Agenda packet — San Rafael City Council, December 1, 2025 (part 1 of 2)

AGENDA - REVISED

SAN RAFAEL CITY COUNCIL - MONDAY, DECEMBER 1, 2025
REGULAR MEETING AT 6:00 P.M.

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

Watch on Webinar: https://tinyurl.com/city-council-1
Watch on YouTube: www.youtube.com/cityofsanrafael
Listen by phone: (669) 444-9171
ID: 863-4489-1398#
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 PM

1. Mayor Kate to announce Closed Session items.

CLOSED SESSION – THIRD FLOOR CONFERENCE ROOM – 5:00 PM

2. Closed Session:
a. Public Employee Performance Evaluation (Section 54957) Title: City Manager
Conference with Labor Negotiators (Section 54957.6)
Agency Designated Representatives: Mayor Kate Colin, Vice Mayor Maribeth Bushey 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.

4. Consent Calendar Items:
2 a. Approval of Minutes
Approve Minutes of the Regular City Council Meetings of November 3, 2025 and November 17, 2025 (CC)
Recommended Action - Approve Minutes as submitted
b. 350 Merrydale Ordinance Adoption
Final Adoption of Ordinance 2057:

An Uncodified Ordinance of the City Council of the City of San Rafael Adopting Reasonable Local Standards and Procedures for Homeless Shelters Pursuant to Government Code Sections 8698, Et Seq; CEQA Determination: Not a Project Per Government Code Sections 65660(b), 65662; CEQA Guideline 15378(b)(2), (4), (5); Alternatively Exempt Pursuant to CEQA Guidelines 15061(b)(3) [Common Sense]; 15269(c) [Emergency] (CC) Recommended Action – Final Adoption of Ordinance 2057
c. Downtown Business Improvement District (BID) Business Assessment Annual Renewal Resolution Approving the Downtown San Rafael Business Improvement District Annual Report, Declaring the City Council’s Intention to Levy an Annual Assessment for Calendar Year 2026 for the Downtown San Rafael Business Improvement District, and Setting a Public Hearing (CED)
Recommended Action – Adopt Resolution
d. Funding Agreements to Prepare the Northgate and Southeast San Rafael Specific Plans Resolutions Authorizing the City Manager to Enter Into: (CED) i. Supplement No. 3 to the Master Funding Agreement Between the Metropolitan Transportation Commission (“MTC”) and the City of San Rafael to Fund the Preparation of the Northgate Specific Plan and Authorizing Supplemental Budget Appropriations Totaling $797,000 in Fiscal Year (FY) 2025-26
Recommended Action – Adopt Resolution
ii. Supplement No. 4 to the Master Funding Agreement Between the Metropolitan Transportation Commission (“MTC”) and the City of San Rafael to Fund the Preparation of the Southeast San Rafael Specific Plan and Authorizing Supplemental Budget Appropriations Totaling $797,000 in Fiscal Year (FY) 2025-26 Recommended Action – Adopt Resolution
e. San Rafael Traffic Signal System Consultant Support Services Resolution Authorizing the City Manager to Execute a First Amendment to Task Order No. 102 with Advanced Mobility Group for Additional Transportation Design Engineering Services Associated with Ongoing Support of San Rafael’s Traffic Signal System, in the Amount Not to Exceed $100,000, Increasing the Total Not to Exceed Amount Under the Task Order to $170,000 (PW)
Recommended Action – Adopt Resolution

OTHER AGENDA ITEMS

5. Other Agenda Items
a. 2025-2027 Three-Year Pavement Management Plan
Informational Presentation on 2025-2027 Three-Year Pavement Management Plan (PW) Recommended Action – Receive Plan and Presentation
3 b. Year-End Audited Financial Statements and Related Audit Reports Fiscal Year 2024-25 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 Reports
c. FY2025-26 First Quarter Budget Update
FY2025-26 First Quarter Budget Update: Revenue and Expenditure Results for the Quarter Ending September 30, 2025 (Fin)
Recommended Action – Accept Budget Update

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/.

Minutes subject to approval at the December 1st City Council Meeting

MINUTES

SAN RAFAEL CITY COUNCIL - MONDAY, NOVEMBER 3, 2025
REGULAR MEETING AT 6:00 P.M.

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

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

OPEN SESSION – THIRD FLOOR CONFERENCE ROOM – 5:00 PM

1. Mayor Kate announced Closed Session items.

CLOSED SESSION – THIRD FLOOR CONFERENCE ROOM – 5:00 PM

2. Closed Session:
a. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION pursuant to Government Code Section 54956.9(d)(2) (1 potential case)

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

Absent: None
Also Present: City Manager Cristine Alilovich
City Attorney Robert Epstein
Deputy City Clerk Brenna Nurmi
Mayor Kate called the meeting to order at 6:03 p.m. and invited Deputy City Clerk Brenna Nurmi to call the roll. All members of the City Council were present.

City Attorney Robert Epstein announced that no reportable action was taken in Closed Session. 2 Mayor Kate provided opening remarks which included gratitude to City Staff, the ongoing Federal Government Shutdown, Election Day and a land acknowledgment.

Deputy City Clerk Brenna Nurmi 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)

3. City Manager and Councilmember Reports:

City Manager Cristine Alilovich provided the following announcements and updates:
• 350 Merrydale Project Update
 Special City Council Meeting to be held Thursday, November 6, at the Osher Marin Jewish Community Center, 5-7 p.m.
 Regular City Council Meeting to be held Monday, November 17, City Hall Chambers, 6 p.m.
 Marin County Board of Supervisors Meeting to be held November 18 • Citywide Bicycle and Pedestrian Plan Update
 Community Meeting to be held Wednesday, November 19, B Street Community Center, 5:30 p.m.
 Community Meeting to be held Thursday, December 4, Virtual, noon • North Bay Business Journal’s Excellence in Construction Award given to the Library and Public Works Teams for the Downtown Library Renovation
• Second Friday Art Walk to be held November 14, downtown, 5-8 p.m.

City Councilmember Reports:
• Vice Mayor Bushey reported on the Merrydale webinar and Marin County Council of Mayors and Councilmembers (MCCMC) meetings.
• Councilmember Kertz reported on a Housing Subcommittee meeting, a Ritter Center event with Sam Tsemberis, founder of Housing First, a MCCMC meeting, a First 5 forum on federal funding, the ELM Open House on Kerner, a MCCMC legislative meeting, the Merrydale community meeting, and the Marin Environmental Housing Collaborative (MEHC) now called Marin Home.
• Councilmember Hill reported on the Merrydale community meeting. • Councilmember Llorens Gulati reported on a Marin Sea Level Rise meeting, a Climate Change Action Plan meeting, a townhall meeting with the Bay Point neighborhood, a meeting with Spinnaker Point and Bay Point neighbors with The Canal Arts, the Canal Alliance Leadership Class graduation, the Día de los Muertos celebration in the Canal, a Marin Transit meeting and Halloween in the Bret Harte neighborhood. • Mayor Kate reported on the Ritter Center event with Sam Tsemberis, founder of Housing First, and the ELM Open House on Kerner, a Transportation Authority of Marin (TAM) meeting, and the Veterans Day ceremony to be held on Tuesday, November 11, at Marin Exhibit Hall at 9 a.m.

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

CONSENT CALENDAR:

Mayor Kate invited public comment; however, there was none. 3 Councilmember Llorens Gulati moved and Councilmember Kertz seconded to approve the Consent Calendar.

AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None

4. Consent Calendar Items:
a. Approval of Minutes
Approve Minutes of the Special and Regular City Council Meetings of October 20, 2025 (CC)
Approved minutes as submitted
b. Establishment of Mobile Food Vending Program and Revised Ordinance Final Adoption of Ordinance 2053: An Ordinance Amending Title 10 (Businesses, Professions, Occupations, Industries and Trade) of the Municipal Code of the City of San Rafael, to Adopt Chapter 10.50, Mobile Vending Permit Program (CC) Final adoption of Ordinance 2053
c. Annual Winter Wonderland Event Street Closure
Resolution Authorizing the Temporary Closure of Fourth Street (Between B Street and Lootens Place) and A Street (Between Julia Street and the Parking Entrance on A Street) in Downtown San Rafael on November 29, 2025, for the Annual Winter Wonderland Event (CED) Adopted Resolution 15471
d. Angle Street Parking on a Portion of Fifth Avenue Near Sun Valley Elementary School Resolution Authorizing Angled Parking Along a Portion of Fifth Avenue Between River Oaks Road and Happy Lane; CEQA Determination: Exempt Pursuant to CEQA Guideline Sections 15060(c)(3) (PW)
Adopted Resolution 15472
e. Lincoln Avenue Corridor Safety Improvements at Wilson Court and Brookdale Avenue Project Resolution Rejecting All Bids for the Lincoln Avenue Corridor Safety Improvements at Wilson Court and Brookdale Avenue Project, City Project No. 11453 (“Project”), and Authorizing the City Clerk to Call for New Bids (PW)
Adopted Resolution 15473

SPECIAL PRESENTATIONS

5. Special Presentations
a. Presentation of Proclamation in Recognition of Native American Heritage Month (HR) Mayor Kate presented the proclamation and Tribal Councilmember Robert Stafford (Federated Indians of Graton Rancheria) provided comments. b. Presentation of Proclamation in Recognition of Jaimi Cortes, for her Service on the Board of Library Trustees (LR)
Mayor Kate presented the proclamation and Jaimi Cortes provided comments.

PUBLIC HEARINGS

6. Public Hearings
4 a. Triennial Fire Code Ordinance Amendments
Adopt the Ordinance Amending Chapter 4.08 of the San Rafael Municipal Code to Adopt by Reference the California Fire Code 2025 Edition with Local Amendments Based on the International Fire Code 2024 Edition, and the 2025 International Wildland-Urban Interface Code, Based on the 2024 International Wildland-Urban Interface Code and Adopting Findings of Fact Supporting the Amendments to Such Codes; CEQA Determination:

Exempt Pursuant to CEQA Guideline 15061(b)(3) (FD)
Deputy Fire Chief Bob Sinnott presented the Staff Report.

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

Councilmember Kertz moved and Vice Mayor Bushey seconded to adopt the Ordinance.

AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None
Final adoption of Ordinance 2054
The Deputy City Clerk read the title of the Ordinance

AN ORDINANCE OF THE CITY OF SAN RAFAEL CITY COUNCIL AMENDING CHAPTER

4.08 OF THE SAN RAFAEL MUNICIPAL CODE TO ADOPT BY REFERENCE THE CALIFORNIA FIRE CODE 2025 EDITION WITH LOCAL AMENDMENTS BASED ON THE INTERNATIONAL FIRE CODE 2024 EDITION, AND THE 2025 INTERNATIONAL WILDLAND-URBAN INTERFACE CODE BASED ON THE 2024 INTERNATIONAL

WILDLAND-URBAN INTERFACE CODE AND ADOPTING FINDINGS OF FACT

SUPPORTING THE AMENDMENTS TO SUCH CODES
b. Smoking Ordinance Amendments
An Ordinance Amending Chapter 9.04 of the San Rafael Municipal Code, the City’s Clean Indoor and Outdoor Air and Health Protection, to Prohibit All Smoking in Duplexes and Multi-Family Residences and to Allow Small Claims Courts to Grant Injunctive Relief; CEQA Determination: Exempt Pursuant to CEQA Guideline 15061 (b)(3) (CA) City Attorney Rob Epstein introduced Deputy City Attorney Katherine Kasameyer, who presented the Staff Report.

Staff responded to questions from the City Council.

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

City Councilmembers provided comments.

Vice Mayor Bushey moved and Councilmember Hill seconded to introduce the Ordinance, waive further reading and refer to it by title only.

AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None
5 Introduced the Ordinance, waived further reading and referred to it by title only The Deputy City Clerk read the title of the Ordinance

AN ORDINANCE OF THE CITY OF SAN RAFAEL CITY COUNCIL AMENDING CHAPTER

9.04 OF THE SAN RAFAEL MUNICIPAL CODE, THE CITY’S CLEAN INDOOR AND

OUTDOOR AIR AND HEALTH PROTECTION, TO PROHIBIT ALL SMOKING IN DUPLEXES

AND MULTI-FAMILY RESIDENCES AND TO ALLOW SMALL CLAIMS COURTS TO GRANT

INJUNCTIVE RELIEF

OTHER AGENDA ITEMS

7. Other Agenda Items
a. Greenhouse Gas Emissions Report and Sustainability Priorities Progress Update Accept the Greenhouse Gas Inventory Report for 2023, the Fiscal Year 2023-2025 TwoYear Sustainability Workplan Priorities Update, and the Countywide Building Electrification Roadmap (CM)
Cory Bytof, Sustainability Program Manager and Christine O’Rourke, Marin Climate and Energy Partnership presented the Staff Report.

Staff responded to questions from the City Council (during the staff presentation and afterwards).

Mayor Kate invited public comment.

Speakers: Bill Carney, Sustainable San Rafael, Ben Snyder, Sustainable San Rafael, Name Withheld, Belle Cole, Steering Committee Chair of the Marin Biomass Project Staff responded to questions raised during public comment.

City Councilmembers provided comments.

Councilmember Llorens Gulati moved and Councilmember Kertz seconded to accept the Greenhouse Gas Inventory and Reduction Strategy Annual Report for 2023, the Fiscal Year 2023-2025 Two-Year Sustainability Workplan Priorities Update, and the Countywide Building Electrification Roadmap.

AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: None
Accepted report, update and roadmap

OPEN TIME FOR PUBLIC EXPRESSION
None
6 ADJOURNMENT:

Mayor Kate adjourned the meeting at 7:30 p.m., in memory of Joan Thayer. __________________________
LINDSAY LARA, City Clerk
APPROVED THIS _____DAY OF____________, 2025
_____________________________________
KATE COLIN, Mayor
Minutes subject to approval at the December 1st City Council Meeting

MINUTES

SAN RAFAEL CITY COUNCIL - MONDAY, NOVEMBER 17, 2025
REGULAR MEETING AT 6:00 P.M.

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

Watch on Webinar: https://tinyurl.com/city-council-2
Watch on YouTube: www.youtube.com/cityofsanrafael
Listen by phone: (669) 444-9171
ID: 860-6190-5675#
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].

OPEN SESSION

1. None

CLOSED SESSION

2. Closed Session: None

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

Absent: Councilmember Hill
Also Present: City Manager Cristine Alilovich
City Attorney Robert Epstein
City Clerk Lindsay Lara
Mayor Kate called the meeting to order at 6:02 p.m. and invited City Clerk Lindsay Lara to call the roll. Councilmember Hill was absent.

Mayor Kate provided opening remarks which included gratitude to City Staff, a preview of how public meetings work, and a land acknowledgment.

City Clerk Lindsay Lara 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:
2 (including AB 1234 Reports on Meetings and Conferences Attended at City Expense)

3. City Manager and Councilmember Reports:

City Manager Cristine Alilovich provided the following announcements and updates:
• Trust for Public Land announced final funding was secured to acquire the property at 620 Canal Street for an eventual waterfront park and pedestrian bridge • Planning Commission meeting to be held Tuesday, November 18, City Hall Chambers at 7 p.m. and Police Advisory & Accountability Committee meeting to be held Wednesday, November 19, City Hall Chambers at 6 p.m.
• Citywide Bicycle and Pedestrian Plan Update and meetings to be held Wednesday, November 19, B Street Community Center at 5:30 p.m. and Thursday, December 4, virtual meeting at noon
• Wet weather and storm preparation resources
• Holiday of Lights Winter Wonderland to be held Saturday, November 29, Downtown City Plaza at 5 p.m.
• Giant Menorah Lighting & Gelt Drop to be held Sunday, December 21, Downtown City Plaza at 5 p.m.
• Shop Small Saturday, to be held Saturday, November 29, downtown, all day • 3-hour free parking in the garage lots, November 29 through January 4 (weekends are free, as always)
• City Hall Thanksgiving Closure November 27 and 28 – 911 emergency services are always open
City Councilmember Reports:
• Vice Mayor Bushey reported on a Central Marin Sanitation Agency board meeting, and a Pt. San Pedro Road Coalition meeting.
• Councilmember Kertz reported on the San Rafael Chamber Women of Industry event, the ribbon-cutting at Aldersly, a Special City Council meeting on 350 Merrydale at the JCC, the Homeless Policy Steering Committee, and the City Council Retreat. • Councilmember Llorens Gulati reported on the Chamber of Commerce Women of Industry event, a tour of 620 Canal Street, and a meeting with Supervisor Rodoni. • Mayor Kate reported on hosting the Girl Scouts from Sun Valley School, and a Gun Safety Collaborative meeting.

Mayor Kate invited public comment; however there was none.

CONSENT CALENDAR:

Mayor Kate invited public comment.

Speaker: Ken Dickinson
Councilmember Llorens Gulati commented on Agenda Item 4.g. “Shop San Rafael” Proclamation.

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

AYES: Councilmembers: Bushey, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Hill
3 4. Consent Calendar Items:
a. Approval of Minutes
Approve Minutes of the Special City Council Meetings of November 6, 2025 and November 12, 2025 (CC)
Approved Minutes as submitted
b. Smoking Ordinance Amendments
Final Adoption of Ordinance 2055:An Ordinance Amending Chapter 9.04 of the San Rafael Municipal Code, the City’s Clean Indoor and Outdoor Air and Health Protection, to Prohibit All Smoking in Duplexes and Multi-Family Residences and to Allow Small Claims Courts to Grant Injunctive Relief (CC)
Final adoption of Ordinance 2055
c. Agreements for On-Call Environmental Consulting Services Resolution Authorizing the City Manager to Execute Professional Services Agreements for On-Call Environmental Consulting Services with Rincon Consultants, Inc. and AECOM in an Amount Not to Exceed $500,000 for Each Agreement and Sicular Environmental Consulting in an Amount Not to Exceed $200,000; and Authorizing the Finance Director to Process Supplemental Budget Appropriations within the Development Services Fund (207) on a Continual Basis, Not to Exceed Available Funds (CED) Adopted Resolution 15474
d. Installation of a Mural in the Pickleweed Library’s New Children’s Room at 50 Canal Street
Resolution Approving an Art Installation Proposed by Youth In Arts for an Artistic Youth Mural titled ‘Our Community, Our Story’ in the New Children’s Room at the Pickleweed Library, Located at 50 Canal Street (LR)
Adopted Resolution 15475
e. City Quarterly Investment Report
Acceptance of City of San Rafael Quarterly Investment Report for the Quarter Ending September 30, 2025
Accepted report
f. US 101/I-580 Multimodal and Local Access Improvement Project Memorandum of Understanding
Resolution Authorizing the Mayor to Execute a Memorandum of Understanding Between the Transportation Authority of Marin (TAM) and the City of San Rafael for the US 101/I580 Multimodal and Local Access Improvement Project (PW) Adopted Resolution 15476
g. “Shop San Rafael” Proclamation
Proclamation Supporting “Shop San Rafael” (CED)
Received and filed

OTHER AGENDA ITEMS

5. Other Agenda Items
a. Ralph M. Brown Act (Government Code Section 54950, Et. Seq.) Compliance 4 Resolution Responding to a Cease and Desist Demand Dated November 3, 2025 with an Unconditional Promise - Without Admitting Any Violation of the Brown Act - To Cease and Desist Certain Conduct Pursuant to Government Code Section 54650.2(c) City Attorney Robert Epstein presented the Staff Report.

Mayor Kate invited public comment.

Speakers: Ken Dickinson, Gregory Andrew, Citizens Against Secrecy, Molly Blauvelt, Name Withheld, Patricia Lindstadt
Staff responded to questions raised during public comment.

Vice Mayor Bushey moved and Councilmember Kertz seconded to adopt the Resolution with the (spelling) correction responding to a Cease and Desist Demand dated November 3, 2025 with an unconditional promise - without admitting any violation of the Brown Act - to cease and desist certain conduct pursuant to Government Code Section 54650.2(c).

AYES: Councilmembers: Bushey, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Hill
Adopted Resolution 15477

PUBLIC HEARINGS

6. Public Hearings
a. Declaration of Shelter Crisis and Approval of Related Actions and Acquisition of the Property Located at 350 Merrydale Road (APNS 179-041-27 & 179-041-28) for Use as an Interim Shelter and Affordable Housing
City Council of the City of San Rafael Consideration of: (CM) i. Resolution Declaring a Shelter Crisis Pursuant to Government Code Section 8698, Et.

Seq.; California Environmental Quality Act (CEQA) Determination: Not a Project Per CEQA Guidelines 15378(b)(2),(4),(5); Alternatively Exempt Pursuant to CEQA Guidelines 15061(b)(3) [Common Sense]; 15269(c) [Emergency] ii. Urgency Ordinance Adopting Reasonable Local Standards and Procedures for Homeless Shelters Pursuant to Government Code Section 8698; Et. Seq.; CEQA Determination: Not a Project Per Government Code Sections 65660(b), 65662; CEQA Guidelines 15378(b)(2), (4), (5); Alternatively Exempt Pursuant to CEQA Guidelines 15061(b)(3) [Common Sense]; 15269(c) [Emergency]
iii. Uncodified Ordinance Adopting Reasonable Local Standards and Procedures for Homeless Shelters Pursuant to Government Code Section 8698, Et. Seq.; CEQA Determination: Not a Project Per Government Code Sections 65660(b), 65662; CEQA Guidelines 15378(b)(2), (4), (5); Alternatively Exempt Pursuant to CEQA Guidelines 15061(b)(3) [Common Sense]; 15269(c) [Emergency]
iv. Resolution Authorizing the City Manager to Negotiate and Execute a Grant Agreement Between the City and County of Marin in the Amount of $8 Million and Affordable 5 Housing Agreement in a Form to be Approved by the City Attorney to Facilitate the Acquisition of Real Property Located at 350 Merrydale Road (APNS 179-041-27 & 179- 041-28) for Use as an Interim Shelter and Permanent Affordable Housing and to Accept the Full Amount of the Grant and Appropriate $7.0 Million to Cover Costs Related to Acquisition; CEQA Determination: Not A Project Per Government Code Sections 8698.4(a)(4); 65660(b), 65662; Public Resources Code Section 21080(b)(1) [Ministerial Project]; CEQA Guideline 15268(B) [Ministerial Project]; Exempt Pursuant To CEQA Public Resources Code Section 15183 [Consistent With General Plan Policies]; CEQA Guidelines 15269(c) [Emergency]; 15332 [Infill]
v. Resolution Authorizing the City Manager to Negotiate and Execute a Purchase and Sale Agreement in the Amount of $6.7 Million, Plus Associated Costs, to Execute a Certificate Of Acceptance and Other Documents Necessary to Complete the Purchase of the Real Property Located At 350 Merrydale Road and to Execute a Professional Services Agreement with Cornish and Carey Commercial (D/B/A Newmark) in an Amount Not to Exceed $201,000 for Real Estate Brokerage Services Rendered to the City for the City’s Purchase of 350 Merrydale Road (APNS 179-041-27 & 179-041-28); CEQA Determination: Not a Project Per Government Code Sections 8698.4(a)(4); 65660(b), 65662; Public Resources Code Section 21080(b)(1) [Ministerial Project]; CEQA Guideline 15268(b) [Ministerial Project]; Exempt Pursuant To CEQA Public Resources Code Section 15183 [Consistent With General Plan Policies]; CEQA Guidelines 15269(c) [Emergency]; 15332 [Infill]; 15061(b)(3) [Common Sense]; 15378(b)(4) [Fiscal Activity]
City Manager Cristine Alilovich presented the Staff Report along with Police Department’s Mental Health Liaison Lynn Murphy and Assistant City Manager John Stefanski. County of Marin Executive Derek Johnson provided comments.

Staff responded to questions from the City Council.

Mayor Kate invited public comment.

Speakers: Bryn Deamer, Ken Dickinson, Jennifer Wallace, Aida del Valle, Gregory Andrew, Kim, Cary McDonald, Wayne Rayburn, Betty Shea, Janet Shirley, Sandra, Ken Casey, Bernie Samet, Marianne Nannestad, Name Withheld, Michelle Baumert, Jerry, Integrity Electric, David, Tim Park, Dan Lazarus, Tara, Street Chaplaincy, Jason Sarris, Pat Langley, Marin Organizing Committee, Chaplain and Pastor Chitoka Webb, Marguerite Moriarty, Marin Organizing Committee, Ashlyn, Community Action Marin, Zoe Niel, Make It Home Bay Area and formerly with Downtown Streets Team, Karen Strolia, San Rafael Chamber of Commerce, Meredith Parnell, St. Vincent de Paul Society of Marin, Anna Hurtado, Homeward Bound of Marin, Sharna Diemer, Baha’I Faith, Jennifer Kiss, Edward Metz, Mario Ernest Lopez, Marin Community Foundation, Ethan Strull, Dhalma Suarez, Legal Aid of Marin, Luke Barnesmoore, Jenny Lee, Andy Lee, Dalyla, Sara McEvoy, Michael Wolpert, Name Withheld, Frank Mason, Trevor Burgon, Name Withheld, Alex Stricker, Cathy Manovi, Ruth Vosmek, Name Withheld, Judith Allen, Maryellen Mullin Fong, Bryna Holland, St.

Vincent de Paul, Victoria Holdridge, Marin Organizing Committee, Stuart Shepherd, Grace Geraghty, Susan Coleman, Responsible Growth Marin, Gabriela Shea, Eric Bobrow, San Rafael Meadows Neighborhood Association, Fatai, Carter Phelps, Alicia Mayor Kate closed public comment.
6 Mayor Kate called a recess at 10:00 p.m.; Mayor Kate called the meeting back to order at 10:21 p.m.

Staff responded to questions raised during public comment.

City Councilmembers provided comments.

Vice Mayor Bushey moved and Councilmember Kertz seconded to adopt the Resolution Declaring a Shelter Crisis Pursuant to Government Code Section 8698, Et. Seq.; California Environmental Quality Act (CEQA) Determination: Not a Project Per CEQA Guidelines 15378(b)(2),(4),(5); Alternatively Exempt Pursuant to CEQA Guidelines 15061(b)(3) [Common Sense]; 15269(c) [Emergency].

AYES: Councilmembers: Bushey, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Hill
Adopted Resolution 15478
Councilmember Kertz moved and Vice Mayor Bushey seconded to waive further reading, refer to it by title only, and adopt Urgency Ordinance.

AYES: Councilmembers: Bushey, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Hill
The City Clerk read the title of the Ordinance
Urgency Ordinance Adopting Reasonable Local Standards and Procedures for Homeless Shelters Pursuant to Government Code Section 8698; Et. Seq.; CEQA Determination: Not a Project Per Government Code Sections 65660(b), 65662; CEQA Guidelines 15378(b)(2), (4), (5); Alternatively Exempt Pursuant to CEQA Guidelines 15061(b)(3) [Common Sense]; 15269(c) [Emergency]
Waived further reading, referred to it by title only, and adopted Urgency Ordinance 2056 Councilmember Llorens Gulati moved and Councilmember Kertz seconded to introduce the Ordinance, waive further reading and refer to it by title only.

AYES: Councilmembers: Bushey, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Hill
The City Clerk read the title of the Ordinance
Uncodified Ordinance Adopting Reasonable Local Standards and Procedures for Homeless Shelters Pursuant to Government Code Section 8698, Et. Seq.; CEQA Determination: Not a Project Per Government Code Sections 65660(b), 65662; CEQA Guidelines 15378(b)(2), (4), (5); Alternatively Exempt Pursuant to CEQA Guidelines 15061(b)(3) [Common Sense]; 15269(c) [Emergency]
Introduced the Ordinance, waived further reading and referred to it by title only 7 Vice Mayor Bushey moved and Councilmember Kertz seconded to adopt the Resolution Authorizing the City Manager to Negotiate and Execute a Grant Agreement Between the City and County of Marin in the Amount of $8 Million and Affordable Housing Agreement in a Form to be Approved by the City Attorney to Facilitate the Acquisition of Real Property Located at 350 Merrydale Road (APNS 179-041-27 & 179-041-28) for Use as an Interim Shelter and Permanent Affordable Housing and to Accept the Full Amount of the Grant and Appropriate $7.0 Million to Cover Costs Related to Acquisition; CEQA Determination: Not A Project Per Government Code Sections 8698.4(a)(4); 65660(b), 65662; Public Resources Code Section 21080(b)(1) [Ministerial Project]; CEQA Guideline 15268(B) [Ministerial Project]; Exempt Pursuant To CEQA Public Resources Code Section 15183 [Consistent With General Plan Policies]; CEQA Guidelines 15269(c) [Emergency]; 15332 [Infill].

AYES: Councilmembers: Bushey, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Hill
Adopted Resolution 15479
Councilmember Kertz moved and Councilmember Llorens Gulati seconded to adopt the Resolution Authorizing the City Manager to Negotiate and Execute a Purchase and Sale Agreement in the Amount of $6.7 Million, Plus Associated Costs, to Execute a Certificate Of Acceptance and Other Documents Necessary to Complete the Purchase of the Real Property Located At 350 Merrydale Road and to Execute a Professional Services Agreement with Cornish and Carey Commercial (D/B/A Newmark) in an Amount Not to Exceed $201,000 for Real Estate Brokerage Services Rendered to the City for the City’s Purchase of 350 Merrydale Road (APNS 179-041-27 & 179-041-28); CEQA Determination: Not a Project Per Government Code Sections 8698.4(a)(4); 65660(b), 65662; Public Resources Code Section 21080(b)(1) [Ministerial Project]; CEQA Guideline 15268(b) [Ministerial Project]; Exempt Pursuant To CEQA Public Resources Code Section 15183 [Consistent With General Plan Policies]; CEQA Guidelines 15269(c) [Emergency]; 15332 [Infill]; 15061(b)(3) [Common Sense]; 15378(b)(4) [Fiscal Activity].

AYES: Councilmembers: Bushey, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Hill
Adopted Resolution 15480

OPEN TIME FOR PUBLIC EXPRESSION
• Cathy Manovi addressed the City Council regarding dangerous conditions on Merrydale Road.
• Name withheld addressed the City Council regarding new seats in the Council Chambers.

ADJOURNMENT:

Mayor Kate adjourned the meeting at 11:06 p.m.
__________________________
LINDSAY LARA, City Clerk
APPROVED THIS _____DAY OF____________, 2025
_____________________________________
KATE COLIN, Mayor
4929-8163-7239 v2 1
ORDINANCE NO. 2057

AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL

ADOPTING REASONABLE LOCAL STANDARDS AND PROCEDURES FOR HOMELESS SHELTERS PURSUANT TO GOVERNMENT CODE SECTIONS 8698, ET SEQ; CEQA DETERMINATION: NOT A PROJECT PER GOVERNMENT CODE SECTIONS 65660(b), 65662; CEQA GUIDELINE 15378(b)(2), (4), (5); ALTERNATIVELY EXEMPT PURSUANT TO CEQA GUIDELINES 15061(b)(3) [COMMON SENSE]; 15269(c) [EMERGENCY] WHEREAS, the City of San Rafael (City) and Marin County lack both housing supply and affordable housing. The City’s 2023-2031 Housing Element, the Marin County Civil Grand Jury’s 2024-2025 report titled “The Worrisome Future of Marin Housing,” and Rooted in Marin, a 2025 analysis of anti-displacement strategies for Marin County, document these unfortunate realities, as well as the negative consequences of insufficient housing opportunities; and WHEREAS, for instance, the Rooted in Marin report noted that Marin County has the third highest median rental rate in California and the cost of purchasing an average home is more expensive in Marin County than every metropolitan area other than the San Jose Metro Area (Rooted in Marin p.20); and
WHEREAS, as a result, roughly three in five Marin renter households are cost-burdened, meaning they dedicate more than 30 percent of their income on housing (Rooted in Marin p.21); and
WHEREAS, the lack of new housing stock has led to rising Marin County median housing prices, which increased by over $1 million in the eight-year period between 2013 to 2021, from $966,000 to $1.91 million, a 98 percent increase (The Worrisome Future of Marin Housing, p.9); and
WHEREAS, over that same period median household income in Marin County only increased by 45 percent; and
WHEREAS, the high cost of housing in Marin County is largely due to a lack of housing supply, which is the result of a dearth of housing construction in recent decades; and WHEREAS, the adopted San Rafael 2023-2031 Housing Element (Housing Element) states that San Rafael had 1,247 vacant units in 2010 and 1,163 vacant units in 2020.10 As a percentage of total housing stock, the vacancy rate declined from 5.2 percent in 2010 to 4.7 percent in 2020. This is lower than the vacancy rate in Marin County, which was 7.2 percent in 2010 and 6.6 percent in 2020.; and
WHEREAS, the Housing Element found that San Rafael renters are considerably costburdened (spending more than 30 percent of one’s income on housing) with 55 percent of San Rafael renters being cost-burdened and 21 percent of San Rafael’s renter households being severely cost-burdened (spending more than 50 percent of their income on housing); and 4929-8163-7239 v2 2
WHEREAS, the 2024 Marin County Point-in-Time Count identified 1,090 individuals experiencing homelessness countywide, with 788 unsheltered. San Rafael had 326 individuals experiencing homelessness, including 264 unsheltered; and WHEREAS, per Marin County Health and Human Services, the County’s homelessness response system currently supports approximately 235 shelter beds across multiple sites, including individual, family, youth, domestic violence survivor, and temporary emergency response shelters, as well as 108 transitional housing beds. These available beds fall far short of meeting the need identified in the 2024 Count; and
WHEREAS, further highlighting the need for emergency shelter beds, over the last three years, the Ritter Center, which is one of the largest non-profits in Marin County serving the unhoused community, found that only one out of four individuals they referred to shelter were accepted.

