San Rafael City Council
November 20, 2023

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 NonIndustrial Death rates (plus Duty-Related 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 PostRetirement 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
REVIEW DRAFT 103 10/30/2023

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
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 Duty-Related 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.

REVIEW DRAFT 104 10/30/2023

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
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.

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.

REVIEW DRAFT 105 10/30/2023

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Fiscal year ended, June 30 2023
Contractually required contribution $21,446,744
Contributions in Relation to the
Contractually required contribution (21,446,744)
Contribution Deficiency/ (Excess) $0
Covered payroll $35,543,480
Contributions as a percentage of
covered payroll 60.34%
Notes to Schedule
Valuation Date / Timing 6/30/2021 (for contributions made in FY2022-2023) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2022 - 23):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (17 years remaining as of 6/30/21), the remaining UAL as of June 30, 2013 (9 years as of 6/30/21), 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 9 years remaining as of June 30, 2021 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.

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.

REVIEW DRAFT 106 10/30/2023

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Measurement period 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Total OPEB liability
Service cost $766,000 $789,000 $822,000 $805,000 $687,000 $679,000 $566,000 Interest 3,447,000 3,540,000 3,435,000 3,515,000 3,196,000 3,238,000 2,946,000 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) (3,286,000) Net change in total OPEB liability 1,317,000 2,038,000 1,229,000 (4,527,000) 658,000 (713,000) 226,000 Total OPEB liability - beginning 48,226,000 49,543,000 51,581,000 52,810,000 48,283,000 48,941,000 48,228,000 Total OPEB liability - ending (a) $49,543,000 $51,581,000 $52,810,000 $48,283,000 $48,941,000 $48,228,000 $48,454,000 OPEB fiduciary net position
Contributions - employer $2,896,000 $3,475,000 $3,573,000 $3,725,000 $3,784,000 $3,323,000 $3,294,000 Net investment income 157,000 1,675,000 1,425,000 1,224,000 770,000 6,319,000 (3,922,000) 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) (3,286,000) Administrative expense (7,000) (8,000) (44,000) (12,000) (19,000) (17,000) (15,000) Net change in plan fiduciary net position 150,000 2,127,000 1,926,000 1,865,000 1,310,000 6,310,000 (3,929,000) Plan fiduciary net position - beginning 15,608,000 15,758,000 17,885,000 19,811,000 21,676,000 22,986,000 29,296,000 Plan fiduciary net position - ending (b) $15,758,000 $17,885,000 $19,811,000 $21,676,000 $22,986,000 29,296,000 25,367,000 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 $23,087,000 Plan fiduciary net position as a percentage
of the total OPEB liability 31.81% 34.67% 37.51% 44.89% 46.97% 60.74% 52.35% Covered employee payroll $37,846,000 $32,885,000 $36,350,000 $40,496,000 $39,920,000 $39,310,000 $43,602,857 Plan net OPEB liability as a percentage of covered employee payroll 89.27% 102.47% 90.78% 65.70% 65.02% 48.16% 52.95% 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 REVIEW DRAFT 107 10/30/2023

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023

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 REVIEW DRAFT 108 10/30/2023

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023

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
REVIEW DRAFT 109 10/30/2023

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023

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
REVIEW DRAFT 110 10/30/2023

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023

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
REVIEW DRAFT 111 10/30/2023

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023

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
REVIEW DRAFT 112 10/30/2023

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023

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% Medicare (Kaiser) - 4.60% for 2023, decreasing to an ultimate rate of 3.75% in 2 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
REVIEW DRAFT 113 10/30/2023

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
Fiscal year 2022-23
Actuarially determined contribution $2,618,000
Contributions in relation to
the actuarially determined contribution (3,183,000)
Contribution deficiency (excess) ($565,000)
Covered employee payroll $43,602,857
Contributions as a percentage of
covered employee payroll 7.30%
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 13 year fized period for 2022/23 Asset Valuation Method Investment gains and losses spread over 5-year rolling period Discount Rate 6.25%
Contribution Policy City contributes full ADC
General Inflation 2.5% per annum
Mortality, Retirement, Disability, Termination 0630/20 MCERA Valuation assumptions Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - Increases - same as MCERA Assumptions as of June 30, 2020 valuation Medical Trend Non-Medicare - 6.5% for 2023 decreasing 3.75% for 2076 and later Medicare (Non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of3.75% in 2076 Medicare (Kaiser) - 4.60% for 2019, decreasing to an ultimate rate of 3.75% in 2076 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
Mortality projected fully generational with Scale MP-2021 Same as discount rate - expected City contributions projected to keep sufficient REVIEW DRAFT 114 10/30/2023
REVIEW DRAFT 10/30/2023

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.

REVIEW DRAFT 116 10/30/2023

CITY OF SAN RAFAEL

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes and special assessments $85,123,414 $86,623,414 $86,808,092 $184,678 Licenses and permits 3,010,159 3,010,159 3,002,122 (8,037) Fines and forfeitures 186,732 186,732 228,966 42,234
Use of money and properties 47,500 47,500 684,150 636,650 Intergovernmental 4,345,765 4,345,765 3,521,419 (824,346) Charges for services 3,048,215 3,048,215 2,843,882 (204,333) Other revenue 1,006,395 1,006,395 1,010,712 4,317
Total Revenues 96,768,180 98,268,180 98,099,343 (168,837)

EXPENDITURES
Current:

General government 15,361,785 15,762,644 13,114,356 2,648,288 Public safety 48,463,764 49,463,764 47,070,997 2,392,767 Public works and parks 14,273,239 14,273,239 14,602,766 (329,527) Community development 6,323,809 6,398,809 5,174,237 1,224,572 Culture and recreation 3,266,529 3,266,529 3,201,698 64,831 Capital outlay 92,776 92,776 92,776
Debt service:

Principal 2,956,642 2,956,642 3,044,551 (87,909)
Interest and fiscal charges 2,232,925 2,232,925 2,241,875 (8,950) Total Expenditures 92,971,469 94,447,328 88,450,480 5,996,848

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,796,711 3,820,852 9,648,863 5,828,011

OTHER FINANCING SOURCES (USES)
Transfers in 1,770,072 1,131,142 1,131,142
Transfers out (3,307,000) (16,793,126) (16,793,126)
Total Other Financing Sources (Uses) (1,536,928) (15,661,984) (15,661,984) Net Change in Fund Balance $2,259,783 ($11,841,132) (6,013,121) $5,828,011 FUND BALANCE, BEGINNING OF YEAR 33,781,119
FUND BALANCE, END OF YEAR $27,767,998
REVIEW DRAFT 117 10/30/2023

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, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and properties $112,664 $112,664
Intergovernmental $225,000 $225,000 225,000
Charges for services 650,000 650,000 697,658 47,658
Total Revenues 875,000 875,000 1,035,322 160,322

EXPENDITURES
Current:

General government 105,000 105,000 105,000
Public works and parks 600,000 600,000 142,969 457,031
Community development 16,009 (16,009)
Capital outlay 200,000 200,000 64,050 135,950
Total Expenditures 905,000 905,000 223,028 681,972

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (30,000) (30,000) 812,294 842,294

OTHER FINANCING SOURCES (USES)
Transfers in 8,897 8,897
Total Other Financing Sources (Uses) 8,897 8,897
Net Change in Fund Balance ($30,000) ($21,103) 821,191 $842,294 4,871,871
FUND BALANCE, END OF YEAR $5,693,062

FUND BALANCE, BEGINNING OF YEAR
REVIEW DRAFT 118 10/30/2023

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, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and properties $79,353 $79,353
Intergovernmental $29,435,867 $29,435,867 19,123,868 (10,311,999) Charges for services 2,007,767 2,007,767 2,419,840 412,073 Other revenue 250,000 250,000 137,258 (112,742)
Total Revenues 31,693,634 31,693,634 21,760,319 (9,933,315)

EXPENDITURES
Current:

Public works and parks 2,585,000 3,405,000 3,695,723 (290,723) Capital outlay 25,660,000 26,655,013 13,170,654 13,484,359 Total Expenditures 28,245,000 30,060,013 16,866,377 13,193,636

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,448,634 1,633,621 4,893,942 3,260,321

OTHER FINANCING SOURCES (USES)
Transfers in 32,400 32,400
Transfers out (650,000) (8,897) (8,897)
Total Other Financing Sources (Uses) (650,000) 23,503 23,503 Net Change in Fund Balance $2,798,634 $1,657,124 4,917,445 $3,260,321 FUND BALANCE, BEGINNING OF YEAR 6,918,267
FUND BALANCE, END OF YEAR $11,835,712
REVIEW DRAFT 119 10/30/2023

SUPPLEMENTARY INFORMATION
REVIEW DRAFT 120 10/30/2023

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, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $27,274 $27,274
Total Revenues 27,274 27,274

EXPENDITURES
Capital outlay $3,996,830 $6,213,497 6,213,497
Total Expenditures 3,996,830 6,213,497 6,213,497

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (3,996,830) (6,213,497) (6,186,223) 27,274

OTHER FINANCING SOURCES (USES)
Transfers in 586,926 586,926
Total Other Financing Sources (Uses) 586,926 586,926
Net Change in Fund Balance ($3,996,830) ($5,626,571) (5,599,297) $27,274 FUND BALANCE, BEGINNING OF YEAR 9,317,312
FUND BALANCE, END OF YEAR $3,718,015
REVIEW DRAFT 121 10/30/2023

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
Recreation Revolving Fund – Established to administer the Recreation 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.

REVIEW DRAFT 122 10/30/2023
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.

REVIEW DRAFT 123 10/30/2023

CITY OF SAN RAFAEL

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2023
Baypoint Loch Lomond
Lagoons Household #10
Recreation Assessment Hazmat Community
Revolving District Facility Childcare Facilities Dist.

ASSETS
Cash and investments $840,012 $224,610 $559,605 $651,512 $809,720 Restricted cash and investments
Receivables:

Accounts 178,237 343,366
Taxes 127 142
Grants 913
Interest
Loans
Leases 177,143
Prepaid expense 230
Total Assets $1,195,622 $224,737 $902,971 $652,425 $809,862

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $194,965 $330,514 $41,460
Deposits payable
Developer deposits payable
Unearned revenue 468,456
Total Liabilities 663,421 330,514 41,460
Deferred Inflows of Resources:

Unavailable revenue - leases 169,488
Total Deferred Inflows of Resources 169,488
Fund Balances:

Nonspendable 230
Restricted 362,483 $224,737 572,457 610,965 809,862
Committed
Assigned
Total Fund Balances 362,713 224,737 572,457 610,965 809,862 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $1,195,622 $224,737 $902,971 $652,425 $809,862

SPECIAL REVENUE FUNDS
REVIEW DRAFT 124 10/30/2023
Loch Lomond
Marina #2
Community Library Public Development Parkland
Facilities Dist. Library Assessment Safety Stormwater Services Grants Dedication $899,821 $4,444,598 $1,024,440 $156,410 $7,269,767 $192,304 $1,090,357 $359,989 115,583 226,438 165,000
1,221 4,664 4,216
31,019
276,042
$901,042 $4,444,598 $1,029,104 $156,410 $7,389,566 $694,784 $1,286,376 $359,989 $4,087 $134 $94,819 $32,047 $760,107 $29,614 $50,737
1,311 185,256
3,635
4,087 134 94,819 32,047 760,107 34,560 235,993
260,196
260,196
4,444,464 934,285 124,363 6,629,459 400,028 1,050,383 $359,989 896,955 896,955 4,444,464 934,285 124,363 6,629,459 400,028 1,050,383 359,989 $901,042 $4,444,598 $1,029,104 $156,410 $7,389,566 $694,784 $1,286,376 $359,989 (Continued)

SPECIAL REVENUE FUNDS
REVIEW DRAFT 125 10/30/2023

CITY OF SAN RAFAEL

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2023
Low and
Emergency Pt. San Pedro Moderate
Medical Business Maintenance Income Measure A
Services Improvement Portion Housing Open Space
ASSETS
Cash and investments $1,323,721 $58,594 $177,407 $27,592 $228,836 Restricted cash and investments
Receivables:

Accounts 298,748 45,232
Taxes 26,131 817 279,694
Grants 658,492
Interest
Loans 1,799,220
Leases
Prepaid expense 182,660
Total Assets $2,489,752 $58,594 $178,224 $1,872,044 $508,530

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $25,251 $58,594 $3,256 $33,477
Deposits payable
Developer deposits payable
Unearned revenue
Total Liabilities 25,251 58,594 3,256 33,477
Deferred Inflows of Resources:

Unavailable revenue - leases
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable 182,660
Restricted 2,281,841 174,968 $1,872,044 475,053
Committed
Assigned
Total Fund Balances 2,464,501 174,968 1,872,044 475,053 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $2,489,752 $58,594 $178,224 $1,872,044 $508,530

SPECIAL REVENUE FUNDS
REVIEW DRAFT 126 10/30/2023

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 $1,089,495 $508,218 $4,137,231 $142,339 $216,354 $21,861 $119,248 $26,574,041 82,369 82,369
1,020,805 2,393,409
61,241 378,253
690,424
6,158 6,158
1,799,220
453,185
182,890
$1,150,736 $1,529,023 $4,143,389 $142,339 $298,723 $21,861 $119,248 $32,559,949 $142,612 $153,585 $1,955,259
2,821 189,388
3,635
468,456
142,612 156,406 2,616,738
429,684
429,684
182,890
1,150,736 1,386,411 142,339 298,723 25,202,545
3,986,983 21,861 4,008,844
119,248 119,248
1,150,736 1,386,411 3,986,983 142,339 298,723 21,861 119,248 29,513,527 $1,150,736 $1,529,023 $4,143,389 $142,339 $298,723 $21,861 $119,248 $32,559,949

CAPITAL PROJECTS FUNDS
REVIEW DRAFT 127 10/30/2023
Baypoint Loch Lomond
Lagoons Household #10
Recreation Assessment Hazmat Community
Revolving District Facility Childcare Facilities Dist.

