Agenda packet — San Rafael City Council, November 18, 2024 (part 1 of 2)

AGENDA - REVISED
SAN RAFAEL CITY COUNCIL - MONDAY, NOVEMBER 18, 2024
REGULAR MEETING AT 6:00 P.M.

San Rafael City Hall, Council Chambers
1400 Fifth Avenue, San Rafael, CA 94901
Watch Online:

Watch on Zoom Webinar: https://tinyurl.com/cc-2024-11-18 Watch on YouTube: www.youtube.com/cityofsanrafael
Listen by phone: (669) 444-9171
ID: 860-6190-5675#
One Tap Mobile: +16694449171,,86061905675# US
This meeting will be held in-person. This meeting is being streamed to YouTube at www.youtube.com/cityofsanrafael.

How to participate in the meeting:
• You are welcome to come to the meeting and provide public comment in person. Each speaker will have 2-minutes to provide public comment per agenda item. • Submit your comments by email to [email protected] by 4:00 p.m. the day of the meeting.

If you experience technical difficulties during the meeting, please contact [email protected].

OPEN SESSION– THIRD FLOOR CONFERENCE ROOM – 5:00 P.M.

1. Mayor Kate to announce Closed Session items.

CLOSED SESSION – THIRD FLOOR CONFERENCE ROOM – 5:00 P.M.

2. Closed Session:
a. CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (3) of subdivision (d) of Section 54956.9 (one case)
b. CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives: Mayor Kate Colin and Vice Mayor Eli Hill Unrepresented employee: City Manager
CITY MANAGER AND COUNCILMEMBER REPORTS:
(including AB 1234 Reports on Meetings and Conferences Attended at City Expense)

3. City Manager and Councilmember Reports:

CONSENT CALENDAR:

The opportunity for public comment on consent calendar items will occur prior to the City Council’s vote on the Consent Calendar. The City Council may approve the entire consent calendar with one action. In the alternative, items on the Consent Calendar may be removed by any City Council or staff member, for separate discussion and vote.
2 4. Consent Calendar Items:
a. Approval of Minutes
Approve Minutes of the Regular and Special City Council Meetings of November 4, 2024 (CC)
Recommended Action - Approve minutes as submitted
b. Downtown Business Improvement District (BID) Assessment Annual Renewal Resolution Declaring the City Council’s Intention to Levy an Annual Assessment for Calendar Year 2025 for the Downtown San Rafael Business Improvement District (CED) Recommended Action – Accept Report and Adopt Resolution c. EMS Equipment Replacement
Authorize the City Manager to Purchase Thirteen Cardiac Monitors, Two Power Load Gurneys, and Five Stairchairs in an Amount Not to Exceed $678,237 (Fin) Recommended Action – Authorize the City Manager to purchase thirteen cardiac monitors, two power load gurneys, and five stairchairs through a cooperative agreement from Stryker in an amount not to exceed $678,237; and, Authorize a budget appropriation from the Emergency Medical Services Fund (Fund 210) for the purchase of the equipment d. City Quarterly Investment Report
Acceptance of City of San Rafael Quarterly Investment Report for the Quarter Ending September 30, 2024 (Fin)
Recommended Action – Accept Report
e. Windward Way Gas Monitoring Services
Authorize the City Manager to Enter into the First Amendment to the Professional Services Agreement with Haley & Aldrich for Windward Way Gas Monitoring Services, in an Amount of $77,000, Increasing the Total Not-To-Exceed Amount of the Agreement to $145,800, and Approve Supplemental Budget Appropriations (DPW)
Recommended Action – Authorize the City Manager to enter into the first amendment to the professional services agreement with Haley & Aldrich, Inc. for Windward Way gas monitoring services, in an amount of $77,000, increasing the total not-to-exceed amount of the agreement to $145,800; and, Authorize supplemental budget appropriations totaling $217,500 to cover additional gas monitoring services ($77,000; General Fund-001) along with additional well construction work ($140,500; Capital Fund-401)

OTHER AGENDA ITEMS

5. Other Agenda Items:
a. FY 2024-25 First Quarter Budget Update
FY 2024-25 First Quarter Budget Update: Revenue and Expenditure Results for the Quarter Ending September 30, 2024 (Fin)
Recommended Action – Accept the fiscal year (FY) 2024-25 First Quarter Budget Update presenting revenue and expenditure results through the first quarter of the current fiscal year (through September 30, 2024) (Attachment A); and, Authorize amendments to the FY 2024-25 budget representing unencumbered carry-over appropriations for specified purposes, totaling $1,080,148, as presented in Attachment B
3 b. Year-End Audited Financial Statements and Related Audit Reports Fiscal Year 2023-24 Annual Comprehensive Financial Report; Memorandum on Internal Control; Report of Required Communications; Child Development Program Financial Report; and Gann Appropriations Limit (Fin)
Recommended Action – Accept the Fiscal Year 2023-24 Annual Comprehensive Financial Report, Memorandum on Internal Control, Report of Required Communications, Child Development Program Financial Report, and Gann Appropriations Limit Report

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

ADJOURNMENT:

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

2. Closed Session:
a. CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (3) of subdivision (d) of Section 54956.9 (one case)
Outlook
Reback, Larry claim
From Heather Davis <[email protected]>
Date Wed 10/30/2024 2:21 PM
To Brenna Nurmi <[email protected]>; Lindsay Lara <[email protected]> Hi Lindsay,
Please see below claim as requested.

Thanks,
Heather
From: [email protected] <[email protected]> on behalf of Larry <[email protected]> Sent: Monday, August 28, 2023 2:25 PM
To: Lindsay Lara <[email protected]>; Brenna Nurmi <[email protected]>; Laraine Gittens <[email protected]>; Genevieve Coyle <[email protected]> Subject: New submission from Claim Form
Claim for Money or Damages Against the City of San Rafael Claimant Name
Larry Reback
Claimant Address
United States
Claimant Phone
Claimant Email
Mailing Name
Larry Reback
Mailing Address
Oakland, California 94610
10/30/24, 2:25 PM Mail - Lindsay Lara - Outlook
https://outlook.office365.com/mail/inbox/id/AAMkAGE4NDc2ZDVlLWQxMTYtNDBiOC04NTI0LTRjYTQzNTJlMTJkMQBGAAAAAAAyY1qsYIBjQ6ajfUyz… 1/3 United States
Phone
Date of Occurence
08/27/2023
Time of Occurrence
10:30 am
Location of Occurrence
Sidewalk in front of or around 1323 4th Street, San Rafael.

Circumstances giving rise to this claim
While walking to breakfast at Boogies Too, my foot caught the ungrated metal protuberance surrounding the tree ( see attached photo). I fell forward on my arms, which caused both wrists to snap back. I sustained a right wrist fracture, left elbow fracture, sprained left wrist, and right knee bruise/contusions.

4. General description of the indebtedness, obligation, injury, damage or loss incurred so far as it may be known at the time of the presentation of the claim
The city is at fault for failing to provide a safe sidewalk for pedestrians. Specifically, the area around the tree was not grated or flush with the sidewalk creating a dangerous condition for pedestrians, At a minimum, yellow warning tape or a foot barrier around the tree would be required to alert people of the tripping hazard

5. Name(s) of the public employee(s) causing the injury, damage, or loss, if known unknown

6. If amount claimed totals less than $10,000: State the dollar amount and basis for computation n/a
If amount claimed exceeds $10,000: Do not state amount. Check one of the following boxes Unlimited Civil Case (more than $25,000)
Signature
Larry Reback
Date
08/28/2023
You are required to provide the information above in order to comply with Government Code §910.

8. Name, address and telephone number of any witnesses to the occurrence or transaction which gave rise to the claim asserted:

Deborah Reback ( spouse)
Cheryl Rosenstein ( friend and her husband Rick I was having brunch with) I was also given ice by the female co-owner of Bogies Too (1335 4th St), but I do not know her name. 10/30/24, 2:25 PM Mail - Lindsay Lara - Outlook
https://outlook.office365.com/mail/inbox/id/AAMkAGE4NDc2ZDVlLWQxMTYtNDBiOC04NTI0LTRjYTQzNTJlMTJkMQBGAAAAAAAyY1qsYIBjQ6ajfUyz… 2/3

9. Is the claim is related to an automobile accident?
No
Attachments
tree4.jpg
tree3.jpg
Signature
Larry Reback
10/30/24, 2:25 PM Mail - Lindsay Lara - Outlook
https://outlook.office365.com/mail/inbox/id/AAMkAGE4NDc2ZDVlLWQxMTYtNDBiOC04NTI0LTRjYTQzNTJlMTJkMQBGAAAAAAAyY1qsYIBjQ6ajfUyz… 3/3

Minutes subject to approval at the 11/18/24 City Council Meeting

MINUTES
SAN RAFAEL CITY COUNCIL - MONDAY, NOVEMBER 4, 2024
SPECIAL MEETING AT 4:00 P.M.

REGULAR MEETING AT 6:00 P.M.

This meeting will be held in-person. This meeting is being streamed to YouTube at www.youtube.com/cityofsanrafael.

If you experience technical difficulties during the meeting, please contact [email protected].

SPECIAL MEETING AT 4:00 P.M.

San Rafael Third Floor Conference Room
1400 Fifth Avenue, San Rafael, CA 94901
Watch Online:

Watch on Zoom Webinar: https://tinyurl.com/sm-2024-11-04 Listen by phone: (669) 900-9128
ID: 846-9097-4634#
One Tap Mobile: +16699009128,,84690974634# US

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

Absent: None
Also Present: City Clerk Lindsay Lara
Library & Recreation Director Catherine Quffa
Mayor Kate called the meeting to order at 4:00 p.m. and invited public comment; however, there was none.

INTERVIEWS:

1. Interviews
a. Public Art Review Board Interviews
Interview Applicants and Make an Appointment to Fill One Four-Year Term Through the End of October 2028 on the Public Art Review Board Due to the Expiration of Term of Meili Zhao (CC)
The City Council interviewed the following applicants: Jack Fisher, Jennifer Skinner and Meili Zhou. Nadia Tarzi Saccardi was not interviewed.

Councilmember Llorens Gulati moved and Councilmember Bushey seconded to appoint Jennifer Skinner to the Public Art Review Board to the end of October 2028, and 2 recommended staff return to a future City Council meeting with a recommendation to amend the bylaws to remove the Planning Commission liaison and to add another member of the public to serve as a voting member. The City Council recommended staff return with the appointment of Meili Zhou to the newly created public member position.

AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None
b. Park and Recreation Commission Interviews
Interview Applicants and Make Appointments to Fill Two Four-Year Terms Through the End of October 2028 on the Park and Recreation Commission Due to the Expiration of Terms of Robert Sandoval and Kela Cabrales (CC)
The City Council interviewed the following applicants: Susanne Berg, Emily Willingham, Kela Cabrales and Robert Sandoval.

Councilmember Llorens Gulati moved and Councilmember Hill seconded to appoint Kela Cabrales and Robert Sandoval to the Park and Recreation Commission to the end of October 2028.

AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None
c. Pickleweed Advisory Committee Interviews
Interview Applicants and Make Appointments to Fill Two Unexpired Four-Year Terms Through the End of April 2027 on the Pickleweed Advisory Committee, Due to the Voluntary Resignation of terms of Nancy Palacios and Jairo Ceballos (CC) The City Council interviewed the following applicants: Sergio Campos and Darlin Ruiz.

Floridalma Rodas was not interviewed, and Braydan Young withdrew from the interview.

Councilmember Llorens Gulati moved and Councilmember Bushey seconded to appoint Sergio Campos as the Non-Canal Resident, and Darlin Ruiz to the Pickleweed Advisory Committee to the end of April 2027.

AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None
Mayor Kate adjourned to Closed Session at 5:35 p.m.

OPEN SESSION– THIRD FLOOR CONFERENCE ROOM – FOLLOWING SPECIAL MEETING

2. Mayor Kate announced Closed Session items.

CLOSED SESSION – THIRD FLOOR CONFERENCE ROOM – FOLLOWING SPECIAL MEETING

3. Closed Session:
a. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: (One 3 case)
b. Conference with Labor Negotiators – Government Code Section 54957.6 Lead Negotiators: Timothy L. Davis and Allison B. Hernandez (Burke, Williams & Sorensen) Agency Designated Representatives: Cristine Alilovich, Paul Navazio, Marissa Sanchez, Nick Biss, and Angela Robinson Piñon
Employee Organization: SEIU Local 1021
REGULAR MEETING AT 6:00 P.M.

San Rafael City Hall, Council Chambers
1400 Fifth Avenue, San Rafael, CA 94901
Watch Online:

Watch on Zoom Webinar: https://tinyurl.com/cc-2024-11-04 Watch on YouTube: www.youtube.com/cityofsanrafael
Listen by phone: (669) 444-9171
ID: 844-3204-9611#
One Tap Mobile: +16694449171,,84432049611# US

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

Absent: None
Also Present: City Manager Cristine Alilovich
City Attorney Rob Epstein
City Clerk Lindsay Lara
Mayor Kate called the meeting to order at 6:01 p.m. and invited City Clerk Lindsay Lara to call the roll and all members of the City Council were present.

City Attorney Robert Epstein announced that no reportable action was taken in Closed Session held before the meeting. After his announcement he made a correction where he indicated there was reportable action taken in closed session, and that the City Council unanimously authorized the initiation of a civil action for breach of contract and indemnity against Kimley-Horn in connection with engineering services that they provided to the City several years ago.

Mayor Kate provided opening remarks which included gratitude to City Staff, speaking at the Black Student Union’s Get Out the Vote event at Dominican University, Election Day on November 5, 2024 and a land acknowledgment.

City Clerk Lindsay Lara announced there would be Spanish language interpretation for Agenda Item

8.a Marin Sanitary Service Rates and Amendments for 2025. Also, she informed the community that the in-person meeting would also be recorded and streamed live to YouTube and through Zoom. She noted the two-minute timer for public comment and closed captioning on Zoom.

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

4. City Manager and Councilmember Reports:
4 City Manager Cristine Alilovich reported on:
• City’s credit rating update
• New Redwood Bikeshare Pilot Program
• Northgate Town Square Project currently scheduled for December 2 City Council meeting
• 2nd Friday Art Walk, to be held Friday, November 8, downtown, 5-8 p.m. • Transportation Authority of Marin community workshop on the Bellam corridor improvements to be held Thursday, November 14, at Marin Health and Wellness Center, 5:30-7:30 p.m.
• 43rd Annual Holiday of Lights and Winter Wonderland starts on Saturday, November 30, downtown, 11 a.m. to 6 p.m.
• Lighted Boat Parade to be held Saturday, December 7.
• Menorah lighting and Gelt drop to be held Sunday, December 29, downtown, 5-6:30 p.m.
• SMART pathway grand opening, from McGinnis Parkway to Smith Ranch Road, to be held Friday, November 22, noon.
• Voting Reminder for General Election
City Councilmember Reports:
• Vice Mayor Hill reported on a Marin County Council of Mayors & Councilmembers (MCCMC) meeting where he is serving as president, a sanctioned encampment area tour and his rotary manor presentation.
• Councilmember Kertz reported on the Chamber of Commerce Women of Industry luncheon, a Marin County Council of Mayors & Councilmembers (MCCMC) meeting, a Cal Cities Homeless Roundtable, a Capri & Silvera Parkway HOA meeting and a County Youth E-Bike Safety Committee meeting.
• Councilmember Bushey reported on a San Rafael Sanitation District Board meeting and the annual meeting of the Pt. San Pedro Road Coalition. • Councilmember Llorens Gulati reported on a State of the North Bay Community and Growth meeting, the Chamber of Commerce Women of Industry Awards, a BayWAVE Executive Steering Committee meeting, a Sea Level Rise and Marin’s Bayside meeting, a Marin County Council of Mayors & Councilmembers (MCCMC) meeting, a MC Clean Energy Board retreat, a Climate Change Action Plan (CCAP) quarterly meeting, a virtual Marin Green Home Tour, and a Dia de Los Muertos celebration at Pickleweed. • Mayor Kate reported on the Dia de Los Muertos celebration at Pickleweed, a Transportation Authority of Marin (TAM) meeting and a Girl Scout meeting.

Mayor Kate invited public comment.

Speaker: Shinji Sakai-Egi
CONSENT CALENDAR:

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

Councilmember Llorens Gulati moved and Councilmember Kertz seconded to approve the Consent Calendar.

5. Consent Calendar Items:
a. Approval of Minutes
5 Approve Minutes of the Regular and Special City Council Meetings of October 21, 2024 (CC)
Approved minutes as submitted
b. Proclamation
Proclamation Supporting National Veterans & Military Families Month Received and filed
c. First Responder Counseling Professional Services Agreement for Fiscal Years 2024-2028 Authorize the City Manager to Enter into a Professional Services Agreement with Public Safety Family Counseling Group, Inc., from Fiscal Years 2024-2028, In the Amount Not to Exceed $220,000 (HR)
Authorized the City Manager to enter into a Professional Services Agreement with Public Safety Family Counseling Group, Inc. for first responder counseling services from fiscal years 2024- 2028, in an amount not to exceed $220,000; and, authorized a budget appropriation from the Employee Benefits Fund (Fund 604)
d. Employee Relations Legal Services Professional Services Agreement Fiscal Years 2024- 2026
Authorize the City Manager to Enter into a Professional Services Agreement with Burke, Williams & Sorensen, LLP for Employee Relations Legal Services, In an Amount Not to Exceed $150,000, for Fiscal Years 2024-2026 (HR)
Authorized the City Manager to enter into a Professional Services Agreement with Burke, Williams & Sorensen, LLP, for employee relations legal services, in an amount not to exceed $150,000, for fiscal years 2024-2026
e. Labor Relations Legal Services Professional Services Agreement Fiscal Years 2024-2026 Authorize the City Manager to Enter into a Professional Services Agreement with Burke, Williams & Sorensen, LLP for Labor Relations Legal Services, In an Amount Not to Exceed $150,000, for Fiscal Years 2024-2026 (HR)
Authorized the City Manager to enter into a Professional Services Agreement with Burke, Williams & Sorensen, LLP for labor relations legal services, in an amount not to exceed $150,000, for fiscal years 2024-2026
f. Medi-Cal Transportation Intergovernmental Transfer Program for Calendar Year 2025 Authorize the City Manager to Execute a Certification Form for the San Rafael Fire Department to Participate in an Intergovernmental Transfer (IGT) with the California Department of Health Care Services (DHCS) for Reimbursement of Public Provider Ground Emergency Medical Transportation (PP-GEMT) Services for the Service Period of January 1, 2025, Through December 31, 2025, and Transfers to DHCS Not to Exceed $700,000 (FD)
Authorized the City Manager to execute a certification form for the San Rafael Fire Department to participate in a Medi-Cal Intergovernmental Transfer (IGT) program with the California Department of Health Care Services (DHCS) for reimbursement of Provider Ground Emergency Medical Transportation (PP-GEMT) services for the service period of January 1, 2025, Through December 31, 2025, and make transfers not to exceed $700,000 g. Emergency Medical Services (EMS) Billing and Collection Authorize the City Manager to Negotiate a Professional Services Agreement with Wittman Enterprises, LLC (Wittman) for Emergency Medical Services (EMS) Billing and Collection 6 Services in an Amount Not to Exceed $825,000 for Five Years with an Option for an Additional 5-Year Extension (FD)
Authorized the City Manager to negotiate a Professional Services Agreement (PSA) with Wittman Enterprises, LLC (Wittman) for Emergency Medical Services (EMS) billing and collection services in an amount not to exceed $825,000 for five years with an option for an additional 5-year extension
h. Office of Traffic Safety Grant Acceptance
Resolution Approving the Acceptance and Appropriation of State of California Office of Traffic Safety Grant Funds in the Amount of $92,000 for the “Selective Traffic Enforcement Program” (“STEP”) Grant from October 1, 2024, Through September 30, 2025, and Authorizing the City Manager to Execute a Grant Agreement and Any Other Documents Related to the Grant (PD)
Resolution 15352 - Resolution Approving the Acceptance and Appropriation of State of California Office of Traffic Safety Grant Funds in the Amount of $92,000 for the “Selective Traffic Enforcement Program” (“STEP”) Grant from October 1, 2024, Through September 30, 2025, and Authorizing the City Manager to Execute a Grant Agreement and Any Other Documents Related to the Grant
i. Special Event Street Closure in San Rafael – 43rd Annual Holiday of Lights and Winter Wonderland
Resolution Authorizing the Temporary Closure of Downtown Streets in San Rafael for a Special Event (PD)
Resolution 15353 - Resolution Authorizing the Temporary Closure of Downtown Streets in San Rafael for a Special Event
AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None

SPECIAL PRESENTATIONS

6. Special Presentations:

Mayor Kate invited public comment; however, there was none. a. Presentation of Proclamation Supporting Native American Heritage Month, 2024 Tribal Council Member Matthew Johnson provided comments.

OTHER AGENDA ITEMS

7. Other Agenda Items:
a. Encampment Resolution Fund Round 3 (ERF-3) and State of California/State Senator McGuire Funding Agreements, and Collaboration Agreement Between the County of Marin and City of San Rafael
Authorize the City Manager to Execute Professional Services Agreements with the County of Marin Related to the Encampment Resolution Fund Round 3 (ERF-3) and State of California/State Senator McGuire Funding, and Authorize the City Manager to Execute the Collaboration Agreement Between the County of Marin and City of San Rafael (CM) 7 Authorized the City Manager to execute professional services agreements with the County of Marin Related to the Encampment Resolution Fund Round 3 and State of California/State Senator McGuire funding; and authorized the City manager to Execute (and amend as needed) the collaboration agreement between the County of Marin and City of San Rafael for Encampment Resolution Fund Round Three (ERF-3) grant funds, the State of California/Senator McGuire funds, and the 50/50 match for housing-based case manager Assistant City Manager John Stefanski presented the Staff Report.

Mayor Kate invited public comment.

Speaker: Marin County Supervisor Mary Sackett
Councilmembers provided comments.

Councilmember Kertz moved and Councilmember Hill seconded to authorize the City Manager to execute professional services agreements with the County of Marin related to the Encampment Resolution Fund Round 3 and State of California/State Senator McGuire funding; and to authorize the City manager to execute (and amend as needed) the collaboration agreement between the County of Marin and City of San Rafael for Encampment Resolution Fund Round Three (ERF-3) grant funds, the State of California/Senator McGuire funds, and the 50/50 match for housing-based case manager.

AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None
Authorized the City Manager to execute professional services agreements with the County of Marin Related to the Encampment Resolution Fund Round 3 and State of California/State Senator McGuire funding; and authorized the City manager to Execute (and amend as needed) the collaboration agreement between the County of Marin and City of San Rafael for Encampment Resolution Fund Round Three (ERF-3) grant funds, the State of California/Senator McGuire funds, and the 50/50 match for housing-based case manager

PUBLIC HEARINGS

8. Public Hearings:
a. Marin Sanitary Service Rates and Amendments for 2025 Resolutions (CM):
i. Approving a Fifth Amendment of the Amendment and Restatement of the Collection Agreement of the City of San Rafael with Marin Sanitary Service ii. Authorizing Maximum Rates Collected by Marin Sanitary Service for Refuse and Recyclable Material Collection and Disposal Services to be Effective January 1, 2025, and Adopting a City Cost of Solid Waste Service Fee, Refuse Vehicle Impact Fee, and Franchise Fee for the Use of City Property in the Provision of Solid Waste Related Services
Sustainability Program Manager Cory Bytof and Lieutenant Todd Berringer presented the Staff Report.

Staff responded to questions from the City Council.
8 Mayor Kate invited public comment.

Speakers: Shinji Sakai-Egi, Elizabeth Rodriguez, Voces del Canal, Rosa Vasquez, Voces del Canal, Gloria Barrios, Voces del Canal, Virginia Sabino, Ria Staff responded to questions raised during public comment.

Councilmembers provided comments.

Vice Mayor Hill moved and Councilmember Bushey seconded to adopt the resolution approving a Fifth Amendment of the Amendment and Restatement of the Collection Agreement of the City of San Rafael with Marin Sanitary Service.

AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None
Resolution 15354 - Resolution Approving a Fifth Amendment of the Amendment and Restatement of the Collection Agreement of the City of San Rafael with Marin Sanitary Service Councilmember Bushey moved and Councilmember Llorens Gulati seconded to adopt the resolution Authorizing Maximum Rates Collected by Marin Sanitary Service for Refuse and Recyclable Material Collection and Disposal Services to be Effective January 1, 2025, and Adopting a City Cost of Solid Waste Service Fee, Refuse Vehicle Impact Fee, and Franchise Fee for the Use of City Property in the Provision of Solid Waste Related Services.

AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None
Resolution 15355 - Resolution Authorizing Maximum Rates Collected by Marin Sanitary Service for Refuse and Recyclable Material Collection and Disposal Services to be Effective January 1, 2025, and Adopting a City Cost of Solid Waste Service Fee, Refuse Vehicle Impact Fee, and Franchise Fee for the Use of City Property in the Provision of Solid Waste Related Services Patty Garbarino, Marin Sanitary Service, provided comments. b. BioMarin Development Agreement
Accept the 4th Anniversary Annual Report for the Executed Development Agreement (Ordinance No. 1982) Between BioMarin Pharmaceutical and the City of San Rafael for the Development of an Expanded San Rafael Corporate Center (750-790 Lindaro Street and 781-791 Lincoln Avenue and 999 3rd Street); Case No.: DA18-001 (CED) Community & Economic Development Director Micah Hinkle introduced Charity Wagner, consultant planner who presented the Staff Report.

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

Councilmembers provided comments.

Vice Mayor Hill moved and Councilmember Llorens Gulati seconded to accept the 4th Anniversary Annual Report for the Executed Development Agreement (Ordinance No. 9 1982) Between BioMarin Pharmaceutical and the City of San Rafael for the Development of an Expanded San Rafael Corporate Center (750-790 Lindaro Street and 781-791 Lincoln Avenue and 999 3rd Street); Case No.: DA18-001
AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None
Accepted report

OPEN TIME FOR PUBLIC EXPRESSION
• Name withheld, addressed the City Council regarding the Board of Supervisors meeting and the Richmond San Rafael Bridge pedestrian bike access.

City Attorney Rob Epstein announced that there was reportable action taken in closed session. The City Council unanimously authorized the initiation of a civil action for breach of contract and indemnity against Kimley-Horn in connection with engineering services that they provided to the City several years ago.

ADJOURNMENT:

Mayor Kate adjourned the meeting at 8:12 p.m.
__________________________
LINDSAY LARA, City Clerk

APPROVED THIS _____DAY OF____________, 2024

_____________________________________
KATE COLIN, Mayor
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 4.b
Meeting Date: November 18, 2024

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community & Economic Development
Prepared by: Stacey Laumann
Sr. Management Analyst
City Manager Approval: ______________
TOPIC: DOWNTOWN BUSINESS IMPROVEMENT DISTRICT (BID) ASSESSMENT ANNUAL

RENEWAL
SUBJECT: RESOLUTION DECLARING THE CITY COUNCIL’S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR CALENDAR YEAR 2025 FOR THE DOWNTOWN SAN RAFAEL

BUSINESS IMPROVEMENT DISTRICT
RECOMMENDATION:

Accept the 2024 Annual Report and adopt the resolution declaring the City Council’s intention to levy an annual assessment for the calendar year 2025 for the Downtown San Rafael Business Improvement District.

BACKGROUND:

Section 36500 of the California Streets and Highways Code allows for the creation of a business improvement district (BID) within a municipality, whereby businesses within the district self-assess an annual fee to pay for improvements and activities that benefit the overall business district. The intent of the state law is to provide a funding mechanism for business districts to promote economic vitality. The City of San Rafael’s role is to levy and collect membership fees from businesses within the district.

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

The expanded district includes the West End and some side streets, as well as non-ground floor tenants and other tenants not included in the original BID. 2024 marks the first complete year of BID administration by the San Rafael Chamber of Commerce, a transition that started in September 2023.

The BID has achieved many notable accomplishments in 2024 as highlighted in its Annual Report (Attachment 2), including leveraging a cost-sharing agreement with the Downtown San Rafael Arts District (DSRAD) to fund storefront beautification projects; a successful 1st Annual “Dancing Under the Lights” event which brought together music, dancing, art, and local businesses for an evening of celebration; and yet another successful “Annual Clean and Green Day” (held on Earth Day) which brought together more than 40 volunteers to help mulch, remove graffiti, pick up litter, and clean parking meters and poles.

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

State law requires the BID to submit to the City Council an annual report for which assessments are to be levied and collected to pay the costs of the improvements and activities described in the report. The report may propose changes, including, but not limited to, the boundaries of the parking and business improvement area or any benefit zones within the area, the basis and method of levying the assessments, and any changes in the classification of businesses if a classification is used.

Staff reviewed the San Rafael Downtown BID’s 2024 Annual Report and the BID 2025 Budget & 2024 Financial Summary (Exhibit C) and found they meet the required elements as follows:

1. There are no proposed changes in the boundaries of the BID

2. The budget outlines the improvements and activities programmed for the calendar year 2025.

3. The budget outlines the estimated cost of improvement and activities outlined for calendar year 2025.

4. The budget outlines the surplus or deficit being carried over from the previous calendar year.

5. The budget outlines contributions anticipated from sources other than assessments, including City funds.

As of October 25, 2024, the City of San Rafael collected $63,525 in BID annual assessments for 2024.

For calendar year 2025, the annual assessment levy on businesses will be the same as in prior years.

See Exhibit B to the Annual Report for the 2025 Assessment Formula.

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

Meeting #1 – November 18, 2024
Adopt Resolution of Intention to Levy an Annual Assessment: The City Council will consider action to accept the BID annual report and adopt the resolution of intention to levy an annual assessment for the calendar year 2025. The resolution sets a public hearing date of December 16, 2024.

Meeting #2 – December 16, 2024
Public Hearing on Annual Assessment: The City Council will have the opportunity to receive additional input from the public on the annual BID assessment and to confirm the levy of an assessment for the upcoming calendar year 2025.

COMMUNITY OUTREACH:

The BID will notify its members of the annual renewal process through its member communications, including the BID e-newsletter, notifications on the BID website, and agenda items at the monthly BID Board meeting. The City will also provide notice of the December 16, 2024, public hearing of the annual assessment in the Marin Independent Journal.

FISCAL IMPACT:

There is no direct fiscal impact to the City associated with this action. The 2025 BID Assessment is anticipated to generate $65,000 which is collected by the City of San Rafael on behalf of the BID and, in turn, is passed on to the San Rafael Chamber of Commerce, the BID’s managing agent, two times per year. All administrative costs associated with collecting the assessment are absorbed by the General Fund.

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

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

1. Accept the report and adopt the resolution as presented.

2. Accept the report and adopt the resolution with modifications.

3. Decline to accept the report and decline to adopt the resolution.

4. Take no action.

RECOMMENDED ACTION:

ATTACHMENTS:

1. Resolution

2. BID 2024 Annual Report, including:

A. Exhibit A: BID Map
B. Exhibit B: 2025 BID Assessment Formula
C. Exhibit C: BID 2025 Budget & 2024 Financial Summary
RESOLUTION NO.

RESOLUTION OF THE SAN RAFAEL CITY COUNCIL DECLARING THE CITY COUNCIL’S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR CALENDAR YEAR 2025 FOR THE DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT

DISTRICT
WHEREAS, California Streets and Highways Code Sections 36500 et seq. authorizes cities to establish parking and business improvement areas for the purpose of promoting economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent erosion of business districts; and
WHEREAS, the Downtown San Rafael Business Improvement District (“BID”) was established in 2013 to amend the existing Parking and Business Improvements District instituted in 1979 in the commercial area on and around the Fourth Street corridor in San Rafael; and
WHEREAS, pursuant to San Rafael Municipal Code Chapter 10.09 and California Streets and Highways Code Section 36533, the Advisory Board of the BID shall prepare an annual report for each calendar year in which assessments are to be levied, which the City Council shall review; and
WHEREAS, the BID Advisory Board has prepared and filed with the City Clerk its “BID 2024 Annual Report,” and the City Council has reviewed and approved the report; NOW THEREFORE BE IT RESOLVED by the City Council of the City of San Rafael as follows:

1. The City Council intends to levy and collect an annual benefit assessment for the calendar year 2025 on businesses in the Downtown San Rafael Business Improvement District to pay for selected improvements and activities of the BID.

2. The boundaries of the entire area to be included in the BID, and the boundaries of each separate benefit zone within the BID, are set forth in Exhibit A to the BID 2024 Annual Report on file with the City Clerk.

3. The types of improvements and activities proposed to be funded by the levy of assessments on business in the BID are set forth in the BID 2024 Annual Report on file with the City Clerk.

4. The method and the basis for levying the benefit assessment on businesses within the BID and proposed assessments to be levied for calendar year 2025 are set forth in San Rafael Municipal Code Section 10.09.050 and Exhibit B to the BID 2024 Annual Report on file with the City Clerk.

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

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

7. A public hearing to consider the levy of the BID assessment shall be held before the City Council on December 16, 2024 at 6:00 pm in the Council Chambers, 1400 Fifth Avenue, San Rafael, California or by teleconference by visiting https://www.cityofsanrafael.org/departments/public-meetings/ for the call-in phone number and meeting ID listed on the agenda (or using Zoom app to connect to this meeting ID).

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

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

9. If at the conclusion of the public hearing on December 16, 2024, there is a record of written protests by business owners within the BID who will pay fifty percent (50%) or more of the total assessments of the entire BID, no further proceedings to levy the proposed assessment shall occur for a period of at least one year from the date of the finding of the majority written protest by the City Council. If the majority of written protest is against the furnishing of a specified type or types of improvement or activity within the area, those types of improvements or activities shall be eliminated.

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

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

I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 18th day of November 2024, by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Lindsay Lara, City Clerk
2024
ANNUAL
REPORT
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]
Downtown San Rafael Business
Improvement District
WHO WE ARE & WHAT WE DO…
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]
Dear fellow BID Members.

Last year, we experienced a profound loss with
the passing of our colleague, Jed Greene, who
was not only a valued BID Board member but
also a dear friend to many of us. We extend our
heartfelt condolences to his family during this
difficult time.
2024 has been a year of accomplishments and a
year of firsts. Our accomplishments include:
supporting the growth of the Thursday Night
Summer Farmers Market, amazing volunteers
mulching the intersections of Downtown for
further beautification, and an increase in public
art with vivid artwork on power boxes
throughout downtown.

The BID produced our first Lunar New Year
celebration, our first Pride Art Walk, our first
Juneteenth Happenings Page, and our first
Dancing Under the Lights. As we look ahead to
2025, we will continue to build inclusion within
our whole community. We will explore ideas for
beautification and events to benefit the
downtown, while remaining open to new
opportunities and possibilities.

The BID has completed its first calendar year
partnered with the San Rafael Chamber of
Commerce. I would like to thank Karen Strolia
for her active participation and supporting voice
and standing with us as we turn the pages of
what’s next; together.

Terrance Thornton, President
BOARD & STAFF 2024 LETTER FROM THE PRESIDENT
The Downtown San Rafael Business Improvement District (BID) is a 501 C(6) nonprofit corporation established in 1979 to revitalize the downtown corridor and promote the common interests of Downtown businesses. Through attention to streetscape, marketing and promotions, special events and advocating on issues of safety, public parking and other factors affecting the economic vitality of the downtown district, the BID fulfills its mission. The BID is a special assessment district formed to fund services, activities and programs above and beyond services provided by the City, for the purpose of improving the common areas and strengthening businesses within the district.

What is the BID?
Join our team &
become a board
member!
Karen Strolia
San Rafael Chamber of
Commerce
Prospective New Board Members for 2025:

Karina Ramirez-Cortez, Multicultural Center of Marin
Joe & Saandra Carlo, Pink Owl Coffee
BID ACCOMPLISHMENTS 2024
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]
Marketing, Promotions, Programming, Fundraising, & Collaborations ▪ 2024 Social Media Marketing – In its second year, the BID continued the social media marketing plan by showcasing 3 businesses per week on Instagram and Facebook with its
remarkable social media contractor. FB = 4,396 followers (up 200 from last year), IG = 2,969 followers (up 300 from last year). Over the last 90 days, our audience reach has gone up 97% on Facebook, and engagement has gone up 46%. For
Instagram we have reached over 16k accounts.
▪ Fundraising & Event Management – Three of our four
signature events are fundraisers, and through these efforts, we were able to net roughly $20k to the BID in operations support.
▪ Fe-BREW-ary – In its 2nd year, the BID continued the wellknown North Bay February brewery promotion through a partnership with SMART.
▪ Scavenger Hunts – Our community is highly responsive to family-friendly activities in the Downtown, so the BID
introduced two new scavenger hunt-based promotions to
bring people Downtown. The Chinese New Year & Pride
Scavenger Hunts bolstered visitation, while also celebrating diversity and art. The 3rd Annual Elf Hunt will be held. ▪ Adding Culturally Diverse Promotions – We created several new promotions Downtown to bring more culturally
responsive, diverse, relevant, & inclusive events to our downtown celebrating - Chinese New Year, Pride Month, and Juneteenth.
▪ Storefront Beautification Projects – The BID has proposed potential opportunities to the City’s Economic Development Department to find more funding to increase power washing, business frontage grants, awning cleaning, and more.
▪ Beautifying the Vacancies at 1001 4th Street – The BID was vocal about beautifying the vacant buildings on 4th Street, and supported efforts led by the City’s Economic Development Department and the Downtown San Rafael Arts District to add public art to the large buildings located at 1001 4th Street.

A substantial window mural is set to be installed in late 2024. ▪ Website management, calendar, & promotions – Since
2023, the BID has managed the updates to our
DowntownSanRafael.org website, saving us $1440/year. The Director strives to provide clear, fun, relevant, and timely information on our Downtown San Rafael website. NEW this year, is the online community Calendar for businesses to post their own events. Our website is THE place to learn about all things Downtown – promotions, events, news, online
directory, shopping, dining, etc.

BID ACCOMPLISHMENTS 2024
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]
▪ Landscaping upgrades – The BID is in its 2nd
year of the volunteer-led “mulching
project”. The BID coordinates 3 days per year
to weed and mulch all of the intersections on
4th Street.
▪ Public Art Inclusion Efforts – The Director of
the BID sat on the steering committee for the
Downtown San Rafael Arts District (DSRAD) to
identify opportunities to expand public art
and arts programming in the Downtown. The
BID proposed the following projects for 2024
and 2025 with the funding focused on
beautifying Downtown: cultural event
window paintings, a rainbow crosswalk,
matching mural grant funding for Downtown
businesses, a downtown public art sculpture,
under-the-freeway mural projects, and an
expanded utility box art program to
enliven more utility boxes in Downtown.
• Thursday Night Summer Farmer’s Market
growth The BID supported AIM in promoting
and marketing the weekly Thursday Night
Summer Market, to expand attendance and
reach.
▪ Partnerships – Continued and strengthened
partnerships with the following organizations
to bring more foot traffic to our Downtown
Businesses: SR Chamber, Pacifics Baseball
Team, Embassy Suites, DSRAD, California Film
Institute, SMART, Marin Convention & Visitors
Bureau, City Council.
▪ Member emails, newsletters, and updates
– The BID shares all things downtown with its
members via monthly Newsletters.
▪ Transit Center Conversation The BID joined
the conversation to hear about the updates
and impact of the new San Rafael Transit
Center.
▪ Bike Route Dedication – The BID is working
with the City to explore dedicating the
Downtown Bike Route to our dear friend, and
bike enthusiast, Jed Greene, as well as some
other ideas.

Marketing, Promotions, Programming, Fundraising, & Collaborations BID EVENTS 2024
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]

FUNDRAISERS
▪ 34th Annual May Madness (May 11) – This Annual event
produced by Rick Lewis, the volunteer BID Event Committee, and the Director of the BID brought roughly 5,000 people to Downtown. We raised over $26k (a new record!) to be split between the BID and other local non-profits.
▪ Total Expenses = $16,268.42 /Total Income = $43,030.50 ▪ Event Net Profit = $26,762
▪ Net Profit for BID = $13,381.04
▪ Dancing Under The Lights (Aug 9) – A pivot from Dining Under the Lights, this new annual celebration in Downtown San Rafael brought together music, dancing, art, and local businesses for an evening of joy and community connection.

Being a 1st Annual, we are hoping to grow sponsorships and beverage income to make this signature event a bigger
fundraiser.
▪ Total Expenses = $16,742.77 / Total Income =
$16,950.45
▪ Net Profit for BID = $207.68
▪ 4th Annual Hops & Vines Stroll (Sept 21) – The Annual Hops & Vines Stroll brought nearly 300 people INTO Downtown
Businesses for an afternoon of craft beer, wine and spirit tastings, and local camaraderie.
▪ Total Expenses = $6,759.76 / Total Income = $9,480
▪ Net Profit for BID = $2,720.24
• San Rafael Holiday of Lights & Winter Wonderland on
Shop Small Saturday 2023 – For the second year in a row, the BID event committee volunteered to keep this tradition alive by creating a paired-down version of the 45-year-old event the day after Thanksgiving. Our intimate version of this event, that was once produced by a professional event company, was designed to bring people to Downtown on
Shop Small Saturday. The event brought over 2000 people to Downtown on Shop Small Saturday. We are looking to
engage an event producer to take over the event in 2024 so it can be bigger and better! Below are our fundraising
numbers from 2023.
▪ Total expenses = $16,584.40 / Total Income =
$23,926
▪ Net Profit to BID = $7,341.60
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]

ECONOMIC DRIVERS
▪ Clean & Green Day, City of San Rafael & The
BID (April 22) – The City and BID join efforts
every year on Earth Day to promote Clean and
Green Day by inviting more than 40 volunteers
to help mulch, remove graffiti, pick up litter, and
clean parking meters and poles.
• Downtown San Rafael May Madness Classic
Car Cruise (May) – The BID kicks off the May
Madness Car Show & Parade Celebrations early
and participants cruise 4th Street the Friday
night before the big festival, to bring more
people to Downtown and celebrate this historic
tradition.
• West End Block Party (8 Fridays from AugustOct) – This popular event held in the West End, includes bands booked by the Pint Size
Lounge. It drew hundreds of people to not just
the West End, but to the broader Downtown
area. Past surveys showed that people travel
from all over Marin and throughout the Bay
Area to enjoy the exceptional music and
atmosphere.
• 36th Annual Trick or Treat on 4th Street & Pet
Costume Contest (Oct. 26) – This Annual
tradition brings hundreds of smiling families to
our Downtown!
▪ Annual Menorah Lighting (Dec. tbd) - For
the 3rd year, we will be collaborating with
Chabad of Marin to light a Giant Menorah in
celebration of Hanukkah. We will offer
latkes, hot chocolate, dancing, and a gelt
drop!
BID EVENTS 2024
BID PROMOTIONS 2024
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]

THE BID SUPPORTED & PROMOTED COMMUNITY EVENTS
Downtown San Rafael BID Preliminary
Work Plan 2025
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]

FUTURE MARKETING, PROGRAMMING, EVENTS, & OPERATIONS
▪ Public Art – Work with Downtown San Rafael Arts
District (DSRAD) and the City Library & Rec Director to finalize plans to expand public art in Downtown.
▪ Make “Mulching Project” Permanent – Create a
final schedule for 2025 to make the Downtown
“Mulching Project” a dedicated, ongoing effort..
▪ Power Washing – Assist in supporting and
expanding the existing scheduled power washing
plan for Downtown San Rafael. Request and share
monthly reports of the blocks cleaned.
▪ Graffiti Removal - The volunteer of the year, Tom
Harrison, has been spending his own time and
money to remove the graffiti in Downtown for many
years. The BID would like to propose a small annual
budget to give to him for 2025.
▪ Frontage Improvements – Work with the Economic
Development Department & DPW to explore more
opportunities for Downtown Beautification (business
frontage grants, awning cleaning, and more).
▪ Vacancies –Work with the City’s Economic
Development Department to assist with their
strategy to fill vacancies, by sharing the City GoProgram & support Art Installations in vacancies by creating a BID committee in 2025.
▪ Social Media Marketing Plan – Increase the budget
for our social media contractor to showcase
businesses weekly on Instagram and Facebook.
▪ Thursday Night Summer Farmer’s Market growth
– Work with AIM to assist in promotion and
marketing to expand the weekly Thursday Night
Summer Market. Possibly add the A to B block to
include an Outdoor Dining experience.
▪ Support our Culturally Diverse Activities –
Increase awareness of the events supporting
culturally diverse communities in Marin – Lunar New
Year, Pride Month, Juneteenth, Banned Books Week,
Dia de los Muertos, Menorah Lighting, and more – by
adding more promotion and participation.
▪ Outdoor Movie Night – Work with DSRAD and Parks
& Rec to bring their successful outdoor movie night in
the park program to our Downtown.
▪ Promotional Programs - Continue the Fe-BREW-ary
promotion and scavenger hunt-based promotions to
get people INTO local businesses.
▪ Partnership & Collaboration – Continue to align the
BID with DSRAD stakeholders, the SR Chamber,
Pacifics, Embassy Suites, the City, SMART, SRPD, etc.
▪ CBiD Support - The BID will work with the Chamber
and the City to support the efforts to introduce the
new Community Benefit District (CBiD) to enhance
economic vitality to our Downtown.
▪ Communication with members/community –
Continue engagement via website, email, newsletters,
social media, and in person.
▪ Events: The BID has committed to continue events
produced in 2024 – May Madness, Dancing Under
the Lights, Hops & Vines Stroll, and Trick or Treat.

Dear Friends of Downtown San Rafael,
With less than $60k in our operating budget, I strive to produce events and promotions that either raise money or pay for themselves to make sure we have a robust calendar of activity downtown. This year, we saw an array of brandnew festivities that brought vibrancy, art, and community to our downtown – Chinese New Year Dragon Hunt, Pride
Month window paintings, the Juneteenth Happenings page
on our website, and Dancing Under the Lights. I am hoping that these 1st annuals become staples in our Downtown
schedule of promotions for years to come.

Additionally, upcoming public art plans and our 2nd Annual Mulching Project will help make the downtown area more
visually appealing for everyone. For the second year, our social media contractor has been vital in making sure that our businesses are highlighted and that Downtown is a
destination location to eat, shop, and play. Our website continues to be the place to learn about all things
downtown, especially now with its newly added community calendar.

I want to extend my thanks to Karen Strolia, CEO San Rafael Chamber, for a delightful first year of partnership. Also, to the City of San Rafael for their support this past year in helping make many of our projects a reality. And a special thank you goes to our Board — your voice and passion for Downtown has been crucial in getting things done!
Looking ahead, I am interested to see how the discussions surrounding the Community Benefit District (CBID) unfold, as it could hold more potential for the future of downtown.

Here’s to building on the momentum of 2024 - focusing on strengthening our existing events and beautification
programs and creating even more opportunities for our
downtown to thrive in the years to come!
-Sarah Tipple, Director
4th
5th
Marin
Fremont
Reservoir
2nd
3rd
Nye
Pacheco
Clorinda
Paloma
E
1st
spalda
Colem an
Plum
Tree
Mission
Forbes
Lincoln
Prospect
Ross
West
D
G
C
H
B
Clark
Pine
Eye
Robert Dollar Scenic
Miramar
Irwin
Tamalpais
Beryl
Shaver
Cijos
Bayview
Center
Jessup
Lootens
CullodenPark
Welch
Elford
Taylor
Live
Oak
J
Francisco
A
Treanor
Court
Ritter
Twin
Oaks
East
Hwy 101 NWP RR
El Cerrito
Clayton
Bryn Mawr
Via
Sessi
El Camino
Los
Rob el s
Cottage
Wilkins
Maple
E
Viox
Willow
Hart
Hayes
Jones
Gloria
S
MART
Train
Latham
Hetherton
Lindaro
Harcourt
Foster
Cala
Vista
Commercial
F
Laurel
Woods
Garden
Walter
Lunny
Brooks
Julia
Upper
Fremont
Trost
Tampa
Ida
Ros s
Street
Scenic
Frances
Bonnie Brae
Stewart
Quarry
Andersen
Curtis
Stevens ...

Fairh ills
La Vi s ta
Hillcrest
Knoll
Graceland
Treehaven
Albert Park
Miraflores
Robert Dollar Fire
Document Path: X:\Finance\BID\BID_Edits_20180802.mxd ZBaron Print Date: 8/13/2018 San Rafael Business Improvement District (BID) PREMIUM BID -

STANDARD BID -
BID Assessment Formula
Exhibit B
San Rafael Business Improvement District Proposed Budget for 2025 as of 10.25
Estimate Year 2024 Projected 2025
INCOME BID Assessments 63,525.00 64,000.00
Utility Box Painting (DSRAD) 1,000.00 10,000.00
Public Art Programming (DSRAD) 0.00 10,000.00
Lunar New Year 2,050.00 2,050.00
May Madness 13,381.04 14,000.00
Pride Art Walk 2,302.03 2,300.00
DUTL-Dancing Under the Lights 16,950.45 18,000.00
Hops & Vines 9,480.00 11,000.00
Promotional Programming 1,000.00 1,000.00
Holiday Windows 2,050.00 2,050.00
Elf Hunt 1,000.00 1,000.00
Winter Wonderland 0.00 0.00
Menorah Lighting 0.00 0.00
Total Income 112,738.52 135,400.00

EXPENSES EVENTS & MARKETING EXPENSE
Beautification/Cleanliness Efforts 5,000.00 5,000.00
Utility Box Painting (DSRAD) 1,000.00 10,000.00
Public Art Programming (DSRAD) 0.00 10,000.00
Lunar New Year 1,420.63 1,400.00
Clean & Green Day 0.00 0.00
Mixers (Baseball, Fall, & Holiday) 1,500.00 1,500.00
Pride Art Walk 1,405.60 1,400.00
DUTL-Dancing Under the Lights 16,742.77 17,000.00
Hops & Vines 6,759.76 7,000.00
Trick or Treat 600.00 600.00
Promotional Programming 1,500.00 1,500.00
Holiday Windows 1,400.00 1,400.00
Elf Hunt 2,000.00 1,500.00
Winter Wonderland 3,000.00 3,000.00
Menorah Lighting 250.00 250.00
West End Promotions 1,300.00 1,300.00
Total EVENTS & MARKETING EXPENSE 43,878.76 62,850.00

OPERATING EXPENSES
Advertise/Marketing Social Media 2,600.00 4,000.00
Advertise/Marketing Online 1,000.00 3,000.00
Bank Fees 200.00 200.00
Computer Programs & Software 2,500.00 2,800.00
Consultant/Professional/Accounting 0.00 1,000.00
Insurance 1,926.00 2,000.00
Miscelleneous Expenses 74.00 75.00
Office Supplies 111.99 150.00
Payroll Staffing 50,000.00 50,000.00
Payroll Taxes 5,000.00 5,000.00
Worker's Compensation Insurance 533.00 550.00
Postage Mailing 225.00 225.00
Taxes/IRS 879.15 1,000.00
Telephone 1,500.00 1,500.00
Website Maintenance/Hosting 120.00 150.00

Page 1 of 2 ends

San Rafael Business Improvement District Proposed Budget for 2025 as of 10.25
Total OPERATING EXPENSES 66,669.14 71,650.00
Total INCOME 112,738.52 135,400.00
Total EXPENSE 110,547.90 134,500.00
TOTAL PROFIT/LOSS 2,190.62 900.00
Estimate Year 2024 Projected 2025

Page 2 of 2 ends

_ _ _

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Fire
Prepared by: Abraham Roman, Fire Chief
Jason Hatfield, EMS Battalion Chief
Thomas Wong, Sr. Mgmt. Analyst
City Manager Approval:

TOPIC: EMS EQUIPMENT REPLACEMENT
SUBJECT: AUTHORIZE THE CITY MANAGER TO PURCHASE THIRTEEN CARDIAC MONITORS,

TWO POWER LOAD GURNEYS, AND FIVE STAIRCHAIRS IN AN AMOUNT NOT TO EXCEED $678,237
RECOMMENDATION:

1. Authorize the City Manager to purchase thirteen cardiac monitors, two power load gurneys, and five stairchairs through a cooperative purchase agreement from Stryker in an amount not to exceed $678,237.