WHEREAS, since the implementation of Ordinance 2040 (Camping Ordinance) in October 2024, which coincided with the opening of the City’s Sanctioned Camping Area, the City has actively tracked homelessness-related Calls for Service (CFS) to assess enforcement impacts and public safety outcomes; and
WHEREAS, the data shows that along the Mahon Creek Path, CFS decreased by over 80% between FY 2023–24 and FY 2024–25 (256 to 49), and) and calls along Andersen Drive and Lindaro Street fell by more than 50% (65 to 32); and
WHEREAS, these reductions demonstrate the effectiveness of targeted outreach, proactive site management, and the City’s engagement with service providers; and WHEREAS, the remaining CFS—primarily medical aid, welfare checks, and other safety-related responses—underscore that individuals who remain unsheltered continue to experience ongoing risks to their health and safety. For example, in the first quarter of FY 25-26 (July-September 2025) the SAFE Team responded to 794 calls for service, with 69% of those calls responding to assist an individual experiencing homelessness; and
WHEREAS, activities carried out at unauthorized encampments may cause additional sanitation, health and safety impacts to the surrounding community and natural environment; and
WHEREAS, the complexity and magnitude of the homelessness crisis and the limited supply of affordable permanent housing in the city of San Rafael demonstrate that there is a significant and immediate need for interim housing in the city, including emergency shelter and low barrier navigation center, to protect the life, health, and safety of people experiencing homelessness; and
WHEREAS, strict compliance with the provisions of state and local regulatory statutes, regulations, and ordinances prescribing standards of housing, health, safety, and environmental impact assessment may prevent, hinder, or delay emergency housing measures that could be expedited through a Declaration of Shelter Crisis; and
4929-8163-7239 v2 3
WHEREAS, pursuant to California Government Code Sections 8698 through 8698.4 (“Shelter Crisis Act”), local jurisdictions may declare a shelter crisis when a significant number of residents are without shelter and the situation presents a threat to their health and safety; and WHEREAS, the Shelter Crisis Act authorizes jurisdictions to adopt reasonable local standards to expedite shelter development, including both emergency shelters and low barrier navigation centers, while ensuring protection of health, safety, and sanitation; and WHEREAS, on November 17, 2025, the San Rafael City Council adopted Resolution No. 15478 declaring a shelter crisis, finding that the number of individuals in San Rafael without shelter constitutes a threat to their health and safety, and directing staff to return with an ordinance establishing reasonable local standards and procedures consistent with Government Code Section 8698; and
WHEREAS, the City Council finds that immediate action is necessary to protect life, health, and safety by enabling the City to promptly implement homeless shelters that meet reasonable health and safety standards; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:

DIVISION 1. FINDINGS

1. Based upon the duly noticed public hearing at the City Council meeting on November 17, 2025, to consider to consider adoption of this Ordinance, the City Council accepted all oral and written public comment and the written staff report, the City Council finds that the above recitals are hereby declared to be true and correct and are incorporated into this ordinance as findings of the City Council.

2. The facts contained in the above recitals, the Shelter Crisis that has been declared in the City of San Rafael pursuant to Resolution No. 15478 adopted on November 17, 2025, and Ordinance No. 2056 conclusively demonstrate the urgent need to adopt this ordinance for the immediate preservation of the public peace, health and safety.

3. Strict compliance with local building approval procedures and/or state or local housing, health, habitability, planning and zoning, or safety standards, procedures, and laws in existence at the time of adoption of this ordinance will prevent, hinder, or delay the City’s efforts to mitigate the effects of its declared Shelter Crisis through:
a. expense and time necessary to obtain the required permits and design suitable structures;
b. restricted development patterns under existing zoning code requirements; 4929-8163-7239 v2 4
c. delay and staff resources necessary to satisfy the City’s Site Plan and Architectural Review process; and
d. limits on the locations where the City can place homeless shelters.

DIVISION 2. ADOPTION OF LOCAL STANDARDS AND PROCEDURES DURING SHELTER CRISIS.

A. Purpose and Scope.

The purpose of this Division is to establish reasonable local standards and procedures for the design, site development, and operation of homeless shelters, as defined in this Division located on City-owned or leased property within the City of San Rafael during the period in which a shelter crisis is declared under California Government Code Sections 8698 through 8698.4 and Resolution No. 15478, adopted by the City Council on November 17, 2025. These standards provide flexibility for the City to act quickly to protect the health and safety of unsheltered individuals while maintaining essential requirements for public health, sanitation, and safety.

B. Definitions.
“Homeless shelter” means overnight sleeping accommodations, the primary purpose of which is to provide temporary shelter for the homeless. A homeless shelter may include supportive and self-sufficiency development services..

C. Establishment of Homeless shelters on City-Owned or Leased Property

1. Notwithstanding any provisions of this Division to the contrary, during any period for which the City Council has declared a shelter crisis within the meaning of Government Code Sections 8698 et seq., a homeless shelter (as defined in this section) may be constructed, established and operated on property owned or leased by the City of San Rafael as a use by right.

2. Pursuant to Government Code Section 8698.4, the City Manager or her designee is authorized to suspend any housing, health, habitability, planning and zoning, or safety standards, procedures, or laws as applied to a City homeless shelter as defined in this Division, except all such projects must comply with the 2019 California Residential Code Appendix X, and California Building Code Appendix O, and any future standards adopted by the Department of Housing and Community Development related to emergency housing or emergency housing facilities. The City Manager, or her designee is authorized to take any other actions consistent with and/or necessary for the implementation of this ordinance.

3. Homeless shelters constructed or allowed under this section shall not be subject to the Special Occupancy Parks Act (Part 2.3 (commencing with Section 18860) of Division 13 of the Health and Safety Code), the Mobilehome Parks Act (Part 2.1 (commencing with Section 18200) of Division 13 of the Health and Safety Code), the Mobilehome Residency Law (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 of Division 2 of the Civil Code), or the Recreational Vehicle Park Occupancy Law (Chapter

2.6 (commencing with Section 799.20) of Title 2 of Part 2 of Division 2 of the Civil Code), 4929-8163-7239 v2 5
except that disposition of any vehicle or its contents abandoned by its owner shall be performed pursuant to Chapter 5 (commencing with Section 1980) of Title 5 of Part 4 of Division 3 of the Civil Code.

DIVISION 3. FILING WITH THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT.

Consistent with Government Code Section 8698.4(a)(2)(A)(i), the City Clerk shall file a copy of this Ordinance with the California Department of Housing and Community Development (HCD) within ten business days after its adoption.

DIVISION 4. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).

The City Council finds that the adoption of this Ordinance is not a project within the meaning of the California Environmental Quality Act (CEQA), as defined in Public Resources Code Section 21065 and Section 15378(b)(2), (4), and (5) of the CEQA Guidelines.

This Ordinance establishes administrative procedures and standards for the implementation of an existing state program authorized under Government Code Sections 8698 through 8698.4, which does not directly authorize or approve any specific development or physical change in the environment.

Further, the adoption of this Ordinance is exempt from CEQA under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the adoption of this Ordinance, or its implementation, will have a significant effect on the environment.

Finally, adoption of this Ordinance is exempt pursuant to CEQA Guideline 15269(c) as necessary to mitigate an emergency situation caused by the affordable housing shortage.

DIVISION 5. SEVERABILITY.

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

DIVISION 6. EFFECTIVE DATE; PUBLICATION.

A summary of this Ordinance shall be published and a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to the Council meeting at which it is adopted.

This Ordinance shall be in full force and effect thirty (30) days after its final passage, and the summary of this Ordinance shall be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in the Marin 4929-8163-7239 v2 6
Independent Journal, a newspaper of general circulation published and circulated in the City of San Rafael, Marin County, State of California.

Within fifteen (15) days after adoption, the City Clerk shall also post in the office of the City Clerk a certified copy of the full text of this Ordinance, along with the names of those Councilmembers voting for or against the Ordinance.
______________________
KATE COLIN, Mayor
ATTEST:
______________________
LINDSAY LARA, City Clerk
The foregoing Ordinance No. ____ was adopted at a Regular Meeting of the City Council of the City of San Rafael, held on the ___ day of ___ 20__ by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
______________________
LINDSAY LARA, City Clerk
SUMMARY OF ORDINANCE NO. 2057

ESTABLISHMENT OF REASONABLE LOCAL STANDARDS FOR

HOMELESS SHELTERS
This Summary concerns a proposed Ordinance of the City Council of the City of San Rafael, designated as Ordinance No. 2057 which established reasonable local standards and procedures for the design, development, and operation of homeless shelters in the City of San Rafael during a shelter crisis. Ordinance No. 2057 is scheduled for adoption by the San Rafael City Council at its regular meeting of December 1, 2025. The City Clerk has been directed to publish this Summary pursuant to City Charter and California Government Code section 36933(c)(1).

SUMMARY OF AMENDMENT TO MUNICIPAL CODE
This Ordinance would suspend any housing, health, habitability, zoning, or safety standards, procedures, or laws as applied to a City homeless shelter during a shelter crisis, except all such projects must comply with the 2019 California Residential Code Appendix X and California Building Code Appendix O.

For a complete copy of the text of the Ordinance amending the Municipal Code, please contact the City Clerk’s Office at [email protected] or by phone at (415) 485-3066. Copies of the Ordinance containing this Municipal Code amendment are also available for public review at the San Rafael City Clerk’s office, 1400 Fifth Avenue, 2nd Floor, Room 209, Monday through Thursday from 9:00 a.m. to 4:00 p.m., and on Fridays by appointment only.
/s/______________________
LINDSAY LARA, City Clerk
San Rafael City Clerk
Dated: November 21, 2025
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 4.c
Meeting Date: December 1, 2025

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) BUSINESS ASSESSMENT

ANNUAL RENEWAL
SUBJECT: RESOLUTION APPROVING THE DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT, DECLARING THE CITY COUNCIL’S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR CALENDAR YEAR 2026 FOR

THE DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT DISTRICT, AND

SETTING A PUBLIC HEARING
RECOMMENDATION:

Staff recommends that the City Council adopt the resolution approving the San Rafael Business District Annual Report, declaring the City Council’s intention to levy an annual assessment for calendar year 2026 for the Downtown San Rafael Business Improvement District at a public hearing to be set on December 15, 2025, at 6:00 p.m.

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. The year 2025 marks the second 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 2025, as highlighted in its Annual Report (Attachment 2), including two annual events reaching their second and fourth years of celebration, 35th Annual May Madness, the expansion of its two volunteer-led beautification programs (mulching and graffiti removal), and the featuring of its Annual Clean and Green Day on KTVU.

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 2025 Annual Report and the BID's 2026 Budget & 2025 Financial Summary (Exhibit C) and found that 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 2026.

3. The budget outlines the estimated cost of improvement and activities outlined for the calendar year 2026.

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.

For calendar year 2026, the annual assessment levy totaling an estimated $65,000 is proposed to be assessed at the same rate as prior years. See Exhibit B to the Annual Report for the 2026 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 – December 1, 2025
Adopt a 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 calendar year 2026. The resolution sets a public hearing date of December 15th, 2025.

Meeting #2 – December 15, 2025
Public Hearing on Annual Assessment: The City Council will have the opportunity to receive additional public input on the annual BID assessment and to confirm the levy of an assessment for the upcoming calendar year 2026.

COMMUNITY OUTREACH:

The BID will notify its members of the annual renewal process through its member communications, including the BID e-newsletter, notifications on the BID website, and through agenda items at the monthly BID Board meeting. The City will also provide notice of the December 15, 2025, public hearing of the annual assessment in the Marin Independent Journal.

FISCAL IMPACT:

The proposed BID assessment would generate an estimated $65,000 for 2026. Assessment revenues collected by the City are passed on to the Chamber of Commerce, which administers the funding provided to the BID by the annual assessment through a separate agreement. All administrative costs associated with collecting the assessment are absorbed by the City’s 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 2025 Annual Report, including:

A. Exhibit A: BID Map
B. Exhibit B: 2026 BID Assessment Formula
C. Exhibit C: BID 2026 Budget & 2025 Financial Summary
RESOLUTION NO.

RESOLUTION OF THE SAN RAFAEL CITY COUNCIL APPROVING THE DOWNTOWN SAN

RAFAEL BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT, DECLARING THE CITY COUNCIL’S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR CALENDAR YEAR 2026

FOR THE DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT DISTRICT, AND SETTING

A PUBLIC HEARING
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 2025 Annual Report” required by San Rafael Municipal Code Section 10.09.080; NOW THEREFORE BE IT RESOLVED by the City Council of the City of San Rafael as follows:

1. The BID 2025 Annual Report is hereby received and approved.

2. There are no proposed changes to the boundaries of the parking and business, and improvement area.

3. The City Council intends to levy and collect an annual benefit assessment for calendar year 2026 on businesses in the Downtown San Rafael Business Improvement District.

4. The proposed assessments are to pay for the improvements as set forth in San Rafael Municipal Code Section 10.09.060, and no changes are proposed.

5. The proposed assessments are to be levied in the Downtown San Rafael Business Improvement District, which is in the area described by San Rafael Municipal Code Section

10.09.040.

6. The BID 2025 Annual Report, which is on file with the City Clerk, includes a detailed description of the improvements and activities to be provided for that fiscal year, the boundaries of the area and the benefit zones within the area, and the proposed assessments to be levied upon the businesses within the area for that fiscal year.

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

8. A public hearing to consider the levy of the BID assessment shall be held before the City Council on December 15, 2025 at 6:00 p.m. in the Council Chambers, 1400 Fifth Avenue, San Rafael, California or by teleconference by visiting
https://www.cityofsanrafael.org/departments/public-meetings/ for the call-in phone number and meeting ID listed on the agenda (or using the 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.

9. A protest against the assessment of the BID, or any aspect of the assessment, may be made in writing or orally at the public hearing. To be counted as a part of a majority protest against the assessment of the BID, a protest must be in writing and from a business in the BID. A written protest may be withdrawn from the record at any time before the conclusion of the public hearing.

Each written protest shall contain a written description of the business in which the person signing the protest is interested, sufficient to identify the business, and its address. If the person signing the protest is not shown on the official records of the City of San Rafael as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the business. Any written protest of the regularity of the proceedings shall be in writing and clearly state the irregularity or defect to which objection is made.

10. If at the conclusion of the public hearing on December 15, 2025 there is a record of written protests by business owners within the BID who will pay fifty percent (50%) or more of the total assessments of the entire BID, no further proceedings to levy the proposed assessment shall occur for a period of at least one year from the date of the finding of the majority written protest by the City Council. If the majority written protest is against the furnishing of a specified type or types of improvement or activity within the area, those types of improvements or activities shall be eliminated.

11. 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.

12. 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 December 1, 2025, by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
___________________
Lindsay Lara, City Clerk
2025
ANNUAL
REPORT
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]
Downtown San Rafael Business
Improvement District & 2026 PLAN

THE BID MISSION IN ACTION
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]
Dear fellow BID Members,
I would like to thank all
of the BID members for
their continued support.

You are the reason why we continuously
look for ways to bring more foot traffic
downtown. Why we look for new ways to
beautify Downtown. Why we look for ways
to keep Downtown businesses and visitors
safe. We are committed to you and the
vibrancy of Downtown San Rafael. 2025
has been a year of growth. We have had
growth in our BID Memberships, growth in
our event participation and revenue, we
hope this results in growth walking into
your business. 2025 has also been a year
of change. We have started the ball rolling
on exploring the opportunity to become a
Community Based District(CBID). This
could allow us to do more when it comes
to our main pillars of Beautification,
Cleanliness, Safety and Events for
Downtown. What is not changing is our
commitment to you and Downtown. We
will share information with you as we get
them as we are all in this together.

Respectfully, Terrance Thornton
President, Business Improvement District
Owner, San Rafael Marial Arts

LETTER FROM

THE PRESIDENT
ADVISORY BOARD & STAFF 2025-26
The Downtown San Rafael Business Improvement District (BID) began as 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.

Join our team &
become a board
member!
Karen Strolia
President & CEO, San
Rafael Chamber of
Commerce
BID PURPOSE & HISTORY:

BID PROGRAM OVERVIEW 2025
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]
IN 2025, THE BID MANAGED 25 DIFFERENT MARKETING

PROGRAMS, PROJECTS, AND EVENTS
The Downtown San Rafael Business Improvement District manages 25 programs and projects designed to promote downtown businesses, foster community, and help beautify. These initiatives are organized into seven categories: Promotion & Marketing, Beautification, Business Engagement, Arts, Fundraising Events, Community & Art Events, and Holiday Promotions.

Below is the program overview. The rest of this report will provide details, images, and statistics for each program.

1. Promotion & Marketing:
• Social Media Programming
• Weekly IJ Ads & Promotions
• Downtown Business Event Calendar
• 3rd Annual Fe-BREW-ary
• Juneteenth Promo
• Website Management

2. Beautification:
• Intersection Mulching Project
• Graffiti Removal Funding
• Clean & Green Day on Earth Day

3. Business Engagement:
• Mixers (Baseball, Fall & Holiday)
• Monthly Newsletters

4. Arts Programming (via DSRAD):
• Art Programming Support
• Utility Box Art Program (coming soon)

5. Fundraising Events:
• 35th Annual May Madness Car Show
• 2nd Annual Dancing Under the Lights
• 5th Annual Hops & Vines Stroll

6. Community & Art Events:
• 2nd Annual Lunar New Year Art Walk
• 2nd Annual Pride Art Walk
• Trick or Treat on Fourth
• 4th Annual Elf Hunt
• 4th Annual Menorah Lighting

7. Holiday Promotions:
• Holiday Window Contest
• Shop Small Saturday
• Downtown San Rafael Holiday Gift Guide
• West End Holiday Ads
Dear Friends of Downtown San Rafael,
As a 3rd-generation Marinite, passionate supporter of the arts, and San Rafael resident, I am honored to continue to serve as Director of our Business Improvement District.

Wrapping up my fourth year, I’m proud to finally see this work mature and settle across seven key focus areas: Promotion & Marketing, Beautification, Business Engagement, Arts, Fundraising Events, Community & Art Events, and Holiday Promotions.

In 2025, the BID had roughly $60k in assessments and allocated about $60k for core operations like payroll, insurance, and technology. So, to make our marketing programs possible, I remained committed to producing events and promotions that either raise funds or pay for themselves to ensure that our downtown enjoys a full calendar of activity and promotion year-round.

This year, I saw a few of our “first annuals” grow into second and fourth annual traditions. Our two volunteer-led beautification programs (mulching and graffiti removal) helped keep downtown looking clean. Our Annual Clean & Green Day on Earth Day was even featured live on KTVU with an interview by our BID Secretary! Looking ahead to 2026, my priorities are to strengthen our existing programs and expand fundraising to grow our beautification budget.

DSRAD’s public art projects will come to life in June, making Downtown San Rafael look more like the Arts hub it is celebrated as. Our social media contractor will continue to shine a spotlight on downtown businesses. Our website will stay up to date to keep the community informed with its event calendar and news section.

A giant thank you to Karen Strolia, CEO of the San Rafael Chamber, for a fabulous, fun, and productive year of partnership. Also, to the City of San Rafael staff for their excellent support this past year. And last but not least, to our President Terrance and the BID Advisory Board for their dedication, volunteerism, and passion for our awesome Downtown!
All the Best,
Sarah Tipple, Director
BID PROMOTION/MARKETING 2025
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]
Promotion & Marketing:
• Social Media Programming – Our professional
contractor highlights our downtown businesses to
thousands of followers, ensuring Downtown San
Rafael is top-of-mind for shopping, dining, and
entertainment. With over 8k followers on both, IG
increased by 450 and 200 on Facebook this past year.
• Weekly IJ Ads & Promotions – We invest in recurring
ads with the Marin IJ Entertainment weekly email blast
to spotlight downtown as a destination, helping
businesses gain visibility to our community.
• Downtown Business Event Calendar – An online hub
where businesses can post events, from art openings
to live music. This tool centralizes promotions.
• Fe-BREW-ary – In partnership with SMART, this winter
promotion was designed to spotlight local breweries,
taprooms, and restaurants, encouraging customers to
“sip and stroll” downtown during the slower season.
• Juneteenth Promo – Through a special happenings
page and collaborations with local organizations, we
honor Juneteenth with visibility for events and history. • Website Management – Since 2023, the BID has
managed DowntownSanRafael.org, saving $1,440
annually. The site provides clear, timely information on promotions, events, news, shopping, dining, and more.
• Intersection Mulching Project – Volunteers, led
by BID Board members, refresh downtown
intersections with mulch three times a year. Plans
for 2026 include adding greenery and launching
an “Adopt an Intersection” program.
• Graffiti Removal – The BID invests $2,000
annually in supplies for longtime volunteer Tom
Harrison, whose efforts keep 4th Street clean,
welcoming, and graffiti-free.
• Clean & Green Day – Each Earth Day, volunteers,
businesses, and community groups join forces to
mulch, pick up litter, and remove graffiti to help
keep downtown clean. In 2025, our efforts were
even featured live on TV!
Beautification:

Business Engagement:
• Mixers (Pacifics Game, Fall, & Holiday) – We host 3
seasonal gatherings to connect people, share
updates, and strengthen business ties.
• Monthly Newsletters – Keep members informed on
promotions, city updates, grants, events, and news.

Facebook Annual Insight:

Instagram 90 days:

BID ARTS PROGRAMMING 2025
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]
BID SUPPORT FOR OUR DOWNTOWN SAN RAFAEL ARTS DISTRICT’S (DSRAD) PROMOTIONS AND PROJECTS
• Art Programming Support - The BID Director
serves on the DSRAD Steering Committee, attending
monthly meetings to ensure alignment between BID
goals and arts initiatives, while providing leadership
in planning and decision-making.
• Website Management – The BID helps manage and
promote the DSRAD website, ensuring the business
community has access to updated information about
projects, events, and artist opportunities.
• Public Art Project Support – The BID supports the
DSRAD committee to help advance large-scale
public art projects that will bring vibrancy and
visibility to our Downtown. 5 pieces will be
completed June 2026 - 3 murals and 2 sculptures.
• Helped launch a $4k Matching Grant Art
Program – The BID created and supported the City
to fullfill a matching grant program that supports
downtown businesses in adding art and
beautification projects to their buildings. 3 new
murals will be completed by June 2026.
• Utility Box Art Program (Coming Soon) – The BID
hopes to finalize the details to create a permanent
art program that will transform utility boxes across
downtown into vibrant works of public art, adding
to the art in our Downtown.
• Ongoing Partnerships – DSRAD has supported a
wide range of art projects and events over the past
few years, including PorchFest, Dancing Under the
Lights, Pride Art Walk, Lunar New Year
celebrations, chalk murals, film festivals, and
murals with schools and community partners. (See
full programming portfolio at dsrad.org/programs • BID Support with Strategic Planning & Committee Growth – DSRAD is trying to shape a long-term
vision that aligns arts initiatives with downtown
vitality and placemaking. We also created an
application process to bring on new members.
• Project & Grant Approval – A process was created
this year for new grant proposals to be reviewed
against mission, impact, and funding criteria, then
advanced through the Steering Committee, Public
Art Review Board, and City Council as needed.
• What is DSRAD? The Downtown San Rafael Arts
District (DSRAD) is one of only 14 certified Cultural
Arts Districts in California, recognized by the
California Arts Council (CAC). As an active
stakeholder, the BID advises that these funds go
directly into downtown businesses and into
downtown projects and events that beautify and
revitalize.

BID FUNDAISING EVENTS 2025
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]

SIGNATURE FUNDRAISING EVENTS
5th Annual Hops & Vines Stroll (Sept 27) – 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 = $7,271.42
• Total Income = $10,855.00
• Net Profit for BID = $3,583.58
2nd Annual Dancing Under The Lights (Aug 1)
– Originally a pivot from Dining Under the
Lights, this event is now an annual celebration
in Downtown San Rafael that brings together
music, dancing, art, and local businesses for an
evening of community connection. The first
annual event broke even, and the 2nd annual
turned a profit. This profit will help fund our
promotions and beautification programming.
• Total Expenses = $20,357.27
• Total Income = $22,372.98
• Net Profit for BID = $2,015.71
35th Annual May Madness (May 10) – 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 $25k to be split
between the BID, other local non-profits, and
Downtown beautification projects.
• Total Expenses = $17,047.04
• Total Income = $42,530.15
• Event Net Profit = $25,483.12
• Net Profit for BID = $12,741.56
The BID produces three major fundraising events each year - May Madness Car Show, Dancing Under the Lights, and the Hops & Vines Stroll. These events not only bring thousands of people downtown to celebrate and support local businesses, but they also generate critical funds. With this revenue, the BID covers the cost of our social media contractor, supports graffiti removal, invests in advertising, and funds other promotions that keep downtown thriving.

DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]

WE BRING FEET TO THE STREET, SUPPORT THE ARTS, CELEBRATE DIVERSITY, & PROMOTE THE HOLIDAYS!
BID ECONOMIC DRIVERS 2025
• 2ND Annual Lunar New Year Art Walk – Downtown
storefronts feature vibrant art installations and
decorations celebrating Lunar New Year, showcasing
local artists while honoring cultural traditions.
• 2nd Annual Pride Art Walk – In partnership with
DSRAD, artists, and businesses, downtown windows
transform with Pride-inspired art each June,
celebrating inclusivity and community pride.
• 37th Annual Trick or Treat on Fourth – For decades,
the BID hosts this family-friendly Halloween tradition
where merchants hand out candy and downtown
comes alive with costumes, decorations, and
community spirit.
• 4th Annual Elf Hunt – Once a new idea, now a holiday
tradition! Families search for elves in downtown shops, bringing fun to kids and foot traffic to businesses.
• 4th Annual Menorah Lighting – A growing downtown
tradition that brings the community together each
December with music, treats, and the celebration of
Hanukkah.

Celebrating Diversity, Art, & Scavenger Hunts:

Holiday Promotions:
• Annual Holiday Window Contest – Downtown
businesses deck their storefronts in creative holiday
displays, boosting festive spirit and encouraging
shoppers to explore local stores.
• Shop Small Saturday – Part of the national
movement, this campaign highlights the importance
of supporting small businesses during the holiday
season, driving customers into local shops and
restaurants.
• Downtown San Rafael Holiday Gift Guide – A
curated guide showcasing unique gift ideas from
downtown merchants, making it easy for shoppers
to keep their holiday spending local.
• West End Holiday Ads – Special advertising
campaigns spotlight West End businesses, ensuring
this vibrant part of Fourth Street shines during the
holiday season.

BID COMMUNITY EVENT PROMO 2025
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]

THE BID SUPPORTED & PROMOTED PARTNER EVENTS
In addition to producing our own events, the BID also helps promote large community events organized by partner groups on our Downtown Events page on our website. These include major annual traditions and events with street closures or bring a large amount of foot traffic to Downtown Business, such as the Mill Valley Film Festival, Dia de los Muertos, the Holiday of Lights & Winter Wonderland, the San Rafael Lighted Boat Parade, Youth in Arts C Street Celebration, PorchFest, the West End Block Party, and many others. While the BID doesn’t produce these events, we promote them to alert the community and highlight the increased traffic they bring to downtown businesses.

LOOKING AHEAD TO 2026
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]

FUTURE MARKETING, PROGRAMMING, EVENTS, & OPERATIONS
The Downtown San Rafael Business Improvement District is proud to have managed 25 programs across seven categories in 2025, each designed to promote our businesses, gather the community, and help beautify our city. From marketing initiatives and business engagement to holiday promotions, fundraisers, and cultural celebrations, these programs helped create an active downtown in 2025.

As we look toward 2026, our focus is on continuing and strengthening these programs while welcoming new opportunities. Most exciting is the arrival of the unveiling of the major public art projects in June 2026, made possible through our partnership and funding from the Downtown San Rafael Arts District.

These installations will help create an artistic and lasting vibe for our Downtown.

Our 2026 Focus:
• Strengthening and sustaining our 25 promotional programs (see page 3). • Expanding public art installation support, with projects being unveiled in June 2026. • Growing beautification efforts, including mulching, graffiti removal, and intersection beautification. • Plaza improvements, to potentially include furniture upgrades, lighting, etc. • Increasing fundraising to support promotional and beautification programs. • Continuing to promote downtown businesses through marketing, social media, and advertising. • Building community through events, scavenger hunts, and holiday traditions. • Connect potential new businesses with the City resources to fill vacancies. • Work with the City to ensure there is a power washing schedule to keep sidewalks clean.

The BID is excited to make 2026 another year of growth, creativity, and community in Downtown San Rafael!

BID ADVISORY REPORT
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]

BID BOUNDARY MAP & FEE STRUCTURE
585 Businesses in Downtown San Rafael
– as of 10.2025 report from City Licensing Dept
2025 and 2026 BID Assessment Formula:

BID ADVISORY REPORT
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]
BUDGET
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 4.d
Meeting Date: December 1, 2025

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community & Economic Development
Prepared by: Margaret Kavanaugh-Lynch
Planning Manager
City Manager Approval: ______________
TOPIC: FUNDING AGREEMENTS TO PREPARE THE NORTHGATE AND SOUTHEAST SAN

RAFAEL SPECIFIC PLANS
SUBJECT: RESOLUTIONS AUTHORIZING THE CITY MANAGER TO ENTER INTO:

1. SUPPLEMENT NO. 3 TO THE MASTER FUNDING AGREEMENT BETWEEN THE METROPOLITAN TRANSPORTATION COMMISSION (“MTC”) AND THE CITY OF SAN

RAFAEL TO FUND THE PREPARATION OF THE NORTHGATE SPECIFIC PLAN AND AUTHORIZING SUPPLEMENTAL BUDGET APPROPRIATIONS TOTALING $797,000 IN FISCAL YEAR (FY) 2025-26; AND

2. SUPPLEMENT NO. 4 TO THE MASTER FUNDING AGREEMENT BETWEEN THE METROPOLITAN TRANSPORTATION COMMISSION (“MTC”) AND THE CITY OF SAN

RAFAEL TO FUND THE PREPARATION OF THE SOUTHEAST SAN RAFAEL SPECIFIC

PLAN AND AUTHORIZING SUPPLEMENTAL BUDGET APPROPRIATIONS TOTALING $797,000 IN FISCAL YEAR (FY) 2025-26
RECOMMENDATION:

Staff recommends that the City Council adopt resolutions authorizing the City Manager to enter into two Supplemental Agreements (“Supplement” or “Agreement”) between the Metropolitan Transportation Commission (“MTC”) and City of San Rafael to prepare the Northgate Specific Plan and San Rafael Specific Plan and authorize supplemental budget appropriations in Fiscal Year (FY) 2025-2026 totaling $797,000 for each agreement.

BACKGROUND:

In January 2022, the Metropolitan Transportation Commission (MTC) released the third round of One Bay Area Grant (OBAG3) funds. In this round of funds, the Transportation Authority of Marin (TAM) was responsible for evaluating projects, establishing initial project prioritization based on a list of criteria, and submitting project nominations for consideration by MTC.

On October 17, 2022, the City Council passed Resolution No. 15144 to authorize local support for the filing of applications for funding with the MTC and to provide assurance to complete both the Canal/Southeast Area Priority Development Area (PDA) Study Grant and the Northgate Area PDA Study.

This action was in keeping with the vision included in General Plan 2040, which included these documents in the future “Family of Plans.” PDAs are defined by the MTC as “locally and voluntarily SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
identified locations within existing communities that present infill development opportunities, and are easily accessible to transit, jobs, shopping, and services”. Specific Plans serve as standalone planning documents, replacing the General Plan and the citywide zoning ordinance for the Specific Plan area. By law, a Specific Plan is required to include:

1. land use regulations and development standards;

2. a program of implementing measures;

3. planned and needed public works projects to serve the Specific Plan area (essentially a capital improvement program); and

4. financing measures necessary to implement the Plan and its recommendations.