REVENUES
Taxes and special assessments $25,368 $28,308
Use of money and properties $44,505 2,713 $5,586 $5,098 10,010 Intergovernmental 8,110 770,325
Charges for services 1,958,147 177,582 3,183,904
Other revenue 10,802 32,304
Total Revenues 2,021,564 28,081 183,168 3,991,631 38,318

EXPENDITURES
Current:

General government 1,720
Public safety 120,622
Public works and parks 7,589 (36)
Culture and recreation 4,350,403 3,725,218
Capital outlay
Total Expenditures 4,350,403 7,589 122,342 3,725,218 (36)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,328,839) 20,492 60,826 266,413 38,354

OTHER FINANCING SOURCES (USES)
Transfers in 2,207,000
Transfers out
Total Other Financing Sources (Uses) 2,207,000
Net Change in Fund Balances (121,839) 20,492 60,826 266,413 38,354 Fund Balance, Beginning 484,552 204,245 511,631 344,552 771,508 Fund Balance, Ending $362,713 $224,737 $572,457 $610,965 $809,862

CITY OF SAN RAFAEL

COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE

NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023

SPECIAL REVENUE FUNDS
REVIEW DRAFT 128 10/30/2023
Loch Lomond
Marina #2
Community Library Public Development Parkland
Facilities Dist. Library Assessment Safety Stormwater Services Grants Dedication $244,286 $1,132,972 $11,797
10,453 $48,755 11,534 $1,395 $21,280 $50,383 4,452
1,400,000 82,847 $1,670,887
4,148 832,584
15,831 29,671 3,079 1,177
254,739 1,468,734 1,144,506 113,913 856,943 50,383 1,672,064 16,249 543,443
207,633 485,230
94,693 858,666
44,833 1,169,872
66,957 1,888,523 463
94,693 111,790 1,169,872 207,633 2,747,189 1,029,136
160,046 1,356,944 (25,366) (93,720) (1,890,246) 50,383 642,928 16,249 85,000 7,250,000 11,253
85,000 7,250,000 11,253
160,046 1,356,944 (25,366) (8,720) 5,359,754 50,383 654,181 16,249 736,909 3,087,520 959,651 133,083 1,269,705 349,645 396,202 343,740 $896,955 $4,444,464 $934,285 $124,363 $6,629,459 $400,028 $1,050,383 $359,989 (Continued)

SPECIAL REVENUE FUNDS
REVIEW DRAFT 129 10/30/2023
Low and
Emergency Pt. San Pedro - Moderate
Medical Business Maintenance Income Measure A
Services Improvement Portion Housing Open Space

REVENUES
Taxes and special assessments $5,224,387 $141,705 $586,957 Use of money and properties 8,656 1,960 $30,833 5,504
Intergovernmental 712,173
Charges for services 3,708,025
Other revenue 400,679 8,845 54,407
Total Revenues 10,053,920 152,510 85,240 592,461

EXPENDITURES
Current:

General government 85,766
Public safety 8,422,019
Public works and parks 117,578 15,640
Culture and recreation 172,258
Capital outlay 710,466
Total Expenditures 8,422,019 117,578 85,766 898,364

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,631,901 34,932 (526) (305,903)

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances 1,631,901 34,932 (526) (305,903) Fund Balance, Beginning 832,600 140,036 1,872,570 780,956 Fund Balance, Ending $2,464,501 $174,968 $1,872,044 $475,053

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, 2023
REVIEW DRAFT 130 10/30/2023
Total
Measure C Park Non-Major
Measure G Wildfire Capital Bedroom Assessment Capital Open Governmental Cannabis Prevention Improvement Tax Districts Projects Space Funds $337,028 $1,822,040 $10,455 $9,565,303
9,185 4,325 $43,089 1,734 $969 $1,493 323,912
1,076,257 5,720,599
9,864,390
8,664 605,505 $3,925 1,174,889
346,213 2,911,286 648,594 12,189 969 3,925 1,493 26,649,093 113,339 744,268
39,320 2,328,057 11,602,881
1,094,130
9,462,584
1,422,230 4,088,639
152,659 2,328,057 1,422,230 26,992,502
193,554 583,229 (773,636) 12,189 969 3,925 1,493 (343,409) 3,264,200 12,817,453
(11,069) (7,388) (18,457)
(11,069) 3,264,200 (7,388) 12,798,996
182,485 583,229 2,490,564 12,189 (6,419) 3,925 1,493 12,455,587 968,251 803,182 1,496,419 130,150 305,142 17,936 117,755 17,057,940 $1,150,736 $1,386,411 $3,986,983 $142,339 $298,723 $21,861 $119,248 $29,513,527

SPECIAL REVENUE FUNDS CAPITAL PROJECTS FUNDS
REVIEW DRAFT 131 10/30/2023

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, 2023

SPECIAL REVENUE FUNDS
Recreation Revolving Baypoint Lagoons Assessment District Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes and special assessments $25,000 $25,368 $368
Use of money and properties $28,900 $44,505 $15,605 2,713 2,713 Intergovernmental 48,000 8,110 (39,890)
Charges for services 2,269,030 1,958,147 (310,883)
Other revenue 475 10,802 10,327
Total Revenues 2,346,405 2,021,564 (324,841) 25,000 28,081 3,081

EXPENDITURES
Current:

General government
Public safety
Public works and parks 208,655 7,589 201,066
Culture and recreation 4,770,850 4,350,403 420,447
Capital outlay
Total Expenditures 4,770,850 4,350,403 420,447 208,655 7,589 201,066

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,424,445) (2,328,839) 95,606 (183,655) 20,492 204,147

OTHER FINANCING SOURCES (USES)
Transfers in 2,207,000 2,207,000
Transfers out
Total Other Financing Sources (Uses) 2,207,000 2,207,000 NET CHANGE IN FUND BALANCE ($217,445) (121,839) $95,606 ($183,655) 20,492 $204,147 FUND BALANCES, BEGINNING OF YEAR 484,552 204,245
FUND BALANCES, END OF YEAR $362,713 $224,737
REVIEW DRAFT 132 10/30/2023
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) $25,000 $28,308 $3,308
$5,586 $5,586 $5,098 $5,098 10,010 10,010
$460,945 770,325 309,380
$187,500 177,582 (9,918) 2,980,000 3,183,904 203,904
32,304 32,304
187,500 183,168 (4,332) 3,440,945 3,991,631 550,686 25,000 38,318 13,318 1,720 (1,720)
177,428 120,622 56,806
23,418 (36) 23,454
3,931,097 3,725,218 205,879
177,428 122,342 55,086 3,931,097 3,725,218 205,879 23,418 (36) 23,454 10,072 60,826 50,754 (490,152) 266,413 756,565 1,582 38,354 36,772 $10,072 60,826 $50,754 ($490,152) 266,413 $756,565 $1,582 38,354 $36,772 511,631 344,552 771,508
$572,457 $610,965 $809,862
(Continued)
Community Facilities District

SPECIAL REVENUE FUNDS
REVIEW DRAFT 133 10/30/2023
Library
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes and special assessments $83,000 $244,286 $161,286 Use of money and properties 10,453 10,453 $48,755 $48,755 Intergovernmental $1,000 1,400,000 1,399,000
Charges for services 1,150 4,148 2,998
Other revenue 14,500 15,831 1,331
Total Revenues 83,000 254,739 171,739 16,650 1,468,734 1,452,084

EXPENDITURES
Current:

General government
Public safety
Public works and parks 191,114 94,693 96,421
Culture and recreation 111,790 44,833 66,957
Capital outlay 66,957 (66,957)
Total Expenditures 191,114 94,693 96,421 111,790 111,790

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (108,114) 160,046 268,160 (95,140) 1,356,944 1,452,084

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE ($108,114) 160,046 $268,160 ($95,140) 1,356,944 $1,452,084 FUND BALANCES, BEGINNING OF YEAR 736,909 3,087,520
FUND BALANCES, END OF YEAR $896,955 $4,444,464
Community Facilities District

SPECIAL REVENUE FUNDS
Loch Lomond Marina #2

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, 2023
REVIEW DRAFT 134 10/30/2023

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) $1,133,502 $1,132,972 ($530)
11,534 11,534 $1,395 $1,395 $21,280 $21,280
$80,000 82,847 2,847
$830,000 832,584 2,584
15,000 29,671 14,671 3,079 3,079
1,133,502 1,144,506 11,004 95,000 113,913 18,913 830,000 856,943 26,943 207,634 207,633 1
4,734,950 858,666 3,876,284
1,169,872 1,169,872
7,716,266 1,888,523 5,827,743
1,169,872 1,169,872 207,634 207,633 1 12,451,216 2,747,189 9,704,027 (36,370) (25,366) 11,004 (112,634) (93,720) 18,914 (11,621,216) (1,890,246) 9,730,970 85,000 85,000 7,250,000 7,250,000
85,000 85,000 7,250,000 7,250,000
($36,370) (25,366) $11,004 ($27,634) (8,720) $18,914 ($4,371,216) 5,359,754 $9,730,970 959,651 133,083 1,269,705
$934,285 $124,363 $6,629,459
(Continued)
REVIEW DRAFT 135 10/30/2023
Grants
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes and special assessments
Use of money and properties $37,000 $50,383 $13,383
Intergovernmental $2,401,572 $1,670,887 ($730,685)
Charges for services
Other revenue 1,177 1,177
Total Revenues 37,000 50,383 13,383 2,401,572 1,672,064 (729,508)

EXPENDITURES
Current:

General government 1,984,086 543,443 1,440,643
Public safety 595,415 485,230 110,185
Public works and parks
Culture and recreation
Capital outlay 463 463
Total Expenditures 2,579,964 1,029,136 1,550,828

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 37,000 50,383 13,383 (178,392) 642,928 821,320

OTHER FINANCING SOURCES (USES)
Transfers in 11,253 11,253
Transfers out
Total Other Financing Sources (Uses) 11,253 11,253
NET CHANGE IN FUND BALANCE $37,000 50,383 $13,383 ($167,139) 654,181 $821,320 FUND BALANCES, BEGINNING OF YEAR 349,645 396,202
FUND BALANCES, END OF YEAR $400,028 $1,050,383
Development Services
FOR THE YEAR ENDED JUNE 30, 2023

SPECIAL REVENUE FUNDS

BUDGET AND ACTUAL

CITY OF SAN RAFAEL

BUDGETED NONMAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
REVIEW DRAFT 136 10/30/2023
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) $11,797 $11,797 $5,227,120 $5,224,387 ($2,733)
4,452 4,452 8,656 8,656
181,100 712,173 531,073
2,800,000 3,708,025 908,025
450,000 400,679 (49,321)
16,249 16,249 8,658,220 10,053,920 1,395,700
8,821,778 8,422,019 399,759
8,821,778 8,422,019 399,759
16,249 16,249 (163,558) 1,631,901 1,795,459
16,249 $16,249 ($163,558) 1,631,901 $1,795,459
343,740 832,600
$359,989 $2,464,501
(Continued)

SPECIAL REVENUE FUNDS
REVIEW DRAFT 137 10/30/2023
Low and Moderate Income Housing
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes and special assessments $150,000 $141,705 ($8,295) Use of money and properties 1,960 1,960 $30,833 $30,833 Intergovernmental
Charges for services
Other revenue 8,000 8,845 845 54,407 54,407
Total Revenues 158,000 152,510 (5,490) 85,240 85,240

EXPENDITURES
Current:

General government $95,000 85,766 9,234
Public safety
Public works and parks 192,186 117,578 74,608
Culture and recreation
Capital outlay
Total Expenditures 192,186 117,578 74,608 95,000 85,766 9,234

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (34,186) 34,932 69,118 (95,000) (526) 94,474

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE ($34,186) 34,932 $69,118 ($95,000) (526) $94,474 FUND BALANCES, BEGINNING OF YEAR 140,036 1,872,570
FUND BALANCES, END OF YEAR $174,968 $1,872,044
Pt. San Pedro-Maintenance Portion

SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023

CITY OF SAN RAFAEL

BUDGETED NONMAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
REVIEW DRAFT 138 10/30/2023

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) $206,806 $586,957 $380,151 $300,000 $337,028 $37,028 $1,899,260 $1,822,040 ($77,220) 5,504 5,504 9,186 9,186 4,325 4,325
1,076,257 1,076,257
(1) 8,664 8,664
206,806 592,461 385,655 300,000 346,213 46,214 1,899,260 2,911,286 1,012,026 120,325 113,339 6,986
38,731 39,320 (589) 2,292,059 2,328,057 (35,998)
15,640 (15,640)
780,000 172,258 607,742
520,000 710,466 (190,466) 36,000 36,000
1,300,000 898,364 401,636 159,056 152,659 6,397 2,328,059 2,328,057 2 (1,093,194) (305,903) 787,291 140,944 193,554 52,610 (428,799) 583,229 1,012,028 (11,069) (11,069)
(11,069) (11,069)
($1,093,194) (305,903) $787,291 $140,944 182,485 $41,541 ($428,799) 583,229 $1,012,028 780,956 968,251 803,182
$475,053 $1,150,736 $1,386,411
REVIEW DRAFT 139 10/30/2023
REVIEW DRAFT 10/30/2023

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.

REVIEW DRAFT 141 10/30/2023

CITY OF SAN RAFAEL

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2023
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
ASSETS
Current Assets:

Cash and investments $4,241,953 $6,731,932 $6,490,168 $940,308 $7,638,401 Prepaid expenses 29,246
Capital assets:

Nondepreciable assets 910,869
Depreciable assets, net 5,364,636 5,562,990 1,025,717
Total Assets 10,517,458 12,294,922 7,545,131 940,308 7,638,401

LIABILITIES
Current Liabilities:

Accounts payable 1,813 3,500 205,453 31,747 4,065
Claims payable - due in one year 1,110,010
Long-term debt - due in one year 21,755
Subscription liabilities - due in one year 221,166
Non-current Liabilities:

Claims payable - due in more than one year 3,553,366
Long-term debt - due in more than one year 121,463
Subscription liabilities - due in more than one year 752,008 Total Liabilities 145,031 3,500 1,178,627 31,747 4,667,441 NET POSITION:

Net investment in capital assets 6,132,287 5,562,990 52,543 Unrestricted 4,240,140 6,728,432 6,313,961 908,561 2,970,960 Total Net Position $10,372,427 $12,291,422 $6,366,504 $908,561 $2,970,960 REVIEW DRAFT 142 10/30/2023
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total $11,921,344 $530,675 $2,459,325 $457,513 $646,439 $236,090 $494,184 $42,788,332 29,246
910,869
11,953,343
11,921,344 530,675 2,459,325 457,513 646,439 236,090 494,184 55,681,790 1,171 3,674 11,494 55,272 494,184 812,373
1,776,620 2,886,630
21,755
221,166
9,346,702 12,900,068
121,463
752,008
11,124,493 3,674 11,494 55,272 494,184 17,715,463
11,747,820
796,851 527,001 2,459,325 446,019 646,439 180,818 26,218,507 $796,851 $527,001 $2,459,325 $446,019 $646,439 $180,818 $37,966,327 REVIEW DRAFT 143 10/30/2023
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance

OPERATING REVENUES
Charges for current services $1,000,000 $1,806,860 $2,406,890 $1,268,580 $2,364,880 Other operating revenues 229,857
Total Operating Revenues 1,000,000 1,806,860 2,406,890 1,268,580 2,594,737

OPERATING EXPENSES
Personnel 877,845 265,366
Insurance premiums and claims 2,583,472
Maintenance and repairs 6,691 58,690
General and administrative 119,185 1,885,542 338,305 170,322 Depreciation expense 293,708 916,227 280,847
Total Operating Expenses 419,584 974,917 2,166,389 1,216,150 3,019,160 Operating Income (Loss) 580,416 831,943 240,501 52,430 (424,423)

NONOPERATING REVENUES (EXPENSES)
Investment income 49,870 83,100 79,683 11,024 62,198
Interest expense (59,271)
Miscellaneous revenues
Loss from disposal of capital assets (712)
Total Nonoperating
Revenues (Expenses) 49,870 83,100 19,700 11,024 62,198
Net income (loss) before contributions
and transfers 630,286 915,043 260,201 63,454 (362,225)

TRANSFERS
Transfers in 2,385,000
Transfers out (11,253) (25,013)
Net transfers (11,253) 2,359,987
Change in Net Position 630,286 915,043 248,948 63,454 1,997,762 NET POSITION, BEGINNING OF YEAR 9,742,141 11,376,379 6,117,556 845,107 973,198 NET POSITION, END OF YEAR $10,372,427 $12,291,422 $6,366,504 $908,561 $2,970,960

CITY OF SAN RAFAEL

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2023
REVIEW DRAFT 144 10/30/2023
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total $2,507,634 $465,707 $2,537,541 $713,526 $672,221 $2,616,744 $18,360,583 901,026 2,991 1,133,874
2,507,634 465,707 3,438,567 713,526 675,212 2,616,744 19,494,457 224,593 2,550,185 3,917,989
2,726,272 333,266 3,369,834 9,012,844
98,629 164,010
193,045 44,198 $2,000 401,658 582,394 95,535 3,832,184
1,490,782
3,143,910 377,464 2,000 3,369,834 401,658 681,023 2,645,720 18,417,809 (636,276) 88,243 (2,000) 68,733 311,868 (5,811) (28,976) 1,076,648 150,298 5,736 29,166 22,050 5,673 2,766 501,564
(59,271)
28,976 28,976
(712)
150,298 5,736 29,166 22,050 5,673 2,766 28,976 470,557
(485,978) 93,979 27,166 90,783 317,541 (3,045) 1,547,205 1,100,000 3,485,000
(683,750) (720,016)
416,250 2,764,984
(485,978) 93,979 443,416 90,783 317,541 (3,045) 4,312,189 1,282,829 433,022 2,015,909 355,236 328,898 183,863 33,654,138 $796,851 $527,001 $2,459,325 $446,019 $646,439 $180,818 $37,966,327 REVIEW DRAFT 145 10/30/2023

