital outlay 1,708,534 25,140,534 10,099,991 15,040,543 Total Expenditures 4,201,062 28,801,362 11,574,082 17,227,280

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,327,433 (23,272,867) 1,896,413 25,169,280

OTHER FINANCING SOURCES (USES)
Transfers in 1,312,000 1,312,000
Transfers out (635,000) (635,000) (635,000)
Total Other Financing Sources (Uses) (635,000) 677,000 677,000 Net Change in Fund Balance $692,433 ($22,595,867) 2,573,413 $25,169,280 FUND BALANCE, BEGINNING OF YEAR 4,344,854
FUND BALANCE, END OF YEAR $6,918,267
DRAFT DRAFT REVIEW DRAFT 11-7-22 116 DRAFT

SUPPLEMENTARY INFORMATION
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CITY OF SAN RAFAEL

ESSENTIAL FACILITIES CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $17,695 $17,695 $95,586 $77,891 Total Revenues 17,695 17,695 95,586 77,891

EXPENDITURES
Capital outlay 103,931 10,345,975 4,897,862 5,448,113
Total Expenditures 103,931 10,345,975 4,897,862 5,448,113

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (86,236) (10,328,280) (4,802,276) 5,526,004

OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 1,000,000 1,000,000 Transfers in 1,022,198 1,022,198
Total Other Financing Sources (Uses) 1,022,198 2,022,198 1,000,000 Net Change in Fund Balance ($86,236) ($9,306,082) (2,780,078) $6,526,004 FUND BALANCE, BEGINNING OF YEAR 12,097,390
FUND BALANCE, END OF YEAR $9,317,312
DRAFT DRAFT REVIEW DRAFT 11-7-22 118 DRAFT

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
Recreation Revolving Fund – Established to administer the Community Services Department’s program and facility rental charge and accounts for the Recreation Memorial Fund.

Baypoint Lagoons Assessment District Fund – The Baypoint Lagoons Lighting and Landscape District was formed to protect and enhance wildlife habitat and water quality in Baypoint (Spinnaker) Lagoon and the adjacent diked salt marsh.

Household Hazmat Facility Fund – Established to account for State mandated hazardous materials information, collection, and reporting. Expenditures include inspection of businesses for compliance with regulations. This fund also serves as the depository for countywide Household Hazardous Waste Program.

Childcare Fund – Established to administer and account for childcare programs at eight sites throughout the City.

Loch Lomond #10 Community Facilities District Fund – Established to provide maintenance for stormwater and geotechnical mitigation facilities. A Mello Roos District was formed to fund this maintenance.

Loch Lomond Marina #2 Community Facilities District Fund – Established to report tax assessments and maintenance expenditures of the District.

Library Fund – Established to account for restricted library activities that are intended to be selffunding.

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 that are intended to be self-funding.

Stormwater Fund – Established to provide for self-funding storm drain maintenance program plus separate programs through the County and Bay Area to educate residents about urban runoff pollution.

Development Services Fund – Established to account for development activities that are supported by external sources of funds. This fund does not account for the operating costs of building, planning, and engineering, which are located in the General Fund.

Grants Fund – Established to account for grants for the Library, Childcare, Police and Falkirk Cultural Center.

Parkland Dedication Fund – Established to account for long-term developer deposits used to enhance and maintain the park structure within City limits.

Emergency Medical Services Fund – Established to account for the Emergency Medical Services and Transportation program that provides services to all segments of the community.

Business Improvement Fund – Established to account for activities held in Downtown San Rafael.

DRAFT DRAFT REVIEW DRAFT 11-7-22 119 DRAFT
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Pt. San Pedro Maintenance Portion Special Revenue Fund – Established to account for ongoing maintenance needs within the Pt. San Pedro assessment district.

Low and Moderate Income Housing Special Revenue Fund – Established to account for the activities related to the assets assumed by the City as Housing Successor to the San Rafael Redevelopment Agency for the housing activities of the former Redevelopment Agency.

Measure A Open Space Special Revenue Fund – Established to account for the use of proceeds distributed by the County of Marin from Measure A, as well as other supplementary matching or Cityfunding for the operation or maintenance of open space, park or recreation lands.

Measure G Cannabis Special Revenue Fund – Established for the purpose of reporting tax revenue and expenditures related to Cannabis activities authorized by Measure G.

Measure C Wildfire Prevention Special Revenue Fund – Established for the purpose of reporting tax revenue and expenditures related to coordinated wildfire prevention activities authorized by Measure C, a parcel tax measure approved on March 3, 2020 by a two-thirds supermajority vote. This is a ten-year parcel tax levying up to 10 cents per building square foot tax and $75 per multifamily unit.

CAPITAL PROJECTS FUNDS
Capital Improvement Fund – Established for the costs associated with major capital improvement projects not tied to specific funds elsewhere. Improvements could include medians, parkways, sidewalks, and other public assets.

Bedroom Tax Fund – Established to collect funds from multiple-unit housing used to pay for maintaining and developing parks within local neighborhoods.

Assessment Districts Fund – Established to account for ongoing construction and improvement needs within the following assessment districts: Peacock Gap, Kerner Boulevard, Sun Valley/Lucas Valley Open Space, East San Rafael Drainage Assessment District 1.

Park Capital Projects Fund – Established to account for capital improvements for all City owned parks, whether paid for by City funds, grants, donations, or partnership with the community.

Open Space Fund – Established for the acquisition of open space.

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CITY OF SAN RAFAEL

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2022
Baypoint Loch Lomond
Lagoons Household #10
Recreation Assessment Hazmat Community
Revolving District Facility Childcare Facilities Dist.

ASSETS
Cash and investments $980,898 $204,093 $460,814 $321,144 $778,135 Restricted cash and investments
Receivables:

Accounts 272,367 496,430 16,509
Taxes 152 144
Grants 36,622
Interest
Loans
Leases 201,806
Prepaid expense
Total Assets $1,455,071 $204,245 $957,244 $374,275 $778,279

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $215,233 $445,613 $29,723 $6,771
Deposits payable
Developer deposits payable
Unearned revenue 557,549
Total Liabilities 772,782 445,613 29,723 6,771
Deferred Inflows of Resources:

Unavailable revenue - leases 197,737
Total Deferred Inflows of Resources 197,737
Fund Balances:

Nonspendable
Restricted 484,552 $204,245 511,631 344,552 771,508
Committed
Assigned
Total Fund Balances 484,552 204,245 511,631 344,552 771,508 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $1,455,071 $204,245 $957,244 $374,275 $778,279