While there have been some delays related to COVID, staff turnover, and other challenges, on October 21, 2025, City staff received final approval for the funding to prepare the Northgate and Southeast San Rafael Specific Plans.

As part of the City’s recently adopted FY 2025-2028 Strategic Plan, the City Council has identified implementation of these specific plans as Citywide Priorities. Specifically, in support of City Council’s Goal A.3 to “enhance neighborhoods to be the most resilient, diverse, and vibrant places to live, work, and visit,” the City Council adopted the following objectives:
• A.3.4 Develop the North San Rafael Priority Development Area Plan. • A.3.5 Develop an East San Rafael Specific Plan using the City’s inclusive resident engagement philosophy; collaborate with the community and Canal Alliance to ensure alignment with their community vision plan (Nuestro Canal, Nuestro Futuro).

ANALYSIS:

Entering into supplemental agreements with the MTC will unlock up to $1,594,000 in funding for the City to prepare the Northgate and Southeast San Rafael Specific Plans. This funding is critical as it will cover the costs of environmental and land use planning consultants needed to prepare these Specific Plans.

The details of each Plan are described in Annex I of Exhibit 1 contained in each resolution (Attachments 2 and 4 respectively), entitled “Project Description and Scope of Work”. Finally, the development of the Northgate and Southeast San Rafael Specific Plans will support the City Council’s goal of enhancing neighborhoods by advancing two key objectives in the City’s FY 2025-2028 Strategic Plan.

In terms of timing, the City must complete both specific plans by June 30, 2028, to receive funding from the MTC. Each of these plans is foundational to other planning efforts in their respective areas of the City. If they are not completed on time, they may delay the completion of other planning efforts and future grant opportunities.

FISCAL IMPACT:

The City is currently positioned to receive a total of $1,594,000 in grant funding from MTC to carry out two Specific Plans. A FY2025-26 supplemental budget appropriation is requested to cover the costs associated with creating these specific plans, which will be supported by the MTC One Bay Area Grant 3 Program. The supplemental budget appropriation of $1,594,000 would be appropriated within the City’s Development Services Fund (207), with funding to be encumbered through the term of the agreements.

Payments under these agreements shall be subject to the availability of federal funds to MTC. If federal funding is delayed, terminated, or reduced, the MTC shall promptly notify the City of San Rafael in writing.

If federal funding is delayed, the MTC may extend the time to make payment to the City of San Rafael upon prompt written notification of such delay. However, the City of San Rafael shall not suspend or SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
terminate performance due to delayed payment if such delay is the result of a corresponding delay in the MTC’s receipt of federal funds. Upon the MTC’s receipt of federal funds, the MTC will proceed with payment in accordance with the terms of the Supplement.

The MTC may terminate this Supplement immediately by written notice if federal funding is terminated or materially reduced. The City of San Rafael shall be entitled to payment for services satisfactorily rendered and obligations properly incurred up to the date of written notice of termination; however, by entering into this agreement, the City of San Rafael cannot require payment from the MTC if the MTC cannot or does not pay for services as a result of the unavailability of funds.

OPTIONS:

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

1. Authorize the City Manager to enter into the agreements.

3. Direct staff to return with more information.

4. Take no action.

RECOMMENDED ACTION:

ATTACHMENTS:

1. Resolution Authorizing the City Manager to enter into Supplement No. 3 to the Master Funding Agreement between the Metropolitan Transportation Commission (“MTC”) and City of San Rafael to fund the preparation of the Northgate Specific Plan

2. Exhibit A, Supplement No. 3 to the Master Funding Agreement between MTC and City of San Rafael to fund the preparation of the Northgate Specific Plan

3. Resolution Authorizing the City Manager to enter into Supplement No. 4 to the Master Funding Agreement between the Metropolitan Transportation Commission (“MTC”) and City of San Rafael to fund the preparation of the Southeast San Rafael Specific Plan

4. Exhibit A, Supplement No. 4 to the Master Funding Agreement between MTC and City of San Rafael to fund the preparation of the Southeast San Rafael Specific Plan

Page 1 of 1 ends

RESOLUTION NO.

RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO SUPPLEMENT NO. 3 TO

THE MASTER FUNDING AGREEMENT BETWEEN THE METROPOLITAN TRANSPORTATION COMMISSION (“MTC”) AND THE CITY OF SAN RAFAEL TO FUND THE PREPARATION OF THE

NORTHGATE SPECIFIC PLAN AND AUTHORIZING SUPPLEMENTAL BUDGET APPROPRIATIONS TOTALING $797,000 IN FISCAL YEAR (FY) 2025-26 WHEREAS, in January 2022, MTC released its third round of One Bay Area Grant funds (OBAG3); and
WHEREAS, the Transportation Authority of Marin (TAM) was responsible for evaluating OBAG3 projects, establishing initial project prioritization based on a list of criteria, and submitting project nominations for consideration by MTC; and
WHEREAS, on October 17, 2022, the City Council passed Resolution No. 15144 of local support authorizing the filing of applications for funding with the MTC and stating assurance to complete the Northgate Area Priority Development Area (PDA) Study, also known as the Northgate Specific Plan; and
WHEREAS, on October 21, 2025, City of San Rafael (City) staff received final approval from the MTC for the funding to prepare the Northgate Specific Plan; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael finds the foregoing recitals are true and correct, and authorizes the City Manager or their designee to enter into Supplement No. 3 to the Master Funding Agreement between the Metropolitan Transportation Commission (“MTC”) and the City of San Rafael to fund the preparation of the Northgate Specific Plan based on Exhibit 1 and
FURTHER RESOLVED, that the City Council authorizes supplemental budget appropriations to reimburse an amount not to exceed seven hundred ninety-seven thousand dollars ($797,000) within the Development Services Fund (207) to support this agreement.

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 special meeting of the City Council of said City held on Monday, the 1st day of December 2025, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
_______________________
LINDSAY LARA, City Clerk
Exhibit A
SUPPLEMENT NO. 3
To MASTER FUNDING AGREEMENT
Between METROPOLITAN TRANSPORTATION COMMISSION
And CITY OF SAN RAFAEL
For the NORTHGATE SEPCIFIC PLAN
This Supplement No. 3 to the Master Funding Agreement (“Supplement” or “Agreement”) is entered into this November 17, 2025 by and between the METROPOLITAN TRANSPORTATION COMMISSION (“MTC”) and CITY OF SAN RAFAEL (“AGENCY”) and supplements the Master Funding Agreement, dated July 1, 2018 by and between MTC and AGENCY.

Pursuant to this Supplement, MTC agrees to reimburse an amount not to exceed seven hundred ninety-seven thousand dollars ($797,000) in federal Surface Transportation Improvement Block Grant (ALN 20.205) funds to AGENCY to fund the Northgate Area PDA Study also known as the Northgate Specific Plan (as more fully described in Annex I hereto, the “Supplement Project”). The estimated budget and payment milestones for the Supplement Project scope of work is attached as Annex II hereto.

AGENCY is not required to have insurance for this project but shall require its subconsultants to maintain appropriate levels of insurance against claims, damages and losses due to injuries to persons or damage to property or other losses that may arise in connection with the performance of work under this Agreement.

The clauses selected below and attached as exhibits to the Master Funding Agreement shall apply to AGENCY’s performance of the applicable Supplement Project scope of work hereunder.

Insurance is not required for this project.
☒ Exhibit B-1, Additional Terms and Conditions (General), Paragraph A ☒ Exhibit B-1, Additional Terms and Conditions (General), Paragraph B ☒ Exhibit B-2, Additional Terms and Conditions (Federally Required Clauses) ☐ Exhibit B-3, Additional Terms and Conditions (State Required Clauses) ☐ Exhibit B-4, Additional Terms and Conditions (Prevailing Wage Rates, Apprenticeships, and Payroll Records, Non-Federally-Funded Agreements)
☐ Exhibit B-5, Additional Terms and Conditions (Prevailing Wage Rates, Apprenticeships, and Payroll Records, Federally-Funded Agreements)
☐ Exhibit B-6, Additional Terms and Conditions (Regional Toll Funds including RM1, RM2, RM3 and AB1171)
☒ Exhibit B-7, Additional Terms and Conditions (Regional Discretionary Federal Funds including STP and CMAQ)
Funding for this project was initially authorized by the Metropolitan Transportation Commission at the June 28, 2023, Commission Meeting through Resolution 4505. Funding provided through this Supplement will be used by AGENCY to complete the Supplement Project. AGENCY will act in good MTC/City of San Rafael
Master Funding Agreement
Supplement No. 3 – Northgate PDA

Page 2 ends

faith with the intent to adopt policies that are compliant with the relevant portion/s of MTC’s TransitOriented Communities Policy (MTC Resolution 4530, attached as Annex III hereto).

The MTC Project Manager for the Supplement Project is Ada Chan, (415) 820-7958, [email protected]. The Agency Project Manager for the Supplement Project is Margaret Kavanaugh-Lynch, (415) 485-3095, [email protected]. MTC or AGENCY may change their respective Project Manager upon email notification to the other party’s Project Manager.

Payments under this Supplement shall be subject to the availability of federal funds to MTC. If federal funding is delayed, terminated, or reduced, MTC shall promptly notify AGENCY, in writing, of any termination, modification, of federal funding that may negatively impact or alter the funding available under this Supplement. If federal funding is delayed MTC may extend the time to make payment to AGENCY upon prompt written notification of such delay. AGENCY shall not suspend or terminate performance due to delayed payment if such delay is the result of a corresponding delay in MTC’s receipt of federal funds. Upon MTC’s receipt of federal funds, MTC will proceed with payment in accordance with the terms of the Supplement.

MTC may terminate this Supplement immediately by written notice if federal funding is terminated or materially reduced. AGENCY shall be entitled to payment for services satisfactorily rendered and obligations properly incurred up to the date of written notice of termination.

AGENCY agrees to hold harmless MTC from claims asserted by any officers, agents, employees of AGENCY, or any claims asserted by subconsultants of AGENCY or their officers, agents or employees, at any tier, in the event that MTC cannot or does not pay for services as a result of the unavailability of funds.

This Supplement is supplemental to the Master Funding Agreement; all terms and conditions of the Master Funding Agreement, as may be amended, remain unchanged hereby.

Capitalized terms used but not defined herein shall have the respective meanings assigned to them in the Master Funding Agreement.

METROPOLITAN TRANSPORTATION

COMMISSION

CITY OF SAN RAFAEL
Andrew B. Fremier, Executive Director Cristine Alilovich, City Manager MTC/City of San Rafael
Master Funding Agreement
Supplement No. 3 – Northgate PDA

Page 3 ends

ANNEX I
Project Description and Scope of Work
This Priority Development Area (PDA) covers over 100 acres within the Northgate area of North San Rafael. The anchor property within PDA is Northgate Mall, which is typical of regional shopping centers that were developed in the 1960’s. Most of the properties that surround the Mall and are within the PDA are developed with office and commercial service uses, and there are two neighborhood shopping centers (Northgate One and Northgate III). The PDA also includes the Civic Center SMART commuter train station.

Northgate Mall has recently been re-entitled as a mixed-use project, with a mix of retail and restaurants as well as 1422 dwelling units. The new planned development may be found here:
https://www.cityofsanrafael.org/northgate-town-square-rev/. Having completed the planning phase for this important focal point, the City of San Rafael will proceed with drafting a Specific Plan for the plan area.

The following scope of work outlines an approach for the preparation of a Specific Plan for the Northgate area that articulates a clear vision to foster transit-oriented development, enhance regional equity, and bring mobility, housing, and economic development opportunities to this part of the City of San Rafael.

Task 1: Start Up
This task involves activities related to initiation of the Specific Plan, including a kickoff meeting and development of a community engagement strategy.

1.1 Community Engagement Strategy: A Community Engagement Strategy tailored for the Specific Plan will be developed. The Strategy will cover engagement activities as they relate to key junctures during the course of the project. The focus of the strategy will be on providing meaningful opportunities for public input into the development of the Plan and on actively engaging a range of stakeholders—including residents, business owners, property owners, local organized groups, community and faith-based organizations, schools, seniors, and youth throughout the process. Successful outreach and engagement meets people where they are and provides meaningful opportunities for input that influences outcomes. The Community Engagement Strategy will show how engagement will influence outcomes at each phase and include a range of tested and proven methods, including community meetings, workshops, and listening sessions; pop-up outreach at events around the area; interactive online surveys; a dedicated City of San Rafael website, social media engagement; and formal public meetings, as well as activities engaging traditionally under-represented communities. The Community Engagement Strategy will build off insights from prior community engagement in order to reduce the risk of community engagement fatigue.

Page 4 ends

three TAC meetings shall be held at key junctures during the course of the project, and the TAC will review and provide feedback on key project deliverables, including the administrative draft Specific Plan. The timing and objectives of each TAC meeting will be described in subsequent tasks. TAC meetings will not be public meetings subject to the Brown Act, however, brief meeting summaries will be prepared and posted to the project website in English and Spanish.

1.3 Project Kickoff Meeting: AGENCY’s consultant will meet with AGENCY staff to review objectives for the Specific Plan and community engagement, as well as the scope of work, budget, and schedule. At the kickoff meeting we will identify data sources, clarify roles and responsibilities, and establish communication protocols. Additionally, the kickoff meeting will be an opportunity to review community engagement strategy components. Following the kickoff meeting, a van/car/walking tour of the plan area will be conducted. Following the kickoff meeting and site tour, a brief summary memorandum detailing attendees, topics discussed, and action items/next steps will be produced. AGENCY will conduct a kickoff meeting with the MTC Project Manager to confirm processes and expectations and clarify any outstanding questions. • Deliverables:

1.1 Community engagement strategy (draft and final)

1.2 Kickoff meeting summary memorandum
Task 2: Community and Stakeholder Engagement
As identified in Task 1 (Final Community Engagement Strategy) –Key staff from the City of San Rafael’s Economic Development Division, Library and Recreation Department, and Digital Service and Open Government Department, as well as representatives from the School District in the plan area and community-based organizations will be identified. The goal is to leverage community events that may occur in or near the Plan area to inform residents about the Specific Plan and to gather input in a variety of forums. At the end of the task, a brief Community Engagement Report summarizing activities completed and key findings will be prepared by the Agency’s consultant.

2.1 Pop-up Outreach and or Community Listening Sessions: Two listening sessions/Pop- up Outreach sessions will be held as part of this initial step at locations identified in Task 1. Materials for these sessions shall be provided in English and Spanish and will include QR codes that link participants to the dedicated City of San Rafael website which will have short surveys to ensure that confidential responses are supported.

2.2 Community Workshop: Building on community input received at the listening sessions and initial pop-up events, a list of issues that have been presented by stakeholders will be prepared. Materials for the two workshops will include large-format display graphics summarizing issues identified and next steps. This effort includes noticing, holding and summarizing the event in English and Spanish.

2.3 Website: As per the Final Community Engagement Strategy developed in Task 1, a project website including project branding, text and graphic content will be developed and, and be regularly updated. Social media content will be developed to publicize engagement opportunities.

MTC/City of San Rafael
Master Funding Agreement
Supplement No. 3 – Northgate PDA

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The project website will include a project overview and public content. Materials will be provided in English and Spanish and be ADA compliant.

2.4 Decision-Maker Study Sessions: There will be two project study sessions – one with the Planning Commission and one with AGENCY’s City Council – to review the Draft Specific Plan and the community input that has informed it. The objective of the study sessions will be to confirm the Specific Plan reflects AGENCY's desired vision for the Northgate Specific Plan Area, prior to commencing environmental review.
• Deliverables:

2.1 Meeting materials for three pop-up events

2.2 Meeting materials for two community workshops

2.3 Meeting materials for two decision-maker study sessions

2.4 Website and survey(s) creation

2.5 Three TAC meeting summaries

2.6 Outreach report - which includes an analysis of survey and engagement findings at each stage of project (Task 3 and Task 4) and the two community workshops.

Task 3: Issues and Opportunities Identification
This task involves preparation of a series of memorandums summarizing existing conditions, issues, and opportunities in the Northgate Specific Plan Area. The memoranda will be reviewed with the TAC, comprised of staff from AGENCY, MTC Project Manager, and other partner agencies, and refined on the basis of TAC feedback. The findings of these memoranda as well as the outcomes of Task 2 will inform development of Draft Specific Plan.

3.1 Existing Conditions Memorandum: This memorandum serves to provide a summary of the previous planning efforts and existing conditions of the Plan Area. It would include a list of previously adopted planning documents completed for the Plan Area.

3.2 Priority Development Area Profile: A Priority Development Area (PDA) profile detailing the demographic and socio-economic characteristics of the planning area will be prepared. The PDA profile will characterize the population in the Plan Area (age, ethnicity, language spoken, place of birth, disability, employment, place of work, income and poverty, travel mode to work, commute patterns, ownership map and vehicle availability) using information from the U.S. Census and the General Plan/Housing Element, and GIS database.

3.3 Market Conditions and Trends Report: A comprehensive Market Conditions and Trends Report analyzing economic, demographic, and land use trends within the plan area will be prepared. This report will include mapping and assessing key community assets such as workforce development programs, job centers, medical and community facilities, grocery stores/access to food, recreational amenities, schools, childcare centers, gathering spaces, and cultural venues. The report will identify gaps in services and amenities and highlight emerging trends. It will also include a preliminary analysis of fiscal impacts, such as sales tax generation, contributions to the General Fund, and a comparative financing strategy outlining how different land use alternatives support long-term municipal revenue.

MTC/City of San Rafael
Master Funding Agreement
Supplement No. 3 – Northgate PDA

Page 6 ends

3.4 Affordable Housing/Anti-Displacement Strategy: An affordable housing/anti-displacement strategy will be developed to help ensure a range of housing options that are affordable to households of all income levels will be available within the Specific Plan area. The strategy will describe the existing demographic and housing profile of the area, quantify the need for affordable housing, and identify specific affordable housing goals for the Specific Plan. The strategy will address the following:

1. Assessment of existing conditions, including the existing population, housing characteristics, and market conditions as drawn from the market assessment, and relevant policies.

2. Quantification of affordable housing need by income level for existing and future population.

3. Identification of goals and objectives.

4. Location and generalized types of units to be developed in the plan area.

5. Policies, standards, and programs to attract and facilitate the development of affordable units.
• Deliverables:

3.1 Existing Conditions Memo

3.2 PDA Profile (draft and final)

3.3 Market Conditions and Trends Report (draft and final)

3.4 Affordable Housing/Anti-Displacement Strategy
Task 4: Alternatives Evaluation
This task involves preparation of up to three land use and circulation alternatives that respond to the existing conditions, issues, and opportunities identified in Task 3, as well as input received from the initial community outreach and engagement events. The alternatives will be represented conceptually with illustrations and examples to facilitate understanding and presented to the community for feedback.

Based on the community input received, a Preferred Plan will be developed to reflect community preferences and priorities and reviewed with the TAC.

4.1 Land Use and Circulation Alternatives: Up to three (3) land use and circulation alternatives based on the analysis and public input gathered to date will be prepared. Focusing on specific vacant and underutilized opportunity sites within the Specific where redevelopment is foreseeable, the alternatives will be designed to explore options for land use mix; density and development intensity; economic development; connectivity, multimodal mobility, and streetscapes; and the public realm. The alternatives will be presented in a series of maps, graphics, and images with accompanying text, so the information is concise, inviting to look at, and easily understood.

Projections for net new housing units, population, and non-residential square footage will be developed for each alternative.

Seek Input on the Alternatives: The alternatives will be reviewed with the TAC and refined as needed prior to the community workshop described in Task 2.

MTC/City of San Rafael
Master Funding Agreement
Supplement No. 3 – Northgate PDA

Page 7 ends

Vision Statement - reflecting community aspirations for the Northgate Specific Plan Area in view of identified issues and opportunities.
• Land Use and Circulation Map - illustrating the desired mix of land uses, densities and intensities, and the circulation improvements needed to support them.

Conceptual Renderings - representing the future physical form and character of development at two key opportunity sites along the Northgate San Rafael Specific Plan Area, including associated streetscapes.
• Equity Assessment - outlining issues and strategies to address equity issues, based on previously completed analysis including the housing needs assessment and affirmatively furthering fair housing analysis completed as part of the Housing Element. • Infrastructure Assessment - a planning level assessment of infrastructure improvements needed to support the development pattern of the Preferred Plan, based on input from AGENCY staff, Marin Municipal Water District, Las Gallinas Valley Sanitary District and other service providers.

The Draft Preferred Plan will be reviewed with the TAC and refined based on input received.

Subsequently, it will be presented to the community at large for feedback as part of an interactive online survey on the AGENCY’s website and a second community workshop. This survey will be advertised on social media outlets, AGENCY’s website and other outlets. Survey results and the Preferred Plan will be presented to City of San Rafel decision-makers at two study sessions – one before the Planning Commission and one before AGENCY’s City Council. Once approved by decision-makers, the Preferred Plan will serve as the basis for the Draft Specific Plan and any necessary environmental review steps pursuant to the California Environmental Quality Act (CEQA).
• Deliverables:

4.1 Alternatives package

4.2 Preferred Plan package (draft and final)

4.3 TAC meeting summaries
Task 5: Draft Plan Preparation
This task involves preparing the full Draft Specific Plan, incorporating the major substantive content developed during preceding tasks.

5.1 Draft Plan
An Administrative Draft Specific Plan will be prepared, informed by the assessments and findings of prior tasks. The following sections are anticipated:

MTC/City of San Rafael
Master Funding Agreement
Supplement No. 3 – Northgate PDA

Page 8 ends

• Introduction and Vision: The intent, organization, and introduction to the Specific Plan, together with a summary of the community engagement processes and community input and a statement of goals, concepts, and desired outcomes.
• Land Use and Housing: Land use designations, permitted and/or required use mixes, and development intensities presented in the form of site maps, detailed circulation plans, and supportive graphics. Development potential, including market-rate and affordable housing units, building square footage, population, and job projections. Affordable housing and antidisplacement strategies will be incorporated. • Circulation: Key circulation improvements for pedestrians, bicyclists, transit, motor vehicles and their integration with the broader citywide context. This section will include a strategy for multi-modal access and connectivity to and within the planning area to promote transit use and other alternative modes of transportation, including policies for complete streets, parking management, and zero emissions vehicle fueling and charging infrastructure. • Urban Design and Public Realm: Objective design standards and public realm design guidelines to integrate new development into the Plan Area and foster pedestrian-and transitoriented building and open space design, enhancing safety and multi-modal access and connectivity.
• Community Assets & Infrastructure: Schools, parks, health care and social service facilities along with any other community facilities and public infrastructure improvements needed to support the vision for the Specific Plan will be identified. • Equity, Health and Environmental Sustainability: Goals, policies, and design guidance related to social, economic, transportation, and environmental equity within the Plan Area. This includes pedestrian and bicycle connections to jobs, schools, parks, services, and transit; as well as climate resilience/adaptation programs. Progress indicators to monitor and measure the Plan’s achievement of equity, health, and environmental sustainability and resilience goals.

Following review of the Administrative Draft, one round of consolidated comments will be responded to and a screen check draft to confirm comments have been adequately addressed will be prepared. Then a Public Review Draft Specific Plan will be released for comment.

5.2 Zoning Amendments: Updates to use tables and design/development standards corresponding to the districts/uses for consistency with the Preferred Plan will be identified. These will address floor area ratio (FAR), height, parking, coverage or open space requirements, massing and articulation and transitions among other key regulations and character defining features. These will be used by staff to subsequently prepare ordinances for the zoning text amendments. • Deliverables:

5.1 Draft Specific Plan

5.2 Zoning Amendment Language presented to AGENCY’s City Council MTC/City of San Rafael
Master Funding Agreement
Supplement No. 3 – Northgate PDA

Page 9 ends

Task 6: Environmental Review
An Environmental Impact Report (EIR) is anticipated to be required for the Plan. This scope of work assumes that an EIR will be prepared.

6.1 Notice of Preparation and Scoping: A Notice of Preparation (NOP) will be prepared and submitted to all responsible and trustee agencies and to the public, informing them that AGENCY is initiating the environmental review required the Specific Plan. Notice will be given to the State Clearinghouse and to local agencies and interested parties. During the 30-day scoping period, a public meeting will be held to take comments on issues to be addressed in the EIR. NOP comments received will be summarized in a Memorandum.

6.2 Prepare Draft EIR: A Draft EIR pursuant to the requirements of the California Environmental Quality Act (CEQA) for the Draft Specific Plan will be prepared.

6.3 Prepare Final EIR and Mitigation Monitoring and Reporting Program: After close of the 45- day comment period, each individual comment received within each comment letter will be bracketed and numbered and any comments received during the public hearing and will prepare responses to each comment that pertains to environmental issues. A Mitigation Monitoring and Reporting Program (MMRP)will be prepared and include each mitigation measure identified, timing, entity responsible for implementation, and method of compliance. A draft of the MMRP will be provided with the Administrative Final Subsequent EIR. An Administrative Draft and screen check draft document for internal review along with a Final document for circulation ahead of hearings will be prepared.
• Deliverables:

6.1 Notice of Preparation

6.2 Draft EIR

6.3 Final EIR

6.4 MMRP
MTC/City of San Rafael
Master Funding Agreement
Supplement No. 3 – Northgate PDA

Page 10 ends

ANNEX II
Project Schedule, Budget and Payment

COST REIMBURSEMENT
MTC will reimburse AGENCY for all expenses deemed reasonable and necessary by MTC incurred by AGENCY in the performance of this Agreement. Such reimbursement shall include travel and personal expenses incurred by employees or agents of AGENCY in accordance with 48 Code of Federal Regulations Part 31 or 2 CFR Part 200, as applicable.

AGENCY shall submit a request for reimbursement at least annually, by July 31, to request reimbursement for costs incurred in the preceding fiscal year. The request shall identify the amount requested by task and/or deliverable, total amount requested, total of any prior requests and total remaining balance under this Agreement. The request shall also include proof of expenses incurred, a summary of work completed by task and any deliverables completed associated with the task. Final invoice shall be submitted no later than 30 calendar days after the end date of this supplement.

AGENCY shall provide all deliverables associated with a task before full disbursement is made for any task. Budget amounts may be reallocated between line items at the discretion of the MTC Project Manager in consultation with the AGENCY.

The estimated budget by Task and Deliverable is described below.

DELIVERABLE EXPECTED DATE

OF COMPLETION
BUDGET
Task 1: Start Up $25,000

1.1 Community Engagement Strategy 1/2026

1.2 Kickoff Meeting TBD
Task 2: Community Engagement $100,000

2.1 Pop Up Outreach and Community Listening Sessions
3/2026

2.2 Community Workshop TBD

2.3 Technical Advisory Committee Meetings (3) TBD

2.4 Decision Maker Study Sessions TBD

2.5 Three TAC meeting summaries TBD

2.6 Outreach report - which includes an analysis of survey and engagement findings at each stage of project (Task 3 and Task 4) and the two community workshops. 4/2027
Task 3: Issues and Opportunities Identification $75,000

3.1 Existing Conditions Memo 5/2026

3.2 PDA Profile 5/2026

3.3 Market Conditions and Trends Report 5/2026
MTC/City of San Rafael
Master Funding Agreement
Supplement No. 3 – Northgate PDA

Page 11 ends

DELIVERABLE EXPECTED DATE

OF COMPLETION
BUDGET

3.4 Affordable Housing/Anti-Displacement Strategy 7/2026 Task 4: Alternatives Evaluation $160,000

4.1 Alternatives package 10/2026

4.2 Survey

4.3 Preferred Plan package (draft and final) 2/2027

4.4 TAC meeting summaries 3/2027
Task 5: Draft Plan Preparation $130,000

5.1 Draft Specific Plan 8/2027

5.2 Zoning Amendments 5/2028
Task 6: Environmental Review $300,000

6.1 NOP and Scoping 2/2027

6.2 Draft EIR 11/2027

6.3 Final EIR 3/2028

6.4 Final MMRP 3/2028
Contingency $7,000
TOTAL BUDGET $797,000
MTC/City of San Rafael
Master Funding Agreement
Supplement No. 3 – Northgate PDA

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ANNEX III
MTC Resolution 4530
Transit Oriented Communities (TOC) Policy

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RESOLUTION NO.

RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO SUPPLEMENT NO. 4 TO

THE MASTER FUNDING AGREEMENT BETWEEN THE METROPOLITAN TRANSPORTATION COMMISSION (“MTC”) AND THE CITY OF SAN RAFAEL TO FUND THE PREPARATION OF THE

SOUTHEAST SAN RAFAEL SPECIFIC PLAN AND AUTHORIZING SUPPLEMENTAL BUDGET APPROPRIATIONS TOTALING $797,000 IN FISCAL YEAR (FY) 2025-26 WHEREAS, in January 2022, MTC released its third round of One Bay Area Grant funds (OBAG3); and WHEREAS, the Transportation Authority of Marin (TAM) was responsible for evaluating OBAG3 projects, establishing initial project prioritization based on a list of criteria, and submitting project nominations for consideration by MTC; and
WHEREAS, on October 17, 2022, the City Council passed Resolution No. 15144 of local support authorizing the filing of applications for funding with the MTC and stating assurance to complete the Canal/Southeast Area PDA Area Plan, also known as the Southeast San Rafael Specific Plan; and WHEREAS, on October 21, 2025, staff received final approval from the MTC for the funding to prepare the Southeast San Rafael Specific Plan.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael finds the foregoing recitals are true and correct, and authorizes the City Manager or their designee to enter into Supplement No. 4 to the Master Funding Agreement between the Metropolitan Transportation Commission (“MTC”) and the City of San Rafael to fund the preparation of the Southeast San Rafael Specific Plan based on Exhibit 1; and
FURTHER RESOLVED, that the City Council authorizes supplemental budget appropriations of an amount not to exceed seven hundred ninety-seven thousand dollars ($797,000) within the Development Services Fund (207) to support this agreement.

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
_______________________
LINDSAY LARA, City Clerk
Exhibit A
SUPPLEMENT NO. 4
To MASTER FUNDING AGREEMENT
Between METROPOLITAN TRANSPORTATION COMMISSION
And CITY OF SAN RAFAEL
For the SOUTHEAST SAN RAFAEL SPECIFIC PLAN
This Supplement No. 4 to the Master Funding Agreement (“Supplement” or “Agreement”) is entered into this November 17, 2025 by and between the METROPOLITAN TRANSPORTATION COMMISSION (“MTC”) and CITY OF SAN RAFAEL (“AGENCY”) and supplements the Master Funding Agreement, dated July 1, 2018 by and between MTC and AGENCY.

Pursuant to this Supplement, MTC agrees to reimburse an amount not to exceed seven hundred ninety-seven thousand dollars ($797,000) in federal Surface Transportation Improvement Block Grant (ALN 20.205) funds to AGENCY to fund the Southeast San Rafael Specific Plan (as more fully described in Annex I hereto, the “Supplement Project”). The estimated budget and payment milestones for the Supplement Project scope of work is attached as Annex II hereto.

The Supplement Project work will commence on December 1, 2025 and be completed no later than June 30, 2028. All payment requests shall be submitted no later than 30 calendar days after the end date of this supplement
The clauses selected below and attached as exhibits to the Master Funding Agreement shall apply to AGENCY’s performance of the applicable Supplement Project scope of work hereunder.

MTC/City of San Rafael
Master Funding Agreement
Supplement No. 4 – Southeast PDA

Page 2 ends

This Supplement is supplemental to the Master Funding Agreement; all terms and conditions of the Master Funding Agreement, as may be amended, remain unchanged hereby.

Capitalized terms used but not defined herein shall have the respective meanings assigned to them in the Master Funding Agreement.

METROPOLITAN TRANSPORTATION

COMMISSION

CITY OF SAN RAFAEL
Andrew B. Fremier, Executive Director Cristine Alilovich, City Manager MTC/City of San Rafael
Master Funding Agreement
Supplement No. 4 – Southeast Specific Plan

Page 3 ends

ANNEX I
Project Description and Scope of Work
This Plan area is approximately two square miles and contains the highest concentration of mixed uses and intensity of development in Marin County. The Plan area is highly developed with a diverse mix of land uses and intensities, including:

The Plan area includes the highest density of rental housing in Marin County. The Canal neighborhood demographic consists of primarily immigrant, Spanish-speaking community that provides workforce for Marin County. While the Canal neighborhood is dynamic and vital, the community experiences unacceptable rates of poverty, as well as overcrowded and unaffordable housing conditions. A large portion of this neighborhood is also a federally designated Opportunity Zone. Preservation of affordable housing stock for these residents is paramount.