CITY OF SAN RAFAEL

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $1,018,165 $1,806,860 $2,406,890 $1,268,580 $2,364,880 Cash payments to suppliers for goods and services (174,913) (78,428) (1,795,720) (312,093) (2,782,857) Cash payments to employees for salaries and benefits (877,845) (265,366) Other operating revenues 229,857
Cash Flows from Operating Activities 843,252 1,728,432 611,170 78,642 (453,486)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Miscellaneous revenues
Interfund revenues 2,385,000
Interfund payments (11,253) (25,013)
Cash Flows from Noncapital
Financing Activities (11,253) 2,359,987

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Payment on note payable (21,754)
Payment on subscription liability (212,258)
Payment on subscription interest (59,271)
Acquisition and construction of capital assets (24,362) (1,439,527) Proceeds from sale of property
Cash Flows from Investing Activities (46,116) (1,439,527) (271,529)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 49,870 83,100 79,683 11,024 62,198
Cash Flows from Investing Activities 49,870 83,100 79,683 11,024 62,198 Net increase (decrease) in cash and cash equivalents 847,006 372,005 408,071 89,666 1,968,699 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 3,394,947 6,359,927 6,082,097 850,642 5,669,702 CASH AND CASH EQUIVALENTS, END OF YEAR $4,241,953 $6,731,932 $6,490,168 $940,308 $7,638,401 Reconciliation of operating income (loss) to net cash
provided by operating activities:

Operating income (loss) $580,416 $831,943 $240,501 $52,430 ($424,423) Adjustments to reconcile operating income
to cash flows from operating activities:

Depreciation 293,708 916,227 280,847
Net change in assets and liabilities:

Grants receivable 18,165
Prepaids (24,786)
Accounts payable (49,037) (19,738) 114,608 26,212 4,065 Claims payable (33,128)
Net Cash Provided by (Used in) Operating Activities $843,252 $1,728,432 $611,170 $78,642 ($453,486) NON-CASH TRANSACTIONS:

Retirement of capital assets ($712)
REVIEW DRAFT 146 10/30/2023
OPEB/
Workers' Dental Employee Employee Radio Telephone Sewer Compensation Insurance Retirement Retirement Replacement Replacement Maintenance Total $2,507,634 $465,707 $2,537,541 $713,526 $672,221 $2,616,744 $18,378,748 (2,703,258) (381,200) ($2,000) (3,391,746) (401,658) (656,752) (2,391,274) (15,071,899) (224,593) (1,367,804)
901,026 2,991 1,133,874
(420,217) 84,507 (2,000) 46,821 311,868 18,460 225,470 3,072,919 28,976 28,976
1,100,000 3,485,000
(683,750) (720,016)
416,250 28,976 2,793,960
(21,754)
(212,258)
(59,271)
(1,463,889)
(1,757,172)
150,298 5,736 29,166 22,050 5,673 2,766 501,564
150,298 5,736 29,166 22,050 5,673 2,766 501,564
(269,919) 90,243 443,416 68,871 317,541 21,226 254,446 4,611,271 12,191,263 440,432 2,015,909 388,642 328,898 214,864 239,738 38,177,061 $11,921,344 $530,675 $2,459,325 $457,513 $646,439 $236,090 $494,184 $42,788,332 ($636,276) $88,243 ($2,000) $68,733 $311,868 ($5,811) ($28,976) $1,076,648 1,490,782
18,165
(24,786)
(2,045) (3,736) (21,912) 24,271 254,446 327,134
218,104 184,976
($420,217) $84,507 ($2,000) $46,821 $311,868 $18,460 $225,470 $3,072,919 ($712)
REVIEW DRAFT 147 10/30/2023
REVIEW DRAFT 10/30/2023
San Francisco Bay Trail, San Rafael

STATISTICAL SECTION
REVIEW DRAFT 10/30/2023
REVIEW DRAFT 10/30/2023

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.

REVIEW DRAFT 151 10/30/2023
(accrual basis of accounting)
2014 (a) 2015 (a) 2016 (a) 2017
Governmental activities
Net investment in capital assets $190,286,275 $190,621,085 $193,707,175 $199,202,842 Restricted 37,339,141 33,389,224 31,286,725 29,225,643
Unrestricted (196,824) (82,336,534) (93,273,480) (112,913,181) Total governmental activities net position $227,428,592 $141,673,775 $131,720,420 $115,515,304 Business-type activities
Net investment in capital assets $10,786,591 $10,744,952 $10,958,058 $10,968,642 Unrestricted 2,049,957 (938,519) (1,136,050) (871,620)
Total business-type activities net position $12,836,548 $9,806,433 $9,822,008 $10,097,022 Primary government
Net investment in capital assets $201,072,866 $201,366,037 $204,665,233 $210,171,484 Restricted 37,339,141 33,389,224 31,286,725 29,225,643
Unrestricted 1,853,133 (83,275,053) (94,409,530) (113,784,801) Total primary government net position $240,265,140 $151,480,208 $141,542,428 $125,612,326 (a) The City adjusted certain beginning balances during fiscal years 2013-2014, 2014-2015 and 2016-2017.

Financial data shown for proceeding years were not adjusted for the presentation.

CITY OF SAN RAFAEL

NET POSITION BY COMPONENT
Last Ten Fiscal Years
($130,000)
($80,000)
($30,000)
$20,000
$70,000
$120,000
$170,000
$220,000
$270,000
$320,000
2014 (a) 2015 (a) 2016 (a) 2017 2018 2019 2020 2021 2022 2023 Thousands
Net investment in capital assets Restricted Unrestricted REVIEW DRAFT 152 10/30/2023
□ • •
2018 2019 2020 2021 2022 2023
$217,170,376 $231,844,210 $230,737,025 $228,252,998 $246,437,706 $259,204,102 25,549,583 23,288,874 23,522,748 36,175,158 36,668,766 46,773,333 (122,577,233) (118,215,177) (116,133,437) (107,929,957) (48,883,395) (24,466,269) $120,142,726 $136,917,907 $138,126,336 $156,498,199 $234,223,077 $281,511,166 $10,951,518 $11,023,426 $11,104,751 $11,174,601 $11,256,222 $11,454,000 (886,848) (1,180,121) (1,204,307) (2,205,300) (1,189,003) (653,194) $10,064,670 $9,843,305 $9,900,444 $8,969,301 $10,067,219 $10,800,806 $228,121,894 $242,867,636 $241,841,776 $239,427,599 $257,693,928 $270,658,102 25,549,583 23,288,874 23,522,748 36,175,158 36,668,766 46,773,333 (123,464,081) (119,395,298) (117,337,744) (110,135,257) (50,072,398) (25,119,463) $130,207,396 $146,761,212 $148,026,780 $165,467,500 $244,290,296 $292,311,972 REVIEW DRAFT 153 10/30/2023
2014 2015 2016 2017
Expenses
Governmental Activities:

General government $9,085,672 $9,099,858 $12,952,983 $10,996,269 Public safety 43,800,158 39,968,631 55,399,798 44,366,734 Public works and parks 22,125,336 16,893,164 22,929,289 19,845,719 Community development 3,451,244 3,128,373 4,307,269 4,242,743 Culture and recreation 11,846,818 11,198,151 15,026,680 14,131,000 Interest on long-term debt and fiscal charges 327,350 284,288 277,263 271,263 Total Governmental Activities Expenses 90,636,578 80,572,465 110,893,282 93,853,728 Business-Type Activities:

Parking services 4,125,476 4,249,597 4,762,851 4,188,152 Total Business-Type Activities Expenses 4,125,476 4,249,597 4,762,851 4,188,152 Total Primary Government Expenses $94,762,054 $84,822,062 $115,656,133 $98,041,880 Component Unit:

San Rafael Sanitation District $11,378,055 $11,375,239 $11,654,767 $11,255,194 Program Revenues
Governmental Activities:

Charges for services:

General government $2,838,940 $1,379,523 $526,495 $421,393 Public safety 6,014,034 4,966,251 4,939,658 4,264,939
Public works and parks 6,101,460 3,078,267 5,157,289 1,804,698 Community development 3,279,251 3,796,684 4,004,178 3,850,107 Culture and recreation 6,417,003 6,537,646 6,683,059 6,941,013 Operating grants and contributions 4,698,142 4,185,450 4,678,338 3,965,351 Capital grants and contributions 762,719 1,308,027 1,470,953 1,702,993 Total Government Activities Program Revenues 30,111,549 25,251,848 27,459,970 22,950,494 Business-Type Activities:

Charges for services:

Parking services 4,485,394 5,173,557 5,212,181 5,268,991 Total Business-Type Activities Program Revenues 4,485,394 5,173,557 5,212,181 5,268,991 Total Primary Government Program Revenues $34,596,943 $30,425,405 $32,672,151 $28,219,485 Component Unit:

San Rafael Sanitation District
Charges for service $13,732,496 $14,629,758 $15,414,530 $16,014,016 Operating grants and contributions 36,945
Capital grants and contributions 79,245
Total Component Unit Program Revenues $13,732,496 $14,629,758 $15,414,530 $16,130,206 Net (Expense)/Revenue
Governmental Activities ($60,525,029) ($55,320,617) ($83,433,312) ($70,903,234) Business-Type Activities 359,918 923,960 449,330 1,080,839 Total Primary Government Net Expense ($60,165,111) ($54,396,657) ($82,983,982) ($69,822,395) Component Unit Activities $2,354,441 $3,254,519 $3,862,215 $4,875,012

CITY OF SAN RAFAEL

CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
REVIEW DRAFT 154 10/30/2023
2018 2019 2020 2021 2022 2023
$9,835,941 $11,967,641 $15,629,601 $12,254,642 $10,458,884 $11,162,650 53,231,197 49,899,296 50,000,809 54,736,561 34,379,474 49,903,663 22,084,433 19,270,613 21,661,442 20,749,666 14,030,717 23,353,510 4,040,195 5,781,826 5,314,692 5,804,134 2,835,173 4,436,659 13,285,563 12,819,429 11,828,353 10,619,181 7,430,968 10,723,168 884,336 1,848,263 1,974,834 1,935,532 2,004,572 1,793,203 103,361,665 101,587,068 106,409,731 106,099,716 71,139,788 101,372,853 4,627,716 5,038,553 4,491,375 3,748,667 2,226,556 3,435,551 4,627,716 5,038,553 4,491,375 3,748,667 2,226,556 3,435,551 $107,989,381 $106,625,621 $110,901,106 $109,848,383 $73,366,344 $104,808,404 $12,235,868 $12,601,257 $13,853,263 $13,790,905 $12,892,687 $13,541,927 $517,542 $377,606 $394,882 $388,833 $1,039,816 $383,890 5,628,478 5,304,832 5,824,555 5,332,486 6,302,852 7,063,009 2,362,375 4,158,338 3,082,495 2,719,148 2,996,881 3,146,404 3,814,892 4,312,259 5,470,010 8,390,282 4,493,292 4,982,748 6,819,303 5,750,846 4,370,442 2,932,869 4,105,520 5,158,806 5,142,670 4,584,855 5,545,731 5,132,596 22,520,880 6,763,815 974,603 8,042,524 1,348,640 8,718,764 9,867,883 18,438,231 25,259,863 32,531,260 26,036,755 33,614,978 51,327,124 45,936,903 5,203,585 5,362,016 5,063,318 3,351,864 3,836,881 4,682,140 5,203,585 5,362,016 5,063,318 3,351,864 3,836,881 4,682,140 $30,463,448 $37,893,276 $31,100,073 $36,966,842 $55,164,005 $50,619,043 $16,829,908 $16,964,083 $16,874,361 $16,945,721 $16,458,113 $16,638,611 58,440 5,907 5,719 5,609 5,568 5,531
105,734 1,433,871 175,217 277,752 517,752 175,481
$16,994,082 $18,403,861 $17,055,297 $17,229,082 $16,981,433 $16,819,623 ($78,101,802) ($69,055,808) ($80,372,976) ($72,484,738) ($19,812,664) ($55,435,950) 575,869 323,463 571,943 (396,803) 1,610,325 1,246,589
($77,525,933) ($68,732,345) ($79,801,033) ($72,881,541) ($18,202,339) ($54,189,361) $4,758,214 $5,802,604 $3,202,034 $3,438,177 $4,088,746 $3,277,696 (Continued)
REVIEW DRAFT 155 10/30/2023
2014 2015 2016 2017
General Revenues and Other Changes in Net Position
Governmental Activities:

Taxes:

Property $18,439,619 $19,039,443 $19,998,567 $23,343,140 Sales 27,758,971 32,269,915 34,348,089 31,819,259
Paramedic 3,816,070 3,820,240 4,226,020 5,485,637
Transient occupancy 2,332,277 2,661,878 3,063,263 2,984,758 Franchise 3,260,958 3,272,390 3,418,277 3,610,824
Business license 2,588,728 2,670,071 2,824,664 2,774,803 Other 3,452,171 3,295,751 3,465,193 1,824,830
Investment earnings 184,171 216,066 300,091 210,628
Gain (loss) from sale of capital assets
Miscellaneous 1,140,743 2,254,901 1,387,315 2,448,604
Transfers 449,917 432,630 448,478 536,000
Total Government Activities 63,423,625 69,933,285 73,479,957 75,038,483 Business-Type Activities:

Investment earnings 4,375 7,008 14,723 10,810
Gain (loss) from sale of capital assets
Transfers (449,917) (432,630) (448,478) (536,000)
Total Business-Type Activities (445,542) (425,622) (433,755) (525,190) Total Primary Government $62,978,083 $69,507,663 $73,046,202 $74,513,293 Component Unit:

San Rafael Sanitation District
Property Taxes $1,345,018 $1,319,852 $1,367,172 $1,528,047 Investment earnings 151,729 171,804 46,225 97,090
Miscellaneous
Aid from other governmental agencies 22,125 35,090
Total Component Unit $1,518,872 $1,526,746 $1,413,397 $1,625,137 Special Item
Governmental Activities $4,462,815
Component Unit Activities ($4,462,815)
Change in Net Position
Governmental Activities $2,898,596 $19,075,483 ($9,953,355) $4,135,249 Business-Type Activities (85,624) 498,338 15,575 555,649 Total Primary Government $2,812,972 $19,573,821 ($9,937,780) $4,690,898 Change in Net Position
Component Unit Activities $3,873,313 $318,450 $5,275,612 $6,500,149