2. Authorize a budget appropriation from the Emergency Medical Services Fund (Fund 210) for the purchase of the equipment.

BACKGROUND:

The San Rafael Fire Department (SRFD) regularly replaces equipment to ensure a safe and effective emergency response. This life safety equipment has limited life spans, and replacements have been suggested at specific intervals. SRFD evaluates all equipment and, if it is safe to do so, extends the life of certain equipment based on each item and the risk of failure. SRFD worked on a comprehensive plan to address the equipment replacement needs over the next three to five years, and they determined the following items were most critical.

Cardiac Monitors: Twelve-lead capable cardiac monitors are a critical component of SRFD’s Emergency Medical Services (EMS) program, enabling paramedics to detect life-threatening conditions such as STelevation myocardial infarctions (STEMIs). These devices provide detailed 12-lead heart images, allowing paramedics to identify STEMIs in the field and initiate rapid transport to a cardiac catheterization lab. The early detection of STEMIs is crucial, as patients benefit most from procedures such as arterial stent placement, which can only be performed in a cardiac catheterization lab.

By identifying STEMIs early, our paramedics can alert the cardiac catheterization lab team in advance, ensuring they are prepared to treat the incoming patient. In many cases, our paramedics can transport STEMI patients directly to the catheterization lab, significantly reducing the “door-to-balloon” time—the interval between the patient's arrival and the start of treatment. This rapid intervention maximizes the Agenda Item No: 4.c
Date: November 18, 2024
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
patient’s chances of survival and recovery.

In addition to detecting STEMIs, cardiac monitors serve multiple vital functions on all medical emergency calls. They allow paramedics to continuously monitor key patient vitals, including blood pressure, pulse oximetry, heart rate, and carbon monoxide (CO) and carbon dioxide (CO2) levels. With SRFD responding to over 12,000 calls annually—approximately 70% of which are medical - our current 12-lead capable cardiac monitors are indispensable tools used daily in the field.

SRFD provides Advanced Life Support (ALS) from each fire engine, truck, and ambulance. This includes 13 different apparatus, all staffed with paramedics and capable of delivering ALS care. The cardiac monitors are part of the essential equipment required by Marin Emergency Medical Services for ALS units, ensuring we can meet the needs of our community.

In 2017, SRFD purchased the cardiac monitors that are currently in use. Over the past eight years, these monitors have been used extensively on medical calls and are approaching the end of their service life.

To continue delivering the highest standard of care and comply with required ALS equipment standards, we must replace these aging devices with new, reliable models.

This investment will ensure that SRFD can continue providing life-saving advanced cardiac care and remain compliant with operational standards, all while enhancing patient outcomes in our community.

Power Load Gurneys: SRFD currently operates a fleet of six ambulances, each equipped with an electronically powered gurney that allows for the raising and lowering of the cot with the press of a button.

These power load gurneys, which were introduced approximately 20 years ago, have become the industry standard for both patient and paramedic safety. By reducing the physical strain on paramedics and improving the stability of patient transfers, these gurneys play a crucial role in minimizing injury risks and enhancing the overall efficiency of emergency medical services.

With the addition of two new ambulances in October 2024, SRFD will retire its two oldest ambulances, each equipped with 12-year-old power gurneys. These gurneys are now at the end of their service life and have begun to require frequent service and repair, which is costly and operationally inefficient.

Replacing these aging gurneys with new models will ensure compatibility with the power load systems in our new ambulances and provide enhanced reliability and safety for both patients and paramedics.

ANALYSIS:

SRFD has conducted a comprehensive evaluation of cardiac monitors, stairchairs, and gurneys from several leading manufacturers, including Stryker, Zoll, Phillips, and Ferno. After careful consideration, it has been determined that continuing with our current medical device provider, Stryker, will provide operational and financial efficiencies for SRFD.

Remaining with Stryker offers several key benefits:
• Training Efficiency: Since the proposed equipment operates similarly to our existing Stryker devices, the time and resources required to train firefighters on the proper use of the new equipment will be significantly reduced. This consistency makes our personnel proficient and ensures a seamless transition to the upgraded devices.
• Operational Compatibility: SRFD currently operates seven Stryker power gurneys, all compatible with the power gurney lift mechanisms installed in each of our ambulances. Introducing a gurney from a different manufacturer that is not compatible with these lift systems would prevent us from rotating gurneys between ambulances, which is a critical practice when gurneys are out of service for repairs or maintenance. Maintaining the same manufacturer allows for the flexibility to rotate equipment as needed without disrupting operations.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
By standardizing equipment across SRFD, we also mitigate the risks associated with using multiple platforms, which can create unnecessary complications in both operations and maintenance. This consistency reduces the need for specialized training on different systems and streamlines the supply chain for repairs and parts.

Additionally, the Stryker products are purchased through a Sourcewell cooperative purchase agreement that ensures that the products have been competitively bid and are being acquired at the lowest price. In addition to the Sourcewell pricing, SRFD is maximizing cost recovery through the sale of the existing equipment back to Stryker.

FISCAL IMPACT:

The total anticipated cost of the EMS equipment is $678,237 (Attachment 1). Appropriations of $678,237 are requested for this purchase, from available fund balance within the Emergency Medical Service Fund (210).

OPTIONS:

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

1. Authorize the City Manager to purchase thirteen cardiac monitors, two power load gurneys, and five stairchairs in an amount not to exceed $678,237 and authorize the appropriation of available funding from the Emergency Medical Services Fund (Fund 210) for the purchase of the equipment.

2. Do not approve the purchase and provide further direction to staff.

RECOMMENDED ACTION:

1. Authorize the City Manager to purchase thirteen cardiac monitors, two power load gurneys, and five stairchairs through a cooperative purchase agreement with Stryker in an amount not to exceed $678,237.

2. Authorize a budget appropriation from the Emergency Medical Services Fund (Fund 210) for the purchase of the equipment.

ATTACHMENTS:

1. Quote from Stryker
Quote Summary
Delivery Address Sold To - Shipping Bill To Account
Name: SAN RAFAEL FIRE DEPT Name: SAN RAFAEL FIRE DEPT Name: SAN RAFAEL FIRE DEPT Account #: 20179643 Account #: 20179643 Account #: 20179643 Address: 1375 5TH AVE Address: 1375 5TH AVE Address: 1375 5TH AVE SAN RAFAEL SAN RAFAEL SAN RAFAEL
California 94901-1942 California 94901-1942 California 94901-1942 Equipment Products:
# Product Description Qty List Price Sell Price Total

1.0 70335-000042 LP35,EN-US,MAS-SP/CO,MED-CO2,SUNNIBP,12L,WIFI/CELL/LN/CPRIN,STD,BT13 $51,400.00 $41,120.00 $534,560.00

2.0 650705550001 6507 POWER PRO 2, HIGH CONFIG 2 $38,543.00 $30,834.40 $61,668.80

3.0 11140-000102 LIFEPAK FLEX Battery Charger 11 $3,000.00 $2,550.00 $28,050.00

4.0 11335-000005 LIFEPAK Printer Kit 4 $3,000.00 $2,400.00 $9,600.00

5.0 650700450301 ASSEMBLY, BATTERY CHARGER 2 $1,616.00 $1,292.80 $2,585.60

7.0 650707000002 KIT, ALVARIUM BATTERY, SERVICE 2 $1,129.00 $903.20 $1,806.40

8.0 11335-000001 LIFEPAK FLEX Lithium-Ion Battery 13 $1,000.00 $800.00 $10,400.00

9.0 11996-000520 LNCS-II Reusable rainbow 8-wavelength Pediatric Sensor
13 $978.00 $684.60 $8,899.80

10.0 11996-000519 LNCS-II Reusable rainbow 8-wavelength Adult Sensor 13 $889.00 $622.30 $8,089.90

11.0 11335-000008 LIFEPAK 35 Storage Bag Kit 13 $600.00 $510.00 $6,630.00

12.0 11111-000041 LIFEPAK 3-wire extended precordial ECG cable 13 $120.00 $96.00 $1,248.00

13.0 11260-000073 Shoulder Strap 13 $75.00 $63.75 $828.75

14.0 650700450102 ASSEMBLY, POWER CORD, NORTH AM 2 $37.00 $29.60 $59.20

19.0 6252000000 Stair-PRO Model 6252 5 $5,076.00 $4,060.80 $20,304.00

19.1 6252009001 Stair-Pro Operations Manual $0.01 $0.00 $0.00

19.2 6250001162 In-Service Video (DVD) $0.01 $0.00 $0.00 2024 Upgrade
Quote Number: 11014792 Remit to: Stryker Sales, LLC
21343 NETWORK PLACE
CHICAGO IL 60673-1213
USA
Version: 1
Prepared For: SAN RAFAEL FIRE DEPT Rep: Nate Bollinger Attn: Email: [email protected]
Phone Number: (916) 716-9873
GPO: Sourcewell contract 041823-STY
Quote Date: 11/07/2024
Expiration Date: 02/05/2025
Contract Start:

Contract End:
11/01/2024
10/31/2025
1 Stryker Medical - Accounts Receivable - [email protected] - PO BOX 93308 - Chicago, IL 60673-3308 # Product Description Qty List Price Sell Price Total

19.3 6252026000 Common Components $0.01 $0.00 $0.00

19.4 6250021000 2 Piece ABS Panel Seat $0.01 $0.00 $0.00

19.5 6250160000 Polypropelene Restraint Set(Plastic Buckles) $0.01 $0.00 $0.00

19.6 6252022000 Main Frame Assy Option $0.01 $0.00 $0.00

19.7 6250024000 Standard Length Lower LiftHandles $0.01 $0.00 $0.00

19.8 6252027000 Footrest Option $422.00 $337.60 $1,688.00

19.9 6252025000 IV Clip Option $213.00 $170.40 $852.00

20.0 11330-000026 LP35 Docking Station 4 $3,200.00 $2,560.00 $10,240.00 Equipment Total: $707,510.45
Trade In Credit:

Product Description Qty Credit Ea. Total Credit
TR-LP15H-LP35 TRADE IN LP15 V4 HIGH FOR LP35 13 -$8,000.00 -$104,000.00 TR-SSC-LP35 TRADE IN STRYKER STAIR-PRO FOR LP35 5 -$500.00 -$2,500.00 TR-SPCOT-LP35 TRADE IN STRYKER POWER COT FOR LP35 2 -$4,000.00 -$8,000.00 Data Solutions:
# Product Description Qty List Price Sell Price Total

6.0 11150-000020 LIFEPAK Cellular Modem, North America 13 $1,500.00 $1,200.00 $15,600.00

18.0 81000001 EMS Pro Tier 1: <5,000 annual run volume.

Includes: device set up tools, asset management,
transmission connectivity, ePCR integration,
LIFENET Care app and browser access for
communication, live streaming and post event
analytic tools.
1 $518.00 $492.10 $492.10
Data Solutions Total: $16,092.10
2024 Upgrade
Quote Number: 11014792 Remit to: Stryker Sales, LLC
21343 NETWORK PLACE
CHICAGO IL 60673-1213
USA
Version: 1
Prepared For: SAN RAFAEL FIRE DEPT Rep: Nate Bollinger Attn: Email: [email protected]
Phone Number: (916) 716-9873
GPO: Sourcewell contract 041823-STY
Quote Date: 11/07/2024
Expiration Date: 02/05/2025
Contract Start:

Contract End:
11/01/2024
10/31/2025
2 Stryker Medical - Accounts Receivable - [email protected] - PO BOX 93308 - Chicago, IL 60673-3308 Price Totals:

Estimated Sales Tax (11.070%): $65,646.26
Freight/Shipping: $3,488.00
Grand Total: $678,236.81
Comments/Terms/Signatures
Prices: In effect for 30 days
Terms: Net 30 Days
Terms and Conditions:

Deal Consummation: This is a quote and not a commitment. This quote is subject to final credit, pricing, and documentation approval. Legal documentation must be signed before your equipment can be delivered. Documentation will be provided upon completion of our review process and your selection of a payment schedule. Confidentiality Notice: Recipient will not disclose to any third party the terms of this quote or any other information, including any pricing or discounts, offered to be provided by Stryker to Recipient in connection with this quote, without Stryker’s prior written approval, except as may be requested by law or by lawful order of any applicable government agency. A copy of Stryker Medical's terms and conditions can be found at https:// techweb.stryker.com/Terms_Conditions/index.html.
2024 Upgrade
Quote Number: 11014792 Remit to: Stryker Sales, LLC
21343 NETWORK PLACE
CHICAGO IL 60673-1213
USA
Version: 1
Prepared For: SAN RAFAEL FIRE DEPT Rep: Nate Bollinger Attn: Email: [email protected]
Phone Number: (916) 716-9873
GPO: Sourcewell contract 041823-STY
Quote Date: 11/07/2024
Expiration Date: 02/05/2025
Contract Start:

Contract End:
11/01/2024
10/31/2025
3 Stryker Medical - Accounts Receivable - [email protected] - PO BOX 93308 - Chicago, IL 60673-3308 ____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 4.d
Meeting Date: November 18, 2024

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Paul Navazio, Finance Director City Manager Approval: _________ TOPIC: CITY QUARTERLY INVESTMENT REPORT
SUBJECT: ACCEPTANCE OF CITY OF SAN RAFAEL QUARTERLY INVESTMENT REPORT FOR THE QUARTER ENDING SEPTEMBER 30, 2024
RECOMMENDATION:

Accept the investment report for the quarter ending September 30, 2024, as presented.

BACKGROUND:

Under the State of California Government Code Section 53601 and the City’s investment policy, last approved by the City Council on June 17, 2024, staff provides the City Council with a quarterly report on the City's investment activities and liquidity. The report includes the cost of each investment, the interest rates (yield), maturity dates, and market value. Separate reports are prepared for the City and the Successor Agency to the San Rafael Redevelopment Agency.

The City invests some of its pooled funds in the Local Agency Investment Fund (LAIF), a State-run investment pool. Beginning in March 2014, the City incorporated an investment strategy that added purchases of securities outside of LAIF with the assistance of an investment advisor. The City’s current investment advisor is Chandler Asset Management.

ANALYSIS:

As of September 30, 2024, the City’s Treasury consisted of investments with a total market value of $109,898,780 consisting of $61,188,584 in the City’s primary Local Agency Investment Fund (LAIF) account and $48,710,196 in externally managed investments (which includes $893,500 of Pt. San Pedro Assessment District bonds). An additional $5,499,359 represents cash balances in the City’s various operating bank accounts, including Westamerica Bank ($4,406,842), Bank of the Marin ($790,229), and Bank of Montreal ($302,288).

As of September 30, 2024, the weighted average yield on the total portfolio was 4.43%, which results from an effective yield of 4.52% for the City’s investments in the Local Agency Investment Fund and a yield of 4.32% for the externally managed investments. The overall return on the total portfolio for the quarter ending September 30, 2024, was 4.01%, with a weighted average maturity of 0.97 years, and SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
compares favorably to the benchmark (1-3 Year Treasury Index) of 3.71%. This favorable variance is due to the improved interest rate environment over the past year, as new higher-yield investments are being made, replacing lower-yield investments, primarily upon maturity.

The City’s investment portfolio maintains strong diversification and is experiencing growth in interest income due to higher market rates. All investments comply with the City’s investment policy and the California Government Code.

Economic Outlook:

The Federal Open Market Committee (FOMC) delivered the first rate cut of the easing cycle with a 50 basis point cut at the September meeting. Although a reduction in the Federal Funds Rate was widely anticipated, the magnitude was somewhat of a surprise, as market participants were split between whether the FOMC would cut by 25 basis points or 50 basis points. The Federal Reserve released the quarterly Summary of Economic Projections (SEP), which now forecasts a substantially lower median Federal Funds Rate expectation among the Board of Governors of the Federal Reserve System (“Federal Reserve Board”) in 2025 due to lower inflation expectations and a higher projected unemployment rate.

We believe the Federal Reserve Board will continue to lower rates at a measured pace through this year with the ability to move more aggressively should the employment data warrant.

The City will continue to watch market trends and refine its investment strategy, as appropriate, to improve the investment portfolio’s performance while ensuring its primary goals of preservation of principal, liquidity, and yield.

The attachments include:

1. Quarterly Investment Portfolio Report

2. Historical Activity by Quarter summarizing the City’s investments

3. The City’s Investment Report from Chandler Asset Management for the period ending September 30, 2024, which includes a listing of all holdings and transaction activity details for the reporting period
FISCAL IMPACT:

No financial impact occurs when accepting the report. The City continues to meet the priority investment principles - safety, liquidity, yield, and diversification. The portfolio is still conservatively invested, and sufficient liquidity exists to meet daily operating and capital project requirements for the next six months.

As defined for this report, operating funds exclude cash held with fiscal agents to pay bond principal and interest.

RECOMMENDED ACTION:

Accept the investment report for the quarter ending September 30, 2024, as presented. Microsoft ATTACHMENTS:

1. Quarterly Investment Portfolio Report

2. Historical Activity by Quarter Report

3. Chandler Asset Management – Investment Report: Period Ending September 30, 2024 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
I CERTIFY THAT ALL INVESTMENTS MADE ARE IN CONFORMANCE WITH THE CITY’S APPROVED INVESTMENT POLICY AND STATE INVESTMENT REGULATIONS. THE CITY HAS SUFFICIENT

LIQUIDITY TO MEET ALL OF THE OBLIGATIONS REQUIRED DURING THE NEXT SIX-MONTH PERIOD.

Paul Navazio
Finance Director
Attachment 1
% Yield
LAIF $ 60,496,038 98.9% 4.57%
Cash (Receivable) $ 692,545 1.1% 0.00%
Total Internally Managed $ 61,188,584 55.7%
Weighted Average Yield 4.52%
Days
Effective Average Duration - Internal 1
Weighted Average Maturity - Internal 1
% Yield
Money Market Fund $ 1,110,193 2.3% 4.49%
Treasury Securities $ 15,268,781 31.3% 3.80%
Instrumentality Securities $ 9,099,833 18.7% 4.42%
Corporate Notes $ 11,999,405 24.6% 4.82%
Asset-Backed $ 5,432,707 11.2% 4.84%
Cash (Receivable) $ 1,427 0.0% 0.00%
Commercial Paper $ 739,604 1.5% 5.43%
CMO $ 3,849,645 7.9% 4.44%
Supranational $ 315,102 0.6% 4.53%
Pt. San Pedro Assessment District $ 893,500 1.8% 5.25%
Total Externally Managed $ 48,710,196 44.3%
Weighted Average Yield 4.32%
Years
Effective Average Duration - External 1.84
Weighted Average Maturity - External 2.22
Total Portfolio Assets % Yield
LAIF $ 60,496,038 55.0% 4.57%
Money Market Fund $ 1,110,193 1.0% 4.49%
Treasury Securities $ 15,268,781 13.9% 3.80%
Instrumentality Securities $ 9,099,833 8.3% 4.42%
Corporate Notes $ 11,999,405 10.9% 4.82%
Asset-Backed $ 5,432,707 4.9% 4.84%
Cash (Receivable) $ 693,972 0.6% 0.00%
Commercial Paper $ 739,604 0.7% 5.43%
CMO $ 3,849,645 3.5% 4.44%
Supranational $ 315,102 0.3% 4.53%
Pt. San Pedro Assessment District $ 893,500 0.8% 5.25%
Total Portfolio Assets $ 109,898,780 100.0%
Weighted Average Yield 4.43%
Years
Effective Average Duration - Total 0.81
Weighted Average Maturity - Total 0.97
Based on Market Values
September 30, 2024
City of San Rafael
Quarterly Investment Portfolio Report
Externally Managed Assets
Internally Managed Assets
LAIF

98.9%
Cash
(Receivable)

1.1%
Money Market
Fund

2.3%
Treasury
Securities

31.3%
Instrumentality
Securities

18.7%
Corporate Notes

24.6%
Asset-Backed

11.2%
Cash
(Receivable)

0.0%
Commercial
Paper

1.5% CMO

7.9%
Supranational

0.6%
Pt. San
Pedro
Assessme
nt District

1.8%
LAIF

55.0%
Money Market
Fund

1.0%
Treasury
Securities

13.9%
Instrumentality
Securities

8.3%
Corporate Notes

10.9%
Asset-Backed

4.9%
Cash
(Receivable)

0.6%
Commercial
Paper

0.7%
CMO

3.5%
Supranational

0.3%
Pt. San Pedro
Assessment
District

0.8%
Attachment 2
Internally Managed Assets % Return % Return % Return % Return LAIF $ 60,496,038 98.9% 4.57% $ 59,849,234 100.0% 4.52% $ 53,463,594 100.0% 4.27% $ 53,749,175 100.0% 3.95% Cash (Receivable) $ 692,545 1.1% 0.00%
Total Internally Managed $ 61,188,583 55.7% $ 59,849,234 55.8% $ 53,463,594 52.9% $ 53,749,175 53.5% Weighted Average Yield 4.52% 4.52% 4.27% 3.95%
Externally Managed Assets % Return % Return % Return % Return Cash $ 1,427 0.0% 0.00% $ 38,820 0.1% 0.00% $ 608,112 0.0% 0.00% $ 144,864 0.3% 4.95% Commercial Paper $ 739,604 1.5% 0.00% $ 727,857 1.5% 5.43% $ - 0.0% 0.00% $ - 0.0% 0.00% Money Market Fund $ 1,110,193 2.3% 4.49% $ 59,761 0.1% 4.89% $ 287,457 0.6% 4.89% $ - 0.0% 0.00% Treasury Securities $ 15,268,781 31.3% 3.80% $ 16,576,763 34.5% 3.40% $ 13,932,479 29.3% 2.79% $ 14,202,153 31.1% 2.62% Instrumentality Securities $ 9,099,833 18.7% 4.42% $ 7,976,068 16.6% 4.22% $ 12,165,418 25.6% 2.91% $ 12,158,514 26.7% 2.92% Corporate Notes $ 11,999,405 24.6% 4.82% $ 11,494,546 23.9% 4.77% $ 10,855,380 22.8% 4.45% $ 10,338,726 22.7% 3.79% Asset Backed $ 5,432,707 11.2% 4.84% $ 5,524,308 11.5% 4.85% $ 5,253,902 11.0% 4.82% $ 4,980,172 10.9% 5.03% Negotiable CD $ - 0.0% 5.34% $ - 0.0% 0.00% $ - 0.0% 0.00% $ 374,910 0.8% 5.34% Collateralized Mortgage Obligations (CMO) $ 3,849,645 7.9% 4.44% $ 3,737,626 7.8% 4.44% $ 3,212,043 6.7% 4.36% $ 3,232,602 7.1% 4.57% Supranational $ 315,102 0.6% 4.53% $ 305,116 0.6% 4.53% $ 306,643 0.6% 4.53% $ 311,379 0.7% 4.53% Municipal/Assessment District $ 893,500 1.8% 5.25% $ 986,700 2.1% 5.25% $ 986,700 2.1% 5.25% $ 986,700 2.2% 5.25% Total Externally Managed $ 48,710,196 44.3% $ 47,427,565 44.2% $ 47,608,135 47.1% $ 46,730,020 46.5% Weighted Average Yield 4.32% 4.20% 3.57% 3.53%
Years Years Years Years
Effective Average Duration - External 1.84 1.83 1.71 1.71 Weighted Average Maturity - External 2.22 2.20 2.13 2.13 Total Portfolio Assets % Return % Return % Return % Return LAIF $ 60,496,038 55.0% 4.57% $ 59,849,234 55.8% 4.52% $ 53,463,594 55.2% 4.27% $ 53,749,175 53.5% 3.95% Cash $ 693,972 0.6% 0.00% $ 38,820 0.0% 0.00% $ 608,112 0.6% 0.00% $ 144,864 0.1% 4.95% Commercial Paper $ 739,604 0.7% 0.00% $ 727,857 0.7% 5.43% $ - 0.0% 0.00% $ - 0.0% 0.00% Money Market Fund $ 1,110,193 1.0% 4.49% $ 59,761 0.1% 4.89% $ 287,457 0.3% 4.89% $ - 0.0% 0.00% Treasury Securities $ 15,268,781 13.9% 3.80% $ 16,576,763 15.5% 3.40% $ 13,932,479 14.4% 2.79% $ 14,202,153 14.1% 2.62% Instrumentality Securities $ 9,099,833 8.3% 4.42% $ 7,976,068 7.4% 4.22% $ 12,165,418 12.6% 2.91% $ 12,158,514 12.1% 2.92% Corporate Notes $ 11,999,405 10.9% 4.82% $ 11,494,546 10.7% 4.77% $ 10,855,380 11.2% 4.45% $ 10,338,726 10.3% 3.79% Asset Backed $ 5,432,707 4.9% 4.84% $ 5,524,308 5.1% 4.85% $ 5,253,902 5.4% 4.82% $ 4,980,172 5.0% 5.03% Negotiable CD $ - 0.0% 0.00% $ - 0.0% 0.00% $ - 0.0% 0.00% $ 374,910 0.4% 5.34% Collateralized Mortgage Obligations (CMO) $ 3,849,645 3.5% 4.44% $ 3,737,626 3.5% 4.44% $ 3,212,043 3.3% 4.36% $ 3,232,602 3.2% 4.57% Supranational $ 315,102 0.3% 4.53% $ 305,116 0.3% 4.53% $ 306,643 0.3% 4.53% $ 311,379 0.3% 4.53% Municipal/Assessment District $ 893,500 0.8% 5.25% $ 986,700 0.9% 5.25% $ 986,700 1.0% 5.25% $ 986,700 1.0% 5.25% Total Portfolio Assets $ 109,898,779 100.0% $ 107,276,798 100.0% $ 101,071,729 104% $ 100,479,195 100.0% Weighted Average Yield 4.43% 4.38% 3.94% 3.72%
Years Years Years Years
Effective Average Duration - Total 0.81 0.79 0.81 0.79
Weighted Average Maturity - Total 0.97 0.96 0.99 0.98
City of San Rafael
Historical Activity-By Quarter
September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023

INVESTMENT REPORT
City of San Rafael | As of September 30, 2024
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.

Attachment 3 1-,,a CHANDLER " '-- ASSET MANAGEMENT

TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

CONSOLIDATED INFORMATION

PORTFOLIO HOLDINGS

TRANSACTIONS
1 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

ECONOMIC UPDATE
2 1-,,a CHANDLER " '-- ASSET MANAGEMENT
▪
▪
▪
Recent economic data suggests positive but slower growth this year fueled by consumer spending. While the consumer has been resilient, declining savings rates, growing credit card debt, higher delinquencies, and a moderating labor market pose potential headwinds to future economic growth. Inflationary trends are subsiding, but core levels remain above the Fed’s target. The labor market is showing signs of cooling, reflecting an improved balance between supply and demand for workers. Given the cumulative effects of restrictive monetary policy and tighter financial conditions, we believe the economy will gradually soften and the Fed will continue to lower rates at a measured pace through this year with the ability to move more aggressively should the employment data warrant.

The Federal Open Market Committee (FOMC) delivered the first rate cut of the easing cycle with a 50 basis point cut at the September meeting. Although a reduction in the Fed Funds Rate was widely anticipated, the magnitude was somewhat of a surprise, as market participants were split between whether the FOMC would cut by 25 basis points or 50 basis points. Chair Jerome Powell reiterated previous statements acknowledging that monetary policy has shifted into a more balanced approach addressing price stability and full employment in tandem. The Fed released the quarterly Summary of Economic Projections (SEP) which now forecasts a substantially lower median Fed Funds Rate expectation among Fed Governors in 2025 due to lower inflation expectations and a higher projected unemployment rate. We believe the Fed will continue to lower rates at a measured pace through this year with the ability to move more aggressively should the employment data warrant.

The US Treasury yield curve shifted lower in September following the 50 basis points rate cut by the FOMC mid-month. The 2-year Treasury yield fell 28 basis points to 3.64%, the 5-year Treasury dropped 15 basis points to 3.56%, and the 10-year Treasury yield declined 12 basis points to 3.78%. The 2-year and 10-year Treasury yield points on the curve began to normalize to +14 basis points at September month-end versus -2 basis points at August month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -47 basis points. The inversion between 3-month and 10-year Treasuries ended the month of September at -85 basis points.

ECONOMIC UPDATE
3 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
-400
-200
0 200
400
600
800
1,000 MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
The U.S. economy added 254,000 jobs in September, well above expectations of 150,000. The three-month moving average and six-month moving average payrolls continued to trend weaker to 186,000 and 167,000 respectively. The unemployment rate declined to 4.1% in September, and the labor participation rate remained at 62.7%, remaining below the pre-pandemic level of 63.3%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons declined to 7.7% from 7.9%. Average hourly earnings rose 4.0% year-over-year in September. U.S. labor market data from September surprised to the upside, with strong job growth and a sharper-than-expected drop in unemployment, suggesting the economy may be more resilient than anticipated. The Federal Reserve’s view is that there has been “substantial” progress towards better balance in the labor market between demand and supply for workers.

Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT
4 I I
I I
I \
I \
I \
I \
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average In Thousands (000's)
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) increased to 8.04 million job openings in August from an upwardly revised 7.71 million in July. Job openings have increased to a ratio of 1.13 jobs for each unemployed individual. The quits rate, an indicator of job availability, declined to 1.9% from downwardly revised 2.0% in July. That is the lowest level since 2020. While the current level of job openings remains elevated from a historical perspective, the trend is decelerating.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
5 -
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
Fed Target
YOY (%) Change
In September, the Consumer Price Index (CPI) rose 0.2% month-over-month and 2.4% year-over-year, down from 2.5% in August, but slightly higher than expected. The Core CPI, which excludes volatile food and energy components, rose by 0.3% month-over-month and

3.3% year-over-year, also exceeding consensus forecasts. The Personal Consumption Expenditures (PCE) Index rose 0.1% from the previous month and 2.2% year-over-year in August. The Core PCE deflator (the Fed’s preferred gauge) increased 0.1% month-over-month and 2.7% over the past year, still above the Fed’s 2% inflation target. Much of the lingering inflation has been driven by shelter costs and demand for services, but recent data provide confirmation that inflation is moderating.

Source: US Department of Labor Source: US Department of Commerce

INFLATION
6 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
-30.0%
-20.0%
-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
Retail Sales YOY % Change
YOY (%) Change
Retail Sales grew more than expected month-over-month in September at 0.4% after growth of 0.1% in August. On a year-over-year basis, Retail Sales grew 1.7% in September versus 2.2% in August. Control-group sales, which are used to calculate gross domestic product, rose

0.7% month-over-month in September after last month’s increase of 0.3%. Apparel, grocery stores, and miscellaneous store retailers led the advance, while gas station sales fell reflecting lower gas prices. The Conference Board’s Consumer Confidence Index for September came in below expectations, contracting to 98.7 after an upward revision to 105.6 in August. The decline reflects recent softening in labor market conditions, and less optimism about the job market and income growth. While the consumer has been resilient, declining savings rates, growing credit card debt, higher delinquencies, and a moderating labor market pose potential risks to future spending. 0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

CONSUMER
7 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) remained in negative territory at -0.2% in August, improving from -0.6% in July. The index dropped 5.0% year-over-year. The improvement can be attributed to a decrease in the yield curve inversion, an increase in building permits, and stock market performance. The Chicago Fed National Activity Index (CFNAI) increased to 0.12 in August from a downwardly revised -0.42 in July, which was above consensus expectations. The three-month moving average fell to -0.17 in August from -0.13 in July, indicating below-trend growth expectations for the economy.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY
8 ■
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
■
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing starts surprised to the downside in September, declining -0.5% month-over-month to 1.354 million units after an increase of 7.8% in August. The decline can be attributed to a drop in multi-family housing projects. Total starts were down 0.7% year-over-year. The Freddie Mac average rate for a 30-year fixed mortgage dropped to 6.18% in September from 6.44% in August. According to the CaseShiller 20-City Home Price Index, housing prices rose 5.9% year-over-year in July, decelerating from 6.5% reported in the previous month.

Although the trend is gradually improving, tight inventories and higher mortgage rates continue to impact affordability.

Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change

HOUSING
9 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services

EXPANDING

CONTRACTING
The Institute for Supply Management (ISM) Manufacturing index contracted at a slower rate of 47.2 in September compared to 47.5 in August. Demand remains subdued and companies are continuing to reduce head counts through layoffs, attrition and hiring freezes. The ISM Services Index increased to 54.9 in September, increasing from 51.7 in August, due to stronger production and new orders. A reading over 50 indicates expansion, while a reading under 50 indicates contraction.

Source: Institute for Supply Management

SURVEY BASED MEASURES
10 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
_ .. I \
-=======================-/- \------------------------------ # I \ /\ I \ \ I \ \,... '
' ~,----------------------------
\
Components of GDP 9/23 12/23 3/24 6/24

1.7% 2.3% 1.3% 1.9%

1.8% 0.2% 0.6% 1.5%
-0.1% 0.1% -0.6% -0.9%

0.3% 0.0% 0.0% 0.3%

0.6% 0.6% 0.3% 0.3%

4.4% 3.2% 1.6% 3.0%
State and Local (Consumption and Gross
Investment)
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
-40.0%
-30.0%
-20.0%
-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce According to the third estimate, second quarter GDP increased at an annualized rate of 3.0%, unchanged from the prior estimate. Growth continues to be powered by personal consumption expenditures. Gross fixed investment, government consumption expenditures, and inventories also had positive contributions, with a negative offset by net exports. The consensus projection calls for 2.0% growth in the third quarter and 2.6% growth for the full year 2024.

GROSS DOMESTIC PRODUCT (GDP)
11 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Open Market Committee (FOMC) delivered the first rate cut of the easing cycle at the September meeting. Although a reduction in the Fed Funds Rate was widely anticipated, the magnitude was somewhat of a surprise, as market participants were split between whether the FOMC would cut by 25 basis points or 50 basis points. Chair Jerome Powell reiterated previous statements acknowledging that monetary policy has shifted into a more balanced approach addressing price stability and full employment in tandem.

The Fed released the quarterly Summary of Economic Projections (SEP) which now forecasts a substantially lower median Fed Funds Rate expectation among Fed Governors in 2025 to 3.1 – 3.6%. The Fed continues to reduce its holdings of U.S. Treasury securities and agency mortgage-backed securities as per its predefined schedule of $25 billion and $35 billion per month. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by approximately $1.8T to approximately $7.1T.

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Effective Federal Funds Rate
Recession
Yield (%)

FEDERAL RESERVE
12 ,, • • CHANDLER ~ , • • ASSET MANAGEMENT
■ ■
Source: Bloomberg Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Yield Curve
Sep-24
Jun-24
Sep-23
Yield (%)
At the end of September, the 2-year Treasury yield was 140 basis points lower, and the 10-Year Treasury yield was 79 basis points lower, year-over-year. The 2-year and 10-year Treasury yield points on the curve began to normalize to +14 basis points at September month-end versus -2 basis points at August month-end. The yield curve inversion which began in July 2022 was historically long. The average historical spread (since 2003) is about +110 basis points. The inversion between 3-month and 10-year Treasuries tightened to -85 basis points in September from -121 basis points in August.

BOND YIELDS
13 ..... --, ...
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
__ _,~•.,, _ __________________ _ ' ... .._ --..: · ........................... :.: :.: :: :.: :.: :: :.: :.: :: :.:
---------------

ACCOUNT PROFILE
14 1-,,a CHANDLER " '-- ASSET MANAGEMENT

OBJECTIVES
Investment Objectives
Safety of principal is the foremost objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs.

Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.

Strategy
In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds. 15 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

PORTFOLIO CHARACTERISTICS
City of San Rafael | Account #11045 | As of September 30, 2024 Benchmark* 9/30/2024
Portfolio
6/30/2024
Portfolio
Average Maturity (yrs) 1.84 2.22 2.20
Average Modified Duration 1.76 1.84 1.83
Average Purchase Yield 4.39% 4.17%
Average Market Yield 3.71% 4.01% 5.02%
Average Quality** AA+ AA AA
Total Market Value 48,130,638 46,777,101
*Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 16 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

SECTOR DISTRIBUTION
City of San Rafael | Account #11045 | As of September 30, 2024 Sector as a Percentage of Market Value
Sector 09/30/2024 06/30/2024
US Treasury 31.93% 35.69%
Corporate 25.09% 24.75%
Agency 19.03% 17.17%
ABS 11.36% 11.90%
Agency CMBS 8.05% 8.05%
Money Mkt Fd 2.32% 0.13%
Comm Paper 1.55% 1.57%
Supras 0.66% 0.66%
Cash 0.00% 0.08%
17 50%
25%
0% US Treasury Corporat e Agency ABS Agency CMBS Money Mkt Fd ■ 09/30/2024 ■ 06/30/2024
Comm Paper
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
Supras Cash

ISSUERS
City of San Rafael | Account #11045 | As of September 30, 2024 Issuer Investment Type % Portfolio
United States US Treasury 31.93%
Federal Home Loan Banks Agency 12.00%
FHLMC Agency CMBS 8.05%
Farm Credit System Agency 7.03%
U.S. Bancorp Money Mkt Fd 2.32%
American Express Credit Master Trust ABS 2.29%
John Deere Owner Trust ABS 1.85%
Bank of America Credit Card Trust ABS 1.57%
Mitsubishi UFJ Financial Group, Inc. Comm Paper 1.55%
Chevron Corporation Corporate 1.44%
Toyota Auto Receivables Owner Trust ABS 1.37%
Honda Auto Receivables Owner Trust ABS 1.32%
Bank of Montreal Corporate 1.29%
The Home Depot, Inc. Corporate 1.29%
PACCAR Inc Corporate 1.26%
Bank of America Corporation Corporate 1.24%
The Toronto-Dominion Bank Corporate 1.24%
Toyota Motor Corporation Corporate 1.23%
Caterpillar Inc. Corporate 1.18%
Cisco Systems, Inc. Corporate 1.18%
National Rural Utilities Cooperative Corporate 1.17%
Royal Bank of Canada Corporate 1.16%
NextEra Energy, Inc. Corporate 1.16%
Prologis, Inc. Corporate 1.13%
State Street Corporation Corporate 1.12%
PepsiCo, Inc. Corporate 1.08%
Deere & Company Corporate 1.06%
Chase Issuance Trust ABS 1.06%
Chubb Limited Corporate 1.03%
Realty Income Corporation Corporate 1.03%
18 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

ISSUERS
City of San Rafael | Account #11045 | As of September 30, 2024 Issuer Investment Type % Portfolio
Morgan Stanley Corporate 1.02%
BNY Mellon Corp Corporate 0.74%
Public Service Enterprise Group Inco Corporate 0.69%
International Finance Corporation Supras 0.66%
Eli Lilly and Company Corporate 0.64%
BMW Vehicle Owner Trust ABS 0.64%
BMW Vehicle Lease Trust ABS 0.53%
MERCEDES-BENZ AUTO RECEIVABLES TRUST ABS 0.47%
JPMorgan Chase & Co. Corporate 0.43%
Merck & Co., Inc. Corporate 0.27%
Mercedes-Benz Auto Lease Trust ABS 0.26%
Cash Cash 0.00%
TOTAL 100.00%
19 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

QUALITY DISTRIBUTION
Rating 09/30/2024 06/30/2024
AAA 9.9% 8.2%
AA 60.6% 62.5%
A 24.1% 22.2%
NR 5.4% 7.1%
Rating 09/30/2024 06/30/2024
AAA 71.3% 71.6%
AA 1.4% 1.5%
A 23.7% 23.4%
NR 3.5% 3.6%
Rating 09/30/2024 06/30/2024
AAA 17.8% 15.8%
AA 59.7% 63.0%
A 9.2% 9.2%
NR 13.3% 12.0%
City of San Rafael | Account #11045 | As of September 30, 2024 S&P Rating Moody’s Rating Fitch Rating
20 75% 100%
75%
50%
25%
0% AAA AA A NR AA
■ 09/30/2024 ■ 06/30/2024 ■ 09/30/2024
75%
50%
25%
A NR 0%
■ 06/30/2024
AAA
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

AA A NR
■ 09/30/2024 ■ 06/30/2024
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 6.4% 3.8% 11.9% 35.3% 29.8% 8.4% 4.4% 0.0% 0.0% ICE BofA 1-3 Year US Treasury & Agency
Index 0.1% 0.1% 3.6% 58.6% 37.6% 0.0% 0.0% 0.0% 0.0%

DURATION DISTRIBUTION
City of San Rafael | Account #11045 | As of September 30, 2024 Portfolio Compared to the Benchmark
21 80%
60%
40%
20%
0% 0-. 25 .25-.5 .5-1 1-2
■ City of San Rafael
2-3 3-4 4-5
■ ICE BofA 1-3 Year US Treasury & Agency Index
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
5-7 7+
3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception

TOTAL RATE OF RETURN
City of San Rafael 2.92% 7.32% 5.38%
Benchmark 2.86% 6.74% 4.64%
*Periods over 1 year are annualized.

Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.

INVESTMENT PERFORMANCE
City of San Rafael | Account #11045 | As of September 30, 2024 Total Rate of Return : Inception |02/01/2023

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%
3 months 12 months 2 years 3 years 5 years 10 years Since Inception City of San Rafael Benchmark
22 ■ ■
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

HISTORICAL AVERAGE PURCHASE YIELD
City of San Rafael | Account #11045 | As of September 30, 2024 Purchase Yield as of 09/30/24 = 4.39%
23 5%
4%
3%
2%
1%
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

PORTFOLIO CHARACTERISTICS
San Rafael Reporting | Account #11046 | As of September 30, 2024 9/30/2024
Portfolio
6/30/2024
Portfolio
Average Maturity (yrs) 0.00 0.00
Average Modified Duration 0.00 0.00
Average Purchase Yield 4.52% 4.51%
Average Market Yield 4.52% 4.51%
Average Quality** AAA AAA
Total Market Value 61,188,584 60,471,882
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 24 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

SECTOR DISTRIBUTION
San Rafael Reporting | Account #11046 | As of September 30, 2024 Sector as a Percentage of Market Value
Sector 09/30/2024 06/30/2024
LAIF 98.87% 98.97%
Cash 1.13% 1.03%
25 ■ 09/30/2024 ■ 06/30/2024
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

CONSOLIDATED INFORMATION
26 1-,,a CHANDLER " '-- ASSET MANAGEMENT

PORTFOLIO CHARACTERISTICS
San Rafael Cons | Account #11047 | As of September 30, 2024 9/30/2024
Portfolio
6/30/2024
Portfolio
Average Maturity (yrs) 0.97 0.96
Average Modified Duration 0.81 0.79
Average Purchase Yield 4.46% 4.37%
Average Market Yield 4.30% 4.73%
Average Quality** AA AA
Total Market Value 109,319,222 107,248,983
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 27 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

SECTOR DISTRIBUTION
San Rafael Cons | Account #11047 | As of September 30, 2024 Sector as a Percentage of Market Value
Sector 09/30/2024 06/30/2024
LAIF 55.50% 55.98%
US Treasury 14.01% 15.50%
Corporate 11.01% 10.75%
Agency 8.35% 7.46%
ABS 4.98% 5.17%
Agency CMBS 3.53% 3.50%
Money Mkt Fd 1.02% 0.06%
Comm Paper 0.68% 0.68%
Cash 0.64% 0.62%
Supras 0.29% 0.29%
28 75%
50%
25%
0% LAIF US Treasury Corporate Agency ABS
■ 09/30/2024
AgencyCMBS Money Mkt Fd Comm Paper
■ 06/30/2024
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
Cash Supras

PORTFOLIO HOLDINGS
29 1-,,a CHANDLER " '-- ASSET MANAGEMENT

HOLDINGS REPORT
City of San Rafael | Account #11045 | As of September 30, 2024 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
05593AAC3 BMWLT 2023-1 A3 5.16
11/25/2025 254,894.31 --5.32%
255,331.23
254,976.07
100.08

4.88%
255,104.68
219.21

0.53%
128.61
Aaa/AAA
NA

1.15 0.25
43815JAC7 HAROT 2023-1 A3 5.04 120,000.00 02/16/2023 119,977.70 100.51 120,606.74 0.25% Aaa/NA 2.56 04/21/2027 5.09% 119,986.30 4.49% 168.00 620.44 AAA 0.84 02582JJT8 AMXCA 2022-2 A 05/17/2027 600,000.00 04/17/2023 585,632.81 99.28 595,680.60 1.25% NA/AAA 0.62

4.65% 594,191.55 4.61% 904.00 1,489.05 AAA 0.60
58768PAC8 MBART 2022-1 A3 5.21 223,333.20 02/15/2023 224,484.76 100.50 224,452.81 0.47% Aaa/AAA 2.88 08/16/2027 5.03% 223,962.77 4.50% 517.14 490.04 NA 0.65 89239HAD0 TAOT 2022-D A3 5.3 350,000.00 02/10/2023 354,128.91 100.83 352,899.75 0.74% Aaa/NA 2.96 09/15/2027 4.86% 352,294.18 4.41% 824.44 605.57 AAA 0.87 47800CAC0 JDOT 2023 A3 5.01 880,000.00 -- 882,243.24 100.69 886,035.92 1.85% Aaa/NA 3.13 11/15/2027 3.66% 881,323.07 4.46% 1,959.47 4,712.85 AAA 1.14 58770JAD6 MBALT 2024-A A3 5.32 120,000.00 05/17/2024 119,985.96 102.19 122,631.17 0.26% Aaa/NA 3.30 01/18/2028 5.73% 119,987.34 4.33% 283.73 2,643.83 AAA 2.06 891941AD8 TAOT 2023-B A3 4.71 300,000.00 10/03/2023 294,058.59 100.52 301,550.76 0.63% Aaa/NA 3.38 02/15/2028 5.68% 295,422.89 4.34% 628.00 6,127.87 AAA 1.23 05592XAD2 BMWOT 2023-A A3 5.47 90,000.00 07/11/2023 89,984.05 101.24 91,115.56 0.19% NA/AAA 3.41 02/25/2028 5.47% 89,988.23 4.43% 82.05 1,127.33 AAA 1.12 05522RDF2 BACCT 2022-2 A 5.0 440,000.00 04/18/2023 444,812.50 100.76 443,349.10 0.93% Aaa/AAA 3.55 04/17/2028 4.59% 442,342.89 4.34% 977.78 1,006.22 NA 1.07 438123AC5 HAROT 2023-4 A3 5.67 500,000.00 12/07/2023 507,480.47 102.32 511,617.65 1.07% Aaa/NA 3.73 06/21/2028 5.10% 505,893.80 4.18% 787.50 5,723.85 AAA 1.47 02582JKD1 AMXCA 2023-3 A 5.23 490,000.00 09/12/2023 489,978.10 102.30 501,269.90 1.05% NA/AAA 3.96 09/15/2028 5.29% 489,982.64 4.04% 1,138.98 11,287.26 AAA 1.82 161571HT4 CHAIT 2023-1 A 5.16 495,000.00 09/07/2023 494,862.79 102.17 505,743.68 1.06% NR/AAA 3.96 09/15/2028 5.17% 494,891.48 4.04% 1,135.20 10,852.20 AAA 1.82 05522RDH8 BACCT 2023-2 A 4.98 300,000.00 02/20/2024 301,125.00 102.02 306,045.06 0.64% Aaa/NA 2.13 11/16/2026 4.88% 300,874.75 4.02% 664.00 5,170.31 AAA 1.98 096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 210,000.00 06/04/20245.24%
209,968.10
209,970.18
102.19

4.05%
214,603.77
181.30

0.45%
4,633.59
Aaa/AAA
NA

4.41 1.84
30 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
Total ABS 5,373,227.51 4.84%
5,374,054.21
5,376,088.12
101.12