SPECIAL REVENUE FUNDS
DRAFT DRAFT REVIEW DRAFT 11-7-22 122 DRAFT
Loch Lomond
Marina #2
Community Library Public Development Parkland
Facilities Dist. Library Assessment Safety Stormwater Services Grants Dedication $746,517 $2,590,839 $1,058,487 $133,083 $1,318,844 $472,918 $639,286 $343,740 1,275 1,520 4,522
500,000 900 9,890
301,504
$747,792 $3,090,839 $1,060,907 $133,083 $1,323,366 $774,422 $649,176 $343,740 $10,883 $3,319 $101,256 $53,661 $10,745 $66,904
117,676 186,070
3,635
10,883 3,319 101,256 53,661 132,056 252,974
292,721
292,721
736,909 3,087,520 959,651 $133,083 1,269,705 349,645 396,202 $343,740 736,909 3,087,520 959,651 133,083 1,269,705 349,645 396,202 343,740 $747,792 $3,090,839 $1,060,907 $133,083 $1,323,366 $774,422 $649,176 $343,740 (Continued)

SPECIAL REVENUE FUNDS
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CITY OF SAN RAFAEL

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2022
Low and
Emergency Pt. San Pedro Moderate
Medical Business Maintenance Income Measure A
Services Improvement Portion Housing Open Space
ASSETS
Cash and investments $626,499 $8,800 $154,233 $951,453 $795,075 Restricted cash and investments
Receivables:

Accounts 149,320
Taxes 27,289 931
Grants
Interest 291
Loans 920,826
Leases
Prepaid expense 89,761
Total Assets $892,869 $8,800 $155,164 $1,872,570 $795,075

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $60,269 $8,800 $15,128 $14,119
Deposits payable
Developer deposits payable
Unearned revenue
Total Liabilities 60,269 8,800 15,128 14,119
Deferred Inflows of Resources:

Unavailable revenue - leases
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable 89,761
Restricted 742,839 140,036 $1,872,570 780,956
Committed
Assigned
Total Fund Balances 832,600 140,036 1,872,570 780,956
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $892,869 $8,800 $155,164 $1,872,570 $795,075

SPECIAL REVENUE FUNDS
DRAFT DRAFT REVIEW DRAFT 11-7-22 124 DRAFT

SPECIAL

REVENUE
FUNDS
Total
Measure C Park Non-Major
Measure G Wildfire Capital Bedroom Assessment Capital Open Governmental Cannabis Prevention Improvement Tax Districts Projects Space Funds $846,507 $26,277 $999,203 $130,150 $223,742 $17,936 $117,755 $14,946,428 81,400 22,979 104,379
974,473 1,909,099
121,744 157,577
498,169 1,045,581
1,443 1,734
920,826
503,310
89,761
$968,251 $1,000,750 $1,521,794 $130,150 $305,142 $17,936 $117,755 $19,678,695 $197,568 $22,554 $1,262,546
2,821 306,567
3,635
557,549
197,568 25,375 2,130,297
490,458
490,458
89,761
$968,251 803,182 $130,150 $305,142 15,336,069
1,496,419 $17,936 1,514,355
$117,755 117,755
968,251 803,182 1,496,419 130,150 305,142 17,936 117,755 17,057,940 $968,251 $1,000,750 $1,521,794 $130,150 $305,142 $17,936 $117,755 $19,678,695

CAPITAL PROJECTS FUNDS
DRAFT DRAFT REVIEW DRAFT 11-7-22 125 DRAFT
Baypoint Loch Lomond
Lagoons Household #10
Recreation Assessment Hazmat Community
Revolving District Facility Childcare Facilities Dist.

REVENUES
Taxes and special assessments $25,368 $23,943
Use of money and properties $52,773 1,508 $1,444 $1,460 5,993 Intergovernmental 44,060 637,151
Charges for services 1,431,873 181,384 2,669,140
Other revenue 5,669 9,720
Total Revenues 1,534,375 26,876 182,828 3,317,471 29,936

EXPENDITURES
Current:

General government
Public safety 114,486
Public works and parks 13,000 11,175
Community development
Culture and recreation 3,713,516 3,341,499
Capital outlay
Total Expenditures 3,713,516 13,000 114,486 3,341,499 11,175

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,179,141) 13,876 68,342 (24,028) 18,761

OTHER FINANCING SOURCES (USES)
Transfers in 2,250,000
Transfers out (8,544)
Total Other Financing Sources (Uses) 2,250,000 (8,544)
Net Change in Fund Balances 70,859 13,876 68,342 (24,028) 10,217 Fund Balance, Beginning 413,693 190,369 443,289 368,580 761,291 Fund Balance, Ending $484,552 $204,245 $511,631 $344,552 $771,508

CITY OF SAN RAFAEL

COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE

NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022

SPECIAL REVENUE FUNDS
DRAFT DRAFT REVIEW DRAFT 11-7-22 126 DRAFT
Loch Lomond
Marina #2
Community Library Public Development Parkland
Facilities Dist. Library Assessment Safety Stormwater Services Grants Dedication $212,494 $1,101,914 $8,670
4,708 $19,510 7,366 $8,806 $49,545 2,597
538,465 900 $83,297 $405,061
1,966 835,739
25,626 70,236 12,725 2,478
242,828 630,177 1,110,180 96,022 847,023 49,545 405,061 11,267 216,137
177,483 548,045
33,821 662,827
20,471 1,162,492
83,356
33,821 20,471 1,162,492 177,483 746,183 764,182
209,007 609,706 (52,312) (81,461) 100,840 49,545 (359,121) 11,267 17,544 85,000
17,544 85,000
226,551 609,706 (52,312) 3,539 100,840 49,545 (359,121) 11,267 510,358 2,477,814 1,011,963 129,544 1,168,865 300,100 755,323 332,473 $736,909 $3,087,520 $959,651 $133,083 $1,269,705 $349,645 $396,202 $343,740 (Continued)

SPECIAL REVENUE FUNDS
DRAFT DRAFT REVIEW DRAFT 11-7-22 127 DRAFT
Low and
Emergency Pt. San Pedro - Moderate
Medical Business Maintenance Income Measure A
Services Improvement Portion Housing Open Space

REVENUES
Taxes and special assessments $5,109,836 $155,171 $294,034 Use of money and properties 887 $16,982 5,363
Intergovernmental 58,017
Charges for services 3,026,076
Other revenue 426,685 8,408 773,435
Total Revenues 8,620,614 164,466 790,417 299,397

EXPENDITURES
Current:

General government 141,039
Public safety 8,325,729
Public works and parks 147,329
Community development
Culture and recreation 92,251
Capital outlay 24,695
Total Expenditures 8,325,729 147,329 141,039 116,946

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 294,885 17,137 649,378 182,451

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (307,313)
Total Other Financing Sources (Uses) (307,313)
Net Change in Fund Balances (12,428) 17,137 649,378 182,451 Fund Balance, Beginning 845,028 122,899 1,223,192 598,505 Fund Balance, Ending $832,600 $140,036 $1,872,570 $780,956