CITY OF SAN RAFAEL

CHANGES IN NET POSITION
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
REVIEW DRAFT 156 10/30/2023
2018 2019 2020 2021 2022 2023
$24,627,373 $25,903,240 $26,491,505 $30,993,516 $32,324,129 $33,023,030 34,119,502 35,626,646 33,784,770 39,599,113 44,110,471 45,632,867 4,923,148 4,934,584 4,923,092 5,153,448 5,109,836 5,224,387 3,115,151 3,203,499 2,410,745 1,797,578 2,976,234 3,396,479 3,726,841 3,627,254 4,029,050 3,973,806 4,209,979 4,424,917 2,790,212 2,788,496 2,824,722 2,575,341 2,645,636 2,583,546 2,245,882 1,783,170 2,152,617 2,996,950 3,108,543 2,975,282 556,745 1,450,434 1,907,591 388,645 (1,424,183) 1,708,860 26,784 989,991
5,991,713 5,904,968 2,470,926 2,813,015 2,965,697 3,233,349 632,657 608,698 586,387 538,405 521,209 521,322
82,729,224 85,830,989 81,581,405 90,856,601 97,537,542 102,724,039 24,436 63,870 71,583 4,065 8,802 8,320
(632,657) (608,698) (586,387) (538,405) (521,209) (521,322) (608,221) (544,828) (514,804) (534,340) (512,407) (513,002) $82,121,003 $85,286,161 $81,066,601 $90,322,261 $97,025,135 $102,211,037 $1,620,584 $1,727,221 $1,833,137 $1,888,197 $2,086,682 $2,129,197 234,379 519,793 876,369 48,614 (406,535) 1,328,202
10,690 7,768 489 11,759
$1,865,653 $2,254,782 $2,709,995 $1,936,811 $1,680,147 $3,469,158 $4,627,422 $16,775,181 $1,208,429 $18,371,863 $77,724,878 $47,288,089 (32,352) (221,365) 57,139 (931,143) 1,097,918 733,587
$4,595,070 $16,553,816 $1,265,568 $17,440,720 $78,822,796 $48,021,676 $6,623,867 $8,057,386 $5,912,029 $5,374,988 $5,768,893 $6,746,854 REVIEW DRAFT 157 10/30/2023
2014 (b) 2015 (b) 2016 (b) 2017
General Fund
Nonspendable $503,338 $399,299 $476,316 $508,446
Restricted
Committed
Assigned 6,866,149 12,374,002 16,440,910 14,900,945
Unassigned 1,588,500 1,772,577 1,295,041
Total General Fund $7,369,487 $14,361,801 $18,689,803 $16,704,432 All Other Governmental Funds
Nonspendable $8,719 $2,359 $9,449
Restricted 30,185,064 31,742,184 27,552,245 $25,812,405 Committed 2,185,825 931,871 3,799,421 3,491,708
Assigned 4,959,533 712,810 119,183 115,103
Unassigned
Total all other governmental funds $37,339,141 $33,389,224 $31,480,298 $29,419,216 (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)
($5,000)
$15,000
$35,000
$55,000
$75,000
$95,000
2014
(b)
2015
(b)
2016
(b)
2017 2018 2019 2020 2021 2022 2023
Thousands
Total Fund Balance
158
• - ,. •
,,, - - ,. ,. • ,. • ,,, -
,,, -
-
,
□
2018 2019 2020 2021 2022 2023 (a)
$1,008,234 $37,271 $7,540 $377,861 $95,279 $78,057
8,321,000 9,415,000 9,753,000
11,214,720 11,391,084 9,799,140 7,226,153 24,270,840 17,272,274 1,104,216 920,885 664,667
$12,222,954 $12,532,571 $9,806,680 $16,845,899 $33,781,119 $27,767,998 $302,366 $27,627 $7,813 $89,761 $182,890
73,489,688 53,260,504 34,288,302 $36,043,515 36,443,519 46,449,334 1,754,983 1,901,271 1,884,153 1,831,036 1,514,355 4,008,844 115,942 118,139 120,920 116,842 117,755 119,248
(11,118)
$75,662,979 $55,307,541 $36,290,070 $37,991,393 $38,165,390 $50,760,316 159
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,
REVIEW DRAFT 160 10/30/2023
2017 2018 2019 2020 2021 2022 2023
$71,166,891 $74,893,789 $77,101,185 $76,410,697 $86,347,728 $93,604,982 $96,373,395 2,559,841 2,718,166 2,661,500 3,047,144 3,000,666 3,077,355 3,002,122 400,283 384,268 337,680 350,388 219,030 296,300 228,966 349,349 654,531 1,583,060 1,537,869 667,104 (1,597,714) 1,223,028 8,063,156 8,878,974 15,602,264 9,287,181 16,859,749 34,239,157 28,590,886 13,425,161 14,660,094 15,166,876 13,834,843 15,065,363 13,315,014 15,830,095 1,842,053 5,219,414 5,158,042 2,309,226 1,875,299 4,199,820 2,322,859 97,806,734 107,409,236 117,610,607 106,777,348 124,034,939 147,134,914 147,571,351 10,557,416 10,010,100 12,553,499 16,689,526 12,426,899 17,716,666 13,858,624 49,018,153 51,805,708 51,678,876 50,071,531 54,363,872 58,397,721 58,673,878 16,752,961 17,647,312 15,617,622 17,453,823 15,110,972 16,495,547 19,535,588 3,759,564 4,051,224 4,988,260 5,276,887 6,270,129 5,736,213 5,190,246 12,646,728 12,823,771 12,468,008 11,179,410 9,700,739 11,319,546 12,664,282 2,100,926 22,815,967 38,701,047 25,984,748 13,635,066 17,345,454 23,536,840 7,403,249
175,172 280,172 495,172 618,316 2,563,711 2,829,057 3,044,551 271,263 1,005,636 2,356,207 2,482,778 2,443,476 2,512,515 2,241,875 102,685,432 120,439,890 138,858,691 129,757,019 116,514,864 132,352,719 138,745,884 (4,878,698) (13,030,654) (21,248,084) (22,979,671) 7,520,075 14,782,195 8,825,467 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 14,576,818 (8,454,762) (68,373,222) (14,280,034) (12,585,216) (6,329,123) (5,114,742) (16,820,480) 832,245 46,544,542 1,202,263 1,236,309 1,220,467 2,327,022 (2,243,662) ($4,046,453) $33,513,888 ($20,045,821) ($21,743,362) $8,740,542 $17,109,217 $6,581,805

0.5% 1.3% 2.8% 3.0% 4.9% 4.6% 4.6%
REVIEW DRAFT 161 10/30/2023
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b) 2014 7,558,708,224 $ 2,009,718,415 $ 245,674,195 $ 130,594,237 $ 9,944,695,071 $ 402,261,887 $ 10,346,956,958 $ 10,346,956,958 $ 0.11985% 2015 7,991,224,952 2,120,065,908 249,864,918 115,675,852 10,476,831,630 417,217,272 10,894,048,902 10,894,048,902 0.11657% 2016 8,511,358,216 2,221,843,976 263,830,302 108,982,883 11,106,015,377 400,942,059 11,506,957,436 11,506,957,436 0.11672% 2017 9,025,896,811 2,390,814,514 267,468,956 135,689,202 11,819,869,483 423,545,667 12,243,415,150 12,243,415,150 0.11693% 2018 9,522,645,933 2,532,439,852 276,751,912 128,305,868 12,460,143,565 417,902,554 12,878,046,119 12,878,046,119 0.11709% 2019 10,042,494,232 2,681,917,170 285,601,803 107,472,477 13,117,485,682 409,129,431 13,526,615,113 13,526,615,113 0.11742% 2020 10,545,909,554 2,850,424,603 293,144,677 127,151,762 13,816,630,596 442,888,708 14,259,519,304 14,259,519,304 0.11724% 2021 11,011,781,157 2,956,073,592 305,080,963 143,953,920 14,416,889,632 460,690,899 14,877,580,531 14,877,580,531 0.11734% 2022 11,516,548,822 3,109,589,216 311,491,969 138,527,146 15,076,157,153 463,320,122 15,539,477,275 15,539,477,275 0.11734% 2023 12,306,902,659 3,227,380,341 332,424,829 156,067,190 16,022,775,019 492,746,700 16,515,521,719 16,515,521,719 0.11746% (a)
(b)
Data Source: Marin County Assessor 2012/13 - 2021/22 Combined Tax Rolls The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides. These values are considered to be full market values.

California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area.

CITY OF SAN RAFAEL

ASSESSED AND ESTIMATED ACTUAL

VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Unsecured Property Secured Property
REVIEW DRAFT 162 10/30/2023
Fiscal School Misc. Special
Year City County (1) Districts Districts Total
2014 0.154 0.295 0.7890 0.0461 1.2838 0.11985%
2015 0.154 0.295 0.7651 0.0461 1.2599 0.11657%
2016 0.154 0.295 0.7846 0.0695 1.3028 0.11672%
2017 0.154 0.295 0.8251 0.0553 1.3291 0.11693%
2018 0.154 0.295 0.8127 0.0661 1.3275 0.11709%
2019 0.154 0.295 0.8495 0.0650 1.3635 0.11742%
2020 0.154 0.295 0.8289 0.0635 1.3414 0.11724%
2021 0.154 0.295 0.8221 0.0678 1.3389 0.11734%
2022 0.154 0.295 0.7995 0.0678 1.3160 0.11734%
2023 0.154 0.295 0.7995 0.0678 1.3160 0.11746%
Notes:
(1) Like other cities, San Rafael includes several property tax rate areas with different rates. A mean average is indicated.

Data Source: Marin County Assessors Office 2013/14 - 2022/23 Tax Rate Tables

CITY OF SAN RAFAEL

PROPERTY TAX RATES

ALL OVERLAPPING GOVERNMENTS

LAST TEN FISCAL YEARS
Total
Direct Rate
REVIEW DRAFT 163 10/30/2023
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Dixie School Bonds 2000 N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.02920 Marin Community College Bonds 0.02040 0.01800 0.01650 0.01420 0.03380 0.03390 0.02690 0.02650 0.02750 0.02580 Marin Healthcare Bond 0.00000 0.00000 0.02350 0.00930 0.02010 0.01900 0.01750 0.02180 0.02180 0.02070 Miller Creek School Bonds 0.01500 0.01470 0.04170 0.03830 0.02090 0.03450 0.03280 0.03030 0.01950 0.01830 Ross Elementary School 0.06570 0.06030 0.06150 0.06030 0.06190 0.06180 0.05710 0.05800 0.05760 0.05500 Ross Valley School Bonds 0.05960 0.05700 0.05550 0.05370 0.05680 0.05390 0.05270 0.05190 0.04870 0.05260 San Rafael Elementary Bonds 0.03320 0.02620 0.02570 0.05350 0.05030 0.07290 0.07050 0.06950 0.07400 0.06860 San Rafael High Bonds 0.05130 0.04850 0.04710 0.07100 0.05680 0.06170 0.06000 0.05830 0.04630 0.05030 Tamalpais Union High School 0.03860 0.03520 0.03130 0.02880 0.02690 0.02580 0.02390 0.02260 0.02060 0.01950 Total Direct & Overlapping Tax Rates 1.28380 1.25990 1.30280 1.32910 1.32750 1.36350 1.34140 1.33890 1.31600 1.34000 City's Share of 1% Levy Per Prop 13 0.12306 0.12233 0.12233 0.12233 0.12233 0.12232 0.12232 0.12231 0.12231 0.12231 Total Direct Rate 0.11985 0.11657 0.11672 0.11693 0.11709 0.11742 0.11724 0.11734 0.11734 0.11746 Notes:

Data Source: Marin County Assessors Office 2013/14 - 2022/23 Tax Rate Tables (1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.

CITY OF SAN RAFAEL

PROPERTY TAX RATES

DIRECT & OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS (RATE PER $100 OF ASSESSED VALUE) REVIEW DRAFT 164 10/30/2023
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
California Corporate Center ACQ LLC $ 288,969,400 1.85% MGP XI Northgate LLC 227,517,623 1.44%
Kaiser 143,855,630 0.92%
NCP Multifamily LLC 120,334,902 0.74%
Pur San Rafael LLC 108,059,080 0.68%
Bre Properties, Inc 68,466,907 0.43%
South Valley Apartments LLC 58,002,597 0.37%
NCP Commercial LLC 56,338,212 0.35%
North Bay 4040 TT LLC 55,312,563 0.34% 43,244,721 0.42% Regency Center II Assoc LP 50,872,364 0.32% 43,570,118 0.42% Bay Apartment Communities Inc 41,487,664 0.40%
Northgate Mall Associates 136,409,102 1.32%
SR Corporation Center AC 108,029,829 1.04%
33 North Associates LLC 37,701,909 0.35%
Autodesk 36,232,837 0.36%
Sutter Health 50,624,561 0.49%
Robert Dickson Trust 46,092,851 0.45%
Marin Sanitary Service 38,913,644 0.35%
Subtotal $ 1,177,729,278 7.13% 582,307,236 $ 5.63%
Total Net Assessed Valuation:

Fiscal Year 2022-2023 $ 16,516,184,701
Fiscal Year 2013-2014 $ 10,346,956,958
FY 2022-2023 FY 2013-2014
CURRENT FY 2022/23 AND FY 2013/2014

PRINCIPAL PROPERTY TAX PAYERS

CITY OF SAN RAFAEL
REVIEW DRAFT 165 10/30/2023
Delinquent taxes
Fiscal as a Percent of
Year Rate Levies Allocations Collections Apportionments Delinquencies Allocations 2014 1.00 (2) $ 22,001,357 (2) $ 22,001,357 (2) 0.0%
2015 1.00 (2) 22,376,457 (2) 22,376,457 (2) 0.0%
2016 1.00 (2) 23,636,093 (2) 23,636,093 (2) 0.0%
2017 1.00 (2) 25,173,651 (2) 25,173,651 (2) 0.0%
2018 1.00 (2) 26,088,961 (2) 26,088,961 (2) 0.0%
2019 1.00 (2) 27,718,712 (2) 27,718,712 (2) 0.0%
2020 1.00 (2) 28,709,606 (2) 28,709,606 (2) 0.0%
2021 1.00 (2) 29,762,184 (2) 29,762,184 (2) 0.0%
2022 1.00 (2) 31,129,632 (2) 31,129,632 (2) 0.0%
2023 1.00 (2) 29,914,556 (2) 29,914,556 (2) 0.0%
Notes:
(1) Includes deductions for County property tax administration. (2) Information not applicable. All general purpose property taxes are levied by the county and allocated to other governmental entities.

CITY OF SAN RAFAEL
PROPERTY TAX LEVIES AND COLLECTIONS (1)

LAST TEN FISCAL YEARS
$6
$9
$12
$16
$19
$22
$25
$28
$31
$35
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Allocations Apportionments
REVIEW DRAFT 166 10/30/2023
___.--- ,,
- ,, ,,
- -...,
- -
Pension Lease
Fiscal Note Obligation Revenue
Year Payable Bonds Bonds Total
2014 $ 528,839 $ 4,490,000 $ 5,018,839
2015 453,667 4,490,000 4,943,667
2016 378,495 4,490,000 4,868,495
2017 303,323 4,390,000 4,693,323
2018 1,308,951 4,185,000 $ 53,612,097 59,106,048
2019 1,233,779 3,765,000 53,104,153 58,102,932
2020 1,084,462 3,320,000 52,596,209 57,000,671
2021 905,751 2,845,000 50,178,265 53,929,016
2022 890,555 2,340,000 47,600,321 50,830,876
2023 687,158 1,805,000 44,852,378 47,344,536
Parking Total Percentage
Fiscal Services Note Primary of Personal Per
Year Bonds Payable Total Government Income (a) Capita (a) 2014 6,186,403 $ 61,836 $ $ 6,248,239 $ 11,267,078 0.43% 191.41 2015 5,942,128 55,020 5,997,148 10,940,815 0.41% 180.60 2016 5,692,853 48,204 5,741,057 10,609,552 0.38% 174.38 2017 5,433,577 41,388 5,474,965 10,168,288 0.35% 167.65 2018 5,164,303 34,572 5,198,875 64,304,923 2.04% 1,070.93 2019 4,890,027 27,755 4,917,782 63,020,714 2.00% 1,053.73 2020 4,605,753 20,939 4,626,692 61,627,363 1.87% 1,044.25 2021 4,316,478 14,123 4,330,601 58,259,617 1.72% 962.01 2022 4,017,203 7,307 4,024,510 54,855,386 1.45% 919.14
2023 3,707,928 489 3,708,417 54,539,293 N/A N/A
In August 2012, the series 2003 parking services bonds were refunded with series 2012 refunding bonds.