4.33%
5,432,707.15
10,470.80

11.36%
56,619.03
Aaa/AAA
AAA

2.99 1.25
AGENCY
3130AV7L0 FEDERAL HOME LOAN BANKS

5.0 02/28/2025 1,100,000.00 03/02/20235.07%
1,098,548.00
1,099,700.82
100.13

4.67%
1,101,381.14
5,041.67

2.30%
1,680.31
Aaa/AA+
AA+

0.41 0.40
3130AWER7 FEDERAL HOME LOAN BANKS

4.625 06/06/2025 775,000.00 06/09/20234.67%
774,356.75
774,779.96
100.37

4.06%
777,866.58
11,450.09

1.63%
3,086.61
Aaa/AA+
AA+

0.68 0.66
3130ATHT7 FEDERAL HOME LOAN BANKS

4.375 09/12/2025 1,300,000.00 01/12/20234.28%
1,303,159.00
1,301,122.19
100.20

4.15%
1,302,609.49
3,001.74

2.72%
1,487.30
Aaa/AA+
AA+

0.95 0.92
3130ATUC9 FEDERAL HOME LOAN BANKS

4.5 12/12/2025 1,000,000.00 02/13/20234.32%
1,004,720.00
1,001,998.68
100.73

3.86%
1,007,324.55
13,625.00

2.11%
5,325.87
Aaa/AA+
AA+

1.20 1.14
3130AWGR5 FEDERAL HOME LOAN BANKS

4.375 06/12/2026 525,000.00 06/28/20234.43%
524,165.25
524,521.12
101.05

3.73%
530,486.34
6,954.43

1.11%
5,965.22
Aaa/AA+
AA+

1.70 1.60
3133EPSW6

FEDERAL FARM CREDIT
BANKS FUNDING CORP 4.5
08/14/2026
560,000.00
08/09/2023

4.58%
558,712.00
559,198.53
101.54

3.64%
568,597.29
3,290.00

1.19%
9,398.76
Aaa/AA+
AA+

1.87 1.77
3130AXU63 FEDERAL HOME LOAN BANKS

4.625 11/17/2026 500,000.00 12/18/20234.23%
505,325.00
503,888.65
102.01

3.63%
510,069.52
8,607.64

1.07%
6,180.86
Aaa/AA+
AA+

2.13 1.98
3133EP6K6

FEDERAL FARM CREDIT
BANKS FUNDING CORP 4.5
03/26/2027
1,000,000.00
04/24/2024

4.84%
990,700.00
992,088.45
101.93

3.68%
1,019,281.54
625.00

2.13%
27,193.09
Aaa/AA+
AA+

2.48 2.34
3133ERMB4

FEDERAL FARM CREDIT
BANKS FUNDING CORP 4.25
07/23/2027
750,000.00
07/18/2024

4.26%
749,767.50
749,782.36
101.64

3.63%
762,308.95
6,020.83

1.59%
12,526.58
Aaa/AA+
AA+

2.81 2.61
3133ERNP2

FEDERAL FARM CREDIT
BANKS FUNDING CORP 4.0
08/06/2027
1,000,000.00
08/19/2024

3.92%
1,002,290.00
1,002,201.03
101.00

3.62%
1,010,046.17
6,111.11

2.11%
7,845.14
Aaa/AA+
AA+

2.85 2.66
3130ATUS4 FEDERAL HOME LOAN BANKS

4.25 12/10/2027 500,000.00 05/15/20233.66%
512,310.00
508,592.66
101.97

3.59%
509,861.25
6,552.08

1.07%
1,268.59
Aaa/AA+
AA+

3.19 2.93
31 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
9,024,053.50 101.00 9,099,832.81 19.03% Aaa/AA+ 1.72
Total Agency 9,010,000.00 4.42% 9,017,874.46 3.90% 71,279.58 81,958.35 AA+ 1.62

AGENCY CMBS
3137BVZ82 FHMS K-063 A2 3.43
01/25/2027 700,000.00 06/07/20234.53%
674,542.97
683,890.93

98.82 3.92%
691,720.75
2,000.83

1.45%
7,829.82
Aaa/AA+
AAA

2.32 2.06
3137F1G44 FHMS K-065 A2 3.243 450,000.00 06/08/2023 431,736.33 98.18 441,829.31 0.92% Aaa/AA+ 2.57 04/25/2027 4.39% 437,999.66 3.95% 1,216.13 3,829.64 AAA 2.34 3137F2LJ3 FHMS K-066 A2 3.117 350,000.00 04/18/2024 330,654.30 97.84 342,428.03 0.72% Aaa/AA+ 2.73 06/25/2027 5.06% 333,400.91 3.94% 909.13 9,027.12 AAA 2.45 3137FBBX3 FHMS K-068 A2 3.244 240,000.00 06/08/2023 229,940.63 98.16 235,579.44 0.49% Aaa/AA+ 2.90 08/25/2027 4.34% 233,111.66 3.88% 648.80 2,467.78 AA+ 2.66 3137FBU79 FHMS K-069 A2 3.187 498,244.74 06/09/2023 474,928.44 97.89 487,725.84 1.02% Aaa/AAA 2.99 09/25/2027 4.41% 482,120.15 3.92% 1,323.26 5,605.69 AA+ 2.70 3137FETN0 FHMS K-073 A2 3.35 670,000.00 05/24/2023 643,932.81 98.31 658,678.21 1.38% Aaa/AA+ 3.32 01/25/2028 4.27% 651,549.34 3.87% 1,870.42 7,128.86 AAA 2.99 3137FG6X8 FHMS K-077 A2 3.85 780,000.00 05/24/2023 765,679.69 99.59 776,764.01 1.62% Aaa/AA+ 3.65 05/25/2028 4.24% 769,582.33 3.93% 2,502.50 7,181.68 AAA 3.28 3137FMTY8 FHMS K-094 A2 2.903 225,000.00 06/21/2024 207,764.65 95.52 214,919.89 0.45% Aaa/AA+ 4.73 06/25/2029 4.65% 208,692.93 3.95% 544.31 6,226.96 AAA 4.27 Total Agency 3,759,179.82 98.38 3,849,645.47 8.05% Aaa/AA+ 3.08 CMBS 3,913,244.74 4.44% 3,800,347.92 3.92% 11,015.37 49,297.55 AAA 2.77 CASH
CCYUSD Receivable 1,426.95 --

0.00%
1,426.95
1,426.95

1.00 0.00%
1,426.95

0.00 0.00%

0.00 Aaa/AAA
AAA

0.00 0.00
1,426.95 1.00 1,426.95 0.00% Aaa/AAA 0.00
Total Cash 1,426.95 0.00% 1,426.95 0.00% 0.00 0.00 AAA 0.00 32 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration

COMMERCIAL
PAPER
62479LNG6 MUFG Bank, Ltd. - New York
Branch 01/16/2025 750,000.00 05/16/20245.43%
723,152.08
738,274.58

98.61 4.73%
739,603.50

0.00 1.55%
1,328.92
P-1/A-1
NA

0.30 0.29
Total Commercial
Paper 750,000.00 5.43%
723,152.08
738,274.58

98.61 4.73%
739,603.50

0.00 1.55%
1,328.92
P-1/A-1
NA

0.30 0.29

CORPORATE
166764BW9 CHEVRON CORP 1.554
05/11/2025 700,000.00 01/12/20233.65%
667,380.00
691,480.42

98.25 4.48%
687,782.05
4,230.33

1.44%
(3,698.38)
Aa2/AANA0.61

0.59 78016FZT4 ROYAL BANK OF CANADA

4.875 01/12/2026 550,000.00 07/19/20235.34%
544,197.50
547,002.68
100.96

4.09%
555,285.28
5,883.85

1.16%
8,282.60
A1/A
AA1.281.22
69371RS49 PACCAR FINANCIAL CORP 4.45
03/30/2026 600,000.00 03/28/20234.47%
599,634.00
599,818.00
100.70

3.96%
604,219.34

74.17 1.26%
4,401.34
A1/A+
NA

1.50 1.44
00440EAV9 CHUBB INA HOLDINGS LLC

3.35 05/03/2026 500,000.00 03/09/20235.09%
475,060.00
487,410.41

98.82 4.12%
494,115.30
6,886.11

1.03%
6,704.89
A3/A
A

1.59 1.51
341081GR2 FLORIDA POWER & LIGHT CO

4.45 05/15/2026 550,000.00 05/18/20234.65%
547,030.00
548,388.18
100.74

3.97%
554,049.80
9,246.11

1.16%
5,661.62
A1/A
A+

1.62 1.45
24422EWX3 JOHN DEERE CAPITAL CORP

4.75 06/08/2026 500,000.00 06/05/20234.72%
500,470.00
500,263.73
101.40

3.88%
507,022.55
7,454.86

1.06%
6,758.82
A1/A
A+

1.69 1.59
74340XBK6 PROLOGIS LP 3.25 10/01/2026 550,000.00 01/16/2024

4.53%
532,240.50
536,864.81

98.46 4.06%
541,524.69
8,937.50

1.13%
4,659.88
A3/A
WR

2.00 1.91
89236TDR3 TOYOTA MOTOR CREDIT CORP

3.2 01/11/2027 600,000.00 01/22/20244.57%
577,398.00
582,636.32

98.37 3.95%
590,241.91
4,266.67

1.23%
7,605.58
A1/A+
A+

2.28 2.16
63743HFM9

NATIONAL RURAL UTILITIES

COOPERATIVE FINANCE CORP

4.8 02/05/2027
550,000.00
01/25/2024

4.75%
550,792.00
550,614.26
101.84

3.97%
560,108.72
4,106.67

1.17%
9,494.45
A2/AA2.35

2.11 17275RBQ4 CISCO SYSTEMS INC 4.8
02/26/2027 550,000.00 --4.82%
549,759.00
549,806.45
102.19

3.84%
562,036.52
2,566.67

1.18%
12,230.07
A1/AANA2.41

2.17 857477CL5 STATE STREET CORP 4.993
03/18/2027 525,000.00 03/13/20244.99%
525,000.00
525,000.00
102.36

3.98%
537,412.29
946.59

1.12%
12,412.29
A1/A
AA2.462.23
33 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
06406RBQ9 BANK OF NEW YORK MELLON
CORP 4.947 04/26/2027 350,000.00 04/19/20234.90%
350,497.00
350,259.38
100.97

4.90%
353,388.07
7,454.85

0.74%
3,128.69
A1/A
AA2.571.47
14913UAL4

CATERPILLAR FINANCIAL
SERVICES CORP 5.0
05/14/2027
550,000.00
05/13/2024

5.01%
549,818.50
549,841.56
102.77

3.88%
565,244.89
10,465.28

1.18%
15,403.33
A2/A
A+

2.62 2.40
74456QBS4 PUBLIC SERVICE ELECTRIC AND
GAS CO 3.0 05/15/2027 337,000.00 04/18/20234.48%
318,673.94
325,210.15

97.47 4.03%
328,468.90
3,819.33

0.69%
3,258.75
A1/A
WR

2.62 2.46
437076DB5 HOME DEPOT INC 4.875
06/25/2027 600,000.00 06/20/20244.92%
599,208.00
599,278.88
102.60

3.86%
615,587.28
7,800.00

1.29%
16,308.40
A2/A
A

2.73 2.44
532457CP1 ELI LILLY AND CO 4.15
08/14/2027 305,000.00 08/12/20244.18%
304,752.95
304,763.78
100.93

3.80%
307,848.89
1,652.51

0.64%
3,085.11
A1/A+
NA

2.87 2.60
89115A2M3 TORONTO-DOMINION BANK

5.156 01/10/2028 575,000.00 07/12/20235.29%
571,929.50
572,762.15
103.00

4.17%
592,239.59
6,670.58

1.24%
19,477.44
A1/A
AA3.282.96
756109AU8 REALTY INCOME CORP 3.65
01/15/2028 500,000.00 04/10/20234.87%
474,240.00
482,209.45

98.18 4.25%
490,911.62
3,852.78

1.03%
8,702.16
A3/AWR3.29

3.04 06051GGF0 BANK OF AMERICA CORP

3.824 01/20/2028 600,000.00 07/12/20235.53%
567,738.00
578,901.76

98.92 4.94%
593,508.20
4,525.07

1.24%
14,606.45
A1/AAA3.31

2.16 46647PEA0 JPMORGAN CHASE & CO 5.04
01/23/2028 200,000.00 01/17/20244.99%
200,292.00
200,224.86
101.67

4.78%
203,345.24
1,904.00

0.43%
3,120.38
A1/AAA3.31

2.15 06368LGV2 BANK OF MONTREAL 5.203
02/01/2028 600,000.00 09/05/20235.48%
593,520.00
595,091.64
103.12

4.19%
618,713.08
5,203.00

1.29%
23,621.43
A2/AAA3.34

2.95 58933YBH7 MERCK & CO INC 4.05
05/17/2028 130,000.00 05/08/20234.07%
129,894.70
129,923.69
100.84

3.80%
131,094.29
1,959.75

0.27%
1,170.60
A1/A+
NA

3.63 3.23
61744YAK4 MORGAN STANLEY 3.591
07/22/2028 500,000.00 08/10/20235.22%
465,070.00
473,086.09

97.99 4.17%
489,927.01
3,441.38

1.02%
16,840.92
A1/AA+3.81

2.62 713448FX1 PEPSICO INC 4.5 07/17/2029 500,000.00 07/16/2024

4.52%
499,490.00
499,511.23
103.07

3.79%
515,329.06
4,625.00

1.08%
15,817.83
A1/A+
NA

4.79 4.19
Total Corporate 11,922,000.00 4.82%
11,694,085.59
11,780,349.90
100.68

4.11%
11,999,404.55
117,973.04

25.09%
219,054.65
A1/A
A+

2.49 2.16
34 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration

MONEY MARKET
FUND
31846V807 FIRST AMER:TRS OBG Y 1,110,192.88 --

4.49%
1,110,192.88
1,110,192.88

1.00 4.49%
1,110,192.88

0.00 2.32%

0.00 Aaa/AAAm
AAA

0.00 0.00
Aaa/
Total Money 1,110,192.88 1.00 1,110,192.88 2.32% AAAm 0.00 Market Fund 1,110,192.88 4.49% 1,110,192.88 4.49% 0.00 0.00 AAA 0.00

SUPRANATIONAL
45950KDD9 INTERNATIONAL FINANCE
CORP 4.5 07/13/2028 305,000.00 07/06/20234.53%
304,661.45
304,744.10
103.31

3.56%
315,101.69
2,973.75

0.66%
10,357.59
Aaa/AAA
NA

3.79 3.43
Total 304,661.45 103.31 315,101.69 0.66% Aaa/AAA 3.79
Supranational 305,000.00 4.53% 304,744.10 3.56% 2,973.75 10,357.59 NA 3.43

US TREASURY
912828YM6 UNITED STATES TREASURY 1.5
10/31/2024 1,000,000.00 01/12/20230.66%
1,014,925.23
1,000,680.48

99.72 4.89%
997,224.01
6,277.17

2.09%
(3,456.47)
Aaa/AA+
AA+

0.08 0.08
912828YV6 UNITED STATES TREASURY 1.5 700,000.00 01/12/2023 722,889.06 99.46 696,206.06 1.46% Aaa/AA+ 0.17 11/30/2024 (0.18%) 701,938.11 4.81% 3,528.69 (5,732.06) AA+ 0.16 91282CAJ0 UNITED STATES TREASURY 0.25 1,200,000.00 01/12/2023 1,095,937.50 96.61 1,159,350.00 2.42% Aaa/AA+ 0.92 08/31/2025 3.74% 1,163,870.19 4.06% 256.91 (4,520.19) AA+ 0.90 91282CAM3 UNITED STATES TREASURY 0.25 500,000.00 01/12/2023 456,445.31 96.39 481,953.13 1.01% Aaa/AA+ 1.00 09/30/2025 3.65% 484,018.24 3.98% 3.43 (2,065.11) AA+ 0.98 91282CJE2 UNITED STATES TREASURY 5.0 1,000,000.00 05/28/2024 998,671.88 101.10 1,011,015.62 2.11% Aaa/AA+ 1.08 10/31/2025 5.09% 998,991.14 3.95% 20,923.91 12,024.48 AA+ 1.03 9128285N6 UNITED STATES TREASURY 500,000.00 01/12/2023 496,212.61 98.86 494,277.35 1.03% Aaa/AA+ 1.17

2.875 11/30/2025 3.15% 498,471.38 3.89% 4,830.94 (4,194.03) AA+ 1.12 91282CGE5 UNITED STATES TREASURY 1,000,000.00 02/06/2023 992,929.69 100.05 1,000,507.81 2.09% Aaa/AA+ 1.29

3.875 01/15/2026 4.13% 996,896.44 3.83% 8,213.32 3,611.37 AA+ 1.24 35 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CBQ3 UNITED STATES TREASURY 0.5 500,000.00 01/12/2023 455,839.84 95.52 477,578.13 1.00% Aaa/AA+ 1.41 02/28/2026 3.50% 480,102.82 3.79% 214.09 (2,524.69) AA+ 1.38 91282CKH3 UNITED STATES TREASURY 4.5 1,000,000.00 04/24/2024 991,679.69 101.05 1,010,546.88 2.11% Aaa/AA+ 1.50 03/31/2026 4.96% 993,556.19 3.77% 123.63 16,990.69 AA+ 1.44 91282CBW0 UNITED STATES TREASURY 0.75 500,000.00 01/12/2023 443,595.43 95.44 477,187.50 1.00% Aaa/AA+ 1.58 04/30/2026 4.46% 473,015.75 3.75% 1,569.29 4,171.75 AA+ 1.54 9128286X3 UNITED STATES TREASURY 500,000.00 01/12/2023 465,958.71 97.45 487,265.63 1.02% Aaa/AA+ 1.67

2.125 05/31/2026 4.31% 483,268.78 3.72% 3,570.70 3,996.85 AA+ 1.60 91282CCJ8 UNITED STATES TREASURY 500,000.00 01/12/2023 443,595.43 95.27 476,347.66 1.00% Aaa/AA+ 1.75

0.875 06/30/2026 4.42% 471,597.07 3.69% 1,105.64 4,750.59 AA+ 1.70 91282CHY0 UNITED STATES TREASURY 900,000.00 09/25/2023 895,429.69 101.79 916,136.72 1.92% Aaa/AA+ 1.96

4.625 09/15/2026 4.81% 896,992.44 3.67% 1,839.78 19,144.28 AA+ 1.86 91282CJC6 UNITED STATES TREASURY 500,000.00 10/19/2023 494,218.75 101.88 509,414.06 1.07% Aaa/AA+ 2.04

4.625 10/15/2026 5.05% 496,057.52 3.66% 10,677.94 13,356.54 AA+ 1.89 91282CKV2 UNITED STATES TREASURY 625,000.00 06/26/2024 627,148.44 102.70 641,870.12 1.34% Aaa/AA+ 2.71

4.625 06/15/2027 4.50% 626,958.00 3.57% 8,529.71 14,912.12 AA+ 2.50 91282CFM8 UNITED STATES TREASURY 750,000.00 12/18/2023 751,669.92 101.61 762,041.02 1.59% Aaa/AA+ 3.00

4.125 09/30/2027 4.06% 751,322.88 3.56% 84.99 10,718.14 AA+ 2.80 91282CGC9 UNITED STATES TREASURY 1,000,000.00 02/06/2023 1,001,445.31 100.95 1,009,531.25 2.11% Aaa/AA+ 3.25

3.875 12/31/2027 3.84% 1,000,958.69 3.56% 9,792.80 8,572.56 AA+ 3.00 91282CHK0 UNITED STATES TREASURY 4.0 750,000.00 03/12/2024 743,496.09 101.50 761,220.71 1.59% Aaa/AA+ 3.75 06/30/2028 4.22% 744,332.90 3.57% 7,581.52 16,887.81 AA+ 3.42 91282CJA0 UNITED STATES TREASURY 500,000.00 10/19/2023 492,968.75 103.88 519,414.06 1.09% Aaa/AA+ 4.00

4.625 09/30/2028 4.95% 494,318.97 3.57% 63.53 25,095.09 AA+ 3.64 91282CEM9 UNITED STATES TREASURY 750,000.00 09/18/2024 729,931.64 97.04 727,763.67 1.52% Aaa/AA+ 4.58

2.875 04/30/2029 3.51% 730,074.64 3.58% 9,023.44 (2,310.97) AA+ 4.19 91282CLK5 UNITED STATES TREASURY 650,000.00 09/26/2024 651,955.08 100.30 651,929.69 1.36% Aaa/AA+ 4.92

3.625 08/31/2029 3.56% 651,950.73 3.56% 2,017.78 (21.05) AA+ 4.45 14,966,944.05 99.69 15,268,781.04 31.93% Aaa/AA+ 2.02
Total US Treasury 15,325,000.00 3.80% 15,139,373.35 3.86% 100,229.21 129,407.69 AA+ 1.89 36 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
Total Portfolio 47,710,092.07 4.39%
46,957,750.53
47,268,672.26

97.96 4.01%
47,816,696.04
313,941.75
100.00%
548,023.79
Aa2/AAAA2.22

1.84 Total Market
Value + Accrued 48,130,637.79
37 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

HOLDINGS REPORT
San Rafael Reporting | Account #11046 | As of September 30, 2024 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
CASH
CCYUSD Receivable 692,545.43 --

0.00%
692,545.43
692,545.43

1.00 0.00%
692,545.43

0.00 1.13%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 692,545.43 0.00%
692,545.43
692,545.43

1.00 0.00%
692,545.43

0.00 1.13%

0.00 Aaa/AAA
AAA

0.00 0.00
LAIF
90LAIF$00 Local Agency Investment Fund
State Pool 60,496,038.48 --4.57%
60,496,038.48
60,496,038.48

1.00 4.57%
60,496,038.48

0.00 98.87%

0.00 NA/NA
NA

0.00 0.00
Total LAIF 60,496,038.48 4.57%
60,496,038.48
60,496,038.48

1.00 4.57%
60,496,038.48

0.00 98.87%

0.00 NA/NA
NA

0.00 0.00
Total Portfolio 61,188,583.91 4.52%
61,188,583.91
61,188,583.91

1.00 4.52%
61,188,583.91

0.00 100.00%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Market
Value + Accrued 61,188,583.91
38 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

TRANSACTIONS
39 1-,,a CHANDLER " '-- ASSET MANAGEMENT

TRANSACTION LEDGER
City of San Rafael | Account #11045|07/01/2024 Through 09/30/2024| Transaction Type Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 07/17/2024 713448FX1 500,000.00 PEPSICO INC 4.5 07/17/2029 99.898 4.52% 0.00 (499,490.00) 0.00
Purchase 07/23/2024 3133ERMB4 750,000.00

FEDERAL FARM

CREDIT BANKS
FUNDING CORP 4.25
07/23/2027

99.969 4.26% 0.00 (749,767.50) 0.00
Purchase 08/14/2024 532457CP1 305,000.00 ELI LILLY AND CO

4.15 08/14/2027 99.919 4.18% 0.00 (304,752.95) 0.00
Purchase 08/20/2024 3133ERNP2 1,000,000.00

FEDERAL FARM

CREDIT BANKS
FUNDING CORP 4.0
08/06/2027

3.92% (1,555.56) (1,003,845.56) 0.00
Purchase 09/19/2024 91282CEM9 750,000.00

UNITED STATES
TREASURY 2.875
04/30/2029

97.324 3.51% (8,320.31) (738,251.95) 0.00
Purchase 09/27/2024 91282CLK5 650,000.00

UNITED STATES
TREASURY 3.625
08/31/2029

3.56% (1,757.42) (653,712.50) 0.00
Total Purchase 3,955,000.00 (11,633.29) (3,949,820.46) 0.00 TOTAL
ACQUISITIONS 3,955,000.00 (11,633.29) (3,949,820.46) 0.00

DISPOSITIONS
Maturity 07/02/2024 3135G0V75 (750,000.00)

FEDERAL NATIONAL

MORTGAGE
ASSOCIATION 1.75
07/02/2024

1.75% 750,000.00 0.00 750,000.00 0.00
Maturity 08/15/2024 912828D56 (700,000.00)

UNITED STATES
TREASURY 2.375
08/15/2024

2.38% 700,000.00 0.00 700,000.00 0.00
40 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

UNITED STATES
TREASURY 2.125
09/30/2024

2.13% 0.00 1,000,000.00 0.00
Total Maturity 0.00 2,450,000.00 0.00
Sale 07/23/2024 912828D56 (300,000.00)

UNITED STATES
TREASURY 2.375
08/15/2024

99.809 0.07% 299,425.78 3,112.29 302,538.07 (1,010.10)
Sale 08/14/2024 46647PBH8 (600,000.00)

JPMORGAN
CHASE & CO 2.005
03/13/2026

98.054 3.26% 588,324.00 5,045.92 593,369.92 (473.90)
Sale 09/19/2024 91282CEU1

UNITED STATES
TREASURY 2.875
06/15/2025

99.016 5.18% 990,156.25 7,540.98 997,697.23 6,523.13
Total Sale 15,699.19 1,893,605.22 5,039.13
TOTAL
DISPOSITIONS 15,699.19 4,343,605.22 5,039.13
41 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

TRANSACTION LEDGER
San Rafael Reporting | Account #11046|07/01/2024 Through 09/30/2024| Transaction Type Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 07/15/2024 90LAIF$00 646,804.92
Local Agency
Investment Fund
State Pool

1.000 4.53% 0.00 (646,804.92) 0.00
Total Purchase 646,804.92 0.00 (646,804.92) 0.00
TOTAL
ACQUISITIONS 646,804.92 0.00 (646,804.92) 0.00
42 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

IMPORTANT DISCLOSURES
2024 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.

Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.

Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “asis” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.

This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.

Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.

Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.

Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively. 43 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

BENCHMARK DISCLOSURES
Benchmark Disclosure
ICE BofA 1-3 Yr US Treasury & Agency Index
The ICE BofA 1-3 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 44 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 4.e
Meeting Date: November 18, 2024

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: Jonathan Schellin, Deputy Director
Public Works
City Manager Approval: ______________
TOPIC: WINDWARD WAY GAS MONITORING SERVICES
SUBJECT: AUTHORIZE THE CITY MANAGER TO ENTER INTO THE FIRST AMENDMENT TO

THE PROFESSIONAL SERVICES AGREEMENT WITH HALEY & ALDRICH FOR WINDWARD WAY GAS MONITORING SERVICES, IN AN AMOUNT OF $77,000,

INCREASING THE TOTAL NOT-TO-EXCEED AMOUNT OF THE AGREEMENT TO $145,800, AND APPROVE SUPPLEMENTAL BUDGET APPROPRIATIONS RECOMMENDATION:

1. Authorize the City Manager to enter into the first amendment to the professional services agreement with Haley & Aldrich, Inc. for Windward Way gas monitoring services, in an amount of $77,000, increasing the total not-to-exceed amount of the agreement to $145,800.

2. Authorize supplemental budget appropriations totaling $217,500 to cover additional gas monitoring services ($77,000; General Fund-001) along with additional well construction work ($140,500; Capital Fund-401).

BACKGROUND:

The former Bellam Boulevard Landfill (also called the San Rafael Landfill) is located at the City-owned parcel at 31 Windward Way. The State of California regulations (Title 27, Section 20925 of the California Code of Regulations) require monitoring of landfill gas (LFG) to determine if it is migrating beyond the permitted landfill facility boundary. During a routine annual site inspection in March of 2022, methane gas was detected in a landfill gas monitoring well near the landfill’s center. The methane gas was detected to be above the allowable concentration of 5% by volume (v/v) pursuant to Title 27, Section 20921(a)(2), and was a preliminary indicator that the site could still be producing methane gas.

The City entered a contract in January of 2023 with Haley & Aldrich, Inc. to assess and install monitoring wells and perform initial monitoring required by the County of Marin Environmental Health Services Division in their role as the Local Enforcement Agency (LEA). After the initial well installations were completed in July 2024, field tests were conducted, resulting in readings that exceeded the allowable limit. Subsequent lab tests, which control for several variables that often impact field tests, found readings under the allowable concentration of 5%.

Two subsequent wells were installed on October 15, 2024, to replace two wells deemed no longer usable per the County’s guidance. During the monitoring performed on October 24, 2024, field readings indicated SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
methane readings above the allowable concentration of 5%. Lab samples were taken from these locations for further analysis. During the monitoring event, additional readings from the ambient air surrounding these locations were taken to ensure no emissions from the sample locations could pose a risk to the local community.

The City of San Rafael will continue to work closely with the County of Marin Environmental Health Services Division and California Department of Resources Recycling and Recovery (CalRecycle) to ensure the City complies with all regulations and that conditions near the site remain safe for the public.

ANALYSIS:

Further testing will be conducted on an ongoing basis to ensure that results consistently remain within the specified allowable concentration limits. Based on the increase in the original scope of work required to continue complying with the state’s monitoring requirements, the City recommends modifications to Haley & Aldrich’s professional services agreement with the City. This additional scope includes expedited lab testing, supporting the City in meeting County compliance requirements, and investigating causes of the variable testing results. This will be the First Amendment to the Professional Services Agreement in an amount of $77,000 for landfill gas monitoring services through FY 2024-25.

PUBLIC OUTREACH:

The information on the gas monitoring is located on the City and CalRecycle websites. This information is updated to reflect any additional relevant information from testing. Notices were mailed to adjacent properties to the landfill and emailed to the Baypoint Homeowners Association before the additional monitoring wells were installed this summer.

FISCAL IMPACT:

Funding for this task is separate from the standard Public Works Operations and Maintenance budget.

The funding to support the recommended contract amendment in the amount of $77,000 is recommended to come from available fund balance within the General Fund. Additionally, several existing wells required adjustments, and two new wells were needed to be installed to comply with the LEA requirements due to groundwater causing testing interference at the site. Therefore, an additional $140,500 in supplemental budget appropriations is requested for construction work under a separate contract, to be funded through available fund balance within the Capital Fund (410).

OPTIONS:

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

1. Authorize the City Manager to enter into the first amendment to the agreement as recommended and authorize supplemental budget appropriations from the General Fund and Capital Fund.

2. Direct staff to return with more information.

RECOMMENDED ACTION:

1. Authorize the City Manager to enter into the first amendment to the professional services agreement with Haley & Aldrich Inc. for Windward Way gas monitoring services, in an amount of $77,000, increasing the total not-to-exceed amount of the agreement to $145,800.

ATTACHMENTS:

1. Draft First Amendment
1 FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH HALEY & ALDRICH, INC. FOR WINDWARD WAY GAS MONITORING
THIS FIRST AMENDMENT to the Professional Services Agreement by and between the CITY OF SAN RAFAEL (hereinafter “CITY”), and HALEY & ALDRICH, INC. (hereinafter “CONSULTANT”), is made and entered into as of _____________________.

RECITALS
WHEREAS, the CITY and CONSULTANT entered into a Professional Services Agreement dated August 26, 2024 to perform professional services in connection with CITY’S Windward Way Gas Monitoring Services, for an amount not to exceed $68,800 (the “Agreement”); and
WHEREAS, CITY requires additional professional services from the CONSULTANT, and the CONSULTANT is willing to provide such services.

AMENDMENT TO AGREEMENT
NOW, THEREFORE, the parties hereby agree to amend the Agreement as follows:

1. Article II of the Agreement, entitled “DUTIES OF CONSULTANT” is hereby amended to include the additional services set forth in CONSULTANT’s proposal dated November 1, 2024, attached to this First Amendment as Exhibit A and incorporated herein by reference.

2. Article IV of the Agreement, entitled “COMPENSATION” is hereby amended to include additional compensation payable to CONSULTANT for the services described in Exhibit A to this First Amendment, on a time and materials basis in accordance with the Exhibit A, in a not-to-exceed amount of $77,000, and to change the total not-to-exceed amount under the Agreement to $145,800.

3. Except as specifically amended herein, all of the other provisions, terms and obligations of the Agreement between the parties shall remain valid and shall be in full force.

IN WITNESS WHEREOF, the parties have executed this First Amendment on the day, month, and year first above written.
2 CITY OF SAN RAFAEL CONSULTANT
______________________________ By:______________________________ CRISTINE ALILOVICH, City Manager
Name:____________________________
Title:_____________________________
ATTEST:
[If Consultant is a corporation, add signature of
second corporate officer]
______________________________
LINDSAY LARA, City Clerk
By:_____________________________
APPROVED AS TO FORM: Name:____________________________
Title:_____________________________
______________________________
ROBERT F. EPSTEIN, City Attorney
HALEY & ALDRICH, INC.
2033 N. Main Street
Suite 309
Walnut Creek, CA 94596
925.949.1012
www.haleyaldrich.com
1 November 2024
File No. 0205949-000
City of San Rafael
111 Morphew Street
San Rafael, California 94901
Attention: Jonathan Schellin
Deputy Director – Admin Services
Subject: Request for Additional Funding PSA - Monitoring Agreement Bellam Boulevard Landfill
31 Windward Way
San Rafael, California 94901
Ladies and Gentlemen:

Haley & Aldrich, Inc. (Haley & Aldrich) is submitting to the City of San Rafael (City) this proposal to request additional funding for our consulting and subcontractor services in connection with the monitoring of the California Code of Regulations (CCR) Title 27 perimeter landfill gas (LFG) monitoring network recently installed at the Bellam Boulevard Landfill located at 31 Windward Way in San Rafael, California (Site).

Haley & Aldrich is currently contracted with the City under the following Agreement for Professional Services for Windward Way Gas Monitoring Services (Monitoring PSA), dated 26 August 2024. Due to additional regulatory requirements from the County of Marin Environmental Health Services Division, the California Local Enforcement Agency (LEA), and CalRecycle additional funding is required to complete the scope of services. Haley & Aldrich notes that some of the funding requested in this proposal has already been authorized by the City and incurred by us in order to maintain the Site’s compliance with CCR Title 27.

Additional Services
Haley & Aldrich’s additional services for the agreement are described below.

MONITORING PSA
The following additional services are for monitoring of the Site’s perimeter LFG probe monitoring network and regulatory actions stemming from these monitoring activities.

Exhibit A
City of San Rafael
1 November 2024

Page 2 ends

Task 1: LFG Well Monitoring
The Monitoring PSA included costs for 6 months of monthly field monitoring and quarterly monitoring including laboratory analysis of the gas samples collected at each LFG well. Given the initial monitoring results, Haley & Aldrich is requesting additional budget to cover 1 year of monthly field monitoring.

Additionally, due to the detection of methane above the 5% CCR Title 27 threshold during the first monthly monitoring event completed in September 2024, additional monitoring was performed by Haley & Aldrich as required by the LEA which required expedited laboratory analysis. This task also includes the increased laboratory fee associated with the expedited analysis.

Task 2: As-Needed Consulting Services
Under this task, Haley & Aldrich will provide the City as-needed consulting services associated with the Site’s regulatory oversight provided by the LEA and CalRecycle. Services will include, but are not limited to, responding to LEA and/or CalRecycle requests and attending meetings with these regulatory agencies. Additionally, under this task we will be available to meet with the City and their counsel as needed. Haley & Aldrich is requesting a budget of $20,000 for this task, which will be tracked on a time and materials basis. We will notify the City should additional funding become necessary.

Additional Estimated Fee
Haley & Aldrich will perform the above services on a time and materials basis in accordance with the Monitoring PSA. Our total requested additional fee is $77,000 as detailed in the table below, thereby increasing our total contracted fee from $68,000 to $145,000.

Contract Initial Budget Budget
Increase/Request Total
Monitoring PSA Task 1: LFG Well Monitoring $68,000
$57,000
Labor-$27,590 $125,000
Expenses-$29,410
Monitoring PSA Task 2: As-Needed Consulting
Services $20,000 $20,000
TOTAL $68,000 $77,000 $145,000
Authorization
If the above arrangements are satisfactory to you, we understand the City will issue an Agreement for Professional Services that references this proposal. When accepted by Haley & Aldrich, this Agreement for Professional Services together with this proposal will constitute our Agreement.

City of San Rafael
1 November 2024

Page 3 ends

Closing
We appreciate the opportunity to submit this proposal and look forward to our association with you on this project. Please contact the undersigned if you wish to discuss this proposal or any aspect of the project.

Sincerely yours,
HALEY & ALDRICH, INC.

Michael Flanagan
Environmental Scientist
Jason Grant, P.E. (CA)
Program Manager
\\haleyaldrich.com\share\CF\Projects\0205949\Proposal\2024-10_PSA Additional monitoring\2024-1101-HAI-Request for Additional Funding PSA Monitoring agreement.docx
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 5.a
Meeting Date: November 18, 2024

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Paul Navazio, Finance Director City Manager Approval: ______________ TOPIC: FY 2024-25 FIRST QUARTER BUDGET UPDATE
SUBJECT: FY 2024-25 FIRST QUARTER BUDGET UPDATE: REVENUE AND EXPENDITURE RESULTS FOR THE QUARTER ENDING SEPTEMBER 30, 2024
RECOMMENDATI4ON:
1) Accept the fiscal year (FY) 2024-25 First Quarter Budget Update presenting revenue and expenditure results through the first quarter of the current fiscal year (through September 30, 2024) (Attachment A).
2) Authorize amendments to the FY 2024-25 budget representing unencumbered carry-over appropriations for specified purposes, totaling $1,080,148, as presented in Attachment B.

BACKGROUND:

This agenda item presents the first quarter budget update report summarizing revenue and expenditure results through the first quarter of the fiscal year (FY) 2024-25. This is largely an informational report providing periodic updates of financial results relative to the approved budget.

Attachment 1 provides a summary of FY 2024-25 first-quarter revenue and expenditure results, organized as follows:

Table 1 – All Fund Revenues, by Fund Type Table 4 – General Fund Revenues Table 2 – All Fund Expenditures by Fund Type Table 5 – General Fund Expenditures by Category Table 3 – All Fund Expenditures by Dept. Table 6 – General Fund Expenditures by Dept.

Table 7 – All Fund revenues, by Fund Table 8 – All Fund Expenditures by Fund A Mid-Year (second quarter) Budget Update is planned for February 2025 to include revenue and expenditure results through the first half of the fiscal year (December 31, 2024) as well as updated revenue and expenditure projections through the remainder of the fiscal year. The Mid-Year Budget Update serves to inform budget adjustments, as necessary, as well as inform the development of the City’s FY 2025-26 budget.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
A third quarter budget update is planned for May 2025, coinciding with the City Council’s consideration and review of the City’s Proposed FY 2025-26 budget.

The First Quarter Budget Update report was previewed with the Finance Subcommittee (Mayor Kate, Vice Mayor Hill) at their November 12, 2024 meeting.

DISCUSSION:

Highlights of the FY 2024-25 Q1 results (Summarized in Attachment A):
• All Funds revenues through the first quarter of FY 2024-25 were $27.15 million or 13.9% of the amended revenue budget of $195.56 million (see Attachment A). • All Funds expenditures through the first quarter of FY 2024-25 totaled $48.45 million. This, combined with an additional $29.59 million in encumbrances related to executed contracts and purchase orders, represents a total of 34.2% of the amended expenditure budget of $228.26 million (see Attachment A).
• General Fund revenues through the first quarter of FY 2024-25 totaled $8.65 million, or 8.3% of the approved budget of $103.79 million.
o General Fund revenues through the first quarter reflect the fact that the first Property Tax payments (from the County) and Sales Tax payments (from the State) are not received until the second quarter of the fiscal year.
o Most other General Fund revenues are initially tracking at, or above, the expected budget through the first quarter of the fiscal year.
• General Fund expenditures through the first quarter of FY 2024-25 were at $30.91 million.

Combined with encumbrances of $3.05 million, this represents a combined commitment of $30.2% of the adjusted budget of $112.58 million.
o Through the first quarter, results across most expenditure categories are tracking within budget. Personnel costs are trending slightly below budget due to ongoing vacancies in selected departments.
o Departmental expenditures appear to be within budget, accounting for selected professional services contracts that reflect as encumbered appropriations as of the end of the first quarter.
• The following table summarizes activity for the FY 2024-25 Capital Improvement Plan (CIP) budget through the first quarter of the fiscal year:

FY 2024-25 Capital Improvement Plan
Expenditures By Fund
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
• Through the first quarter of the fiscal year, capital project expenditures were $1.72 million, or 0.4% of the amended FY 2024-25 capital budget, which provides for amended appropriations totaling $42.88 million.
• The amended budget of $42.88 million reflects the original adopted budget of $33.26 million, as well carry-over appropriations of $9.22 million (representing encumbrances related to contracts and purchase orders entered into in the prior fiscal year), as well as a budget augmentation of $400,000 approved by the City Council since approval of the original budget.

FY 2023-24 Unencumbered Carry-Over Requests (Attachment B):

This First Quarter Budget Update includes a recommended City Council action authorizing the reappropriation of $1,080,148 in funding included in the prior year’s budget for specific projects and expenditures for which no purchase order or contract was issued prior to the end of the fiscal year. As such, City Council action is requested to amend the FY 2024-25 budget to reflect these funds' reappropriation for the intended purpose. The requested FY 2023-44 Carry-Over appropriations are summarized below and detailed in Attachment B to this report:

Fund Amount Description
206 – Gas Tax $ 98,000 Sidewalk Shaving Multi-Year Contract 283 – Grants (Other) 200,000 Marin Housing – Program Admin. 420 – Essential Facilities 24,489 Fire Station 54 – Security / Fence 600 – Vehicle Replacement 757,659 FY 23-24 Vehicle Replacements Total FY 2023-24 Carry-Over $1,080,148
FISCAL IMPACT:

This agenda item provides financial results through the first quarter of the fiscal year as measured against the approved FY 2024-25 adjusted budget, which provides for authorized expenditure appropriations of $228.26 million supported by budgeted revenues of $195.56 million as well as the use of available fund balances, across all funds. The approved FY 2024-25 General Fund budget provides for expenditure appropriations of $112.50 million supported by projected revenues of $103.79 million along with available fund balance.

This staff report also includes a recommendation authorizing amendments to the FY 2024-25 budget to reflect the carry-over of unencumbered appropriations from the FY 2023-24 budget totaling $1,080,148 across all funds. These appropriations reflect funding provided for in the prior fiscal year for specific purposes that remained unexpended and unencumbered at year-end, for which City Council-approved funding is required to complete planned work within the current fiscal year.

Fund Name of Fund
Adopted Budget
FY24-25
FY23-24
Encumbered
Carry-Over
Budget
Augmentations Adjustment Budget
FY25
Project Expenditure
Thru Sept FY25
205 Stormwater Fund $ 1,126,653 $ 4,313,361 $ 5,440,014 $ 231,770 206 Gas Tax Fund 15,011,838 3,156,245 400,000 18,568,083 1,111,080 214 Library Fund 4,357,059 369,531 4,726,590 117,717
241 Measure A Open Space 937,500 102,692 1,040,192 24,961 246 Traffic Mitigation 100,000 225,065 325,065 93,768
283 Grant Fund-Other 104,033 104,033
401 Capital Improvement Fund 9,215,000 160,297 9,375,297 86,935 420 Measure E Public Safety Facility 100,000 758,961 858,961 39,918 603 Building Maintenance Fund 2,412,713 27,060 2,439,773 12,741 33,260,763 9,217,244 400,000 42,878,007 1,718,890
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
RECOMMENDED ACTION:

Staff recommends that the City Council:
1) Accept the FY 2024-25 First Quarter Budget Update presenting revenue and expenditure results through the first quarter of the current fiscal year (through September 30, 2024) (Attachment A). 2) Authorize amendments to the FY 2024-25 budget representing unencumbered carry-over appropriations for specified purposes, totaling $1,080,148, as presented in Attachment B.

ATTACHMENTS:

A. FY 2024-25 Q1 Budget Update - summary results through 9/30/24 B. Recommended FY 2023-24 Unencumbered Carry-Over Appropriations

ATTACHMENT A
FY 2024-25 Q1 Budget Update
Table 1
FY 2024-25 All Fund Revenues
by Fund Type
• All Funds revenues through the first quarter of FY 2023-24 were $25.56 million or 14.4% of the
amended revenue budget of $176.97 million.

Table 2
FY 2024-25 All Fund Expenditures
by Fund Type
• The Adjusted FY2024-25 budget reflects budget amendments totaling $17.12 million following adoption of the original Adopted Budget. These budget amendments include:
o Carry-over of FY 2023-24 encumbered appropriations totaling $14.47 million across all funds related to contracts and purchase orders executed in the prior fiscal year. These carry-over appropriations are authorized via the budget Resolution No. 15309, approved by the City Council on June 17, 2024. o Additionally, since the adoption of the FY2024-25 budget, the City Council has authorized the following budget augmentations, totaling $2.46 million:
 Homeless Program – $2,256,400 ERF3 and Earmark funding (Special Revenue Grants Fund-283), approved by the City Council on 8/19/24, and Fund Type
Adopted Budget
FY25
Adjusted Budget
FY25
Actual Thru
Sep FY25 % Budget
General Fund $ 103,790,510 $ 103,790,510 $ 8,647,862 8.3% Special Revenue Funds 51,029,044 56,032,081 5,539,016 9.9% Capital Funds 7,679,073 7,679,073 2,887,886 37.6%
Enterprise Funds 4,807,330 4,807,330 1,126,807 23.4%
Internal Service Funds 23,148,781 23,148,781 8,951,813 38.7% Fiduciary Funds 97,427 97,427 1,234 1.3%
Grand Total $ 190,552,164 $ 195,555,201 $ 27,154,618 13.9% Fund Type
Adopted Budget
FY25
Adjusted Budget
FY25
Actual Thru
Sep FY25 Encumbrances Budget %
General Fund $ 112,291,594 $ 112,584,602 $ 30,914,490 $ 3,018,527 30.1% Special Revenue Funds 59,657,513 74,110,369 8,993,253 15,097,358 32.5% Capital Funds 9,500,770 10,420,028 129,711 8,654,649 84.3% Enterprise Funds 4,795,356 4,982,073 1,097,916 188,808 25.8% Internal Service Funds 24,721,214 25,941,246 7,157,216 2,602,551 37.6% Fiduciary Funds 167,872 217,872 153,300 - 70.4%
Grand Total $ 211,134,318 $ 228,256,190 $ 48,445,887 $ 29,561,894 34.2%  Street Pavement Management Program - $400,000 from available fund balance (Special Revenue Gas Tax Fund-205), approved by the City Council on 8/19/24.
• All Funds expenditures through the first quarter of FY 2024-25 totaled $48.45 million.

This, combined with an additional $29.56 million in encumbrances related to executed contracts and purchase orders, represents a total of 34.2% of the amended expenditure budget of $228.26 million.

Table 3
FY 2024-25 All Fund Expenditures
by Department
• All Departments are tracking well within budget through the first three months of the fiscal year.
epartment
Adopted Budget
FY25
Adjusted Budget
FY25
Actual Thru
Sep FY25 Encumbrances Budget %
10 - Finance $ 3,371,622 $ 3,496,942 $ 1,207,084 $ 56,110 36.1% 12 - City Manager/City Council 4,938,466 8,128,069 1,442,699 1,547,704 36.8% 13 - City Clerk 783,036 783,036 157,063 - 20.1%
14 - Management Services 28,192,084 29,156,190 7,787,151 1,211,418 30.9% 15 - City Attorney 1,452,734 1,458,435 279,591 5,702 19.6% 16 - Comm. & Econ. Developme 10,596,784 11,364,096 1,363,565 1,468,885 24.9% 31 - Police 29,886,706 30,159,390 7,351,473 329,652 25.5% 33 - Fire 38,340,304 40,802,405 9,409,401 1,885,805 27.7% 44 - Public Works 54,423,545 53,302,427 6,747,986 13,316,457 37.6% 51 - Library 9,763,436 10,133,103 1,330,193 1,042,770 23.4% 66 - Community Services 7,155,728 18,602,223 2,274,430 8,100,838 55.8% 99 - Non-departmental 22,229,875 20,869,875 9,095,252 596,553 46.4% Grand Total $ 211,134,318 $ 228,256,190 $ 48,445,887 $ 29,561,894 34.2% Table 4
FY 2024-25 General Fund Revenues
• General Fund revenues though the first quarter of FY 2024-25 totaled $8.64 million, or

8.3% of the approved budget of $103.79 million.
o General Fund revenues through the first quarter reflect the fact that the first Property Tax payments (from the County) and Sales Tax payments (from the State) are not received until the second quarter of the fiscal year. o Most other General Fund revenues are initially tracking at, or above, the expected budget through the first quarter of the fiscal year.

Revenue Category
Adopted Budget
FY25
Adjusted Budget
FY25
Actual Thru
Sep FY25 Budget %
Taxes
1101 - Property Tax (Current Se $ 20,946,795 $ 20,946,795 $ - 0.0% 1102 - Property Tax [Current Un 392,519 392,519 - 0.0%
1104 - Supplemental Tax 250,000 250,000 4,267 1.7%
1107 - E.R.A.F. 3,300,000 3,300,000 5,620 0.2%
1110 - Franchise Fee: Refuse 3,000,000 3,000,000 524,866 17.5% 1111 - Sales & Use Taxes 25,253,524 25,253,524 2,087,853 8.3% 1112 - Franchise Tax 1,700,000 1,700,000 - 0.0%
1113 - Transient Occupancy Tax 3,900,000 3,900,000 454,230 11.6% 1115 - Business License Tax 2,600,000 2,600,000 88,847 3.4% 1116 - Measure S - Use Tax (TU - - 8 0.0%
1117 - Measure E - Use Tax (TU 14,520,000 14,520,000 1,276,558 8.8% 1121 - Property Transfer Tax 1,500,000 1,500,000 334,656 22.3% 1124 - Unitary Tax 309,508 309,508 - 0.0%
1129 - Measure R - Use Tax (TU 4,840,000 4,840,000 425,335 8.8% 1150 - Business License Tax (Pr - - - 0.0%
Taxes Total $ 82,512,346 $ 82,512,346 $ 5,202,240 6.3%
2X00 - Licenses & Permits 2,950,488 2,950,488 806,819 27.3% 3300 - Citation Collections 130,000 130,000 22,588 17.4% 3400 - Fines & Forfeitures 73,400 73,400 18,727 25.5%
4400 - Use Of Money 1,069,558 1,069,558 1,066,241 99.7% 5500 - Intergovernmental 11,708,404 11,708,404 480,212 4.1% 6000 - Charges For Services 10,000 10,000 - 0.0%
6300 - Development Fees 1,831,094 1,831,094 419,375 22.9% 6600 - Project Review Fees 501,814 501,814 70,569 14.1% 6700 - False Alarm Fees 137,000 137,000 23,869 17.4%
6800 - Duplication Costs 100 100 208 208.0%
6900 - Business Tax Processing - - 125 0.0%
7700 - Other 358,000 358,000 84,812 23.7%
7900 - Transfers 2,508,306 2,508,306 452,076 18.0%
Grand Total $ 103,790,510 $ 103,790,510 $ 8,647,862 8.3% Table 5
FY 2024-25 General Fund Expenditures
By Category
• General Fund expenditures through the first quarter of FY 2024-25 stand at $30.91 million. Combined with encumbrances of $3.02 million, this represents a combined commitment of $30.1% of the adjusted budget of $112.58 million. o Through the first quarter, results across most expenditure categories are tracking within budget. Personnel costs are trending slightly below budget due to ongoing vacancies in selected departments.
o Departmental expenditures appear to be within budget, accounting for selected professional services contracts that reflect as encumbered appropriations as of the end of the first quarter.