SPECIAL REVENUE FUNDS

CITY OF SAN RAFAEL

COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE

NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
DRAFT DRAFT REVIEW DRAFT 11-7-22 128 DRAFT
Total
Measure C Park Non-Major
Measure G Wildfire Capital Bedroom Assessment Capital Open Governmental Cannabis Prevention Improvement Tax Districts Projects Space Funds $552,398 $1,770,677 $26,010 $9,280,515
5,011 $3,182 865 $52 $913 188,965
879,202 1,445,240 4,091,393
8,146,178
103,832 $3,406 1,442,220
557,409 2,753,711 1,448,422 26,875 52 3,406 913 23,149,271 113,495 470,671
38,261 2,369,478 11,573,482
868,152
279 8,330,508
1,768,230 1,876,281
151,756 2,369,478 1,768,230 279 23,119,094
405,653 384,233 (319,808) 26,875 52 3,127 913 30,177
2,352,544
(315,857)
2,036,687
405,653 384,233 (319,808) 26,875 52 3,127 913 2,066,864 562,598 418,949 1,816,227 103,275 305,090 14,809 116,842 14,991,076 $968,251 $803,182 $1,496,419 $130,150 $305,142 $17,936 $117,755 $17,057,940

SPECIAL REVENUE FUNDS CAPITAL PROJECTS FUNDS
DRAFT DRAFT REVIEW DRAFT 11-7-22 129 DRAFT

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, 2022

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 $24,100 $25,368 $1,268
Use of money and properties $28,900 $52,773 $23,873 433 1,508 1,075 Intergovernmental 73,945 44,060 (29,885)
Charges for services 1,784,047 1,431,873 (352,174)
Other revenue 570 5,669 5,099
Total Revenues 1,887,462 1,534,375 (353,087) 24,533 26,876 2,343

EXPENDITURES
Current:

General government
Public safety
Public works and parks 229,378 13,000 216,378
Community development
Culture and recreation 4,028,756 3,713,516 315,240
Capital outlay
Total Expenditures 4,028,756 3,713,516 315,240 229,378 13,000 216,378

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,141,294) (2,179,141) (37,847) (204,845) 13,876 218,721

OTHER FINANCING SOURCES (USES)
Transfers in 2,250,000 2,250,000
Transfers out
Total Other Financing Sources (Uses) 2,250,000 2,250,000 NET CHANGE IN FUND BALANCE $108,706 70,859 ($37,847) ($204,845) 13,876 $218,721 FUND BALANCES, BEGINNING OF YEAR 413,693 190,369
FUND BALANCES, END OF YEAR $484,552 $204,245
DRAFT DRAFT REVIEW DRAFT 11-7-22 130 DRAFT
Loch Lomond #10
Household Hazmat Facility Childcare
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $23,943 $23,943
$619 $1,444 $825 $1,772 $1,460 ($312) 1,655 5,993 $4,338 385,799 637,151 251,352
183,824 181,384 (2,440) 4,200,000 2,669,140 (1,530,860) 9,720 9,720
184,443 182,828 (1,615) 4,587,571 3,317,471 (1,270,100) 25,598 29,936 4,338 176,919 114,486 62,433
19,148 11,175 7,973
4,676,630 3,341,499 1,335,131
176,919 114,486 62,433 4,676,630 3,341,499 1,335,131 19,148 11,175 7,973 7,524 68,342 60,818 (89,059) (24,028) 65,031 6,450 18,761 12,311 (8,544) (8,544)
(8,544) (8,544)
$7,524 68,342 $60,818 ($89,059) (24,028) $65,031 ($2,094) 10,217 $12,311 443,289 368,580 761,291
$511,631 $344,552 $771,508
(Continued)
Community Facilities District

SPECIAL REVENUE FUNDS
DRAFT DRAFT REVIEW DRAFT 11-7-22 131 DRAFT
Library
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes and special assessments $80,000 $212,494 $132,494 Use of money and properties 851 4,708 3,857 $5,344 $19,510 $14,166 Intergovernmental 1,000 538,465 537,465
Charges for services 1,966 1,966
Other revenue 25,626 7,000 70,236 63,236
Total Revenues 80,851 242,828 136,351 13,344 630,177 616,833

EXPENDITURES
Current:

General government
Public safety
Public works and parks 131,210 33,821 97,389
Community development
Culture and recreation 40,000 20,471 19,529
Capital outlay
Total Expenditures 131,210 33,821 97,389 40,000 20,471 19,529

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (50,359) 209,007 259,366 (26,656) 609,706 636,362

OTHER FINANCING SOURCES (USES)
Transfers in 17,544 17,544
Transfers out
Total Other Financing Sources (Uses) 17,544 17,544
NET CHANGE IN FUND BALANCE ($32,815) 226,551 $259,366 ($26,656) 609,706 $636,362 FUND BALANCES, BEGINNING OF YEAR 510,358 2,477,814
FUND BALANCES, END OF YEAR $736,909 $3,087,520

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022

CITY OF SAN RAFAEL

BUDGETED NONMAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
Community Facilities District

SPECIAL REVENUE FUNDS
Loch Lomond Marina #2
DRAFT DRAFT REVIEW DRAFT 11-7-22 132 DRAFT

SPECIAL REVENUE FUNDS
Library Assessment Public Safety Stormwater
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $1,100,487 $1,101,914 $1,427
1,341 7,366 6,025 $1,956 $8,806 $6,850
900 900 $75,000 $83,297 $8,297
827,500 835,739 8,239
15,000 12,725 (2,275) 5,000 2,478 (2,522)
1,102,728 1,110,180 7,452 90,000 96,022 6,022 834,456 847,023 12,567 202,490 177,483 25,007
1,037,784 662,827 374,957
1,231,195 1,162,492 68,703
388,773 83,356 305,417
1,231,195 1,162,492 68,703 202,490 177,483 25,007 1,426,557 746,183 680,374 (128,467) (52,312) 76,155 (112,490) (81,461) 31,029 (592,101) 100,840 692,941 85,000 85,000
85,000 85,000
($128,467) (52,312) $76,155 ($27,490) 3,539 $31,029 ($592,101) 100,840 $692,941 1,011,963 129,544 1,168,865
$959,651 $133,083 $1,269,705
(Continued)
DRAFT DRAFT REVIEW DRAFT 11-7-22 133 DRAFT
Grants
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes and special assessments
Use of money and properties $37,801 $49,545 $11,744
Intergovernmental $499,250 $405,061 ($94,189)
Charges for services
Other revenue
Total Revenues 37,801 49,545 11,744 499,250 405,061 (94,189)

EXPENDITURES
Current:

General government 216,155 216,137 18
Public safety 721,200 548,045 173,155
Public works and parks
Community development
Culture and recreation
Capital outlay
Total Expenditures 937,355 764,182 173,173

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 37,801 49,545 11,744 (438,105) (359,121) 78,984

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE $37,801 49,545 $11,744 ($438,105) (359,121) $78,984 FUND BALANCES, BEGINNING OF YEAR 300,100 755,323
FUND BALANCES, END OF YEAR $349,645 $396,202