This Plan area also contains most of the commercial services and industrial businesses that serve the City of San Rafael and the greater Marin County population. The Plan area is the economic engine of San Rafael, generating nearly two-thirds of San Rafael’s sales tax revenue and employing more than 12,000 people. It fills a critical niche in the Marin County economy, providing space for auto sales and repair, building services and construction, home furnishings, and essential light industrial activities. The Plan area is home to most of the essential public services and utilities that serve the City of San Rafael and the greater Marin County. Preserving these uses is critical and important to the sustainability of the County at large.

Lastly, the Plan area contains critical public transit and two key regional transportation networks, US101 and I-580, which converge within the Plan area.

The following scope of work outlines an approach for the preparation of a Specific Plan for the Southeast San Rafael PDA area that articulates a clear vision to foster transit-oriented development, enhance regional equity, and bring mobility, housing, and economic development opportunities to this part of the City of San Rafael.

Task 1: Start Up
This task involves activities related to initiation of the Specific Plan, including a kickoff meeting and development of a community engagement strategy.

Page 4 ends

provides meaningful opportunities for input that influences outcomes. The Community Engagement Strategy will show how engagement will influence outcomes at each phase and include a range of tested and proven methods, including community meetings, workshops, and listening sessions; pop-up outreach at events around the area; interactive online surveys; a dedicated project website, social media engagement; and formal public meetings, as well as activities engaging traditionally under-represented communities. The Community Engagement Strategy will build off insights from prior community engagement, as summarized in the Plan Audit, the Canal Alliance’s Nuestro Canal Nuestro Futuro project, and Community Action Marin’s 2025 Needs Assessment in order to reduce the risk of community engagement fatigue.

1.2 Technical Advisory Committee: AGENCY will convene a Technical Advisory Committee (TAC) to advise on technical aspects of the Specific Plan and provide valuable insight on topics such as sea level rise, mobility, housing, safety, and infrastructure. Members will include key staff from AGENCY departments, MTC liaison and representatives from other affected agencies. A total of three TAC meetings shall be held at key junctures during the course of the project, and the TAC will review and provide feedback on key project deliverables, including the administrative draft Specific Plan. The timing and objectives of each TAC meeting will be described in subsequent tasks. TAC meetings will not be public meetings subject to the Brown Act, however, brief meeting summaries will be prepared and posted to the project website in English and Spanish.

1.3 Project Kickoff Meeting: AGENCY’s consultant team will meet with AGENCY to review objectives for the Specific Plan and community engagement, as well as the scope of work, budget, and schedule. At the kickoff meeting we will identify data sources, clarify roles and responsibilities, and establish communication protocols. Additionally, the kickoff meeting will be an opportunity to review community engagement strategy components. Following the kickoff a van/car/walking tour of the plan area will be conducted. Following the kickoff meeting and site tour, a brief summary memorandum detailing attendees, topics discussed, and action items/next steps will be produced. AGENCY will conduct a kickoff meeting with the MTC Project Manager to confirm processes and expectations and clarify any outstanding questions. • Deliverables:

1.1 Community engagement strategy

1.2 Kickoff meeting summary memorandum
Task 2: Community and Stakeholder Engagement
As identified in Task 1 (Final Community Engagement Strategy), key staff from the City of San Rafael’s Economic Development Division, Library and Recreation Department, and Digital Service and Open Government Department, as well as representatives from the School District in the plan area and community-based organizations will be identified. The goal is to leverage community events that may occur in or near the Plan area to inform residents about the Specific Plan and to gather input in a variety of forums. At the end of the task a brief Community Engagement Report summarizing activities completed and key findings will be prepared by the consultant.

MTC/City of San Rafael
Master Funding Agreement
Supplement No. 4 – Southeast Specific Plan

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2.3 Website: As per the Final Community Engagement Strategy developed in Task 1, a project website including project branding, text and graphic content will be developed and updated regularly . Social media content will be developed to publicize engagement opportunities. The project website will include a project overview and public content. Materials will be provided in English and Spanish and be ADA compliant.

2.4 Decision-Maker Study Sessions: There will be two project study sessions – one with the Planning Commission and one with AGENCY’s City Council – to review the Draft Specific Plan and the community input that has informed it. The objective of the study sessions will be to confirm the Specific Plan reflects AGENCY’s desired vision for the Southeast Specific Plan Area, prior to commencing environmental review.
• Deliverables:

2.1 Meeting materials for three pop-up events

2.2 Meeting materials for two community workshops

2.3 Meeting materials for two decision-maker study sessions

2.4 Website

2.5 Three TAC meeting summaries

2.6 Outreach report - which includes an analysis of survey and engagement findings at each stage of project (Task 3 and Task 4) and the two community workshops.

Task 3: Issues and Opportunities Identification
This task involves preparation of a series of memorandums summarizing existing conditions, issues, and opportunities in the Southeast San Rafael Specific Plan Area. The memoranda will be reviewed with the TAC, comprised of staff from AGENCY, MTC Project Manager, and other partner agencies, and refined on the basis of TAC feedback. The findings of these memoranda as well as the outcomes of Task 2 will inform development of Draft Specific Plan.

MTC/City of San Rafael
Master Funding Agreement
Supplement No. 4 – Southeast Specific Plan

Page 6 ends

3.3 Market Conditions and Trends Report: A comprehensive Market Conditions and Trends Report analyzing economic, demographic, and land use trends within the plan area will be prepared. This report will include mapping and assessing key community assets such as workforce development programs, job centers, medical and community facilities, grocery stores/access to food, recreational amenities, schools, childcare centers, gathering spaces, and cultural venues. The report will identify gaps in services and amenities, highlight emerging trends, and propose strategies to address deficiencies in the context of rising sea levels. It will also include a preliminary analysis of fiscal impacts, such as sales tax generation, contributions to the General Fund, and a comparative financing strategy outlining how different land use alternatives support long-term municipal revenue.

3.4 Affordable Housing/Anti-Displacement Strategy: An affordable housing/anti-displacement strategy will be developed to help ensure a range of housing options that are affordable to households of all income levels will be available within the Southeast San Rafael Specific Plan area. The strategy will describe the existing demographic and housing profile of the area, quantify the need for affordable housing, and identify specific affordable housing goals for the Specific Plan. The strategy will address the following:

1. Assessment of existing conditions, including the existing population, housing characteristics, and market conditions as drawn from the market assessment, and relevant policies.

2. Quantification of affordable housing need by income level for existing and future population.

3. Identification of goals and objectives.

4. Location and generalized types of units to be developed in the plan area.

5. Policies, standards, and programs to attract and facilitate the development of affordable units.
• Deliverables:

3.1 Existing Conditions Memo

3.2 PDA Profile

3.3 Market Conditions and Trends Report
MTC/City of San Rafael
Master Funding Agreement
Supplement No. 4 – Southeast Specific Plan

Page 7 ends

Based on the community input received, a Preferred Plan will be developed to reflect community preferences and priorities and reviewed with the TAC.

4.1 Land Use and Circulation Alternatives: Up to three (3) land use and circulation alternatives based on the analysis and public input gathered to date. Focusing on specific vacant and underutilized opportunity sites within the Specific where redevelopment is foreseeable, the alternatives will be designed to explore options for land use mix; density and development intensity; economic development; connectivity, multimodal mobility, and streetscapes; and the public realm. The alternatives will be presented in a series of maps, graphics, and images with accompanying text, so the information is concise, inviting to look at, and easily understood.

Projections for net new housing units, population, and non-residential square footage will be developed for each alternative.

Seek Input on the Alternatives: The alternatives will be reviewed with the TAC and refined as needed prior to the community workshop described in Task 2.

4.2 Preferred Plan: Based on the community input received, a Draft Preferred Plan will be developed to reflect community preferences and priorities. The Draft Preferred Plan will contain the following components:
• Vision Statement - reflecting community aspirations for the Southeast San Rafael Specific Plan Area in view of identified issues and opportunities.
• Land Use and Circulation Map - illustrating the desired mix of land uses, densities and intensities, and the circulation improvements needed to support them. • Conceptual Renderings - representing the future physical form and character of development at two key opportunity sites along the Southeast San Rafael Specific Plan Area, including associated streetscapes.
• Equity Assessment - outlining issues and strategies to address equity issues, based on previously completed analysis including the housing needs assessment and affirmatively furthering fair housing analysis completed as part of the Housing Element.

MTC/City of San Rafael
Master Funding Agreement
Supplement No. 4 – Southeast Specific Plan

Page 8 ends

• Infrastructure Assessment - a planning level assessment of infrastructure improvements needed to support the development pattern of the Preferred Plan, based on input from AGENCY, Marin Municipal Water District, San Rafael Sanitary District and other service providers.

The Draft Preferred Plan will be reviewed with the TAC and refined based on input received.

Subsequently, it will be presented to the community at large for feedback as part of an interactive online survey on AGENCY’s website and a second community workshop. This survey will be advertised on social media outlets, the City of San Rafael’s website and other outlets. Survey results and the Preferred Plan will be presented to City of San Rafel decision-makers at two study sessions – one before AGENCY’s Planning Commission and one before AGENCY’s City Council.

Once approved by decision-makers, the Preferred Plan will serve as the basis for the Draft Specific Plan and any necessary environmental review steps pursuant to the California Environmental Quality Act (CEQA).
• Deliverables:

4.1 Land Use and Circulation Alternatives

4.2 Preferred Plan package (draft and final)

4.3 TAC meeting summaries
Task 5: Draft Plan Preparation
This task involves preparing the full Draft Specific Plan, incorporating the major substantive content developed during preceding tasks.

5.1 Draft Plan: An Administrative Draft Specific Plan will be prepared, informed by the assessments and findings of prior tasks. The following sections are anticipated:
• Introduction and Vision: The intent, organization, and introduction to the Specific Plan, together with a summary of the community engagement processes and community input and a statement of goals, concepts, and desired outcomes.
• Land Use and Housing: Land use designations, permitted and/or required use mixes, and development intensities presented in the form of site maps, detailed circulation plans, and supportive graphics. Development potential, including market-rate and affordable housing units, building square footage, population, and job projections. Affordable housing and antidisplacement strategies will be incorporated. • Circulation: Key circulation improvements for pedestrians, bicyclists, transit, motor vehicles and their integration with the broader citywide context. This section will include a strategy for multi-modal access and connectivity to and within the planning area to promote transit use and other alternative modes of transportation, including policies for complete streets, parking management, and zero emissions vehicle fueling and charging infrastructure.

MTC/City of San Rafael
Master Funding Agreement
Supplement No. 4 – Southeast Specific Plan

Page 9 ends

• Urban Design and Public Realm: Objective design standards and public realm design guidelines to integrate new development into the Plan Area and foster pedestrian-and transitoriented building and open space design, enhancing safety and multi-modal access and connectivity.
• Community Assets & Infrastructure: Schools, parks, health care and social service facilities along with any other community facilities and public infrastructure improvements needed to support the vision for the Specific Plan will be identified. • Equity, Health and Environmental Sustainability: Goals, policies, and design guidance related to social, economic, transportation, and environmental equity within the Plan Area. This includes pedestrian and bicycle connections to jobs, schools, parks, services, and transit; as well as climate resilience/adaptation programs. Progress indicators to monitor and measure the Plan’s achievement of equity, health, and environmental sustainability and resilience goals.

Following review of the Administrative Draft, one round of consolidated comments will be responded to and a screen check draft to confirm comments have been adequately addressed will be prepared.

Then a Public Review Draft Specific Plan will be released for comment.

5.1 Draft Specific Plan

5.2 Zoning Amendment Language presented to AGENCY’s City Council Task 6: Environmental Review
An Environmental Impact Report (EIR) is anticipated to be required for the Plan. This scope of work assumes that an EIR will be prepared.

6.1 Notice of Preparation and Scoping: A Notice of Preparation (NOP) will be submitted to all responsible and trustee agencies and to the public, informing them that AGENCY is initiating the environmental review required under the Specific Plan. Notice will be given to the State Clearinghouse and to local agencies and interested parties. During the 30-day scoping period, a public meeting will be held to take comments on issues to be addressed in the EIR. NOP comments received will be summarized in a Memorandum.

6.2 Prepare Draft EIR: A Draft EIR pursuant to the requirements of the California Environmental Quality Act (CEQA) for the Draft Specific Plan will be prepared.

MTC/City of San Rafael
Master Funding Agreement
Supplement No. 4 – Southeast Specific Plan

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6.3 Prepare Final EIR and Mitigation Monitoring and Reporting Program: After close of the 45- day comment period, each individual comment received within each comment letter and any comments received during the public hearing will be documented and responses to each comment that pertains to environmental issues will be prepared. A Mitigation Monitoring and Reporting Program (MMRP) will be prepared that includes each mitigation measure identified, timing, entity responsible for implementation, and method of compliance. A draft of the MMRP will be provided with the Administrative Final Subsequent EIR. An Administrative Draft and screen check draft document for internal review along with a Final document for circulation ahead of hearings will be prepared.
• Deliverables:

6.1 Notice of Preparation and Memorandum on comments to NOP

6.2 Draft EIR

6.3 Final EIR

6.4 Final MMRP
MTC/City of San Rafael
Master Funding Agreement
Supplement No. 4 – Southeast Specific Plan

Page 11 ends

ANNEX II
Project Schedule, Budget and Payment

The estimated budget by Task and Deliverable is described below.

DELIVERABLE EXPECTED DATE

OF COMPLETION
BUDGET
Task 1: Start Up $25,000

1.1 Community Engagement Strategy 11/2025

1.2 Kickoff Meeting TBD
Task 2: Community Engagement $100,000

2.1 Pop Up Outreach and Community Listening Sessions 1/2026

2.2 Community Workshop TBD

2.3 Technical Advisory Committee Meetings (3) TBD

2.4 Decision Maker Study Sessions TBD

2.5 Three TAC meeting summaries TBD

2.6 Outreach report - which includes an analysis of survey and engagement findings at each stage of project (Task 3 and Task 4) and the two community workshops. 2/2027
Task 3: Issues and Opportunities Identification $75,000

3.1 Existing Conditions Memo 3/2026

3.2 PDA Profile 3/2026

3.3 Market Conditions and Trends Report 3/2026

3.4 Affordable Housing/Anti-Displacement Strategy 5/2026 MTC/City of San Rafael
Master Funding Agreement
Supplement No. 4 – Southeast Specific Plan

Page 12 ends

DELIVERABLE EXPECTED DATE

OF COMPLETION
BUDGET
Task 4: Alternatives Evaluation $160,000

4.1 Land Use and Circulation Alternatives 8/2026

4.2 Preferred Plan 1/2027
Task 5: Draft Plan Preparation $130,000

5.1 Draft Specific Plan 7/2027

5.2 Zoning Amendments 3/2028
Task 6: Environmental Review $300,000

6.1 NOP and Scoping 1/2027

6.2 Draft EIR 10/2027

6.3 Final EIR 1/2028

6.4 Final MMRP 1/2028
Contingency $7,000
TOTAL BUDGET $797,000
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition: Resolution
Agenda Item No: 4.e
Meeting Date: December 1, 2025

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: Sayed Fakhry, City Traffic Engineer
April Miller, Public Works Director
City Manager Approval: ______________
TOPIC: SAN RAFAEL TRAFFIC SIGNAL SYSTEM CONSULTANT SUPPORT SERVICES SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A FIRST AMENDMENT TO TASK ORDER NO. 102 WITH ADVANCED MOBILITY GROUP FOR

ADDITIONAL TRANSPORTATION DESIGN ENGINEERING SERVICES
ASSOCIATED WITH ONGOING SUPPORT OF SAN RAFAEL’S TRAFFIC SIGNAL SYSTEM, IN THE AMOUNT NOT TO EXCEED $100,000, INCREASING THE TOTAL NOT TO EXCEED AMOUNT UNDER THE TASK ORDER TO $170,000
RECOMMENDATION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute a first amendment to Task Order No. 102 with Advanced Mobility Group (AMG) for additional transportation design engineering services associated with ongoing support of San Rafael’s traffic signal system, in the amount not to exceed $100,000, increasing the total not-to-exceed amount under the task order to $170,000.

BACKGROUND:

A Service Level Agreement was executed between the City of San Rafael and Advanced Mobility Group (AMG) on March 13, 2024, for a duration of three (3) years. Task Order (TO) No. 102 for On-Going Support for City’s Traffic Signal System was executed on March 22, 2024, for a not-to-exceed amount of $70,000.

The original task order amount of $70,0000 has been paid to AMG for various traffic signal services provided, and the funds have been depleted. Staff is requesting an amendment to task order No. 102 to increase the total not-to-exceed amount by $100,000. The additional services will include updating and improving traffic signal timing and coordination in the downtown area, as well as providing other signal system support.

ANALYSIS:

Due to the construction of new projects, changes in traffic patterns and traffic volumes in the downtown area, and emerging new Intelligent Transportation System (ITS) technologies, including better software, the City wants to update traffic signal timing and coordination in downtown corridors. City staff is also SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
working with Sonoma-Marin Area Rail Transit (SMART) to explore how to reduce the impact of its crossings on intersections, reduce traffic delays and congestion, improve safety for all modes of transportation, and reduce impacts on air quality. AMG has worked in the past with the City and is familiar with San Rafael’s traffic signal system. Therefore, staff recommends amending the existing task order No. 102 with AMG (Attachment 2) to increase funds for studying the traffic signal system in downtown corridors and developing a plan to improve the signal coordination.

FISCAL IMPACT:

The Fiscal Year 2025-26 Budget approved by the City Council on June 2, 2025, includes appropriations totaling $400,000 within the Traffic Mitigation Fee Fund (#246) for an intelligent transportation system.

This amendment to Task Order No. 102 will be supported by funding provided through those appropriations.

OPTIONS:

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

1. Adopt the resolution as presented.

2. Do not adopt the resolution and provide further direction to staff.

RECOMMENDED ACTION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute a first amendment to Task Order No. 102 with Advanced Mobility Group for additional transportation design engineering services associated with ongoing support of San Rafael’s traffic signal system, in the amount not to exceed $100,000, increasing the total not-to-exceed amount under the task order to $170,000.

ATTACHMENTS:

1. Resolution – First Amendment to Task Order No. 102 with Advanced Mobility Group

2. First Amendment to Task Order No. 102 with Advanced Mobility Group RESOLUTION NO.

RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE A FIRST AMENDMENT TO TASK ORDER NO. 102 WITH

ADVANCED MOBILITY GROUP FOR ADDITIONAL TRANSPORTATION DESIGN

ENGINEERING SERVICES ASSOCIATED WITH ONGOING SUPPORT OF SAN RAFAEL’S TRAFFIC SIGNAL SYSTEM, IN THE AMOUNT NOT TO EXCEED $100,000,

INCREASING THE TOTAL NOT TO EXCEED AMOUNT UNDER THE TASK ORDER TO $170,000
WHEREAS, the City of San Rafael (“City”) entered into a Service Level Agreement dated March 13, 2024, with Advanced Mobility Group (“AMG”) for transportation design engineering services; and
WHEREAS, the term of said agreement is for three (3) years; and WHEREAS, Task Order No. 102 was executed on March 22, 2024, for ongoing support of San Rafael’s traffic signal system in the amount not to exceed $70,000; and WHEREAS, the City of San Rafael requires additional transportation design engineering services from AMG for updating and improving signal timing and coordination in the downtown area and providing other signal system support services; and WHEREAS, staff received a proposal from AMG for said services in a total amount not to exceed $100,000; and
WHEREAS, staff has reviewed the proposal and found it to be complete and within industry standards; and
WHEREAS, the current Fiscal Year (FY) 2025-26 budget approved by the City Council on June 2, 2025, includes appropriations totaling $400,000 within the Traffic Mitigation Fee Fund (#246) for an intelligent transportation system.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows:

1. The City Manager is hereby authorized to execute a First Amendment to Task Order No. 102 with AMG for additional transportation design engineering services in the amount of $100,000 for a total task order amount of $170,000 in a form approved by the City Attorney.

2. The Director of Public Works or designee is hereby authorized to take any and all such actions and make changes as may be necessary to accomplish the purpose of this resolution.

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
___________________
Lindsay Lara, City Clerk

____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 5.a
Meeting Date: December 1, 2025

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: Grey Melgard, Senior Civil
Engineer
April Miller, Public Works
Director
City Manager Approval: ______
TOPIC: 2025-2027 THREE-YEAR PAVEMENT MANAGEMENT PLAN
SUBJECT: INFORMATIONAL PRESENTATION ON 2025-2027 THREE-YEAR PAVEMENT

MANAGEMENT PLAN
RECOMMENDATION:

Staff recommends that the City Council receive the informational plan and presentation. This item is for discussion only; no City Council action is being requested at this time.

BACKGROUND:

The City of San Rafael is challenged by managing an aging system in which many roadways exhibit early to moderate levels of deterioration. Timely maintenance of roadways is essential to address worsening conditions, which will lead to higher long-term repair costs. As such, the City developed an annual pavement management program (“PMP”), which provides vital maintenance and rehabilitation improvements to approximately 173 centerline miles (333 lane miles) of the road network in San Rafael.

In an effort to balance roadway conditions with available funding for pavement maintenance, the City has taken a proactive preservation-first approach to strategically extend pavement life, address localized failures, and delay the need for costly full reconstruction. The City takes the approach of “right treatment, right pavement, right time.” Roadway selection is based on consultant recommendation, roadway usage, the existence of infrastructure compliant with the Americans with Disabilities Act (ADA), and constructability.

Pavement preservation is defined as work that is planned and performed to improve or sustain the condition of a transportation facility in a state of good repair. Preservation activities generally do not add capacity or structural value but do restore the overall condition of the network. These types of preservation projects provide relatively cost-effective improvements that prolong the effective life of roadways in good condition.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
As of 2023, the City’s Pavement Condition Index (PCI) is 61, placing the network in the “Fair” (60 ≤ PCI ≤ 69) category according to the Metropolitan Transportation Commission’s 2024 Pavement Condition of Bay Area Jurisdictions report. The table below shows the PCI for all Marin County jurisdictions.

PCI Scores – Marin County Cities/Towns (2024)
Jurisdiction PCI
2024
Total Lane
Miles
Condition
Category
Larkspur 83 65.8 Very Good (80–89)
Mill Valley 74 116.4 Good (70–79)
Ross 77 21.6 Good (70–79)
Tiburon 72 67.7 Good (70–79)
San Anselmo 69 81.0 Fair (60–69)
Corte Madera 68 72.1 Fair (60–69)
Marin County
(unincorporated) 67 851.7 Fair (60–69)
Novato 64 319.8 Fair (60–69)
San Rafael 62 332.2 Fair (60–69)
Sausalito 58 57.6 At Risk (50–59)
Fairfax 54 54.7 At Risk (50–59)
The next table shows how San Rafael compares to other jurisdictions with comparable roadway miles.

PCI Scores – Jurisdictions with Comparable Total Lane Miles (2024) Jurisdiction PCI
2024
Total Lane
Miles
Condition
Category
Danville 78 324.4 Good (70–79)
Dublin 78 349.7 Good (70–79)
Novato 63 319.8 Fair (60–69)
San Rafael 61 332.2 Fair (60–69)
Union City 67 329.9 Good (70–79)
Between Fiscal Years (FY) 2021-2022 and 2023-2024, the City has invested approximately $4.5 million in pavement preservation, including crack sealing, slurry sealing, and micro-surfacing. The PMP and the Major Pavement Maintenance Project have improved the condition of 25.4 centerline miles and over 735,000 square yards of roadway.

In FY 2024-25, the Major Pavement Maintenance Project included crack sealing, slurry sealing, microsurfacing, and the installation of new traffic striping, crosswalks, and legends, all in accordance with current standards for streets in West San Rafael neighborhoods. The project added preservation to nearly 30 lane miles with over 187,000 square yards of treatment applied.

The City entered into a professional services agreement for $74,500 on November 18, 2024, with CAL Pavement Management to develop the 3-Year Pavement Management Plan. On May 5, 2025, the City Council authorized the City manager to execute a first amendment to the agreement for additional design and planning services associated with completion of the plan, in an additional amount of $70,000, increasing the total not-to-exceed amount under the agreement to $144,500.

ANALYSIS:

The 2025-2027 Three-Year Plan Pavement Management Plan (“Plan”) was developed in partnership with CAL Pavement Management and is based on a full network inventory and field assessment conducted in late 2024 and early 2025. This assessment included evaluating pavement conditions, conducting a preliminary curb ramp review, and providing preservation treatment recommendations for each roadway SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
segment in the City’s network. The Plan provides the framework for strategic planning, sequencing of work, and transparency as it relates to nearby planned infrastructure upgrades, utility partner projects, and resident coordination.

Additionally, the Plan allows continued coordination efforts with other City Capital Annual Programs (Cityled Sidewalk Repair, Public Hillside and Roadway Stability, and the Road Safety Implementation Programs) and other Citywide adopted planning documents (General Plan 2040, 2025-2028 Strategic Plan, Downtown Precise Plan, and the Citywide Bicycle and Pedestrian Plan).

The Plan utilizes data collected from visual assessments to recommend preventive maintenance or rehabilitation treatments for each roadway segment in the City’s network. Roadway segments were evaluated and prioritized based on current condition, functional importance within the network, traffic volumes, and the status of existing Americans with Disabilities Act (ADA)- compliant infrastructure. ADA recommendations are based solely on the need for increased pavement maintenance efforts (microsurfacing) on select roadways. It does not include any expanded scope for additional ADA upgrades.

Additional considerations include available funding and the anticipated extension of pavement life from the proposed treatment. Proposed pavement treatment selection and yearly selection of roadways are presented in the tables and figures of the Plan.

As stated earlier, the City of San Rafael currently has a PCI score of 61. In 2022, MTC commissioned a study for the City of San Rafael as part of its Pavement Management Technical Assistant Program (PTAP). The study determined that to achieve a PCI score of 67 in 2023 and maintain it until the end of 2027, the City would need an average annual budget between 2023 and 2027 of $6.8 million.

The Plan aims to maintain the overall PCI of the City’s network over the next three years, aligning with the City Council’s Fiscal Year 2025-2028 Strategic Plan, Goal B.1.4: Execute a comprehensive pavement management program (PMP) to maintain road quality at a “Fair” Pavement Condition Index (PCI) rating across the City’s roadway network.

PUBLIC OUTREACH:

City staff sent the preliminary Plan to utility groups and transit agencies in August 2025 for comments and coordination. Staff continue to work with our partners in the planned implementation of the construction projects over the next three years to limit repeated impacts on roadways. The Plan is included as Attachment 1 to this report and is also available for public viewing on the City’s Pavement Management Program website. An interactive map is also available on the website for residents to view each year’s planned roadways. Staff presented the maps of proposed streets at the Bicycle and Pedestrian Advisory Committee (“BPAC”) during the October 2025 meeting for public feedback.

In advance of each annual Major Pavement Maintenance Project, City staff will notify residents and property owners whose property is directly adjacent to the planned roadway improvements to provide residents and property owners an opportunity to coordinate and complete any construction work within the public right-of-way, such as curb and gutter and/or sewer lateral replacements, prior to the start of City’s pavement project. Additionally, a written construction notification will be mailed to residents and property owners within a 300-ft (minimum) radius of the project limits describing the project and its impacts, along with a Frequently Asked Questions sheet about the City’s annual pavement management program and the proposed roadway treatments.

FISCAL IMPACT:

There is no fiscal impact for receiving this informational plan and presentation. However, the Three-Year Pavement Management Plan estimates a funding requirement of $6.3 million ($1.8 million, $2.3 million, and $2.2 million, respectively) in support of the identified pavement preservation projects over this period.

Funding for the proposed projects will be from various sources and appropriated through the annual budget process, subject to funding availability. The adopted FY 2025-26 budget includes $3 million in funding to support the annual Pavement Management Program.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
RECOMMENDED ACTION:

Staff recommends that the City Council receive the informational plan and presentation. This item is for discussion only; no City Council action is being requested at this time.

ATTACHMENT:

1. City of San Rafael 2025-2027 Three-Year Pavement Management Plan 2025-2027 THREE-YEAR

PAVEMENT MANAGEMENT PLAN
Prepared for:

City of San Rafael, California
Prepared by:

CAL Pavement Management
August 2025

PAVEMENT MANAGEMENT
City of San Rafael
Pavement Management Plan
i

TABLE OF CONTENTS
Section Page

1. EXECUTIVE SUMMARY.......................................................................................... 1

2. HISTORICAL PROJECTS........................................................................................ 2

3. PAVEMENT MANAGEMENT TECHNICAL ASSISTANCE PROGRAM (P-TAP) ...... 2

4. APPROACH............................................................................................................. 3

4.1 ROADWAY ASSESSMENTS ............................................................................. 3

4.2 PAVEMENT PRESERVATION TREATMENT SELECTION................................ 3

4.3 METHODOLOGY FOR SELECTION OF TREATMENTS.................................. 4

4.3.1 Condition, Prioritization, and ADA Considerations ..................................... 4

4.3.2 Remaining Service Life (RSL) Calculations ............................................... 5

4.3.3 Final Treatment Selection .......................................................................... 5

4.4 CONSIDERATION OF HIGHER TRAFFIC AND LOAD-BEARING
CAPACITY ......................................................................................................... 6

4.5 ECONOMIC IMPACT AND CONNECTIVITY..................................................... 6

4.6 COST-EFFECTIVENESS AND RESOURCE ALLOCATION.............................. 6

5. SUMMARY............................................................................................................... 7

6. PAVEMENT MANAGEMENT PROPOSAL............................................................... 8

7. THREE-YEAR OVERALL PLAN .............................................................................. 8 City of San Rafael
Pavement Management Plan
ii

LIST OF FIGURES
Figure
Figure 1: 2025 Pavement Management Proposal
Figure 2: 2026 Pavement Management Proposal
Figure 3: 2027 Pavement Management Proposal
Figure 4: 2025–2027 Combined Pavement Management Proposal

LIST OF TABLES
Table
Table 1: 2025 Pavement Management Plan Street List
Table 2: 2026 Pavement Management Plan Street List
Table 3: 2027 Pavement Management Plan Street List
Table 4: 2025–2027 Pavement Management Cumulative Total City of San Rafael
Pavement Management Plan
1 1. EXECUTIVE SUMMARY
The City of San Rafael manages approximately 333 lane miles of roadway. As of 2023, the City’s Pavement Condition Index (PCI) is 62, placing the network in the "Fair" category. This reflects the growing challenge of managing an aging system where many roadways show early to moderate levels of deterioration. Without timely maintenance, these conditions can quickly worsen, leading to much higher long-term repair costs.

To meet this challenge, the City has taken a proactive preservation-first approach.

With a steady annual pavement maintenance budget of approximately $1.5 million, San Rafael has treated an average of 30 lane miles per year since 2021. Prior treatments include the use of single-layer slurry seals, multi-layer systems such as double fiber micro-surfacing, and localized digouts in failed pavement areas. These preservation treatments are strategically applied to extend pavement life, address localized failures, and delay the need for costly full reconstruction.

This 3-Year Pavement Management Plan, developed in partnership with CAL Pavement Management (CPM), is based on a full network inventory and field assessment conducted in 2024 and early 2025. This included evaluation of pavement conditions, preliminary curb ramp review, and preservation treatment recommendation for each roadway segment.

The plan focuses on treatments that yield the highest return on investment for the City.

This plan provides the opportunity for the strategic planning and sequencing of work as it relates to nearby infrastructure coordination and upgrades. Specifically, by coordinating scheduled curb ramp upgrades with appropriate pavement preservation treatments, the City can utilize more effective preservation treatments while ensuring compliance with Title II of the Americans with Disability Act (ADA). Treatment selection is guided not only by pavement condition and traffic volume, but also by ADA ramp status, budget constraints, and utility coordination.

The implementation of this plan is expected to maintain the Remaining Service Life (RSL) and overall PCI of the network over the next three years. By aligning preservation strategies with ADA upgrades and long-term lifecycle planning, San Rafael is making the most of every paving dollar, protecting public investment, enhancing accessibility, and future-proofing the road network against continued decline.