Table 6
FY 2024-25 General Fund Expenditures
By Department
Expenditure Category
Adopted Budget
FY25
Adjusted Budget
FY25
Actual Thru
Sep FY25 Encumbrances Budget %
8100 - Salaries & Wages $ 41,305,632 $ 41,305,769 $ 9,882,589 $ - 23.9% 8300 - Fringe Benefits 29,790,461 29,790,460 6,938,223 - 23.3% 9200 - Services 11,849,929 12,090,120 2,440,977 2,566,741 41.4% 9300 - Supplies 1,451,992 1,445,117 314,119 129,078 30.7% 9400 - Utilities/Communication 1,888,650 1,888,650 466,609 - 24.7% 9500 - Other 1,505,815 1,565,371 762,596 322,708 69.3%
9600 - Debt Services 5,326,792 5,326,792 640,047 - 12.0% 9700 - Assets-Purchase/Cost - - - - 0.0%
9900 - Transfer Out & Internal Srv Charges 19,172,323 19,172,323 9,469,330 - 49.4% Grand Total $ 112,291,594 $ 112,584,602 $ 30,914,490 $ 3,018,527 30.1% Department
Adopted Budget
FY25
Adjusted Budget
FY25
Actual Thru
Sep FY25 Encumbrances Budget %
10 - Finance $ 2,628,376 $ 2,703,696 $ 459,189 $ 56,110 19.1% 12 - City Manager/City Council 3,945,024 4,497,833 1,245,001 691,668 43.1% 13 - City Clerk 783,036 783,036 157,063 - 20.1%
14 - Management Services 2,929,496 2,961,696 689,272 - 23.3% 15 - City Attorney 1,330,632 1,336,333 265,380 5,702 20.3% 16 - Comm. Development 7,099,118 6,666,430 1,102,253 268,885 20.6% 31 - Police 28,482,449 28,755,133 7,135,483 136,172 25.3% 33 - Fire 24,097,856 24,728,519 6,052,290 202,468 25.3% 44 - Public Works 15,399,565 15,755,748 3,813,788 857,568 29.6% 51 - Library 3,494,254 3,494,390 901,531 203,402 31.6%
99 - Non-departmental 22,101,787 20,901,787 9,093,239 596,553 46.4% Grand Total $ 112,291,594 $ 112,584,602 $ 30,914,490 $ 3,018,527 30.1% Table 7
FY 2024-25 Revenues
By Fund
Table 8
FY 2024-25 Expenditures
By Fund

ATTACHMENT B
FY2023-24
Unencumbered Carry-Over Appropriations
Dept Description Amount Account #
DPW Sidewalk Shaving Program 98,000 206-44-48002-9270
Sub-total Fund 206 (Gas Tax) $ 98,000
CED Marin Housing - Program Administration 200,000 243-16-28001-9270 Sub-total Fund 283 (Grants- Other) $ 200,000
DPW Fire Station #54- Security / Fence 24,489 420-44-99005-9751 Sub-total Fund 420 (Essential Facilities) $ 24,489
DPW Replacement Vehicle #139 (FA#001555) 27,206 600-44-46001-9720 DPW 2 Ambulances per CC auth. 8/21/23 603,300 600-44-46001-9720 Outfitting 2 Ambulances per CC auth.
8/21/23 53,516 600-44-46001-9720
DPW Outfitting Veh#246 (FA#002396) 29,339 600-44-46001-9720 DPW Outfitting Veh#14 (FA#002400) 30,928 600-44-46001-9720 DPW Veh 277-15 FA#002213 6,649 600-44-46001-9720
DPW Veh #275-15 FA002207, #275-23 FA#002409 6,720 600-44-46001-9720 Sub-total Fund 600 (Vehicle Relacement) $ 757,659
Total FY 2023-24 Carry-over Appropriations $ 1,080,148
Agenda Item No: 5.b
Meeting Date: November 18, 2024

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Paul Navazio,
Finance Director
City Manager Approval: __________
TOPIC: YEAR-END AUDITED FINANCIAL STATEMENTS AND RELATED AUDIT

REPORTS
SUBJECT: FISCAL YEAR 2023-24 ANNUAL COMPREHENSIVE FINANCIAL REPORT; MEMORANDUM ON INTERNAL CONTROL; REPORT OF REQUIRED
COMMUNICATIONS; CHILD DEVELOPMENT PROGRAM FINANCIAL
REPORT; AND GANN APPROPRIATIONS LIMIT
RECOMMENDATION:

Accept the Fiscal Year (FY) 2023-24 Annual Comprehensive Financial Report, Memorandum on Internal Control, Report of Required Communications, Child Development Program Financial Report, and Gann Appropriations Limit Report.

BACKGROUND:

As required by local code, State law, bond covenants, and best practices, the City of San Rafael completes an annual independent audit of its financial activities. The auditing firm of Maze and Associates, Accountancy Corporation, conducted the audit for fiscal year 2023-24. The auditors completed their work in accordance with generally accepted auditing standards issued by the Comptroller General of the United States, as well as the provisions of Office of Management and Budget Circular A-133, Audits of State and Local Government and Non-Profit Organizations.

The auditors also prepared a Memorandum on Internal Control to address the City’s controls over its financial activities. In addition, the requirements of Section 1.5 of Article XIIIB of the California Constitution are met with an agreed-upon procedure report applied to the Gann Appropriation Limit calculated for the year ending June 30, 2025. These reports are attached to this staff report.

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

For the year ending June 30, 2024, the City did not receive funds under the Transportation Development Act. Therefore, no separate audit report was completed to satisfy the State of California’s requirements regarding these funds.
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

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

Fiscal Year 2023-24 Annual Comprehensive Financial Report – City-wide Financial Results The independent auditor has issued an unqualified opinion relative to the City’s financial statements for the fiscal year ended June 30, 2024. This opinion states that the financial statements present fairly, in all material respects, the City’s financial position. The audited results of the City’s financial activities for the fiscal year ended June 30, 2024, are presented in the attached Annual Comprehensive Financial Report (ACFR).

The report includes Government-wide financial statements, with governmental activities and business-type activities presented separately. At the end of the fiscal year, the net position of the City’s governmental activities, inclusive of all governmental funds, all assets of the City (including infrastructure), and all liabilities (including long-term debt), was $310.8 million, an increase of $29.3 million from the prior year adjusted balance.

Current and other governmental assets increased by $10 million, mainly due to overall revenues outpacing expenses for the year, increasing cash and investment balances. The $8.1 million increase in capital assets reflects project-to-date activity for major infrastructure improvements exceeding depreciation for the year. The decrease of $6.8 million in deferred outflows is primarily a result of the impact of the amortization of pension and other post-employment benefits (OPEB) related outflows recognized into pension expense in the current year. Noncurrent governmental liabilities decreased by $12 million mainly because of the decrease in pension and OPEB liabilities of $8 million, as well as the paydown of long-term debt. Deferred inflows decreased by $5.3 million, mainly due to the amortization of Pension and OPEB inflows in the current year.

Increase Increase
2024 2023 (Decrease) 2024 2023 (Decrease)
Current and other assets $146,001 $135,941 $10,060 $1,518 $1,745 ($227) Capital assets 319,756 311,664 8,092 14,743 15,162 (419) Total assets 465,757 447,605 18,152 16,261 16,907 (646) Deferred outflows (Notes 9 and 11) 66,549 73,312 (6,763) 1,780 1,312 468 Current and other liabilities 18,004 18,677 (673) 528 503 25 Noncurrent liabilities 180,544 192,517 (11,973) 6,239 6,942 (703) Total liabilities 198,548 211,194 (12,646) 6,767 7,445 (678) Deferred inflows (Notes 4G, 9 and 11) 22,923 28,213 (5,290) 571 772 (201) Net Position:

Net investment in capital assets 268,520 259,204 9,316 11,354 11,454 (100) Restricted 48,596 46,773 1,823 0
Unrestricted (6,281) (24,466) 18,185 (651) (653) 2
Total net position $310,835 $281,511 $29,324 $10,703 $10,801 ($98) Governmental Activities Business-Type Activities
Summary of Net Position
(in thousands)
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
The Management's Discussion and Analysis (MD&A) section, beginning on page five of the attached ACFR, provides additional explanatory information. The MD&A provides key highlights and a summary view of financial activities for the year.

Financial Results: General Fund
General fund revenues and transfers-in exceeded expenditures and transfers-out by $8.6 million.

Expenditures of $93.9 million were $6.3 million less than original budgeted expenditures of $100.2 million as the City continued to experience significant personnel savings against vacant positions during the fiscal year.

The fund balance of the General Fund as of June 30, 2024, was $36.4 million (an increase of $8.6 million from the prior year’s balance). Of this amount, $54 thousand is non-spendable, $9.8 million is committed, $20.8 million is assigned, and $5.7 million is unassigned. The committed and unrestricted portions of the balance include $9.8 million and $4.9 million for emergency and cash flow needs, respectively, which meets the minimum target reserve levels at 15% of general fund operating expenditures established by City Council policy.

Memorandum on Internal Control
As a component of the annual financial audit, the auditors must communicate to the City Council matters related to internal controls that may impact the accuracy of the City’s financial statements.

The auditor’s Memorandum on Internal Control identifies findings that are deemed to be either material weaknesses, significant deficiencies, or “other matters.” (Attachment 2) The Memorandum on Internal Control issued with the audit of the financial statements for the fiscal year ended June 30, 2024, does not identify any material weaknesses or significant deficiencies. However, the memorandum notes that two “Other Matters” were identified in prior years’ audits, one of which remained unresolved as of June 30, 2024, and is summarized as follows:

Adopted Budget Revised Budget Actual
Revenues $100,802 $100,802 $104,946
Transfers in 1,827 2,127 2,061
Issuance of long-term debt - - 2,519
Total resources 102,629 102,929 109,526
Expenditures 100,152 $100,166 93,850
Operating transfers out 2,207 2,404 2,405
Capital transfers out - 4,690 4,624
Total uses 102,359 107,260 100,879
Net Results $270 ($4,331) $8,647
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2024 (in thousands)
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
• Finding 2022-2 – Purchasing Policy Compliance and Clarification of Requirements. This finding resulted in a recommendation from the independent auditor that the City review and update its Purchasing Policy to clarify requirements for the use of purchase orders and contracts and review internal controls to ensure practices comply with the City’s policy. In their Memorandum of Internal Controls, the auditor notes that management has not yet fully addressed this matter.

Management’s response (included in the Memorandum of Internal Control):

As noted, management had concurred with the recommendation(s) from prior Other Matters (2023-2 and 2022-02) related to the Clarification of Requirements for compliance with the City’s Purchasing Policy. Concurrent with the start of the current fiscal year (July 1, 2024), City management issued updated guidelines related to the City’s purchasing policy and procedures. Included as part of the new guidelines were updates specific to past findings issued by the City’s Independent Auditor. Specifically:
1) Effective July 1, 2024, Purchase Orders are now required for all purchases and contracts of $10,000 or more.
2) The updated 2024-25 purchasing guidelines and procedures further clarify that, for purposes of application of delegated spending authority, approval levels are to be based on total contract amount(s) (original plus any amendments or change orders) rather than on an individual transaction.

Management recognizes that the update to the City’s purchasing guidelines and procedures became formally effective with the fiscal year starting 7/1/24 and, therefore was not in place for the 2023-24 fiscal year, subject of the current audit report. Staff has reviewed the actions taken with the Independent Auditor and is confident that this finding will be deemed resolved in our next annual audit report.

Required Communications
Professional standards require that certain information regarding significant audit findings related to the audit be communicated to those charged with governance. These communications include minor changes to accounting policies, new accounting pronouncements, and a discussion of significant accounting estimates, among other items. The auditor noted no adverse communications in their report. (Attachment 3)
Gann Appropriations Limit
The Agreed-Upon Procedures report for the Gann Appropriations Limit required three procedures to be performed, including testing the accuracy of the calculations and comparing the information presented. No exceptions were noted in these procedures for compliance with the Proposition 111 fiscal year 2024-25 Appropriations Limit calculation. (Attachment 4) Child Development Program (Childcare) Financial Report
The Independent Auditor has also completed its audit of the City’s Child Development Program.

For the fiscal year ending June 30, 2024, the Child Development Program recorded revenues of $4.36 million, supporting expenditures of $3.73 million. The program ended the year with a fund balance of $1.24 million. The audit report provides an unqualified opinion and includes no findings or recommendations. (Attachment 5)
FISCAL IMPACT:

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
No fiscal impact occurs by the City Council’s acceptance of these reports. The fiscal year 2023- 24 Annual Comprehensive Financial Report and related reports are presented as the actual results of the City and related entities’ financial activities for the year.

RECOMMENDED ACTION:

ATTACHMENTS:

1. FY 2023-24 Annual Comprehensive Financial Report

2. FY 2023-24 Memorandum of Internal Controls

3. FY 2023-24 Required Communications

4. FY 2023-24 Child Development Program Financial Report

5. FY 2023-24 Draft Gann Appropriations Limit

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDING JUNE 30, 2024
City Hall, San Rafael, California

SAN RAFAEL

THE CITY WITH A MISSION

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2024
City of San Rafael, California
1400 Fifth Avenue
San Rafael, California 94901
Prepared by the Finance Department of the City of San Rafael

Loch Lomond Marina, San Rafael

INTRODUCTORY SECTION

CITY OF SAN RAFAEL, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2024
Table of Contents

INTRODUCTORY SECTION

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

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

Government-wide Financial Statements:

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

Major Governmental Funds:

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

Statement of Net Position .......................................................................................................... 34 Statement of Revenues, Expenses, and Changes in Fund Net Position .................................... 35 Statement of Cash Flows ........................................................................................................... 36 i

CITY OF SAN RAFAEL, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2024
Table of Contents
FINANCIAL SECTION (Continued)
Fiduciary Funds:

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

Schedule of the City’s Proportionate Share of the Net Pension Liability ..................................... 97 Schedule of Contributions – Defined Benefit Pension Plan ......................................................... 98 Schedule of Changes in Net OPEB Liability and Related Ratios ............................................... 108 Schedule of Contributions – OPEB ............................................................................................ 110 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Budgetary Basis
General Fund ........................................................................................................................... 120 Traffic and Housing Mitigation Special Revenue Fund .......................................................... 121 Gas Tax Special Revenue Fund ............................................................................................... 122 Supplementary Information:

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Budgetary Basis
Essential Facilities Capital Projects Fund ................................................................................ 124 Non-major Governmental Funds:

Combining Balance Sheets ......................................................................................................... 128 Combining Statements of Revenues, Expenditures, and Changes in Fund Balance ................................................................................................................... 132

Budgeted Non-Major Governmental Funds:

Combining Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...................................................................... 136

CITY OF SAN RAFAEL, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2024
Table of Contents
FINANCIAL SECTION (Continued)
Internal Service Funds:

Combining Statements of Net Position ....................................................................................... 146 Combining Statements of Revenues, Expenses and Changes in Fund Net Position ................... 148 Combining Statements of Cash Flows ........................................................................................ 150

STATISTICAL SECTION
Financial Trends:

Net Position by Component – Last Ten Fiscal Years ....................................................................... 156 Changes in Net Position – Last Ten Fiscal Years ............................................................................. 158 Fund Balances of Governmental Funds – Last Ten Fiscal Years ..................................................... 162 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .................................... 164 Revenue Capacity:

Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ...................... 166 Property Tax Rates – All Overlapping Governments – Last Ten Fiscal Years ................................ 167 Property Tax Rates – Direct & Overlapping Governments – Last Ten Fiscal Years (Rate Per $100 of Assessed Value) .......................................................... 168 Principal Property Tax Payers – Current Year and Nine Years Ago ................................................ 169 Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................... 170 Debt Capacity:

Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................... 171 Computation of Direct and Overlapping Debt .................................................................................. 172 Computation of Legal Bonded Debt Margin .................................................................................... 173 Revenue Bond Coverage Parking Facility – Last Ten Fiscal Years ................................................. 174 iii

CITY OF SAN RAFAEL, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2024
Table of Contents
STATISTICAL SECTION (Continued)
Demographic and Economic Information:

Demographic and Economic Statistics – Last Ten Calendar Years .................................................. 175 Principal Employers – Last Ten Calendar Years .............................................................................. 176 Operating Information:

Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ................................................................................................................. 179 Operating Indicators by Function/Program – Last Ten Fiscal Years ................................................ 180 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ............................................ 182 iv
Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati , Councilmember • Rachel Kertz, Councilmember November 4, 2024
Honorable Mayor, Members of the City Council and Residents of San Rafael:

The Annual Comprehensive Financial Report (“Annual Report”) of the City of San Rafael (“City”) for the year ended June 30, 2024, is hereby submitted as required by local ordinances, state statutes and bond covenants. This financial report has been prepared in conformance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB) and includes the report of the independent certified public accounting firm, Maze and Associates Accountancy Corporation, which has issued an unmodified, or “clean” opinion on the City’s financial statements for the fiscal year ended June 30, 2024.

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

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

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

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

3. Statistical section, which is unaudited, includes selected financial and demographic information, presented on a multi-year basis. Generally, ten-year data is presented for expenditures, revenues, assessed valuation for local properties and construction activity. v
CITY OF SAN RAFAEL J 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 J CITYOFSANRAFAEL.ORG Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati , Councilmember • Rachel Kertz, Councilmember REPORTING ENTITY – PROFILE OF THE GOVERNMENT
The City of San Rafael is located 17 miles north of San Francisco in Marin County. Protected by its Mediterranean like setting along the shores of the San Francisco Bay, the City enjoys a mild climate year-round. As the County seat, San Rafael is considered the commercial, financial, cultural and civic hub of Marin County. Abundant recreational facilities are available in and around the City. The City’s park and recreational resources include 24 city parks, 393 acres of developed parkland, city and county open space, and China Camp State Park. San Rafael is close to other attractions, including the Golden Gate Bridge, Muir Woods, Point Reyes National Seashore, Mount Tamalpais, multiple state parks, San Francisco, Oakland and the Sonoma and Napa wine country.

In 1874, the City became the first incorporated city in the county, later becoming a charter city in 1913 by vote of City residents. The City Council comprises five members; four are elected by district to four-year terms while the mayor is elected at-large to a four-year term. The City’s land area is 22 square miles, including seventeen square miles of land and 5 of water and tidelands. San Rafael's population on January 1, 2024, was 59,585.

Downtown San Rafael is the location of many community events, including Second Friday Art Walks, Mill Valley Film Festival, West End Block Party, Thursday Night Farmer’s Market, Porchfest, and is one of only 14 designated Cultural Arts Districts in the State of California. San Rafael is also the heart of the County’s cultural activities with venues such as the Marin Center, which presents numerous ballets, concerts, speaking engagements as well as the award-winning Marin County Fair; the Falkirk Cultural Center, providing art exhibits and children's programming; the Christopher B.

Smith Film Center, and a host of other diverse dining and entertainment venues.

The City provides a full range of municipal services required by statute or charter, namely: police and fire protection, construction and maintenance of streets, parks, storm drains and other infrastructure, recreation, childcare, permits, planning, code enforcement, and a library system serving three locations. The City performed certain infrastructure construction and economic development activities through a separate Redevelopment Agency until its dissolution on February 1, 2012. The City of San Rafael accepted the role of Successor Agency to the Redevelopment Agency per Council action on January 3, 2012, and now conducts its economic development activities with funding from its General Fund.

The City and California Municipal Finance Authority compose the San Rafael Joint Powers Financing Authority, originally established by the City and former Redevelopment Agency for the purpose of financing redevelopment and other projects. The San Rafael Sanitation District is a discretely presented component unit of the City and is presented independent of City financial information. For a further explanation of these entities, refer to Note 1 – Summary of Significant Accounting Policies in the Financial Section of the Annual Report.
vi
CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati , Councilmember • Rachel Kertz, Councilmember The City participates in various organizations through formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these agencies exercise full powers and authorities within the scope of the related Joint Powers Agreement including the preparation of annual budgets, accountability for all funds, and the power to make and execute contracts. Obligations and liabilities of the separate entities are not those of the City. For a further explanation of these separate entities, refer to Note 12 – Jointly Governed Organizations in the Annual Report.

Significantly, in 2023, the City Council adopted a set of two-year Goals, Objectives, and Strategic Priorities covering fiscal years 2023-24 and 2024-25 and include the following policy focus areas:
• Economic Growth
• Sustainability, Climate Change, and Disaster Preparedness • Diversity, Equity, Inclusion, and Belonging
• Housing and Homelessness
The programs, projects, and initiatives supporting these strategic goals will inform ongoing investment of city resources in the near term.

ECONOMIC FACTORS
The City has a diversified economic base, which includes an assortment of high-tech, healthcare, automotive, financial, service-based, entertainment and industrial businesses. Downtown San Rafael provides a mix of restaurants, retail shops and financial institutions. The City’s varied economic base is reflected in its property tax base, which is 75% residential, 20% commercial, 2% industrial, and 3% unsecured and others. The top 25 sales tax producers provide about half of overall sales tax revenues.

The overall economy continues to hold steady while facing headwinds of tightening economic policy. Inflation remains elevated but has eased from the highs of the last two years, with key sectors such as housing, healthcare, and services keeping inflationary pressure elevated. Where economists were previously predicting a recession, evidence is beginning to suggest milder adverse economic impacts in response to monetary policy.

Locally, Marin County is showing signs of slowing economic activity following the post-pandemic recovery. Although Marin County has a stable economic foundation, challenges remain. The housing market will remain a key issue as the high cost of living will continue to make it difficult for many residents to afford homes and incremental increases in housing supply to combat the issue will take time to materialize.
vii
CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati , Councilmember • Rachel Kertz, Councilmember Economic Data
The following is a sample of economic attributes that make San Rafael an exceptional place to live and work.
• Economic development organizations in San Rafael include the San Rafael Chamber of Commerce, Hispanic Chamber of Commerce, Downtown Business Improvement District, and the Marin Economic Forum.
• Marin County’s top employers include Kaiser Permanente, the County of Marin, the City of San Rafael, Marin Independent Journal, YMCA San Francisco, Managed Health Network, Wells Fargo, Community Action Marin, and BioMarin.
• Major shopping areas, as measured in available retail square footage, include the Downtown corridor (938,000 aggregate), Northgate Mall (725,000), Montecito Center (130,000) and Northgate One (113,900).
• The top three sales tax categories during the fiscal year ended June 30, 2024, for San Rafael were: 1. Autos and Transportation (29%), 2. State and County Pools, which mainly reflects ecommerce activity (21%), and 3. Building and Construction (18%). • Several hotels and motels support tourism activity, led by a combined 471 rooms in the Embassy Suites and Four Points Sheraton. Citywide, the total number of hotel rooms is 927.

The Four Points Sheraton was recently sold for $38 million and is slated for a significant rebranding and upgrade. In addition, a downtown AC Marriot recently opened its doors providing 140-rooms and a roof-top bar/lounge.
• Establishing and maintaining affordable residential housing for sale and lease continues to be a challenge both in San Rafael and throughout Marin County. The median rent for an apartment in San Rafael is $3,423. The median home value in San Rafael is $1,330,333. viii
CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati , Councilmember • Rachel Kertz, Councilmember Recent growth and economic vibrancy:
• As mentioned above, the City is enjoying a boost in development of hotel rooms thanks to a new AC Marriott Hotel located in the heart of our Downtown as well as a two million dollar investment to update the Four Points Sheraton, including design upgrades to the lobby area, dining areas, and restrooms.
• Development activity continues to show good momentum, primarily in the area of multifamily housing project planning applications. Plans were recently approved for the construction of a new state licensed residential care facility for the elderly (RCFE) containing 155 senior independent and assisted living units, and 28 secured memory care units at 1515 Fourth Street. The development represents a catalytic investment into the downtown area. • The City is processing an application to redevelop the Northgate Mall which consists of a comprehensive redevelopment of the existing mall into an open-air “main street experience,” surrounded by mixed-use development of retail and up to 1,422 residences.

The Project proposes to reduce the existing commercial retail from 775,677 sq. ft. to 225,100 square feet and construct high-density multifamily residential buildings in the form of townhome units and apartment buildings ranging in height from two to seven stories.
• The City has received an SB 330 application to develop an 8-story multifamily residential building supporting 213 residences, with ancillary uses on the ground floor available to residents at 930 Irwin Street. The project includes the demolition of three existing commercial structures and the merger of three lots.
• The City has adopted its first ever citywide Economic Development Strategic Plan in early 2023. The plan includes detailed actionable tasks that provide measurable benefits and value driving enhanced economic vitality.
• The Business Improvement District sponsors several community engagement programs including block parties and business attraction activities that draw foot traffic to our downtown. Also, the City welcomed back the Thursday Night Downtown Farmers Market in 2023 and 2024.

FINANCIAL INFORMATION
The City's management is responsible for establishing and maintaining internal controls to ensure that the City's assets are adequately protected from loss, theft or misuse. In addition, management controls ensure that proper accounting data is collected so as to prepare reports in conformance with generally accepted accounting principles.
ix
CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived. All internal control evaluations occur within the above framework. It is management's belief that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance that financial transactions are properly recorded.

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

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

ACKNOWLEDGMENTS
The preparation of this City-wide document would not have been possible without the assistance of each of the City's departments. In addition, Finance support staff Kate Llamas, Whitney Zimmerman, Rayanne Lulay, Damien Oyobio, and Finance Manager Shawn Plate, with oversight by Accounting Manager Van Bach and Finance Director Paul Navazio were key to the timely issuance of this report.

We believe this document meets the Government Finance Officers Association's (GFOA) Certificate of Achievement for Excellence in Financial Reporting requirements and will be submitting it to the GFOA to determine its eligibility. If accepted, this will mark the twelfth consecutive year for which the City received the award.

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

Respectfully submitted,
City Manager Finance Dire
CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG Kate Colin, Mayor• Eli Hill, Vice Mayor• Maribeth Bushey, Councilmember • Maika Llorens Gulati , Councilmember • Rachel Kertz, Councilmember x
~ or

MISSION STATEMENT
The Mission of the City of San Rafael is to enhance the quality of life and to provide for a safe, healthy, prosperous and livable environment in partnership with the community.

VISION STATEMENT
Our vision for San Rafael is to be a vibrant economic and cultural center reflective of our diversity, with unique and distinct neighborhoods in a beautiful natural environment, sustained by active and informed residents and a responsible innovative local government.

January 1996
xi

SAN RAFAEL

THE CITY WITH A MISSION
City Council and Staff
As of November 4, 2024
City Council
Kate Colin, Mayor
Eli Hill, Vice Mayor
Maribeth Bushey, Councilmember
Maika Llorens Gulati, Councilmember
Rachel Kertz, Councilmember
Elected Officials
Rob Epstein, City Attorney
Lindsay Lara, City Clerk
Executive Team
Cristine Alilovich, City Manager
Angela Robinson-Piñon, Assistant City Manager
John Stefanski, Assistant City Manager
David Spiller, Chief of Police
Abraham Roman, Fire Chief
April Miller, Public Works Director
Micah Hinkle, Community & Economic Development Director Catherine Quffa, Library & Recreation Director
Sean Mooney, Director of Digital Service & Open Government Paul Navazio, Finance Director
Marissa Sanchez, Human Resources Director
xii

SAN RAFAEL

THE CITY WITH A MISSION

ORGANIZATIONAL CHART
City Clerk
Lindsay Lara
City Attorney
Rob Epstein
Boards &
Commissions
Volunteer and
Sustainability
Programs
Cory Bytof
Finance
Paul Navazio
Parking
Services
Jim Myhers
Police
Department
Dave Spiller
Fire Department
Abraham Roman
Library and
Recreation
Catherine Quffa
Public Works
April Miller
Digital Service and
Open Government
Sean Mooney
Community and
Economic Development
Micah Hinkle
Emergency
Management
Quinn
Gardner
Human Resources
Marissa Sanchez
Assistant City Manager
John Stefanski
Assistant City Manager
Angela Robinson Piñon
Mayor
& City Council
Kate Colin
Maribeth Bushey
Rachel Kertz
Eli Hill
Maika Llorens Gulati
City Manager
Cristine
Alilovich
Electorate
xiii
~SAN RAFAEL