BUDGET AND ACTUAL

CITY OF SAN RAFAEL

BUDGETED NONMAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022

SPECIAL REVENUE FUNDS
Development Services
DRAFT DRAFT REVIEW DRAFT 11-7-22 134 DRAFT
Parkland Dedication Emergency Medical Services Business Improvement Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $8,670 $8,670 $5,144,745 $5,109,836 ($34,909)
$671 2,597 1,926
181,100 58,017 (123,083)
2,800,000 3,026,076 226,076
450,000 426,685 (23,315)
671 11,267 10,596 8,575,845 8,620,614 44,769
88 8,561,579 8,325,729 235,850
8,561,587 8,325,729 235,858
671 11,267 10,596 14,258 294,885 280,627
(307,313) (307,313)
(307,313) (307,313)
$671 11,267 $10,596 ($293,055) (12,428) $280,627
332,473 845,028
$343,740 $832,600
(Continued)

SPECIAL REVENUE FUNDS
DRAFT DRAFT REVIEW DRAFT 11-7-22 135 DRAFT
Low and Moderate Income Housing
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes and special assessments $150,107 $155,171 $5,064
Use of money and properties 887 887 $2,454 $16,982 $14,528 Intergovernmental
Charges for services
Other revenue 7,906 8,408 502 773,435 773,435
Total Revenues 158,013 164,466 6,453 2,454 790,417 787,963

EXPENDITURES
Current:

General government 141,039 141,039
Public safety
Public works and parks 185,200 147,329 37,871
Community development
Culture and recreation
Capital outlay
Total Expenditures 185,200 147,329 37,871 141,039 141,039

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (27,187) 17,137 44,324 (138,585) 649,378 787,963

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE ($27,187) 17,137 $44,324 ($138,585) 649,378 $787,963 FUND BALANCES, BEGINNING OF YEAR 122,899 1,223,192
FUND BALANCES, END OF YEAR $140,036 $1,872,570
FOR THE YEAR ENDED JUNE 30, 2022

CITY OF SAN RAFAEL

BUDGETED NONMAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
Pt. San Pedro-Maintenance Portion

SPECIAL REVENUE FUNDS
DRAFT DRAFT REVIEW DRAFT 11-7-22 136 DRAFT

SPECIAL REVENUE FUNDS
Measure A Open Space Measure G Cannabis Measure C Wildfire Prevention Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $472,324 $294,034 ($178,290) $500,000 $552,398 $52,398 $1,826,452 $1,770,677 ($55,775) 355 5,363 5,008 5,011 5,011
879,202 879,202
103,832 103,832
472,679 299,397 (173,282) 500,000 557,409 57,409 1,826,452 2,753,711 927,259 464,308 113,495 350,813
35,687 38,261 (2,574) 2,369,518 2,369,478 40
59,760 59,760
604,765 92,251 512,514
58,825 24,695 34,130
723,350 116,946 606,404 499,995 151,756 348,239 2,369,518 2,369,478 40 (250,671) 182,451 433,122 5 405,653 405,648 (543,066) 384,233 927,299 ($250,671) 182,451 $433,122 $5 405,653 $405,648 ($543,066) 384,233 $927,299 598,505 562,598 418,949
$780,956 $968,251 $803,182
DRAFT DRAFT REVIEW DRAFT 11-7-22 137 DRAFT
DRAFT DRAFT REVIEW DRAFT 11-7-22 DRAFT

INTERNAL SERVICE FUNDS
Internal service funds account for department services and financing performed for other departments within the same governmental jurisdiction. Funding comes from charges assessed to the departments benefiting from the service.

Building Maintenance Fund – Established to account for construction projects and cyclical large dollar maintenance tasks (roof, painting) completed on City owned buildings.

Vehicle Replacement Fund – Established to provide for the replacement of vehicles.

Equipment Replacement Fund – Established to provide for the replacement of computers and equipment.

Employee Benefits Fund – This fund is utilized for the payment of retiree benefits, unemployment insurance, accumulated leave requirements and other negotiated benefits not tied to a specific department.

Liability Insurance Fund – Established to maintain sufficient reserves for outstanding claims. All costs associated with liability premiums are paid from this fund.

Workers’ Compensation Fund – Established to maintain sufficient reserves for injury claims. All costs associated with workers compensation, including safety training, wellness programs, claim expenses and insurance premiums are paid from this fund.

Dental Insurance Fund – Set up to maintain sufficient reserves for dental claims. All costs associated with dental claims and administrations are paid from this fund.

Employee Retirement Fund – Established to maintain sufficient reserves to fund debt service payments on the 2010 Taxable Pension Obligation Bonds and other pension related obligations.

OPEB/Retiree Medical Fund – Established to account for activities related to the funding, administration and procurement of retiree medical benefits.

Radio Replacement Fund – Established to meet radio system operating costs, capital acquisition and replacement, and operating lease obligations for the Public Works, Fire, Community Development and Police Departments. The Marin Emergency Radio Authority (MERA) is a countywide JPA that has taken the roll in procurement and installation of a new digital radio system. This fund supports San Rafael's portion of the MERA efforts and related contractual obligations.

Telephone Replacement Fund – Established to provide ongoing support services for telephone equipment and usage throughout the organization.

Sewer Maintenance Fund – Established to record both the cost of providing services to the San Rafael Sanitation District and the charges for those services.

DRAFT DRAFT REVIEW DRAFT 11-7-22 139 DRAFT

CITY OF SAN RAFAEL

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2022
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
ASSETS
Current Assets:

Cash and investments $3,394,947 $6,359,927 $6,082,097 $850,642 $5,669,702 Grants receivable 18,165
Prepaid expenses 4,460
Capital assets:

Nondepreciable assets 886,508 23,238
Depreciable assets, net 5,658,343 5,016,452 121,844
Total Assets 9,957,963 11,399,617 6,208,401 850,642 5,669,702

LIABILITIES
Current Liabilities:

Accounts payable 50,850 23,238 90,845 5,535
Claims payable - due in one year 1,057,147
Long-term debt - due in one year 21,755
Non-current Liabilities:

Claims payable - due in more than one year 3,639,357
Long-term debt - due in more than one year 143,217
Total Liabilities 215,822 23,238 90,845 5,535 4,696,504 NET POSITION:

Net investment in capital assets 6,379,879 5,039,690 121,844 Unrestricted 3,362,262 6,336,689 5,995,712 845,107 973,198 Total Net Position $9,742,141 $11,376,379 $6,117,556 $845,107 $973,198 DRAFT DRAFT REVIEW DRAFT 11-7-22 140 DRAFT
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total $12,191,263 $440,432 $2,015,909 $388,642 $328,898 $214,864 $239,738 $38,177,061 18,165
4,460
909,746
10,796,639
12,191,263 440,432 2,015,909 388,642 328,898 214,864 239,738 49,906,071 3,216 7,410 33,406 31,001 239,738 485,239
1,744,875 2,802,022
21,755
9,160,343 12,799,700
143,217
10,908,434 7,410 33,406 31,001 239,738 16,251,933
11,541,413
1,282,829 433,022 2,015,909 355,236 328,898 183,863 22,112,725 $1,282,829 $433,022 $2,015,909 $355,236 $328,898 $183,863 $33,654,138 DRAFT DRAFT REVIEW DRAFT 11-7-22 141 DRAFT
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance

OPERATING REVENUES
Charges for current services $2,500,000 $2,709,458 $3,391,158 $1,849,465 $2,364,880 Intergovernmental 43,423
Other operating revenues 1,500
Total Operating Revenues 2,543,423 2,709,458 3,391,158 1,849,465 2,366,380

OPERATING EXPENSES
Personnel 823,105 241,792
Insurance premiums and claims 2,433,183
Maintenance and repairs 225,381 17,132
General and administrative 54,102 1,897,508 338,070 101,800 Depreciation expense 293,708 980,946 67,391
Total Operating Expenses 573,191 998,078 1,964,899 1,161,175 2,776,775 Operating Income (Loss) 1,970,232 1,711,380 1,426,259 688,290 (410,395)

NONOPERATING REVENUES (EXPENSES)
Investment income 13,810 33,451 36,694 10,215 37,948
Miscellaneous revenues 27,808
Gain from sale of capital assets 33,698
Loss from disposal of capital assets (39,007)
Total Nonoperating
Revenues (Expenses) 13,810 94,957 (2,313) 10,215 37,948 Net income (loss) before contributions
and transfers 1,984,042 1,806,337 1,423,946 698,505 (372,447) TRANSFERS OUT (122,000)
Change in Net Position 1,984,042 1,806,337 1,301,946 698,505 (372,447) NET POSITION, BEGINNING OF YEAR 7,758,099 9,570,042 4,815,610 146,602 1,345,645 NET POSITION, END OF YEAR $9,742,141 $11,376,379 $6,117,556 $845,107 $973,198

CITY OF SAN RAFAEL

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2022
DRAFT DRAFT REVIEW DRAFT 11-7-22 142 DRAFT
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total $4,553,295 $456,968 $1,780,000 $713,526 $479,464 $2,889,223 $23,687,437 43,423
881,190 882,690
4,553,295 456,968 2,661,190 713,526 479,464 2,889,223 24,613,550 175,795 2,783,793 4,024,485
3,972,017 343,787 3,445,837 10,194,824
64,143 306,656
195,209 44,325 $2,000 388,993 587,315 107,815 3,717,137 1,342,045
4,343,021 388,112 2,000 3,445,837 388,993 651,458 2,891,608 19,585,147 210,274 68,856 (2,000) (784,647) 324,533 (171,994) (2,385) 5,028,403 74,962 3,194 18,292 2,020 230,586
2,385 30,193
33,698
(39,007)
74,962 3,194 18,292 2,020 2,385 255,470
285,236 72,050 16,292 (784,647) 324,533 (169,974) 5,283,873 (683,813) (805,813)
285,236 72,050 (667,521) (784,647) 324,533 (169,974) 4,478,060 997,593 360,972 2,683,430 1,139,883 4,365 353,837 29,176,078 $1,282,829 $433,022 $2,015,909 $355,236 $328,898 $183,863 $33,654,138 DRAFT DRAFT REVIEW DRAFT 11-7-22 143 DRAFT

CITY OF SAN RAFAEL

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2022
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $2,544,962 $2,709,458 $3,391,158 $1,849,465 $2,364,880 Cash payments to suppliers for goods and services (291,183) (54,281) (2,058,180) (361,029) (1,887,661) Cash payments to employees for salaries and benefits (823,105) (241,792) Other operating revenues 1,500
Cash Flows from Operating Activities 2,253,779 2,655,177 1,332,978 665,331 236,927

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Miscellaneous revenues 27,808
Interfund payments (122,000)
Cash Flows from Noncapital
Financing Activities 27,808 (122,000)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Proceeds from note payable 174,036
Payment on note payable (9,064)
Acquisition and construction of capital assets (539,862) (156,141) Proceeds from sale of property 46,401
Cash Flows from Investing Activities (374,890) (109,740)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 13,810 33,451 36,694 10,215 37,948
Cash Flows from Investing Activities 13,810 33,451 36,694 10,215 37,948 Net increase (decrease) in cash and cash equivalents 1,892,699 2,606,696 1,247,672 675,546 274,875 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,502,248 3,753,231 4,834,425 175,096 5,394,827 CASH AND CASH EQUIVALENTS, END OF YEAR $3,394,947 $6,359,927 $6,082,097 $850,642 $5,669,702 Reconciliation of operating income (loss) to net cash
provided by operating activities:

Operating income (loss) $1,970,232 $1,711,380 $1,426,259 $688,290 ($410,395) Adjustments to reconcile operating income
to cash flows from operating activities:

Depreciation 293,708 980,946 67,391
Net change in assets and liabilities:

Grants receivable 1,539
Prepaids (4,460)
Accounts payable (11,700) (37,149) (156,212) (22,959) (7,975) Claims payable 655,297
Net Cash Provided by (Used in) Operating Activities $2,253,779 $2,655,177 $1,332,978 $665,331 $236,927 NON-CASH TRANSACTIONS:

Retirement of capital assets ($12,703) ($39,007)
DRAFT DRAFT REVIEW DRAFT 11-7-22 144 DRAFT
OPEB/
Workers' Dental Employee Employee Radio Telephone Sewer Compensation Insurance Retirement Retirement Replacement Replacement Maintenance Total $4,553,295 $456,968 $1,780,000 $713,526 $479,464 $2,889,223 $23,732,399 (1,487,180) (384,244) ($2,000) (3,438,270) (388,993) (635,702) (2,727,750) (13,716,473) (175,795) (1,240,692)
881,190 882,690
2,890,320 72,724 (2,000) (777,080) 324,533 (156,238) 161,473 9,657,924 2,385 30,193
(683,813) (805,813)
(683,813) 2,385 (775,620)
174,036
(9,064)
(696,003)
46,401
(484,630)
74,962 3,194 18,292 2,020 230,586
74,962 3,194 18,292 2,020 230,586
2,965,282 75,918 (667,521) (777,080) 324,533 (154,218) 163,858 8,628,260 9,225,981 364,514 2,683,430 1,165,722 4,365 369,082 75,880 29,548,801 $12,191,263 $440,432 $2,015,909 $388,642 $328,898 $214,864 $239,738 $38,177,061 $210,274 $68,856 ($2,000) ($784,647) $324,533 ($171,994) ($2,385) $5,028,403 1,342,045
1,539
(4,460)
2,524 3,868 7,567 15,756 163,858 (42,422)
2,677,522 3,332,819
$2,890,320 $72,724 ($2,000) ($777,080) $324,533 ($156,238) $161,473 $9,657,924 ($51,710)
DRAFT DRAFT REVIEW DRAFT 11-7-22 145 DRAFT
DRAFT DRAFT REVIEW DRAFT 11-7-22 DRAFT
San Rafael Public Library

STATISTICAL SECTION
DRAFT DRAFT REVIEW DRAFT 11-7-22 DRAFT
DRAFT DRAFT REVIEW DRAFT 11-7-22 DRAFT

STATISTICAL SECTION
This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.

Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time:

1. Net Position by Component

2. Changes in Net Position

3. Fund Balances of Governmental Funds

4. Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax:

1. Assessed and Estimated Actual Value of Taxable Property

2. Property Tax Rates, All Overlapping Governments

3. Property Tax Rates, Direct & Overlapping Governments

4. Principal Property Taxpayers

5. 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 Annual Comprehensive Financial Reports for the relevant year.

DRAFT DRAFT REVIEW DRAFT 11-7-22 149 DRAFT

CITY OF SAN RAFAEL

NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
2013 (a) 2014 (a) 2015 (a) 2016 (a)
Governmental activities
Net investment in capital assets $193,222,791 $190,286,275 $190,621,085 $193,707,175 Restricted 35,780,412 37,339,141 33,389,224 31,286,725
Unrestricted 11,151,318 (196,824) (82,336,534) (93,273,480) Total governmental activities net position $240,154,521 $227,428,592 $141,673,775 $131,720,420 Business-type activities
Net investment in capital assets $10,670,190 $10,786,591 $10,744,952 $10,958,058 Unrestricted 2,501,498 2,049,957 (938,519) (1,136,050)
Total business-type activities net position $13,171,688 $12,836,548 $9,806,433 $9,822,008 Primary government
Net investment in capital assets $203,892,981 $201,072,866 $201,366,037 $204,665,233 Restricted 35,780,412 37,339,141 33,389,224 31,286,725
Unrestricted 13,652,816 1,853,133 (83,275,053) (94,409,530) Total primary government net position $253,326,209 $240,265,140 $151,480,208 $141,542,428 (a) The City adjusted certain beginning balances during fiscal years 2013-2014, 2014-2015 and 2016-2017. Financial data shown for proceeding years were not adjusted for the presentation.

Fiscal Year Ended June 30,
($130,000)
($80,000)
($30,000)
$20,000
$70,000
$120,000
$170,000
$220,000
$270,000
$320,000
2013 (a)2014 (a)2015 (a)2016 (a)2017 2018 2019 2020 2021 2022 Thousands
Net investment in capital assets Restricted Unrestricted DRAFT DRAFT REVIEW DRAFT 11-7-22 150 DRAFT
□ ■ ■
2017 2018 2019 2020 2021 2022
$199,202,842 $217,170,376 $231,844,210 $230,737,025 $228,252,998 $246,437,706 29,225,643 25,549,583 23,288,874 23,522,748 36,175,158 36,668,766 (112,913,181) (122,577,233) (118,215,177) (116,133,437) (107,929,957) (48,883,395) $115,515,304 $120,142,726 $136,917,907 $138,126,336 $156,498,199 $234,223,077 $10,968,642 $10,951,518 $11,023,426 $11,104,751 $11,174,601 $11,256,222 (871,620) (886,848) (1,180,121) (1,204,307) (2,205,300) (1,189,003) $10,097,022 $10,064,670 $9,843,305 $9,900,444 $8,969,301 $10,067,219 $210,171,484 $228,121,894 $242,867,636 $241,841,776 $239,427,599 $257,693,928 29,225,643 25,549,583 23,288,874 23,522,748 36,175,158 36,668,766 (113,784,801) (123,464,081) (119,395,298) (117,337,744) (110,135,257) (50,072,398) $125,612,326 $130,207,396 $146,761,212 $148,026,780 $165,467,500 $244,290,296 DRAFT DRAFT REVIEW DRAFT 11-7-22 151 DRAFT

CITY OF SAN RAFAEL

CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2013 2014 2015 2016
Expenses
Governmental Activities:

General government $10,202,530 $9,085,672 $9,099,858 $12,952,983 Public safety 41,966,065 43,800,158 39,968,631 55,399,798 Public works and parks 17,695,164 22,125,336 16,893,164 22,929,289 Community development 3,403,158 3,451,244 3,128,373 4,307,269 Culture and recreation 11,330,058 11,846,818 11,198,151 15,026,680 Interest on long-term debt and fiscal charges 283,805 327,350 284,288 277,263 Total Governmental Activities Expenses 84,880,780 90,636,578 80,572,465 110,893,282 Business-Type Activities:

Parking services 3,545,387 4,125,476 4,249,597 4,762,851 Total Business-Type Activities Expenses 3,545,387 4,125,476 4,249,597 4,762,851 Total Primary Government Expenses $88,426,167 $94,762,054 $84,822,062 $115,656,133 Component Unit:

San Rafael Sanitation District $10,169,082 $11,378,055 $11,375,239 $11,654,767 Program Revenues
Governmental Activities:

Charges for services:

General government $2,655,749 $2,838,940 $1,379,523 $526,495 Public safety 6,478,321 6,014,034 4,966,251 4,939,658
Public works and parks 7,837,472 6,101,460 3,078,267 5,157,289 Community development 3,984,204 3,279,251 3,796,684 4,004,178 Culture and recreation 6,075,129 6,417,003 6,537,646 6,683,059 Operating grants and contributions 4,085,073 4,698,142 4,185,450 4,678,338 Capital grants and contributions 5,876,993 762,719 1,308,027 1,470,953 Total Government Activities Program Revenues 36,992,941 30,111,549 25,251,848 27,459,970 Business-Type Activities:

Charges for services:

Parking services 3,990,706 4,485,394 5,173,557 5,212,181 Total Business-Type Activities Program Revenues 3,990,706 4,485,394 5,173,557 5,212,181 Total Primary Government Program Revenues $40,983,647 $34,596,943 $30,425,405 $32,672,151 Component Unit:

San Rafael Sanitation District
Charges for service $12,413,123 $13,732,496 $14,629,758 $15,414,530 Operating grants and contributions
Capital grants and contributions
Total Component Unit Program Revenues $12,413,123 $13,732,496 $14,629,758 $15,414,530 Net (Expense)/Revenue
Governmental Activities ($47,887,839) ($60,525,029) ($55,320,617) ($83,433,312) Business-Type Activities 445,319 359,918 923,960 449,330 Total Primary Government Net Expense ($47,442,520) ($60,165,111) ($54,396,657) ($82,983,982) Component Unit Activities $2,244,041 $2,354,441 $3,254,519 $3,862,215 Fiscal Year Ended June 30,
DRAFT DRAFT REVIEW DRAFT 11-7-22 152 DRAFT
2017 2018 2019 2020 2021 2022
$10,996,269 $9,835,941 $11,967,641 $15,629,601 $12,254,642 $10,458,884 44,366,734 53,231,197 49,899,296 50,000,809 54,736,561 34,379,474 19,845,719 22,084,433 19,270,613 21,661,442 20,749,666 14,030,717 4,242,743 4,040,195 5,781,826 5,314,692 5,804,134 2,835,173 14,131,000 13,285,563 12,819,429 11,828,353 10,619,181 7,430,968 271,263 884,336 1,848,263 1,974,834 1,935,532 2,004,572 93,853,728 103,361,665 101,587,068 106,409,731 106,099,716 71,139,788 4,188,152 4,627,716 5,038,553 4,491,375 3,748,667 2,226,556 4,188,152 4,627,716 5,038,553 4,491,375 3,748,667 2,226,556 $98,041,880 $107,989,381 $106,625,621 $110,901,106 $109,848,383 $73,366,344 $11,255,194 $12,235,868 $12,601,257 $13,853,263 $13,790,905 $12,892,687 $421,393 $517,542 $377,606 $394,882 $388,833 $1,039,816 4,264,939 5,628,478 5,304,832 5,824,555 5,332,486 6,302,852 1,804,698 2,362,375 4,158,338 3,082,495 2,719,148 2,996,881 3,850,107 3,814,892 4,312,259 5,470,010 8,390,282 4,493,292 6,941,013 6,819,303 5,750,846 4,370,442 2,932,869 4,105,520 3,965,351 5,142,670 4,584,855 5,545,731 5,132,596 22,520,880 1,702,993 974,603 8,042,524 1,348,640 8,718,764 9,867,883 22,950,494 25,259,863 32,531,260 26,036,755 33,614,978 51,327,124 5,268,991 5,203,585 5,362,016 5,063,318 3,351,864 3,836,881 5,268,991 5,203,585 5,362,016 5,063,318 3,351,864 3,836,881 $28,219,485 $30,463,448 $37,893,276 $31,100,073 $36,966,842 $55,164,005 $16,014,016 $16,829,908 $16,964,083 $16,874,361 $16,945,721 $16,458,113 36,945 58,440 5,907 5,719 5,609 5,568
79,245 105,734 1,433,871 175,217 277,752 517,752
$16,130,206 $16,994,082 $18,403,861 $17,055,297 $17,229,082 $16,981,433 ($70,903,234) ($78,101,802) ($69,055,808) ($80,372,976) ($72,484,738) ($19,812,664) 1,080,839 575,869 323,463 571,943 (396,803) 1,610,325
($69,822,395) ($77,525,933) ($68,732,345) ($79,801,033) ($72,881,541) ($18,202,339) $4,875,012 $4,758,214 $5,802,604 $3,202,034 $3,438,177 $4,088,746 (Continued)
DRAFT DRAFT REVIEW DRAFT 11-7-22 153 DRAFT

CITY OF SAN RAFAEL

CHANGES IN NET POSITION
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2013 2014 2015 2016
General Revenues and Other Changes in Net Position
Governmental Activities:

Taxes:

Property $17,317,772 $18,439,619 $19,039,443 $19,998,567 Sales 24,262,282 27,758,971 32,269,915 34,348,089
Paramedic 3,804,985 3,816,070 3,820,240 4,226,020
Transient occupancy 2,185,287 2,332,277 2,661,878 3,063,263 Franchise 3,331,160 3,260,958 3,272,390 3,418,277
Business license 2,507,785 2,588,728 2,670,071 2,824,664 Other 2,929,915 3,452,171 3,295,751 3,465,193
Investment earnings 991,762 184,171 216,066 300,091
Gain (loss) from sale of capital assets
Miscellaneous 2,580,882 1,140,743 2,254,901 1,387,315
Transfers 423,817 449,917 432,630 448,478
Total Government Activities 60,335,647 63,423,625 69,933,285 73,479,957 Business-Type Activities:

Investment earnings 3,739 4,375 7,008 14,723
Gain (loss) from sale of capital assets
Transfers (423,817) (449,917) (432,630) (448,478)
Total Business-Type Activities (420,078) (445,542) (425,622) (433,755) Total Primary Government $59,915,569 $62,978,083 $69,507,663 $73,046,202 Component Unit:

San Rafael Sanitation District
Property Taxes $1,177,469 $1,345,018 $1,319,852 $1,367,172 Investment earnings 25,591 151,729 171,804 46,225
Miscellaneous
Aid from other governmental agencies 56,589 22,125 35,090 Total Component Unit $1,259,649 $1,518,872 $1,526,746 $1,413,397 Special Item
Governmental Activities $4,462,815
Component Unit Activities ($4,462,815)
Change in Net Position
Governmental Activities $12,447,808 $2,898,596 $19,075,483 ($9,953,355) Business-Type Activities 25,241 (85,624) 498,338 15,575 Total Primary Government $12,473,049 $2,812,972 $19,573,821 ($9,937,780) Change in Net Position
Component Unit Activities $3,503,690 $3,873,313 $318,450 $5,275,612 Fiscal Year Ended June 30,
DRAFT DRAFT REVIEW DRAFT 11-7-22 154 DRAFT
2017 2018 2019 2020 2021 2022
$23,343,140 $24,627,373 $25,903,240 $26,491,505 $30,993,516 $32,324,129 31,819,259 34,119,502 35,626,646 33,784,770 39,599,113 44,110,471 5,485,637 4,923,148 4,934,584 4,923,092 5,153,448 5,109,836 2,984,758 3,115,151 3,203,499 2,410,745 1,797,578 2,976,234 3,610,824 3,726,841 3,627,254 4,029,050 3,973,806 4,209,979 2,774,803 2,790,212 2,788,496 2,824,722 2,575,341 2,645,636 1,824,830 2,245,882 1,783,170 2,152,617 2,996,950 3,108,543 210,628 556,745 1,450,434 1,907,591 388,645 (1,424,183) 26,784 989,991
2,448,604 5,991,713 5,904,968 2,470,926 2,813,015 2,965,697 536,000 632,657 608,698 586,387 538,405 521,209
75,038,483 82,729,224 85,830,989 81,581,405 90,856,601 97,537,542 10,810 24,436 63,870 71,583 4,065 8,802
(536,000) (632,657) (608,698) (586,387) (538,405) (521,209) (525,190) (608,221) (544,828) (514,804) (534,340) (512,407) $74,513,293 $82,121,003 $85,286,161 $81,066,601 $90,322,261 $97,025,135 $1,528,047 $1,620,584 $1,727,221 $1,833,137 $1,888,197 $2,086,682 97,090 234,379 519,793 876,369 48,614 (406,535)
10,690 7,768 489
$1,625,137 $1,865,653 $2,254,782 $2,709,995 $1,936,811 $1,680,147 $4,135,249 $4,627,422 $16,775,181 $1,208,429 $18,371,863 $77,724,878 555,649 (32,352) (221,365) 57,139 (931,143) 1,097,918
$4,690,898 $4,595,070 $16,553,816 $1,265,568 $17,440,720 $78,822,796 $6,500,149 $6,623,867 $8,057,386 $5,912,029 $5,374,988 $5,768,893 DRAFT DRAFT REVIEW DRAFT 11-7-22 155 DRAFT
2013 2014 (b) 2015 (b) 2016 (b)
General Fund
Nonspendable $527,235 $503,338 $399,299 $476,316
Restricted
Committed 800,876
Assigned 2,476,676 6,866,149 12,374,002 16,440,910
Unassigned 1,588,500 1,772,577
Total General Fund $3,804,787 $7,369,487 $14,361,801 $18,689,803 All Other Governmental Funds
Nonspendable $51,521 $8,719 $2,359 $9,449
Restricted 20,769,546 30,185,064 31,742,184 27,552,245
Committed 8,447,495 2,185,825 931,871 3,799,421
Assigned 6,511,850 4,959,533 712,810 119,183
Unassigned
Total all other governmental funds $35,780,412 $37,339,141 $33,389,224 $31,480,298 (a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis.
(b) The City adjusted certain beginning balances during fiscal years 2013-2014, 2014-2015 and 2015-2016.