City of San Rafael
Pavement Management Plan
2 2. HISTORICAL PROJECTS
The City maintains a pavement management program website1 that is updated with information about upcoming and historical program projects including the annual Pavement Maintenance Project. A brief description of historical projects follows:
• In October 2022, the City completed the 2021/22 Pavement Maintenance Project that covered 12 miles of roadways with 200,000 square yards of slurry seal. The project focused on the roadways in the Glenwood, Loch Lomond, and Dominican neighborhoods.
• In October 2022, the City completed the 2022/23 Pavement Maintenance Project that included the removal of existing striping, crack sealing, slurry sealing, and the replacement of traffic striping and new crosswalks. The project placed almost 130,000 square yards of slurry seal on 8 miles of roadways and focused on areas in the Bret Harte, Canal Waterfront and Grestle Park neighborhoods. • In December 2023, the City completed the 2023/24 North San Rafael Pavement Maintenance Project. The project applied pavement treatments through slurry seal or micro-surfacing to nearly 125,000 square yards of roadway primarily in the Terra Linda neighborhood. Treehaven Drive and a section of Culloden Park Road also received pavement maintenance as part of a partnership with the Marin Municipal Water District. The City also completed additional road maintenance in the Canal Waterfront neighborhood, including Louise Street, Larkspur Street, Alto Street, and Verdi Street. The work finished in October 2023 and completed the pavement project that began in the Canal Waterfront neighborhood in 2022.
• In October 2024, the City completed the 2024/25 Pavement Maintenance Project. The project applied pavement treatments through slurry seal or microsurfacing to approximately 187,000 square yards of roadway. The project focused on areas in West San Rafael neighborhoods.

In addition to the annual Pavement Maintenance Program, the City includes pavement improvement efforts in combination with other City-sponsored projects including those with Complete Street components or utility replacements and repairs.

3. PAVEMENT MANAGEMENT TECHNICAL ASSISTANCE PROGRAM
(P-TAP)
The Metropolitan Transportation Commission (MTC) hosts the annual Pavement Management Technical Assistance Program (P-TAP) to help the Bay Area’s cities and counties to make cost-effective improvements to streets and roads by providing grant funding for pavement assessments. The City of San Rafael received a new award of the P-TAP grant in 2025 to conduct the next cycle of pavement condition assessment through 1 https://www.cityofsanrafael.org/pavement-road-repair/ City of San Rafael
Pavement Management Plan
3 StreetSaver. These funds will allow the City to accurately determine the overall systemwide PCI and update the City’s pavement management databases for future use.

4. APPROACH
The CAL Pavement Management (CPM) team conducted a comprehensive visual inspection of approximately 98% of the City of San Rafael’s 333-lane-mile pavement network. This inspection included the identification of locations where it appears ADA curb ramps have been upgraded in recent years, as well as areas where ADA ramp improvements are still needed.

Using this field data, CPM developed this detailed three-year Pavement Management Plan. The plan prioritizes pavement preservation strategies to optimize the City’s annual $1.5 million budget and extend the overall lifespan of its roadway network.

4.1 ROADWAY ASSESSMENTS
• Data Collection:
o Visual Surveys: Conducted visual inspections to identify surface distresses o Used ArcGIS Field Maps to identify potential locations for future ADA upgrades
o Identify and record street preservation treatment recommendations • Network Improvement:
o Used Remaining Service Life (RSL) data to validate the selection of the proposed treatments

4.2 PAVEMENT PRESERVATION TREATMENT SELECTION
Pavement preservation treatments fall into two general categories: preventive maintenance and rehabilitation. Preventative maintenance is further defined as:
• Preventive Maintenance Treatments:

Crack Sealing and Filling: Cracking in pavements is inevitable, and if left untreated, can cause massive pavement failure like potholes and subbase failure.

Crack sealing is used to treat cracks greater than 1/8” and:
 Slows deterioration
 Extends pavement service life up to 5 years
 Is the lowest cost preventive maintenance treatment
 Provides the most benefit for the money spent
If left untreated, 75% of unsealed cracks develop into potholes in less than 3 years while only 1% of sealed cracks develop into potholes in the same time frame.

City of San Rafael
Pavement Management Plan
4 Slurry Seals and Micro-Surfacing: Both slurry seal and micro-surfacing are surface treatments designed to extend the life of asphalt pavements by increasing skid resistance, restricting moisture intrusion, protecting the structure from further oxidation and raveling, and restoring a uniform black appearance.

The difference between slurry and micro-surfacing is that micro-surfacing can also be used to address rutting issues. Additionally, micro-surfacing can be used for nightwork where needed.

Multi-Layer Treatments: Multi-Layer treatments use combinations of various treatments. For example, crack seal followed by a slurry/micro, or a Type III slurry/micro followed by a Type II slurry/micro.

The combination of the treatments work together to create a system that delivers a treatment greater than the sum of the individual parts. Using a well-developed multi-layer treatment, larger distresses may be addressed, and the multi-layer treatment will last much longer than the single-layer treatments.

Historically, the City of San Rafael has used the following treatments for pavement preservation treatments:
 Crack Seal
 Type II Slurry Seal
 Type II and Type III Micro-surfacing (with and without fiber) • Rehabilitation Treatments:

Mill and Fill: Milling the top layer of a distressed asphalt layer (2” to 3” depth) and replacing it with a new hot mix asphalt layer to address surface defects without full-depth reconstruction.

Localized Digouts: Digouts include the removal and replacement of damaged asphalt down to base material. The base material is then recompacted before new asphalt is placed.

The City also has used minor rehabilitation treatments, mainly mill and fill using a hot mix asphalt overlay.

4.3 METHODOLOGY FOR SELECTION OF TREATMENTS

4.3.1 Condition, Prioritization, and ADA Considerations Roadway segments were evaluated and prioritized based on:
• Current condition
• Functional importance within the transportation network • Traffic volumes
• Status of existing ADA-compliant infrastructure
City of San Rafael
Pavement Management Plan
5 Additional considerations during evaluation and prioritization included available funding and the anticipated extension in pavement life expected from proposed treatment.

The Federal Highway Administration (FHWA) has issued guidelines regarding curb ramps and pavement resurfacing - Department of Justice/Department of Transportation Joint Technical Assistance1 on the Title II of the Americans with Disabilities Act Requirements to Provide Curb Ramps when Streets, Roads, or Highways are Altered through Resurfacing | FHWA
Based on FHWA guidance, roadway locations without upgraded ADA curb ramps are limited to preservation treatments classified as “maintenance” and only include:
• Crack Sealing and Filling
• Slurry Seals
Roadway locations with compliant ADA curb ramps are allowed preservation treatments classified as “alterations” and include a broader range of treatments:
• Micro-surfacing
• Double Fiber Micro-surfacing
• Asphalt Rubber Cape Seals
• Three-Layer Systems
• Mill and Fill (2" to 3" depth)
• Digouts in isolated failed areas

4.3.2 Remaining Service Life (RSL) Calculations
Remaining Service Life (RSL) analyses were conducted to evaluate and compare the effectiveness of various treatment strategies in extending the overall lifespan of the roadway network.

These evaluations factored in initial construction costs, projected service life extension, anticipated maintenance needs, and user-related impacts such as traffic delays during construction.

4.3.3 Final Treatment Selection
The selection of treatments for each roadway segment was based on a combination of key factors, including Pavement Condition Index (PCI), usage demands, available budget, and ADA compliance requirements. Balancing these variables required a nuanced approach to ensure that limited resources were applied for the greatest longterm benefit, both structurally and in terms of community accessibility.

A comprehensive three-year treatment plan was then developed to align with the proposed funding and support the City’s long-term pavement management objectives.

City of San Rafael
Pavement Management Plan
6 4.4 CONSIDERATION OF HIGHER TRAFFIC AND LOAD-BEARING CAPACITY Arterials and collector roadways handle significantly higher traffic volumes, including heavy vehicles like trucks and buses. Heavy vehicle loads and increased traffic volumes lead to faster road deterioration. In many of these locations, multi-layer treatments are needed to help maintain the structural integrity and surface quality, thereby ensuring these vital routes remain operational. Although residential roads experience lower traffic loads and slower speeds, preservation is still beneficial to prevent age related asphalt pavement oxidation and deterioration.

4.5 ECONOMIC IMPACT AND CONNECTIVITY
Arterial and collector roadways are essential to the economic function and connectivity of San Rafael. These major corridors support high traffic volumes, including public transit and goods movement, while linking residential areas to commercial districts, schools, healthcare facilities, and industrial zones. Their condition directly affects travel time, safety, and the reliability of public services.

Poor pavement on these routes can lead to significant economic and operational impacts, including increased vehicle maintenance costs, freight delays, and reduced accessibility for emergency response. To mitigate these issues, the City is prioritizing preservation treatments that help extend pavement life while minimizing future reconstruction needs.

To maximize the impact of limited pavement funding, ADA curb ramp upgrades are being carefully coordinated with scheduled treatments. Since certain preservation methods— such as cape seal and micro-surfacing—can only be applied when ramps are compliant or upgraded concurrently, ADA accessibility has become a key factor in treatment selection and project timing. This plan supports the City’s incremental approach to sidewalk ADA upgrades within City limits, and the coordination enables the City to preserve more lane miles while ensuring compliance and accessibility.

In addition to major routes, San Rafael remains committed to maintaining its residential neighborhoods. Although local streets experience lower traffic volumes, early investment in preventive maintenance helps protect them from more serious deterioration, improves the overall network condition, and enhances quality of life for residents. By applying the right treatment at the right time, the City can maintain a safe, connected, and economically efficient roadway system for all users.

4.6 COST-EFFECTIVENESS AND RESOURCE ALLOCATION
Preservation on arterials and collectors extends the life of these more expensive and complex pavements, reducing the need for extensive rehabilitation or reconstruction.

Investing in preservation on these roads yields a higher cost benefit value and return on investment due to their critical role and higher reconstruction costs.

City of San Rafael
Pavement Management Plan
7 5. SUMMARY
The City of San Rafael’s pavement management efforts over the past several years reflect a deliberate, preservation-focused strategy aimed at maximizing the value of limited resources. With an annual budget of approximately $1.5 million, supplemented by intermittent grant funding, the City has been able to treat an average of 30 lane miles per year using cost-effective preservation techniques such as slurry seal, double fiber microsurfacing, and targeted digouts. This work has been instrumental in slowing the rate of pavement deterioration and maintaining the overall network in the “Fair” range, with a Pavement Condition Index (PCI) of 62 as of 2023.

As the City’s pavement network continues to age, maintenance becomes more expensive, and segments that cannot be addressed in a timely manner will eventually require more intensive and costly treatments. The City’s ability to apply higher-value preservation treatments, such as multi-layer systems or mill-and-fill, also hinges on the ADA compliance of curb ramps. While San Rafael has made significant progress in upgrading its ADA infrastructure, additional investment is still needed to unlock access to these more durable treatments systemwide.

Without a sustained increase in funding, the City risks falling behind, allowing the backlog of deferred maintenance to grow and forcing more streets into the category of major rehabilitation or full reconstruction. These types of repairs are exponentially more expensive and can significantly disrupt public mobility, local business activity, and emergency services.

In alignment with the City’s most recent Strategic Plan2 to execute a comprehensive pavement management program that maintains road quality at a “Fair” PCI across the roadway network, the City will continue to invest in efficiencies for restoring pavement conditions by combining other capital projects with enhanced roadway components and finding ways to increase available funding for pavement management.

This 3-Year Pavement Management Plan provides a clear, data-driven strategy for prioritizing projects, coordinating ADA and utility upgrades, and sequencing work to make the most of current resources.

Investing more today means:
• Applying treatments earlier and more frequently, when they are most costeffective • Preventing good streets from turning into costly reconstruction projects • Extending the service life of the network as a whole
• Enhancing accessibility through coordinated ADA improvements • Reducing long-term costs and future financial liability 2 https://www.cityofsanrafael.org/fy2025-2028-strategic-plan/ City of San Rafael
Pavement Management Plan
8 6. PAVEMENT MANAGEMENT PROPOSAL
The locations and specifics of the 2025 proposal, the 2026 proposal, and the 2027 proposal are shown in Figure 1 and Table 1, Figure 2 and Table 2, and Figure 3 and Table 3, respectively, at the end of this plan.

7. THREE-YEAR OVERALL PLAN
Figure 4 and Table 4 show the locations in the combined three-year plan and the cumulative totals for 2025-2027.
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2025
Pavement Management Proposal
Treatment Le end
Accelerated Slurry

PAVEMENT MANAGEMENT
Street Name Beg Location End Location Treatment Type
Alasdair Ct - Alasda Esmeyer Dr End Type 5 Fiberized Micro Ana Ct - AnaCt Elena Cir End Accelerated Slurry
Archangel Wy - Archan Del Haro Wy De Anza Wy Accelerated Slurry Arias St - AriasS Trellis Dr Las Pavadas Ave Type 5 Fiberized Micro Arias St - AriasS Elena Cir Trellis Dr Accelerated Slurry Arias St - AriasS Nova Albion Wy Elena Cir Type 5 Fiberized Micro Ayala Ct - AyalaC Arcangel Wy End Accelerated Slurry
Bamboo Te - Bamboo Montecillo Rd Las Ovejas Rd Accelerated Slurry Barberry Ln - Barber Bamboo Terr (E) Bamboo Terr (N) Accelerated Slurry Beryl Ln - BerylL Forbes Av End Type 5 Fiberized Micro
Billou St - Billou Du Bois St Bret Av Accelerated Slurry Birchwood Ct - Birchw Butternut Dr End Accelerated Slurry Butternut Dr - Butter Montecillo Rd End Accelerated Slurry Carroll Ct - Carrol Lenglen Ave End Accelerated Slurry
Cermenho Ct - Cermen Nova Albion Wy End Accelerated Slurry Corte Pacheco - CorteP Nova Albion Wy End Accelerated Slurry De Anza Wy - DeAnza Golden Hinde Blvd End Accelerated Slurry De Ford Rd - DeFoRd Fowler Ct Montecillo Rd Accelerated Slurry Del Haro Wy - DelHar Golden Hinde Blvd End Accelerated Slurry Denning Av - Dennin Tamarack Dr End Accelerated Slurry
Don Timoteo Ct - DonTim Nova Albion Wy End Accelerated Slurry Drakes Cv - Drakes Golden Hinde Blvd End Accelerated Slurry Elda Ct - EldaCt Tamarack Dr End Accelerated Slurry
Elda Dr - EldaDr Elda Dr Esmeyer Dr Accelerated Slurry
Elda Dr - EldaDr Tamarack Dr Elda Dr Accelerated Slurry Elena Ci - ElenaC Arias St (E) Ana Ct Type 5 Fiberized Micro Elena Ci - ElenaC Ana Ct Arias St (W) Accelerated Slurry El Pavo Real Ci - ElPavo Nova Albion Wy (N) Nova Albion Wy (S) Accelerated Slurry Esmeyer Dr - Esmeye Nova Albion Wy Tamarack Dr Accelerated Slurry Esmeyer Dr - Esmeye Tamarack Dr Elda Dr Type 5 Fiberized Micro Esmeyer Dr - Esmeye Elda Dr Lea Dr Accelerated Slurry
Esmeyer Dr - Esmeye Lea Dr End Accelerated Slurry
Estero Wy - Estero Nova Albion Wy End Accelerated Slurry Forbes Av - Forbes Mission Av Fairhills Dr Type 5 Fiberized Micro Forbes Av - Forbes Fairhills Dr Elizabeth Wy Type 5 Fiberized Micro Forbes Av - Forbes Elizabeth Wy End Type 5 Fiberized Micro Fowler Ct - Fowler Lea Dr 17/19 Fowler Ct Accelerated Slurry Fowler Ct - Fowler 17/19 Fowler Ct End Accelerated Slurry Golden Hinde Bl - Golden Los Ranchitos Rd Nova Albion Av Accelerated Slurry Las Pavadas Av - LasPav Montecillo Rd Manuel T Freitas Pkwy Type 5 Fiberized Micro Lea Dr - LeaDr Esmeyer Dr Fowler Ct Accelerated Slurry
Lea Dr - LeaDr Fowler Ct San Mateo Ct Accelerated Slurry Lea Dr - LeaDr San Mateo Ct Manuel T Freitas Pkwy Accelerated Slurry Le Claire Ct - LeClai Nova Albion Wy End Accelerated Slurry Lenglen Av - Lengle Trellis Dr Tamarack Dr Accelerated Slurry Luisa Ct - LuisaC Elena Cir End Accelerated Slurry
Mahogany Dr - Mahoga Butternut Dr Ends Accelerated Slurry Minor Ct - MinorC Tamarack Dr End Accelerated Slurry
Montecillo Rd - MontRd Nova Albion Wy Trellis Dr Accelerated Slurry Montecillo Rd - MontRd Trellis Dr Tamarack Dr Accelerated Slurry Montecillo Rd - MontRd Tamarack Dr Del Ford Dr Type 5 Fiberized Micro Montecillo Rd - MontRd Del Ford Dr Tarragon Dr Accelerated Slurry Montecillo Rd - MontRd Tarragon Dr Manuel Frietas Py Type 5 Fiberized Micro Nova Albion Wy - NovaAl Montecillo Rd Northgate Dr Accelerated Slurry Nova Albion Wy - NovaAl Montecillo Rd Las Gallinas Av Accelerated Slurry Pecan Dr - PecanD Butternut Dr End Type 5 Fiberized Micro Regina Wy - Regina Elda Dr Lea Dr Accelerated Slurry
Sandalwood Ct - Sandal Manuel T Freitas Pkwy End Accelerated Slurry San Mateo Ct - SanMat Lea Dr End Accelerated Slurry
Table 1: 2025 Pavement Management Plan Street List
Santa Clara Ct - SantaC Regina Wy End Accelerated Slurry Sao Augustine Wy - SaoAug Nova Albion Wy End Accelerated Slurry Sussex Ct - Sussex Golden Hinde Blvd End Accelerated Slurry Tamarack Dr - Tamara Esmeyer Dr Devon Dr Accelerated Slurry Tamarack Dr - Tamara Montecillo Rd Esmeyer Dr Accelerated Slurry Tamarack Dr - Tamara Montecillo Rd Las Pavadas Dr Type 5 Fiberized Micro Tanbark Te - Tanbar Thornwood Te Tamarack Dr Accelerated Slurry Terra Linda Dr - TerraL Esmeyer Dr End Accelerated Slurry Thyme Pl - ThymeP Tamarack Dr Thornwood Te Type 5 Fiberized Micro Trellis Dr - Trelli Arias St Esmeyer Dr Accelerated Slurry Viscaino Wy - Viscai Nova Albion Wy End Accelerated Slurry Wallace Wy - Wallac Devon Dr Tamarack Dr Accelerated Slurry Wellbrock Heights - Wellbr Trellis Dr End Accelerated Slurry Table 1: 2025 Pavement Management Plan Street List (continued) an Anselmo
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Pavement Management Proposal
Treatment Le end
Accelerated Slurry

PAVEMENT MANAGEMENT
\
Street Name Beg Location End Location Treatment Type
Biscayne Dr - Biscay Pt San Pedro Rd Partridge Dr Three Layer System Biscayne Dr - Biscay Partridge Dr Biscayne Dr Accelerated Slurry Biscayne Ct - BiscCt Biscayne Dr End Accelerated Slurry Bracken Ct - Bracke Silk Oak Cir End Accelerated Slurry Canyon Oak Dr - Canyon Old Lucas Valley Rd End Accelerated Slurry Canyon Oak Dr - Canyon Old Lucas Valley Rd Lucas Valley Rd Accelerated Slurry Castlewood Dr - Castle Fernwood Wy Knight Dr Accelerated Slurry Cedar Hill Dr - CedarH Las Gallinas Av End Accelerated Slurry Center St - Center H St J St Three Layer System
Center St - Center J St K St Three Layer System
Chapel Cove Dr - ChapDr Point San Pedro Rd End Accelerated Slurry Chateau Pl - Chatea Peacock Dr End Type 5 Fiberized Micro Cherry Hill Dr - Cherry Las Gallinas Av End Accelerated Slurry Clover Hill Ct - Clover Las Gallinas Av End Type 5 Fiberized Micro Coast Oak Wy - CoastO Cedar Hill Dr Upper Oak Dr Accelerated Slurry Corte San Benito Ct - CortCt Park Ridge Av End Type 5 Fiberized Micro Corte Almaden - CorteA Las Gallinas Av End Type 5 Fiberized Micro Corte Capistrano - CorteC Salvador Wy End Accelerated Slurry Corte Del Rey - CorteD Lucas Park Dr End Accelerated Slurry Corte La Paz - CorteL Las Gallinas Av End Type 5 Fiberized Micro Corte Miguel - CorteM Skyview Te End Accelerated Slurry Corte Verano - CorteV Lucas Park Dr End Accelerated Slurry Corte Saratoga - CortSa Las Gallinas End Type 5 Fiberized Micro Fernwood Wy - Fernwo Knight Dr End Accelerated Slurry
Flamingo Ln - Flamin Peacock Dr End Type 5 Fiberized Micro Knight Dr - Knight Pt San Pedro Rd Castlewood Dr Accelerated Slurry Knight Dr - Knight Alderwood Wy Woodside Accelerated Slurry Lagoon Rd - Lagoon Peacock Dr Riviera Dr Type 5 Fiberized Micro Lagoon Pl - LagoPl Riviera Dr End Type 5 Fiberized Micro Las Gallinas Av Sb - LasGal Montevideo Wy Skyview Te Accelerated Slurry Las Gallinas Av Sb - LasGal Skyview Te Lucas Valley Rd Accelerated Slurry Las Gallinas Av Nb - LasGNb Montevideo Wy Skyview Te Accelerated Slurry Las Gallinas Av Nb - LasGNb Skyview Te Lucas Valley Rd Accelerated Slurry Lucas Park Dr - LucasP Montevideo Wy End Accelerated Slurry Lupine Ct - Lupine Silk Oak Cir End Accelerated Slurry
Main Dr - MainDr Pt San Pedro Rd 45 Main Dr Accelerated Slurry Maple Hill Dr - MapleH Las Gallinas Av Las Gallinas Av Accelerated Slurry Mcnear Dr - McneDr Peacock Dr End Type 5 Fiberized Micro Mcnear Dr - McneDr End S. of Woodside Way N/End Accelerated Slurry Milano Pl - Milano Riviera Dr End Accelerated Slurry
Montevideo Wy - Montev Las Gallinas Av End Accelerated Slurry Nightingale Ln - Nighti Peacock Dr End Type 5 Fiberized Micro Oak Tree Ct - OakTre Upper Oak Dr End Type 5 Fiberized Micro Park Ridge Rd - ParkRi Las Gallinas Av End Type 5 Fiberized Micro Peacock Dr - PeacDr Nightingale Ln End Type 5 Fiberized Micro Peacock Dr Nb - PeacNb Pt San Pedro Rd Nightingale Ln Type 5 Fiberized Micro Peacock Ln - Peacoc Peacock Dr End Type 5 Fiberized Micro Peacock Dr Sb - PeacSb Pt San Pedro Rd Nightingale Ln Type 5 Fiberized Micro Pheasant Ct - Pheasa Biscayne Dr End Accelerated Slurry Pinecone Ct - Pineco Woodside Wy End Accelerated Slurry Pine Hill Ct - PineHi Maple Hill Dr End Type 5 Fiberized Micro Riviera Dr - RiviDr 160l N/O San Marcos Pl San Marino Dr Three Layer System Riviera Dr - RiviDr San Marino Dr End Accelerated Slurry Riviera Dr Sb - Rivier Pt San Pedro Rd 160l N/O San Marcos Pl Three Layer System Riviera Dr Nb - RiviNb Pt San Pedro Rd 160l N/O San Marcos Pl Three Layer System Riviera Manor - Rivior Biscayne Ct Riviera Dr Accelerated Slurry Riviera Pl - RiviPl Riviera Dr End Accelerated Slurry
Rosewood Ct - Rosewo Fernwood Wy End Accelerated Slurry Sagebrush Ct - Sagebr Silk Oak Cir End Accelerated Slurry Salvador Wy - Salvad Skyview Te End Accelerated Slurry
San Marino Ct - SanMCt Pt San Pedro Rd End Accelerated Slurry Table 2: 2026 Pavement Management Plan Street List
San Marino Dr - SanMDr Riviera Dr Pt San Pedro Rd Accelerated Slurry San Marcos Pl - SanMPl Riviera Dr End Type 5 Fiberized Micro Santiago Wy - Santia Las Gallinas Av End Accelerated Slurry Silk Oak Ci - SilkOa Peacock Dr (N) Peacock Dr (S) Accelerated Slurry Skyview Te - Skyvie Las Gallinas Av End Accelerated Slurry Snowberry Ct - Snowbe Silk Oak Cir End Accelerated Slurry Surfwood Ci - Surfwo Main Dr Surfwood Cir Accelerated Slurry Tan Oak Ci - TanOak Canyon Oak Dr Canyon Oak Dr Accelerated Slurry Twelveoak Hill Dr - Twelve Las Gallindas Av Cedar Hill Dr Accelerated Slurry Upper Oak Dr - UpperO Cedar Hill Dr End Accelerated Slurry Via Montebello - ViaMlo San Marino Dr End Accelerated Slurry Via Montebello E - ViaMon San Marino Dr End Accelerated Slurry W Castlewood Dr - WCastl Knight Dr 36 W Castlewood Dr Accelerated Slurry Woodrose Ct - Woodro Silk Oak Cir End Accelerated Slurry Woodside Wy - Woodsi Knight Dr Mcnear Dr Accelerated Slurry Table 2: 2026 Pavement Management Plan Street List (continued) el
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2027
Pavement Management Proposal
Treatment Le end
Accelerated Slurry

PAVEMENT MANAGEMENT
Street Name Beg Location End Location Treatment Type
Andersen Dr - AndeDr Jacoby St Central Marin Sanitary Agency Type 5 Fiberized Micro Andersen Dr - AndeDr Central Marin Sanitary Agency Sir Francis Drake Blvd East Type 5 Fiberized Micro Andersen Dr Eb - AndeEb Lindaro St Irwin St Accelerated Slurry Andersen Dr Eb - AndeEb Irwin St DuBois St Type 5 Fiberized Micro Andersen Dr Eb - AndeEb Francisco Blvd West Gary Pl Type 5 Fiberized Micro Andersen Dr Eb - AndeEb Gary Pl Jacoby St Three Layer System Andersen Dr Eb - AndeEb FBW 1096' N/O FBW Type 5 Fiberized Micro Andersen Dr Eb - AndeEb 1096' N/O FBW Dubois St Type 5 Fiberized Micro Andersen Dr Wb - Anders Lindaro St Irwin St Type 5 Fiberized Micro Andersen Dr Wb - Anders Irwin St DuBois St Type 5 Fiberized Micro Andersen Dr Wb - Anders DuBois St 1094' N/O FBW Type 5 Fiberized Micro Andersen Dr Wb - Anders 1094' N/O FBW FBW Type 5 Fiberized Micro Andersen Dr Wb - Anders Francisco Blvd West Gary Pl Type 5 Fiberized Micro Andersen Dr Wb - Anders Gary Pl Jacoby St Three Layer System Bahia Wy - BahiaW Kerner Blvd Canal St Accelerated Slurry Baypoint Dr - BaypDr Catalina Blvd Egret Vw Accelerated Slurry Baypoint Dr - BaypDr Egret Vw E End Accelerated Slurry
Baypoint Village Dr - Baypoi Catalina Blvd Baypoint Dr Accelerated Slurry Bedford Cv - Bedfor End S. of Spinnaker Point Dr N/End Accelerated Slurry Blossom Ct - BlosCt Rose St End Accelerated Slurry
Blossom Dr - BlosDr Rose St End Accelerated Slurry
Blossom Ext - Blosso Blossom Dr End Accelerated Slurry
Castro Av - Castro Bellam Blvd Francisco Blvd East Type 5 Fiberized Micro Catalina Bl - Catali Spinnaker Point Dr Baypoint Village Dr Accelerated Slurry Culver St - Culver Woodland Av End Type 5 Fiberized Micro Dodie St - DodieS Simms St End Type 5 Fiberized Micro
Du Bois St - DuBois Andersen Dr Bret Av Three Layer System Du Bois St - DuBois Bret Glenaire Dr Accelerated Slurry Glenaire Dr - Glenai Cul de Sac West of Du Bois St Cul de Sac East of Du Bois St Accelerated Slurry Golden Gate Dr - GoldDr Simms St End Type 5 Fiberized Micro Grange Wy - Grange Francisco Blvd East Kerner Blvd Accelerated Slurry Irene St - IreneS Francisco Blvd East Kerner Blvd Type 5 Fiberized Micro Jacoby St - Jacoby Andersen Dr Dump Accelerated Slurry
Kerner Bl - KernBl Piombo Pl End Accelerated Slurry
Kerner Bl - KernBl Irene St End Accelerated Slurry
Kerner Bl - KernBl Irene St Bellam Blvd Three Layer System Lincoln Av - Lincol Fifth Av Mission Av Various Overlays Lincoln Av - Lincol Mission Av Paloma Av Various Overlays Morphew St - Morphe Francisco Blvd East End Accelerated Slurry Pelican Wy - Pelica Francisco Blvd East End Accelerated Slurry Piombo Pl - Piombo Grange Wy End Accelerated Slurry
Redding Wy - Reddin DuBois St Blossom Dr Accelerated Slurry Rose St - RoseSt City limits Blossom Dr Accelerated Slurry Shoreline Py - Shorel Francisco Blvd East End Accelerated Slurry Simms St - SimmsS Andersen Dr End Type 5 Fiberized Micro Solar Ct - SolarC Redding Wy End Accelerated Slurry
Spinnaker Point Dr - Spinna Newport Way Bedford Cv Accelerated Slurry Woodland Av - WoodAv City limit Du BoisSt Type 5 Fiberized Micro Table 3: 2027 Pavement Management Plan Street List
City of San Rafael
Total Network (LM)
Remaining Service Life (RSL) Calculation explanation. 332.17 2025
Cost per SY w/ prep, 10% patch
and striping Square Yards Life extension
Remaining Sevice
Life Added
Micro Surfacing $ 7.00 - $ - 10 0.00
Various Overlays $ 45.00 - $ - 15 0.00
Type 5 Fiberized Micro $ 11.50 44,863 $ 515,923.22 12 76.47 Accelerated Slurry $ 7.00 187,998 $ 1,315,983.67 10 267.04 AR Cape Seal $ 12.00 - $ - 15 0.00
Three Layer System $ 17.00 - $ - 15 0.00
RSL Gain/Loss per Yr
Subtotal of 2025 Project $ 1,831,906.89 343.51 11.34
2026
Cost per SY w/ prep, 10% patch
and striping Square Yards Life extension
Remaining Sevice
Life Added
Micro Surfacing $ 7.00 - $ - 10 0.00
Various Overlays $ 45.00 - $ - 15 0.00
Type 5 Fiberized Micro $ 11.50 41,653 $ 479,014.61 12 71.00 Accelerated Slurry $ 7.00 188,093 $ 1,316,652.56 10 267.18 AR Cape Seal $ 12.00 - $ - 15 0.00
Three Layer System $ 17.00 28,244 $ 480,148.00 15 60.18 RSL Gain/Loss per Yr
Subtotal of 2026 Project $ 2,275,815.17 398.36 66.19
2027
Cost per SY w/ prep, 10% patch
and striping Square Yards Life extension
Remaining Sevice
Life Added
Micro Surfacing $ 7.00 - $ - 10 0.00
Various Overlays $ 45.00 7,224 $ 325,090.00 15 15.39
Type 5 Fiberized Micro $ 11.50 78,985 $ 908,331.33 12 134.63 Accelerated Slurry $ 7.00 101,484 $ 710,388.00 10 144.15 AR Cape Seal $ 12.00 - $ - 15 0.00
Three Layer System $ 17.00 16,250 $ 276,251.89 15 34.62 RSL Gain/Loss per Yr
Subtotal of 2027 Project $ 2,220,061.22 328.80 (3.37)
Total Service Life Change Over Three Year Plan 74.16
Every year, every mile of the network loses 1 mile-year of life. For the City of San Rafael that equals a loss of 332.17 LMY each and every year.

In order for the network to improve more than 332.17 LMY of life need to be added to the network each and every year.

Below are the calculations for the three years of this program showing the expected changes based on the scenarios chosen.

Table 4: 2025-2027 Pavement Management Plan Cumulative Total ____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 5.b
Meeting Date: December 1, 2025

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 2024-25 ANNUAL COMPREHENSIVE FINANCIAL REPORT; MEMORANDUM ON INTERNAL CONTROL; REPORT OF REQUIRED
COMMUNICATIONS; CHILD DEVELOPMENT PROGRAM FINANCIAL REPORT: AND

GANN APPROPRIATIONS LIMIT
RECOMMENDATION:

Staff recommends that the City Council accept the Fiscal Year (FY) 2024-25 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 2024-25. Their work was completed in accordance with generally accepted auditing standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-133, Audits of State and Local Government and Non-Profit Organizations.

The auditors also prepared a Memorandum on Internal Control to assess 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, 2026. 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, 2025, the City did not receive funds under the purview of the Transportation Development Act. Therefore, no separate audit report was completed to satisfy the requirements of the State of California pertaining to these funds.