THE CITY WITH A MISSION
xiv
.,
Petaluma O
cit
Greater San Francisco
Bay Area
5 0 5 10 15 Miles
~~~~iiiiiiiiiiiiiii----~!!!'!!"!!!
Sa~ O Francisc;
South S
Franc!
Napa
- 0

LOCATION MAP
0 • Vacaville
r
0 Concord
Hayward
0 •
/ fremont /
0 San Jose
0 Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Rafael
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
xv
e

Sun Valley, San Rafael

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of San Rafael, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of San Rafael (City), California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
, [email protected]
w mazeassociates.com
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. 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.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

2 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other required supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exits, we are required to describe it in our report.
3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 4, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Pleasant Hill, California
November 4, 2024
4 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
This analysis of the City of San Rafael’s (City) financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2024. Please read it in conjunction with the basic financial statements and the accompanying notes to those basic financial statements.

FINANCIAL HIGHLIGHTS
Government-wide:
• Net Position – The assets and deferred outflows of the City exceeded its liabilities and deferred inflows as of June 30, 2024, by $321.5 million.
• Activities – During the fiscal year the City’s total revenues of $150.4 million were greater than expenses of $121.2 million for governmental and business-type activities. • Changes in Net Position – The City’s total net position increased by $29.2 million in fiscal year 2023-2024 as compared to the net position of the previous year. Net position of governmental activities increased by $29.3 million, while net position of the business-type activities decreased by $98 thousand.

Fund Level:
• Governmental Funds – As of the close of fiscal year 2023-2024, the City’s governmental funds reported combined ending fund balances of $93.2 million, an increase of $14.7 million primarily due to outperforming revenues as well as savings against expenditure budgets in the general fund for a total $13.0 million favorable variance as compared to the adjusted budget. Of this total amount, $58 thousand is nonspendable, $48.4 million is restricted, $18.0 million is committed, $21.0 million is assigned, and $5.7 million is unassigned. • Governmental fund revenues totaled $145.0 million, a decrease of $2.5 million from the those of the previous fiscal year. The decrease is mainly a result of the $12.0 million decline in intergovernmental revenues as major projects were completed during the year (including the Third Street Rehabilitation project) offset by a $3.3 million increase in use of money and properties due to the impact of interest rate fluctuations on bond markets, and general year-over-year increases in other revenue items. • Governmental fund expenditures decreased by $2.4 million to $136.3 million, from $138.7 million in the prior year. The decrease is primarily the result of the large project expenditures incurred in the prior year related to capital projects, most notably the Third Street Rehabilitation project, which were completed during the fiscal year.
• Enterprise fund net position increased $106 thousand to $10.9 million as the City’s parking program revenues remained largely static when compared with the prior year while expenses continued to increase.

OVERVIEW OF FINANCIAL STATEMENTS
The Annual Comprehensive Financial Report is composed of the following:

1. Introductory section, which includes the Transmittal Letter and general information

2. Management’s Discussion and Analysis (this part)

3. Basic Financial Statements, which include the Government-wide and the Fund financial statements, including Fiduciary Funds, along with the Notes to these financial statements

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

5. Statistical Information
5 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which have three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Basic Financial Statements.

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

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

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

The Statement of Net Position and the Statement of Activities and Changes in Net Position report information about the City as a whole. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account, regardless of when cash is received or paid.

The Statement of Net Position presents information on all the City’s assets, deferred outflows/inflows of resources, and liabilities, with the difference reported as net position. Over time, increases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

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

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

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

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

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

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

The government-wide financial statements can be found on pages 23 through 25 of this report. 6 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
Fund Financial Statements and Major Component Unit Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City are divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

The fund financial statements provide detailed information about each of the City’s most significant funds, called major funds. Each major fund is presented individually with all non-major funds summarized and presented in a single column. Further detail on the non-major funds is presented on pages 128 through 143 of this report.

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

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

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

Each major fund is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. The City’s four major funds are: the General Fund, Traffic and Housing Mitigation, Gas Tax and Essential Facilities Capital Projects. Data from the other twentyfive governmental funds are combined into a single, aggregated presentation. The basic governmental fund financial statements can be found on pages 28 through 31 of this report. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements on pages 128 through 143 of this report.

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

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

The proprietary fund financial statements can be found on pages 34 through 36 of this report. 7 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The City acts as an agent on behalf of others, holding amounts collected, and disbursing them as directed or required. The City’s fiduciary activities are reported in the separate Statements of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds include a private purpose trust fund to account for activities of the City of San Rafael Successor Agency and a custodial fund that accounts for resources held by the City in a custodial capacity for the Pt. San Pedro Road Assessment District. Information about the fiduciary funds can be found on pages 38 through 39 of this report.

Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 41 through 95 of this report.

Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. One section includes budgetary comparison statements for the General Fund and major funds (general, gas tax, and traffic and housing mitigation). The other section includes schedules of funding progress for the Marin County Employees’ Retirement System and the City’s OPEB plan. All budgeted positions that are filled by either full-time or permanent part-time employees (working seventy-five percent of full-time equivalent) are eligible to participate in the system and the OPEB plan. Required supplementary information can be found on pages 97 through 122 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
Net position measures the difference between (a) assets and deferred outflows of resources and (b) liabilities and deferred inflows of resources. During this fiscal year, the net position of the City was $310.8 million from Governmental Activities and $10.7 million from Business-type Activities, for a total of $321.5 million. This represents an increase of $29.2 million from the prior year’s net position.

8 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2024 and 2023:

Current and other governmental assets increased by $10 million mainly due to overall results of revenues outpacing expenses for the year increasing cash and investment balances. The $8.1 million increase in capital assets reflects project-to-date activity for major infrastructure improvements exceeding depreciation for the year. The decrease of $6.8 million in deferred outflows is primarily a result of the impact of the amortization of pension and OPEB related outflows recognized into pension expense in the current year. Noncurrent governmental liabilities decreased by $12 million mainly as a result of the decrease in Pension and OPEB liabilities of $8 million as well as the paydown of long-term debt. Deferred inflows decreased by $5.3 million mainly as a result of the amortization of Pension and OPEB inflows in the current year.

The net position in business-type activities reflects the fiscal activity of the Parking Services program and decreased by $98 thousand from the previous year as revenues stagnated after a strong post-pandemic recovery and expenses, which are mainly personnel related, continued to increase. Current and other assets decreased by $227 million due to a decline in cash and receivables as operations slowed. Noncurrent liabilities decreased by $703 thousand mainly due to a reduction in net pension and OPEB liabilities.

At June 30, 2024, the largest portion of total net position in the amount of $279.9 million consisted of the City’s investment in capital assets net of related debt. This component represents the total amount of funds required to acquire capital assets less any related debt used for such acquisition that is still outstanding. The City uses these assets to provide services to residents. The capital assets of the City are not sources of income for repayment of debt as most assets are not revenue generating and generally are not liquidated to repay debt. Therefore, debt service payments are funded from other sources available to the City.

Net investment in capital assets 268,520 259,204 9,316 11,354 11,454 (100) Restricted 48,596 46,773 1,823 0
Unrestricted (6,281) (24,466) 18,185 (651) (653) 2
Total net position $310,835 $281,511 $29,324 $10,703 $10,801 ($98) Governmental Activities Business-Type Activities
Summary of Net Position
(in thousands)
9 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
A portion of the City's total net position, $48.6 million, is subject to external restrictions, and their use is determined by those restrictions whether legal or by covenant. In addition, the unrestricted negative $6.9 million represents the extent to which the net investment in capital assets and restricted net position exceed total net assets.

6/30/2024 6/30/2023
Invested in Capital Assets (net) $279,874 $270,658 $9,216 Restricted 48,596 46,773 1,823
Unrestricted (25,119) (6,932) 18,187
Total Net Position: $321,538 $292,312 $29,226
Increase/
(Decrease)
Summary of Net Position
(in thousands)
10 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
Statement of Activities - Governmental
The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ended June 30, 2024 and 2023:

Increase
2024 2023 (Decrease)

REVENUES
Program revenues:

Charges for services $23,170 $20,735 $2,435
Operating grants and contributions 6,531 6,764 (233)
Capital grants and contributions 8,181 18,438 (10,257)
Total program revenues 37,882 45,937 (8,055)
General revenues:

Property taxes 35,636 33,023 2,613
Sales taxes 44,554 45,633 (1,079)
Paramedic tax 5,316 5,224 92
Transient occupancy tax 3,593 3,396 197
Franchise tax 4,582 4,425 157
Business license tax 2,792 2,584 208
Other taxes 2,937 2,975 (38)
Investment earnings 5,284 1,709 3,575
Gain from sale of capital assets 42 42
Miscellaneous 3,241 3,233 8
Total general revenues 107,977 102,202 5,775
TOTAL REVENUES 145,859 148,139 (2,280)

EXPENSES
General government 14,902 11,163 3,739
Public safety 57,400 49,904 7,496
Public works and parks 24,392 23,354 1,038
Community/economic development 6,043 4,437 1,606
Culture and recreation 12,724 10,723 2,001
Interest on long-term debt 1,656 1,793 (137)
TOTAL EXPENSES 117,117 101,374 15,743

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 28,742 46,765 (18,023)
Transfers in 582 521 61.00
Total Other Financing Sources (Uses) 582 521 61
Net Change in Net Position 29,324 47,286 (17,962)
Beginning Net Position 281,511 234,225 47,286
Ending Net Position, June 30 $310,835 $281,511 $29,324
Governmental Activities
Summary of Changes in Net Position
(in thousands)
11 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
The City’s governmental activities net position increased by $29.3 million during fiscal year 2023-2024. Total revenues decreased by roughly $2.3 million mainly caused by the $8.1 million decline in program revenues. Within program revenues, capital grants and contributions declined by $10.3 million, which was mainly related to the Third Street Rehabilitation project which was completed during the year. This was partially offset by an increase in charges for services that was mainly driven by overall fee increases. Within the general revenues category, property taxes increased $2.6 following the hot housing market of previous years whereas sales taxes declined by about $1 million.

The decline in sales tax revenues is mainly related to the fourth quarter of fiscal 2024 where activity began to slow from the economic tightening to combat inflation. The large increase in investment earnings was a result of the increase in interest rates, leading to much greater interest income than the prior year and also recording large unrealized gains as the City recouped the remainder of the unrealized loss recorded in fiscal 2022.

Overall operating expenses reflect an increase of $15.7 million for the year mainly resulting from Pension related adjustments. Pension related adjustments had the impact of reducing expenses as compared to the fund financial statements by $4.1 million for fiscal 2024 whereas the same entries reduced expenses as compared to the fund financial statements by $16.6 million in fiscal 2023. The remainder of the increase is the result of annual increases in personnel costs.

The following graph shows governmental revenues by source:
12 Revenues by Source
Governmental Activities
Taxes, 68.15%
Capital grants and
contributions, 5.61% Charges for services,

15.89%
,,-Operating grants and
contributions, 4.48%
Miscellaneous, 5.87%

CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
Total expenses for governmental activities were $115.4 million (excluding interest on long-term debt of $1.7 million).

Program revenues offset total expenses as follows:
• Those who directly benefited from programs contributed $23.2 million in charges for services. • A total of $14.7 million in operating and capital projects were funded by outside agencies through operating grants, capital grants, and contributions.

As a result, total expenses that were funded by tax revenues, investment income, other general revenues and fund balance were $79.2 million.

Functional expenses for the year ended June 30, 2024, were as follows:

Function Amount Percent of Total
General government $14,902 12.7%
Public safety 57,400 49.0%
Public works and parks 24,392 20.8%
Community development 6,043 5.2%
Culture and recreation 12,725 10.9%
Interest on debt 1,656 1.4%
Total expenses $117,118 100%
Expenses by Function
(in thousands)
13 $70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$-
General Government
Expenses and Program Revenues
Governmental Activities
(in thousands)
Public Safety Public Works and
Parks
Community
Development
■ Program Revenues ■ Expenses
Culture and
Recreation

CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
Statement of Activities – Business-Type

The net position for business-type activities decreased from the prior year by $98 thousand as operations slowed slightly and whereas the increased program revenues from the prior year mostly held, expenses continued to increase.

Parking services is the City’s only business-type activity with income derived from program revenues of $4.6 million.

Program revenues include parking meter coin income of $1.5 million and parking garage hourly and monthly parking income of $0.9 million. Revenues also include parking and non-vehicle code fines totaling $2.2 million. Total expenses for parking services were $4.1 million and transfers out to general fund and non-major governmental fund for support totaled $582 thousand during the fiscal year 2023-2024.

Increase
2024 2023 (Decrease)
Revenues
Program revenues:

Charges for services $4,553 $4,682 ($129)
Total program revenues 4,553 4,682 (129)
General revenues:

Investment Income 9 8 1
Total general revenues 9 8 1
TOTAL REVENUES 4,562 4,690 (128)
Expenses
General government 4,078 3,436 642
TOTAL EXPENSES 4,078 3,436 642

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 484 1,254 (770)

OTHER FINANCING SOURCES (USES)
Transfers out (582) (521) (61)
Total Other Financing sources (uses) (582) (521) (61)
Net Change in Net Position (98) 733 (831)
Net Position, Beginning 10,801 10,068 733
Net Position, Ending $10,703 10,801 ($98)
Summary of Changes in Net Position
For the periods ended June 30, 2024 and 2023 (in thousands) Business-Type Activities
14 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024

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

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

As of June 30, 2024, the City reported a combined ending fund balance of $93.2 million for all governmental funds (an increase of $14.7 million from the prior year): $58 thousand is non-spendable, $48.4 million is restricted, $18.0 million is committed, $21.0 million is assigned, and $5.7 million is unassigned.

General Fund – The General Fund is the primary operating fund of the City.

General Fund – The fund balance of the General Fund as of June 30, 2024, was $36.4 million (an increase of $8.6 million from the prior year balance): $54 thousand is non-spendable, $9.8 million is committed, $20.8 million is assigned and $5.7 million is unassigned. The committed and unrestricted portions of the balance include $9.8 million and $4.9 million for emergency and cash flow needs, respectively.

The original adopted General Fund budget projected total revenue of $100.8 million and transfers-in of $1.8 million for total resources of $102.6 million. This budget appropriated expenditures of $100.2 million and transfers-out of $2.2 million for total appropriations of $102.4 million. Transfers-in were later increased by $300 thousand to account for the partial reimbursement of SAFE Team costs by the Cannabis Fund. Transfers-out were increased by $4.9 million mainly for project support of the Pickleweed Park Field Renovation Project.

Actual revenues, at $104.9 million, exceeded original budgeted revenues by $4.1 million. The increase is largely attributed to investment gains as interest rates increased and the City recouped much of its $2 million unrealized loss incurred in fiscal 2021-2022. Property Tax also outperformed the budget by $1.5 million following the hot housing market of the last three years. These favorable revenue variances were somewhat offset by lower than anticipated reimbursements related to planning support programs. Expenditures of $93.9 million were $6.3 million less than original budgeted expenditures of $100.2 million as the City continued to experience significant personnel savings against vacant positions during the fiscal year. The City expects this trend to subside in the coming fiscal year as new labor agreements were reached with all of the City’s bargaining groups contributing to increased focus on recruitment and retention.

Variances in debt service and issuance of long-term debt line items are the result of lease and subscription agreements entered into during the year for body-worn cameras in the police department and a new permitting system. These agreements are now accounted for as borrowings under new accounting guidance.

15 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
Traffic and Housing Mitigation Fund – The City uses this fund to collect developer contributions to be used for major street improvement and housing infrastructure projects. During the year, the fund balance increased from $5.7 million to $5.9 million. Revenues for the fund can fluctuate significantly year to year as they are mainly a function of development projects undergone during the year and for fiscal 2023-2024 totaled $1.9 million, with additional transfers in of $419 thousand. Capital outlay for the year of $1.7 million was related to a single project, the Grand Avenue Cycle Track, to add bicycle facility on the east side of grand Avenue between Fourth Street and Second Street. The balance in the fund is being held in anticipation of major street projects identified in the General Plan 2040 and other qualifying expenditures.

Gas Tax Fund – The City uses this fund to manage its allocation of State gasoline taxes and local funding for street maintenance projects. Gas tax revenues exceeded expenditures and net transfers by $1.5 million in fiscal year 2023- 2024 resulting in an increase in fund balance from $11.8 million to $13.3 million. The activities for the year were all planned and approved project work.

Expenditures during fiscal year 2023-2024 totaled $10.9 million. In addition to routine street-related maintenance of $1.9 million, major expenditures included $4.9 million for the third street rehabilitation project, $1.2 million for third street safety improvements, and $1.2 million for road repair at Southern Heights and Courtright.

Total revenues of $12.6 million were down about $9.2 million from the prior year mainly due to a reduction in intergovernmental transfers related to the third street rehabilitation project that was completed during the year. State gas tax revenues, on the other hand, saw 11% growth from to prior year to a total of $3.2 million.

Essential Facilities Capital Projects Fund – The City uses this fund to account for major capital improvements to public safety facilities. Activity in the fund has reduced as the initial major projects contemplated in creation of the fund have been completed. During the year $580 thousand was expended for remaining costs related to Fire Stations 54 and 55, as well as the repurposing of City Hall.

Non-major Governmental Funds – The City’s non-major funds are presented in the basic financial statements in the aggregate. At June 30, 2024, non-major funds had a total fund balance of $33.9 million, a $4.4 million increase over that of the previous year. The largest fund balance decrease, $2.7 million, was recorded in the Stormwater Fund as work continues on the San Quentin Pump Station Repair project funded in large part by a prior year transfer in to the fund. The largest fund balance increase, $4.2 million, was recorded in the Capital Projects Fund as $4.2 million in one-time funds were transferred from the general fund to support the Pickleweed Park Field Renovation project during the year which is expected to begin construction in fiscal 2024-2025.

Adopted Budget Revised Budget Actual
Revenues $100,802 $100,802 $104,946
Transfers in 1,827 2,127 2,061
Issuance of long-term debt - - 2,519
Total resources 102,629 102,929 109,526
Expenditures 100,152 $100,166 93,850
Operating transfers out 2,207 2,404 2,405
Capital transfers out - 4,690 4,624
Total uses 102,359 107,260 100,879
Net Results $270 ($4,331) $8,647
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2024 (in thousands)
16 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
Of the ending total non-major fund balances of $33.9 million: $25.6 million (76%) is legally restricted for specific purposes by external funding source providers, $8.2 million (24%) is committed for special purposes by the City Council, $122 thousand (less than 1%) is assigned, and $4 thousand (less than 1%) is nonspendable. Additional information about these aggregated non-major funds is presented in the combining statements which immediately follow the required supplementary information.

Proprietary Funds
The City’s proprietary funds are presented in the basic financial statements in a manner similar to that found in the government-wide financial statements, but in more detail. As noted in the Summary of Changes in Net Position – Business-type Activities on page 14, the City’s enterprise fund net position decreased by $98 thousand during the fiscal year. The Parking Services Fund is the City’s sole business-type (Enterprise) activity.

The parking services fund’s operating revenue decreased by $129 thousand in fiscal year 2023-2024 to $4.6 million.

The enterprise fund operating expenses were $4.1 million in fiscal year 2023-2024, an increase of $0.6 million over the prior fiscal year. The decrease in operating revenues comes after a healthy $845 thousand increase in the prior year as the fund began to rebound from slower post-pandemic operating activity. The increase in expenses mainly reflects the standard annual increase in personnel costs, as well as general increases in other operating costs.

The City’s Internal Service Funds are also reported in this Proprietary Fund classification. In fiscal year 2023-2024, the Internal Service Funds comprised of: Building Maintenance, Vehicle Replacement, Equipment Replacement, Employee Benefits, Liability Insurance, Workers’ Compensation, Dental Insurance, Employee Retirement, OPEB/Retiree Medical, Radio Replacement, Telephone Replacement and Sewer Maintenance. The net position of the Internal Service Funds decreased by $782 thousand when compared to the prior year. Net investment in capital assets increased by $1.2 million, while unrestricted fund balance decreased by $1.9 million. The increase in capital assets resulted primarily from vehicle purchases, offset by depreciation of existing capital assets. The decrease in unrestricted fund balance is primarily the result of increased claims and insurance premiums related to the Liability Fund. These expense items have been rising state-wide and have been addressed with the fiscal 2024-2025 budget.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for its governmental activities as of June 30, 2024, amounts to $319.8 million, net of accumulated depreciation of $222.0 million. This investment in capital assets includes land, buildings, improvements, machinery and equipment, infrastructure, right-to-use lease assets, and construction in progress.

Infrastructure assets are items that are normally immovable and of value only to the City such as roads, bridges, streets and sidewalks, drainage systems, lighting systems, and similar items. The addition to the City’s investment in capital assets for the current fiscal year was $18.7 million, offset by accumulated depreciation of $10.6 million.

Additions to capital assets during fiscal year 2023-2024 included:
• Machinery and Equipment: Vehicles totaling $2.2 million • Infrastructure: $14.6 million
• Third Street Rehabilitation - $4.9 million
• San Quentin Pump Station Reconstruction - $2.9 million • Grand Avenue Cycle Track - $1.7 million
• Third Street Safety Improvements - $1.2 million
• Southern Heights-Courtright Road Repair - $1.2 million 17 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
• Rotary Manor Culvert Replacement - $1.0 million
• Other - $1.7 million
• Right-to-use Leased Equipment: $976 thousand
• Body-worn cameras - $549 thousand
• Office equipment - $220 thousand
• Automated license plate readers - $207 thousand
• Right-to-use Subscription Assets: $2.1 million
• Body-worn cameras - $1.4 million
• Permitting software - $524 thousand
• Other - $168 thousand
A comparison of the City’s Capital Assets for the fiscal years ending June 30, 2024 and 2023 is presented below:

Additional information on the City’s capital assets can be found in Note 5 on pages 63 through 65 of this report.

2024 2023
Governmental Activities
Land $84,108 $84,026
Construction in progress 28,785 42,582
Land improvements 10,852 10,852
Buildings and structures 119,722 119,165
Machinery and equipment 23,445 22,016
Infrastructure 264,925 237,123
Intangible right-to-use leased building 5,476 5,476
Intangible right-to-use leased equipment 1,226 258
Intangible right-to-use subscription 3,252 1,559
Less accumulated depreciation (222,034) (211,394)
Subtotal Governmental Activities 319,757 311,663
Business-type Activities
Land 8,621 8,621
Buildings and structures 10,736 10,714
Machinery and equipment 968 1,047
Less accumulated depreciation (5,582) (5,219)
Subtotal Business-type Activities 14,743 15,163
Total Capital Assets $334,500 $326,826
Summary of Capital Assets
(in thousands)
18 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
Debt Administration
The City’s debt obligations were stable year-over-year and reflect payments of principal made during the year. The debt of the former Redevelopment Agency is reported under the Successor Agency, which is presented as a PrivatePurpose Trust Fund on the Statement of Fiduciary Net Position. (See Note 6 of the financial statements for additional information on the debt obligations of the City and Note 16 for additional information on the Successor Agency.) The City’s long-term obligations for the fiscal years ending June 30, 2024 and 2023 were as follows:

2024 2023
Governmental Activity Debt:
2018 Authority Lease Revenue Bond $41,909 $44,852
2010 Taxable Pension Obligation Bonds 1,240 1,805
PG & E City Hall HVAC Retrofit Note Payable 13
PG & E Efficiency Note Payable 381 531
PG & E City Hall Efficiency Note Payable 121 143
Subtotal Governmental Activity Debt 43,651 47,344
Business-Type Activity Debt:

PG & E Parking Lot Lighting Retrofit Note Payable 1
2012 Authority Lease Revenue Refunding Bonds 3,389 3,708 Subtotal Business-Type Activity Debt 3,389 3,709
Total Long-Term Obligations $47,040 $51,053
Summary of Outstanding Long-Term Debt
(in thousands)
19 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
ECONOMIC CLIMATE AND NEXT YEAR’S BUDGET
After navigating through economic shock of both the pandemic and subsequent recovery, the global economy continues to face several issues, inflation being chief among them. As many central banks continue to hold interest rates at elevated levels, economic growth is expected to continue to temper as borrowing becomes more expensive and consumer demand cools. As a result, the International Monetary Fund currently projects somewhat stagnant global growth of 3.2% in 2024, inching forward to 3.3% in 2025.

Nationally, the economic climate also continues to be focused on inflation and corresponding monetary policy surrounding interest rates. Although progress has been made, inflation remains above the Federal Reserve’s 2% target. Consumer demand has remained strong in spite of these economic pressures, however, are showing signs of a pullback, especially with regard to larger ticket items such as housing and automobiles.

In California, national trends are reflected with some unique regional dynamics. The housing market remains particularly constrained as high mortgage rates and low affordability put pressure on the sector, currently buoyed by a reduction in supply. The unemployment rate remains elevated in comparison to the national rate partly owing to job losses in the entertainment and the tech sector, however, continued strength in sectors such as biotech and clean energy as well as innovation in artificial intelligence put the state in a strong position for future economic gains.

Locally, Marin County remains somewhat insulated from more pronounced impacts of the macro environment with an unemployment rate lower than the national average and per capita income among the highest. This provides stability to the local economy, affording the County the ability to maintain stronger consumer demand in the face of mounting economic pressures.

In San Rafael, sales and use tax forecasts show the city beginning to stagnate after its post-pandemic boom with sales taxes forecasted to grow at a modest 1.5% for fiscal 2024-25. The City’s economy remains stable with significant employment in healthcare, education, and public administration and its position as the county’s commercial center.

However, housing affordability, transportation challenges, and the evolving retail landscape present ongoing issues for the city's long-term development.

The City heads into the new fiscal year with a strong balance sheet and large capital projects in the pipeline bolstered by prior year increases to fund balances. However, costs are continuing to rise and certain projects may need to be prioritized to ensure the City does not become overextended.

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

STATEMENT OF NET POSITION AND

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

The Statement of Net Position reports the difference between the City’s total assets and deferred outflows of resources and the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of the City’s net position, by subtracting total liabilities and deferred inflows of resources from total assets and deferred outflows of resources.

The Statement of Net Position summarizes the financial position of all of the City’s Governmental Activities in a single column, and the financial position of all the City’s Business-type Activities in a single column; these columns are followed by a total column which presents the financial position of the entire City.

The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue and Capital Projects Funds. Since the City’s Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund transactions and balances. The City’s Business-type Activities include all its Enterprise Fund activities.

The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which reflect only current assets, current liabilities, deferred outflows/inflows of resources, available revenues, and measurable expenditures.

The Statement of Activities presents the City’s expenses first, listed by program, and follows these with the expenses of its business-type activities. Program revenues - that is, revenues which are generated directly by these programs - are then deducted from program expenses to arrive at the net expense of each governmental and Business-type program. The City’s general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.

Both these Statements include the financial activities of the City and the San Rafael Joint Powers Financing Authority which are legally separate but are considered to be component units of the City because they are controlled by the City, which is financially accountable for their activities. The balances and the activities of the San Rafael Sanitation District, a discretely presented component unit, are included in these statements in a separate column.
21 CITY OF SAN RAFAEL

STATEMENT OF NET POSITION
JUNE 30, 2024
Component
Primary Government Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
ASSETS
Cash and investments available for operations (Note 2) $120,586,304 $435,618 $121,021,922 $50,985,279 Restricted cash and investments (Note 2) 731,527 731,527 Receivables:

Accounts, net 4,839,469 1,082,382 5,921,851 1,777,716
Intergovernmental 10,939,953 10,939,953
Grants 445,822 445,822
Interest 828,351 828,351
Loans (Note 4A) 3,817,319 3,817,319
Long-term receivable from San Rafael Sanitation District (Note 4G) 2,463,069 2,463,069 Leases receivable (Note 4H) 430,566 430,566
Prepaid expenses and others 918,809 918,809 89,235
Capital assets (Note 5):

Nondepreciable 112,892,640 8,620,853 121,513,493 10,744,862 Depreciable, net 206,863,263 6,121,960 212,985,223 54,983,239 Total Assets 465,757,092 16,260,813 482,017,905 118,580,331

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension (Note 9) 58,559,596 1,649,631 60,209,227 Deferred outflows related to OPEB (Note 11) 7,989,765 131,235 8,121,000 Total Deferred Outflows of Resources 66,549,361 1,780,866 68,330,227

LIABILITIES
Accounts payable 8,952,811 130,131 9,082,942 3,931,050
Developer and other deposits payable 453,747 453,747
Interest payable 28,822 28,822
Unearned revenue 566,892 21,474 588,366
Claims payable (Note 13):

Due in one year 3,389,162 3,389,162
Due in more than one year 11,112,700 11,112,700
Compensated absences (Note 1L):

Due in one year 554,312 17,332 571,644
Due in more than one year 3,880,180 121,327 4,001,507
Long-term debt (Note 6):

Due in one year 3,418,106 330,000 3,748,106
Due in more than one year 40,234,018 3,058,653 43,292,671 Lease liabilities (Note 14):

Due in one year 180,734 180,734
Due in more than one year 6,224,657 6,224,657
Subscription liabilities (Note 14):

Due in one year 488,438 488,438
Due in more than one year 1,929,842 1,929,842
2,463,069
Net OPEB liability, due in more than one year (Note 11) 20,513,064 336,936 20,850,000 Net Pension liability, due in more than one year (Note 9) 96,649,584 2,722,631 99,372,215 Total Liabilities 198,548,247 6,767,306 205,315,553 6,394,119

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension (Note 9) 17,135,757 482,716 17,618,473 Deferred inflows related to OPEB (Note 11) 5,391,443 88,557 5,480,000 Deferred inflows related to leases receivable (Note 4H) 395,898 395,898 Total Deferred Inflows of Resources 22,923,098 571,273 23,494,371 NET POSITION (Note 8):

Net investment in capital assets 268,520,108 11,354,160 279,874,268 63,315,799 Restricted for:

Special revenue projects:

Housing and street improvements 21,206,851 21,206,851
Stormwater 3,916,432 3,916,432
Emergency medical services 3,393,029 3,393,029
Other 15,880,908 15,880,908
Capital projects 4,198,948 4,198,948
Total Restricted Net Position 48,596,168 48,596,168
Unrestricted (6,281,168) (651,060) (6,932,228) 48,870,413 Total Net Position $310,835,108 $10,703,100 $321,538,208 $112,186,212 See accompanying notes to financial statements
Long-term payable to the City of San Rafael, due in more than one year (Note 4G) 23 CITY OF SAN RAFAEL

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2024
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary Government
Governmental Activities:

General government $14,901,980 $411,655 $794,798
Public safety 57,399,596 7,365,020 1,504,773
Public works and parks 24,392,108 4,146,897 3,266,716 $6,860,495 Community development 6,043,266 5,757,689 669,681
Culture and recreation 12,725,048 5,488,779 294,639 1,320,781 Interest on long-term debt 1,655,588
Total Governmental Activities 117,117,586 23,170,040 6,530,607 8,181,276 Business-type Activities:

Parking services 4,078,051 4,552,629
Total Business-type Activities 4,078,051 4,552,629
Total Primary Government $121,195,637 $27,722,669 $6,530,607 $8,181,276 Component Unit
San Rafael Sanitation District $15,592,949 $16,657,102 $5,775 $248,116 General revenues:

Taxes:

Property
Sales:

Sales and Use
Measure R quarter-cent sales
Measure E three quarter-cent sales
Paramedic
Transient occupancy
Franchise
Business license
Other
Investment earnings
Gain (loss) from sale of capital assets
Miscellaneous
Transfers (Note 3A)
Total general revenues and transfers
Change in Net Position
Net Position, beginning of year
Net Position, end of year
See accompanying notes to financial statements
24 Component
Primary Government Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
($13,695,527) ($13,695,527)
(48,529,803) (48,529,803)
(10,118,000) (10,118,000)
384,104 384,104
(5,620,849) (5,620,849)
(1,655,588) (1,655,588)
(79,235,663) (79,235,663)
$474,578 474,578
474,578 474,578
(79,235,663) 474,578 (78,761,085)
$1,318,044
35,635,864 35,635,864 2,322,601
25,478,845 25,478,845
4,713,640 4,713,640
14,361,735 14,361,735
5,315,689 5,315,689
3,592,883 3,592,883
4,581,586 4,581,586
2,791,927 2,791,927
2,937,428 2,937,428
5,283,676 9,864 5,293,540 2,201,511
41,673 41,673 (23,561)
3,242,511 3,242,511
582,148 (582,148)
108,559,605 (572,284) 107,987,321 4,500,551
29,323,942 (97,706) 29,226,236 5,818,595
281,511,166 10,800,806 292,311,972 106,367,617
$310,835,108 $10,703,100 $321,538,208 $112,186,212
Net (Expenses) Revenues and Changes in Net Position
25 FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year. Only individual major funds are presented in the Fund Financial Statements, while non-major funds are combined in a single column. Individual non-major funds may be found in the Supplemental Section.

The funds described below were determined to be major funds by the City in fiscal year 2023-2024:

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

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

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

ESSENTIAL FACILITIES CAPITAL PROJECTS FUND
Established to account for major capital improvements to public safety facilities. 27 CITY OF SAN RAFAEL

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2024
Traffic and Essential Other Total
General Housing Facilities Capital Governmental Governmental Fund Mitigation Gas Tax Projects Fund Funds Funds
ASSETS
Cash and investments available for operations (Note 2) $31,135,515 $3,962,771 $12,398,690 $3,754,843 $30,859,329 $82,111,148 Restricted cash and investments (Note 2) 640,129 5,647 85,751 731,527 Receivables:

Accounts 1,969,480 2,857 2,068,095 4,040,432
Intergovernmental 9,141,582 1,372,151 426,220 10,939,953 Grants 4,558 440,264 444,822
Interest 819,164 9,187 828,351
Loans (Note 4A) 786 1,974,817 1,841,716 3,817,319
Leases (Note 4H) 29,796 400,770 430,566
Due from other funds (Note 3B) 394,178 394,178
Prepaids 54,250 3,506 57,756
Total Assets $44,189,438 $5,940,445 $13,770,841 $3,760,490 $36,134,838 $103,796,052

LIABILITIES
Accounts payable $6,178,273 $26,268 $398,012 $167,900 $1,250,120 $8,020,573 Deposits payable 4,000 48,105 52,105
Developer deposits payable 398,007 3,635 401,642
Unearned revenue 566,892 566,892
Total Liabilities 6,580,280 26,268 398,012 167,900 1,868,752 9,041,212

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 1,166,896 1,166,896
Related to leases (Note 4H) 26,986 368,912 395,898
Total Deferred Inflows of Resources 1,193,882 368,912 1,562,794 Fund Balances (Note 8):

Nonspendable 54,250 3,506 57,756
Restricted 5,914,177 13,372,829 3,592,590 25,562,849 48,442,445 Committed 9,837,000 8,209,257 18,046,257
Assigned 20,837,172 121,562 20,958,734
Unassigned 5,686,854 5,686,854
Total Fund Balances 36,415,276 5,914,177 13,372,829 3,592,590 33,897,174 93,192,046 Total Liabilities, Deferred Inflows of Resources
and Fund Balances $44,189,438 $5,940,445 $13,770,841 $3,760,490 $36,134,838 $103,796,052 Special Revenue Funds
See accompanying notes to basic financial statements
28 CITY OF SAN RAFAEL

GOVERNMENTAL FUNDS

BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL

FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES JUNE 30, 2024
Total fund balances reported on the governmental funds balance sheet $93,192,046 Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds because of the following:

Capital assets used in Governmental Activities are not financial resources and, therefore, are not reported in the Governmental Funds. 305,803,161 Internal service funds are used by management to charge the cost of management of 37,183,974
Long-term liabilities, including bonds payable, lease liabilities and subscription liabilities, are not due and payable in the current period and, therefore, are not reported in the Governmental Funds. (51,399,059)
Compensated absences (4,434,492)
Unavailable revenue 1,166,896
Long-term receivable from San Rafael Sanitation District 2,463,069 Deferred outflows related to pension 58,559,596
Net pension liability (96,649,584)
Deferred inflows related to pension (17,135,757)
Deferred outflows related to OPEB 7,989,765
Deferred inflows related to OPEB (5,391,443)
Net OPEB liability (20,513,064)
Net position of governmental activities $310,835,108
building, workers' compensation, employee benefits, insurance, and post-retirement healthcare benefits to individual funds. The assets and liabilities are included in Governmental Activities in the Statement of Net Position.

See accompanying notes to financial statements
29 CITY OF SAN RAFAEL

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2024
Traffic and Essential Other Total
Housing Facilities Capital Governmental Governmental
General Mitigation Gas Tax Projects Fund Funds Funds

REVENUES
Taxes and special assessments $88,564,312 $9,917,552 $98,481,864 Licenses and permits 3,614,566 3,614,566
Fines and forfeitures 259,792 259,792
Use of money and properties 3,377,438 $150,901 $235,085 $68,831 728,915 4,561,170 Intergovernmental 4,830,166 465,000 7,936,247 3,397,468 16,628,881 Charges for services 3,245,323 1,280,962 2,736,113 10,195,691 17,458,089 Other revenue 1,054,355 10,000 1,716,032 1,639 1,266,953 4,048,979 Total Revenues 104,945,952 1,906,863 12,623,477 70,470 25,506,579 145,053,341

EXPENDITURES
Current:

General government 15,483,609 492,392 15,976,001
Public safety 47,275,482 12,582,544 59,858,026
Public works and parks 14,395,860 112,464 3,431,257 1,235,141 19,174,722 Community development 5,514,463 341,815 419,872 6,276,150 Culture and recreation 3,088,241 9,433,062 12,521,303
Capital outlay 2,232,278 1,650,469 7,436,103 580,083 4,690,494 16,589,427 Debt service:

Principal 3,760,071 3,760,071
Interest and fiscal charges 2,100,354 2,100,354
Total Expenditures 93,850,358 2,104,748 10,867,360 580,083 28,853,505 136,256,054

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 11,095,594 (197,885) 1,756,117 (509,613) (3,346,926) 8,797,287

OTHER FINANCING SOURCES (USES)
Issuance of long-term debt (Note 14) 2,518,949 2,518,949 Transfers in (Note 3A) 2,061,406 419,000 850,000 384,188 7,964,518 11,679,112 Transfers out (Note 3A) (7,028,671) (1,069,000) (233,945) (8,331,616) Total Other Financing Sources (Uses) (2,448,316) 419,000 (219,000) 384,188 7,730,573 5,866,445 Net Change in Fund Balances 8,647,278 221,115 1,537,117 (125,425) 4,383,647 14,663,732 FUND BALANCES, BEGINNING OF YEAR 27,767,998 5,693,062 11,835,712 3,718,015 29,513,527 78,528,314 FUND BALANCES, END OF YEAR $36,415,276 $5,914,177 $13,372,829 $3,592,590 $33,897,174 $93,192,046 See accompanying notes to financial statements
Special Revenue Funds
30 CITY OF SAN RAFAEL
Reconciliation of the

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2024
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $14,663,732 Amounts reported for Governmental Activities in the Statement of Activities are different because of the following:

Capital Assets Transactions
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation and amortization expense.

Capital outlay and improvement expenditures are added back to fund balance 17,230,572 Retirement of capital assets is deducted from fund balance (297,908) Depreciation and amortization expense is deducted from fund balance (9,928,910) (Depreciation and amortization expense is net of internal service fund depreciation and amortization of $1,559,814, which has already been allocated to serviced funds).

Long-Term Debt and Lease Liability Proceeds and Payments Governmental funds record proceeds and payments as other financing sources and expenditures.

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

Issuance of long-term debt (leases and subscriptions) (2,518,949) Repayments of long-term debt principal 3,162,714
Amortized bond premium expense is added back to fund balance 507,944 Repayments of lease principal 149,051
Repayments of subscription principal 448,306
Accrual of Non-Current Items
The amount below included in the Statement of Activities does not require the use of current financial Compensated absences (204,347)
Unavailable revenue 19,079
Long-term receivable from San Rafael Sanitation District 460,125 Net Pension (Asset) Liability Transactions
Governmental funds record pension expense as it is paid. However, in the Statement of Activities those costs are reversed as deferred outflows/(inflows) and an increase/(decrease) in net pension (asset) liability. 4,120,240 Net OPEB Liability Transactions
Governmental funds record OPEB expense as it is paid. However, in the Statement of Activities those costs are reversed as deferred outflows/(inflows) and an increase/(decrease) in net OPEB liability. 2,294,646 Allocation of Internal Service Fund Activities
Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of the internal service fund is reported with governmental activities. (782,353) Change in Net Position of Governmental Activities $29,323,942 resources and therefore is not reported as revenue or expenditures in governmental funds (net change):

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

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

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

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

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2024
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds
ASSETS
Current Assets:

Cash and investments available for operations (Note 2) $435,618 $38,475,156 Receivable:

Accounts, net 1,082,382 799,037
Grants 1,000
Prepaid expense 861,053
Total Current Assets 1,518,000 40,136,246
Noncurrent Assets:

Capital assets (Note 5):

Nondepreciable 8,620,853 346,448
Depreciable, net 6,121,960 13,606,294
Total Noncurrent Assets 14,742,813 13,952,742
Total Assets 16,260,813 54,088,988

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension (Note 9) 1,649,631 Deferred outflows related to OPEB (Note 11) 131,235
Total Deferred Outflows of Resources 1,780,866

LIABILITIES
Current Liabilities:

Accounts payable 130,131 932,238
Interest payable 28,822
Unearned revenue 21,474
Compensated absences, due in one year (Note 1L) 17,332
Claims payable, due in one year (Note 13) 3,389,162
Long-term debt, due in one year (Note 6) 330,000 21,755 Subscription liabilities, due in one year (Note 14) 271,026 Due to other funds (Note 3B) 394,178
Total Current Liabilities 527,759 5,008,359
Noncurrent Liabilities:

Compensated absences (Note 1L) 121,327
Claims payable (Note 13) 11,112,700
Long-term debt (Note 6) 3,058,653 99,708
Net OPEB liability (Note 11) 336,936
Net pension liability (Note 9) 2,722,631
Subscription liabilities (Note 14) 684,247
Total Noncurrent Liabilities 6,239,547 11,896,655
Total Liabilities 6,767,306 16,905,014

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension (Note 9) 482,716
Deferred inflows related to OPEB (Note 11) 88,557
Total Deferred Inflows of Resources 571,273
NET POSITION (Note 8):

Net investment in capital assets 11,354,160 12,876,006
Unrestricted (651,060) 24,307,968
Total Net Position $10,703,100 $37,183,974
See accompanying notes to financial statements
34 CITY OF SAN RAFAEL

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2024
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds

OPERATING REVENUES
Charges for current services $2,339,239 $18,949,459
Other operating revenues 2,213,390 1,345,450
Total Operating Revenues 4,552,629 20,294,909

OPERATING EXPENSES
Personnel 1,854,895 4,727,473
Insurance premiums and claims 7,986,095
Maintenance and repairs 114,046 150,632
Depreciation and amortization expense (Note 5) 442,044 1,559,814 General and administrative 1,535,278 4,629,993
Total Operating Expenses 3,946,263 19,054,007
Operating Income 606,366 1,240,902

NONOPERATING REVENUES (EXPENSES)
Investment income 9,864 745,287
Miscellaneous revenue 10,000
Interest expense (131,788) (63,178)
Gain from sale of capital assets 49,984
Total Nonoperating Revenues (Expenses) (121,924) 742,093 Income Before Transfers 484,442 1,982,995

TRANSFERS
Transfers out (Note 3A) (582,148) (2,765,348)
Net transfers (582,148) (2,765,348)
Change in Net Position (97,706) (782,353)
NET POSITION, BEGINNING OF YEAR 10,800,806 37,966,327
NET POSITION, END OF YEAR $10,703,100 $37,183,974
See accompanying notes to financial statements
35 CITY OF SAN RAFAEL

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2024
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $4,634,826 $18,149,422
Cash payments to suppliers for goods and services (1,632,159) (17,402,309) Cash payments to employees for salaries and benefits (2,098,324) (2,088,662) Other revenues 1,345,450
Cash Flows from Operating Activities 904,343 3,901

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Miscellaneous revenues 10,000
Interfund revenues 394,178
Interfund payments (582,148) (2,765,348)
Cash Flows from Noncapital
Financing Activities (582,148) (2,361,170)

CASH FLOWS FROM CAPITAL

AND RELATED FINANCING ACTIVITIES
Principal payments on revenue bonds and note payable (320,489) (21,755) Principal payments on subscription liability (308,281)
Interest expenses and fiscal charges (133,563) (63,178) Acquisition of capital assets (22,440) (2,431,263)
Proceeds from sale of property 123,283
Cash Flows from Capital and
Related Financing Activities (476,492) (2,701,194)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 9,864 745,287
Cash Flows from Investing Activities 9,864 745,287
NET CHANGE IN CASH AND CASH EQUIVALENTS (144,433) (4,313,176) CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 580,051 42,788,332 CASH AND CASH EQUIVALENTS, END OF YEAR $435,618 $38,475,156 Reconciliation of operating income to net cash
provided by operating activities:

Operating income $606,366 $1,240,902
Adjustments to reconcile operating income
to cash flows from operating activities:

Depreciation and amortization 442,044 1,559,814
Net change in assets and liabilities:

Accounts receivable 82,125 (799,037)
Grant receivable (1,000)
Prepaids (831,807)
OPEB-related items (13,354)
Accounts payable 17,165 119,865
Unearned revenue 72
Compensated absence obligations 7,111
Pension-related items (237,186)
Claims payable (1,284,836)
Net Cash Provided by Operating Activities $904,343 $3,901 NON-CASH TRANSACTIONS:

Subscription assets $290,380
Retirement of capital assets ($73,299)
Amortization of bond discount $725
See accompanying notes to basic financial statements
36 FIDUCIARY FUND FINANCIAL STATEMENTS
Fiduciary funds are used to account for assets held by the City as an agent or custodian for other entities.

The financial activities of such funds are excluded from the Government-wide financial statements and present fund statements that consist of a Statement of Net Position and a Statement of Changes in Net Position.

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY – PRIVATE PURPOSE

TRUST FUND
Established to account for the activities of the Successor Agency to the San Rafael Redevelopment Agency.

PT. SAN PEDRO ROAD ASSESSMENT DISTRICT CUSTODIAL FUND
Established to accumulate funds for payment of principal and interest for Pt. San Pedro Road Median Landscaping Assessment District bonds.
37 Successor Agency
to the Pt. San Pedro
Redevelopment Road Assessment
Agency District
Private-Purpose Custodial
Trust Fund Fund
ASSETS
Cash available for operations (Note 2) $38,987 $246,645 Receivables:

Taxes 1,591
Total Assets 38,987 248,236

LIABILITIES
Interest payable 17,267
Total Liabilities 17,267

NET POSITION
Restricted for:

Bondholders 38,987 230,969
Total Net Position $38,987 $230,969
See accompanying notes to financial statements

CITY OF SAN RAFAEL

FIDUCIARY FUNDS

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2024
38 Successor Agency
to the Pt. San Pedro
Redevelopment Road Assessment
Agency District
Private-Purpose Custodial
Trust Fund Fund

ADDITIONS
Property taxes $159,051
Total Additions 159,051

DEDUCTIONS
General government $161,706 10,244
Payments to bondholders 88,500
Interest expense 52,575
Total Deductions 161,706 151,319
Change in Net Position (161,706) 7,732

NET POSITION
Beginning of year 200,693 223,237
End of year $38,987 $230,969

CITY OF SAN RAFAEL

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2024
See accompanying notes to financial statements
39 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of the Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements present the City of San Rafael (the City) as the Primary Government, with its component units for which the City is considered financially accountable. The component units discussed below are included in the City's reporting entity because of the significance of their operational and financial relationships with the City.

B. Description of Blended Component Unit

The accompanying basic financial statements include all funds and boards and commissions that are controlled by the City Council. The basic financial statements include the City’s blended component units, entities for which the City is considered to be financially accountable. A blended component unit, although a legally separate entity, is in substance, part of the City’s operations and so data from this entity is combined with the City. The City’s blended component unit is described below.

San Rafael Joint Powers Financing Authority – The San Rafael Joint Powers Financing Authority (Authority) was formed by the City of San Rafael and the former San Rafael Redevelopment Agency (Agency) pursuant to Articles 1 and 2 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California for the purpose of assisting in the financing and refinancing of certain assessment district and redevelopment-related activities in the City. On March 18, 2013, the Agency was replaced by the California Municipal Finance Authority (CMFA) in order to allow the life of the Authority to extend beyond that of the Agency. The Authority is administered by a governing board whose members are the City Council of the City.

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

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

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

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

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The District’s activities are reported as a discretely presented component unit in a separate column in the basic financial statements which includes the District’s assets, liabilities, revenues, expenses, and results of operations. The District’s fiscal year ends on June 30 and its separately issued component unit financial statements can be obtained at the San Rafael Sanitation District, 111 Morphew Street, San Rafael, California 94901.

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

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

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

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

E. Major Funds and Other Reported Funds
Major funds are defined as funds that have either assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues, or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.

42 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City reported the following major governmental funds in the accompanying financial statements:

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

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

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

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

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

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

The City also reports the following fund types:

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

Fiduciary Funds – These funds include: Successor Agency to the Redevelopment Agency PrivatePurpose Trust Fund – which accounts for the accumulation of resources held by the Successor Agency to the Redevelopment Agency to be used for payments at appropriate amounts and times in the future; and Pt. San Pedro Road Assessment District Custodial Fund – which accumulates funds for the payment of principal and interest for Pt. San Pedro Road Median Landscaping District bonds. The financial activities of these funds are excluded from the government-wide financial statements, but are presented in the separate Fiduciary Fund financial statements.

F. Basis of Accounting
The government-wide, proprietary, fiduciary and discretely presented component unit financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. 43 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end with the exception of sales and use tax revenues which are reported as available if collected within ninety days of yearend. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, including lease and subscription liabilities, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions, including entering into contracts giving the City the right-to-use leased assets, are reported as expenditures in governmental funds. Proceeds from long-term debt and financing through leases are reported as other financing sources.

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

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

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

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

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

44 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In addition to liabilities, the statement of financial position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

Unavailable revenue, a type of deferred inflow of resources, is reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from intergovernmental receivables and deferred amounts related to leases. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

H. Budgets, Budgetary Accounting, and Encumbrances
The City adopts an annual budget which is effective July 1 for the ensuing fiscal year. The budget reflects estimated revenues and expenditures, except for the capital projects funds. Appropriations and spending authorizations for projects in the capital projects funds and some special revenue funds are approved by the City Council on a multi-year basis. From the effective date of the budget, which is adopted at the department level, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The City Council may amend the budget by resolution during the fiscal year in order to respond to emerging needs, changes in resources, or shifting priorities. Expenditures may not exceed appropriations at the fund level, which is the legal level of control. The City Manager is authorized to transfer budgeted amounts between accounts, departments, or funds; the Council must approve any increase in the City’s operating expenditures, appropriations for capital projects, and transfers between major funds and reportable fund groups.

Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles for the General Fund and Special Revenue Funds.

Encumbrance accounting, under which purchase orders for expenditures are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of the budgetary process. All unencumbered appropriations lapse at year end.

For the fiscal year ended June 30, 2024, the following expenditures exceeded the budgeted appropriations:

Expenditures
Exceeded Budget
Loch Lomond #10 Community Facilities District Special Revenue Fund $3,979 Public Safety Special Revenue Fund 5,135
Storm Water Special Revenue Fund 262,292
Grants Special Revenue Fund 419,872
The above expenditures exceeded the budgeted appropriations, however, there were sufficient revenues to cover the excess expenditures during the fiscal year in each of the funds. 45 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I. Cash Equivalents
For purposes of the statement of cash flows, the City considers all highly liquid investments (including all restricted assets) with maturities of three months or less when purchased to be cash equivalents. The City maintains a cash and investment pool that is available for use by all funds.