Financial data shown for preceding years were not adjusted for the presentation.

CITY SAN RAFAEL

FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
($5,000)
$15,000
$35,000
$55,000
$75,000
$95,000
2013 2014 (b) 2015 (b) 2016 (b) 2017 2018 2019 2020 2021 2022 Thousands
Total Fund Balance
DRAFT DRAFT REVIEW DRAFT 11-7-22 156 DRAFT
I □
2017 2018 2019 2020 2021 2022 (a)
$508,446 $1,008,234 $37,271 $7,540 $377,861 $95,279
8,321,000 9,415,000
14,900,945 11,214,720 11,391,084 9,799,140 7,226,153 24,270,840 1,295,041 1,104,216 920,885
$16,704,432 $12,222,954 $12,532,571 $9,806,680 $16,845,899 $33,781,119 $302,366 $27,627 $7,813 $89,761
$25,812,405 73,489,688 53,260,504 34,288,302 $36,043,515 36,443,519 3,491,708 1,754,983 1,901,271 1,884,153 1,831,036 1,514,355 115,103 115,942 118,139 120,920 116,842 117,755
(11,118)
$29,419,216 $75,662,979 $55,307,541 $36,290,070 $37,991,393 $38,165,390 DRAFT DRAFT REVIEW DRAFT 11-7-22 157 DRAFT
2013 2014 2015 2016
Revenues
Taxes and special assessments $51,549,306 $56,686,142 $61,804,228 $65,866,218 Licenses and permits 1,929,387 1,934,755 2,456,820 2,588,411 Fines and forfeitures 734,005 669,553 556,076 435,829
Use of money and properties 325,043 363,089 444,757 460,206 Intergovernmental 11,869,889 11,953,308 13,233,503 13,685,003 Charges for services 23,575,374 19,949,333 15,346,794 14,366,744 Other revenue 4,092,411 2,045,407 1,777,003 3,208,749
Total Revenues 94,075,415 93,601,587 95,619,181 100,611,160 Expenditures
Current:

General government 10,529,480 8,678,833 10,203,687 11,349,079 Public safety 41,377,062 41,900,762 43,954,515 47,071,166 Public works and parks 12,002,448 13,697,957 12,758,643 14,390,699 Community development 2,961,275 3,296,375 3,416,859 3,670,108 Culture and recreation 10,591,057 11,106,367 11,616,777 12,048,104 Capital outlay 4,009,454 2,154,900 4,498,924 4,813,757
Capital improvement/special projects 5,284,720 7,168,776 2,186,986 4,826,576 Debt service:

Principal 208,642 75,172 75,172
Interest and fiscal charges 283,805 327,350 284,288 277,263 Total Expenditures 87,039,301 88,539,962 88,995,851 98,521,924 Excess (deficiency) of revenues over
(under) expenditures 7,036,114 5,061,625 6,623,330 2,089,236 Other Financing Sources (Uses)
Issuance of debt
Proceeds from PG&E loans 568,481
Proceeds from sale of capital assets
Transfers in 8,425,474 3,655,302 4,348,149 7,533,364
Transfers (out) (6,711,657) (3,053,865) (3,051,499) (6,582,555) Total other financing sources (uses) 1,713,817 1,169,918 1,296,650 950,809 Extraordinary Item
Transfer to Successor Agency (2,352,584)
Net Change in fund balances $6,397,347 $6,231,543 $7,919,980 $3,040,045 Debt service as a percentage of
noncapital expenditures 0.4% 0.7% 0.4% 0.4%

CITY OF SAN RAFAEL

CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
DRAFT DRAFT REVIEW DRAFT 11-7-22 158 DRAFT
2017 2018 2019 2020 2021 2022
$71,166,891 $74,893,789 $77,101,185 $76,410,697 $86,347,728 $93,604,982 2,559,841 2,718,166 2,661,500 3,047,144 3,000,666 3,077,355 400,283 384,268 337,680 350,388 219,030 296,300
349,349 654,531 1,583,060 1,537,869 667,104 (1,597,714) 8,063,156 8,878,974 15,602,264 9,287,181 16,859,749 34,239,157 13,425,161 14,660,094 15,166,876 13,834,843 15,065,363 13,315,014 1,842,053 5,219,414 5,158,042 2,309,226 1,875,299 4,199,820 97,806,734 107,409,236 117,610,607 106,777,348 124,034,939 147,134,914 10,557,416 10,010,100 12,553,499 16,689,526 12,426,899 17,716,666 49,018,153 51,805,708 51,678,876 50,071,531 54,363,872 58,397,721 16,752,961 17,647,312 15,617,622 17,453,823 15,110,972 16,495,547 3,759,564 4,051,224 4,988,260 5,276,887 6,270,129 5,736,213 12,646,728 12,823,771 12,468,008 11,179,410 9,700,739 11,319,546 2,100,926 22,815,967 38,701,047 25,984,748 13,635,066 17,345,454 7,403,249
175,172 280,172 495,172 618,316 2,563,711 2,829,057
271,263 1,005,636 2,356,207 2,482,778 2,443,476 2,512,515 102,685,432 120,439,890 138,858,691 129,757,019 116,514,864 132,352,719 (4,878,698) (13,030,654) (21,248,084) (22,979,671) 7,520,075 14,782,195 46,565,800 23,999
1,000,000
9,287,007 68,351,964 15,482,297 13,797,526 7,549,590 6,441,764 (8,454,762) (68,373,222) (14,280,034) (12,585,216) (6,329,123) (5,114,742) 832,245 46,544,542 1,202,263 1,236,309 1,220,467 2,327,022 ($4,046,453) $33,513,888 ($20,045,821) ($21,743,362) $8,740,542 $17,109,217

0.5% 1.3% 2.8% 3.0% 4.9% 4.6%
DRAFT DRAFT REVIEW DRAFT 11-7-22 159 DRAFT

CITY OF SAN RAFAEL

San Rafael City CouncilNovember 21, 2022

San Rafael City Council
November 21, 2022