Data Sources: City of San Rafael
State of California, Department of Finance (population) U.S. Department of commerce, Bureau of the Census (income) (a) See Schedule of Demographic and Economic Statistics for personal income and population data.

Governmental Activities
Business-Type Activities

LAST TEN FISCAL YEARS

RATIO OF OUTSTANDING DEBT BY TYPE

CITY OF SAN RAFAEL
$-
$10
$20
$30
$40
$50
$60
$70
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Total Governmental Total Business
REVIEW DRAFT 167 10/30/2023
a •
2022-23 Assessed Valuation: 16,515,650,963
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2023 % Applicable (1) Debt 6/30/2023 Marin Community College District $ 569,640,000 17.304% 98,570,506 $ San Rafael High School District 215,795,091 79.160% 170,823,394 Tamalpais Union High School District 74,340,000 0.066% 49,064 Miller Creek School District (Formerly Dixie School District) 27,642,000 67.204% 18,576,530 Ross School District 15,398,683 1.255% 193,253
Ross Valley School District 39,643,251 0.010% 3,964
San Rafael School District 159,776,681 84.625% 135,211,016 Marin Healthcare District 464,745,000 20.708% 96,239,395 Marin Emergency Radio Authority Parcel Tax Obligations 26,295,000 17.280% 4,543,776 City of San Rafael 1915 Act Bonds 1,075,200 100.000% 1,075,200 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 525,286,098 $ DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Marin County Certificates of Participation $ 73,930,000 17.280% 12,775,104 $ Marin County Pension Obligation Bonds 52,050,000 17.280% 8,994,240 Marin County Transit District General Fund Obligations - Marin Municipal Water District General Fund Obligations - Marin Community College District Certification of Participation 11,268,897 17.304% 1,949,970 San Rafael School District General Fund Obligations 2,630,000 84.625% 2,225,638 City of San Rafael General Fund Obligations 43,667,157 100.000% 43,667,157 (2) City of San Rafael Pension Obligations 1,805,000 100.000% 1,805,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 71,417,109 Less: City of San Rafael obligations supported by enterprise revenues 3,715,000 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 67,702,109 $ TOTAL GROSS DIRECT DEBT 45,472,157
TOTAL NET DIRECT DEBT 41,757,157
TOTAL OVERLAPPING DEBT 551,231,050
GROSS COMBINED TOTAL DEBT 596,703,207 (3)
NET COMBINED TOTAL DEBT 592,988,207
(2) Includes $687,157 PG&E notes.

Ratios to 2022-23 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 3.18%
Total Gross Direct Debt ($45,472,157) 0.28%
Total Net Direct Debt ($41,757,157) 0.25%
Gross Combined Total Debt 3.61%
Net Combined Total Debt 3.59%
Ratios to Redevelopment Incremental Valuation ($3,311,940,202) Total Overlapping Tax Increment Debt 0.06%
Data Source: Avenu Insights & Analytics, California Municipal Statistics, Inc. (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease June 30, 2023

COMPUTATION OF DIRECT AND OVERLAPPING DEBT

CITY OF SAN RAFAEL
REVIEW DRAFT 168 10/30/2023
ASSESSED VALUATION: $ 16,515,650,963
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) 619,336,911 LESS AMOUNT OF DEBT SUBJECT TO LIMIT: 50,830,876
LEGAL BONDED DEBT MARGIN $ 568,506,035
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2014 388,010,886 $ $ 5,018,839 $ 382,992,047 1.31%
2015 408,526,834 4,943,667 403,583,167 1.22%
2016 431,510,904 4,868,495 426,642,409 1.14%
2017 459,128,068 4,693,323 454,434,745 1.03%
2018 482,926,729 59,106,048 423,820,681 13.95%
2019 507,248,067 58,102,932 449,145,135 12.94%
2020 534,731,974 57,000,671 477,731,303 11.93%
2021 557,909,270 53,929,016 503,980,254 10.70%
2022 582,730,398 50,830,876 531,899,522 9.56%
2023 619,332,064 47,344,536 571,987,528 8.28%
NOTE: (a)
Source: City of San Rafael's Finance Department

CITY OF SAN RAFAEL

COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2023
California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth of that value.

REVIEW DRAFT 169 10/30/2023

CITY OF SAN RAFAEL

REVENUE BOND COVERAGE

PARKING FACILITY

LAST TEN FISCAL YEARS
Debt Service Requirements
Net Revenue
Fiscal Gross Operating Available for
Year Revenue (1) Expenses (2) Debt Service Principal Interest Total Coverage 2014 $ 4,489,769 $ 3,716,552 $ 773,217 $ 245,000 210,063$ $ 455,063 1.70 2015 5,180,554 4,031,161 1,149,393 245,000 205,163 450,163 2.55 2016 5,226,904 3,739,321 1,487,583 250,000 199,613 449,613 3.31 2017 5,279,801 2,425,281 2,854,520 260,000 192,038 452,038 6.31 2018 5,219,721 4,320,695 899,026 270,000 184,163 454,163 1.98 2019 5,425,883 4,283,754 1,142,130 275,000 176,025 451,025 2.53 2020 5,134,901 4,072,433 1,062,468 284,999 167,700 452,699 2.35 2021 3,355,929 3,332,327 23,602 290,000 161,288 451,288 0.05 2022 3,845,683 1,851,746 1,993,937 300,000 150,338 450,338 4.43 2023 4,690,455 3,071,480 1,618,974 310,000 143,588 453,588 3.57 Notes: On March 26, 2003, the City Financing Authority issued lease revenue bonds for the design and construction of a new parking facility.

On August 12, 2012, the City Financing Authority refunded the series 2003 lease revenue bonds with series 2012 lease revenue refunding bonds to take advantage of lower interest rates. (1) Includes all Parking Facility Operating Revenues and Non-operating Interest Revenue (2) Includes all Parking Facility Operating Expenses less Depreciation and Interest Data Source: San Rafael Finance Department Revenue and Expenditure Status Reports

0.00 1.00

2.00 3.00

4.00 5.00

6.00 7.00
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Coverage
REVIEW DRAFT 170 10/30/2023
-
Marin City Personal Per Capita Average
Calendar City County Population Income (2) Personal Unemployment Year Population (1) Population % of County (in thousands) Income (2) Rate (3) 2013 58,566 254,007 23.06% 2,538,895 $ $ 43,351 4.70%
2014 58,863 255,846 23.01% 2,621,228 44,531 4.50%
2015 60,582 258,972 23.39% 2,699,436 44,558 3.70%
2016 60,842 262,274 23.20% 2,817,497 46,308 3.40%
2017 60,651 263,604 23.01% 2,943,227 48,374 3.30%
2018 60,046 263,886 22.75% 3,152,985 52,509 2.30%
2019 59,807 262,879 22.75% 3,156,708 52,781 2.20%
2020 59,016 257,774 22.89% 3,301,286 55,938 6.70%
2021 60,560 257,135 23.55% 3,390,278 55,982 4.40%
2022 59,681 256,018 23.31% 3,789,444 63,494 2.50%
Source: (1) State of California, Department of Finance - Demographic Research Unit. The data represents the City's population as of January 1, of each year.
(2) US Censue Bureau, most recent American Community Survey (3) Unemployment Data: California Employment Development Department

CITY OF SAN RAFAEL

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN FISCAL YEARS
0%
5%
10%
15%
20%
25%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
City Population as a % of County
Population
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Personal Income (in thousands)
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Per Capita Personal Income
0%
1%
2%
3%
4%
5%
6%
7%
8%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Average Citywide Unemployment Rate
REVIEW DRAFT 171 10/30/2023
I
2022
Employer # (A) # (A) # (A) # (A)
Kaiser Permanente 2,339 1.83% 2,339 1.82% 2,059 1.64% 2,014 6.22% BioMarin Pharmaceutical Inc. 950 0.74% 950 0.74% 950 0.76% 950 2.93% San Rafael Elementary/High Schools Dist(s 700 0.55% 700 0.55% 700 0.56% 700 2.16% City of San Rafael 420 0.33% 412 0.32% 405 0.32% 410 1.27% Dominican University of California 394 0.31% 394 0.31% 394 0.31% 421 1.30% Buckelew Programs 0.00% 0.00% 0.00% 103 0.32%
Lifehouse 0.00% 0.00% 0.00% 100 0.31%
EO Poducts 0.00% 0.00% 108 0.09% 150 0.46%
Toyota Marin 0.00% 0.00% 0.00% 141 0.44%
Ghilotti Bros., Inc. 298 0.23% 298 0.23% 298 0.24%
Community Action Marin 200 0.16% 200 0.16% 270 0.21%
Equator Coffees, LLC 95 0.07% 95 0.07% 88 0.07%
Totals 5,396 4.21% 5,388 4.20% 5,272 4.20% 4,989 15.40% # Number of FTE employees in Marin locations
(A) Percentage of total employment
Note: From the EDD website, it shows that the Total Average 2022 Employment in the City of San Rafael was 128,162 of which it is used as the denominator for the 2022 percentages are calculated.

Data Sources: State of California, Employment Development Department, Labor Market Information Division & North Bay Business Journal (Annual Book of Lists)
FISCAL YEAR 2022-2023

PRINCIPAL EMPLOYERS

LAST TEN CALENDAR YEARS

CITY OF SAN RAFAEL
2021 2020 2019
REVIEW DRAFT 172 10/30/2023
# (A) # (A) # (A) # (A) # (A) # (A)
2,092 6.62% 2,061 6.52% 662 2.02% 1,575 4.82% 1,637 5.26% 1,756 5.74% 700 2.22% 700 2.22% 650 1.98% 650 1.99% 600 1.93% 600 1.96% 410 1.30% 454 1.44% 577 1.76% 581 1.78% 666 2.14% 643 2.10% 319 1.01% 456 1.44% 485 1.48% 422 1.29% 354 1.14% 347 1.13% 106 0.34% 240 0.76% 186 0.57%
4,508 14.27% 5,650 17.88% 5,314 16.20% 5,620 17.19% 6,025 19.37% 6,079 19.87% 2018 2017 2016 2015 2014 2013
REVIEW DRAFT 173 10/30/2023
REVIEW DRAFT 10/30/2023
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
General Government 55.11 58.11 60.61 62.11 60.11 63.11 62.11 61.41 63.69 60.69 Public Safety 168.00 171.75 175.75 176.55 175.35 175.65 175.30 181.50 185.00 185.00 Public Works and Parks 61.00 62.00 62.00 63.00 66.67 66.00 68.00 69.00 70.00 70.00 Community Development 17.80 17.80 19.80 20.00 21.00 22.00 21.75 21.75 23.00 24.00 Culture and Recreation 83.66 84.23 84.25 84.35 87.35 85.82 78.07 78.07 78.07 83.07 Total 385.57 393.89 402.41 406.01 410.48 412.58 405.23 411.73 419.76 422.76 Data Source: City of San Rafael's Finance Department

LAST TEN FISCAL YEARS

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION

CITY OF SAN RAFAEL
0 50
100
150
200
250
300
350
400
450
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 FTE's General Government Public Safety Public Works and Parks Community Development Culture and Recreation REVIEW DRAFT 175 10/30/2023
a • • • •
2014 2015 2016 2017
Function/Program
Public safety:

Fire:

Inspection permit issued 261 282 198 233
Police:

Police calls for service 51,261 55,805 57,026 53,567
Law violations:

Part I crimes 2,289 2,533 2,523 2,392
Physical arrests (adult and juvenile) 3,227 3,450 3,453 2,526 Traffic violations 4,498 4,168 3,252 3,341
Parking violations 38,814 36,398 34,803 36,169
Public works
Street resurfacing (miles) (Eng Div) 9.00 6.40 6.76 2.32 Potholes repaired N/A N/A N/A N/A
Asphalt used for street repairs (tons) 10,700 11,000 7,195 5,800 Culture and recreation:

Recreation class participants 9,857 10,023 12,725 13,493 Recreation Facility Rentals
Childcare School-Age program participants
Library:

Items in collection 168,620 127,763 227,890 117,354
Total items borrowed 478,960 443,639 469,790 327,297
Note: N/A denotes information not available.

CITY OF SAN RAFAEL

OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
REVIEW DRAFT 176 10/30/2023
2018 2019 2020 2021 2022 2023
186 123 167 207 195 170
51,013 47,919 47,968 43,649 42,901 42,693
2,326 1,893 2,988 2,546 2,015 2,024
2,019 1,923 2,527 1,893 1,945 1,769
2,758 2,944 2,342 2,161 1,710 1,734
36,208 40,407 28,029 24,099 30,178 35,399

2.50 4.30 14.30 5.00 11.70 21
N/A N/A 967 1,368 1,024 1,335
4,730 7,200 5,885 3,650 5,100 3,411
12,842 N/A N/A N/A N/A
5,146 3,875 1,550 1,962 7,001
7,592 6,270 2,132 3,675 2,660
115,812 123,432 140,610 103,399 95,687 97,117
324,452 356,301 199,903 113,385 169,378 185,800
REVIEW DRAFT 177 10/30/2023
2014 2015 2016 2017
Function/Program
Public safety:

Fire stations 6 6 6 6
Police stations 1 1 1 1
Police Fleet
Public works
Miles of streets 173 173 173 173
Street lights 4,435 4,435 4,435 4,435
Parking District lights
Traffic Signals 89 89 89 89
Culture and recreation:

Community services:

City parks 20 20 20 20
City parks acreage 42 42 42 42
Playgrounds 14 14 14 14
City trails 20 20 20 20
Community gardens 1 1 1 1
Cultural Art Centers
Community centers 4 4 4 4
Senior centers 0 0 0 0
Sports centers 0 0 0 0
Performing arts centers 0 0 0 0
Swimming pools 1 1 1 1
Tennis courts 10 10 10 10
Basketball Courts 5 5 5 5
Baseball/softball diamonds 5 5 5 5
Soccer/football fields 2 2 2 2
Library:

City Libraries 2 2 2 2
Wastewater:

Miles of sanitary sewers 145 145 145 145
Data Source: City of San Rafael's Finance Department

CITY OF SAN RAFAEL

CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
REVIEW DRAFT 178 10/30/2023
2018 2019 2020 2021 2022 2023
6 6 6 6 66
1 1 1 1 11
173 173 173 173 173 173
4,435 4,435 4,435 4,435 4,448 4,448
89 89 90 90 90 90
20 20 24 24 24 24
42 42 99 99 99 99
14 14 14 14 14 14
20 20 20 20 20 20
1 1 2 2 22
1 1 11
4 4 3 3 33
0 0 0 0 00
0 0 0 0 00
0 0 0 0 00
1 1 1 1 11
10 10 10 10 10 10
5 5 6 6 66
5 5 5 5 55
2 2 2 2 22
2 2 2 2 22
145 145 145 145 145 145
REVIEW DRAFT 179 10/30/2023
REVIEW DRAFT 10/30/2023
REVIEW DRAFT 10/30/2023 11:17 AM

CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL
FOR THE YEAR ENDED JUNE 30, 2023
REVIEW DRAFT 10/30/2023 11:17 AM
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REVIEW DRAFT 10/30/2023 11:17 AM

CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL
For the Year Ended June 30, 2023
Table of Contents
Page
Memorandum on Internal Control .................................................................................................. 1 Schedule of Significant Deficiency ......................................................................................... 3 Schedule of Other Matters ...................................................................................................... 5 Status of Prior Year Significant Deficiencies ....................................................................... 11 Schedule of Prior Year Other Matters .................................................................................. 13 REVIEW DRAFT 10/30/2023 11:17 AM
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REVIEW DRAFT 10/30/2023 11:17 AM

MEMORANDUM ON INTERNAL CONTROL
To the City Council of
the City of San Rafael, California
In planning and performing our audit of the basic financial statements of the City of San Rafael (City) as of and for the year ended June 30, 2023, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore material weaknesses or significant deficiencies may exist that were not identified. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. However, as discussed below, we identified certain deficiencies in internal control that we consider to be significant deficiencies.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control included on the Schedule of Significant Deficiency to be a significant deficiency.

Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we believe are opportunities for strengthening internal controls and operating efficiency.

Government Auditing Standards require the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying Schedule of Significant Deficiency and Schedule of Other Matters. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
10/30/2023
REVIEW DRAFT 11:17 AM
1 Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
E [email protected]
w mazeassociates.com
REVIEW DRAFT 10/30/2023 11:17 AM
This communication is intended solely for the information and use of management, City Council, others within the organization, and agencies and pass-through entities requiring compliance with Government Auditing Standards, and is not intended to be and should not be used by anyone other than these specified parties.

Pleasant Hill, California
DATE
2 -

CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF SIGNIFICANT DEFICIENCY
REVIEW DRAFT 10/30/2023 11:17 AM
2023-01 Inaccurate Building Permit Fees – Prior Year Recommendation Not Implemented During the current year audit, we followed up on the status of the Significant Deficiency identified on the Status of Prior Year Significant Deficiency Item 2022-01. We found that the deficiency has not been addressed as of June 30, 2023. Therefore, it is deemed to be a current year Significant Deficiency. Details of the deficiency and management’s response is listed in the Status of Prior Year Significant Deficiency.

Management’s Response:

See Management’s Response to Current Year Status for the above deficiency as listed in the Status of Prior Year Significant Deficiency.
3 REVIEW DRAFT 10/30/2023 11:17 AM
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CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM
2023-02 Purchasing Policy Compliance and Clarification of Requirements - Prior Year Recommendation Not Implemented
During the current year audit, we followed up on the status of the Other Matter identified on the Status of Prior Year Other Matters Item 2022-02. We found that the matter has not been addressed as of June 30, 2023. Therefore, it is deemed to be a current year Other Matter. Details of the matter and management’s response is listed in the Status of Prior Year Other Matters.

Management’s Response:

See Management’s Response to Current Year Status for the above matter as listed in the Status of Prior Year Other Matters.
5 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM

NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE The following comment represents new pronouncements taking affect in the next few years. We have cited them here to keep you informed of developments.

EFFECTIVE FISCAL YEARS 2022, 2023 and 2024:

GASB 99 – Omnibus 2022
The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The practice issues addressed by this Statement are as follows:
• Classification and reporting of derivative instruments within the scope of Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, that do not meet the definition of either an investment derivative instrument or a hedging derivative instrument • Clarification of provisions in Statement No. 87, Leases, as amended, related to the determination of the lease term, classification of a lease as a short term lease, recognition and measurement of a lease liability and a lease asset, and identification of lease incentives • Clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, related to (a) the determination of the public-private and public-public partnership (PPP) term and (b) recognition and measurement of installment payments and the transfer of the underlying PPP asset
• Clarification of provisions in Statement No. 96, Subscription-Based Information Technology Arrangements, related to the subscription-based information technology arrangement (SBITA) term, classification of a SBITA as a short term SBITA, and recognition and measurement of a subscription liability
• Extension of the period during which the London Interbank Offered Rate (LIBOR) is considered an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap that hedges the interest rate risk of taxable debt • Accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance Program (SNAP)
• Disclosures related to nonmonetary transactions
• Pledges of future revenues when resources are not received by the pledging government 6 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM
GASB 99 – Omnibus 2022 (Continued)
• Clarification of provisions in Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, as amended, related to the focus of the government-wide financial statements
• Terminology updates related to certain provisions of Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position • Terminology used in Statement 53 to refer to resource flows statements.

The Requirements of this Statement are Effective as Follows:

The requirements in paragraphs 26–32 related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are effective upon issuance.

The requirements in paragraphs 11–25 related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter.

The requirements in paragraphs 4–10 related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter.

Earlier application is encouraged and is permitted by individual topic.

How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature. Consistent authoritative literature enables governments and other stakeholders to more easily locate and apply the correct accounting and financial reporting provisions, which improves the consistency with which such provisions are applied. The comparability of financial statements also will improve as a result of this Statement. Better consistency and comparability improve the usefulness of information for users of state and local government financial statements.
7 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM
EFFECTIVE FISCAL YEAR 2023/24:

GASB 100 – Accounting for Changes and Error Corrections The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting—understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements.

This Statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This Statement requires that (a) changes in accounting principles and error corrections be reported retroactively by restating prior periods, (b) changes to or within the financial reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in accounting estimates be reported prospectively by recognizing the change in the current period. The requirements of this Statement for changes in accounting principles apply to the implementation of a new pronouncement in absence of specific transition provisions in the new pronouncement. This Statement also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the financial statements.

This Statement requires disclosure in notes to financial statements of descriptive information about accounting changes and error corrections, such as their nature. In addition, information about the quantitative effects on beginning balances of each accounting change and error correction should be disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to beginning balances as restated.

Furthermore, this Statement addresses how information that is affected by a change in accounting principle or error correction should be presented in required supplementary information (RSI) and supplementary information (SI). For periods that are earlier than those included in the basic financial statements, information presented in RSI or SI should be restated for error corrections, if practicable, but not for changes in accounting principles.
8 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM
EFFECTIVE FISCAL YEAR 2024/25:

GASB 101 – Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.

Recognition And Measurement
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.

This Statement requires that a liability for certain types of compensated absences—including parental leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used.

This Statement also establishes guidance for measuring a liability for leave that has not been used, generally using an employee’s pay rate as of the date of the financial statements. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities.

With respect to financial statements prepared using the current financial resources measurement focus, this Statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources.

Notes To Financial Statements
This Statement amends the existing requirement to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability (as long as they identify it as a net change). In addition, governments are no longer required to disclose which governmental funds typically have been used to liquidate the liability for compensated absences. 9 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM
GASB 101 – Compensated Absences (Continued)
How the Changes in this Statement Will Improve Financial Reporting The unified recognition and measurement model in this Statement will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. In addition, the model can be applied consistently to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave.

The model also will result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences.
10 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

STATUS OF PRIOR YEAR SIGNIFICANT DEFICIENCIES
REVIEW DRAFT 10/30/2023 11:17 AM
2022-01 Inaccurate Building Permit Fees
The rates charged in the City’s permit billing system should be consistent with the City’s Master Fee Schedule approved by City Council and on the City’s website.

As noted in the prior year Memorandum on Internal Control comment 2021-01, we again noted that the rates charged in the City’s permit billing system are not consistent with the City’s Master Fee Schedule approved by City Council.

During the fiscal year 2022 audit, we tested twenty-five receipts and recalculated the fees using the City’s Master Fee Schedule and noted five receipts for building permits that we recalculated, but could not arrive at the same amount charged. Based on our recalculations using the City’s Master Fee Schedule, the building permit fees that should have been charged, and the related amount undercharged were as follows:

Receipt Number
Building Permit Fee
Charged
Building Permit Fee That
Should Have Been
Charged Based on
Master Fee Schedule Undercharged
003-00001681 $3,997.00 $4,820.20 $(823.20)
017-00000203 2,317.00 3,140.20 (823.20)
017-00001783 1,210.00 1,714.00 (504.00)
003-00003680 918.10 1,251.64 (333.54)
003-00004064 947.50 1,285.60 (338.10)
We understand that the Community Development Department (CDD) staff determined that the Master Fee Schedule approved by City Council and posted on the City’s website included incorrect building permit fees and CDD staff believed that the correct fees had been charged.

We also noted one receipt for an investigation fee (receipt # 003-00003019) and one receipt for a building permit renewal fee (receipt # 017-00001262) that were not listed on the revised Master Fee Schedule, nor supported by an ordinance or resolution. The CDD staff indicated that the Master Fee Schedule is being updated to incorporate these fees that were charged.

Although City staff believe that the correct fees were charged for the building permits, investigation fee and building permit renewal fees, we were unable to verify that the correct fees were charged based on the Master Fee Schedule approved by City Council. Therefore, the City’s building permit fees, investigation fees, fire prevention inspection fees and building permit renewal fees revenues may be understated.

We understand that the City plans to present an updated Master Fee Schedule to Council to ensure that accurate charges are approved and presented on the City’s website. We recommend that the City develop a process to ensure that the fees approved by City Council are properly entered into the City’s permit billing system to ensure proper fees are charged. In addition, we recommend that the City ensure that the Master Fee Schedule on the City’s website agrees to the Master Fee Schedule approved by City Council. 11 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

STATUS OF PRIOR YEAR SIGNIFICANT DEFICIENCIES
REVIEW DRAFT 10/30/2023 2:22 PM
2022-01 Inaccurate Building Permit Fees (Continued)
Current Status:

We understand that the City Council has approved an updated Master Fee Schedule, effective in July 2023, and that the City has developed a process to ensure that accurate fees were entered into the City’s permit billing system and that charges were approved and presented on the City’s website.

Management’s Response:

The revised Master Fee Schedule was approved by council with the December 19, 2022, meeting, however, because the fee schedule related to fiscal 2023-24 the website was not updated until July 1, 2023, when it became effective. Subsequently, the City’s various billing systems were reviewed for accuracy to ensure agreement with the approved schedule and no variances were noted.
2021-01 Inaccurate Building Permit Fees
The rates charged in the City’s permit billing system should be consistent with the City’s Master Fee Schedule approved by City Council and on the City’s website.

We tested twenty-five receipts and recalculated the fees using the City’s Master Fee Schedule and we noted one receipt for a building permit in the amount of $78,946 that we recalculated, but could not arrive at the same amount. Based on our recalculation using the City’s Master Fee Schedule, the building permit fee that should have been charged was $83,137.

The Community Development Department (CDD) staff determined that the Master Fee Schedule approved by City Council and posted on the City’s website included incorrect building permit fees and CDD staff believed that the correct fees had been charged, resulting in the fee of $78,946.

Although City staff believe that the correct fees were charged, we were unable to verify that the correct fees were charged based on the Master Fee Schedule approved by City Council. Therefore, the City’s building permit fees may be understated due to the use of a lower fee schedule.

We understand that the City plans to present an updated Master Fee Schedule to Council to ensure that accurate charges are approved and presented on the City website. We recommend that the City develop a process to ensure that the fees approved by City Council are properly entered into the City’s permit billing system to ensure proper fees are charged. In addition, we recommend that the City ensure that the Master Fee Schedule on the City’s website agree to the Master Fee Schedule approved by City Council.

Current Status:

See current year comment 2023-01 and Status of Prior Year Significant Deficiencies comment 2022-01.
12 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

STATUS OF PRIOR YEAR OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM
2022-02 Purchasing Policy Compliance and Clarification of Requirements The City’s Purchasing Policy should indicate when the use of a purchase order, contract, or both is required, including any exceptions, as necessary. The City’s Purchasing Policy defines a contract as including, but not being “limited to, a purchase order, a contract for services, a contract for maintenance, leasing of property or equipment, an addendum or change order, a letter agreement, a memorandum of understanding, or memorandum of agreement.” The Purchasing Policy defines a purchase order as “a standardized form to be utilized in contracts for materials, supplies, labor and equipment.” The Purchasing Policy does not specify whether a purchase order and a contract are required for all purchases, but we understand it is the City’s practice to obtain both documents for purchases.

During the fiscal year 2022 audit, we selected twenty-five disbursements for testing of supporting documentation and compliance with the City’s Purchasing Policy and noted two disbursements for which the disbursements were supported by a contract, however, they were not supported by a purchase order.

We also noted one disbursement that was supported by a purchase order, but not a contract. For similar types of transactions tested, we noted that these types of disbursements were supported by both a purchase order and a contract.

For one of the disbursements noted above, City staff indicated that the staff overseeing the initial project and contract is no longer with the City and that a purchase order was not created for the vendor and contract for the project due to a staff oversight. And, for the second disbursement noted above, City staff indicated that they did not think it was necessary for a purchase order to be created as the vendor is used for on-call repair sidewalk repair services. Lastly, for the third disbursement noted above, City staff indicated that the purchase order was created without a contract, due to a staff oversight. Although that appears reasonable, there does not appear to be such an exemption in the City’s Purchasing Policy for the use of a contract, purchase order or both. Therefore, the City is not in compliance with the Purchasing Policy for these purchases.

We recommend that the City ensure all purchases comply with purchase documentation requirements and revise the Purchasing Policy to clarify those requirements to reflect current practices.

Current Status:

During our fiscal year 2023 audit, we noted that the City has not revised the Purchasing Policy to clarify when a purchase order, contract, or both are required, as well as any broad exemptions.

We also noted that the City has not developed a process to ensure that all purchases comply with purchase documentation requirements of contracts and purchase orders as the process still remains decentralized.

Management’s Response:

Management concurs with the need to update the City’s Purchasing Policy and procedures to ensure appropriate level of internal controls, compliance with policy requirements and alignment with best practices. This effort has been hampered by staff turnover, vacancies in key positions and competing priorities. Current management has prioritized review of purchasing and contract administration protocols, to include updating policies, documentation of procedures, staff training and better utilization of the City’s financial ERP system to monitor approvals, activity, and compliance.
13 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

STATUS OF PRIOR YEAR OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM
2022-03 Current Contracts
The City should ensure that all contracts with outside parties are current.

During the fiscal year 2022 audit, we selected twenty-five disbursements for testing of supporting documentation and noted one disbursement in the amount of $97,615 made to the Transportation Authority of Marin, for which the most recent contract in place expired on January 1, 2011.

We understand that the City is currently working on a revised contract with the Transportation Authority of Marin, however, the City should develop procedures to ensure that all contracts are current to ensure that payments to outside parties are valid and properly supported.

Current Status:

Implemented.
14 REVIEW DRAFT 10/30/2023 12:16 PM

CITY OF SAN RAFAEL

REQUIRED COMMUNICATIONS
FOR THE YEAR ENDED JUNE 30, 2023
REVIEW DRAFT 10/30/2023 12:16 PM
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REVIEW DRAFT 10/30/2023 12:16 PM

CITY OF SAN RAFAEL

REQUIRED COMMUNICATIONS
For the Year Ended June 30, 2023
Table of Contents
Page
Required Communications .................................................................................................................. 1 Significant Audit Matters:

Qualitative Aspects of Accounting Practices ..................................................................... 1 Difficulties Encountered in Performing the Audit ............................................................. 3 Corrected and Uncorrected Misstatements ......................................................................... 3 Disagreements with Management ....................................................................................... 3 Management Representations .............................................................................................. 4 Management Consultations with Other Independent Accountants ................................... 4 Other Audit Findings or Issues ............................................................................................ 4 Other Matters .............................................................................................................................. 4 REVIEW DRAFT 10/30/2023 12:16 PM
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REVIEW DRAFT 10/30/2023 12:16 PM

REQUIRED COMMUNICATIONS
To the City Council of
the City of San Rafael, California
We have audited the basic financial statements of the City of San Rafael (City) for the year ended June 30, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated March 23, 2023. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies - Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during the year, except as follows:

GASB 96 – Subscription Based Information Technology Arrangements This Statement provides guidance on the accounting and financial reporting for subscriptionbased information technology arrangements (SBITAs) for government end users (governments).

This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended.

A SBITA is defined as a contract that conveys control of the right to use another party’s (a SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction.

The subscription term includes the period during which a government has a noncancelable right to use the underlying IT assets. The subscription term also includes periods covered by an option to extend (if it is reasonably certain that the government or SBITA vendor will exercise that option) or to terminate (if it is reasonably certain that the government or SBITA vendor will not exercise that option).