As the proprietary funds' share of this pool is readily available when needed, such share is also considered to be cash equivalent.

J. Prepaids
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

K. Capital Assets
City
Contributed capital assets are valued at their estimated acquisition value on the date contributed.

Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value. All other capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available, except for intangible right-to-use lease assets and intangible right-to-use subscription assets, the measurement of which is discussed in Note 1R and Note 1S, respectively, below. Major outlays for capital assets and improvements are capitalized as projects are constructed.

City policy has set the capitalization thresholds for reporting capital assets at the following:

General capital assets Ranging from $5,000 to $50,000
Infrastructure capital assets Ranging from $25,000 to $250,000 Depreciation is provided using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets.

The City has assigned the useful lives listed below to capital assets:

Buildings, improvements, and structures 20 – 50 years
Machinery and equipment 4 – 20 years
Infrastructure 15 – 50 years
Right to use leased building 35 years
Right to use leased equipment 1.5 – 5 years
Right to use subscription asset 5 – 10 years
46 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) District
Collection systems and facilities purchased or constructed are stated at cost. Assets contributed are recorded at the estimated acquisition value at the date received. Interest is capitalized for assets constructed when applicable. The costs of normal repairs and maintenance that do not add to the value of an asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable.

Applicable capital assets must be capitalized for amounts $1,000 or above and may be capitalized for amounts from $500 to $1,000 if determined to be sensitive. Depreciation is provided by the straight-line method over the estimated useful lives of capital assets as follows:

Subsurface lines 50 – 80 years
Sewage collection facilities 5 – 50 years
General plant and administrative facilities 3 – 15 years L. Compensated Absences
Compensated absences are accrued as earned. Upon termination, employees are paid for all unused vacation at their current hourly rates. Unused sick leave may be compensable up to 600 hours, depending upon the provisions of the MOUs, which vary by bargaining unit.

The long-term portion of the liability for compensated absences for governmental fund type operations is recorded as compensated absences in the government-wide financial statements.

Compensated absences are liquidated by the fund that has recorded the liability. Proprietary fund liabilities are recorded within their respective funds. The long-term portion of governmental activities compensated absences is liquidated primarily by the General Fund.

The changes in compensated absences as of June 30, 2024 were as follows:

Governmental Business-Type
Activities Activities Total
Beginning Balance $4,230,145 $131,548 $4,361,693
Additions 3,322,740 112,984 3,435,724
Payments (3,118,393) (105,873) (3,224,266)
Ending Balance $4,434,492 $138,659 $4,573,151
Current Portion $554,312 $17,332 $571,644

47 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. Property Tax Levy, Collection and Maximum Rates – City State of California Constitution Article XIII A provides that the combined maximum property tax rate on any given property may not exceed 1% of its assessed value unless an additional amount for general obligation debt has been approved by voters. Assessed value is calculated at 100% of market value as defined by Article XIII A and may be adjusted by no more than 2% per year unless the property is sold, transferred, or substantially improved. The State Legislature has determined the method of distribution of receipts from a 1% tax levy among the counties, cities, school districts and other districts. Marin County assesses properties, bills for, and collects property taxes on the schedule that follows:

Secured Unsecured
Valuation/lien dates January 1 January 1
Levy dates July 1 July 1
Due dates (delinquent as of) 50% on November 1 (December 10) July 1 (August 31) 50% on February 1 (April 10)
For assessment and collection purposes, property is classified as either “secured” or “unsecured” and is listed accordingly on separate parts of the assessment roll. The “secured roll” is that part of the assessment roll containing State-assessed property and real property having a tax lien that is sufficient, in the opinion of the County Assessor, to secure payment of the taxes. Unsecured property comprises all taxable property not attached to land, such as personal property or business property.

Every tax levied by a county that becomes a lien on secured property has priority over all present and future private liens arising pursuant to State law on the secured property, regardless of the time of the creation of the other liens. A tax levied on unsecured property does not become a lien against the taxed unsecured property, but may become a lien on other property owned by the taxpayer.

Property taxes are levied and recorded as revenue when received in the fiscal year of levy because of the adoption of the “alternate method of property tax distribution,” known as the Teeter Plan, by the City and the County of Marin. The Teeter Plan authorized the auditor-controller of the County of Marin to allocate 100% of the secured property taxes billed, but not yet paid. The County of Marin remits tax monies to the City in three installments, as follows:
55% remitted on December 15
40% remitted on April 15
5% remitted on June 15
N. Sewer Charges – District
Sewer charges are billed and collected on behalf of the District by the County of Marin as a special assessment on annual property tax billings. Property taxes are levied on January 1 and are due in two equal installments on November 1 and February 1 and become delinquent December 10 and April 10, for the first and second installments, respectively. In accordance with the Teeter Plan, the County remits to the District all charges which are assessed and the county retains responsibility for collecting past due amounts.

The Teeter Plan provides that the County advance the District its share of the annual gross levy of secured property taxes and special assessments. In consideration, the District gives the County of Marin its rights to penalties and interest on delinquent secured property tax receivables and actual proceeds collected.

48 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) O. Connection Fees – District
Connection fees represent a one-time contribution of resources to the District imposed on contractors and developers for the purpose of financing capital improvements. Connection fees are recognized after non-operating revenues (expenses) in the statement of revenues, expenses, and changes in net position. The District utilizes connection fees received on a first-in-first-out basis to finance current year capital projects. Accordingly, if there is a balance of connection fees available at year-end, it is classified as restricted net position.

P. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

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

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

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

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

Q. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent asset and liabilities at the dates of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting periods.

Actual results could differ from those estimates.

R. Leases
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment.

Lessee – The City is a lessee for noncancelable leases of equipment and land. The City recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in the government‐wide financial statements. The City recognizes lease liabilities in accordance with the capitalization policy for the underlying asset as discussed in Note 1K.

49 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight‐line basis over the lesser of its useful life or the life of the lease agreement.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments as follows:
• The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancelable period of the lease. • Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise, if applicable.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with other capital assets and lease liabilities are reported with long-term lease liabilities on the statement of net position.

Lessor – The City is a lessor for noncancellable leases of certain buildings and land. The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

50 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
• The City uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancelable period of the lease. • Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

S. Subscription-Based Information Technology Arrangements (SBITAs) A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) 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.

At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the contract term. Subsequently, the subscription liability is reduced by the principal portion of payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for payments made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight‐line basis over shorter of the subscription term or the useful life of the underlying IT assets.

Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments as follows:
• The City uses the interest rate charged by the IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscription liabilities. • The subscription term includes the noncancellable period of the subscription. • Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its subscription and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability. 51 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term debt on the statement of net position.

T. New Accounting Pronouncements
In June 2022, GASB issued Statement No. 100, Accounting for Changes and Error Corrections.

The objective of this Statement is to improve guidance related to accounting for changes and error corrections. 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. This Statement also addresses corrections of errors in previously issued financial statements. The provisions of this Statement were implemented during fiscal year 2024.

The implementation had no effect on the financial statements.

NOTE 2 – CASH AND INVESTMENTS
A. Policies
The City maintains an investment policy that emphasizes safety, liquidity, and reasonable market yield. This policy is reviewed and approved by the City Council annually.

The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. In order to increase security, the City employs the trust department of a bank as the custodian of certain City managed investments, regardless of their form.

California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a market value of 150% of the deposit, as collateral for these deposits. Under California Law this collateral is held in a separate investment pool by another institution in the City’s name and places the City ahead of general creditors of the institution.

The City’s investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.

52 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 2 – CASH AND INVESTMENTS (Continued)
B. Classification
Cash and investments as of June 30, 2024, are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or agency agreements.

Statement of Net Position:

City of San Rafael:

Cash and investments available for operations $121,021,922 Restricted cash and investments 731,527
Total Primary Government Cash and Investments 121,753,449 San Rafael Sanitation District (Component Unit):

Cash and investments available for operations 50,985,279 Total San Rafael Sanitation District Cash and Investments 50,985,279 Statement of Fiduciary Net Position (separate statement):

Successor Agency to the Redevelopment Agency Private Purpose Trust Fund:

Cash available for operations 38,987
Pt. San Pedro Road Assessment District Custodial Fund:

Cash available for operations 246,645
Total Fiduciary Fund Cash and Investments 285,632
Total Cash and Investments $173,024,360
The City does not normally allocate investments by fund. Each proprietary fund’s portion of Cash and Investments Available for Operations is in substance a demand deposit available to finance operations and is considered a cash equivalent in preparing the statement of cash flows.

53 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 2 – CASH AND INVESTMENTS (Continued)
C. Investments Authorized by the California Government Code and the City’s Investment Policy The City’s investment policy and the California Government Code allow the City to invest in the following securities provided the credit ratings of the issuers are acceptable to the City and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City’s Investment Policy where it is more restrictive:

Minimum Maximum Maximum
Maximum Credit Percentage of Investment in
Authorized Investment Type Maturity Quality (a) Portfolio (a) One Issuer U.S. Government Obligations 5 years N/A No limit No limit Federal Agency Securities and Instruments 5 years N/A No limit No limit Repurchase Agreements 1 year N/A No limit No limit
Prime Commercial Paper 270 days A-1 25% 10% of total outstanding commercial paper and
5% of portfolio
Banker's Acceptances 180 days A 40% $2,000,000
Medium-Term Corporate Notes 5 years A 30% 5% of portfolio Negotiable Certificates of Deposit 5 years A-1 30% 5% of portfolio Non-negotiable Certificates of Deposit 5 years N/A 20% 5% of portfolio Local Agency Investment Fund N/A N/A N/A $75m per Account Money Market Funds N/A AAA 20% N/A
Mortgage and Asset-Backed Obligations 5 years AA 20% 5% of portfolio Supranational Securities 5 years AA 30% 10% of portfolio Limited Obligation Improvement Bonds Related to
Special Assessment Districts and Special Tax
Districts issued by the City of San Rafael 30 years N/A N/A N/A (a) At time of purchase
The San Rafael Sanitation District maintains all of its cash in the County of Marin pooled investment fund for the purpose of increasing interest earnings through pooled investment activities.

The County Pool includes both voluntary and involuntary participation from external entities.

The District is a voluntary participant. The State of California statutes require certain special districts and other governmental entities to maintain their cash surplus with the County Treasurer.

The District has approved by resolution, the investment policy of the County of Marin which complies with the California Government Code.

54 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 2 – CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged as reserves to be used if there are insufficient resources to meet debt repayment obligations. The California Government Code requires these funds to be invested in accordance with City ordinance bond indentures or State statute. The table below identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements:

Maximum
Maturity
U.S. Treasury Obligations 5 years to no N/A No Limit
U.S. Agency Securities 3 - 5 years N/A No Limit
U.S. Agency Instruments 5 years N/A No Limit
Repurchase Agreements 1 year A-1 No Limit
Bankers’ Acceptances 360 days Highest Category Rating No Limit Money Market Mutual Funds N/A AAAm No Limit
Prime Commercial Paper 270 days Highest Category Rating No Limit N/A Highest Category Rating No Limit
Municipal Obligations N/A Two Highest Category Ratings No Limit Medium-Term Corporate Notes 5 Years A No Limit
Non-Negotiable Certificates of Deposit 180 Days N/A No Limit Negotiable Certificates of Deposit 5 Years N/A No Limit Local Agency Investment Fund N/A N/A No Limit
California Asset Management Program N/A N/A No Limit
Deposit Accounts N/A A No Limit
State or Local Bonds N/A A No Limit
Defeasance Securities N/A N/A No Limit
(a) At time of purchase.
(b) Guaranteed Investment Contracts must be fully collaterized with U.S. Treasury Obligations or U.S. Agency Obligations.

Maximum Percentage
of Portfolio
Guaranteed Investment Contracts (fully collateralized) (b) Authorized Investment Type Minimum Credit Quality (a)
55 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 2 – CASH AND INVESTMENTS (Continued)
E. Fair Value Hierarchy
The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2024:
(a) (b) (c)
Level 1 Level 2 Level 3 Total
City:

Money Market Funds $706,201 $706,201
U.S. Treasury Notes $16,576,779 16,576,779
Federal Agency Securities and Instruments 12,441,257 12,441,257 Medium-Term Corporate Notes 17,323,978 17,323,978
Investment in Pt. San Pedro Bonds $1,042,474 (d) 1,042,474 $16,576,779 $30,471,436 $1,042,474 48,090,689
Investments Exempt from Fair Value Hierarchy:

Local Agency Investment Fund 59,628,752
Marin County Investment Pool 85,751
Total Investments 107,805,192
Cash in banks and on hand 13,948,257
Total City Cash and Investments 121,753,449
Fiduciary:

Cash in banks 285,632
Total Fiduciary Cash 285,632
Total City and Fiduciary Cash and Investments 122,039,081 San Rafael Sanitation District:

Marin County Investment Pool 50,985,279
50,985,279
Total Cash and Investments $173,024,360
Source: The above GASB 72 Classifications in the different input levels are provided by US Bank. (a)
(b)
(c)
(d) This pertains to the City-owned bonds of its investments in Pt. San Pedro Special Assessment District that has no trading market and is thus listed under Level 3. This bond is valued using discounted cash flow techniques.

District's Total Cash and Investments
Level 1 inputs are quoted prices in active market for identical assets. These are quoted prices in active markets for identical assets at the measurement date. An active market for the asset is a market in which transactions for the asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 inputs are significant other observable inputs. These inputs include: a) Quoted prices for similar assets in active markets; b) Quoted prices for identical or similar assets in markets that are not active; and c) Inputs other than quoted prices that are observable for an asset.

Level 3 inputs are significant unobservable inputs. These inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset at the measurement date.

56 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 2 – CASH AND INVESTMENTS (Continued)
F. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City also manages its interest rate risk by holding most investments to maturity, thus reversing unrealized market gains and losses.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date:
12 Months More than
Type of Investment or Less 12 Months Total
City:

Money Market Funds $706,201 $706,201
Local Agency Investment Fund 59,628,752 59,628,752
Marin County Investment Pool 85,751 85,751
U.S. Treasury Notes 4,643,114 $11,933,665 16,576,779
Federal Agency Securities and Instruments 3,346,362 9,094,895 12,441,257 Medium-Term Corporate Notes 677,656 16,646,322 17,323,978 Investment in Pt. San Pedro Bonds 1,042,474 1,042,474
Total Investments $69,087,836 $38,717,356 107,805,192
Cash in banks and on hand 13,948,257
Total City Cash and Investments 121,753,449
Fiduciary:

Cash in banks 285,632
Total Fiduciary Cash 285,632
Total City and Fiduciary Cash and Investments 122,039,081 San Rafael Sanitation District:

Marin County Investment Pool 50,985,279
Total District's Cash and Investments 50,985,279
Total Cash and Investments $173,024,360
57 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 2 – CASH AND INVESTMENTS (Continued)
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more.

Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgagebacked securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. At June 30, 2024, these investments matured in an average of 217 days.

Money Market Mutual Funds are available for withdrawal on demand. The investment portfolio of the Money Market Mutual Fund had an average maturity of 40 days at June 30, 2024.

The County’s investment pool is not registered with the Securities and Exchange Commission as an investment company. The pool has a credit rating of “AAA/V1.” Investments made by the Treasurer are regulated by the California Government Code and by the County’s investment policy. The objectives of the policy are in order of priority, safety, liquidity, yield, and public trust. The County has established a treasury oversight committee to monitor and review the management of public funds maintained in the investment pool in accordance with Article 6 Section 27131 of the California Government Code. The oversight committee and the Board of Supervisors review and approve the investment policy annually. The County Treasurer prepares and submits a comprehensive investment report to the members of the oversight committee and the investment pool participants every month. The report covers the types of investments in the pool, maturity dates, par value, actual costs, and fair value.

58 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 2 – CASH AND INVESTMENTS (Continued)
G. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of June 30, 2024, for each of the City’s or District’s investment types as provided by Standard and Poor’s or Moody’s investment rating systems, except as noted:

Percentage
Amount of
Investments Invested Investments NRSRO Rating
City:

Money Market Funds $706,201 1% AAAm
Marin County Investment Pool 85,751 < 1% Aaa/AAA
U.S. Treasury Notes 16,576,779 15% AAA
Federal Agency Securities and Instruments 12,441,257 12% AAA Medium-Term Corporate Notes 17,323,978 16% AAA,AA2,AA3,A1,A2,A3 Local Agency Investment Fund 59,628,752 55% Not Rated
Investment in Pt. San Pedro Bonds 1,042,474 1% Not Rated Total City Investments 107,805,192
San Rafael Sanitation District:

Marin County Investment Pool 50,985,279 AAA/V1
Total Investments $158,790,471
H. Concentration Risk
Investments in the securities of any individual issuers, other than U.S. Treasury securities, mutual funds, and external investment pools, that represent 5% or more of the total entity–wide investments are as follows at June 30, 2024:

Percentage
of
Reporting Unit Issuer Investment Type Amount Investments Entity-wide Federal Home Loan Bank Federal Agency Securities and Instruments $5,671,312 5%

59 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 3 – INTER-FUND TRANSACTIONS
A. Transfers
Resources may be transferred from one City fund to another. Transfers routinely fund capital projects or capital outlays, lease or debt service payments, and operating expenses.

Transfers between funds during the fiscal year ended June 30, 2024, were as follows:

From Fund To Fund Amount
General Fund Essential Facilities Capital Projects Fund $384,188 (A) Non-Major Governmental Funds (A) (B) 6,644,483
Gas Tax Special Revenue Fund General Fund 650,000 (C)
Traffic and Housing Mitigation Special Revenue Fund 419,000 (B) Non-Major Governmental Funds General Fund 233,945 (B)
Parking Services Enterprise Fund General Fund 497,148 (A) Non-Major Governmental Funds 85,000 (A)
Internal Service Funds General Fund 680,313 (D)
Gas Tax Special Revenue Fund 850,000 (B)
Non-Major Governmental Funds 1,235,035 (B)
$11,679,112
(A) Transfers for administrative costs, grant matching, recreation, and other program support. (C) Transfers for street maintenance support and administrative costs. (D) Transfers for debt service.
(B) Transfers for project support.

B. Due To/From Other Funds
During the course of operations, transactions occur between funds to account for goods received or services rendered. These receivables and payables are classified as due from or due to other funds.

In addition, when funds overdraw their share of pooled cash, the receivables and payables are also classified as due from or due to other funds. As of June 30, 2024, the City had the following due from and due to fund balances:

From Fund To Fund Amount
General Fund Sewer Maintenance Internal Service Fund $394,178 NOTE 4 – LOANS AND LEASES RECEIVABLE
A. Summary of Loans Receivable
The City has identified the portion of fund balance represented by these loans as nonspendable or restricted as discussed in Note 8. As of June 30, 2024, these loans consisted of the following:

Employee Loans $786
Centertown Associates 952,717
3301 Kerner 888,999
One "H" Street Associates 25,717
Vivalon 1,949,100
Total $3,817,319
60 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 4 – LOANS AND LEASES RECEIVABLE (Continued)
B. Employee Loans
The City administers a computer loan program that supports the use of technology by employees.

Employees are permitted to borrow up to $1,500 for the purchase of computer hardware and software. The loans are interest-free, have maximum terms of one year, and are repaid through automatic payroll deductions. As of June 30, 2024, the balance of the employee loans receivable was $786.

C. Centertown Associates Loan
On August 20, 1990, the former Redevelopment Agency loaned Centertown Associates, Ltd, $303,000 at 3% interest due semiannually for the construction of a 60-unit affordable apartment complex and was fully secured by a deed of trust. With the dissolution of the Redevelopment Agency effective February 1, 2012, the assets of the Agency’s Low and Moderate Income Housing Fund, including the Centertown Associates loan, were assumed by the City’s Low and Moderate Income Housing Special Revenue Fund. On October 22, 2021, City Council approved the Amended and Restated Promissory Note for the loan. The amendment extended the due date to October 22, 2078, for the original loan balance of $266,781 consisting of $219,982 in remaining principal and $46,799 in accrued interest as of the date of the amended loan agreement.

In addition, the amendment included an additional loan in the amount of $643,095 for a ground lease for certain land located at 855 C Street, currently improved with approximately sixty units of affordable housing. Interest is compounded at 1.74% annually and is repayable from residual receipts as defined under the agreement. Repayment is due on October 22, 2078. The amended note is secured by a Leasehold Deed of Trust with Assignment of Rents and Security Agreement on the Property. As of June 30, 2024, the balance of the loan including principal and accrued interest was $952,717.

D. 3301 Kerner Loan
On March 21, 2023, the City entered into a loan agreement in the amount of $857,500 to fund the construction of a 41-unit multifamily rental housing development affordable to homeless or formerly homeless households with mental illness at rents affordable to extremely low- and very low- income households. The term is the later of (a) the fifty-seventh anniversary of the date the Deed of Trust is recorded in the Recorder’s Office of Marin County or (b) the fifty-fifth anniversary of the date on which construction financing is converted into permanent financing.

Annual payments equal to the City’s proportionate share of residual receipts attributable to the prior calendar year are due beginning June 1st after the end of the calendar year of the date that the construction loan for the property converts to a permanent loan. The note is secured by a Deed of Trust. As of June 30, 2024, the balance of the loan and accrued interest was $888,999.

E. One “H” Street Associates Loan
On January 18, 1994, the City loaned One “H” Street Associates $100,000 at zero percent interest with annual payments of $2,857 and the final payment is due January 18, 2034. As of June 30, 2024, the balance of this loan was $25,717.

61 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 4 – LOANS AND LEASES RECEIVABLE (Continued)
F. Vivalon Loan
On April 1, 2022, the City entered into a loan agreement in the amount of $1,825,000 to fund construction of the Vivalon Healthy Aging Center located at 999 3rd Street. The site will include 66 one-bedroom and studio units for older adults and approximately 20% of the units will be supportive housing. The term is the later of (a) the fifty-seventh anniversary of the date the Deed of Trust is recorded in the Recorder’s Office of Marin County or (b) the fifty-fifth anniversary of the date on which construction financing is converted into permanent financing. Annual payments equal to the City’s proportionate share of residual receipts attributable to the prior calendar year are due beginning June 1st after the end of the calendar year that the construction loan for the property converts to a permanent loan. The note is secured by a Deed of Trust. As of June 30, 2024, the balance of the loan and accrued interest was $1,949,100.

G. Other Receivables – Long-Term Receivable from San Rafael Sanitation District The City provides staffing to San Rafael Sanitation District (District) under a contractual arrangement originated in 1987 that requires the District to pay all related employee costs incurred by the City on its behalf. Accordingly, the cost of providing pension and postemployment health benefits incurred by the City for the District staff but not yet funded are reflected by the District as an obligation, and by the City as a noncurrent receivable. The obligation as of June 30, 2024, is $2,463,069, and is composed of the following:

Defined benefit pension liability allocation $2,013,380 Other post-employment benefit liability allocation 449,689 Total long-term receivable from San Rafael Sanitation District $2,463,069 H. Leases Receivable
The City from to time to time engages in lease arrangements allowing the right for others to use various owned land and buildings for the public benefit. As of June 30, 2024, these leases and related deferred inflows of resources consisted of the following:

Deferred
Leases Inflows of
Receivable Resources
Marin History Museum $29,796 $26,986
Yacht Club 151,987 141,240
Trans Bay Cable 248,783 227,672
Total $430,566 $395,898
On August 1, 2021, the City began leasing a building to the Marin History Museum with monthly payments of $1,200 - $1,260 through July 1, 2026. The City recognized $12,953 in lease revenue and $1,833 in interest revenue during the current fiscal year related to this lease. Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term.

62 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 4 – LOANS AND LEASES RECEIVABLE (Continued)
On April 1, 2014, the City began leasing property to the San Rafael Yacht Club. The lease was extended during fiscal year 2022 and lease payments are due annually with an initial amount of $28,699 commencing March 31, 2022. Lease payments are to be increased by 5% every two years thereafter, until the end of the lease on March 31, 2029. The City recognized $28,248 in lease revenue and $3,543 in interest revenue during the current fiscal year related to this lease.

Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term.

On January 1, 2007, the City began leasing land to a third party for a cable operation. Lease payments are due annually with an initial amount of $33,500 commencing March 31, 2022. Lease payments are to be increased by 3% every year thereafter, until the end of the lease on January 1, 2031. The City recognized $32,525 in lease revenue and $8,281 in interest revenue during the current fiscal year related to this lease. Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term.

NOTE 5 – CAPITAL ASSETS
Changes in capital assets during the fiscal year consisted of:

Balance Balance
June 30, 2023 Additions Retirements Transfers June 30, 2024 Governmental Activities
Capital assets not being depreciated:

Land $84,025,659 $82,000 $84,107,659
Construction in progress 42,582,105 14,548,165 ($22,440) ($28,322,849) 28,784,981 Total capital assets not being depreciated 126,607,764 14,630,165 (22,440) (28,322,849) 112,892,640 Capital assets being depreciated:

Land improvements 10,851,579 10,851,579
Buildings and structures 119,165,142 556,524 119,721,666 Machinery and equipment 22,016,490 2,243,434 (815,198) 23,444,726 Infrastructure 237,123,099 35,359 27,766,325 264,924,783 Intangible right-to-use leased building 5,476,219 5,476,219 Intangible right-to-use leased equipment 258,365 976,307 (8,311) 1,226,361 Intangible right-to-use subscription asset 1,559,451 2,066,950 (374,019) 3,252,382 Total capital assets being depreciated 396,450,345 5,322,050 (1,197,528) 28,322,849 428,897,716 Less accumulated depreciation and amortization for:

Land improvements (7,419,679) (1,334,508) (8,754,187)
Buildings and structures (29,920,964) (2,838,061) (32,759,025) Machinery and equipment (16,092,860) (1,094,862) 741,899 (16,445,823) Infrastructure (157,200,656) (5,547,646) (162,748,302)
Intangible right-to-use leased building (312,927) (156,463) (469,390) Intangible right-to-use leased equipment (161,480) (147,435) (308,915) Intangible right-to-use subscription asset (285,924) (369,749) 106,862 (548,811) Total accumulated depreciation and amortization (211,394,490) (11,488,724) 848,761 (222,034,453) Total net capital assets being depreciated and amortized 185,055,855 (6,166,674) (348,767) 28,322,849 206,863,263 Total governmental activity capital assets $311,663,619 $8,463,491 ($371,207) $319,755,903

63 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 5 – CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2023 Additions Retirements June 30, 2024
Business-type Activities
Capital assets not being depreciated:

Land $8,620,853 $8,620,853
Total capital assets not being depreciated 8,620,853 8,620,853 Capital assets being depreciated:

Buildings and structures 10,713,814 $22,440 10,736,254
Machinery and equipment 1,046,906 ($78,806) 968,100
Total capital assets being depreciated 11,760,720 22,440 (78,806) 11,704,354 Less accumulated depreciation for:

Buildings and structures (4,332,135) (408,726) (4,740,861) Machinery and equipment (887,021) (33,318) 78,806 (841,533) Total accumulated depreciation (5,219,156) (442,044) 78,806 (5,582,394) Total net capital assets being depreciated 6,541,564 (419,604) 6,121,960 Total business-type activity capital assets $15,162,417 ($419,604) $14,742,813 Balance Balance
June 30, 2023 Additions Retirements Transfers June 30, 2024 San Rafael Sanitation District
Capital assets not being depreciated:

Land and easements $115,329 $115,329
Construction in progress 7,653,777 $7,316,118 ($4,340,362) 10,629,533 Total capital assets not being depreciated 7,769,106 7,316,118 (4,340,362) 10,744,862 Capital assets being depreciated:

Subsurface lines 45,561,535 747,006 4,340,362 50,648,903 Sewage collection facilities 47,983,030 ($414,756) 47,568,274 General plant and administration 2,366,681 (213,361) 2,153,320 Total capital assets being depreciated 95,911,246 747,006 (628,117) 4,340,362 100,370,497 Less accumulated depreciation for:

Subsurface lines (14,743,840) (585,479) (15,329,319)
Sewage collection facilities (27,020,561) (1,710,196) 391,247 (28,339,510) General plant and administration (1,825,961) (105,776) 213,308 (1,718,429) Total accumulated depreciation (43,590,362) (2,401,451) 604,555 (45,387,258) Total net capital assets being depreciated 52,320,884 (1,654,445) (23,562) 4,340,362 54,983,239 Total District's capital assets $60,089,990 $5,661,673 ($23,562) $65,728,101 Capital Asset Contributions – Some capital assets may have been acquired using Federal and State grant funds, or were contributed by developers or other governments. These contributions are accounted for as revenues at the time the capital assets are contributed. 64 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 5 – CAPITAL ASSETS (Continued)
Depreciation Allocation – Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program are as follows:

Governmental Activities
General government $878,664
Public safety 939,420
Public works and parks 7,092,777
Community development 43,650
Culture and recreation 973,467
Internal service funds 1,560,746
Total Governmental Activities $11,488,724
Business-type Activities
Parking services $442,044
Total Business-type Activities $442,044
NOTE 6 – LONG TERM DEBT
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt. A summary of governmental and business-type activities transactions for the fiscal year ended June 30, 2024, are as follows:

Authorized Balance Balance Current
and Issued June 30, 2023 Retirements June 30, 2024 Portion Governmental Activities Bonds:
2018 Authority Lease Revenue Bonds

4.00%-5.00%, due 6/1/2034 $45,485,000 $39,265,000 $2,435,000 $36,830,000 $2,645,000 Add: unamortized bond premium 5,587,379 507,944 5,079,435 2010 Taxable Pension Obligation Bonds

6.00%-6.25%, due 7/1/2025 4,490,000 1,805,000 565,000 1,240,000 600,000 Total Governmental Activities Bonds 46,657,379 3,507,944 43,149,435 3,245,000 Governmental Activities - Direct Borrowings:

PG & E City Hall HVAC Retrofit Note Payable

0.00%, due 11/30/2023 334,585 12,878 12,878
PG & E CEC Efficiency Note Payable

1.00%, due 12/22/2026 1,104,799 531,062 149,836 381,226 151,351 PG & E Energy Efficient Lighting Project Note Payable

0.00% due 1/20/30 174,036 143,218 21,755 121,463 21,755 Total Governmental Activities - Direct Borrowings 687,158 184,469 502,689 173,106 Total Governmental Activities Debt $47,344,537 $3,692,413 $43,652,124 $3,418,106 Business-type Activities:

Direct Borrowing:

PG & E Parking Lot Lighting Retrofit Note Payable

0.00%, due 11/30/2023 $66,380 $489 $489
2012 Authority Lease Revenue Refunding Bonds

2.00-4.00%, due 4/1/2033 6,750,000 3,715,000 320,000 $3,395,000 $330,000 Less: unamortized bond discount (7,072) (725) (6,347)
Total Business-type Activities Bonds 3,707,928 319,275 3,388,653 330,000 Total Business-type Activities $3,708,417 $319,764 $3,388,653 $330,000 65 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 6 – LONG-TERM DEBT (Continued)
A. 2018 Authority Lease Revenue Bonds
On March 5, 2018, the Authority issued 2018 Authority Lease Revenue Bonds in the amount of $45,485,000 bearing interest at rates from 4.00% to 5.00%. The proceeds of the bonds were provided for replacement of two fire stations and construction of a public safety center. The Authority has pledged revenue pursuant to a site and facility lease between the City and the Authority for the public safety center. The lease rental payments are due semi-annually and are in an amount sufficient to make payments on the Bonds. Principal payments are due annually on June 1 and interest is payable semiannually on June 1 and December 1. The Bonds maturing on or prior to June 1, 2028, are not subject to optional redemption prior to their maturity. The Bonds maturing on or after June 1, 2029, are subject to optional redemption as a whole or in part on any date after June 1, 2028, at the option of the Authority, at a redemption price equal to the principal amount of the Bonds subject to redemption, plus accrued interest to the date fixed for redemption, without premium.

The Bonds are payable from any source of available funds of the City. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City.

B. 2010 Taxable Pension Obligation Bonds
On July 1, 2010, the City issued 2010 Taxable Pension Obligation Bonds in the amount of $4,490,000 bearing interest at rates from 6.00% to 6.25%. Principal payments are due annually on July 1 and interest is payable semiannually on January 1 and July 1. The Bonds were issued to prefund a portion of the obligations of the City to the Marin County Employees’ Retirement Association. Payment of the principal and interest on the Bonds is not limited to any special source of funds and is payable from any legally available moneys of the City. The City is not empowered or obligated to levy or pledge taxes to make payments on the Bonds. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur:
default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City.

C. Pacific Gas and Electric Notes Payable
PG&E CEC Efficiency
On September 5, 2017, City Council approved the execution of a note payable agreement with PG&E in an amount up to $1,178,813, bearing interest at 1%. The debt was assumed as a means to finance the execution of various energy efficiency system upgrades to City facilities and streetlights. The upgrades included interior and exterior lighting upgrades and energy management control systems. The City made the final draw on the loan and the final loan obligation was $1,104,799. Payments commenced in December 2019 and are due semi-annually until paid in full in December 2026.

66 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 6 – LONG-TERM DEBT (Continued)
PG&E Energy Efficient Lighting Project
On September 20, 2021, the City executed a note payable agreement with PG&E in the amount of $174,036, which does not bear interest. The debt was assumed as a means of financing energy efficient lighting for the Al Boro recreation center and the department of Public Works building.

Repayment of the loan commenced in February 2022 and payments are due monthly until paid in full in January 2030.

D. 2012 Authority Lease Revenue Refunding Bonds
On August 7, 2012, the Authority issued 2012 Authority Lease Revenue Refunding Bonds in the amount of $6,750,000 bearing interest at rates from 2.00% to 4.00%. The proceeds of the Series 2012 Bonds were used to repay the Authority’s 2003 Authority Lease Revenue Bonds that financed the construction of the 3rd and C Street parking structure and achieved lower interest rates and lower annual debt service payments. The refunding resulted in a net present value savings to the City in debt service of $670,496. In addition, the requisition price exceeded the net carrying amount of the old debt by $295,278. The Series 2012 Bonds are payable from lease payments made by the City to the Authority for leasing the City facilities. The rights to these lease payments have been irrevocably transferred by the Authority to the Trustee. Activities related to the Series 2012 Bonds are reported in the Parking Services Enterprise Fund. Principal payments are due annually on April 1 and interest is payable semiannually on October 1 and April 1. The Bonds maturing on or prior to April 1, 2022, are not subject to optional redemption prior to their maturity. The Bonds maturing on or after April 1, 2023, are subject to optional redemption as a whole or in part on any date after April 1, 2022, at the option of the Authority, at a redemption price equal to the principal amount of the Bonds subject to redemption, plus accrued interest to the date fixed for redemption, without premium.

67 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 6 – LONG-TERM DEBT (Continued)
E. Future Debt Service
Future debt service requirements, including interest, at June 30, 2024, are as follows:

Governmental Activities
For the Year Bonds Direct Borrowings
Ended June 30 Principal Interest Principal Interest
2025 $3,245,000 $1,900,250 $173,106 $3,436
2026 3,510,000 1,729,256 174,623 1,919
2027 3,105,000 1,565,750 98,762 386
2028 3,355,000 1,410,500 21,755
2029 3,615,000 1,242,750 21,755
2030 - 2034 21,240,000 3,211,250 12,688
Totals 38,070,000 $11,059,756 502,689 $5,741
Reconciliation of Long-term debt:

Add: unamortized premium 5,079,435
$43,149,435 $502,689
For the Year Bonds
Ended June 30 Principal Interest
2025 $330,000 $124,288
2026 335,000 113,562
2027 350,000 102,256
2028 360,000 90,006
2029 375,000 77,406
2030 - 2033 1,645,000 164,400
Totals $3,395,000 $671,918
Reconciliation of Long-term debt:

Less: unamortized discount ($6,347)
$3,388,653
Business-type Activities

68 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 7 – DEBT WITHOUT CITY COMMITMENT
A. Special Assessment Debt Without City Commitment
Special assessment districts have been established in various parts of the City to provide improvements to properties located in those districts. Properties in these districts are assessed for the cost of improvements; these assessments are payable solely by property owners over the term of the debt issued to finance these improvements. The City is not legally or morally obligated to pay these debts or be the purchaser of last resort of any foreclosed properties in these special assessment districts, nor is it obligated to advance City funds to repay these debts in the event of default by any of these districts. The City does act as an agent for the property owners and bondholders and at June 30, 2024, the balances of these Districts’ outstanding debt were as follows:

Project Original Outstanding
Description Amount June 30, 2024
Pt. San Pedro Road Median Landscaping Pt. San Pedro Road Assessment District Limited Obligation Bonds-2012 Median Landscaping $1,750,000 $986,700 B. Conduit Debt
The City has assisted private-sector entities by sponsoring their issuance of debt for purposes the City deems to be in the public interest. These debt issues are secured solely by the property financed by the debt. The City is not legally or morally obligated to pay these debts or be the purchaser of last resort of any foreclosed properties secured by these debts, nor is it obligated to advance City funds to repay these debts in the event of default by any of these issuers. At June 30, 2024, the balance of this issuers’ outstanding debt was as follows:

Project Original Outstanding
Description Amount June 30, 2024
San Rafael Redevelopment Agency 162-175 Belvedere
Multifamily Housing Revenue Bonds-2000A Apartments $3,590,529 $729,048 California Statewide Communities
Development Authority Revenue Bonds-2001 St. Marks School 5,605,000 1,655,000 San Rafael Redevelopment Agency San Rafael Commons
Multifamily Housing Revenue Bonds-2002 Apartments 6,100,000 3,930,000 San Rafael Redevelopment Agency
Multifamily Housing Revenue Bonds-2007 Series A Martinelli House Project 6,000,000 1,546,260 Multifamily Housing Revenue Bonds-2007 Series B Martinelli House 1,000,000 82,371 Total $22,295,529 $7,942,679

69 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 8 – NET POSITION AND FUND BALANCE
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net Position is divided into three captions. These captions apply only to Net Position, which is determined only at the Governmentwide level and business type activity and are described on the following page:

Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of Net Position which is restricted to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter.

Unrestricted describes the portion of Net Position which is not restricted to use.

B. Fund Balance
In the fund financial statements, fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities. The City’s fund balances are classified in accordance with generally accepted accounting principles, which require the City to classify its fund balances based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:

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

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

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

Assigned fund balances are amounts constrained by the City’s intent that they be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Manager, as designated by the City Council, and may be changed at the discretion of the City Council or City Manager. This authorization is given through Resolution No. 13173 which adopted the City’s Fund Balance Policy.
70 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
This category includes nonspendables, when it is the City’s intent to use proceeds or collections for a specific purpose; and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.

Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual General Fund balance and residual fund deficits, if any, of other governmental funds.

Detailed classifications of the City’s fund balances, as of June 30, 2024, are below:

Capital Project
Funds
General Fund
Traffic and
Housing
Mitigation Gas Tax
Essential Facilities
Capital Projects
Fund
Other
Governmental
Funds Total
Fund balances:

Nonspendable:

Prepaids $54,250 $3,506 $57,756
Total Nonspendable 54,250 3,506 57,756
Restricted for:

Assessment District capital projects 302,105 302,105
Baypoint Lagoons Assessment District 235,419 235,419
Bedroom tax capital projects 150,530 150,530
Business Improvement District 50,000 50,000
Childcare 1,238,761 1,238,761
Development services 452,761 452,761
Emergency medical services 3,393,029 3,393,029
Streets improvements and maintenance (gas tax) $13,372,829 13,372,829 Grant funded programs 846,685 846,685
Household hazmat facility 582,892 582,892
Library 5,235,352 5,235,352
Library assessment 953,085 953,085
Loch Lomond Assessment District 832,137 832,137
Loch Lomond Assessment District #2 1,092,710 1,092,710
Low and Moderate Income Housing 1,919,845 1,919,845
Measure A - Open Space 1,074,153 1,074,153
Measure C - Wildfire Prevention 1,366,988 1,366,988
Measure E - Public Safety Facility $3,592,590 3,592,590 Measure G - Cannabis 1,037,189 1,037,189
Parkland dedication 366,973 366,973
Public safety 106,487 106,487
Pt. San Pedro - Maintenance Portion 233,894 233,894
Recreation revolving 175,422 175,422
Stormwater 3,916,432 3,916,432
Traffic and housing mitigation $5,914,177 5,914,177
Total Restricted 5,914,177 13,372,829 3,592,590 25,562,849 48,442,445 Committed to:

Capital improvement capital projects 8,180,602 8,180,602 Emergency and cash flow 9,837,000 9,837,000
Park capital projects 28,655 28,655
Total Committed 9,837,000 8,209,257 18,046,257
Assigned to:

Contractual commitments 1,293,274 1,293,274
One-time funds allocated to projects 16,485,000 16,485,000 Infrastructure Reserve 1,000,000 1,000,000
General plan / long range planning 2,058,898 2,058,898
Open space capital projects 121,562 121,562
Total Assigned 20,837,172 121,562 20,958,734
Unassigned:

Economic uncertainty reserve 4,919,000 4,919,000
Unassigned fund balance 767,854 767,854
Total Unassigned 5,686,854 5,686,854
Total Fund Balances $36,415,276 $5,914,177 $13,372,829 $3,592,590 $33,897,174 $93,192,046 Special Revenue Funds
71 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
C. Minimum Fund Balance Policy
The City Council adopted a General Fund Reserve Policy in June 2024 to establish target reserve levels and the methodology for calculating reserve levels. The Policy also establishes criteria for the use of reserves and a process to replenish reserves.

The Policy requires the City to strive to maintain the following fund balances:
1) Emergency and Cash Flow Reserve (15% minimum)
An emergency and cash flow reserve will be maintained for the purposes of (1) sustaining General Fund operations in the case of a public emergency, such as a natural disaster or other unforeseen catastrophic event (10%); and (2) to cover sudden operating shortfalls caused by (a) a severe drop in revenues that cannot be sufficiently offset by a corresponding reduction in expenditures and/or other available resources, or (b) an unforeseen, unavoidable expenditure that must be paid from the General Fund (5%).

This reserve level is measured as a percentage of annual operating expenditures. Budgeted operating expenditures are to be used for the purposes of budget allocations and projections, and actual operating expenditures are to be used for the purpose of measuring this reserve at fiscal year-end. This reserve may be expended only when the City Council determines by resolution that such action is consistent with the purpose and intent of this policy.

In the event the balance in the Emergency and Cashflow Reserve falls below the minimum level, the City Manager, shall recommend a plan to replenish the fund within a timeframe not to exceed three years. This recommendation shall be approved by the City Council no later than the time at which the next annual budget is adopted. Any variance from the stipulations established within this policy shall require approval by the City Council along with a statement of findings supporting the temporary or ongoing modification to this policy.

The required reserve was $14,754,000 at June 30, 2024, and the balance of the reserve, included in the General Fund’s committed and unassigned fund balances were $9,837,000 and $4,919,00, respectively.
2) Other Facilities and Infrastructure
The purpose of the assigned infrastructure reserve is to accumulate funds to be used for the purpose of non-public safety facility construction and major improvements (e.g., library, administrative and non-safety buildings, streets, and the stormwater system). This was $1,000,000 at June 30, 2024.

The General Plan/Long Range Planning reserve included in the General Fund’s assigned fund balance was $2,058,898 at June 30, 2024, which is specifically assigned to the City’s General Plan, a state required plan that must address eight topic areas – Neighborhoods, Community Design, Economic Vitality, Infrastructure, Governance, Culture and Arts, Parks and Recreation and Air and Water Quality.
72 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
D. Net Position Deficit

At June 30, 2024, the Liability Insurance Internal Service Fund had a deficit net position of ($430,496) due to legal fees for increased litigation activity during the year. The City has approved plans to cure the deficit through the adopted FY 2024-25 budget via transfer from the General Fund.

NOTE 9 – PENSION PLAN
A. Plan Description
The City’s defined benefit retirement plan is administered by the Marin County Employees’ Retirement Association (MCERA), a retirement system established in July 1950 and governed by the California Constitution; the County Employees Retirement Law of 1937 (CERL or 1937 Act, California government Code Section 31450 et seq.); the Public Employees’ Pension Reform Act of 2013 (PEPRA, Government Code Section 7522); the provisions of California Government Code Section 7500 et seq; and the bylaws, procedures, and policies adopted by MCERA’s Board of Retirement. The Marin County Board of Supervisors may also adopt resolutions, as permitted by the CERL and PEPRA, which may affect the benefits of MCERA members.

MCERA operates as a cost-sharing multiple employer defined benefit plan for the City and eight other participating employers: County of Marin, Local Agency Formation Commission (LAFCO), Marin City Community Services District, Marin County Superior Court, Marin/Sonoma Mosquito and Vector Control District, Novato Fire Protection District, Southern Marin Fire Protection District and Tamalpais Community Services District. Separate actuarial valuations are performed for these other agencies and districts, and the responsibility for funding their plans rest with those entities. Post-retirement benefits are administered by MCERA to qualified retirees.

Copies of MCERA’s annual financial reports, which include required supplementary information (RSI) for the plan may be obtained from their office at One McInnis Parkway, Suite 100, San Rafael, CA 94903 or online at www.mcera.org.

B. Benefit Provisions
Service Retirement: MCERA’s service retirement benefits are based on the years of credited service, final average compensation, and age at retirement, according to the applicable statutory formula. Members who qualify for service retirement are entitled to receive monthly retirement benefits for life.

General members hired prior to January 1, 2013, are eligible to retire once they attain the age of 50 (except Misc. Tier 2, whereby the minimum age is 55) and have acquired 10 or more years of retirement service credit. A member with 30 years of service is eligible to retire regardless of age.

General members who are first hired on or after January 1, 2013, are eligible to retire once they have attained the age of 52, and have acquired 5 years of retirement service credit, or age 70, regardless of service.

73 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – PENSION PLAN (Continued)
Safety members hired prior to January 1, 2013, are eligible to retire once they attain the age of 50 and have acquired 10 or more years of retirement service credit. A member with 20 years of service is eligible to retire regardless of age. Safety members who are first hired on or after January 1, 2013, are eligible to retire once they have attained the age of 50, and have acquired 5 years of retirement service credit, or age 70, regardless of service.

Disability Retirement: A member with five years of service, regardless of age, who becomes permanently incapacitated for the performance of duty is eligible to apply for a non-service connected disability retirement. Any member who becomes permanently incapacitated for the performance of duty as a result of injury or disease arising out of and in the course of employment is eligible to apply for a service-connected disability retirement, regardless of service length or age.

Death Benefits: MCERA provides specified death benefits to beneficiaries and members’ survivors. The death benefits provided depend on whether the member is active or retired. The basic active member death benefit consists of a members’ retirement contributions plus interest plus one month’s pay for each full year of service (up to a maximum of six month’s pay).

Retiring members may choose from five retirement benefit payment options. Most retirees elect to receive the unmodified allowance which provides the maximum benefit to the retiree and continuance of 60% of the retiree’s allowance to the surviving spouse or registered domestic partner after the retiree’s death. Other death benefits may be available based on the years of service, marital status, and whether the member has minor children.

Cost of Living Adjustment: Retirement allowances are indexed for inflation. Most retirees receive automatic basic cost of living adjustments (COLA’s) based upon the Urban Consumer Price Index (UCPI) for the San Francisco Bay Area. These adjustments go into effect on April 1 of each year. Annual COLA increases are statutorily capped at 2%, 3%, or 4% depending upon the member’s retirement tier. When the UCPI exceeds the maximum statutory COLA for the member’s tier, the difference is accumulated for use in future years when the UCPI is less than the maximum statutory COLA. The accumulated percentage carryover is known as the COLA Bank.

C. Funding Policy
The funding policy of MCERA provides for actuarially determined periodic contributions by the City at rates such that sufficient assets will be available to pay plan benefits when due. The employer rates for normal cost are determined using the Entry Age Normal Actuarial Cost Method, which takes into account those benefits that are expected to be earned in the future as well as those already accrued.

The City contribution rates for the year ended June 30, 2024 were as follows:

Employer Employee
Contribution Rate Contribution Rate Benefit Basis
City of San Rafael Misc Tier 1 48.13% 11.23% - 16.67% 2.7% @ 55 Highest year City of San Rafael Misc Tier 2 48.66% 8.11% -12.31% 2.0% @ 55 Average three highest years City of San Rafael Fire Tier 1 73.64% 14.19% -20.37% 3.0% @ 55 Highest year City of San Rafael Fire Tier 2 72.35% 12.59% -18.53% 3.0% @ 55 Average three highest years City of San Rafael Safety Police Tier 1 72.72% 14.19% -20.37% 3.0% @ 55 Highest year City of San Rafael Safety Police Tier 2 74.28% 12.59% -18.53% 3.0% @ 55 Average three highest years PEPRA Misc 41.66% 9.82% 2.0% @ 62 Average three highest years PEPRA Safety 69.44% 15.41% 2.7% @ 57 Average three highest years

74 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – PENSION PLAN (Continued)
These rates were determined by MCERA, based on the actuarial valuation dated June 30, 2022.

The actual rate of return on investments during that year was -9.6% on a market value basis net of investment expenses, as compared to the prior year’s 6.75% assumption.

The City uses the actuarially determined percentages of payroll to calculate and pay contributions to MCERA. Contributions to the plan from the City were $21,474,137 for the year ended June 30, 2024, based on a total payroll of $51,205,359, of which $36,995,522 represented the basis for the plan contributions. Of the total payroll subject to plan contributions, $1,398,590 is attributable to the San Rafael Sanitation District (SRSD), a component unit of the City.

Effective with the June 30, 2013, valuation, the Unfunded Actuarial Liability (UAL) as of June 30, 2013, is being amortized over a closed 17-year period (8 years remaining as of June 30, 2022), except for the additional UAL attributable to the outstanding unfunded actuarial loss from 2009, which is being amortized over a separate closed period (currently 17 years).

Effective with the June 30, 2014 valuation, any new sources of UAL due to actuarial gains and losses or method changes are amortized over a closed 24-year period, with a 5-year ramp up period at the beginning of the period, a 4-year ramp down at the end of the period, and 15 years of level payments as a percentage of payroll between the ramping periods. This amortization method for gains and losses is similar to a 20-year amortization period with level payments as a percentage of payroll, in conjunction with a traditional 5-year asset smoothing.

Assumption changes are amortized over a closed 22-year period, with a 3-year ramp up period, 2- year ramp down period, and 17 years of level payments as a percentage of payroll.

D. Pension Liability and Pension Expense
The City’s net pension liability (NPL) has been determined for the financial reporting period ended June 30, 2024, based on the following methodology: The City’s NPL as of June 30, 2022, was updated to the measurement date of June 30, 2023 using the actual City’s plan assets as of June 30, 2023, and estimating the change in the City’s liabilities between July 1, 2022, and June 30, 2023. This estimate is based on a projection of the City’s long-term contributions to the pension plan relative to the projected contributions of all participating employers.

The resulting NPL for the City under this calculation is $99,372,216 or 34.41% of the total MCERA NPL of $288,821,503 (reference MCERA’s GASB 67/68 report as of June 30, 2023).

This compares to the previous year’s net pension liability of $105,476,657 or 33.73% of the total MCERA net pension liability of $312,688,342 (reference MCERA’s GASB 67/68 report as of June 30, 2023).

In addition to the reporting of the NPL as of June 30, 2024, the City reported deferred inflows of $17,618,473 and deferred outflows of $60,209,227 as of the measurement date June 30, 2023.

The City reported post-measurement date outflows of $21,474,137 from actual fiscal year 2023- 2024 pension contributions. Deferred outflows include deferred investment gains and adjustments to assumptions based on actual positive results. Deferred outflows have a positive impact on net assets (offsetting the net pension liability) and will be recognized in future reporting periods.

Deferred inflows include deferred investment losses, adjustments to assumptions based on actual negative results, and contributions made after the measurement date. 75 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – PENSION PLAN (Continued)
Deferred inflows have a negative impact on net assets (similar to the NPL) and will be recognized in future reporting periods. The net impact of these pension liability related entries on the City’s Statement of Net Position before allocations to the San Rafael Sanitation District was $56,781,462. After allocations to the San Rafael Sanitation District, the net impact on the City’s Statement of Net Position was $54,768,081
Under generally accepted accounting principles, the City’s pension expense is based on the Plan’s pension expense, adjusted for the City’s actual contributions and net pension liability (asset).

Three components are used to calculate pension expense: (1) changes in the net pension liability; (2) changes in benefit terms (if any): and (3) changes in actuarial assumptions and experience.

Pension expense is calculated using a different methodology than that used to derive the actuarially determined annual contribution to the Plan. Actual pension contributions during the reporting year were $21,474,137. Because pension expense is affected by annual changes in the net pension liability, volatility is to be expected.