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

Fiscal Year 2024-25 Annual 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, 2025. This opinion states that the financial statements present fairly, in all material respects, the financial position of the City. The audited results of the City’s financial activities for the fiscal year ended June 30, 2025, are presented in the attached Annual Comprehensive Financial Report (ACFR). (Attachment 1)
The report includes Government-wide financial statements with governmental activities and businesstype 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 $327.4 million, an increase of $16.5 million from the prior year's balance.

Current and other governmental assets increased by $2.5 million, mainly due to the overall results of revenues outpacing expenses for the year, increasing cash and investment balances. The $4.5 million increase in capital assets reflects project-to-date activity for major infrastructure improvements exceeding depreciation for the year. The increase of $5.1 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 $8.8 million mainly because of the decrease in pension and OPEB liabilities of $5.1 million, as well as the paydown of long-term debt.

Deferred inflows increased by $842,000, mainly due to the amortization of pension and OPEB inflows in the current year.

The Management’s Discussion and Analysis (MD&A) section begins on page five of the attached ACFR.

Increase Increase
2025 2024 (Decrease) 2025 2024 (Decrease)
Current and other assets $148,500 $146,001 $2,499 $1,525 $1,518 $7 Capital assets 324,231 319,756 4,475 14,483 14,743 (260) Total assets 472,731 465,757 6,974 16,008 16,261 (253)
Deferred outflows (Notes 9 and 11) 71,621 66,549 5,072 1,686 1,780 (94) Current and other liabilities 21,467 18,004 3,463 587 528 59 Noncurrent liabilities 171,741 180,544 (8,803) 5,437 6,239 (802) Total liabilities 193,208 198,548 (5,340) 6,024 6,767 (743) Deferred inflows (Notes 4H, 9 and 11) 23,765 22,923 842 541 571 (30) Net Position:

Financial Results: General Fund
General fund expenditures and transfers-out exceeded revenues and transfers-in by $2.5 million. Actual revenues, at $105.8 million, exceeded original budgeted revenues by $3.8 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 year 2021-22. Sales Tax and Property Tax revenues also outperformed the budget by $1.0 million. Expenditures of $99.9 million were $3.8 million less than amended budgeted expenditures of $103.8 million, mainly a result of unspent appropriations related to non-personnel expenditures, of which $2.1 million will be re-appropriated for use in the 2025-26 fiscal year. Personnel expenditures ended the year in line with the budget, as the City saw a decrease in the level of staff vacancy rates that had been experienced in previous years.

The fund balance of the General Fund as of June 30, 2025, was $33.9 million (a decrease of $2.5 million from the prior year balance): $71,000 is non-spendable, $10.1 million is committed, $18.3 million is assigned, and $5.4 million is unassigned. The committed and unassigned portions of the balance include $10.1 million and $5.1 million for emergency and cash flow reserves, respectively, which meet the minimum target reserve levels at 15% of general fund operating expenditures established by City Council policy. An additional $1.0 million of the assigned fund balance represents the City’s capital (infrastructure) reserve.

Memorandum on Internal Control
As a component of the annual financial audit, the auditors are required to 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 Controls issued with the audit of the financial statements for the fiscal year ended June 30, 2025, does not identify any material weaknesses or significant deficiencies. However, the memorandum notes one “Other Matters” that were identified during the audit, and is summarized as follows:
• Finding 2025-1 – Purchasing Policy Compliance – Informal Bidding Documentation.

This finding resulted in a recommendation from the independent auditor that the City establish or reinforce procedures to ensure that all departments consistently retain documentation supporting Adopted Budget Revised Budget Actual Variance
Revenues $101,929 $101,929 $105,773 $3,844
Transfers in 2,508 2,508 1,959 (549)
Total resources 104,438 104,438 107,732 3,295
Expenditures 103,185 $103,758 99,974 (3,784)
Operating transfers out 10,259 10,259 10,259 -
Capital transfers out -
Total uses 113,443 114,017 110,233 (3,784)
Net Results ($9,006) ($9,579) ($2,500) $7,078
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2025 (in thousands)
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
informal bidding processes in accordance with the Purchasing Policy.

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

Management acknowledges the importance of reinforcing procedures to ensure compliance with the City’s Purchasing Policy, including Informal Bidding requirements. To this end, in conjunction with an update to the City’s Purchasing Policy, approved by the City Council on May 19, 2025, management has also updated the Purchasing Procedures guidelines provided to City staff. These procedures are being further updated to highlight the requirement for the purchasing agent to retain a record of informal bids received, pursuant to Section 2.55.260 of the Purchasing Policy.

In addition, with the City’s transition to a new Enterprise Resource Planning (ERP) Financial system, backup documentation related to all purchases and contract awards is now uploaded and verified at the time of setting up a Purchase Order or Contract. Note, given that Purchase Orders are only required for purchases greater than $10,000, staff will be reviewing the current threshold requirement ($5,000) related to informal bidding procedures.

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. (Attachment 3)
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 ended June 30, 2025, the Child Development Program recorded revenues of $4.19 million, supporting expenditures of $3.83 million. The program ended the year with a fund balance of $1.59 million. The audit report provides an unqualified opinion and includes no findings or recommendations. (Attachment 4)
Gann Appropriations Limit
The Agreed-Upon Procedures report for the Gann Appropriations Limit required three procedures to be performed, including testing the accuracy of the calculations and comparison of information presented.

No exceptions were noted in these procedures for compliance with the Proposition 111 fiscal year 2025- 26 Appropriations Limit calculation. (Attachment 5)
FISCAL IMPACT:

No fiscal impact occurs from the City Council’s acceptance of these reports. The fiscal year 2024-25 Annual Comprehensive Financial Report and related reports are presented as the actual results of the City and related entities’ financial activities for the year.

RECOMMENDATION:

Staff recommends that the City Council accept the reports as presented.

ATTACHMENTS:

1. FY 2024-25 Comprehensive Annual Financial Report

2. FY 2024-25 Memorandum of Internal Controls

3. FY 2024-25 Required Communications

4. FY 2024-25 Child Development Program Financial Report

5. FY 2024-25 Draft Gann Appropriations Limit

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDING JUNE 30, 2025
Aerial View, San Rafael, California

SAN RAFAEL

THE CITY WITH A MISSION

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2025
City of San Rafael, California
1400 Fifth Avenue
San Rafael, California 94901
Prepared by the Finance Department of the City of San Rafael

Bay View Trail, San Rafael

INTRODUCTORY SECTION

CITY OF SAN RAFAEL, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2025
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, 2025
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, 2025
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 Taxpayers – 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, 2025
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 20, 2025
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, 2025, 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, 2025.

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

City Management is responsible for both the data accuracy and the completeness and fairness of the presentation of this report. To the best of our knowledge and belief, the data presented is accurate in all material respects and is reported in a manner that presents fairly the financial position and results of operations of the various funds and component units of the City.

Further, the Annual Report is prepared in accordance with procedures and policies set by the Government Finance Officers Association. The analysis of the financial condition and the result of operations can be found in the financial section of the Management’s Discussion and Analysis document.

The Annual Report is organized into three sections:

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

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

3. Statistical section, which is unaudited, includes selected financial and demographic information, presented on a multi-year basis. Generally, ten-year data is presented for expenditures, revenues, assessed valuation for local properties and construction activity. v
CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG

Kate Colin, Mayor • 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 square miles of water and tidelands. San Rafael's population on January 1, 2025, was 59,885.

Downtown San Rafael is the location of many community events, including Second Friday Art Walks, Mill Valley Film Festival, West End Block Party, Summer 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 Al Boro Community Center is the hub of numerous community, sports and cultural events in East San Rafael.

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 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 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.

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.

In 2023, the City Council adopted a set of two-year Goals, Objectives, and Strategic Priorities covering fiscal years 2023-24 and 2024-25. The City Council recently adopted an updated three-year Strategic Plan which includes the following priority focus areas:
 Economic Development and Neighborhood Vitality
 Mobility and Infrastructure
 Sustainability and Resilience
 Housing and Homelessness
 Quality of Life: Safety and Wellbeing
 Equity, Access, Belonging and Opportunity for All
 High Performing Government: Innovative, Inclusive, Efficient, and Accessible 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 exceed expectations as real GDP growth is estimated at 3.8% for the second quarter of 2025. Overall, economists are projecting a modest growth environment with AI-related capital expenditures providing a backstop, however, a slowing labor market is expected to put pressure on the unemployment rate while inflation remains above the Federal Open Market Committee’s 2% target. Despite the headwinds, overall economic activity has remained resilient and appears to be maintaining a positive trajectory.
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 Marin County enters the final quarter of 2025 in a late-stage recovery phase, characterized by strong consumer spending, rising home values, and a robust healthcare and tech sector.

However, challenges persist, including labor shortages, particularly in eldercare and specialized services, and the risk of business relocation due to high operating costs.

Commercial vacancy rates remain stable, and retail activity is buoyed by tourism and local demand.

Locally, a robust and diverse economic base continues to provide tax revenues supporting a full range of municipal services. The City is focused on maintaining long-term fiscal stability through prudent fiscal management, including maintaining healthy reserves to mitigate the impacts of economic uncertainty as well developing a strategy to seek support for renewal of expiring voter-approved tax measures.

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, the Marin Small Business Development Center, and the Marin Economic Forum.
 Marin County’s top employers include Kaiser Permanente, the County of Marin, the City of San Rafael, San Rafael School Districts, The Permanente Medical Group, Managed Health Network, The Pasha Group, Marin County Office of Education, Dominican University, Ghilotti Bros., Inc, 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, 2025, for San Rafael were: 1. Autos and Transportation (29%), 2. State and County Pools, which mainly reflects e-commerce activity (20%), and 3. Building and Construction (19%).  Several hotels and motels support tourism activity, led by a combined 621 rooms in the AC Marriot, Embassy Suites, and Four Points Sheraton properties, with the latter being in the process of a significant upgrade. Citywide, the total number of hotel rooms is 927. Transient Occupancy Tax revenues for 2024-25 totaled $3.6 million.  Establishing and maintaining affordable residential housing for sale and lease continues to be a challenge both in San Rafael and throughout Marin County. The median rent for an apartment in San Rafael is $2,975. The median home value in San Rafael is $1,325,000.
 Based on tracking data, special events including the Mill Valley Film Festival boost downtown visitation from baseline activity by approximately 112% to 153%.

Recent growth and economic vibrancy:
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  Development activity continues to show strong momentum, primarily driven by large multi-family in-fill housing projects. Significant projects are currently under construction, have recently been entitled, or have planning applications under review.  Construction is also underway on a project 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 recently approved 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.
 A planning application has been approved for 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.  A planning application is under review which proposes to redevelop a vacant 4-story office building and construct a 17-story building with 200 residential units and 5,000 square feet of commercial space at 700 Irwin Street.
 The City adopted its first ever citywide Economic Development Strategic Plan in early 2023 and is actively engaged in actionable tasks that provide measurable benefits and value driving enhanced economic vitality, including the launch of the San Rafael-Go one-stop shop for resources supporting current and prospective businesses.
 The Business Improvement District sponsors several community engagement programs including block parties and business attraction activities that draw foot traffic to our downtown, including the popular Thursday Night Downtown Farmers Market and Second Friday Art Walk.

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

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 xi

SAN RAFAEL

THE CITY WITH A MISSION
City Council and Staff
As of November 20, 2025
City Council
Kate Colin, Mayor
Maribeth Bushey, Vice Mayor
Eli Hill, 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
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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, 2024
Executive Director/CEO
xv
e

Downtown Farmer’s Market, 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, 2025, 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, 2025, 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 94S23
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 20, 2025, 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 20, 2025
4 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
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, 2025. 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, 2025, by $338.5 million.
• Activities – During the fiscal year, the City’s total revenues of $150.7 million were greater than expenses of $133.8 million for governmental and business-type activities. • Changes in Net Position – The City’s total net position increased by $17.0 million in fiscal year 2024-2025 as compared to the net position of the previous year. Net position of governmental activities increased by $16.5 million, while net position of the business-type activities decreased by $426 thousand.

Fund Level:
• Governmental Funds – As of the close of fiscal year 2024-2025, the City’s governmental funds reported combined ending fund balances of $87.5 million, a decrease of $5.6 million primarily due to the utilization of fund balance accumulated in the prior year where fund balance saw an increase of $14.7 million. Of this total amount, $71 thousand is non-spendable, $48.9 million is restricted, $14.8 million is committed, $18.5 million is assigned, and $5.4 million is unassigned. The committed and unrestricted portions of the balance include $10.1 million and $5.1 million representing the General Fund emergency reserve (10%) and reserve for economic uncertainty (5%), respectively, consistent with the City’s reserve policy. An additional $1.0 million of the assigned fund balance represents the City’s capital (infrastructure) reserve. • Governmental fund revenues totaled $144.2 million, a decrease of $0.8 million from the those of the previous fiscal year. The decrease is mainly a result of a $1.3 million decline in charges for services as the City assessed Traffic Mitigation fees and Construction Impact fees for large projects in the prior year. These fees can fluctuate materially from year to year depending on development projects. • Governmental fund expenditures increased by $11.4 million to $147.6 million, from $136.3 million in the prior year. The increase primarily resulted from increased personnel costs stemming from new labor agreements with all of the City’s bargaining groups as well as lower vacancy rates across the organization, offset by a modest reduction in capital outlay expenditures. • Enterprise fund net position increased $426 thousand to $11.1 million as the City’s parking program revenues increased by $210 thousand, and expenditures ended the fiscal year roughly $300 thousand below prior year results.

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, 2025
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, 2025
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 30 through 34 of this report. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements on pages 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, 2025
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. For the fiscal year ended June 30, 2025, the net position of the City was $327.4 million from Governmental Activities and $11.1 million from Business-type Activities, for a total of $338.5 million. This represents an increase of $17.0 million from the prior year’s net position. 8 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2025, and 2024:

The City’s governmental activities net position increased by $16.5 million during fiscal year 2024-2025. Current and other governmental assets increased by $2.5 million mainly due to overall results of revenues outpacing expenses for the year increasing cash and investment balances. The $4.5 million increase in capital assets reflects project-to-date activity for major infrastructure improvements exceeding depreciation for the year. The increase of $5.1 million in deferred outflows is primarily a result of the impact of pension-related adjustments to be recognized in future years.

The increase of $3.4 million in current and other liabilities is primarily due to the increase in accounts payable of $2.9 million, simply reflecting the timing of payments on current year programs and projects. Noncurrent governmental liabilities decreased by $8.8 million mainly as a result of the decrease in Pension and OPEB liabilities of $5.1 million as well as the paydown of long-term debt. Deferred inflows increased by $842 thousand mainly attributable to actuarial pension adjustments to be recognized in future periods.

The net position in business-type activities reflects the fiscal activity of the Parking Services program and increased by $426 thousand from the previous year as revenues reflected a modest increase and exceeded expenses which reflected a decrease in comparison to the prior year, primarily as a result of personnel costs attributable to vacant positions. Current and other assets increased by $7 thousand as operations were largely break-even for the period.

Capital assets decreased by $260 thousand as the result of current year depreciation. Noncurrent liabilities decreased by $802 thousand mainly due to a reduction in net pension and OPEB liabilities and paydown of long-term debt.

Net investment in capital assets 276,991 268,520 8,471 11,424 11,354 70 Restricted 49,053 48,596 457 0
Unrestricted 1,335 (6,281) 7,616 (295) (651) 356
Total net position $327,379 $310,835 $16,544 $11,129 $10,703 $426 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, 2025
At June 30, 2025, City’s total net position increased to $338.5 million. The largest portion of total net position, in the amount of $288.4 million, consisted of the City’s investment in capital assets net of related debt. This component represents the total amount of funds required to acquire capital assets less any related debt used for such acquisition that is still outstanding. The City uses these assets to provide services to residents. The capital assets of the City are not sources of income for repayment of debt as most assets are not revenue generating and generally are not liquidated to repay debt. Therefore, debt service payments are funded from other sources available to the City.

A portion of the City's total net position, $49.1 million, is subject to external restrictions, and their use is determined by those restrictions whether legal or by covenant. In addition, the unrestricted $1.0 million represents the extent to which total net assets exceed the net investment in capital assets and restricted net position. 6/30/2025 6/30/2024
Invested in Capital Assets (net) $288,415 $279,874 $8,541 Restricted 49,053 48,596 457
Unrestricted 1,040 (6,932) 7,972
Total Net Position: $338,508 $321,538 $16,970
Increase/
(Decrease)
Summary of Net Position
(in thousands)
10 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Statement of Activities - Governmental
The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ended June 30, 2025, and 2024:

Increase
2025 2024 (Decrease)

REVENUES
Program revenues:

Charges for services $21,036 $23,170 ($2,134)
Operating grants and contributions 9,970 6,531 3,439
Capital grants and contributions 3,220 8,181 (4,961)
Total program revenues 34,225 37,882 (3,657)
General revenues:

Property taxes 36,504 35,636 868
Sales taxes 45,905 44,554 1,351
Paramedic tax 5,415 5,316 99
Transient occupancy tax 3,583 3,593 (10)
Franchise tax 4,762 4,582 180
Business license tax 2,776 2,792 (16)
Other taxes 3,050 2,937 113
Investment earnings 6,635 5,284 1,351
Gain from sale of capital assets 192 42 150
Miscellaneous 2,926 3,241 (315)
Total general revenues 111,746 107,977 3,769
TOTAL REVENUES 145,972 145,859 113

EXPENSES
General government 17,615 14,902 2,713
Public safety 64,084 57,400 6,684
Public works and parks 27,724 24,392 3,332
Community/economic development 6,009 6,043 (35)
Culture and recreation 12,996 12,724 272
Interest on long-term debt 1,574 1,656 (82)
TOTAL EXPENSES 130,002 117,117 12,885

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 15,970 28,742 (12,772)
Transfers in 574 582 (8)
Total Other Financing Sources (Uses) 574 582 (8)
Net Change in Net Position 16,544 29,324 (12,780)
Beginning Net Position 310,835 281,511 29,324
Ending Net Position, June 30 $327,379 $310,835 $16,544
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, 2025
The City’s governmental activities net position increased by $16.5 million during fiscal year 2024-2025. Total revenues remained relatively flat year-over year, with a $3.7 million decline in program revenues offset by a $3.7 million increase in tax general revenues. Within program revenues, charges for services decreased $2.1 million mainly as a result of development fees that drove a large increase in the prior year. Operating grants increased $3.4 million reflecting increased support for programs such as homelessness and sustainability. Capital grants and contributions declined by $5.0 million, which reflects the decline in support received for major capital improvement projects. Within the general revenues category, sales taxes increased by about $1.3 million while property taxes increased by less than $1.0 million, reflecting a cooling off of the housing market in comparison to prior years. The large increase in investment earnings of $1.3 million was a result of the favorable interest rate climate as well as having a larger investable balance stemming from the prior year’s favorable results.

Overall operating expenses reflect an increase of $12.8 million for the year mainly resulting from increased personnel costs stemming from new labor agreements with the City’s bargaining groups as well as a decrease in the number of vacancies across the organization.

The following graph shows governmental revenues by source:
12 Capital grants and
contributions, 2.2196
Revenues by Source
Governmental Activities
Taxes, 69.8796
Charges for services,

14.4196
_ Operating grants and
contributions, 6.8396
Miscellaneous, 6.6896

CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Total expenses for governmental activities were $130.0 million (including interest on long-term debt of $1.6 million).

Functional expenses for the year ended June 30, 2025, were as follows:

The following chart represents the extent to which program revenues offset functional expenses, by category:
• Those who directly benefited from programs contributed $21.0 million in charges for services. • A total of $13.2 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 $95.8 million.

Function Amount Percent of Total
General government 17,615 13.6%
Public safety 64,084 49.3%
Public works and parks 27,724 21.3%
Community development 6,009 4.6%
Culture and recreation 12,996 10.0%
Interest on debt 1,574 1.2%
Total expenses $130,002 100%
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
Public Safety
(in thousands)
Public Works and
Parks
■ Program Revenues ■ Expenses
Community
Development
Culture and
Recreation

CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Statement of Activities – Business-Type
The net position for business-type activities increased from the prior year by $426 thousand as revenues increased by $212 thousand, exceeding year-end expenditures which fell by $304 thousand in comparison to the prior year.

Parking services is the City’s only business-type activity with income derived from program revenues of $4.8 million.

Program revenues include parking meter coin income of $1.8 million and parking garage hourly and monthly parking income of $0.9 million. Revenues also include parking and non-vehicle code fines totaling $2.4 million. Total expenses for parking services were $3.8 million and transfers out to general fund and non-major governmental fund for support totaled $574 thousand during the fiscal year 2024-2025.

Increase
2025 2024 (Decrease)
Revenues
Program revenues:

Charges for services $4,762 $4,553 $209
Total program revenues 4,762 4,553 209
General revenues:

Investment Income 12 9 3
Total general revenues 12 9 3
TOTAL REVENUES 4,774 4,562 212
Expenses
General government 4,078 3,774 (304)
TOTAL EXPENSES 4,078 3,774 (304)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 484 1,000 516

OTHER FINANCING SOURCES (USES)
Transfers out (574) (582) 8
Total Other Financing sources (uses) (574) (582) 8
Net Change in Net Position (98) 426 524
Net Position, Beginning 10,801 10,703 (98)
Net Position, Ending $11,129 10,703 $426
Summary of Changes in Net Position
For the periods ended June 30, 2025 and 2024 (in thousands) Business-Type Activities
14 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025

FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS
Governmental Funds
Fund Balance Classifications
Fund balances are classified in five categories: non-spendable, 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, 2025, the City reported a combined ending fund balance of $87.5 million for all governmental funds (a decrease of $5.6 million from the prior year): $71 thousand is non-spendable, $48.9 million is restricted, $14.8 million is committed, $18.5 million is assigned, and $5.4 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, 2025, was $33.9 million (a decrease of $2.5 million from the prior year balance): $71 thousand is non-spendable, $10.1 million is committed, $18.3 million is assigned and $5.4 million is unassigned. The committed and unassigned portions of the balance include $10.1 million and $5.1 million for emergency and cash flow reserves, respectively. An additional $1.0 million of the assigned fund balance represents the City’s capital (infrastructure) reserve.

The original adopted General Fund budget projected total revenue of $101.9 million and transfers-in of $2.5 million for total resources of $104.4 million. This budget appropriated expenditures of $103.2 million and transfers-out of $10.3 million for total appropriations of $113.5 million.

Actual revenues, at $105.8 million, exceeded original budgeted revenues by $3.8 million. The largest increase is attributed to investment gains as interest rates increased City’s investable balance increased following favorable results of the prior year. Sales Tax and Property Tax revenues also outperformed the budget by $1.0 million. Sales taxes showed resiliency against perceived economic headwinds, especially toward the latter half of the year, whereas property taxes benefited from larger than expected excess ERAF disbursements and supplemental tax. Expenditures of $99.9 million were $3.8 million less than amended budgeted expenditures of $103.8 million, mainly a result of unspent appropriations related to non-personnel expenditures, of which $2.1 million will be re-appropriated for use in the 2025-2026 fiscal year. Personnel expenditures were in line with budget as the City saw a decrease in level of staff vacancy rates that have been experienced in previous years.

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. Recent accounting guidance related to these transactions has yet to be incorporated into the budgeting process.
15 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
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 $5.9 million to $6.6 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 2024-2025 totaled $1.4 million. Capital outlay for the year of $97 thousand 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 of $6.6 million 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 $1.9 million in fiscal year 2024- 2025 resulting in an increase in fund balance from $13.4 million to $15.3 million. The activities for the year were all planned and approved project work.

Expenditures during fiscal year 2024-2025 totaled $6.5 million. In addition to routine street-related maintenance of $3.2 million, major expenditures included $530 thousand for B Street at Woodland Culvert Repairs, $450 thousand for third street rehabilitation project cost, and $400 thousand for the roundabout at Manuel T. Freitas.

Total revenues of $7.9 million were down about $4.7 million from the prior year mainly due to a reduction in intergovernmental transfers and reimbursements related to the third street rehabilitation project that was completed the prior year.

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 $744 thousand was mainly expended for remaining costs related to Fire Stations 54 and 55.

Non-major Governmental Funds – The City’s non-major funds are presented in the basic financial statements in the aggregate. At June 30, 2025, non-major funds had a total fund balance of $28.4 million, a $5.5 million decrease over that of the previous year. Significant contributors to the overall fund balance decrease included the Capital Improvement Fund ($3.5 million) and the Library Fund ($2.6 million) attributable to capital project expenditures.

The largest fund balance increase, $1.5 million, was recorded in the Measure C Wildfire Prevention Fund, with $3.9 million in revenues against $2.4 million in expenditures.

Adopted Budget Revised Budget Actual
Revenues $101,929 $101,929 $105,773
Transfers in 2,508 2,508 1,959
Total resources 104,438 104,438 107,732
Expenditures 103,185 $103,758 99,974
Operating transfers out 10,259 10,259 10,259
Capital transfers out -
Total uses 113,443 114,017 110,233
Net Results ($9,006) ($9,579) ($2,500)
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2025 (in thousands)
16 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Of the ending total non-major fund balances of $28.4 million: $23.7 million (84%) is legally restricted for specific purposes by external funding source providers, $4.7 million (16%) is committed for special purposes by the City Council, $126 thousand (less than 1%) is assigned, and ($70,059) thousand (less than 1%) is unassigned. 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 24, the City’s enterprise fund net position increased by $426 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 was recorded at $4.7 million, while enterprise fund operating expenses were $3.6 million in fiscal year 2024-2025. Parking operations largely remained steady with results of previous years with modest increases to revenues and a decrease in expenditures that can be attributed to personnel vacancies.

The City’s Internal Service Funds are also reported in this Proprietary Fund classification. In fiscal year 2024-2025, 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 increased by $5.9 million compared to the prior year. Net investment in capital assets increased by $464 thousand, while unrestricted fund balance increased by $5.4 million. The increase in capital assets resulted primarily from vehicle purchases, offset by depreciation of existing capital assets. The increase in unrestricted fund balance is primarily the result of transfers to the vehicle replacement fund, liability insurance fund, and equipment replacement fund from prior year operating results in an effort to partially address shortfalls in those areas.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for its governmental activities as of June 30, 2025, amounts to $324.2 million, net of accumulated depreciation of $231.8 million. This investment in capital assets includes land, buildings, improvements, machinery and equipment, infrastructure, right-to-use lease assets, and construction in progress.

Infrastructure assets are items that are normally immovable and of value only to the City such as roads, bridges, streets and sidewalks, drainage systems, lighting systems, and similar items. The addition to the City’s investment in capital assets for the current fiscal year was $14.3 million, offset by accumulated depreciation of $9.8 million.

Additions to capital assets during fiscal year 2024-2025 included:
• Machinery and Equipment: Vehicles totaling $2.4 million • Infrastructure: $13.5 million
• Pickleweed Park Field Renovation - $5.6 million
• Downtown Carnegie Library Renovation - $2.6 million
• San Quentin Pump Station Reconstructions - $1.3 million • B Street at Woodland Culvert Repairs- $530 thousand
• Peacock Gap Park Playground- $498 thousand
• Other - $2.4 million
• Right-to-use Subscription Assets: Permitting software totaling $55 thousand 17 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
A comparison of the City’s Capital Assets for the fiscal years ending June 30, 2025, and 2024 is presented below:

Additional information on the City’s capital assets can be found in Note 5 on pages 62 through 64 of this report. 2025 2024
Governmental Activities
Land $84,108 $84,108
Construction in progress 31,866 28,785
Land improvements 10,852 10,852
Buildings and structures 120,986 119,722
Machinery and equipment 24,469 23,445
Infrastructure 274,042 264,925
Intangible right-to-use leased building 5,476 5,476
Intangible right-to-use leased equipment 1,115 1,226
Intangible right-to-use subscription 3,139 3,252
Less accumulated depreciation (231,822) (222,034)
Subtotal Governmental Activities 324,231 319,757
Business-type Activities
Land 8,621 8,621
Buildings and structures 10,736 10,736
Machinery and equipment 968 968
Less accumulated depreciation (5,842) (5,582)
Subtotal Business-type Activities 14,483 14,743
Total Capital Assets $338,715 $334,500
Summary of Capital Assets
(in thousands)
18 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
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, 2025, and 2024 were as follows:
2025 2024
Governmental Activity Debt:
2018 Authority Lease Revenue Bond $38,756 $41,909
2010 Taxable Pension Obligation Bonds 640 1,240
PG & E Efficiency Note Payable 230 381
PG & E City Hall Efficiency Note Payable 100 121
Subtotal Governmental Activity Debt 39,726 43,651
Business-Type Activity Debt:

PG & E Parking Lot Lighting Retrofit Note Payable
2012 Authority Lease Revenue Refunding Bonds 3,059 3,389 Subtotal Business-Type Activity Debt 3,059 3,389
Total Long-Term Obligations $42,785 $47,040
Summary of Outstanding Long-Term Debt
(in thousands)
19 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
ECONOMIC CLIMATE AND NEXT YEAR’S BUDGET
After several years of global economic turbulence, from the pandemic recovery to ongoing inflationary pressures, the global economy is now entering a period of cautious stabilization. Inflation has moderated in most developed economies but remains above long-term targets. As a result, global growth is expected to remain subdued, with the International Monetary Fund projecting growth of approximately 3.1% in 2026, a marginal decline from 2025’s 3.2%.

Growth in emerging markets continues to outpace that of advanced economies, driven by manufacturing expansion and infrastructure investment.

Nationally, the U.S. economy continues to adjust to a “higher-for-longer” interest rate environment. Inflation has slowed but remains sticky, particularly in housing and services. Consumer spending, which has underpinned economic resilience through much of the past two years, is beginning to show signs of fatigue. Business investment remains steady but cautious as firms navigate higher financing costs and lingering uncertainty surrounding labor markets and global trade. The Federal Reserve is expected to begin modest rate cuts in late 2025 if inflation continues to ease toward its 2% target.

In California, national trends persist with some regional nuances. The state’s housing market remains constrained, with affordability continuing to be a major barrier for both homeowners and renters. While the tech sector has stabilized after widespread restructuring in recent years, job growth is being driven increasingly by healthcare, clean energy, and advanced manufacturing. California’s unemployment rate remains slightly above the national average, but productivity gains in key industries, such as biotech and artificial intelligence, position the state for renewed growth as inflationary pressures subside.

Marin County remains relatively insulated from broader economic fluctuations due to its high median income, strong local employment, and diversified tax base. The county’s unemployment rate continues to trend below both state and national levels, supported by employment in healthcare, education, and professional services. However, persistent housing affordability challenges and a limited labor supply continue to constrain growth potential. Consumer spending in Marin remains steady, reflecting the region’s high-income stability, though discretionary spending is expected to cool modestly in the coming year.

In San Rafael, economic indicators reflect a transition toward steadier, moderate growth. The city’s economy remains anchored by its role as the county’s commercial and administrative hub, with major employment in healthcare, education, retail, and public administration. Nonetheless, challenges such as housing affordability, transportation connectivity, and shifts in the retail landscape continue to present long-term planning considerations.

The City enters the new fiscal year with a sound fiscal position and significant capital projects underway. Prudent financial management in prior years has bolstered reserves, providing flexibility amid rising operational and construction costs. As inflation continues to ease and economic conditions stabilize, maintaining a balanced approach to project prioritization and long-term sustainability will be key to ensuring San Rafael’s continued economic resilience.