Under this Statement, a government generally should recognize a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability. A government should recognize the subscription liability at the commencement of the subscription term, —which is when the subscription asset is placed into service. The subscription liability should be initially measured at the present value of subscription payments expected to be made during the subscription term.
1 REVIEW DRAFT 12:16 PM
Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
E [email protected]
w mazeassociates.com
REVIEW DRAFT 10/30/2023 12:16 PM
Future subscription payments should be discounted using the interest rate the SBITA vendor charges the government, which may be implicit, or the government’s incremental borrowing rate if the interest rate is not readily determinable. A government should recognize amortization of the discount on the subscription liability as an outflow of resources (for example, interest expense) in subsequent financial reporting periods.

The subscription asset should be initially measured as the sum of (1) the initial subscription liability amount, (2) payments made to the SBITA vendor before commencement of the subscription term, and (3) capitalizable implementation costs, less any incentives received from the SBITA vendor at or before the commencement of the subscription term. A government should recognize amortization of the subscription asset as an outflow of resources over the subscription term.

The pronouncement became effective, and as disclosed in Note 1T to the financial statements required a prior period restatement for the cumulative effect on the financial statements.

The following pronouncements became effective, but did not have a material effect on the financial statements:

GASB 91 – Conduit Debt Obligations
GASB 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements
GASB 99 – Omnibus 2022, paragraphs 11-25
Unusual Transactions, Controversial or Emerging Areas - We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting Estimates - Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Estimated Net Pension Asset (Liability) and Pension-Related Deferred Outflows and Inflows of Resources: Management’s estimates of the net pension asset (liability) and related deferred outflows/inflows of resources are disclosed in Note 9 to the financial statements and are based on an actuarial study and accounting valuation determined by the Marin County Employees’ Retirement Association which are based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimates and determined they are reasonable in relation to the basic financial statements taken as a whole.

Estimated Net OPEB Liability and OPEB-Related Deferred Outflows and Inflows of Resources:

Management’s estimates of the net OPEB liability and related deferred outflows/inflows of resources are disclosed in Note 11 to the financial statements and are based on an actuarial study determined by a consultant, which is based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimates and determined they are reasonable in relation to the basic financial statements taken as a whole.

Estimate of the depreciation: Management’s estimate of depreciation is based on useful lives determined by management. These lives have been determined by management based on the expected useful life of assets as disclosed in Note 1K to the financial statements. We evaluated the key factors and assumptions used to develop the depreciation estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole. 2 REVIEW DRAFT 10/30/2023 12:16 PM
Estimated Fair Value of Investments: As of June 30, 2022, cash and investments were measured by fair value, as disclosed in Note 2 to the financial statements. Fair value is essentially market pricing in effect as of June 30, 2022. These fair values are not required to be adjusted for changes in general market conditions occurring subsequent to June 30, 2022.

Estimated Long-Term Receivable from San Rafael Sanitation District: Management’s estimate of the long-term receivable from the District is disclosed in Note 4G to the financial statements and is based on the District’s estimated liability for pension and post-employment health care benefits incurred by the City for the District staff, but not yet funded. We evaluated the key factors and assumptions used to develop the long-term receivable from the District in determining that it is reasonable in relation to the financial statements taken as a whole.

Estimated Claims Liabilities: Management’s estimate of the claims liabilities payable is disclosed in Note 13 to the financial statements and is based on actuarial studies determined by a consultant, which are based on the claims experience of the City. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Estimate of Compensated Absences: Accrued compensated absences which are comprised of accrued vacation, holiday, and certain other compensating time is estimated using accumulated unpaid leave hours and hourly pay rates in effect at the end of the fiscal year as disclosed in Note 1L to the financial statements. We evaluated the key factors and assumptions used to develop the accrued compensated absences and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Disclosures - The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Professional standards require us to accumulate all known and likely uncorrected misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We have no such misstatements to report to the City Council.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.
3 REVIEW DRAFT 10/30/2023 12:16 PM
Management Representations
We have requested certain representations from management that are included in a management representation letter dated DATE.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the required supplementary information that accompanies and supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the required supplementary information and do not express an opinion or provide any assurance on the required supplementary information.

We were engaged to report on the supplementary information that accompanies the financial statements, but is not required supplementary information. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the Introductory and Statistical Sections which accompany the financial statements, but are not required supplementary information. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance them.
******
This information is intended solely for the use of City Council and management and is not intended to be, and should not be, used by anyone other than these specified parties.

Pleasant Hill, California
DATE
4 -
-

CITY OF SAN RAFAEL

CHILD DEVELOPMENT PROGRAM

BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2023
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i

CITY OF SAN RAFAEL

CHILD DEVELOPMENT PROGRAM
FOR THE YEAR ENDED JUNE 30, 2023
Table of Contents
Page
INTRODUCTORY SECTION:

Table of Contents .......................................................................................................................................... i FINANCIAL SECTION:

Independent Auditor’s Report ................................................................................................................. 1 Basic Financial Statements
Balance Sheet ........................................................................................................................................ 3 Statement of Revenue, Expenditures and Changes in Fund Balance ................................................... 4 Notes to the Basic Financial Statements ............................................................................................... 5 Supplementary Information
Schedule of Federal, State and Local Awards .................................................................................... 10 Combining Statement of Revenues, Expenditures and Changes in Fund Balance ........................... 11 Schedule of Expenditures by State Categories ................................................................................... 12 Schedule of Claimed Administrative Costs ........................................................................................ 13 Schedule of Claimed Equipment Expenditures ................................................................................ 14 Schedule of Claimed Expenditures for Renovations and Repairs ...................................................... 15 Audited Attendance and Fiscal Reports/Audited Fiscal Reports:

CSPP 2274 – California State Preschool Program ........................................................................... 16 Audited Reserve Account Activity Report ....................................................................................... 24 Notes to the Supplementary Information ............................................................................................ 25 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................... 27 Summary of Findings and Questioned Costs ................................................................................ 29 Current Status of Prior Year Findings ........................................................................................... 30

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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
Opinion
We have audited the accompanying financial statements of the City of San Rafael Child Development Program (Program) of the City of San Rafael (City), California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Program’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 financial position of the Program as of June 30, 2023, and the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
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 opinion.

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.

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 there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
1 Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
• [email protected]
w mazeassociates.com
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 Program’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.

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.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the basic financial statements that collective comprise the Program’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 and in conformity with the CDE Audit Guide, issued by the California Department of Education, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated Date on our consideration of the Program’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 Program’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 Program’s internal control over financial reporting and compliance.

Pleasant Hill, California
DATE
2 -
-

CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM

BALANCE SHEET
JUNE 30, 2023
ASSETS
Cash (Note 3) $651,512
Grants receivable (Note 4) 913
Total Assets $652,425

LIABILITIES AND FUND BALANCE
Accounts payable $41,460
Total Liabilities 41,460
Fund balance, restricted (Note 5) 610,965
Total Liabilities and Fund Balance $652,425
See accompanying notes to financial statements
3 CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2023

REVENUES
Restricted:

State grants:

Current year grants $541,103
CDBG preschool grant 23,000
First five school readiness grants 117,556
Local grant 20,913
Unrestricted:

Interest 5,098
Parent fees - noncertified children 3,183,904
Other revenue 32,304
Total Revenues 3,923,878

EXPENDITURES
Certified salaries 143,367
Classified Salaries 1,715,409
Employee benefits 1,229,531
Training and instruction 6,829
Office supplies 594
Books and supplies 214,387
Utilities and housekeeping services 28,352
Rentals 25,845
Travel and conference 1,319
Services and other operating expenditures 137,493
Equipment 55,271
Insurance 28,490
Renovation and repair 77,556
Total Expenditures 3,664,443
CHANGE IN FUND BALANCE 259,435

FUND BALANCE,
Beginning of year 351,530
End of year $610,965
See accompanying notes to financial statements
4 CITY OF SAN RAFAEL

CHILD DEVELOPMENT PROGRAM
Notes to the Basic Financials Statements
For the Year Ended June 30, 2023
NOTE 1 – ORGANIZATION
The City of San Rafael operates the Child Development Program encompassing eight childcare centers within the City of San Rafael. One of these centers provides day care services to subsidized families under the Child Development Program funded by the California Department of Education, which includes the Preschool program. The City is financially accountable for the activities of the Program. The Program has no employees and substantially all staff services which it requires are performed by the City's personnel. Costs incurred by the City to provide such services including compensation, retirement, and other benefit costs are reimbursed by the Program. These basic financial statements present only the activities of the Program and are not intended to present the financial position of the City of San Rafael, California, or the results of its operations. The financial statements of the Program are included as a Special Revenue Fund in the City's financial statements.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Accounting
The accounting and reporting treatment applied to a fund is determined by its measurement focus.

Governmental funds are accounted for on a spending or “current financial resources” measurement focus. Accordingly, only current assets and current liabilities generally are included on the balance sheets. Operating statements of governmental funds present increases (revenues and other financial sources) and decreases (expenditures and other financial uses) in net current assets.

The Program’s financial activities are accounted for using the modified accrual basis of accounting.

Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred.

Revenues considered susceptible to accrual include charges for services, federal and state grants, and interest. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable.

B. Fund Balance
Fund Balance is the excess of all the Program’s assets over all its liabilities. 5 CITY OF SAN RAFAEL

CHILD DEVELOPMENT PROGRAM
Notes to the Basic Financials Statements
For the Year Ended June 30, 2023
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for an asset or liability.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.

NOTE 3 – CASH AND INVESTMENTS
The Program’s cash is included in a City-wide cash and investment pool, the details of which are presented in the City’s basic financial statements. The Program pools cash from all sources with the City of San Rafael so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time. The City’s investment policy and the California Government Code permit investments in Securities of the U.S. Government or its agencies, Certificates of Deposit, Negotiable Certificates of Deposit, Banker’s Acceptances, Commercial Paper, the State of California Local Authority Investment Fund (LAIF Pool), Repurchase Agreements, Medium-Term Corporate Notes, Limited Obligation Improvement Bonds related to special assessment districts and special tax districts, Mortgage and Asset-Backed Obligations and Money Market/Mutual Funds.

The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The City of San Rafael pooled investments is an uncategorized input not defined as Level 1, Level 2, or Level 3 input.
6 CITY OF SAN RAFAEL

CHILD DEVELOPMENT PROGRAM
Notes to the Basic Financials Statements
For the Year Ended June 30, 2023
NOTE 4 – GRANTS RECEIVABLE
The Program has the following grants receivable at June 30, 2023:

Agency Grant Amount
Marin County First 5 Grant $913
Total $913
NOTE 5 – FUND BALANCES
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities.

The City’s fund balances are classified based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint.

Nonspendable represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.

Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose. Nonspendable amounts subject to restrictions are included along with spendable resources.

Committed fund balances have constraints imposed by formal action of the City Council which may be altered only by formal action of the City Council. Nonspendable amounts subject to council commitments are included along with spendable resources.

Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. This category includes nonspendables, when it is the City’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.

Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.
7 CITY OF SAN RAFAEL

CHILD DEVELOPMENT PROGRAM
Notes to the Basic Financials Statements
For the Year Ended June 30, 2023
NOTE 6 – CONTINGENCIES AND COMMITMENTS
The Program participates in Federal, State and County grant programs that are fully or partially funded by grants received from other governmental units. Expenditures financed by grants are subject to audit by the appropriate grantor government. If expenditures are disallowed due to noncompliance with grantor program regulations, the City may be required to reimburse the grantor government. As of June 30, 2023, some amounts of grant expenditures have not been audited, but the City believes that disallowed expenditures, if any, based on subsequent audits will not have a material effect on any individual governmental funds or the overall financial condition of the City. 8 SUPPLEMENTARY INFORMATION

CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM

SCHEDULE OF FEDERAL, STATE AND LOCAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2023
Program
Federal
Assistance
Listing
Number
Pass-Through Identifying
Number
Award
Amount Revenue Expenditures
Federal Awards
US Department of Housing and Urban Development,
Pass-through the County of Marin
Community Development Block Grant 14.218 40CDBG23CD452 $23,000 $23,000 $23,000 US Department of Health and Human Services
Pass-through State of California, Department of Education Child Care and Development Block Grant 93.575
ARPA -- Stabilization Stipend Not available 102,474 74,874 $74,874 COVID 19 -- CRRSA Stipend 004-0045655 24,806
Total Federal Awards $150,280 $97,874 $97,874
State Awards
Child Development Division
State Preschool Program FY2023 CSPP-2274 $492,677 $492,677 $492,677 Total State Awards $492,677 $492,677 $492,677
County Award
County of Marin
First Five - Preschool CSRI-21-009-11 $117,556 $117,556 $117,556 Total County Awards $117,556 $117,556 $117,556
Local Awards
Marin Child Care Council N/A $20,913 $20,913 $20,913
Total Local Awards $20,913 $20,913 $20,913
Total State, Federal Awards, and Local $781,426 $729,020 $729,020 10 CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2023
State Preschool
Program Total CDE Non-CDE
(CSPP1283) CD Contracts Programs Total

REVENUES
Restricted:

State grants:

Current year grants $541,103 $541,103 $541,103
CDBG preschool grant $23,000 23,000
First Five school readiness grants 117,556 117,556
Local grants 20,913 20,913
Unrestricted:

Interest 5,098 5,098
Parent fees - noncertified children 3,183,904 3,183,904 Other revenue 32,304 32,304
Total Revenues 541,103 541,103 3,382,775 3,923,878

EXPENDITURES
Certified salaries 143,367 143,367 143,367
Classified salaries 106,643 106,643 1,608,766 1,715,409 Employee benefits 194,820 194,820 1,034,711 1,229,531
Training and instruction 6,829 6,829
Office supplies 594 594
Books and supplies 25,784 25,784 188,603 214,387
Utilities and housekeeping services 28,352 28,352
Travel and conference 1,319 1,319
Rentals 25,845 25,845
Services and other operating expenditures 22,063 22,063 115,430 137,493 Equipment 55,271 55,271
Insurance 28,490 28,490
Renovation and repair 77,556 77,556
Total Expenditures 492,677 492,677 3,171,766 3,664,443

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES 48,426 48,426 211,009 259,435
CHANGE IN FUND BALANCE $48,426 $48,426 $211,009 $259,435 11 CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM

SCHEDULE OF EXPENDITURES BY STATE CATEGORIES
FOR THE YEAR ENDED JUNE 30, 2023
CSPP-2274
State Preschool
Program Totals
EXPENDITURES:
1000 Certified personnel salaries $143,367 $143,367
Due from State
1100 Teachers' salaries 143,367 143,367
1200 Administration
1300 Supervisors' salaries
1600 Infant educators
2001 Classified personnel salaries $106,643 $106,643
2100 Instructional aides' salaries 106,643 106,643
2300 Clerical and other office salaries
2500 Food services salaries
2600 Transportation salaries
3000 Employee benefits $194,820 $194,820
3200 Payroll taxes (Medicare) 3,383 3,383
3300 Other benefits 141,094 141,094
3400 Health and welfare 47,673 47,673
3600 Workers' compensation insurance 2,670 2,670
4000 Books and supplies $25,784 $25,784
4200 Other books
4300 Instructional materials and supplies 25,784 25,784 4500 Other supplies
4600 Food supplies
5000 Services and other operating expenditures $22,063 $22,063 5100 Lecturer
5200 Travel and conferences
5300 Memberships and dues 603 603
5400 Insurance 1,689 1,689
5500 Utilities and housekeeping services 2,219 2,219
5600 Rentals, leases and repairs
5700 Audit expense
5800 Other direct services & admin. 17,552 17,552
6000 Capital Outlay
6100 Sites and improvements of sites
6200 Buildings and improvements of buildings
6400 Equipment (program-related)
6500 Equipment replacement (program related)
Depreciation
Costs capitalized as Fixed Assets

TOTAL OF REIMBURSABLE AND
NONREIMBURSABLE EXPENDITURES $492,677 $492,677
We have examined the claims filed for reimbursement and the original records supporting the transactions recorded under the contracts listed above to an extent considered necessary to assure ourselves that the amounts claimed by the contractor were eligible for reimbursement, reasonable, necessary, and adequately supported, according to governing laws, regulations, and contract provisions. 12 CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM

SCHEDULE OF CLAIMED ADMINISTRATIVE COSTS
FOR THE YEAR ENDED JUNE 30, 2023
CSPP-2274
State Preschool
Program
Administrative Costs
5000 Services and other operating expenses (audit fees) $7,282 Total Administrative Costs claimed for reimbursement $7,282 13 Capitalized Equipment Expensed on the AUD with Prior Written Approval CSPP-2274 None $0
Subtotal 0
Capitalized Equipment Expensed on the AUD without Prior Written Approval CSPP-2274 None 0
Subtotal 0
Total $0
NOTE: The City's capitalization threshold is $5,000.

CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM

SCHEDULE OF CLAIMED EQUIPMENT EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2023
14 Capitalized R&R Project Under $10,000 CSPP-2274
None $0
Subtotal 0
Capitalized R&R Project of $10,000 or More with Prior Written Approval CSPP-2274 None 0
Subtotal 0
Capitalized R&R Project of $10,000 or More without Prior Written Approval CSPP-2274 None 0
Subtotal 0
Total $0
NOTE: The City's capitalization threshold is $5,000.

CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM

SCHEDULE OF CLAIMED EXPENDITURES FOR RENOVATIONS AND REPAIRS FOR THE YEAR ENDED JUNE 30, 2023
15 Contractor Name:

California Department of Education Audited Enrollment, Attendance and Fiscal Report for California State Preschool Program Contract Number:

Fiscal Year Ended: June 30, 202
Vendor Code:

Section 1 – Number of Counties Where Services are Provided Number of counties where the agency provided services to certified children (Form 1): Number of counties where the agency provided mental health consultation services to certified children (Form 2):

Number of counties where the agency provided services to non-certified children (Form 3): Number of counties where the agency provided mental health consultation services to non-certified children (Form 4): Total enrollment and attendance forms to attach: Note: For each of the above categories, submit one form for each service county.

Section 2 – Days of Enrollment, Attendance and Operation Enrollment and Attendance Form Summary
Column A
Cumulative FY
per CPARIS
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjusted Days
per Audit
Total Certified Days of Enrollment Total &HUWLILHG'D\VRI(QUROOPHQWZLWKMental Health Consultation Services Days of Attendance (including MHCS) N/A Total Non-Certified Days of Enrollment Total 1RQ&HUWLILHG'D\VRI(QUROOPHQWZLWKMental Health Consultation Services Days of Operation
Column A
Cumulative FY
per CPARIS
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjusted Days
per Audit
Days of Operation N/A
AUD 8501 Page 1 of 6 Audit Report Page
City of San Rafael Child Development Program CSPP 2274
2193
1 0
0 0
1 11,864 11,864 11,864.0000
0 10,567 10,567
00 175 175
1 6
Contractor Name: Contract Number:

Section 3 – Revenue
Restricted Income Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Child Nutrition Programs County Maintenance of Effort (EC Section 82) Other: Other:

TOTAL RESTRICTED INCOME
Transfer from Reserve Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Transfer from 3UHVFKRROReserve$FFRXQW
Other Income Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Waived Family Fees for Certified Children Interest Earned on Child Development Apportionment Payments 8QUHVWULFWHG,QFRPH
Fees for Non-Certified Children
Unrestricted Income: Head Start Other: Other:

AUD 8501 Page 2 of 6 Audit Report Page
00 74,874 74,874
0 0 74,874 74,874
0000000
City of San Rafael Child Development Program CSPP 2274
ARPA
1 7
Contractor Name: Contract Number:

Section 4 - Reimbursable Expenses
Cost Category Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Direct Payments to Providers (FCCH only) 1000 Certificated Salaries 2000 Classified Salaries 3000 Employee Benefits 4000 Books and Supplies 5000 Services and Other Operating Expenses 6100/6200 Other Approved Capital Outlay 6400 New Equipment (program-related) 6500 Equipment Replacement (program-related) Depreciation or Use Allowance Start-up Expenses (service level exemption) Indirect Costs (include in Total Administrative Cost)

TOTAL REIMBURSABLE EXPENSES
Does the agency have an indirect cost rate approved by its cognizant agency (Select YES or NO)? <HV 1RApproved Indirect Cost Rate:

Specific Items of Reimbursable Expenses Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Total Administrative Cost (included in Reimbursable Expenses) Total Staff Training Cost (included in Reimbursable Expenses) AUD 8501 Page 3 of 6 Audit Report Page
126833/(0(17$/5(9(18((;3(16(6&KHFNWKLVER[DQGRPLWSDJH 0 143,367 143,367106,643 106,643194,820 194,820
25,784 25,78422,063 22,063
000000
492,677 0 492,677
7,282 7,282
0 City of San Rafael Child Development Program CSPP 2274 ✔
1 8
Contractor Name: Contract Number:

Section 5 - Supplemental Funding
Supplemental Revenue Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Enhancement Funding Other: Other:

TOTAL SUPPLEMENTAL REVENUE
Supplemental Expenses Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit 1000 Certificated Salaries 2000 Classified Salaries 3000 Employee Benefits 4000 Books and Supplies 5000 Services and Other Operating Expenses 6000 Equipment / Capital Outlay Depreciation or Use Allowance Indirect Costs Non-Reimbursable Supplemental Expenses

TOTAL SUPPLEMENTAL EXPENSES
AUD 8501 Page 4 of 6 Audit Report Page
10,420 10,420
00 10,420 0 10,420
00 35 35
0 6,200 6,200
357 357
00 84 84
6,676 0 6,676
City of San Rafael Child Development Program CSPP 2274
19 Contractor Name: Contract Number:

Section 6 - Summary
Description Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Total Certified Days of Enrollment (including MHCS) Days of Operation Days of Attendance (including MHCS) Total Certified Adjusted Days of Enrollment N/A N/A Total Non-Certified Adjusted Days of Enrollment N/A N/A Restricted Program Income Transfer from 3UHVFKRROReserve$FFRXQW Interest Earned on Apportionment Payments Direct Payments to Providers Start-up Expenses (service level exemption) Total Reimbursable Expenses Total Administrative Cost Total Staff Training Cost Non-Reimbursable Cost (State Use Only) N/A N/A AUD 8501 Page 5 of 6 Audit Report Page
11,864 0 11,864
175 0 175
10,567 0 10,567
11,864.0000

0.0000
0 74,874 74,874
000000000000
492,677 0 492,677
0 7,282 7,282
000
City of San Rafael Child Development Program CSPP 2274
2 0
Contractor Name: Contract Number:

Section 7 – Auditor’s Assurances Independent auditor's assurances on agency's compliance with the contract funding terms and conditions and program requirements of the California Department of Education, Early Education Division:

Eligibility, enrollment and attendance records are being maintained as required (Select YES or NO): <HV 1RReimbursable expenses claimed in Section 4 are eligible for reimbursement, reasonable, necessary, and adequately supported (Select YES or NO): <HV 1R Section 8 – Comments Include any comments in the comment box. If necessary, attach additional sheets to explain adjustments.

AUD 8501 Page 6 of 6 Audit Report Page
✔
✔
Adjustments identified in Column B are adjustments made to report audit fees as administrative costs and ARPA funds.

City of San Rafael Child Development Program CSPP 2274
2 1
Contractor Name: Contract Number:

AUD 8501 – Form 1
)<±
Audit Report Page Page 1 of 2 California State Preschool Program – Form 1 Certified Children Days of Enrollment and Attendance Service County:

Enrollment Description
Column A
Cumulative FY
per CPARIS June Report
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjustment
Factor
Column E
Adjusted Days
per Audit
Three Years Old Full-time-plus 2.1240 Three Years Old Full-time 1.8000 Three Years Old Part-time Four Years and Older Full-time-plus 1.1800 Four Years and Older Full-time 1.0000 Four Years and Older Part-time Exceptional Needs Full-time-plus 2.8320 Exceptional Needs Full-time 2.4000 Exceptional Needs Part-time Dual Language Learner Full-time-plus 1.4160 Dual Language Learner Full-time 1.2000 Dual Language Learner Part-time City of San Rafael Child Development Program CSPP 2274
Marin
0 0.00000 0.0000
2,452 2,452 1.0872 2,665.8144
0 0.00000 0.0000
7,911 7,911 0.6040 4,778.2440
0 0.00000 0.0000
1,501 1,501 1.4496 2,175.8496
0 0.00000 0.00000 0.6040 0.0000
2 2
Contractor Name: Contract Number:

AUD 8501 – Form 1
)<±
Audit Report Page Page 2 of 2
Enrollment Description
Column A
Cumulative FY
per CPARIS June Report
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjustment
Factor
Column E
Adjusted Days
per Audit
At Risk of Abuse or Neglect Full-time-plus 1.2980 At Risk of Abuse or Neglect Full-time 1.1000 At Risk of Abuse or Neglect Part-time Severely Disabled Full-time-plus 2.8320 Severely Disabled Full-time 2.4000 Severely Disabled Part-time

TOTAL CERTIFIED DAYS OF ENROLLMENT N/A
Attendance
Column A
Cumulative FY
per CPARIS June Report
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjustment
Factor
Column E
Adjusted Days
per Audit

DAYS OF ATTENDANCE N/A N/A
Enter the sum of Total Certified Days of Enrollment from all Form 1s in the Total Certified Days of Enrollment line of AUD 8501, Section 2. Enter the sum of Days of Attendance from all Form 1s and Form 2s in the Days of Attendance line of AUD 8501, Section 2. 0 0.00000 0.00000 0.6040 0.00000 0.00000 0.00000 1.4496 0.0000 11,864 0 11,864 9,619.908010,567 10,567
City of San Rafael Child Development Program CSPP 2274
2 3
California Department of Education Fiscal Year Ending: June 30, 202 Audited 3UHVFKRROReserve Account Activity Report Vendor Code:

Contractor Name:

Section 1 – Prior Year Reserve Account Activity
 Beginning Balance (202–2 $8'
$Ending Balance):
 Plus Transfers to Reserve Account:
202–2Contract No.

Per 202–2
Post-Audit
((1FS 9530
Total Transferred from 202–2 Contracts
 Less Excess Reserve to be Billed:
 202–2 ((1)6
5HVHUYH%DODQFH$IWHU%LOOLQJ:
6ection 2 – Current Year Reserve Account Activity
 Plus Interest Earned This Year on Reserve:

Description Column A
SHU&3$5,6
Column B
Audit Adjustments
Column C
Total per Audit
Interest Earned

6. Less Transfers to Contracts from Reserve:
202–2 Contract No. Column A
SHU&3$5,6
Column B
Audit Adjustments
Column C
Total per Audit
Total Transferred to Contracts

7. Ending Balance:

Description Column A
SHU&3$5,6
Column B
Audit Adjustments
Column C
Total per Audit
Ending Balance on June 30, 202
COMMENTS – If necessary, attach additional sheets to explain adjustments.

AUD 9530A Page 1 of 1 Audit Report Page
2193
10,696
City of San Rafael Child Development Program
19,065
1283 8,369
8,369
22 0
0 0
0 00
19,067 0 19,067
24 CITY OF SAN RAFAEL

CHILD DEVELOPMENT PROGRAM
Notes to the Supplementary Information
For the Year Ended June 30, 2023
NOTE 1 – NOTE TO SUPPLEMENTARY INFORMATION
In accordance with the applicable requirements from the Funding Terms and Conditions of the City of San Rafael’s child development contract:

A. Interest Expense
Interest expense is only allowable as a reimbursable cost in certain circumstances when it has been preapproved by the administering state department or relates to the lease purchase, acquisition, or repair or renovation of early learning and care facilities owned or leased by the contractor. No interest expense was claimed as a reimbursable expense for the year ended June 30, 2023.

B. Related Party Rent Expense
All expenses claimed for reimbursement under a related party rent transaction must be supported by a fair market rental estimate from an independent appraiser, licensed by the California Office of Real Estate Appraisers. No related party rent expense was claimed as a reimbursable expense for the year ended June 30, 2023.

C. Bad Debt Expense
Bad debt expense is unallowable unless it relates to uncollected family fees where documentation of adequate collection attempts exists. No bad debt expense was claimed to a child development contract for the year ended June 30, 2023.
25 This Page Left Intentionally Blank
INDEPENDENT AUDITOR’S REPORT ON

INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN

AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the City Council
City of San Rafael, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the basic financial statements of the City of San Rafael Child Development Program (Program), California, as of and for the year ended June 30, 2023, and have issued our report thereon dated DATE. Our report included an emphasis of a matter paragraph disclosing the implementation of a new accounting principle.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Program's internal control over financial reporting (internal control) as a basis for designing of audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Program’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the Program’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Program’s financial statements will not be prevented, or detected and corrected on a timely basis.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified a deficiency in internal control that we consider to be a significant deficiency as listed on the Schedule of Significant Deficiency included as part of our separately issued Memorandum on Internal Control dated [BFS Opinion Date], which is an integral part of our audit and should be read in conjunction with this report. 27 Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
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1111
T 925.228.2800
E [email protected]
w mazeassociates.com
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Program's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.

City’s Response to Findings
Government Auditing Standards require the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in our separately issued Memorandum on Internal Control dated [BFS Opinion Date], which is an integral part of our audit and should be read in conjunction with this report. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Program’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Program’s internal control and compliance.

Accordingly, this communication is not suitable for any other purpose.

Pleasant Hill, California
DATE
28 -

CITY OF SAN RAFAEL

CHILD DEVELOPMENT PROGRAM

SUMMARY OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2023
None noted.
29 CITY OF SAN RAFAEL

CHILD DEVELOPMENT PROGRAM

CURRENT STATUS OF PRIOR YEAR FINDINGS
For the Year Ended June 30, 2023
None noted.
30 INDEPENDENT ACCOUNTANT’S REPORT ON

APPLYING AGREED UPON PROCEDURES FOR
COMPLIANCE WITH THE PROPOSITION 111
2023-2024 APPROPRIATIONS LIMIT INCREMENT
Honorable Mayor and Members of the City Council
City of San Rafael, California
We have performed the procedures enumerated below on the Appropriations Limit Worksheet (Worksheet) of the City of San Rafael, California, for the year ended June 30, 2024. The City’s management is responsible for the Worksheet.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of these procedures, which were suggested by the League of California Cities and presented in their Article XIIIB Appropriations Limitation Uniform Guidelines, performed solely to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

A. We obtained the Worksheet (Exhibit B to the Resolution) and determined that the 2023-2024 Appropriations Limit of $179,385,992 and annual adjustment factors were adopted by Resolution of the City Council. We also determined that the population and inflation options were selected by a recorded vote of the City Council. However, the Resolution indicated that the percent change in California’s per capita personal income was selected, but the Worksheet shows that the larger adjustment factor of the change in assessment roll for nonresidential construction of Marin County was used for the calculation of the 2023-2024 Appropriations Limit.

B. We recomputed the 2023-2024 Appropriations Limit by multiplying the 2022-2023 Prior Year Appropriations Limit by the Total Growth Factor. We recomputed the Total Growth Factor by multiplying the population option by the inflation option.

C. For the Worksheet, we agreed the Per Capita Income Factor, City Population Factor and County Population Factor to California State Department of Finance Worksheets, and the Change in Assessment Roll for Nonresidential Construction Factor to the Marin County Worksheet.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Worksheet.

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

REVIEW DRAFT 10/30/2023
Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
, [email protected]
w mazeassociates.com
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of management and the City Council and is not intended to be and should not be used by anyone other than those specified parties; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record.

Pleasant Hill, California
DATE
REVIEW DRAFT 10/30/2023
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