The table below provides a summary of the key results during the reporting period:

Measurement Date Measurement Date
Description 6/30/2023 6/30/2022
Net Pension Liability $99,372,215 $105,476,657
Deferred Inflows 17,618,473 24,063,376
Deferred Outflows (38,735,090) (46,954,402)
Impact on Net Position before Deferred Outflows from Contributions 78,255,598 82,585,631 Additional Deferred Outflows - Contributions Subsequent to Measurement Date (21,474,137) (21,446,744) Impact on Statement of Net Position before Allocations 56,781,461 61,138,887 Allocation of Net Pension Liability to SRSD 3,351,534 3,563,252 Allocation of Deferred Inflows (measurement date) to SRSD 594,219 812,918 Allocation of Deferred Outflows (measurement date) to SRSD (1,306,420) (2,310,754) Impact on Net Position before Allocation of Deferred Outflows from Contributions to SRSD 2,639,333 2,065,416
Allocation of Additional Deferred Outflows (Contributions) to SRSD (625,953) (661,444) Long-Term Receivable from SRSD, due to pension obligations (see Note 4G) 2,013,380 1,403,972 Impact on Statement of Net Position, net of receivable from SRSD $54,768,081 $59,734,915 Pension Expense $16,240,173 $4,048,455
Summary of Results
76 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – PENSION PLAN (Continued)
Projection of Total Pension Liability and Net Pension Liability Total Pension Liability (TPL) is the actuarial present value of projected benefit payments attributed to past periods of employee service. MCERA and the City have adopted a measurement date of June 30, 2023. The beginning of year measurement of TPL is based on the actuarial valuation as of June 30, 2022. The TPL at the end of the measurement year, June 30, 2023, is also measured as of the valuation date of June 30, 2022 and projected to June 30, 2023.

The Plan Fiduciary Net Position (FNP) is the fair or market value of assets. The FNP at the beginning of the year is based on the actuarial valuation as of June 30, 2022. The FNP at the end of the measurement year, June 30, 2023, is also measured as of the valuation date of June 30, 2022, and projected to June 30, 2023.

The Net Pension Liability (NPL) is the City’s liability (asset) for benefits provided through its defined benefit plan administered by MCERA. It is calculated by reducing the TPL by the FNP. The longterm portion of the governmental activities’ NPL is liquidated primarily by the General Fund.

Actuarial assumptions:

The total pension liability as of June 30, 2023 (measurement date) was determined by an actuarial valuation as of June 30, 2022, using the following actuarial assumptions applied to all prior periods included in the measurement.

Expected Return on Assets 6.75% per year, net of investment expenses Discount Rate 6.75% per year
Price Inflation 2.50% per year
Salary Increases 3.00% per year plus merit component based on employee classification and years of service.

Administrative Expenses Administrative expenses in the actuarial valuation are assumed to be $5.2788 million for FY 2022-23, to be split between employees and employers based on their share of the overall contributions.

Administrative expenses shown in this report are based on the actual FY 2022-23 amounts.

Post-Retirement COLA Post-retirement COLAs are assumed at a rate of 2.5% for members with a 4% COLA cap, 2.4% for members with a 3% COLA cap, and

1.9% for members with a 2% COLA cap.

Mortality Rates for Mortality rates for Miscellaneous active members are based on the Healthy Members sex distinct Public General 2010 Employee Mortality Table, with and Inactives 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.

77 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – PENSION PLAN (Continued)
Mortality Rates for Rates of mortality for Miscellaneous disabled members are based Retired Disabled on the sex distinct Public General 2010 Disabled Retiree Mortality Members 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.

Asset Allocation Policy and Expected Long-Term Rate of Return by Asset Class The Board of Retirement has adopted an Investment Policy Statement (IPS), which provides the framework for the management of MCERA’s investments. The IPS establishes MCERA’s investment objectives and defines the principal duties of the Retirement Board, the custodian bank, and the investment managers. The asset allocation plan is an integral part of the IPS and is designed to provide an optimum and diversified mix of asset classes with return expectations to satisfy expected liabilities while minimizing risk exposure. MCERA currently employs external investment managers to manage its assets subject to the provisions of the policy. Plan assets are managed on a total return basis with a long term objective of achieving and maintaining a fully funded status for the benefits provided through the Plan.

The following was the Retirement Board’s adopted asset allocation policy as of June 30, 2023:

Long-Term
Expected Rate
Target Long-Term Expected of Return
Asset Class Allocation Real Rate of Return (with the effect of inflation) Domestic Equity 32% 4.85% 7.35%
International Equity 22% 4.95% 7.45%
Fixed Income 23% 1.75% 4.25%
Public Real Assets 7% 3.70% 6.20%
Real Estate 8% 3.25% 5.75%
Private Equity 8% 6.00% 8.50%
Total 100%
The Long-Term returns are calculated using a 10-year geometric return derived from arithmetic returns and the associated risk (standard deviation).

Determination of Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. Related to the discount rate is the funding assumption that employees will continue to contribute to the plan at the required rates and employers will continue the historical and legally required practice of contributing to the plan based on an actuarially determined contribution, reflecting a payment equal to annual normal cost, a portion of the expected administrative expenses, an amortization payment for the extraordinary losses from 2009 amortized over a closed period (16 years remaining as of the June 30, 2022 actuarial valuation), and an amount necessary to amortize the remaining Unfunded Actuarial Liability as a level percentage of payroll over a closed period (8 years remaining as of the June 30, 2022 actuarial valuation).
78 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – PENSION PLAN (Continued)
A change in the discount rate would affect the measurement of the TPL. A lower discount rate results in a higher TPL whereas a higher discount rate results in a lower TPL. Because the discount rate does not affect the measurement of assets, the percentage change in the NPL can be significant for a relatively small change in the discount rate.

The table below shows the sensitivity of the Net Pension Liability (Asset) to a one percent decrease and a one percent increase in the discount rate:
1% Discount 1%
Decrease Rate Increase
Description 5.75% 6.75% 7.75%
Total Pension Liability $1,332,239,715 $1,181,328,195 $1,056,760,230 Fiduciary Net Position 1,081,955,979 1,081,955,979 1,081,955,979 Net Pension Liability (Asset) $250,283,736 $99,372,216 ($25,195,749)

81.2% 91.6% 102.4%
Fiduciary Net Position as a
Percentage of the Total Pension Liability
Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Pension Resources
The impact of experience gains or losses and assumption changes on the Total Pension Liability (TPL) are recognized in the proportionate share of the pension expense over the average expected remaining service life of all active and inactive members of the plan. As of the measurement date, this recognition period was 4 years.

The following tables show the current balance and sources of deferred outflows and inflows related to the City’s defined benefit retirement plan, and the scheduled recognition of these deferred amounts:

Deferred Deferred
Outflows of Inflows of
Description Resources Resources
Differences between expected and actual experience $1,629,361 $2,969,826 Changes in assumptions 2,896,521
Change in proportion 6,366,684 10,217,140
Difference between City contributions and proportionate share of contributions 4,431,507
Actual FY 23-24 contributions (post measurement date) 21,474,137 Net difference between projected and actual earnings
on pension plan investments 27,842,524
Deferred Inflows and Outflows Before Allocations $60,209,227 $17,618,473 Allocation of Deferred Inflows and Outflows to SRSD
As of measurement date $1,306,420 $594,219
Post-measurement date 625,953
Net Deferred Inflows and Outflows $58,276,854 $17,024,254 79 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – PENSION PLAN (Continued)
The $21,474,137 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Amortization
Year ended June 30 Amount
2025 ($5,032,158)
2026 (9,512,017)
2027 36,104,739
2028 (443,947)
Total $21,116,617
NOTE 10 – PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION

RETIREMENT PLAN)
The City contributes to the Public Agency Retirement System (PARS), which administers a defined contribution retirement plan. A defined contribution retirement plan provides retirement benefits in return for services rendered, provides an individual account for each participant, and specifies how contributions to the individual’s accounts are determined instead of specifying the amount of benefits the individual is to receive. The benefits a participant will receive depend on the amount contributed to the participant’s account, and the returns earned on investments on those contributions. The Plan’s trust administrator is Phase II, P.O. Box 12919, Newport Beach, California 92658.

As established by the plan, all eligible part-time and temporary employees of the City become participants in the plan from the date that they are hired. An eligible employee is any employee who, at any time during which the employer maintains this plan, is not accruing a benefit under the Marin County Employees’ Retirement Fund.

As determined by the plan, each employee must contribute 3.75% of gross earnings to the plan. The City contributes an additional 3.75% of the employee’s gross earnings. Contributions made by an employee and the employer vest immediately.

During the year, the City and employees each contributed $149,761. The total covered payroll of employees participating in the plan for the year ended June 30, 2024, was $3,993,627.

80 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS
Plan Description
The City provides certain health care benefits for retired employees and their spouses under an Agent Multiple-Employer Defined Benefit Plan. The benefit provisions were established under the authority of the 1937 Act, Section 31450, et. seq. of the Government Code. Employees who meet the vesting criteria become eligible for these benefits if they receive a retirement benefit from the Marin County Employees’ Retirement Association within 120 days of retirement from City employment.

The provisions and benefits of the City’s Other Post Employment Benefit Plan, in effect at June 30, 2024, are summarized as follows:

Elected Officials, Mid-Management, & Unrepresented
Management All other Bargaining Units
Eligibility
- CLASSIC
-Age 50 (age 55 if hired > 7/1/11) with 10 years services (Including reciprocity) OR -
-Age 70
- PEPRA
-Age 50 (age 52 for Miscellaneous) with 5 years of service (including reciprocity ) OR -Age 70
- Disability Retirement
Benefit Hired < 1/1/09 Full premium/cap Hired < 1/1/10 Up to cap Hired ≥ 1/1/09 PEMHCA Min Hired ≥ 1/1/10 PEMHCA Min
Surviving Spouse
Benefit Continuation to surviving spouse
Medicare Part B Hired < 4/1/07 Full reimbursement None
Hired ≥ 4/1/07 None
Other No Dental, Vision, or Life Benefits
Retire directly from the City:
30 years service (Miscellaneous), 20 years service (Safety) OR Membership in the plan consisted of the following at June 30, 2023, the measurement date:

Active plan members 340
Inactive employees or beneficiaries currently
receiving benefit payments 370
Inactive employees entitled to but not yet
receiving benefit payments 85
Total 795
Funding Policy and Actuarial Assumptions
The City’s net OPEB liability was measured using a Total OPEB Liability and Fiduciary Net Position measured as of June 30, 2023, using an actuarial valuation as of June 30, 2023. The following actuarial assumptions were used in the valuation: (a) 6.25% investment rate of return and (b) 2.50% of general inflation increase, and (c) a healthcare trend of declining annual increases ranging from 8.50% in 2025 to 3.45% for the years starting 2076. In addition, the fixed dollar benefit amounts are assumed to be held flat in the future and the premium related benefits are assumed to increase with the healthcare trend rate.

81 I
I
I

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) The actuarial assumptions used in the June 30, 2023 valuation were based on the results of an actuarial experience study for the period July 1, 2022 through June 30, 2023.

The long-term expected rate of return on OPEB plan investments was determined using a buildingblock method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Long-Term
Expected
Long-Term Rate of Return
Target Expected (with the effect
Asset Class Allocation Real Rate of Return of inflation) Public Equity 49% 4.56% 7.06%
Fixed Income 23% 1.56% 4.06%
TIPS 5% -0.08% 2.42%
Commodities 3% 1.22% 3.72%
REITs 20% 4.06% 6.56%
Total 100%
Assumed Long-Term Rate of Inflation 2.50%
Assumed Long-Term Investment Expenses n/a
Expected Long-Term Net Rate of Return 6.25%
Discount Rate 6.25%
The Expected Long-Term Rate of Return is provided by CERBT – Strategy 1.

82 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) Discount Rate
The discount rate used to measure the total OPEB liability was 6.25%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be sufficient to make projected benefit payments and the plan assets are expected to be invested using the strategy to achieve the expected return.

Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 (6/30/22 measurement date) $48,454,000 $25,367,000 $23,087,000 Changes Recognized for the Measurement Period:

Service Cost 582,000 - 582,000
Interest on the total OPEB liability 2,966,000 - 2,966,000 Difference between expected and actual experiece (3,269,000) - (3,269,000) Change of assumptions 2,278,000 - 2,278,000
Contributions from the employer - 3,183,000 (3,183,000) Net investment income - 1,629,000 (1,629,000)
Administrative expenses - (18,000) 18,000
Benefit payments and refunds (3,172,000) (3,172,000) -
Net Changes during July 1, 2023 to June 30, 2024 (615,000) 1,622,000 (2,237,000) Balance at June 30, 2024 (6/30/23 measurement date) $47,839,000 $26,989,000 $20,850,000 Increase (Decrease)
The benefit payments and refunds include implied subsidy benefit payments in the amount of $738,000.

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.25 percent) or 1-percentage-point higher (7.25 percent) than the current discount rate:

Discount Rate -1% Current Discount Discount Rate +1%
(5.25%) Rate (6.25%) (7.25%)
$26,072,000 $20,850,000 $16,433,000
Plan's Net OPEB Liability/(Asset)

83 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current rates.

Healthcare Cost
Trend Rate -1% Trend Rates Trend Rate +1%
$17,948,000 $20,850,000 $24,316,000
Plan's Net OPEB Liability/(Asset)
Detailed information about the OPEB plan’s fiduciary net position is available in the separately issued plan financial report. That report may be obtained from the California Public Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, CA, 94229.

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources related to OPEB
Components of OPEB Expense for fiscal year 2023-2024 were as follows:

Service Cost $582,000
Interest on Total OPEB Liability 2,966,000
Projected earning on investments (1,585,000)
Administrative expense 18,000
Recognition of deferred outflows/inflows:

Experience (1,769,000)
Assumptions 380,000
Asset Returns 351,000
OPEB Expense $943,000

84 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) Components of deferred outflows of resources and deferred inflows of resources related to OPEB at June 30, 2024 were as follows:

Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Changes of assumptions $3,173,868 $52,132 $3,226,000
Net difference between projected and
actual earnings on plan investments 1,617,433 26,567 1,644,000 Employer contributions made subsequent
to the measurement date 3,198,464 52,536 3,251,000
Total deferred outflows of resources $7,989,765 $131,235 $8,121,000 Deferred inflows of resources:

Differences between expected and actual
experience $5,022,503 $82,497 $5,105,000
Changes of assumptions 368,940 6,060 375,000
Total deferred inflows of resources $5,391,443 $88,557 $5,480,000 The difference between projected OPEB plan investment earnings and actual earnings is amortized over a five-year period. The remaining gains and losses are amortized over the expected average remaining service life.
$3,251,000 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as future OPEB expense as follows:

Amortized
Yea Ended June 30 Amount
2025 ($861,000)
2026 (205,000)
2027 795,000
2028 (174,000)
2029 (165,000)
($610,000)
85 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) The table below provides a summary of the key results during this reporting period.

Measurement Date Measurement Date
Description June 30, 2023 June 30, 2022
Net OPEB Liability $20,850,000 $23,087,000
Deferred Inflows 5,480,000 4,452,000
Deferred Outflows (4,870,000) (3,839,000)
Impact on Net Position before deferred contributions 21,460,000 23,700,000 Additional Deferred Outflows - Contributions subsequent to measurement date (3,251,000) (3,183,000) Impact on Statement of Net Position before Allocations 18,209,000 20,517,000 Allocation of NOL to SRSD 514,912 674,000
Allocation of Deferred Inflows (measurement date) to SRSD 135,334 129,971 Allocation of Deferred Outflows (measurement date) to SRSD (120,270) (112,075) Impact on Net Position before deferred contributions to SRSD 529,976 691,896 Allocation of Additional Deferred Outflows (contributions) to SRSD (80,287) (92,924) Long-Term Receivable from SRSD, due to OPEB obligations (see Note 4G) 449,689 598,972 Impact on Statement of Net Positions, net of receivable from SRSD $17,759,311 $19,918,028 OPEB Expense $943,000 $889,000
Covered Employee Payroll $43,603,000 $42,604,000
Summary of Results
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS
The City participates in the jointly governed organizations discussed below through formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each joint organization is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective joint organization, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities of this joint organization are not the City’s responsibility and the City does not have an equity interest in the assets of each joint organization except upon dissolution of the joint organization.

86 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
A. The Marin County Integrated On-Line Library System (System) The MARINet Library Consortium was formed to provide for the procurement, ownership, operation, maintenance, and governance of shared library services among the libraries, public and academic, in Marin County. Current services shared and paid for on a consortia level through annual membership dues include an integrated library system including patron database, cataloging system, and online catalog of materials; delivery of items between libraries in Marin, a statewide library delivery service called Link+, numerous online resources, and more. The Governing Board of the System consists of the library director or designated alternate of each participant in the System. In accordance with the cost sharing formula developed by the library directors of the participants, the City’s share of annual operating costs was $333,316 for the year ended June 30, 2024. Financial statements of the System can be obtained from the County Librarian, Marin County Free Library at 1401 Los Gamos Drive, Suite 200, San Rafael, California 94903.

B. The Marin General Services Authority (MGSA)
The MGSA was formed by the County of Marin and twelve local agencies to acquire street light facilities, operate the facilities during an eminent domain action against PG&E, and coordinate the subsequent transfer of the facilities to the individual local agencies. Each of the local agency’s share of contributions was based on the number of streetlights to be acquired in the local agency’s individual jurisdiction in relation to the total number of streetlights to be acquired by the Marin Streetlight Acquisition Joint Powers Authority. MGSA services now include street light maintenance, abandoned vehicle abatement, taxicab regulation, administrative responsibility for MarinMap and the CATV program formerly administered by the Marin Telecommunications Authority established to regulate the rates for cable television service and equipment. The City’s contribution to MGSA was $876,716 for the year ended June 30, 2024. Financial statements of the MGSA can be obtained at 900 Fifth Avenue, Suite 100, San Rafael, California 94901.

C. The Marin Emergency Radio Authority (MERA)
MERA was formed on February 28, 1998, by the County of Marin and 25 local agencies within the County to plan, finance, implement, manage, own, and operate a County-wide public safety and emergency radio system. The Governing Board consists of one representative from each member. The members entered into a Project Operating Agreement on February 1, 1999.

On February 1, 1999, the members entered into an Operating Agreement whereby members are obligated to contribute service payments to cover the Authority’s operations and debt service. The City’s portion of the obligation is 16.913%. The City contributed $503,170 of the Authority’s operations and debt service for the fiscal year ended June 30, 2024. The City has established a reserve in its internal service funds to pay future service payments. Financial statements of the MERA can be obtained at 95 Rowland Way, Novato, California 94945. 87 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
D. The Marin County Hazardous and Solid Waste Joint Powers Authority The Authority was established by the County, local cities, and waste franchising districts to finance, prepare, and implement source reduction and recycling elements on a county-wide integrated waste management plan as required by State Assembly Bill 939. The City’s contribution to the Authority was $19,680 for the year ended June 30, 2024. Financial statements of the Authority can be obtained at 3501 Civic Center Drive, San Rafael, California 94903.

E. Central Marin Sanitation Agency (CMSA)
In October 1979, the District entered into a joint powers agreement with three neighboring sanitation agencies in central Marin County forming the Central Marin Sanitation Agency (CMSA). CMSA serves as a regional wastewater treatment plant for its four member agencies and San Quentin Prison (SQ) and is governed by a five-member Board of Commissioners, two appointed by the Board of Directors of the District, two appointed by the governing board of the Ross Valley Sanitary District, and one appointed by the governing board of Sanitary District No. 2 (SD 2).

Total project costs for the joint venture were funded from federal (75%) and state (12.5%) clean water grants and from local shares (12.5% total) allocated among the member agencies and SQ based upon the weighted average of the strength and volume of sewage flows per member at inception of the project. CMSA derives its annual funding for its operations and capital programs almost exclusively from service charges to member agencies. The joint powers agreement does not provide an explicit measurable right as required to establish an equity interest for any of the joint venture participants, and in addition to, stipulates that all excess capital funds, if any, and all excess administration, operations, and maintenance funds from whatever source, if any, are the property of CMSA.

The financial statements of the CMSA are available at the CMSA office at 1301 Anderson Drive, San Rafael, California 94901 and online at www.cmsa.us.

NOTE 13 – RISK MANAGEMENT
A. City
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City established the Risk Management Internal Service Fund to account for and finance its uninsured risks of loss.

The City manages risk by participating in a public entity risk pool (described below), purchasing insurance and by retaining certain risks.

88 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 13 – RISK MANAGEMENT (Continued)
Risk Coverage
Liability Coverage
The City is a member of the California Joint Powers Risk Management Authority (CJPRMA) which covers general liability claims up to $40,000,000. The purpose of CJPRMA is to spread the adverse effects of general liability losses among the member agencies. The City also purchases commercial insurance for property damage claims with an insured amount of $173,243,921 The City is self-insured up to $750,000 for each general liability claim and $25,000 for each property damage claim. Once the self-insured retention is met, CJPRMA becomes responsible for payment of all liability claims up to the limit. The City contributed a total of $1,474,860 in liability coverage premiums during the fiscal year ended June 30, 2024. Five years after settlement of all general liability claims for a program year, CJPRMA will retroactively adjust premium deposits for any excess or deficiency in deposits related to paid claims and reserves. Financial statements for the risk pool may be obtained from CJPRMA at 3201 Doolan Road, Suite 285, Livermore, California 94551.

Workers’ Compensation Coverage
The City purchases insurance for workers’ compensation through Safety National Casualty Corporation Excess Workers’ Compensation and Employers Liability Insurance with coverage up to statutory limits. The City is self-insured up to $1,000,000 for each worker’s compensation claim.

Insurance Internal Service Funds and Financial Reporting The City records estimated liabilities for claims filed up to the amounts for which it retains risk in the General Liability and Workers Compensation Internal Service Funds. Charges to the General Fund and other funds are based on relative general liability and workers compensation risk associated with the activities of each fund. Charges are recorded in the funds as expenditures or expenses and as revenues in the respective internal service funds.

Generally accepted accounting principles require municipalities to record the liability for uninsured claims and to reflect the current portion of this liability as an expenditure in the financial statements. As discussed above, the City has coverage for such claims, but it has retained the risk for the deductible or uninsured portion of these claims.

The City’s liability for uninsured general liability claims and workers’ compensation claims, including claims incurred but not reported, are reported in the Statements of Net Position. The City’s present value liability for uninsured claims below include a provision for claims incurred but not reported using a discount rate of 2%.

89 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 13 – RISK MANAGEMENT (Continued)
General Workers' Totals, as of June 30
Liability * Compensation * 2024 2023
Balance, beginning of year $4,663,376 $11,123,322 $15,786,698 $15,601,722 Current year claims and changes
in estimates 1,257,954 1,060,089 2,318,043 3,856,916
Claims paid (2,580,559) (1,022,320) (3,602,879) (3,671,940) Balance, end of year $3,340,771 $11,161,091 $14,501,862 $15,786,698 Due in one year $960,679 $2,428,483 $3,389,162 $2,886,630 Due in more than one year 2,380,092 8,732,608 11,112,700 12,900,068 Total claim liabilities $3,340,771 $11,161,091 $14,501,862 $15,786,698 * Liability based on an actuarial valuation as of December 31, 2023, extrapolated to June 30, 2024.

The claims settlements have not exceeded insurance coverage for the past three years.

B. District
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and natural disaster. The District participates in a joint powers agreement with other entities forming the California Sanitation Risk Management Authority (CSRMA), a public entity risk pool operating as a common risk management and insurance program for 60 member entities. CSRMA is governed by a Board of Directors composed of one representative from each member agency and meets three times per year in conjunction with conferences of the California Association of Sanitation Agencies. The Board controls the Note 1 operations of CSRMA, including selection of management and approval of operating budgets, independent of any influence by member entities.

The District pays annual premiums to CSRMA for its primary insurance and property insurance programs. Primary and property insurance programs are fully insured wherein CSRMA purchases insurance as a group thereby reducing its costs. CSRMA provides both fully insured and pooled insurance programs for its participating member entities. Because all employees of the District are contracted employees from the City of San Rafael, workers’ compensation insurance is not carried by the District but is provided through the City.

CSRMA’s primary and property insurance programs transfer risk to commercial insurance policies for claims above deductibles, while the District retains risk for claims to the extent of deductibles. Settled claims for the District have not exceeded coverage provided by CSRMA in any of the past three fiscal years.

90 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 13 – RISK MANAGEMENT (Continued)
The following summarizes active insurance policies as of June 30, 2024 together with coverage limits for each insured event:

Insurance Program Limits Coverage Description
CSRMA - Midvale Indemnity. $3,000,000 Gen/Mgt liability - aggregate CSRMA - Midvale Indemnity. $1,000,000 Gen/Mgt liability - occurrence CSRMA - Midvale Indemnity. $1,000,000 Auto liability - accident CSRMA - Midvale Indemnity. $4,000,000 Excess liability
CSRMA - Public Entity Property
Insurance Program (P.E.P.I.P.) $26,846,560 Special form property CSRMA - Interstate Fire & Cas. $25,000,000 Pollution liability - tier 1 CSRMA - Interstate Fire & Cas. $2,000,000 Pollution liability - tier 2 CSRMA - Lloyds of London $2,000,000 Cyber liability - third party CSRMA - Lloyds of London $2,000,000 Cyber liability - first party CSRMA - Travelers Ins. $25,000 Identity theft
CSRMA - Lloyds of London $2,500,000 Deadly weapons - aggregate The financial statements of CSRMA are available at their office: 100 Pine Street, 11th Floor, San Francisco, California 94111.

NOTE 14 – LEASE AND SUBSCRIPTION LIABILITIES
A. Lease Liabilities
A summary of governmental activities lease transactions for the fiscal year ended June 30, 2024, are as follows:

Balance Balance Current
June 30, 2023 Additions Retirements June 30, 2024 Portion Governmental Activities
Lease Liabilities
Fire Station 57 Land Lease $5,479,943 ($5,540) $5,474,403 $10,875 Copier Equipment Leases 98,192 $220,385 (93,158) 225,419 68,525 Police Equipment Leases 755,922 (50,353) 705,569 101,334 Total $5,578,135 $976,307 ($149,051) $6,405,391 $180,734 On June 21, 2016, the City entered into a lease agreement as lessee with the County of Marin to lease property for constructing Fire Station # 57 for a 40-year term, ending on June 30, 2056. The City is required to make monthly principal and interest lease payments in the amount of $13,343 commencing July 1, 2021. The monthly lease payments are increased annually in the amount of 3% every July 1. As of June 30, 2024, the balance of the lease liability was $5,474,403 and the net value of the right-to-use asset was $5,006,829, including accumulated amortization of $469,390.

91 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 14 – LEASE AND SUBSCRIPTION LIABILITIES (Continued) The City has entered into five separate equipment lease agreements as a lessee for copiers with various vendors. The lease terms vary from 3-5 years and interest is implicit in the lease agreements in the amount of 5%. The City is required to make monthly or yearly principal and interest lease payments in varying amounts ranging from $765 to $52,975, depending on the lease. As of June 30, 2024, the balance of the lease liability was $225,419 and the net value of the right-to-use asset was $213,259, including accumulated amortization of $257,180.

In fiscal year 2024, the City has entered into two separate equipment lease agreements as a lessee for police equipment with different vendors. The lease terms vary from 4-10 years and interest is implicit in the lease agreements in the amount of 5%. The City is required to make monthly or yearly principal and interest lease payments in varying amounts ranging from $57,500 to $77,592, depending on the lease. As of June 30, 2024, the balance of the lease liability was $705,569 and the net value of the right-to-use asset was $704,187, including accumulated amortization of $51,735. The future principal and interest lease payments as of June 30, 2024 are as follows:

For the Year
Ended June 30 Principal Interest Total
2025 $180,734 $210,216 $390,950
2026 169,137 201,736 370,873
2027 169,491 193,528 363,019
2028 125,671 185,417 311,088
2029 84,229 179,619 263,848
2030-2034 607,892 834,939 1,442,831
2035-2039 523,517 724,815 1,248,332
2040-2044 821,973 625,186 1,447,159
2045-2049 1,202,724 474,930 1,677,654
2050-2054 1,684,495 260,366 1,944,861
2055-2058 835,528 26,551 862,079
Totals $6,405,391 $3,917,303 $10,322,694
B. Subscription-Based Information Technology Liabilities A summary of subscription-based information technology arrangements (SBITA) transactions for the fiscal year ended June 30, 2024, are as follows:

Balance Balance Current
June 30, 2023 Additions Retirements June 30, 2024 Portion Governmental Activities
Subscription liabilities
Axon $368,671 ($368,671)
Microsoft 918,174 (166,166) $752,008 $174,474
SeeClickFix 55,000 (55,000)
OpenGov $290,380 (87,115) 203,265 96,552
MioVision 167,652 (79,635) 88,017 88,017
Axon 2 1,374,990 1,374,990 129,395
Total $1,341,845 $1,833,022 ($756,587) $2,418,280 $488,438 92 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 14 – LEASE AND SUBSCRIPTION LIABILITIES (Continued) On March 7, 2019, the City entered into a subscription agreement with Axon Enterprise, Inc. for a subscription with a 5 year term. The City was required to make yearly subscription payments ranging from $24,049 to $83,857 throughout the life of the subscription, which was scheduled to end on December 31, 2029. On April 15, 2024, the City entered into a modified subscription agreement with Axon Enterprise, Inc. for a subscription with a new 5 year term and 5 year renewal option. Interest is implicit in the subscription agreement in the amount of 5%. As of June 30, 2024, the balance of the subscription liability was $1,374,990 and the net value of the rightto-use asset was $1,374,990, including accumulated amortization of $0.

On August 9, 2022, the City entered into a subscription agreement with Microsoft for a subscription with a 6 year term. The City is required to make yearly subscription payments of $212,075 throughout the life of the subscription, which ends on August 31, 2028. Interest is implicit in the subscription agreement in the amount of 5%. As of June 30, 2024, the balance of the subscription liability was $752,008 and the net value of the right-to-use asset was $720,446, including accumulated amortization of $360,223.

On February 23, 2022, the City entered into a subscription agreement with the SeeClickFix, Inc. for a subscription with a 2 year term. The City is required to make yearly subscription payments ranging from $55,000 to $57,750 throughout the life of the subscription, which ends on August 24, 2024. As of June 30, 2024, the balance of the subscription liability was $0 and the net value of the right-to-use asset was $0, including accumulated amortization of $104,762.

On February 1, 2024, the City entered into a subscription agreement with the OpenGov, Inc. for a subscription with a 3 year term. The City is required to make yearly subscription payments ranging from $101,633 to $112,050 throughout the life of the subscription, which ends on January 31, 2027. As of June 30, 2024, the balance of the subscription liability was $203,265 and the net value of the right-to-use asset was $524,308, including accumulated amortization of $0.

On November 29, 2023, the City entered into a subscription agreement with the Miovision Technologies Incorporated. for a subscription with a 2 year term. The City is required to make yearly subscription payments ranging from $88,017 to $92,418 throughout the life of the subscription, which ends on April 25, 2025. As of June 30, 2024, the balance of the subscription liability was $88,017 and the net value of the right-to-use asset was $83,826, including accumulated amortization of $83,826.

The future subscription and interest subscription payments as of June 30, 2024 follows:

For the Year
Ended June 30 Principal Interest Total
2025 $488,438 $120,914 $609,352
2026 395,270 96,492 491,762
2027 302,984 76,729 379,713
2028 318,133 61,579 379,712
2029 121,965 45,673 167,638
2030 - 2034 791,490 125,221 916,711
Totals $2,418,280 $526,608 $2,944,888
93 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 15 – COMMITMENTS AND CONTINGENCIES
A. City Litigation
The City is a defendant in several lawsuits arising from its normal operations. City management is of the opinion that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the basic financial statements of the City.

B. District
As of June 30, 2024, SRSD had several contracts for sewer improvement projects with remaining obligations of approximately $3,000,000.

NOTE 16 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE

TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES
A. Redevelopment Dissolution
In an effort to mitigate its budget deficit, the State of California adopted ABx1 26 on June 28, 2011, amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved redevelopment agencies on January 31, 2012.

The suspension provisions prohibited all redevelopment agencies from a wide range of activities, including incurring new indebtedness or obligations, entering into, or modifying agreements or contracts, acquiring, or disposing of real property, taking actions to adopt or amend redevelopment plans and other similar actions, except actions required by law or to carry out existing enforceable obligations, as defined in ABx1 26.

In addition, ABx1 26 and AB1484 directed the State Controller to review the activities of all redevelopment agencies and successor agencies to determine whether an asset transfer between an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did occur and the public agency that received the asset is not contractually committed to a third party for the expenditure or encumbrance of the asset, the legislation requires the State Controller to order the asset returned to the redevelopment agency. This review was performed in May 2013, and a report issued on July 29, 2013 (see section B of this footnote).

The City elected to become the Successor Agency to the Redevelopment Agency, and on February 1, 2012, the Redevelopment Agency’s remaining net assets were distributed to the Successor Agency. ABx1 26 requires the establishment of an Oversight Board to oversee the activities of the Successor Agency and one was established on April 2, 2012. On July 1, 2018, the County of Marin formed a county-wide Oversight Board to oversee the activities of all Successor Agencies within the County, including San Rafael. The activities of the Successor Agency are subject to review and approval of the Oversight Board, which is comprised of seven members.

The activities of the Successor Agency are reported in the Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency.
94 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 16 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
Pursuant to the dissolution of the City of San Rafael Redevelopment Agency, certain assets of the Redevelopment Agency were distributed to the Housing Successor and all remaining Redevelopment Agency assets and liabilities were distributed to the Successor Agency.

The City elected to become the Housing Successor and on February 1, 2012. Assets and Liabilities relating to the Housing Successor are reported in the City’s Low and Moderate Income Housing Special Revenue Fund.

B. Redevelopment Property Tax Trust Fund (RPTTF)
The Successor Agency’s primary source of revenue comes from the RPTTF allocation distributed by the County. Property tax revenues for each Project Area are deposited into the RPTTF, which redistributes each Project Area’s tax increment under specified formulas. The County Auditor administers the RPTTF and disburses twice annually from this fund pass-through payments to affected taxing entities, an amount equal to the total of obligation payments that are required to be paid from tax increment as denoted on the Recognized Obligation Payment Schedule (“ROPS”).

The disbursements are established in the treasury of the Successor Agencies, and various allowed administrative fees and allowances. Any remaining balance is then distributed by the County Auditor back to affected taxing entities under a prescribed method that accounts for pass-through payments. The County Auditor is also responsible for the distributing other monies received from the Successor Agency (from sale of assets, etc.) to the affected taxing entities. Successor agencies in turn will use the amounts deposited into their respective funds to make payments for principal and interest on loans and monies advanced to or indebtedness incurred by the dissolved redevelopment agencies.

C. State Approval of Enforceable Obligation
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi-annually that contains all proposed expenditures for the subsequent six-month period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance. As of June 30, 2023, the Successor Agency had prepared sixteen ROPS, all of which have been approved by the Oversight Board and the California Department of Finance. The Department of Finance has stated that all items on a future ROPS are subject to a subsequent review. The amount, if any, of current obligations that may be denied by the Department of Finance cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

NOTE 17 – SUBSEQUENT EVENT
A. Household Hazardous Waste Program
In September 2024, the City transferred the Household Hazardous Waste Program to the County of Marin. As a result, the City transferred program funds in the amount of $582,892 to the County.
95 CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
Measurement date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 City's proportionate share 30.0453% 36.7394% 34.9538% 32.7180% 33.4752% Proportionate share of total pension liability $677,753,565 $907,195,058 $900,629,287 $878,483,703 $947,923,920 Proportionate share of fiduciary net position 603,499,779 764,871,931 733,574,437 757,834,016 837,356,062 Proportionate share of the net pension liability $74,253,786 $142,323,127 $167,054,850 $120,649,687 $110,567,858 Plan fiduciary net position as a percentage of the total pension liability 89.04% 84.31% 84.31% 86.27% 88.34% Covered payroll (report date) $28,563,328 $31,073,560 $32,126,272 $32,885,135 $36,349,651 Net pension liability as a percentage of covered payroll 259.96% 458.02% 519.99% 366.88% 304.18% Measurement date 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 City's proportionate share 36.6081% 34.3574% 29.6650% 33.7322% 34.4061% Proportionate share of total pension liability $1,082,900,638 $1,059,269,505 $959,104,784 $1,120,775,111 $1,181,328,195 Proportionate share of fiduciary net position 949,023,107 901,989,929 1,007,281,093 1,015,298,454 1,081,955,979 Proportionate share of the net pension liability (asset) $133,877,531 $157,279,576 ($48,176,309) $105,476,657 $99,372,216 Plan fiduciary net position as a percentage of the total pension liability 87.64% 85.15% 105.02% 90.59% 91.59% Covered payroll (report date) $33,106,430 $32,887,922 $31,697,590 $34,418,052 $35,543,480 Net pension liability (asset) as a percentage of covered payroll 404.39% 478.23% -151.99% 306.46% 279.58% * - The fiscal year ended June 30, 2015 was the first year of implementation.

Cost-Sharing Multiple Employer Plan
Schedule of the City's Proportionate Share of the Net Pension Liability Last 10 years*
97 CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
Fiscal year ended, June 30 2015
Contractually required contribution $17,802,358
Contributions in Relation to the
Contractually required contribution 17,802,358
Contribution Deficiency/ (Excess) $0
Covered payroll $31,073,560
Contributions as a percentage of
covered payroll 57.29%
Notes to Schedule
Valuation Date / Timing 6/30/2013 (for contributions made in FY2014-2015) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2014-15):

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
Fiscal year ended, June 30 2016
Contractually required contribution $19,339,577
Contributions in Relation to the
Contractually required contribution 19,339,577
Contribution Deficiency/ (Excess) $0
Covered payroll $32,126,272
Contributions as a percentage of
covered payroll 60.20%
Notes to Schedule
Valuation Date / Timing 6/30/2014 (for contributions made in FY2015-2016) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2015-16):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Actuarial Loss from 2009 Remaining Amortization period Unfunded liability - 16 years / Extraordinary Actuarial Loss - 24 years Asset valuation method 5-year smoothed market, 80% /120% corridor around market Inflation 3.25%
Salary increases 3.25% plus merit component based on employee classification and years of service Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality CalPERS 2014 Pre-Retirement Non-Industrial Death rates (plus Duty-Related Death rates for Safety Members), with the 20-year static projection used by CalPERS replaced by generational improvements from a base year of 2009 using Scale MP-2014 Disabled Mortality CalPERS 2014 Disability Mortality rates (Non-Industrial rates for Miscellaneous members and Industrial Disability rates for Safety members), adjusted by 90% for Males and Females (Miscellaneous and Safety) with the 20-year static projection used by CalPERS replaced by generational improvements from a base year of 2009 using Scale MP-2014 Schedule of Contributions
Cost-Sharing Multiple Employer
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 Defined Benefit Pension Plan
Last 10 years
(Continued)

99 CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
Fiscal year ended, June 30 2017
Contractually required contribution $20,003,001
Contributions in Relation to the
Contractually required contribution 20,003,001
Contribution Deficiency/ (Excess) $0
Covered payroll $32,885,135
Contributions as a percentage of
covered payroll 60.83%
Notes to Schedule
Valuation Date / Timing 6/30/2015 (for contributions made in FY2016-2017) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2016-17):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (24 years remaining as of 6/30/14), the remaining UAL as of June 30, 2013 (16 years as of 6/30/14), and additional layers for unexpected changes in UAL after 6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for assumption changes with a 3-year phase-in/out).

Remaining Amortization period 19 years remaining as of June 30, 2016 Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages set back one year for male members/two years for female members Disabled Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages set forward three years for all members
Cost-Sharing Multiple Employer
Schedule of Contributions
Defined Benefit Pension Plan
Last 10 years
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 (Continued)

100

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
Fiscal year ended, June 30 2018
Contractually required contribution $20,167,435
Contributions in Relation to the
Contractually required contribution 20,167,435
Contribution Deficiency/ (Excess) $0
Covered payroll $36,349,651
Contributions as a percentage of
covered payroll 55.48%
Notes to Schedule
Valuation Date / Timing 6/30/2016 (for contributions made in FY2017-2018) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2017-18):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (22 years remaining as of 6/30/16), the remaining UAL as of June 30, 2013 (14 years as of 6/30/16), and additional layers for unexpected changes in UAL after 6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for assumption changes with a 3-year phase-in/out).

Remaining Amortization period 18 years remaining as of June 30, 2017 Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality Sex distinct CalPERS 2014 Pre-Retirement Non-Industrial Death rates (plus Duty-Related death rates for Safety members)
Disabled Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages set forward three years for all members
Disabled Mortality Rates of mortality among disabled members are given by CalPERS 2017 Disability Mortality rates (Non-Industrial rates for Miscellaneous members and Industrial Disability rates for Safety members), adjusted by 90% for Males (Miscellaneous and Safety) and 90% for Miscellaneous Females, with the 15-year static projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-2017.

Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 Schedule of Contributions
(Continued)
Last 10 years

101

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
Fiscal year ended, June 30 2019
Contractually required contribution $20,352,203
Contributions in Relation to the
Contractually required contribution 20,352,203
Contribution Deficiency/ (Excess) $0
Covered payroll $33,106,430
Contributions as a percentage of
covered payroll 61.48%
Notes to Schedule
Valuation Date / Timing 6/30/2017 (for contributions made in FY2018-2019) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2018-19):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (21 years remaining as of 6/30/17), the remaining UAL as of June 30, 2013 (13 years as of 6/30/17), and additional layers for unexpected changes in UAL after 6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for assumption changes with a 3-year phase-in/out).

Remaining Amortization period 17 years remaining as of June 30, 2018 Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service Investment Rate of Return 7.00%
Retirement Age
Healthy Mortality Rates of mortality for active members are specified by CalPERS 2017 Pre-Retirement Non-Industrial Death Rates (plus Duty-Related Death rates for Safety members), with the 20-year static projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-2017.

Disabled Mortality Rates of mortality among disabled members are given by CalPERS 2017 Disability Mortality rates (Non-Industrial rates for Miscellaneous members and Industrial Disability rates for Safety members), adjusted by 90% for Males (Miscellaneous and Safety) and 90% for Miscellaneous Females, with the 20-year static projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-2017.

Cost-Sharing Multiple Employer
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 Defined Benefit Pension Plan
Last 10 years
(Continued)
Schedule of Contributions

102

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
Fiscal year ended, June 30 2020
Contractually required contribution $20,031,614
Contributions in Relation to the
Contractually required contribution 20,031,614
Contribution Deficiency/ (Excess) $0
Covered payroll $32,887,922
Contributions as a percentage of
covered payroll 60.91%
Notes to Schedule
Valuation Date / Timing 6/30/2018 (for contributions made in FY2019-2020) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2019-20):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (20 years remaining as of 6/30/18), the remaining UAL as of June 30, 2013 (12 years as of 6/30/18), and additional layers for unexpected changes in UAL after 6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for assumption changes with a 3-year phase-in/out).

Remaining Amortization period 12 years remaining as of June 30, 2018 Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service Investment Rate of Return 7.00%
Retirement Age
Healthy Mortality
Disabled Mortality
Last 10 years
(Continued)
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 Cost-Sharing Multiple Employer
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.

Schedule of Contributions
Defined Benefit Pension Plan

103

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
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
(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.

104

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
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
(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.

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
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
(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.

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
Fiscal year ended, June 30 2024
Contractually required contribution $21,474,137
Contributions in Relation to the
Contractually required contribution (21,474,137)
Contribution Deficiency/ (Excess) $0
Covered payroll $36,995,522
Contributions as a percentage of
covered payroll 58.05%
Notes to Schedule
Valuation Date / Timing 6/30/2022 (for contributions made in FY2023-2024) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2023 - 24):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (16 years remaining as of 6/30/22), the remaining UAL as of June 30, 2013 (8 years as of 6/30/22), 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 8 years remaining as of June 30, 2022 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
(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.

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024

SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS Agent Multiple Employer Defined Benefit Plan
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
Measurement period 2015-16 2016-17 2017-18 2018-19
Total OPEB liability
Service cost $766,000 $789,000 $822,000 $805,000
Interest 3,447,000 3,540,000 3,435,000 3,515,000
Differences between expected and actual experience (4,107,000) (3,040,000) Assumption changes 4,831,000 (2,735,000)
Benefit payments, including refunds of employee contributions (2,896,000) (3,015,000) (3,028,000) (3,072,000) Net change in total OPEB liability 1,317,000 2,038,000 1,229,000 (4,527,000) Total OPEB liability - beginning 48,226,000 49,543,000 51,581,000 52,810,000 Total OPEB liability - ending (a) $49,543,000 $51,581,000 $52,810,000 $48,283,000 OPEB fiduciary net position
Contributions - employer $2,896,000 $3,475,000 $3,573,000 $3,725,000 Net investment income 157,000 1,675,000 1,425,000 1,224,000 Benefit payments, including refunds of employee contributions (2,896,000) (3,015,000) (3,028,000) (3,072,000) Administrative expense (7,000) (8,000) (44,000) (12,000) Net change in plan fiduciary net position 150,000 2,127,000 1,926,000 1,865,000 Plan fiduciary net position - beginning 15,608,000 15,758,000 17,885,000 19,811,000 Plan fiduciary net position - ending (b) $15,758,000 $17,885,000 $19,811,000 $21,676,000 Plan net OPEB liability - ending (a) - (b) $33,785,000 $33,696,000 $32,999,000 $26,607,000 Plan fiduciary net position as a percentage
of the total OPEB liability 31.81% 34.67% 37.51% 44.89% Covered employee payroll $37,846,000 $32,885,000 $36,350,000 $40,496,000 Plan net OPEB liability as a percentage of covered employee payroll 89.27% 102.47% 90.78% 65.70% Historical information is required only for the measurement periods for which GASB 75 is applicable. 108

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
2019-20 2020-21 2021-22 2022-23
$687,000 $679,000 $566,000 $582,000
3,196,000 3,238,000 2,946,000 2,966,000
(4,063,000) (3,269,000)
2,748,000 2,278,000
(3,225,000) (3,315,000) (3,286,000) (3,172,000)
658,000 (713,000) 226,000 (615,000)
48,283,000 48,941,000 48,228,000 48,454,000
$48,941,000 $48,228,000 $48,454,000 $47,839,000
$3,784,000 $3,323,000 $3,294,000 $3,183,000
770,000 6,319,000 (3,922,000) 1,629,000
(3,225,000) (3,315,000) (3,286,000) (3,172,000)
(19,000) (17,000) (15,000) (18,000)
1,310,000 6,310,000 (3,929,000) 1,622,000
21,676,000 22,986,000 29,296,000 25,367,000
$22,986,000 $29,296,000 $25,367,000 $26,989,000
$25,955,000 $18,932,000 $23,087,000 $20,850,000

46.97% 60.74% 52.35% 56.42%
$39,920,000 $39,310,000 $43,602,857 $45,757,607

65.02% 48.16% 52.95% 45.57%

109

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024

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 110

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024

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
111

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024

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
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
Agent Multiple Employer Defined Benefit Plan

112

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024

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

113

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024

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

114

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2021-22
Actuarially determined contribution $3,093,000
Contributions in relation to
the actuarially determined contribution (3,294,000)
Contribution deficiency (excess) ($201,000)
Covered employee payroll $42,604,000
Contributions as a percentage of
covered employee payroll 7.73%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary Information for 10 years or as many years as are available upon implementation.

The June 30, 2021 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/22 and 6/30/23.

Notes to Schedule:

Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported.

Methods and assumptions used to determine contribution rates:

Valuation Date June 30, 2021
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll Amortization Method Level dollar amount, over approximate 10-year period Remaining Amortization 14 years remaining as of June 30, 2021 Asset Valuation Method Investment gains and losses spread over 5-year rolling period Discount Rate 6.25% at June 30, 2022 and June 30, 2021, respectively Contribution Policy City contributes full ADC
General Inflation 2.50% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2019 valuation Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 2.75%
Merit - Increases - same as MCERA Assumptions as of June 30, 2020 valuation Medical Trend Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare (Non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare (Kaiser) - 4.60% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Healthcare participation for future retirees Capped benefit: 90% currently covered, 70% currently waived PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Mortality projected fully generational with Scale MP-2021 Same as discount rate - expected City contributions projected to keep sufficient plan assets to pay all benefits from trust

115

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
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 fixed 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 6/30/20 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 plan

116

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
Fiscal year 2023-24
Actuarially determined contribution $2,605,000
Contributions in relation to
the actuarially determined contribution (3,251,000)
Contribution deficiency (excess) ($646,000)
Covered employee payroll $45,757,607
Contributions as a percentage of
covered employee payroll 7.10%
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, 2023 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/23 and 6/30/24.

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, 2023
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll Amortization Method Level dollar amount, over approximate 10-year period Remaining Amortization 12 year fixed period for 2023/24 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 6/30/23 MCERA Valuation assumptions 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, 2023 valuation Medical Trend Non-Medicare - 8.5% for 2025 decreasing 3.45% for 2076 and later Medicare (Non-Kaiser) - 7.5% for 2025, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate of 3.45% 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 plan

117

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.
119

CITY OF SAN RAFAEL

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes and special assessments $87,054,486 $87,054,486 $88,564,312 $1,509,826 Licenses and permits 2,855,788 2,855,788 3,614,566 758,778 Fines and forfeitures 212,740 212,740 259,792 47,052
Use of money and properties 462,120 462,120 3,377,438 2,915,318 Intergovernmental 4,369,421 4,369,421 4,830,166 460,745 Charges for services 3,240,314 3,240,314 3,245,323 5,009 Other revenue 2,606,699 2,606,699 1,054,355 (1,552,344) Total Revenues 100,801,568 100,801,568 104,945,952 4,144,384

EXPENDITURES
Current:

General government 17,053,530 17,053,530 15,483,609 1,569,921 Public safety 50,389,251 50,375,971 47,275,482 3,100,489 Public works and parks 14,970,225 14,970,225 14,395,860 574,365 Community development 9,031,460 9,031,462 5,514,463 3,516,999 Culture and recreation 3,365,971 3,392,970 3,088,241 304,729 Capital outlay 92,776 92,776 2,232,278 (2,139,502)
Debt service:

Principal 3,162,714 3,162,714 3,760,071 (597,357)
Interest and fiscal charges 2,086,013 2,086,014 2,100,354 (14,340) Total Expenditures 100,151,940 100,165,662 93,850,358 6,315,304

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 649,628 635,906 11,095,594 10,459,688

OTHER FINANCING SOURCES (USES)
Issuance of long-term debt 2,518,949 2,518,949
Transfers in 1,827,461 2,127,461 2,061,406 (66,055)
Transfers out (2,207,000) (7,094,483) (7,028,671) 65,812 Total Other Financing Sources (Uses) (379,539) (4,967,022) (2,448,316) 2,518,706 Net Change in Fund Balance $270,089 ($4,331,116) 8,647,278 $12,978,394 FUND BALANCE, BEGINNING OF YEAR 27,767,998
FUND BALANCE, END OF YEAR $36,415,276
120

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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and properties $6,128 $6,128 $150,901 $144,773 Intergovernmental 225,000 225,000 465,000 240,000
Charges for services 1,209,923 1,209,923 1,280,962 71,039 Other revenue 10,000 10,000
Total Revenues 1,441,051 1,441,051 1,906,863 465,812

EXPENDITURES
Current:

General government 100,000 100,000 100,000
Public works and parks 565,000 565,000 112,464 452,536
Community development 202,000 1,652,000 341,815 1,310,185 Capital outlay 160,000 1,810,000 1,650,469 159,531
Total Expenditures 1,027,000 4,127,000 2,104,748 2,022,252

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 414,051 (2,685,949) (197,885) 2,488,064

OTHER FINANCING SOURCES (USES)
Transfers in 419,000 419,000 419,000
Total Other Financing Sources (Uses) 419,000 419,000 419,000 Net Change in Fund Balance $833,051 ($2,266,949) 221,115 $2,488,064 5,693,062
FUND BALANCE, END OF YEAR $5,914,177

FUND BALANCE, BEGINNING OF YEAR
121

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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and properties $235,085 $235,085
Intergovernmental $6,146,327 $6,146,327 7,936,247 1,789,920 Charges for services 1,600,000 1,600,000 2,736,113 1,136,113 Other revenue 5,150,000 5,150,000 1,716,032 (3,433,968) Total Revenues 12,896,327 12,896,327 12,623,477 (272,850)

EXPENDITURES
Current:

Public works and parks 3,240,000 4,687,000 3,431,257 1,255,743 Capital outlay 15,900,000 17,530,000 7,436,103 10,093,897 Total Expenditures 19,140,000 22,217,000 10,867,360 11,349,640

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (6,243,673) (9,320,673) 1,756,117 11,076,790

OTHER FINANCING SOURCES (USES)
Transfers in 850,000 850,000
Transfers out (650,000) (1,069,000) (1,069,000)