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, 2025
Component
Primary Government Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
ASSETS
Cash and investments available for operations (Note 2) $124,055,570 $312,002 $124,367,572 $41,982,433 Restricted cash and investments (Note 2) 760,089 760,089 Receivables:

Accounts, net 3,033,864 1,212,598 4,246,462 1,649,483
Intergovernmental 10,571,348 10,571,348
Grants 808,290 808,290
Interest 882,821 882,821
Loans (Note 4A) 3,699,917 3,699,917
Long-term receivable from San Rafael Sanitation District (Note 4G) 2,023,239 2,023,239 Leases receivable (Note 4H) 360,417 360,417
Prepaid expenses and others 2,304,292 2,304,292 97,238
Capital assets (Note 5):

Nondepreciable 115,973,571 8,620,853 124,594,424 11,804,711 Depreciable, net 208,257,875 5,862,591 214,120,466 67,107,884 Total Assets 472,731,293 16,008,044 488,739,337 122,641,749

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension (Note 9) 65,683,064 1,588,276 67,271,340 Deferred outflows related to OPEB (Note 11) 5,937,697 97,529 6,035,226 Total Deferred Outflows of Resources 71,620,761 1,685,805 73,306,566

LIABILITIES
Accounts payable 11,847,538 180,545 12,028,083 1,285,154 Developer and other deposits payable 509,171 509,171
Interest payable 26,141 26,141
Unearned revenue 555,058 26,232 581,290
Claims payable (Note 13):

Due in one year 3,666,214 3,666,214
Due in more than one year 11,122,685 11,122,685
Compensated absences (Note 1L):

Due in one year 639,494 18,707 658,201
Due in more than one year 4,476,455 130,945 4,607,400
Long-term debt (Note 6):

Due in one year 3,684,623 335,000 4,019,623
Due in more than one year 36,041,452 2,724,378 38,765,830 Lease liabilities (Note 14):

Due in one year 169,137 169,137
Due in more than one year 6,055,521 6,055,521
Subscription liabilities (Note 14):

Due in one year 395,270 395,270
Due in more than one year 1,534,570 1,534,570
2,023,239
Net OPEB liability, due in more than one year (Note 11) 17,860,029 293,359 18,153,388 Net Pension liability, due in more than one year (Note 9) 94,650,674 2,288,740 96,939,414 Total Liabilities 193,207,891 6,024,047 199,231,938 3,308,393

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension (Note 9) 20,059,681 485,061 20,544,742 Deferred inflows related to OPEB (Note 11) 3,383,426 55,574 3,439,000 Deferred inflows related to leases receivable (Note 4H) 322,172 322,172 Total Deferred Inflows of Resources 23,765,279 540,635 24,305,914 NET POSITION (Note 8):

Net investment in capital assets 276,990,873 11,424,066 288,414,939 78,412,120 Restricted for:

Special revenue projects:

Housing and street improvements 23,892,663 23,892,663
Stormwater 3,409,198 3,409,198
Emergency medical services 3,674,088 3,674,088
Other 14,128,896 14,128,896
Capital projects 3,947,924 3,947,924
Total Restricted Net Position 49,052,769 49,052,769
Unrestricted 1,335,242 (294,899) 1,040,343 40,921,236
Total Net Position $327,378,884 $11,129,167 $338,508,051 $119,333,356 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, 2025
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary Government
Governmental Activities:

General government $17,615,468 $110,112 $2,989,641
Public safety 64,083,535 7,642,292 2,835,919
Public works and parks 27,724,431 2,952,012 3,407,856 $3,219,570 Community development 6,008,500 4,695,585
Culture and recreation 12,995,897 5,635,593 736,737
Interest on long-term debt 1,573,951
Total Governmental Activities 130,001,782 21,035,594 9,970,153 3,219,570 Business-type Activities:

Parking services 3,774,044 4,761,985
Total Business-type Activities 3,774,044 4,761,985
Total Primary Government $133,775,826 $25,797,579 $9,970,153 $3,219,570 Component Unit
San Rafael Sanitation District $16,260,424 $18,877,412 $5,694 $73,061 General revenues:

Taxes:

Property
Sales:

Sales and Use
Measure E three quarter-cents sales
Measure R quarter-cent sales
Paramedic
Transient occupancy
Franchise
Business license
Other
Investment earnings
Gain from sale of capital assets
Miscellaneous
Transfers (Note 3A)
Total general revenues and transfers
Change in Net Position
Net Position, beginning of year
Net Position, end of year
See accompanying notes to financial statements
24 Component
Primary Government Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
($14,515,715) ($14,515,715)
(53,605,324) (53,605,324)
(18,144,993) (18,144,993)
(1,312,915) (1,312,915)
(6,623,567) (6,623,567)
(1,573,951) (1,573,951)
(95,776,465) (95,776,465)
$987,941 987,941
987,941 987,941
(95,776,465) 987,941 (94,788,524)
$2,695,743
36,503,556 36,503,556 2,442,140
26,299,762 26,299,762
14,739,752 14,739,752
4,865,497 4,865,497
5,414,694 5,414,694
3,583,020 3,583,020
4,761,953 4,761,953
2,775,503 2,775,503
3,049,543 3,049,543
6,635,209 12,119 6,647,328 1,898,333
191,839 191,839
2,925,920 2,925,920 110,928
573,993 (573,993)
112,320,241 (561,874) 111,758,367 4,451,401
16,543,776 426,067 16,969,843 7,147,144
310,835,108 10,703,100 321,538,208 112,186,212
$327,378,884 $11,129,167 $338,508,051 $119,333,356
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 2024-2025:

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, 2025
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) $28,558,899 $4,795,326 $16,604,879 $3,321,176 $27,247,954 $80,528,234 Restricted cash and investments (Note 2) 662,355 7,636 90,098 760,089 Receivables:

Accounts 1,583,708 1,446,374 3,030,082
Intergovernmental 9,794,025 411,936 365,387 10,571,348
Grants 21,157 787,133 808,290
Interest 882,821 882,821
Loans (Note 4A) 399 1,839,685 1,859,833 3,699,917
Leases (Note 4H) 15,912 344,505 360,417
Prepaids 70,759 70,759
Total Assets $41,590,035 $6,635,011 $17,016,815 $3,328,812 $32,141,284 $100,711,957

LIABILITIES
Accounts payable $6,095,624 $59,329 $1,723,554 $2,738,296 $10,616,803 Deposits payable 8,094 102,288 110,382
Developer deposits payable 395,154 3,635 398,789
Unearned revenue 555,058 555,058
Total Liabilities 6,498,872 59,329 1,723,554 3,399,277 11,681,032

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 1,162,311 1,162,311
Related to leases (Note 4H) 14,033 308,139 322,172
Total Deferred Inflows of Resources 1,176,344 308,139 1,484,483 Fund Balances (Note 8):

Nonspendable 70,759 70,759
Restricted 6,575,682 15,293,261 $3,328,812 23,700,869 48,898,624 Committed 10,125,000 4,676,853 14,801,853
Assigned 18,341,628 126,205 18,467,833
Unassigned 5,377,432 (70,059) 5,307,373
Total Fund Balances 33,914,819 6,575,682 15,293,261 3,328,812 28,433,868 87,546,442 Total Liabilities, Deferred Inflows of Resources
and Fund Balances $41,590,035 $6,635,011 $17,016,815 $3,328,812 $32,141,284 $100,711,957 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, 2025
Total fund balances reported on the governmental funds balance sheet $87,546,442 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. 310,107,347 Internal service funds are used by management to charge the cost of management of 43,085,161
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. (47,096,618)
Compensated absences (5,115,949)
Unavailable revenue 1,162,311
Long-term receivable from San Rafael Sanitation District 2,023,239 Deferred outflows related to pension 65,683,064
Net pension liability (94,650,674)
Deferred inflows related to pension (20,059,681)
Deferred outflows related to OPEB 5,937,697
Deferred inflows related to OPEB (3,383,426)
Net OPEB liability (17,860,029)
Net position of governmental activities $327,378,884
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, 2025
Traffic and Essential Other Total
Housing Facilities Capital Governmental Governmental
General Mitigation Gas Tax Projects Fund Funds Funds

REVENUES
Taxes and special assessments $91,003,535 $9,955,612 $100,959,147 Licenses and permits 3,346,342 3,346,342
Fines and forfeitures 297,212 297,212
Use of money and properties 2,306,492 $211,234 $570,211 $126,997 1,289,284 4,504,218 Intergovernmental 4,729,694 989,165 5,277,328 5,906,227 16,902,414 Charges for services 3,163,591 179,608 2,061,008 10,778,136 16,182,343 Other revenue 926,142 3,470 53,246 1,037,065 2,019,923
Total Revenues 105,773,008 1,383,477 7,961,793 126,997 28,966,324 144,211,599

EXPENDITURES
Current:

General government 16,477,488 2,679,388 19,156,876
Public safety 53,289,499 13,811,575 67,101,074
Public works and parks 15,462,738 149,245 4,876,064 1,296,156 21,784,203 Community development 5,909,774 225,334 228,701 6,363,809 Culture and recreation 3,006,272 10,216,030 13,222,302
Capital outlay 97,393 1,655,297 744,275 11,671,194 14,168,159 Debt service:

Principal 3,794,498 3,794,498
Interest and fiscal charges 2,034,131 2,034,131
Total Expenditures 99,974,400 471,972 6,531,361 744,275 39,903,044 147,625,052

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 5,798,608 911,505 1,430,432 (617,278) (10,936,720) (3,413,453)

OTHER FINANCING SOURCES (USES)
Transfers in (Note 3A) 1,959,435 1,250,000 353,500 5,624,543 9,187,478 Transfers out (Note 3A) (10,258,500) (250,000) (760,000) (151,129) (11,419,629) Total Other Financing Sources (Uses) (8,299,065) (250,000) 490,000 353,500 5,473,414 (2,232,151) Net Change in Fund Balances (2,500,457) 661,505 1,920,432 (263,778) (5,463,306) (5,645,604) FUND BALANCES, BEGINNING OF YEAR 36,415,276 5,914,177 13,372,829 3,592,590 33,897,174 93,192,046 FUND BALANCES, END OF YEAR $33,914,819 $6,575,682 $15,293,261 $3,328,812 $28,433,868 $87,546,442 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, 2025
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS ($5,645,604) 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 14,117,197 Retirement of capital assets is deducted from fund balance (66,757) Depreciation and amortization expense is deducted from fund balance (9,746,254) (Depreciation and amortization expense is net of internal service fund depreciation and amortization of $1,769,951, which has already been allocated to serviced funds).

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

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

Repayments of long-term debt principal 3,396,351
Amortized bond premium expense is added back to fund balance 507,943 Repayments of lease principal 180,733
Repayments of subscription principal 217,414
Accrual of Non-Current Items
The amount below included in the Statement of Activities does not require the use of current financial Compensated absences (681,457)
Unavailable revenue (4,585)
Long-term receivable from San Rafael Sanitation District (439,830) 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. 6,198,454 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. 2,608,984 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. 5,901,187 Change in Net Position of Governmental Activities $16,543,776 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, 2025
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds
ASSETS
Current Assets:

Cash and investments available for operations (Note 2) $312,002 $43,527,336 Receivable:

Accounts, net 1,212,598 3,782
Grants
Prepaid expense 2,233,533
Total Current Assets 1,524,600 45,764,651
Noncurrent Assets:

Capital assets (Note 5):

Nondepreciable 8,620,853 169,757
Depreciable, net 5,862,591 13,954,342
Total Noncurrent Assets 14,483,444 14,124,099
Total Assets 16,008,044 59,888,750

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension (Note 9) 1,588,276 Deferred outflows related to OPEB (Note 11) 97,529
Total Deferred Outflows of Resources 1,685,805

LIABILITIES
Current Liabilities:

Accounts payable 180,545 1,230,735
Interest payable 26,141
Unearned revenue 26,232
Compensated absences, due in one year (Note 1L) 18,707
Claims payable, due in one year (Note 13) 3,666,214
Long-term debt, due in one year (Note 6) 335,000 21,755 Subscription liabilities, due in one year (Note 14) 289,912 Total Current Liabilities 586,625 5,208,616
Noncurrent Liabilities:

Compensated absences (Note 1L) 130,945
Claims payable (Note 13) 11,122,685
Long-term debt (Note 6) 2,724,378 77,953
Net OPEB liability (Note 11) 293,359
Net pension liability (Note 9) 2,288,740
Subscription liabilities (Note 14) 394,335
Total Noncurrent Liabilities 5,437,422 11,594,973
Total Liabilities 6,024,047 16,803,589

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension (Note 9) 485,061
Deferred inflows related to OPEB (Note 11) 55,574
Total Deferred Inflows of Resources 540,635
NET POSITION (Note 8):

Net investment in capital assets 11,424,066 13,340,144
Unrestricted (294,899) 29,745,017
Total Net Position $11,129,167 $43,085,161
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, 2025
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds

OPERATING REVENUES
Charges for current services $2,372,588 $21,056,978
Other operating revenues 2,389,397 1,810,990
Total Operating Revenues 4,761,985 22,867,968

OPERATING EXPENSES
Personnel 1,667,926 4,813,596
Insurance premiums and claims 9,531,787
Maintenance and repairs 160,259 348,459
Depreciation and amortization expense (Note 5) 259,369 1,769,951 General and administrative 1,562,370 5,032,219
Total Operating Expenses 3,649,924 21,496,012
Operating Income 1,112,061 1,371,956

NONOPERATING REVENUES (EXPENSES)
Investment income 12,119 1,572,712
Miscellaneous revenue 6,299
Interest expense (124,120) (47,763)
Gain on sale of capital assets 191,839
Total Nonoperating Revenues (Expenses) (112,001) 1,723,087 Income Before Transfers 1,000,060 3,095,043

TRANSFERS
Transfers in (Note 3A) 3,500,000
Transfers out (Note 3A) (573,993) (693,856)
Net transfers (573,993) 2,806,144
Change in Net Position 426,067 5,901,187
NET POSITION, BEGINNING OF YEAR 10,703,100 37,183,974
NET POSITION, END OF YEAR $11,129,167 $43,085,161
See accompanying notes to financial statements
35 CITY OF SAN RAFAEL

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2025
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $4,636,527 $21,853,233
Cash payments to suppliers for goods and services (1,672,215) (18,965,740) Cash payments to employees for salaries and benefits (2,069,978) (1,547,267) Other revenues 1,810,990
Cash Flows from Operating Activities 894,334 3,151,216

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Miscellaneous revenues 6,299
Interfund revenues 3,500,000
Interfund payments (573,993) (1,088,034)
Cash Flows from Noncapital
Financing Activities (573,993) 2,418,265

CASH FLOWS FROM CAPITAL

AND RELATED FINANCING ACTIVITIES
Principal payments on revenue bonds and note payable (330,000) (21,755) Principal payments on subscription liability (271,026)
Interest expenses and fiscal charges (126,076) (47,763) Acquisition of capital assets (1,941,308)
Proceeds from sale of property 191,839
Cash Flows from Capital and
Related Financing Activities (456,076) (2,090,013)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 12,119 1,572,712
Cash Flows from Investing Activities 12,119 1,572,712
NET CHANGE IN CASH AND CASH EQUIVALENTS (123,616) 5,052,180 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 435,618 38,475,156 CASH AND CASH EQUIVALENTS, END OF YEAR $312,002 $43,527,336 Reconciliation of operating income to net cash
provided by operating activities:

Operating income $1,112,061 $1,371,956
Adjustments to reconcile operating income
to cash flows from operating activities:

Depreciation and amortization 259,369 1,769,951
Net change in assets and liabilities:

Accounts receivable (130,216) 795,255
Grant receivable 1,000
Prepaids (1,372,480)
OPEB-related items (42,854)
Accounts payable 50,414 298,497
Unearned revenue 4,758
Compensated absence obligations 10,993
Pension-related items (370,191)
Claims payable 287,037
Net Cash Provided by Operating Activities $894,334 $3,151,216 NON-CASH TRANSACTIONS:

Retirement of capital assets
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) $33,117 $255,411 Receivables:

Taxes 1,272
Total Assets 33,117 256,683

LIABILITIES
Interest payable 15,636
Total Liabilities 15,636

NET POSITION
Restricted for:

Bondholders 33,117 241,047
Total Net Position $33,117 $241,047
See accompanying notes to financial statements

CITY OF SAN RAFAEL

FIDUCIARY FUNDS

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2025
38 Successor Agency
to the Pt. San Pedro
Redevelopment Road Assessment
Agency District
Private-Purpose Custodial
Trust Fund Fund

ADDITIONS
Property taxes $159,034
Total Additions 159,034

DEDUCTIONS
General government $5,870 8,033
Payments to bondholders 93,200
Interest expense 47,723
Total Deductions 5,870 148,956
Change in Net Position (5,870) 10,078

NET POSITION
Beginning of year 38,987 230,969
End of year $33,117 $241,047

CITY OF SAN RAFAEL

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2025
See accompanying notes to financial statements
39 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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, 2025
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, 2025
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, 2025
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, 2025
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, 2025, the following expenditures exceeded the budgeted appropriations:

Expenditures
Exceeded Budget
Recreation Revolving Special Revenue Fund $13,803
Public Safety Special Revenue Fund 17,142
The above expenditures exceeded the budgeted appropriations, however, there were sufficient revenues to cover the excess expenditures during the fiscal year in the Public Safety Special Revenue Fund. Revenues were not sufficient to cover the excess expenditures of $13,803 during the fiscal year. Furthermore, the Recreation Revolving Special Revenue Fund has a fund balance deficit of $70,059 at June 30, 2025. See further discussion in Note 8D.

45 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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, 2025
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.

Proprietary fund liabilities are recorded within their respective funds.

The changes in compensated absences as of June 30, 2025 were as follows:

Governmental Business-Type
Activities Activities Total
Beginning Balance $4,434,492 $138,659 $4,573,151
Net change 681,457 10,993 692,450
Ending Balance $5,115,949 $149,652 $5,265,601
Current Portion $639,494 $18,707 $658,201

47 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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, 2025
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, 2025
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, 2025
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, 2025
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
GASB 101 – Compensated Absences - In June 2022, GASB issued Statement No. 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. The provisions of this Statement were implemented during fiscal year 2025. The implementation of this statement did not have a material effect on the financial statements.

GASB 102 – Certain Risk Disclosures - In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. 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. The provisions of this Statement were implemented during fiscal year 2025. The implementation of this statement 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, 2025
NOTE 2 – CASH AND INVESTMENTS (Continued)
B. Classification
Cash and investments as of June 30, 2025, 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 $124,367,572 Restricted cash and investments 760,089
Total Primary Government Cash and Investments 125,127,661 San Rafael Sanitation District (Component Unit):

Cash and investments available for operations 41,982,433 Total San Rafael Sanitation District Cash and Investments 41,982,433 Statement of Fiduciary Net Position (separate statement):

Successor Agency to the Redevelopment Agency Private Purpose Trust Fund:

Cash available for operations 33,117
Pt. San Pedro Road Assessment District Custodial Fund:

Cash available for operations 255,411
Total Fiduciary Fund Cash and Investments 288,528
Total Cash and Investments $167,398,622
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, 2025
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 TypeMaturity 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, 2025
NOTE 2 – CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged as reserves to be used if there are insufficient resources to meet debt repayment obligations. The California Government Code requires these funds to be invested in accordance with City ordinance bond indentures or State statute. The table below identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements:

Maximum
Maturity
U.S. Treasury Obligations 5 years to no maximum N/A No Limit U.S. Agency Securities 3 - 5 years N/A No Limit
U.S. Agency Instruments 5 years N/A No Limit
Repurchase Agreements 1 year A-1 No Limit
Bankers’ Acceptances 360 days Highest Category Rating No Limit Money Market 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, 2025
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, 2025:
(a) (b) (c)
Level 1 Level 2 Level 3 Total
City:

Money Market Funds $972,264 $972,264
U.S. Treasury Notes $12,473,566 5,546,263 18,019,829
Federal Agency Securities and Instruments 12,000,492 12,000,492 Medium-Term Corporate Notes 18,793,711 18,793,711
Investment in Pt. San Pedro Bonds $923,367 (d) 923,367
$12,473,566 $37,312,730 $923,367 50,709,663
Investments Exempt from Fair Value Hierarchy:

Local Agency Investment Fund 65,659,129
Marin County Investment Pool 90,098
Total Investments 116,458,890
Cash in banks and on hand 8,668,771
Total City Cash and Investments 125,127,661
Fiduciary:

Cash in banks 288,528
Total Fiduciary Cash 288,528
Total City and Fiduciary Cash and Investments 125,416,189 San Rafael Sanitation District:

Marin County Investment Pool 41,982,433
41,982,433
Total Cash and Investments $167,398,622
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, 2025
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 $972,264 $972,264
Local Agency Investment Fund 65,659,129 65,659,129
Marin County Investment Pool 90,098 90,098
U.S. Treasury Notes 5,946,130 $12,073,699 18,019,829
Federal Agency Securities and Instruments 2,826,624 9,173,868 12,000,492 Medium-Term Corporate Notes 2,457,289 16,336,422 18,793,711 Investment in Pt. San Pedro Bonds 923,367 923,367
Total Investments $77,951,534 $38,507,356 116,458,890
Cash in banks and on hand 8,668,771
Total City Cash and Investments 125,127,661
Fiduciary:

Cash in banks 288,528
Total Fiduciary Cash 288,528
Total City and Fiduciary Cash and Investments 125,416,189 San Rafael Sanitation District:

Marin County Investment Pool 41,982,433
Total District's Cash and Investments 41,982,433
Total Cash and Investments $167,398,622
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. 57 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 2 – CASH AND INVESTMENTS (Continued)
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, 2025, these investments matured in an average of 248 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 45 days at June 30, 2025.

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.

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, 2025, 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 $972,264 1% AAAm
Marin County Investment Pool 90,098 < 1% Aaa/AAA
U.S. Treasury Notes 18,019,829 15% AAA
Federal Agency Securities and Instruments 12,000,492 10% AAA Medium-Term Corporate Notes 18,793,711 16% AAA,AA2,AA3,A1,A2,A3 Local Agency Investment Fund 65,659,129 56% Not Rated
Investment in Pt. San Pedro Bonds 923,367 1% Not Rated
Total City Investments 116,458,890
San Rafael Sanitation District:

Marin County Investment Pool 41,982,433 AAA/V1
Total Investments $158,441,323
H. Concentration Risk
There were no 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 at June 30, 2025.
58 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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, 2025, were as follows:

From Fund To Fund Amount
General Fund Gas Tax Special Revenue Fund $1,250,000 (A) Essential Facilities Capital Projects Fund (B) 353,500
Non-Major Governmental Funds (B) (C) 5,155,000
Internal Service Funds (B) 3,500,000
Traffic and Housing Mitigation Fund Non-Major Governmental Funds 250,000 (C) Gas Tax Special Revenue Fund General Fund 650,000 (C)
Non-Major Governmental Funds 110,000 (A)
Parking Services Enterprise Fund General Fund 477,993 (B) Non-Major Governmental Funds 96,000 (B)
Internal Service Funds General Fund 680,313 (D)
Non-Major Governmental Funds 13,543 (B)
Non-Major Governmental Funds General Fund 151,129 (C)
$12,687,478
(A) Transfers for street maintenance support and administrative costs. (B) Transfers for administrative costs, grant matching, recreation, and other program support. (D) Transfers for debt service.
(C) Transfers for project support.

NOTE 4 – LOANS AND LEASES RECEIVABLE
A. Summary of Loans Receivable
The City has identified the portion of fund balance represented by these loans as nonspendable or restricted as discussed in Note 8. As of June 30, 2025, these loans consisted of the following:

Employee Loans $399
Centertown Associates 944,751
3301 Kerner Loan 915,082
One "H" Street Associates 22,860
Vivalon Loan 1,816,825
Total $3,699,917
59 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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, 2025, the balance of the employee loans receivable was $399.

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, 2025, the balance of the loan including principal and accrued interest was $944,751.

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, 2025, the balance of the loan and accrued interest was $915,082.

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, 2033. As of June 30, 2025, the balance of this loan was $22,860.
60 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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 includes 66 one-bedroom and studio units for older adults and approximately 20% of the units are supportive housing. The construction financing was converted to permanent financing on October 28, 2024.

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 loan was converted to a permanent loan on October 28, 2024.

The note is secured by a Deed of Trust. As of June 30, 2025, the balance of the loan and accrued interest was $1,816,825.

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, 2025, is $2,023,239, and is composed of the following:

Defined benefit pension liability allocation $1,639,039 Other post-employment benefit liability allocation 384,200 Total long-term receivable from San Rafael Sanitation District $2,023,239 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, 2025, these leases and related deferred inflows of resources consisted of the following:

Deferred
Leases Inflows of
Receivable Resources
Marin History Museum $15,912 $14,033
Yacht Club 112,992 124,865
Trans Bay Cable 219,640 195,147
Total $360,417 $322,172
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 $1,176 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.
61 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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 $3,011 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 $7,464 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, 2024 Additions Retirements Transfers June 30, 2025 Governmental Activities
Capital assets not being depreciated:

Land $84,107,659 $84,107,659
Construction in progress 28,784,981 $13,070,903 ($66,058) ($9,923,914) 31,865,912 Total capital assets not being depreciated 112,892,640 13,070,903 (66,058) (9,923,914) 115,973,571 Capital assets being depreciated:

Land improvements 10,851,579 10,851,579
Buildings and structures 119,721,666 15,260 1,249,203 120,986,129 Machinery and equipment 23,444,726 2,474,687 (1,450,047) 24,469,366 Infrastructure 264,924,783 443,003 8,674,711 274,042,497 Intangible right-to-use leased building 5,476,219 5,476,219 Intangible right-to-use leased equipment 1,226,361 (111,583) 1,114,778 Intangible right-to-use subscription asset 3,252,382 54,652 (167,652) 3,139,382 Total capital assets being depreciated 428,897,716 2,987,602 (1,729,282) 9,923,914 440,079,950 Less accumulated depreciation and amortization for:

Land improvements (8,754,187) (171,595) (8,925,782)
Buildings and structures (32,759,025) (2,821,371) (35,580,396) Machinery and equipment (16,445,823) (1,370,099) 1,449,348 (16,366,574) Infrastructure (162,748,302) (6,419,061) (169,167,363)
Intangible right-to-use leased building (469,390) (156,463) (625,853) Intangible right-to-use leased equipment (308,915) (176,180) 111,583 (373,512) Intangible right-to-use subscription asset (548,811) (401,436) 167,652 (782,595) Total accumulated depreciation and amortization (222,034,453) (11,516,205) 1,728,583 (231,822,075) Total net capital assets being depreciated and amortized 206,863,263 (8,528,603) (699) 9,923,914 208,257,875 Total governmental activity capital assets $319,755,903 $4,542,300 ($66,757) $324,231,446

62 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 5 – CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2024 Additions Retirements June 30, 2025
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 10,736,254 10,736,254
Machinery and equipment 968,100 968,100
Total capital assets being depreciated 11,704,354 11,704,354 Less accumulated depreciation for:

Buildings and structures (4,740,861) ($226,051) (4,966,912) Machinery and equipment (841,533) (33,318) (874,851)
Total accumulated depreciation (5,582,394) (259,369) (5,841,763) Total net capital assets being depreciated 6,121,960 (259,369) 5,862,591 Total business-type activity capital assets $14,742,813 ($259,369) $14,483,444 Balance Balance
June 30, 2024 Additions Retirements Transfers June 30, 2025 San Rafael Sanitation District
Capital assets not being depreciated:

Land and easements $115,329 $115,329
Construction in progress 10,629,533 $15,490,695 ($14,430,846) 11,689,382 Total capital assets not being depreciated 10,744,862 15,490,695 (14,430,846) 11,804,711 Capital assets being depreciated:

Subsurface lines 50,648,903 117,270 14,275,892 65,042,065 Sewage collection facilities 47,568,274 ($178,133) 154,954 47,545,095 General plant and administration 2,153,320 (120,751) 2,032,569 Total capital assets being depreciated 100,370,497 117,270 (298,884) 14,430,846 114,619,729 Less accumulated depreciation for:

Subsurface lines (15,329,319) (664,946) (15,994,265)
Sewage collection facilities (28,339,510) (1,652,611) 178,133 (29,813,988) General plant and administration (1,718,429) (105,914) 120,751 (1,703,592) Total accumulated depreciation (45,387,258) (2,423,471) 298,884 (47,511,845) Total net capital assets being depreciated 54,983,239 (2,306,201) 14,430,846 67,107,884 Total District's capital assets $65,728,101 $13,184,494 $78,912,595 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. 63 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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 $254,894
Public safety 1,290,193
Public works and parks 7,485,295
Community development 34,860
Culture and recreation 681,012
Internal service funds 1,769,951
Total Governmental Activities $11,516,205
Business-type Activities
Parking services $259,369
Total Business-type Activities $259,369
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 businesstype activities long-term liabilities for the fiscal year ended June 30, 2025, are as follows:

Balance Balance Due Within
June 30, 2024 Additions Reductions June 30, 2025 One Year Governmental Activities - Long-Term Debt:

Bonds $43,149,435 ($3,752,943) $39,396,492 $3,510,000
Direct Borrowings502,689 (173,106) 329,583 174,623
Total Governmental Activities - Long-Term Debt $43,652,124 ($3,926,049) $39,726,075 $3,684,623 Governmental Activities - Other Long-Term Liabilities:

Compensated Absences $4,434,492 $681,457 $5,115,949 $639,494 Net Pension Liability 96,649,584 (1,998,910) 94,650,674 Net OPEB Liability 20,513,064 (2,653,035) 17,860,029
Claims Payable 14,501,862 2,764,021 (2,476,984) 14,788,899 3,666,214 Lease Liabilities 6,405,391 (180,733) 6,224,658 169,137 Subscription Liabilities 2,418,280 (488,440) 1,929,840 395,270 Total Governmental Activities - Other Long-Term
Liabilities $144,922,673 $3,445,478 ($7,798,102) $140,570,049 $4,870,115 Balance Balance Due Within
June 30, 2024 Additions Reductions June 30, 2025 One Year Business-type Activities - Long-Term Debt:

Bonds $3,388,653 ($329,275) $3,059,378 $335,000
Total Business-type Activities - Long-Term Debt $3,388,653 ($329,275) $3,059,378 $335,000 Business-type Activities - Other Long-Term Liabilities:

Compensated Absences $138,659 $10,993 $149,652 $18,707
Net Pension Liability 2,722,631 ($433,891) 2,288,740
Net OPEB Liability 336,936 (43,577) 293,359
Total Business-type Activities - Other Long-Term
Liabilities $3,198,226 $10,993 ($477,468) $2,731,751 $18,707 64 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 6 – LONG-TERM DEBT (Continued)
A summary of governmental and business-type activities long-term bonds and notes payable for the fiscal year ended June 30, 2025, are as follows:

Authorized Balance Balance Current
and Issued June 30, 2024 Retirements June 30, 2025 Portion Governmental Activities Bonds:
2018 Authority Lease Revenue Bonds

4.00%-5.00%, due 6/1/2034 $45,485,000 $36,830,000 $2,645,000 $34,185,000 $2,870,000 Add: unamortized bond premium 5,079,435 507,943 4,571,492 2010 Taxable Pension Obligation Bonds

6.00%-6.25%, due 7/1/2025 4,490,000 1,240,000 600,000 640,000 640,000 Total Governmental Activities Bonds 43,149,435 3,752,943 39,396,492 3,510,000 Governmental Activities - Direct Borrowings:

PG & E CEC Efficiency Note Payable

1.00%, due 12/22/2026 1,104,799 381,226 151,351 229,875 152,868 PG & E Energy Efficient Lighting Project Note Payable

0.00% due 1/20/30 174,036 121,463 21,755 99,708 21,755
Total Governmental Activities - Direct Borrowings 502,689 173,106 329,583 174,623 Total Governmental Activities Debt $43,652,124 $3,926,049 $39,726,075 $3,684,623 Business-type Activities:
2012 Authority Lease Revenue Refunding Bonds

2.00-4.00%, due 4/1/2033 $6,750,000 $3,395,000 $330,000 $3,065,000 $335,000 Less: unamortized bond discount (6,347) (725) (5,622)
Total Business-type Activities Bonds 3,388,653 329,275 3,059,378 335,000 Total Business-type Activities $3,388,653 $329,275 $3,059,378 $335,000 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.

65 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 6 – LONG-TERM DEBT (Continued)
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.

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.
66 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 6 – LONG-TERM DEBT (Continued)
D. 2012 Authority Lease Revenue Refunding Bonds
On August 7, 2012, the Authority issued 2012 Authority Lease Revenue Refunding Bonds in the amount of $6,750,000 bearing interest at rates from 2.00% to 4.00%. The proceeds of the Series 2012 Bonds were used to repay the Authority’s 2003 Authority Lease Revenue Bonds that financed the construction of the 3rd and C Street parking structure and achieved lower interest rates and lower annual debt service payments. The refunding resulted in a net present value savings to the City in debt service of $670,496. 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.