Total Other Financing Sources (Uses) (650,000) (219,000) (219,000) Net Change in Fund Balance ($6,893,673) ($9,539,673) 1,537,117 $11,076,790 FUND BALANCE, BEGINNING OF YEAR 11,835,712
FUND BALANCE, END OF YEAR $13,372,829
122

SUPPLEMENTARY INFORMATION
123

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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $68,831 $68,831
Other revenue 1,639 1,639
Total Revenues 70,470 70,470

EXPENDITURES
Capital outlay $2,250,000 $3,367,904 580,083 2,787,821
Total Expenditures 2,250,000 3,367,904 580,083 2,787,821

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,250,000) (3,367,904) (509,613) 2,858,291

OTHER FINANCING SOURCES (USES)
Transfers in 450,000 384,188 (65,812)
Total Other Financing Sources (Uses) 450,000 384,188 (65,812) Net Change in Fund Balance ($2,250,000) ($2,917,904) (125,425) $2,792,479 FUND BALANCE, BEGINNING OF YEAR 3,718,015
FUND BALANCE, END OF YEAR $3,592,590
124

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. 125
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. 126

CITY OF SAN RAFAEL

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2024
Baypoint Loch Lomond
Lagoons Household #10
Recreation Assessment Hazmat Community
Revolving District Facility Childcare Facilities Dist.

ASSETS
Cash and investments $646,525 $240,440 $582,892 $1,268,215 $832,552 Restricted cash and investments
Receivables:

Accounts 266,907
Taxes 254 293
Grants
Interest
Loans
Leases 151,987
Prepaid expense
Total Assets $1,065,419 $240,694 $582,892 $1,268,215 $832,845

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $181,865 $5,275 $29,454 $708
Deposits payable
Developer deposits payable
Unearned revenue 566,892
Total Liabilities 748,757 5,275 29,454 708
Deferred Inflows of Resources:

Unavailable revenue - leases 141,240
Total Deferred Inflows of Resources 141,240
Fund Balances:

Nonspendable
Restricted 175,422 235,419 $582,892 1,238,761 832,137
Committed
Assigned
Total Fund Balances 175,422 235,419 582,892 1,238,761 832,137 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $1,065,419 $240,694 $582,892 $1,268,215 $832,845

SPECIAL REVENUE FUNDS
128
Loch Lomond
Marina #2
Community Library Public Development Parkland
Facilities Dist. Library Assessment Safety Stormwater Services Grants Dedication $1,108,895 $4,895,279 $1,000,386 $109,680 $4,226,855 $85,730 $915,548 $366,973 2,250 517,365
2,809 10,727 7,900
370,000 70,264
248,783
$1,111,704 $5,265,279 $1,011,113 $111,930 $4,234,755 $851,878 $985,812 $366,973 $18,994 $29,927 $58,028 $5,443 $318,323 $139,929 $121,724 27,882 17,402
3,635
18,994 29,927 58,028 5,443 318,323 171,446 139,126
227,672
227,672
1,092,710 5,235,352 953,085 106,487 3,916,432 452,760 846,686 $366,973 1,092,710 5,235,352 953,085 106,487 3,916,432 452,760 846,686 366,973 $1,111,704 $5,265,279 $1,011,113 $111,930 $4,234,755 $851,878 $985,812 $366,973 (Continued)

SPECIAL REVENUE FUNDS
129

CITY OF SAN RAFAEL

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2024
Low and
Emergency Pt. San Pedro Moderate
Medical Business Maintenance Income Measure A
Services Improvement Portion Housing Open Space
ASSETS
Cash and investments $3,078,863 $113,525 $229,112 $78,129 $810,690 Restricted cash and investments
Receivables:

Accounts 323,746
Taxes 51,438 11,077 290,198
Grants
Interest
Loans 1,841,716
Leases
Prepaid expense
Total Assets $3,454,047 $113,525 $240,189 $1,919,845 $1,100,888

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $61,018 $63,525 $6,295 $26,735
Deposits payable
Developer deposits payable
Unearned revenue
Total Liabilities 61,018 63,525 6,295 26,735
Deferred Inflows of Resources:

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

Nonspendable
Restricted 3,393,029 50,000 233,894 $1,919,845 1,074,153 Committed
Assigned
Total Fund Balances 3,393,029 50,000 233,894 1,919,845 1,074,153 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $3,454,047 $113,525 $240,189 $1,919,845 $1,100,888

SPECIAL REVENUE FUNDS
130
Total
Measure C Park Non-Major
Measure G Wildfire Capital Bedroom Assessment Capital Open Governmental Cannabis Prevention Improvement Tax Districts Projects Space Funds $985,665 $525,348 $8,237,420 $150,530 $216,354 $32,161 $121,562 $30,859,329 85,751 85,751
957,827 2,068,095
51,524 426,220
440,264
9,187 9,187
1,841,716
400,770
3,506 3,506
$1,037,189 $1,483,175 $8,246,607 $150,530 $302,105 $35,667 $121,562 $36,134,838 $116,187 $63,184 $3,506 $1,250,120
2,821 48,105
3,635
566,892
116,187 66,005 3,506 1,868,752
368,912
368,912
3,506 3,506
$1,037,189 1,366,988 $150,530 $302,105 25,562,849
8,180,602 28,655 8,209,257
$121,562 121,562
1,037,189 1,366,988 8,180,602 150,530 302,105 32,161 121,562 33,897,174 $1,037,189 $1,483,175 $8,246,607 $150,530 $302,105 $35,667 $121,562 $36,134,838

SPECIAL REVENUE

FUNDS CAPITAL PROJECTS FUNDS
131
Baypoint Loch Lomond
Lagoons Household #10
Recreation Assessment Hazmat Community
Revolving District Facility Childcare Facilities Dist.

REVENUES
Taxes and special assessments $25,368 $29,276
Use of money and properties $47,425 4,529 $6,408 $18,447 15,833 Intergovernmental 6,984 900,303
Charges for services 2,040,498 4,027 3,439,791
Other revenue 15,395 1,713
Total Revenues 2,110,302 29,897 10,435 4,360,254 45,109

EXPENDITURES
Current:

General government
Public safety
Public works and parks 19,215 22,834
Community development
Culture and recreation 4,504,593 3,732,458
Capital outlay
Total Expenditures 4,504,593 19,215 3,732,458 22,834

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,394,291) 10,682 10,435 627,796 22,275

OTHER FINANCING SOURCES (USES)
Transfers in 2,207,000
Transfers out
Total Other Financing Sources (Uses) 2,207,000
Net Change in Fund Balances (187,291) 10,682 10,435 627,796 22,275 Fund Balance, Beginning 362,713 224,737 572,457 610,965 809,862 Fund Balance, Ending $175,422 $235,419 $582,892 $1,238,761 $832,137

CITY OF SAN RAFAEL

COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE

NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2024

SPECIAL REVENUE FUNDS
132
Loch Lomond
Marina #2
Community Library Public Development Parkland
Facilities Dist. Library Assessment Safety Stormwater Services Grants Dedication $280,924 $1,166,033
19,277 $106,116 17,109 $98,669 $52,732 $6,984
516,422 $82,839 $869,134
4,184 830,630
381,482 35,145 2,046 188,999
300,201 1,008,204 1,183,142 117,984 931,345 52,732 1,058,133 6,984 368,905
220,860 472,621
104,446 962,069
419,872
10,473 1,164,342
206,843 3,917,338 97,915
104,446 217,316 1,164,342 220,860 4,879,407 1,359,313
195,755 790,888 18,800 (102,876) (3,948,062) 52,732 (301,180) 6,984 85,000 1,235,035 97,483
85,000 1,235,035 97,483
195,755 790,888 18,800 (17,876) (2,713,027) 52,732 (203,697) 6,984 896,955 4,444,464 934,285 124,363 6,629,459 400,028 1,050,383 359,989 $1,092,710 $5,235,352 $953,085 $106,487 $3,916,432 $452,760 $846,686 $366,973 (Continued)

SPECIAL REVENUE FUNDS
133
Low and
Emergency Pt. San Pedro - Moderate
Medical Business Maintenance Income Measure A
Services Improvement Portion Housing Open Space

REVENUES
Taxes and special assessments $5,315,689 $172,670 $598,735 Use of money and properties 35,709 3,482 $42,496 13,216 Intergovernmental 55,291 177,952
Charges for services 3,876,561
Other revenue 578,339 9,351 5,305
Total Revenues 9,861,589 185,503 47,801 789,903

EXPENDITURES
Current:

General government $50,000
Public safety 8,933,061
Public works and parks 126,577
Community development
Culture and recreation 21,196
Capital outlay 169,607
Total Expenditures 8,933,061 50,000 126,577 190,803

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 928,528 (50,000) 58,926 47,801 599,100

OTHER FINANCING SOURCES (USES)
Transfers in 100,000
Transfers out
Total Other Financing Sources (Uses) 100,000
Net Change in Fund Balances 928,528 50,000 58,926 47,801 599,100 Fund Balance, Beginning 2,464,501 174,968 1,872,044 475,053 Fund Balance, Ending $3,393,029 $50,000 $233,894 $1,919,845 $1,074,153

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, 2024
134
Total
Measure C Park Non-Major
Measure G Wildfire Capital Bedroom Assessment Capital Open Governmental Cannabis Prevention Improvement Tax Districts Projects Space Funds $215,231 $2,108,271 $5,355 $9,917,552
10,390 22,190 $199,371 2,836 $3,382 $2,314 728,915
15,744 3,397,468 772,799
10,195,691
38,878 $10,300 1,266,953
237,421 2,930,338 215,115 8,191 3,382 10,300 2,314 25,506,579 73,487 492,392
43,536 2,912,466 12,582,544
1,235,141
419,872
9,433,062
37,295 261,496 4,690,494
117,023 2,949,761 261,496 28,853,505
120,398 (19,423) (46,381) 8,191 3,382 10,300 2,314 (3,346,926) 4,240,000 7,964,518
(233,945) (233,945)
(233,945) 4,240,000 7,730,573
(113,547) (19,423) 4,193,619 8,191 3,382 10,300 2,314 4,383,647 1,150,736 1,386,411 3,986,983 142,339 298,723 21,861 119,248 29,513,527 $1,037,189 $1,366,988 $8,180,602 $150,530 $302,105 $32,161 $121,562 $33,897,174

SPECIAL REVENUE FUNDS CAPITAL PROJECTS FUNDS
135

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, 2024

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 $25,368 $25,368
Use of money and properties $25,000 $47,425 $22,425 4,529 $4,529 Intergovernmental 48,000 6,984 (41,016)
Charges for services 2,067,870 2,040,498 (27,372)
Other revenue 475 15,395 14,920
Total Revenues 2,141,345 2,110,302 (31,043) 25,368 29,897 4,529

EXPENDITURES
Current:

General government
Public safety
Public works and parks 212,700 19,215 193,485
Community development
Culture and recreation 4,523,000 4,504,593 18,407
Capital outlay
Total Expenditures 4,523,000 4,504,593 18,407 212,700 19,215 193,485

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,381,655) (2,394,291) (12,636) (187,332) 10,682 198,014

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 ($174,655) (187,291) ($12,636) ($187,332) 10,682 $198,014 FUND BALANCES, BEGINNING OF YEAR 362,713 224,737
FUND BALANCES, END OF YEAR $175,422 $235,419
136
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 $29,276 $4,276
$6,408 $6,408 $18,447 $18,447 15,833 15,833
$598,207 900,303 302,096
4,027 4,027 3,261,400 3,439,791 178,391
1,713 1,713
10,435 10,435 3,859,607 4,360,254 500,647 25,000 45,109 20,109 $119,103 119,103
18,855 22,834 (3,979)
3,929,457 3,732,458 196,999
119,103 119,103 3,929,457 3,732,458 196,999 18,855 22,834 (3,979) (119,103) 10,435 129,538 (69,850) 627,796 697,646 6,145 22,275 16,130 ($119,103) 10,435 $129,538 ($69,850) 627,796 $697,646 $6,145 22,275 $16,130 572,457 610,965 809,862
$582,892 $1,238,761 $832,137
(Continued)
Community Facilities District

SPECIAL REVENUE FUNDS
137
Library
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes and special assessments $223,119 $280,924 $57,805 Use of money and properties 19,277 19,277 $106,116 $106,116 Intergovernmental $1,001,000 516,422 (484,578)
Charges for services 3,814 4,184 370
Other revenue 20,000 381,482 361,482
Total Revenues 223,119 300,201 77,082 1,024,814 1,008,204 (16,610)

EXPENDITURES
Current:

General government
Public safety
Public works and parks 135,030 104,446 30,584
Community development
Culture and recreation 120,000 10,473 109,527
Capital outlay 4,000,000 206,843 3,793,157
Total Expenditures 135,030 104,446 30,584 4,120,000 217,316 3,902,684

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 88,089 195,755 107,666 (3,095,186) 790,888 3,886,074

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE $88,089 195,755 $107,666 ($3,095,186) 790,888 $3,886,074 FUND BALANCES, BEGINNING OF YEAR 896,955 4,444,464
FUND BALANCES, END OF YEAR $1,092,710 $5,235,352

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024

CITY OF SAN RAFAEL

BUDGETED NONMAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
Community Facilities District

SPECIAL REVENUE FUNDS
Loch Lomond Marina #2
138

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) $1,167,507 $1,166,033 ($1,474)
17,109 17,109 $98,669 $98,669
$80,000 $82,839 $2,839
$830,000 830,630 630
15,000 35,145 20,145 2,046 2,046
1,167,507 1,183,142 15,635 95,000 117,984 22,984 830,000 931,345 101,345 215,725 220,860 (5,135)
699,777 962,069 (262,292)
1,628,626 1,164,342 464,284
9,235,035 3,917,338 5,317,697
1,628,626 1,164,342 464,284 215,725 220,860 (5,135) 9,934,812 4,879,407 5,055,405 (461,119) 18,800 479,919 (120,725) (102,876) 17,849 (9,104,812) (3,948,062) 5,156,750 85,000 85,000 1,235,035 1,235,035
85,000 85,000 1,235,035 1,235,035
($461,119) 18,800 $479,919 ($35,725) (17,876) $17,849 ($7,869,777) (2,713,027) $5,156,750 934,285 124,363 6,629,459
$953,085 $106,487 $3,916,432
(Continued)
139
Grants
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes and special assessments
Use of money and properties $39,000 $52,732 $13,732
Intergovernmental $2,170,252 $869,134 ($1,301,118)
Charges for services
Other revenue 188,999 188,999
Total Revenues 39,000 52,732 13,732 2,170,252 1,058,133 (1,112,119)

EXPENDITURES
Current:

General government 1,249,906 368,905 881,001
Public safety 740,494 472,621 267,873
Public works and parks
Community development 419,872 (419,872)
Culture and recreation
Capital outlay 463 97,915 (97,452)
Total Expenditures 1,990,863 1,359,313 631,550

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 39,000 52,732 13,732 179,389 (301,180) (480,569)

OTHER FINANCING SOURCES (USES)
Transfers in 97,483 97,483
Transfers out
Total Other Financing Sources (Uses) 97,483 97,483
NET CHANGE IN FUND BALANCE $39,000 52,732 $13,732 $276,872 (203,697) ($480,569) FUND BALANCES, BEGINNING OF YEAR 400,028 1,050,383
FUND BALANCES, END OF YEAR $452,760 $846,686

BUDGET AND ACTUAL

CITY OF SAN RAFAEL

BUDGETED NONMAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2024

SPECIAL REVENUE FUNDS
Development Services
140
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) $5,318,560 $5,315,689 ($2,871)
$6,984 $6,984 35,709 35,709
181,100 55,291 (125,809)
3,000,000 3,876,561 876,561
450,000 578,339 128,339
6,984 6,984 8,949,660 9,861,589 911,929
$50,000 $50,000
9,693,072 8,933,061 760,011
9,693,072 8,933,061 760,011 50,000 50,000
6,984 6,984 (743,412) 928,528 1,671,940 (50,000) (50,000) 100,000 100,000
100,000 100,000
6,984 $6,984 ($743,412) 928,528 $1,671,940 $50,000 50,000 359,989 2,464,501
$366,973 $3,393,029 $50,000
(Continued)

SPECIAL REVENUE FUNDS
141
Low and Moderate Income Housing
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes and special assessments $150,000 $172,670 $22,670 Use of money and properties 3,482 3,482 $42,496 $42,496 Intergovernmental
Charges for services
Other revenue 8,000 9,351 1,351 5,305 5,305
Total Revenues 158,000 185,503 27,503 47,801 47,801

EXPENDITURES
Current:

General government $95,760 95,760
Public safety
Public works and parks 183,186 126,577 56,609
Community development
Culture and recreation
Capital outlay
Total Expenditures 183,186 126,577 56,609 95,760 95,760

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (25,186) 58,926 84,112 (95,760) 47,801 143,561

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE ($25,186) 58,926 $84,112 ($95,760) 47,801 $143,561 FUND BALANCES, BEGINNING OF YEAR 174,968 1,872,044
FUND BALANCES, END OF YEAR $233,894 $1,919,845
FOR THE YEAR ENDED JUNE 30, 2024

CITY OF SAN RAFAEL

BUDGETED NONMAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
Pt. San Pedro-Maintenance Portion

SPECIAL REVENUE FUNDS
142

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) $549,878 $598,735 $48,857 $225,000 $215,231 ($9,769) $1,956,238 $2,108,271 $152,033 13,216 13,216 22,190 22,190 10,390 10,390
177,952 177,952 750,000 772,799 22,799
38,878 38,878
549,878 789,903 240,025 225,000 237,421 12,421 2,706,238 2,930,338 224,100 139,527 73,487 66,040
40,717 43,536 (2,819) 3,163,466 2,912,466 251,000
380,000 21,196 358,804
285,000 169,607 115,393 36,000 37,295 (1,295)
665,000 190,803 474,197 180,244 117,023 63,221 3,199,466 2,949,761 249,705 (115,122) 599,100 714,222 44,756 120,398 75,642 (493,228) (19,423) 473,805 (300,000) (233,945) 66,055
(300,000) (233,945) 66,055
($115,122) 599,100 $714,222 ($255,244) (113,547) $141,697 ($493,228) (19,423) $473,805 475,053 1,150,736 1,386,411
$1,074,153 $1,037,189 $1,366,988
143

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. 145

CITY OF SAN RAFAEL

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2024
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
ASSETS
Current Assets:

Cash and investments $6,318,860 $4,966,552 $6,472,986 $767,795 $2,948,852 Accounts receivable 10,000 800
Grants receivable
Prepaid expenses 837,058 23,995
Capital assets:

Nondepreciable assets 346,448
Depreciable assets, net 5,627,453 6,709,092 1,269,749
Total Assets 12,292,761 12,522,702 7,766,730 767,795 2,949,652

LIABILITIES
Current Liabilities:

Accounts payable 34,534 28,310 224,114 150,387 39,377
Claims payable - due in one year 960,679
Long-term debt - due in one year 21,755
Subscription liabilities - due in one year 271,026
Due to other funds
Non-current Liabilities:

Claims payable - due in more than one year 2,380,092
Long-term debt - due in more than one year 99,708
Subscription liabilities - due in more than one year 684,247 Total Liabilities 155,997 28,310 1,179,387 150,387 3,380,148 NET POSITION:

Net investment in capital assets 5,852,438 6,709,092 314,476 Unrestricted 6,284,326 5,785,300 6,272,867 617,408 (430,496) Total Net Position $12,136,764 $12,494,392 $6,587,343 $617,408 ($430,496) 146
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total $12,875,053 $663,409 $1,823,026 $579,167 $601,949 $457,507 $38,475,156 $788,237 799,037
1,000 1,000
861,053
346,448
13,606,294
12,875,053 663,409 1,823,026 579,167 601,949 458,507 788,237 54,088,988 545 6,679 54,233 394,059 932,238
2,428,483 3,389,162
21,755
271,026
394,178 394,178
8,732,608 11,112,700
99,708
684,247
11,161,636 6,679 54,233 788,237 16,905,014
12,876,006
1,713,417 656,730 1,823,026 579,167 601,949 404,274 24,307,968 $1,713,417 $656,730 $1,823,026 $579,167 $601,949 $404,274 $37,183,974 147
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance

OPERATING REVENUES
Charges for current services $2,000,000 $1,033,793 $2,540,933 $1,291,329 $2,364,880 Other operating revenues 10,861 39,418 291,472
Total Operating Revenues 2,010,861 1,033,793 2,580,351 1,291,329 2,656,352

OPERATING EXPENSES
Personnel 1,037,231 734,018
Insurance premiums and claims 2,735,663
Maintenance and repairs 57,533 5,278
General and administrative 3,329 2,140,760 595,773 554,572 Depreciation and amortization expense 293,708 985,829 280,277 Total Operating Expenses 354,570 991,107 2,421,037 1,633,004 4,024,253 Operating Income (Loss) 1,656,291 42,686 159,314 (341,675) (1,367,901)

NONOPERATING REVENUES (EXPENSES)
Investment income 108,046 100,300 124,703 50,522 51,480 Interest expense (63,178)
Miscellaneous revenues 10,000
Gain on sale of capital assets 49,984
Total Nonoperating
Revenues (Expenses) 108,046 160,284 61,525 50,522 51,480 Net income (loss) before contributions
and transfers 1,764,337 202,970 220,839 (291,153) (1,316,421)

TRANSFERS
Transfers out (2,085,035)
Net transfers (2,085,035)
Change in Net Position 1,764,337 202,970 220,839 (291,153) (3,401,456) NET POSITION, BEGINNING OF YEAR 10,372,427 12,291,422 6,366,504 908,561 2,970,960 NET POSITION, END OF YEAR $12,136,764 $12,494,392 $6,587,343 $617,408 ($430,496)

CITY OF SAN RAFAEL

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2024
148
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total $2,523,621 $536,759 $2,675,827 $450,000 $773,763 $2,758,554 $18,949,459 1,002,553 1,146 1,345,450
2,523,621 536,759 3,678,380 450,000 774,909 2,758,554 20,294,909 317,413 2,638,811 4,727,473
1,329,343 375,857 3,545,232 7,986,095
87,821 150,632
197,685 42,660 $2,000 503,170 470,301 119,743 4,629,993 1,559,814
1,844,441 418,517 2,000 3,545,232 503,170 558,122 2,758,554 19,054,007 679,180 118,242 (2,000) 133,148 (53,170) 216,787 1,240,902 237,386 11,487 46,014 8,680 6,669 745,287
(63,178)
10,000
49,984
237,386 11,487 46,014 8,680 6,669 742,093
916,566 129,729 44,014 133,148 (44,490) 223,456 1,982,995 (680,313) (2,765,348)
(680,313) (2,765,348)
916,566 129,729 (636,299) 133,148 (44,490) 223,456 (782,353) 796,851 527,001 2,459,325 446,019 646,439 180,818 37,966,327 $1,713,417 $656,730 $1,823,026 $579,167 $601,949 $404,274 $37,183,974 149

CITY OF SAN RAFAEL

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2024
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $2,000,000 $1,023,793 $2,540,933 $1,291,329 $2,364,080 Cash payments to suppliers for goods and services (28,141) (817,526) (2,116,848) (477,133) (4,577,528) Cash payments to employees for salaries and benefits (1,037,231) (734,018) Other operating revenues 10,861 39,418 291,472
Cash Flows from Operating Activities 1,982,720 206,267 463,503 (223,035) (2,655,994)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Miscellaneous revenues 10,000
Interfund revenues
Interfund payments (2,085,035)
Cash Flows from Noncapital
Financing Activities 10,000 (2,085,035)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Payment on note payable (21,755)
Payment on subscription liability (308,281)
Payment on subscription interest (63,178)
Acquisition and construction of capital assets 7,896 (2,205,230) (233,929) Proceeds from sale of property 123,283
Cash Flows from Investing Activities (13,859) (2,081,947) (605,388)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 108,046 100,300 124,703 50,522 51,480 Cash Flows from Investing Activities 108,046 100,300 124,703 50,522 51,480 Net increase (decrease) in cash and cash equivalents 2,076,907 (1,765,380) (17,182) (172,513) (4,689,549) CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 4,241,953 6,731,932 6,490,168 940,308 7,638,401 CASH AND CASH EQUIVALENTS, END OF YEAR $6,318,860 $4,966,552 $6,472,986 $767,795 $2,948,852 Reconciliation of operating income (loss) to net cash
provided by operating activities:

Operating income (loss) $1,656,291 $42,686 $159,314 ($341,675) ($1,367,901) Adjustments to reconcile operating income
to cash flows from operating activities:

Depreciation and amortization 293,708 985,829 280,277
Net change in assets and liabilities:

Account receivable (10,000) (800)
Grant receivable
Prepaids (837,058) 5,251
Accounts payable 32,721 24,810 18,661 118,640 35,312
Claims payable (1,322,605)
Net Cash Provided by (Used in) Operating Activities $1,982,720 $206,267 $463,503 ($223,035) ($2,655,994) NON-CASH TRANSACTIONS:

Subscription assets $290,380
Retirement of capital assets ($73,299)
150
OPEB/
Workers' Dental Employee Employee Radio Telephone Sewer Compensation Insurance Retirement Retirement Replacement Replacement Maintenance Total $2,523,621 $536,759 $2,675,827 $450,000 $772,763 $1,970,317 $18,149,422 (1,489,885) (415,512) ($2,000) (3,556,726) (503,170) (559,161) (2,858,679) (17,402,309) (317,413) (2,088,662)
1,002,553 1,146 1,345,450
716,323 121,247 (2,000) 121,654 (53,170) 214,748 (888,362) 3,901 10,000
394,178 394,178
(680,313) (2,765,348)
(680,313) 394,178 (2,361,170)
(21,755)
(308,281)
(63,178)
(2,431,263)
123,283
(2,701,194)
237,386 11,487 46,014 8,680 6,669 745,287
237,386 11,487 46,014 8,680 6,669 745,287
953,709 132,734 (636,299) 121,654 (44,490) 221,417 (494,184) (4,313,176) 11,921,344 530,675 2,459,325 457,513 646,439 236,090 494,184 42,788,332 $12,875,053 $663,409 $1,823,026 $579,167 $601,949 $457,507 $38,475,156 $679,180 $118,242 ($2,000) $133,148 ($53,170) $216,787 $1,240,902 1,559,814
($788,237) (799,037)
(1,000) (1,000)
(831,807)
(626) 3,005 (11,494) (1,039) (100,125) 119,865
37,769 (1,284,836)
$716,323 $121,247 ($2,000) $121,654 ($53,170) $214,748 ($888,362) $3,901 $290,380
($73,299)
151

Terra Linda Community Pool, San Rafael

STATISTICAL SECTION
153

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.
155
(accrual basis of accounting)
2015 (a) 2016 (a) 2017 2018
Governmental activities
Net investment in capital assets $190,621,085 $193,707,175 $199,202,842 $217,170,376 Restricted 33,389,224 31,286,725 29,225,643 25,549,583
Unrestricted (82,336,534) (93,273,480) (112,913,181) (122,577,233) Total governmental activities net position $141,673,775 $131,720,420 $115,515,304 $120,142,726 Business-type activities
Net investment in capital assets $10,744,952 $10,958,058 $10,968,642 $10,951,518 Unrestricted (938,519) (1,136,050) (871,620) (886,848)
Total business-type activities net position $9,806,433 $9,822,008 $10,097,022 $10,064,670 Primary government
Net investment in capital assets $201,366,037 $204,665,233 $210,171,484 $228,121,894 Restricted 33,389,224 31,286,725 29,225,643 25,549,583
Unrestricted (83,275,053) (94,409,530) (113,784,801) (123,464,081) Total primary government net position $151,480,208 $141,542,428 $125,612,326 $130,207,396 (a) The City adjusted certain beginning balances during fiscal years 2014-2015 and 2015-2016.

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
$370,000
2015 (a)2016 (a) 2017 2018 2019 2020 2021 2022 2023 2024 Thousands
Net investment in capital assets Restricted Unrestricted 156
□ • •
2019 2020 2021 2022 2023 2024
$231,844,210 $230,737,025 $228,252,998 $246,437,706 $259,204,102 $268,520,108 23,288,874 23,522,748 36,175,158 36,668,766 46,773,333 48,596,168 (118,215,177) (116,133,437) (107,929,957) (48,883,395) (24,466,269) (6,281,168) $136,917,907 $138,126,336 $156,498,199 $234,223,077 $281,511,166 $310,835,108 $11,023,426 $11,104,751 $11,174,601 $11,256,222 $11,454,000 $11,354,160 (1,180,121) (1,204,307) (2,205,300) (1,189,003) (653,194) (651,060) $9,843,305 $9,900,444 $8,969,301 $10,067,219 $10,800,806 $10,703,100 $242,867,636 $241,841,776 $239,427,599 $257,693,928 $270,658,102 $279,874,268 23,288,874 23,522,748 36,175,158 36,668,766 46,773,333 48,596,168 (119,395,298) (117,337,744) (110,135,257) (50,072,398) (25,119,463) (6,932,228) $146,761,212 $148,026,780 $165,467,500 $244,290,296 $292,311,972 $321,538,208 157

CITY OF SAN RAFAEL

CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2015 2016 2017 2018
Expenses
Governmental Activities:

General government $9,099,858 $12,952,983 $10,996,269 $9,835,941 Public safety 39,968,631 55,399,798 44,366,734 53,231,197 Public works and parks 16,893,164 22,929,289 19,845,719 22,084,433 Community development 3,128,373 4,307,269 4,242,743 4,040,195 Culture and recreation 11,198,151 15,026,680 14,131,000 13,285,563 Interest on long-term debt 284,288 277,263 271,263 884,336 Total Governmental Activities Expenses 80,572,465 110,893,282 93,853,728 103,361,665 Business-Type Activities:

Parking services 4,249,597 4,762,851 4,188,152 4,627,716 Total Business-Type Activities Expenses 4,249,597 4,762,851 4,188,152 4,627,716 Total Primary Government Expenses $84,822,062 $115,656,133 $98,041,880 $107,989,381 Component Unit:

San Rafael Sanitation District $11,375,239 $11,654,767 $11,255,194 $12,235,868 Program Revenues
Governmental Activities:

Charges for services:

General government $1,379,523 $526,495 $421,393 $517,542 Public safety 4,966,251 4,939,658 4,264,939 5,628,478
Public works and parks 3,078,267 5,157,289 1,804,698 2,362,375 Community development 3,796,684 4,004,178 3,850,107 3,814,892 Culture and recreation 6,537,646 6,683,059 6,941,013 6,819,303 Operating grants and contributions 4,185,450 4,678,338 3,965,351 5,142,670 Capital grants and contributions 1,308,027 1,470,953 1,702,993 974,603 Total Government Activities Program Revenues 25,251,848 27,459,970 22,950,494 25,259,863 Business-Type Activities:

Charges for services:

Parking services 5,173,557 5,212,181 5,268,991 5,203,585 Total Business-Type Activities Program Revenues 5,173,557 5,212,181 5,268,991 5,203,585 Total Primary Government Program Revenues $30,425,405 $32,672,151 $28,219,485 $30,463,448 Component Unit:

San Rafael Sanitation District
Charges for service $14,629,758 $15,414,530 $16,014,016 $16,829,908 Operating grants and contributions 36,945 58,440
Capital grants and contributions 79,245 105,734
Total Component Unit Program Revenues $14,629,758 $15,414,530 $16,130,206 $16,994,082 Net (Expense)/Revenue
Governmental Activities ($55,320,617) ($83,433,312) ($70,903,234) ($78,101,802) Business-Type Activities 923,960 449,330 1,080,839 575,869 Total Primary Government Net Expense ($54,396,657) ($82,983,982) ($69,822,395) ($77,525,933) Component Unit Activities $3,254,519 $3,862,215 $4,875,012 $4,758,214 158
2019 2020 2021 2022 2023 2024
$11,967,641 $15,629,601 $12,254,642 $10,458,884 $11,162,650 $14,901,980 49,899,296 50,000,809 54,736,561 34,379,474 49,903,663 57,399,596 19,270,613 21,661,442 20,749,666 14,030,717 23,353,510 24,392,108 5,781,826 5,314,692 5,804,134 2,835,173 4,436,659 6,043,266 12,819,429 11,828,353 10,619,181 7,430,968 10,723,168 12,725,048 1,848,263 1,974,834 1,935,532 2,004,572 1,793,203 1,655,588 101,587,068 106,409,731 106,099,716 71,139,788 101,372,853 117,117,586 5,038,553 4,491,375 3,748,667 2,226,556 3,435,551 4,078,051 5,038,553 4,491,375 3,748,667 2,226,556 3,435,551 4,078,051 $106,625,621 $110,901,106 $109,848,383 $73,366,344 $104,808,404 $121,195,637 $12,601,257 $13,853,263 $13,790,905 $12,892,687 $13,541,927 $15,592,949 $377,606 $394,882 $388,833 $1,039,816 $383,890 $411,655 5,304,832 5,824,555 5,332,486 6,302,852 7,063,009 7,365,020 4,158,338 3,082,495 2,719,148 2,996,881 3,146,404 4,146,897 4,312,259 5,470,010 8,390,282 4,493,292 4,982,748 5,757,689 5,750,846 4,370,442 2,932,869 4,105,520 5,158,806 5,488,779 4,584,855 5,545,731 5,132,596 22,520,880 6,763,815 6,530,607 8,042,524 1,348,640 8,718,764 9,867,883 18,438,231 8,181,276 32,531,260 26,036,755 33,614,978 51,327,124 45,936,903 37,881,923 5,362,016 5,063,318 3,351,864 3,836,881 4,682,140 4,552,629 5,362,016 5,063,318 3,351,864 3,836,881 4,682,140 4,552,629 $37,893,276 $31,100,073 $36,966,842 $55,164,005 $50,619,043 $42,434,552 $16,964,083 $16,874,361 $16,945,721 $16,458,113 $16,638,611 $16,657,102 5,907 5,719 5,609 5,568 5,531 5,775
1,433,871 175,217 277,752 517,752 175,481 248,116
$18,403,861 $17,055,297 $17,229,082 $16,981,433 $16,819,623 $16,910,993 ($69,055,808) ($80,372,976) ($72,484,738) ($19,812,664) ($55,435,950) ($79,235,663) 323,463 571,943 (396,803) 1,610,325 1,246,589 474,578
($68,732,345) ($79,801,033) ($72,881,541) ($18,202,339) ($54,189,361) ($78,761,085) $5,802,604 $3,202,034 $3,438,177 $4,088,746 $3,277,696 $1,318,044 (Continued)
159

CITY OF SAN RAFAEL

CHANGES IN NET POSITION
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2015 2016 2017 2018
General Revenues and Other Changes in Net Position
Governmental Activities:

Taxes:

Property $19,039,443 $19,998,567 $23,343,140 $24,627,373 Sales 32,269,915 34,348,089 31,819,259 34,119,502
Paramedic 3,820,240 4,226,020 5,485,637 4,923,148
Transient occupancy 2,661,878 3,063,263 2,984,758 3,115,151 Franchise 3,272,390 3,418,277 3,610,824 3,726,841
Business license 2,670,071 2,824,664 2,774,803 2,790,212 Other 3,295,751 3,465,193 1,824,830 2,245,882
Investment earnings 216,066 300,091 210,628 556,745
Gain (loss) from sale of capital assets
Miscellaneous 2,254,901 1,387,315 2,448,604 5,991,713
Transfers 432,630 448,478 536,000 632,657
Total Government Activities 69,933,285 73,479,957 75,038,483 82,729,224 Business-Type Activities:

Investment earnings 7,008 14,723 10,810 24,436
Gain (loss) from sale of capital assets
Transfers (432,630) (448,478) (536,000) (632,657)
Total Business-Type Activities (425,622) (433,755) (525,190) (608,221) Total Primary Government $69,507,663 $73,046,202 $74,513,293 $82,121,003 Component Unit:

San Rafael Sanitation District
Property Taxes $1,319,852 $1,367,172 $1,528,047 $1,620,584 Investment earnings 171,804 46,225 97,090 234,379
Miscellaneous 10,690
Aid from other governmental agencies 35,090
Total Component Unit $1,526,746 $1,413,397 $1,625,137 $1,865,653 Special Item
Governmental Activities $4,462,815
Component Unit Activities ($4,462,815)
Change in Net Position
Governmental Activities $19,075,483 ($9,953,355) $4,135,249 $4,627,422 Business-Type Activities 498,338 15,575 555,649 (32,352) Total Primary Government $19,573,821 ($9,937,780) $4,690,898 $4,595,070 Change in Net Position
Component Unit Activities $318,450 $5,275,612 $6,500,149 $6,623,867 160
2019 2020 2021 2022 2023 2024
$25,903,240 $26,491,505 $30,993,516 $32,324,129 $33,023,030 $35,635,864 35,626,646 33,784,770 39,599,113 44,110,471 45,632,867 44,554,220 4,934,584 4,923,092 5,153,448 5,109,836 5,224,387 5,315,689 3,203,499 2,410,745 1,797,578 2,976,234 3,396,479 3,592,883 3,627,254 4,029,050 3,973,806 4,209,979 4,424,917 4,581,586 2,788,496 2,824,722 2,575,341 2,645,636 2,583,546 2,791,927 1,783,170 2,152,617 2,996,950 3,108,543 2,975,282 2,937,428 1,450,434 1,907,591 388,645 (1,424,183) 1,708,860 5,283,676 26,784 989,991 41,673
5,904,968 2,470,926 2,813,015 2,965,697 3,233,349 3,242,511 608,698 586,387 538,405 521,209 521,322 582,148
85,830,989 81,581,405 90,856,601 97,537,542 102,724,039 108,559,605 63,870 71,583 4,065 8,802 8,320 9,864
(608,698) (586,387) (538,405) (521,209) (521,322) (582,148) (544,828) (514,804) (534,340) (512,407) (513,002) (572,284) $85,286,161 $81,066,601 $90,322,261 $97,025,135 $102,211,037 $107,987,321 $1,727,221 $1,833,137 $1,888,197 $2,086,682 $2,129,197 $2,322,601 519,793 876,369 48,614 (406,535) 1,328,202 2,201,511
7,768 489 11,759
$2,254,782 $2,709,995 $1,936,811 $1,680,147 $3,469,158 $4,524,112 $16,775,181 $1,208,429 $18,371,863 $77,724,878 $47,288,089 $29,323,942 (221,365) 57,139 (931,143) 1,097,918 733,587 (97,706)
$16,553,816 $1,265,568 $17,440,720 $78,822,796 $48,021,676 $29,226,236 $8,057,386 $5,912,029 $5,374,988 $5,768,893 $6,746,854 $5,818,595 161

CITY SAN RAFAEL

FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2015 (b) 2016 (b) 2017 2018
General Fund
Nonspendable $399,299 $476,316 $508,446 $1,008,234
Committed
Assigned 12,374,002 16,440,910 14,900,945 11,214,720
Unassigned 1,588,500 1,772,577 1,295,041
Total General Fund $14,361,801 $18,689,803 $16,704,432 $12,222,954 All Other Governmental Funds
Nonspendable $2,359 $9,449 $302,366
Restricted 31,742,184 27,552,245 $25,812,405 73,489,688 Committed 931,871 3,799,421 3,491,708 1,754,983
Assigned 712,810 119,183 115,103 115,942
Unassigned
Total all other governmental funds $33,389,224 $31,480,298 $29,419,216 $75,662,979 (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 2014-2015 and 2015-2016.

Financial data shown for preceding years were not adjusted for the presentation. ($5,000)
$15,000
$35,000
$55,000
$75,000
$95,000
2015
(b)
2016
(b)
2017 2018 2019 2020 2021 2022 2023 2024
Thousands
Total Fund Balance
162
/ - - - V - - - V - - - - - ,.
v - v - l/ -/
a
2019 2020 2021 2022 2023 2024 (a)
$37,271 $7,540 $377,861 $95,279 $78,057 $54,250
8,321,000 9,415,000 9,753,000 9,837,000
11,391,084 9,799,140 7,226,153 24,270,840 17,272,274 16,837,172 1,104,216 920,885 664,667 9,686,854
$12,532,571 $9,806,680 $16,845,899 $33,781,119 $27,767,998 $36,415,276 $27,627 $7,813 $89,761 $182,890 $3,506
53,260,504 34,288,302 $36,043,515 36,443,519 46,449,334 48,442,445 1,901,271 1,884,153 1,831,036 1,514,355 4,008,844 8,209,257 118,139 120,920 116,842 117,755 119,248 121,562
(11,118)
$55,307,541 $36,290,070 $37,991,393 $38,165,390 $50,760,316 $56,776,770 163

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,
2015 2016 2017 2018
Revenues
Taxes and special assessments $61,804,228 $65,866,218 $71,166,891 $74,893,789 Licenses and permits 2,456,820 2,588,411 2,559,841 2,718,166 Fines and forfeitures 556,076 435,829 400,283 384,268
Use of money and properties 444,757 460,206 349,349 654,531 Intergovernmental 13,233,503 13,685,003 8,063,156 8,878,974 Charges for services 15,346,794 14,366,744 13,425,161 14,660,094 Other revenue 1,777,003 3,208,749 1,842,053 5,219,414
Total Revenues 95,619,181 100,611,160 97,806,734 107,409,236 Expenditures
Current:

General government 10,203,687 11,349,079 10,557,416 10,010,100 Public safety 43,954,515 47,071,166 49,018,153 51,805,708 Public works and parks 12,758,643 14,390,699 16,752,961 17,647,312 Community development 3,416,859 3,670,108 3,759,564 4,051,224 Culture and recreation 11,616,777 12,048,104 12,646,728 12,823,771 Capital outlay 4,498,924 4,813,757 2,100,926 22,815,967 Capital improvement/special projects 2,186,986 4,826,576 7,403,249 Debt service:

Principal 75,172 75,172 175,172 280,172
Interest and fiscal charges 284,288 277,263 271,263 1,005,636 Total Expenditures 88,995,851 98,521,924 102,685,432 120,439,890 Excess (deficiency) of revenues over
(under) expenditures 6,623,330 2,089,236 (4,878,698) (13,030,654) Other Financing Sources (Uses)
Issuance of debt 46,565,800
Proceeds from PG&E loans
Proceeds from sale of capital assets
Transfers in 4,348,149 7,533,364 9,287,007 68,351,964
Transfers (out) (3,051,499) (6,582,555) (8,454,762) (68,373,222) Total other financing sources (uses) 1,296,650 950,809 832,245 46,544,542 Net Change in fund balances $7,919,980 $3,040,045 ($4,046,453) $33,513,888 Debt service as a percentage of
noncapital expenditures 0.4% 0.4% 0.5% 1.3%
164
Fiscal Year Ended June 30,
2019 2020 2021 2022 2023 2024
$77,101,185 $76,410,697 $86,347,728 $93,604,982 $96,373,395 $98,481,864 2,661,500 3,047,144 3,000,666 3,077,355 3,002,122 3,614,566 337,680 350,388 219,030 296,300 228,966 259,792
1,583,060 1,537,869 667,104 (1,597,714) 1,227,353 4,561,170 15,602,264 9,287,181 16,859,749 34,239,157 28,590,886 16,628,881 15,166,876 13,834,843 15,065,363 13,315,014 15,825,770 17,458,089 5,158,042 2,309,226 1,875,299 4,199,820 2,322,859 4,048,979 117,610,607 106,777,348 124,034,939 147,134,914 147,571,351 145,053,341 12,553,499 16,689,526 12,426,899 17,716,666 13,858,624 15,976,001 51,678,876 50,071,531 54,363,872 58,397,721 58,673,878 59,858,026 15,617,622 17,453,823 15,110,972 16,495,547 19,535,588 19,174,722 4,988,260 5,276,887 6,270,129 5,736,213 5,190,246 6,276,150 12,468,008 11,179,410 9,700,739 11,319,546 12,664,282 12,521,303 38,701,047 25,984,748 13,635,066 17,345,454 23,536,840 16,589,427 495,172 618,316 2,563,711 2,829,057 3,044,551 3,760,071 2,356,207 2,482,778 2,443,476 2,512,515 2,241,875 2,100,354 138,858,691 129,757,019 116,514,864 132,352,719 138,745,884 136,256,054 (21,248,084) (22,979,671) 7,520,075 14,782,195 8,825,467 8,797,287 23,999 2,518,949
1,000,000
15,482,297 13,797,526 7,549,590 6,441,764 14,576,818 11,679,112 (14,280,034) (12,585,216) (6,329,123) (5,114,742) (16,820,480) (8,331,616) 1,202,263 1,236,309 1,220,467 2,327,022 (2,243,662) 5,866,445 ($20,045,821) ($21,743,362) $8,740,542 $17,109,217 $6,581,805 $14,663,732

2.8% 3.0% 4.9% 4.6% 4.6% 4.9%
165

CITY OF SAN RAFAEL

ASSESSED AND ESTIMATED ACTUAL

VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b) 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% 2024 13,055,127,289 3,411,495,113 346,407,421 135,515,797 16,948,545,620 532,247,366 17,480,792,986 17,480,792,986 0.11774% (a)
(b)
Data Source: Marin County Assessor 2014/15 - 2023/24 Combined Tax Rolls The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides. These values are considered to be full market values.

California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area.
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Unsecured Property Secured Property
166
____. ________ ___....-------
-
- -
Fiscal School Misc. Special
Year City County (1) Districts Districts Total
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%
2024 0.154 0.295 0.7995 0.0678 1.3160 0.11774%
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 2014/15 - 2023/24 Tax Rate Tables

CITY OF SAN RAFAEL

PROPERTY TAX RATES

ALL OVERLAPPING GOVERNMENTS

LAST TEN FISCAL YEARS
Total
Direct Rate
167
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 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 0.02920 0.02520 Marin Community College Bonds 0.01800 0.01650 0.01420 0.03380 0.03390 0.02690 0.02650 0.02750 0.02580 0.02450 Marin Healthcare Bond 0.00000 0.02350 0.00930 0.02010 0.01900 0.01750 0.02180 0.02180 0.02070 0.01970 Miller Creek School Bonds 0.01470 0.04170 0.03830 0.02090 0.03450 0.03280 0.03030 0.01950 0.01830 0.01810 Ross Elementary School 0.06030 0.06150 0.06030 0.06190 0.06180 0.05710 0.05800 0.05760 0.05500 0.05680 Ross Valley School Bonds 0.05700 0.05550 0.05370 0.05680 0.05390 0.05270 0.05190 0.04870 0.05260 0.04100 San Rafael Elementary Bonds 0.02620 0.02570 0.05350 0.05030 0.07290 0.07050 0.06950 0.07400 0.06860 0.09580 San Rafael High Bonds 0.04850 0.04710 0.07100 0.05680 0.06170 0.06000 0.05830 0.04630 0.05030 0.07730 Tamalpais Union High School 0.03520 0.03130 0.02880 0.02690 0.02580 0.02390 0.02260 0.02060 0.01950 0.01750 Total Direct & Overlapping Tax Rates 1.25990 1.30280 1.32910 1.32750 1.36350 1.34140 1.33890 1.31600 1.34000 1.37590 City's Share of 1% Levy Per Prop 13 0.12233 0.12233 0.12233 0.12233 0.12232 0.12232 0.12231 0.12231 0.12231 0.12231 Total Direct Rate 0.11657 0.11672 0.11693 0.11709 0.11742 0.11724 0.11734 0.11734 0.11746 0.11774 Notes:

Data Source: Marin County Assessors Office 2014/15 - 2023/24 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.

LAST TEN FISCAL YEARS (RATE PER $100 OF ASSESSED VALUE)

DIRECT & OVERLAPPING GOVERNMENTS

PROPERTY TAX RATES

CITY OF SAN RAFAEL
168

CITY OF SAN RAFAEL

PRINCIPAL PROPERTY TAX PAYERS
CURRENT FY 2023/24 AND FY 2014/2015
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 $ 313,004,747 1.79% 113,704,290 $ 1.04% MGP XI Northgate LLC 233,540,088 1.34%
Kaiser 149,223,912 0.85%
NCP Multifamily LLC 118,812,612 0.68%
Pur San Rafael LLC 110,272,040 0.63%
State of CA Dept of Trans 74,066,882 0.44%
Bre Properties, Inc 69,897,558 0.40%
South Valley Apartments LLC 59,190,101 0.34%
Lofts Albert Park LLC 58,587,905 0.34%
1201 Fifth Avenue LLC 55,516,550 0.32%
Northbay Properties II 43,428,710 0.40%
Regency Center II Assoc LP 43,760,844 0.40%
Bay Apartment Communities Inc 41,597,687 0.38%
Northgate Mall Associates 136,547,395 1.25%
33 North Associates LLC 37,581,141 0.36%
MPB Associates LLC 36,320,878 0.33%
Sutter Health 50,853,957 0.47%
Barbara Fasken Trust 41,017,922 0.38%
Marin Sanitary Service 39,428,530 0.36%
Subtotal $ 1,242,112,395 7.11% 584,241,354 $ 5.36%
Total Net Assessed Valuation:

Fiscal Year 2023-2024 $ 17,480,792,986
Fiscal Year 2014-2015 $ 10,894,048,902
FY 2023-2024 FY 2014-2015
169
Delinquent taxes
Fiscal as a Percent of
Year Rate Levies Allocations Collections Apportionments Delinquencies Allocations 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%
2024 1.00 (2) 31,688,389 (2) 31,688,389 (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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Allocations Apportionments
170
-
~
- - ---- ---- ..., --.,
~
- ..., ~
~
~ --+- ~

CITY OF SAN RAFAEL

RATIO OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
Pension Lease
Fiscal Note Obligation Revenue
Year Payable Bonds Bonds Total
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
2024 502,689 1,240,000 41,909,435 43,652,124
Parking Total Percentage
Fiscal Services Note Primary of Personal Per
Year Bonds Payable Total Government Income (a) Capita (a) 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 51,052,953 1.26% 856.81
2024 3,388,653 0 3,388,653 47,040,777 N/A N/A
Data Sources: City of San Rafael
State of California, Department of Finance (population) U.S. Department of commerce, Bureau of the Census (income) (a) See Schedule of Demographic and Economic Statistics for personal income and population data.

Governmental Activities
Business-Type Activities
$-
$10
$20
$30
$40
$50
$60
$70
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Total Governmental
Total Business
171
□
■

CITY OF SAN RAFAEL

COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 2024
2023-24 Assessed Valuation: 17,480,792,986
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2024 % Applicable (1) Debt 6/30/2024 Marin Community College District $ 553,925,000 17.233% 95,457,895 $ San Rafael High School District 267,387,333 79.252% 211,909,809 Tamalpais Union High School District 63,970,000 0.063% 40,301 Miller Creek School District (Formerly Dixie School District) 27,077,957 67.227% 18,203,698 Ross School District 14,790,075 1.200% 177,481
Ross Valley School District 38,206,127 0.010% 3,821
San Rafael School District 156,067,975 84.716% 132,214,546 Marin Healthcare District 463,790,000 20.595% 95,517,551 Marin Emergency Radio Authority Parcel Tax Obligations 30,335,000 17.209% 5,220,350 City of San Rafael 1915 Act Bonds 986,700 100.000% 986,700 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 559,732,152 $ DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Marin County Certificates of Participation 71,500,000 17.209% 12,304,435 $ Marin County Pension Obligation Bonds 41,035,000 17.209% 7,061,713 Marin County Transit District General Fund Obligations - Marin Municipal Water District General Fund Obligations - Marin Community College District Certification of Participation 10,606,864 17.233% 1,827,881 San Rafael School District General Fund Obligations 2,435,000 84.716% 2,062,835 City of San Rafael General Fund Obligations 40,727,689 100.000% 40,727,689 (2) City of San Rafael Pension Obligations 1,240,000 100.000% 1,240,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 65,224,553 Less: City of San Rafael obligations supported by enterprise revenues 3,395,000 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 61,829,553 TOTAL GROSS DIRECT DEBT 41,967,689
TOTAL NET DIRECT DEBT 38,572,689
TOTAL OVERLAPPING DEBT 582,989,016
GROSS COMBINED TOTAL DEBT 624,956,705 (3)
NET COMBINED TOTAL DEBT 621,561,705
(2) Includes $502,689 PG&E notes.

Ratios to 2023-24 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 3.20%
Total Gross Direct Debt ($41,967,689) 0.24%
Total Net Direct Debt ($38,572,689) 0.22%
Gross Combined Total Debt 3.58%
Net Combined Total Debt 3.56%
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 172
ASSESSED VALUATION: $ 17,480,792,986
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) $ 655,529,737 LESS AMOUNT OF DEBT SUBJECT TO LIMIT: 43,652,124
LEGAL BONDED DEBT MARGIN $ 611,877,613
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
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%
2024 655,529,737 43,652,124 611,877,613 7.13%
NOTE: (a)
Source: City of San Rafael's Finance Department

CITY OF SAN RAFAEL

COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2024
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.
173

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 2015 $ 5,180,554 $ 4,031,161 $ 1,149,393 $ 245,000 206,388$ $ 451,388 2.55 2016 5,226,904 3,739,321 1,487,583 250,000 201,488 451,488 3.29 2017 5,279,801 2,425,281 2,854,520 260,000 193,988 453,988 6.29 2018 5,219,721 4,320,695 899,026 270,000 186,188 456,188 1.97 2019 5,425,883 4,283,754 1,142,130 275,000 178,088 453,088 2.52 2020 5,134,901 4,072,433 1,062,468 285,000 169,838 454,838 2.34 2021 3,355,929 3,332,327 23,602 290,000 161,288 451,288 0.05 2022 3,845,683 1,851,746 1,993,937 300,000 152,588 452,588 4.41 2023 4,690,455 3,071,480 1,618,974 310,000 143,588 453,588 3.57 2024 4,562,494 3,504,219 1,058,275 320,000 134,288 454,288 2.33 Notes: (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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Coverage
174
I -

CITY OF SAN RAFAEL

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
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) 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%
2023 59,585 254,407 23.42% 4,043,062 67,853 3.10%
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 0%
5%
10%
15%
20%
25%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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
$4,500,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Personal Income (in thousands)
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Per Capita Personal Income
0%
1%
2%
3%
4%
5%
6%
7%
8%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Average Citywide Unemployment Rate
175
I

I I I I
Employer # (A) # (A) # (A) # (A)
County of Marin 2,505 1.96% 2,436 1.90% 2,366 1.84% 2,358 1.88% Kaiser Permanente 902 0.71% 2,339 1.83% 2,339 1.82% 2,059 1.64% BioMarin Pharmaceutical Inc. 950 0.74% 950 0.74% 950 0.74% 950 0.76% San Rafael Elementary/High Schools Dist(s) 700 0.55% 700 0.55% 700 0.55% 700 0.56% City of San Rafael 416 0.33% 420 0.33% 412 0.32% 405 0.32% Dominican University of California 302 0.24% 394 0.31% 394 0.31% 394 0.31% Buckelew Programs 0.00% 0.00% 0.00% 0.00%
Lifehouse 0.00% 0.00% 0.00% 0.00%
EO Poducts 0.00% 0.00% 0.00% 108 0.09%
Toyota Marin 0.00% 0.00% 0.00% 0.00%
Ghilotti Bros., Inc. 298 0.23% 298 0.23% 298 0.23% 298 0.24% Community Action Marin 200 0.16% 200 0.16% 200 0.16% 270 0.21% Equator Coffees, LLC 0.00% 95 0.07% 95 0.07% 88 0.07%
Totals 3,768 4.92% 7,754 6.04% 7,630 6.07% 7,306 22.55% # Number of FTE employees in Marin locations
(A) Percentage of total employment
Note: From the EDD website, it shows that the Total Average 2023 Employment in the City of San Rafael was 127,600 of which it is used as the denominator for the 2023 percentages are calculated.

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

PRINCIPAL EMPLOYERS

CITY OF SAN RAFAEL
2021 2020
FISCAL YEAR 2023-2024
2023 2022

LAST TEN CALENDAR YEARS
176

# (A) # (A) # (A) # (A) # (A) # (A)
2,317 7.15% 2,305 7.29% 2,283 7.22% 2,206 6.73% 2,194 6.71% 2,130 6.85% 2,014 6.22% 2,092 6.62% 2,061 6.52% 662 2.02% 1,575 4.82% 1,637 5.26% 950 2.93%
700 2.16% 700 2.22% 700 2.22% 650 1.98% 650 1.99% 600 1.93% 410 1.27% 410 1.30% 454 1.44% 577 1.76% 581 1.78% 666 2.14% 421 1.30% 319 1.01% 456 1.44% 485 1.48% 422 1.29% 354 1.14% 103 0.32% 106 0.34% 240 0.76% 186 0.57%
100 0.31%
150 0.46%
141 0.44%

6,663 21.09% 7,933 25.10% 5,314 16.20% 5,620 17.19% 6,025 19.37% 6,079 19.87% 2019 2018 2017 2016 2015 2014
177

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
General Government 58.11 60.61 62.11 60.11 63.11 62.11 61.41 63.69 60.69 63.69 Public Safety 171.75 175.75 176.55 175.35 175.65 175.30 181.50 185.00 185.00 187.00 Public Works and Parks 62.00 62.00 63.00 66.67 66.00 68.00 69.00 70.00 70.00 72.00 Community Development 17.80 19.80 20.00 21.00 22.00 21.75 21.75 23.00 24.00 27.00 Culture and Recreation 84.23 84.25 84.35 87.35 85.82 78.07 78.07 78.07 83.07 66.65 Total 393.89 402.41 406.01 410.48 412.58 405.23 411.73 419.76 422.76 416.34 Data Source: City of San Rafael's Finance Department

CITY OF SAN RAFAEL

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
0 50
100
150
200
250
300
350
400
450
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
FTE's
General Government Public Safety Public Works and Parks Community Development Culture and Recreation
179
□
•
•
•
•
2015 2016 2017 2018
Function/Program
Public safety:

Fire:

Inspection permit issued 282 198 233 186
Police:

Police calls for service 55,805 57,026 53,567 51,013
Law violations:

Part I crimes 2,533 2,523 2,392 2,326
Physical arrests (adult and juvenile) 3,450 3,453 2,526 2,019 Traffic violations 4,168 3,252 3,341 2,758
Parking violations 36,398 34,803 36,169 36,208
Public works
Street resurfacing (miles) (Eng Div) 6.40 6.76 2.32 2.50 Potholes repaired N/A N/A N/A N/A
Asphalt used for street repairs (tons) 11,000 7,195 5,800 4,730 Culture and recreation:

Recreation class participants 10,023 12,725 13,493 12,842 Recreation Facility Rentals
Childcare School-Age program participants
Library:

Items in collection 127,763 227,890 117,354 115,812
Total items borrowed 443,639 469,790 327,297 324,452
Note: N/A denotes information not available.

CITY OF SAN RAFAEL

OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
180
2019 2020 2021 2022 2023 2024
123 167 207 195 170 191
47,919 47,968 43,649 42,901 42,693 44,150
1,893 2,988 2,546 2,015 2,024 2,318
1,923 2,527 1,893 1,945 1,769 1,140
2,944 2,342 2,161 1,710 1,734 1,123
40,407 28,029 24,099 30,178 35,399 33,510

4.30 14.30 5.00 11.70 21 12
N/A 967 1,368 1,024 1,335 1,275
7,200 5,885 3,650 5,100 3,411 11,494

N/A N/A N/A N/A
5,146 3,875 1,550 1,962 7,001 7,160
7,592 6,270 2,132 3,675 2,660 2,703
123,432 140,610 103,399 95,687 97,117 93,136
356,301 199,903 113,385 169,378 185,800 184,897
181
2015 2016 2017 2018
Function/Program
Public safety:

Fire stations 6666
Police stations 1111
Police Fleet
Public works
Miles of streets 173 173 173 173
Street lights 4,435 4,435 4,435 4,435
Parking District lights
Traffic Signals 89 89 89 89
Culture and recreation:

Community services:

City parks 20 20 20 20
City parks acreage 42424242
Playgrounds 14 14 14 14
City trails 20 20 20 20
Community gardens 1111
Cultural Art Centers
Community centers 4444
Senior centers 0000
Sports centers 0000
Performing arts centers 0000
Swimming pools 1111
Tennis courts 10 10 10 10
Basketball Courts 5555
Baseball/softball diamonds 5555
Soccer/football fields 2222
Library:

City Libraries 2222
Wastewater:

Miles of sanitary sewers 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
182
2019 2020 2021 2022 2023 2024
666 6 6 6
111 1 1 1
173 173 173 173 173 173
4,435 4,435 4,435 4,448 4,448 4,448
89 90 90 90 90 90
20 24 24 24 24 23
42 99 99 99 99 99
14 14 14 14 14 13
20 20 20 20 20 20
122 2 2 2
11 1 1 1
4 3 3 3 3 33
000 0 0 0
000 0 0 0
000 0 0 0
111 1 1 1
10 10 10 10 10 10
566 6 6 6
555 5 5 5
222 2 2 2
222 2 2 2
145 145 145 145 145 145
183

CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL
FOR THE YEAR ENDED JUNE 30, 2024
This Page Left Intentionally Blank

CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL
For the Year Ended June 30, 2024
Table of Contents
Page
Memorandum on Internal Control .................................................................................................. 1

Schedule of Other Matters ...................................................................................................... 3 Status of Prior Year Significant Deficiencies ......................................................................... 9 Schedule of Prior Year Other Matters .................................................................................. 11

This Page Left Intentionally Blank

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, 2024, 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.

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

Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. Given these limitations during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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

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 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.

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
November 4, 2024
1 Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
, [email protected]
w mazeassociates.com
This Page Left Intentionally Blank

CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
2024-01 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 Items 2023-02 and 2022-02. We determined that the City adopted new purchasing guidelines effective July 1, 2024. However, because the procedures were not in place until after June 30, 2024, the matter is considered to be unaddressed as of that date and therefore, it is deemed to be a current year Other Matter. Details of the matter are listed in the Status of Prior Year Other Matters.

Management’s Response:

As noted, management had concurred with the recommendation(s) from prior Other Matters (2023-2 and 2022-02) related to Clarification of Requirements for compliance with the City’s Purchasing Policy. Concurrent with the start of the current fiscal year (July, 1, 2024) City management issued updated guidelines related to the City’s purchasing policy and procedures. Included as part of the new guidelines were updates specific to past findings issued by the City’s Independent Auditor. Specifically:
1) Effective July 1, 2024 Purchase Orders are now required for all purchases and contracts of $10,000 or more.
2) The updated 2024-25 purchasing guidelines and procedures further clarify that, for purposes of application of delegated spending authority, approval levels are to be based on total contract amount(s) (original plus any amendments or change orders), rather than on an individual transaction.

Management recognizes that the update to the City’s purchasing guidelines and procedures became formally effective with the fiscal year starting 7/1/24, and therefore was not in place for the 2023-24 fiscal year, subject of the current audit report. Staff has reviewed the actions taken with the Independent Auditor and is confident that this finding will be deemed resolved in our next annual audit report.
3 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS

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

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.

4 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 101 – Compensated Absences (Continued)
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.

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.

GASB 102 – Certain Risk Disclosures
State and local governments face a variety of risks that could negatively affect the level of service they provide or their ability to meet obligations as they come due. Although governments are required to disclose information about their exposure to some of those risks, essential information about other risks that are prevalent among state and local governments is not routinely disclosed because it is not explicitly required. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints.

This Statement defines a concentration as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal action of the government’s highest level of decision-making authority. Concentrations and constraints may limit a government’s ability to acquire resources or control spending.

This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued.

5 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 102 – Certain Risk Disclosures (Continued)
If a government determines that those criteria for disclosure have been met for a concentration or constraint, it should disclose information in notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact. The disclosure should include descriptions of the following:
• The concentration or constraint.
• Each event associated with the concentration or constraint that could cause a substantial impact if the event had occurred or had begun to occur prior to the issuance of the financial statements.
• Actions taken by the government prior to the issuance of the financial statements to mitigate the risk.

How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition.

6 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2025/26:

GASB 103 – Financial Reporting Model Improvements
The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues.

Management’s Discussion and Analysis - This Statement continues the requirement that the basic financial statements be preceded by management’s discussion and analysis (MD&A), which is presented as required supplementary information (RSI). MD&A provides an objective and easily readable analysis of the government’s financial activities based on currently known facts, decisions, or conditions and presents comparisons between the current year and the prior year. This Statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions.

Furthermore, this Statement stresses that the detailed analyses should explain why balances and results of operations changed rather than simply presenting the amounts or percentages by which they changed.

This Statement emphasizes that the analysis provided in MD&A should avoid unnecessary duplication by not repeating explanations that may be relevant to multiple sections and that “boilerplate” discussions should be avoided by presenting only the most relevant information, focused on the primary government.

In addition, this Statement continues the requirement that information included in MD&A distinguish between that of the primary government and its discretely presented component units.

Unusual or Infrequent Items - This Statement describes unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the inflows and outflows related to each unusual or infrequent item separately as the last presented flow(s) of resources prior to the net change in resource flows in the government-wide, governmental fund, and proprietary fund statements of resource flows.

Presentation of the Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net Position - This Statement requires that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses.

Operating revenues and expenses are defined as revenues and expenses other than nonoperating revenues and expenses. Nonoperating revenues and expenses are defined as (1) subsidies received and provided, (2) contributions to permanent and term endowments, (3) revenues and expenses related to financing, (4) resources from the disposal of capital assets and inventory, and (5) investment income and expenses.

In addition to the subtotals currently required in a proprietary fund statement of revenues, expenses, and changes in fund net position, this Statement requires that a subtotal for operating income (loss) and noncapital subsidies be presented before reporting other nonoperating revenues and expenses. Subsidies are defined as (1) resources received from another party or fund (a) for which the proprietary fund does not provide goods and services to the other party or fund and (b) that directly or indirectly keep the proprietary fund’s current or future fees and charges lower than they would be otherwise, (2) resources provided to another party or fund (a) for which the other party or fund does not provide goods and services to the proprietary fund and (b) that are recoverable through the proprietary fund’s current or future pricing policies, and (3) all other transfers.

7 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 103 – Financial Reporting Model Improvements (Continued) Major Component Unit Information - This Statement requires governments to present each major component unit separately in the reporting entity’s statement of net position and statement of activities if it does not reduce the readability of the statements. If the readability of those statements would be reduced, combining statements of major component units should be presented after the fund financial statements.

Budgetary Comparison Information - This Statement requires governments to present budgetary comparison information using a single method of communication—RSI. Governments also are required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. An explanation of significant variances is required to be presented in notes to RSI.

How the Changes in This Statement Will Improve Financial Reporting The requirements for MD&A will improve the quality of the analysis of changes from the prior year, which will enhance the relevance of that information. They also will provide clarity regarding what information should be presented in MD&A.

The requirements for the separate presentation of unusual or infrequent items will provide clarity regarding which items should be reported separately from other inflows and outflows of resources.

The definitions of operating revenues and expenses and of nonoperating revenues and expenses will replace accounting policies that vary from government to government, thereby improving comparability.

The addition of a subtotal for operating income (loss) and noncapital subsidies will improve the relevance of information provided in the proprietary fund statement of revenues, expenses, and changes in fund net position.

The requirement for presentation of major component unit information will improve comparability.

The requirement that budgetary comparison information be presented as RSI will improve comparability, and the inclusion of the specified variances and the explanations of significant variances will provide more useful information for making decisions and assessing accountability.

8 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

STATUS OF PRIOR YEAR SIGNIFICANT DEFICIENCIES
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.

Current Status: Implemented.
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.

9 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

STATUS OF PRIOR YEAR SIGNIFICANT DEFICIENCIES
2022-01 Inaccurate Building Permit Fees (Continued)
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.

Current Status: Implemented.
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: Implemented.
10 CITY OF SAN RAFAEL

MEMORANDUM ON INTERNAL CONTROL

STATUS OF PRIOR YEAR OTHER MATTERS
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.

San Rafael City CouncilNovember 18, 2024

San Rafael City Council
November 18, 2024