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 6 – LONG-TERM DEBT (Continued)
E. Future Debt Service
Future debt service requirements, including interest, at June 30, 2025, are as follows:

Governmental Activities
For the Year Bonds Direct Borrowings
Ended June 30 Principal Interest Principal Interest
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 3,895,000 1,062,000 12,688
2031-2034 17,345,000 2,149,250
Totals 34,825,000 $9,159,506 329,583 $2,305
Reconciliation of Long-term debt:

Add: unamortized premium 4,571,492
$39,396,492 $329,583
For the Year Bonds
Ended June 30 Principal Interest
2026 $335,000 $113,562
2027 350,000 102,256
2028 360,000 90,006
2029 375,000 77,406
2030 390,000 63,812
2031-2033 1,255,000 100,588
Totals $3,065,000 $547,630
Reconciliation of Long-term debt:

Less: unamortized discount ($5,622)
$3,059,378
Business-type Activities
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, 2025, the balances of these Districts’ outstanding debt were as follows:

Project Original Outstanding
Description Amount June 30, 2025
Pt. San Pedro Road Median Landscaping Pt. San Pedro Road Assessment District Limited Obligation Bonds-2012 Median Landscaping $1,750,000 $893,500 68 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 7 – DEBT WITHOUT CITY COMMITMENT
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, 2025, the balance of this issuers’ outstanding debt was as follows:

Project Original Outstanding
Description Amount June 30, 2025
San Rafael Redevelopment Agency 162-175 Belvedere
Multifamily Housing Revenue Bonds-2000A Apartments $3,590,529 $665,144 California Statewide Communities
Development Authority Revenue Bonds-2001 St. Marks School 5,605,000 1,280,000 San Rafael Redevelopment Agency San Rafael Commons
Multifamily Housing Revenue Bonds-2002 Apartments 6,100,000 3,425,000 San Rafael Redevelopment Agency
Multifamily Housing Revenue Bonds-2007 Series A Martinelli House Project 6,000,000 1,475,459 Multifamily Housing Revenue Bonds-2007 Series B Martinelli House 1,000,000 60,467 Total $22,295,529 $6,906,070
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.

69 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
B. Fund Balance
In the fund financial statements, fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities. The City’s fund balances are classified in accordance with 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.

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.

70 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
Detailed classifications of the City’s fund balances, as of June 30, 2025, are below (continued on next page):

Capital Project Funds
General Fund
Traffic and
Housing
Mitigation Gas Tax
Essential Facilities
Capital Projects Fund
Other
Governmental
Funds Total
Fund balances:

Nonspendable:

Prepaids $70,759 $70,759
Total Nonspendable 70,759 70,759
Restricted:

Assessment District capital projects $306,452 306,452
Baypoint Lagoons Assessment District 238,736 238,736
Bedroom tax capital projects 158,515 158,515
Business Improvement District
Childcare 1,589,704 1,589,704
Development services 515,080 515,080
Emergency medical services 3,674,088 3,674,088
Gas tax $15,293,261 15,293,261
Grants 642,002 642,002
Household hazmat facility 55,251 55,251
Library 2,619,889 2,619,889
Library assessment 895,216 895,216
Loch Lomond Assessment District 883,515 883,515
Loch Lomond Assessment District #2 1,271,346 1,271,346
Low and Moderate Income Housing 2,023,720 2,023,720
Measure A - Open Space 971,575 971,575
Measure C - Wildfire Prevention 2,846,520 2,846,520
Measure E - Public Safety Facility $3,328,812 3,328,812 Measure G - Cannabis 889,625 889,625
Parkland dedication 380,990 380,990
Public safety 49,568 49,568
Pt. San Pedro- Maintenance Portion 279,879 279,879
Storm water 3,409,198 3,409,198
Traffic and housing mitigation $6,575,682 6,575,682
Total Restricted 6,575,682 15,293,261 3,328,812 23,700,869 48,898,624 Committed:

Capital improvement capital projects 4,648,913 4,648,913 Emergency reserves 10,125,000 10,125,000
Park capital projects 27,940 27,940
Total Committed 10,125,000 4,676,853 14,801,853
Assigned:

Contractual commitments 1,379,814 1,379,814
One-time funds allocated to projects 13,752,273 13,752,273 Infrastructure Reserve 1,000,000 1,000,000
General plan / long range planning 2,209,541 2,209,541
Open space capital projects 126,205 126,205
Total Assigned 18,341,628 126,205 18,467,833
Unassigned:

Economic uncertainty reserve 5,063,000 5,063,000
Unassigned fund balance 314,432 (70,059) 244,373
Total Unassigned 5,377,432 (70,059) 5,307,373
Total Fund Balances $33,914,819 $6,575,682 $15,293,261 $3,328,812 $28,433,868 $87,546,442 Special Revenue Funds
71 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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 $15,188,000 at June 30, 2025, and the balance of the reserve, included in the General Fund’s committed and unassigned fund balances were $10,125,000 and $5,063,000, 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, 2025.

The General Plan/Long Range Planning reserve included in the General Fund’s assigned fund balance was $2,209,541 at June 30, 2025, 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, 2025
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
D. Net Position Deficit

At June 30, 2025, the Recreation Revolving Special Revenue Fund had a deficit net position of $70,059 due to expenditure increases outpacing revenue growth. The City plans to evaluate the performance of the fund through the first half of the following fiscal year and propose any necessary augmentations at that time.

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, 2025
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.
74 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 – PENSION PLAN (Continued)
The City contribution rates for the year ended June 30, 2025 were as follows:

Employer Employee
Contribution Rate Contribution Rate Benefit Basis
City of San Rafael Misc Tier 1 46.80% 10.95% - 17.20% 2.7% @ 55 Highest year City of San Rafael Misc Tier 2 46.45% 7.83% -12.35% 2.0% @ 55 Average three highest years City of San Rafael Fire Tier 1 73.41% 14.23% -20.48% 3.0% @ 55 Highest year City of San Rafael Fire Tier 2 72.57% 12.59% -18.50% 3.0% @ 55 Average three highest years City of San Rafael Safety Police Tier 1 72.89% 14.23% -20.48% 3.0% @ 55 Highest year City of San Rafael Safety Police Tier 2 74.17% 12.59% -18.50% 3.0% @ 55 Average three highest years PEPRA Misc 40.94% 9.65% 2.0% @ 62 Average three highest years PEPRA Safety 64.07% 15.75% 2.7% @ 57 Average three highest years These rates were determined by MCERA, based on the actuarial valuation dated June 30, 2023.

The actual rate of return on investments during that year was 7.0% 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 $23,969,930 for the year ended June 30, 2025, based on a total payroll of $56,125,593, of which $41,605,711 represented the basis for the plan contributions. Of the total payroll subject to plan contributions, $1,776,253 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 (7 years remaining as of June 30, 2023), except for the additional UAL attributable to the outstanding unfunded actuarial loss from 2009, which is being amortized over a separate closed period (currently 15 years as of June 30, 2023).

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, 2025, based on the following methodology: The City’s NPL as of June 30, 2023, was updated to the measurement date of June 30, 2024 using the actual City’s plan assets as of June 30, 2024, and estimating the change in the City’s liabilities between July 1, 2023, and June 30, 2024. 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 $96,939,414 or 39.52% of the total MCERA NPL of $245,301,971 (reference MCERA’s GASB 67/68 report as of June 30, 2024).

This compares to the previous year’s net pension liability of $99,372,216 or 34.41% of the total MCERA net pension liability of $288,821,503 (reference MCERA’s GASB 67/68 report as of June 30, 2023).
75 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 – PENSION PLAN (Continued)
In addition to the reporting of the NPL as of June 30, 2025, the City reported deferred inflows of $20,544,742 and deferred outflows of $67,271,340 as of the measurement date June 30, 2024.

The City reported post-measurement date outflows of $23,969,930 from actual fiscal year 2024- 2025 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.

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 $50,212,816. After allocations to the San Rafael Sanitation District, the net impact on the City’s Statement of Net Position was $48,573,777.

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 $23,969,930. 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 6/30/2024 6/30/2023
Net Pension Liability $96,939,414 $99,372,215
Deferred Inflows 20,544,742 17,618,473
Deferred Outflows (43,301,410) (38,735,090)
Impact on Net Position before Deferred Outflows from Contributions 74,182,746 78,255,598 Additional Deferred Outflows - Contributions Subsequent to Measurement Date (23,969,930) (21,474,137) Impact on Statement of Net Position before Allocations 50,212,816 56,781,461 Allocation of Net Pension Liability to SRSD 3,142,745 3,351,534 Allocation of Deferred Inflows (measurement date) to SRSD 666,054 594,219 Allocation of Deferred Outflows (measurement date) to SRSD (1,403,818) (1,306,420) Impact on Net Position before Allocation of Deferred Outflows from Contributions to SRSD 2,404,981 2,639,333
Allocation of Additional Deferred Outflows (Contributions) to SRSD (765,942) (625,953) Long-Term Receivable from SRSD, due to pension obligations (see Note 4G) 1,639,039 2,013,380 Impact on Statement of Net Position, net of receivable from SRSD $48,573,777 $54,768,081 Pension Expense $17,355,907 $16,240,173
Summary of Results
76 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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, 2024. The beginning of year measurement of TPL is based on the actuarial valuation as of June 30, 2023. The TPL at the end of the measurement year, June 30, 2024, is also measured as of the valuation date of June 30, 2023 and projected to June 30, 2024.

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, 2023. The FNP at the end of the measurement year, June 30, 2024, is also measured as of the valuation date of June 30, 2023, and projected to June 30, 2024.

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, 2024 (measurement date) was determined by an actuarial valuation as of June 30, 2023, 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 $5,423,947 for FY 2023-24, 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 2023-24 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, 2025
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, adjusted by 95% for females and males.

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, 2024:

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% 5.15% 7.65%
International Equity 22% 5.15% 7.65%
Fixed Income 23% 2.75% 5.25%
Real Assets 15% 4.10% 6.60%
Private Equity 8% 6.25% 8.75%
Total 100%
The Long-Term returns are calculated using a 10-year geometric return derived from arithmetic returns and the associated risk (standard deviation).
78 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 – PENSION PLAN (Continued)
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 (15 years remaining as of the June 30, 2023 actuarial valuation), and an amount necessary to amortize the remaining Unfunded Actuarial Liability as a level percentage of payroll over a closed period (7 years remaining as of the June 30, 2023 actuarial valuation).

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 $1,595,727,520 $1,416,561,207 $1,268,591,434 Fiduciary Net Position 1,319,621,793 1,319,621,793 1,319,621,793 Net Pension Liability (Asset) $276,105,727 $96,939,414 ($51,030,359)

82.7% 93.2% 104.0%
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.
79 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 – PENSION PLAN (Continued)
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 $17,242,882 $1,705,552 Changes in assumptions 3,792,683
Change in proportion 11,158,146
Difference between City contributions and proportionate share of contributions 15,046,507
Actual FY 24-25 contributions (post measurement date) 23,969,930 Net difference between projected and actual earnings
on pension plan investments 14,900,382
Deferred Inflows and Outflows Before Allocations $67,271,340 $20,544,742 Allocation of Deferred Inflows and Outflows to SRSD
As of measurement date $1,403,818 $666,054
Post-measurement date 765,942
Net Deferred Inflows and Outflows $65,101,580 $19,878,688 The $23,969,930 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, 2026. 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
2026 ($11,801,826)
2027 40,729,238
2028 (1,485,441)
2029 (4,685,303)
Total $22,756,668
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.
80 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 – PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION RETIREMENT PLAN) (Continued)
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 $137,362. The total covered payroll of employees participating in the plan for the year ended June 30, 2025, was $3,662,987 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, 2025, 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 81 I
I
I

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) Membership in the plan consisted of the following at June 30, 2024, the measurement date:

Active plan members 350
Inactive employees or beneficiaries currently
receiving benefit payments 375
Inactive employees entitled to but not yet
receiving benefit payments 82
Total 807
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, 2024, 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% for 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.

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, 2025
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, 2024 (6/30/23 measurement date) $47,839,000 $26,989,000 $20,850,000 Changes Recognized for the Measurement Period:

Service Cost 575,631 575,631
Interest on the total OPEB liability 2,924,665 2,924,665 Contributions from the employer 3,251,000 (3,251,000)
Net investment income 2,965,706 (2,965,706)
Administrative expenses (19,798) 19,798
Benefit payments and refunds (3,240,000) (3,240,000)
Net Changes during July 1, 2024 to June 30, 2025 260,296 2,956,908 (2,696,612) Balance at June 30, 2025 (6/30/24 measurement date) $48,099,296 $29,945,908 $18,153,388 Increase (Decrease)
The benefit payments and refunds include implied subsidy benefit payments in the amount of $649,000.

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%)
$23,336,034 $18,153,388 $13,762,508
Plan's Net OPEB Liability/(Asset)
83 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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%
$14,984,405 $18,153,388 $21,951,283
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 2024-2025 were as follows:

Service Cost $575,631
Interest on Total OPEB Liability 2,924,665
Projected earning on investments (1,686,538)
Administrative expense 19,798
Recognition of deferred outflows/inflows:

Experience (1,666,000)
Assumptions 479,000
Asset Returns 70,166
OPEB Expense $716,722

84 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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, 2025 were as follows:

Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Changes of assumptions $2,333,669 $38,331 $2,372,000
Net difference between projected and
actual earnings on plan investments 289,904 4,762 294,666 Employer contributions made subsequent
to the measurement date 3,314,124 54,436 3,368,560
Total deferred outflows of resources $5,937,697 $97,529 $6,035,226 Deferred inflows of resources:

Differences between expected and actual
experience $3,383,426 $55,574 $3,439,000
Total deferred inflows of resources $3,383,426 $55,574 $3,439,000 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.
$3,368,560 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, 2026. 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
Year Ended June 30 Amount
2026 ($460,834)
2027 539,166
2028 (429,834)
2029 (420,832)
($772,334)
85 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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, 2024 June 30, 2023
Net OPEB Liability $18,153,388 $20,850,000
Deferred Inflows 5,480,000 3,439,000
Deferred Outflows (4,870,000) (2,666,666)
Impact on Net Position before deferred contributions 18,925,722 21,460,000 Additional Deferred Outflows - Contributions subsequent to measurement date (3,368,560) (3,251,000) Impact on Statement of Net Position before Allocations 15,557,162 18,209,000 Allocation of NOL to SRSD 448,316 514,912
Allocation of Deferred Inflows (measurement date) to SRSD 84,930 135,334 Allocation of Deferred Outflows (measurement date) to SRSD (65,856) (120,270) Impact on Net Position before deferred contributions to SRSD 467,390 529,976 Allocation of Additional Deferred Outflows (contributions) to SRSD (83,190) (80,287) Long-Term Receivable from SRSD, due to OPEB obligations (see Note 4G) 384,200 449,689 Impact on Statement of Net Positions, net of receivable from SRSD $15,172,962 $17,759,311 OPEB Expense $716,722 $943,000
Covered Employee Payroll $45,758,000 $43,603,000
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, 2025
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 $342,511 for the year ended June 30, 2025. 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 $914,680 for the year ended June 30, 2025. 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 $513,918 of the Authority’s operations and debt service for the fiscal year ended June 30, 2025. 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, 2025
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 $20,664 for the year ended June 30, 2025. 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, 2025
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 $215,117,500. 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 $2,131,195 in liability coverage premiums during the fiscal year ended June 30, 2025. 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, 2025
NOTE 13 – RISK MANAGEMENT (Continued)
General Workers' Totals, as of June 30
Liability * Compensation * 2025 2024
Balance, beginning of year $3,340,771 $11,161,091 $14,501,862 $15,786,698 Current year claims and changes
in estimates 935,939 1,828,082 2,764,021 2,318,043
Claims paid (872,123) (1,604,861) (2,476,984) (3,602,879) Balance, end of year $3,404,587 $11,384,312 $14,788,899 $14,501,862 Due in one year $1,277,825 $2,388,389 $3,666,214 $3,389,162 Due in more than one year 2,126,762 8,995,923 11,122,685 11,112,700 Total claim liabilities $3,404,587 $11,384,312 $14,788,899 $14,501,862 * Liability based on an actuarial valuation as of December 31, 2023, extrapolated to June 30, 2025.

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, 2025
NOTE 13 – RISK MANAGEMENT (Continued)
The following summarizes active insurance policies as of June 30, 2025 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 - Berkshire Hathaway $89,758,041 Alliant property CSRMA - Interstate Fire & Cas. $25,000,000 Pollution liability - aggregate CSRMA - Interstate Fire & Cas. $2,000,000 Pollution liability - per pollution condition CSRMA - Lloyds of London $2,000,000 Cyber liability - first party CSRMA - Associated Industries $2,000,000 Cyber liability - excess 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, 2025, are as follows:

Balance Balance Current
June 30, 2024 Retirements June 30, 2025 Portion
Governmental Activities
Lease Liabilities
Fire Station 57 Land Lease $5,474,403 ($10,873) $5,463,530 $16,527 Copier Equipment Leases 225,419 (68,527) 156,892 58,391 Police Equipment Leases 705,569 (101,333) 604,236 94,219 Total $6,405,391 ($180,733) $6,224,658 $169,137
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, 2025, the balance of the lease liability was $5,463,530 and the net value of the right-to-use asset was $4,850,366 including accumulated amortization of $625,853.

91 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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, 2025, the balance of the lease liability was $156,892 and the net value of the right-to-use asset was $143,712, including accumulated amortization of $326,727.

In fiscal year 2024, the City 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, 2025, the balance of the lease liability was $604,236 and the net value of the right-to-use asset was $597,554, including accumulated amortization of $158,368. The future principal and interest lease payments as of June 30, 2025 are as follows:

For the Year
Ended June 30 Principal Interest Total
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 95,742 176,021 271,763
2031-2035 596,384 809,812 1,406,196
2036-2040 577,410 708,372 1,285,782
2041-2045 890,991 599,583 1,490,574
2046-2050 1,290,333 437,651 1,727,984
2051-2055 1,794,885 208,321 2,003,206
2056-2060 430,385 7,027 437,412
Totals $6,224,658 $3,707,087 $9,931,745
B. Subscription-Based Information Technology Liabilities A summary of subscription-based information technology arrangements (SBITA) transactions for the fiscal year ended June 30, 2025, are as follows:

Balance Balance Current
June 30, 2024 Retirements June 30, 2025 Portion
Governmental Activities
Subscription liabilities
Microsoft $752,008 ($174,475) $577,533 $183,198
OpenGov 203,265 (96,551) 106,714 106,714
MioVision 88,017 (88,017)
Axon 2 1,374,990 (129,397) 1,245,593 105,358
Total $2,418,280 ($488,440) $1,929,840 $395,270
92 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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, 2025, the balance of the subscription liability was $1,245,593 and the net value of the rightto-use asset was $1,237,491, including accumulated amortization of $137,499.

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, 2025, the balance of the subscription liability was $577,533 and the net value of the right-to-use asset was $540,334, including accumulated amortization of $540,334.

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, 2025, the balance of the subscription liability was $106,714 and the net value of the right-to-use asset was $578,957, 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, 2025, the balance of the subscription liability was $0 and the net value of the right-to-use asset was $0, including accumulated amortization of $167,652.

The future subscription and interest subscription payments as of June 30, 2025 follows:

For the Year
Ended June 30 Principal Interest Total
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 133,092 39,575 172,667
2031 - 2034 658,396 85,646 744,042
Totals $1,929,840 $405,694 $2,335,534
93 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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, 2025, SRSD had several contracts for sewer improvement projects with remaining obligations of approximately $1,900,000.

In addition, SRSD contracts with the City for the services of its staff members who are employees of the City. Management of SRSD is seeking the approval of the other agencies that are members of CMSA to contract with CMSA rather than the City to provide staffing. Under the proposal, the current staff members would be offered employment by CMSA. If approved, it is expected that SRSD will incur transition costs and that ongoing personnel costs will increase. Also, SRSD’s obligation to the City may be revalued and may be liquidated.

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. 94 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 16 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE

TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES
The activities of the Successor Agency are reported in the Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency.

Pursuant to the dissolution of the City of San Rafael Redevelopment Agency, certain assets of the Redevelopment Agency were distributed to the Housing Successor and all remaining Redevelopment Agency assets and liabilities were distributed to the Successor Agency.

The City elected to become the Housing Successor and on February 1, 2012. Assets and Liabilities relating to the Housing Successor are reported in the City’s Low and Moderate Income Housing Special Revenue Fund.

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, 2025, 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. 95 CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Measurement date 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 City's proportionate share 36.7394% 34.9538% 32.7180% 33.4752% 36.6081% Proportionate share of total pension liability $907,195,058 $900,629,287 $878,483,703 $947,923,920 $1,082,900,638 Proportionate share of fiduciary net position 764,871,931 733,574,437 757,834,016 837,356,062 949,023,107 Proportionate share of the net pension liability $142,323,127 $167,054,850 $120,649,687 $110,567,858 $133,877,531 Plan fiduciary net position as a percentage of the total pension liability 84.31% 84.31% 86.27% 88.34% 87.64% Covered payroll (report date) $31,073,560 $32,126,272 $32,885,135 $36,349,651 $33,106,430 Net pension liability as a percentage of covered payroll 458.02% 519.99% 366.88% 304.18% 404.39% Measurement date 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 City's proportionate share 34.3574% 29.6650% 33.7322% 34.4061% 39.5184% Proportionate share of total pension liability $1,059,269,505 $959,104,784 $1,120,775,111 $1,181,328,195 $1,416,561,207 Proportionate share of fiduciary net position 901,989,929 1,007,281,093 1,015,298,454 1,081,955,979 1,319,621,793 Proportionate share of the net pension liability (asset) $157,279,576 ($48,176,309) $105,476,657 $99,372,216 $96,939,414 Plan fiduciary net position as a percentage of the total pension liability 85.15% 105.02% 90.59% 91.59% 93.16% Covered payroll (report date) $32,887,922 $31,697,590 $34,418,052 $35,543,480 $36,995,522 Net pension liability (asset) as a percentage of covered payroll 478.23% -151.99% 306.46% 279.58% 262.03% 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, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
Fiscal year ended, June 30 2016
Contractually required contribution $19,339,577
Contributions in Relation to the
Contractually required contribution 19,339,577
Contribution Deficiency/ (Excess) $0
Covered payroll $32,126,272
Contributions as a percentage of
covered payroll 60.20%
Notes to Schedule
Valuation Date / Timing 6/30/2014 (for contributions made in FY2015-2016) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2015-16):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Actuarial Loss from 2009 Remaining Amortization period Unfunded liability - 16 years / Extraordinary Actuarial Loss - 24 years Asset valuation method 5-year smoothed market, 80% /120% corridor around market Inflation 3.25%
Salary increases 3.25% plus merit component based on employee classification and years of service Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality CalPERS 2014 Pre-Retirement Non-Industrial Death rates (plus Duty-Related Death rates for Safety Members), with the 20-year static projection used by CalPERS replaced by generational improvements from a base year of 2009 using Scale MP-2014 Disabled Mortality CalPERS 2014 Disability Mortality rates (Non-Industrial rates for Miscellaneous members and Industrial Disability rates for Safety members), adjusted by 90% for Males and Females (Miscellaneous and Safety) with the 20-year static projection used by CalPERS replaced by generational improvements from a base year of 2009 using Scale MP-2014 Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62

98 CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
Fiscal year ended, June 30 2017
Contractually required contribution $20,003,001
Contributions in Relation to the
Contractually required contribution 20,003,001
Contribution Deficiency/ (Excess) $0
Covered payroll $32,885,135
Contributions as a percentage of
covered payroll 60.83%
Notes to Schedule
Valuation Date / Timing 6/30/2015 (for contributions made in FY2016-2017) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2016-17):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (24 years remaining as of 6/30/14), the remaining UAL as of June 30, 2013 (16 years as of 6/30/14), and additional layers for unexpected changes in UAL after 6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for assumption changes with a 3-year phase-in/out).

Remaining Amortization period 19 years remaining as of June 30, 2016 Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages set back one year for male members/two years for female members Disabled Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages set forward three years for all members
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62

99 CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
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 Rates of mortality among disabled members are given by CalPERS 2017 Disability Mortality rates (Non-Industrial rates for Miscellaneous members and Industrial Disability rates for Safety members), adjusted by 90% for Males (Miscellaneous and Safety) and 90% for Miscellaneous Females, with the 15-year static projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-2017.

Last 10 years
Schedule of Contributions
(Continued)
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 100

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
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.

Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 101

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
Fiscal year ended, June 30 2020
Contractually required contribution $20,031,614
Contributions in Relation to the
Contractually required contribution 20,031,614
Contribution Deficiency/ (Excess) $0
Covered payroll $32,887,922
Contributions as a percentage of
covered payroll 60.91%
Notes to Schedule
Valuation Date / Timing 6/30/2018 (for contributions made in FY2019-2020) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2019-20):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (20 years remaining as of 6/30/18), the remaining UAL as of June 30, 2013 (12 years as of 6/30/18), and additional layers for unexpected changes in UAL after 6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for assumption changes with a 3-year phase-in/out).

Remaining Amortization period 12 years remaining as of June 30, 2018 Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service Investment Rate of Return 7.00%
Retirement Age
Healthy Mortality
Disabled Mortality
Rates of mortality for active members are specified by CalPERS 2017 Pre-Retirement Non-Industrial Death rates (plus 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 MP2017.

Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 102

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
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 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 MP2017.

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.

103

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
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
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 MP2020, 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, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
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
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 MP2020, 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, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
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 Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 Healthy Mortality
Disabled Mortality
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 MP2020, 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, 2025
Fiscal year ended, June 30 2025
Contractually required contribution $23,969,930
Contributions in Relation to the
Contractually required contribution (23,969,930)
Contribution Deficiency/ (Excess) $0
Covered payroll $41,605,711
Contributions as a percentage of
covered payroll 57.61%
Notes to Schedule
Valuation Date / Timing 6/30/2023 (for contributions made in FY2024-2025) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2024 - 25):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (15 years remaining as of 6/30/23), the remaining UAL as of June 30, 2013 (7 years as of 6/30/23), 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 7 years remaining as of June 30, 2023 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 Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 Healthy Mortality
Disabled Mortality
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
Mortality rates for Miscellaneous active members are based on the sex distinct Public General 2010 Employee Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale MP-2020, with no adjustments.

Rates of mortality for Miscellaneous disabled members are based on the sex distinct Public General 2010 Disabled Retiree Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale MP-2020, adjusted by 95% for females and males.

107

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025

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, 2025
2019-20 2020-21 2021-22 2022-23 2023-24
$687,000 $679,000 $566,000 $582,000 $575,631
3,238,000 3,196,000 2,946,000 2,966,000 2,924,665
(3,269,000) (4,063,000)
2,278,000 2,748,000
(3,315,000) (3,225,000) (3,286,000) (3,172,000) (3,240,000) (713,000) 658,000 226,000 (615,000) 260,296
48,941,000 48,283,000 48,228,000 48,454,000 47,839,000
$48,941,000 $48,228,000 $48,454,000 $47,839,000 $48,099,296 $3,784,000 $3,323,000 $3,294,000 $3,183,000 $3,251,000
6,319,000 770,000 (3,922,000) 1,629,000 2,965,706
(3,315,000) (3,225,000) (3,286,000) (3,172,000) (3,240,000) (17,000) (19,000) (15,000) (18,000) (19,798)
6,310,000 1,310,000 (3,929,000) 1,622,000 2,956,908
22,986,000 21,676,000 29,296,000 25,367,000 26,989,000
$22,986,000 $29,296,000 $25,367,000 $26,989,000 $29,945,908 $25,955,000 $18,932,000 $23,087,000 $20,850,000 $18,153,388

46.97% 60.74% 52.35% 56.42% 62.26%
$39,920,000 $39,310,000 $43,602,857 $45,757,607 $45,758,000

65.02% 48.16% 52.95% 45.57% 39.67%

109

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025

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, 2025

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, 2025

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, 2025

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, 2025

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, 2025

SCHEDULE OF CONTRIBUTIONS
Agent Multiple Employer Defined Benefit Plan
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
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, 2025

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, 2025

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
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

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2024-25
Actuarially determined contribution $2,833,000
Contributions in relation to
the actuarially determined contribution (3,368,560)
Contribution deficiency (excess) ($535,560)
Covered employee payroll $48,248,846
Contributions as a percentage of
covered employee payroll 6.98%
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 6/30/24 and 6/30/25.

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 11 year fixed period for 2024/25 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: 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 118

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, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes and special assessments $90,072,355 $90,072,355 $91,003,535 $931,180 Licenses and permits 2,950,488 2,950,488 3,346,342 395,854 Fines and forfeitures 203,400 203,400 297,212 93,812
Use of money and properties 1,122,283 1,122,283 2,306,492 1,184,209 Intergovernmental 4,148,395 4,148,395 4,729,694 581,299 Charges for services 3,074,558 3,074,558 3,163,591 89,033 Other revenue 358,000 358,000 926,142 568,142
Total Revenues 101,929,479 101,929,479 105,773,008 3,843,529

EXPENDITURES
Current:

General government 18,314,601 18,281,333 16,477,488 1,803,845 Public safety 52,580,305 53,483,653 53,289,499 194,154
Public works and parks 15,223,024 15,759,446 15,462,738 296,708 Community development 8,250,842 7,417,450 5,909,774 1,507,676 Culture and recreation 3,494,390 3,494,390 3,006,272 488,118 Debt service:

Principal 3,418,106 3,418,106 3,794,498 (376,392)
Interest and fiscal charges 1,903,686 1,903,686 2,034,131 (130,445) Total Expenditures 103,184,954 103,758,064 99,974,400 3,783,664

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,255,475) (1,828,585) 5,798,608 7,627,193

OTHER FINANCING SOURCES (USES)
Transfers in 2,508,306 2,508,306 1,959,435 (548,871)
Transfers out (10,258,500) (10,258,500) (10,258,500)
Total Other Financing Sources (Uses) (7,750,194) (7,750,194) (8,299,065) (548,871) Net Change in Fund Balance ($9,005,669) ($9,578,779) (2,500,457) $7,078,322 FUND BALANCE, BEGINNING OF YEAR 36,415,276
FUND BALANCE, END OF YEAR $33,914,819
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, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and properties $170,158 $170,158 $211,234 $41,076 Intergovernmental 225,000 225,000 989,165 764,165
Charges for services 1,350,000 1,350,000 179,608 (1,170,392) Other revenue 3,470 3,470
Total Revenues 1,745,158 1,745,158 1,383,477 (361,681)

EXPENDITURES
Current:

Public works and parks 540,000 732,703 149,245 583,458
Community development 1,652,000 225,334 1,426,666
Capital outlay 175,545 97,393 78,152
Total Expenditures 540,000 2,560,248 471,972 2,088,276

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,205,158 (815,090) 911,505 1,726,595

OTHER FINANCING SOURCES (USES)
Transfers out (250,000) (250,000) (250,000)
Total Other Financing Sources (Uses) (250,000) (250,000) (250,000) Net Change in Fund Balance $955,158 ($1,065,090) 661,505 $1,726,595 5,914,177
FUND BALANCE, END OF YEAR $6,575,682

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, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and properties $353,335 $353,335 $570,211 $216,876 Intergovernmental 12,631,611 12,631,611 5,277,328 (7,354,283) Charges for services 2,280,600 2,280,600 2,061,008 (219,592) Other revenue 150,000 150,000 53,246 (96,754)
Total Revenues 15,415,546 15,415,546 7,961,793 (7,453,753)

EXPENDITURES
Current:

Public works and parks 16,511,838 16,429,600 4,876,064 11,553,536 Capital outlay 4,578,092 1,655,297 2,922,795
Total Expenditures 16,511,838 21,007,692 6,531,361 14,476,331

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,096,292) (5,592,146) 1,430,432 7,022,578

OTHER FINANCING SOURCES (USES)
Transfers in 1,250,000 1,250,000 1,250,000
Transfers out (760,000) (760,000) (760,000)
Total Other Financing Sources (Uses) 490,000 490,000 490,000 Net Change in Fund Balance ($606,292) ($5,102,146) 1,920,432 $7,022,578 FUND BALANCE, BEGINNING OF YEAR 13,372,829
FUND BALANCE, END OF YEAR $15,293,261
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, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $147,645 $147,645 $126,997 ($20,648) Total Revenues 147,645 147,645 126,997 (20,648)

EXPENDITURES
Capital outlay 100,000 883,450 744,275 139,175
Total Expenditures 100,000 883,450 744,275 139,175

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 47,645 (735,805) (617,278) 118,527

OTHER FINANCING SOURCES (USES)
Transfers in 353,500 353,500 353,500
Total Other Financing Sources (Uses) 353,500 353,500 353,500 Net Change in Fund Balance $401,145 ($382,305) (263,778) $118,527 FUND BALANCE, BEGINNING OF YEAR 3,592,590
FUND BALANCE, END OF YEAR $3,328,812
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
JUNE 30, 2025
Baypoint Loch Lomond
Lagoons Household #10
Recreation Assessment Hazmat Community
Revolving District Facility Childcare Facilities Dist.

ASSETS
Cash and investments $362,708 $238,533 $55,251 $1,628,235 $893,345 Restricted cash and investments
Receivables:

Accounts 296,631
Taxes 203 250
Grants
Loans
Leases 124,865
Total Assets $784,204 $238,736 $55,251 $1,628,235 $893,595

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $186,213 $38,531 $10,080
Deposits payable
Developer deposits payable
Unearned revenue 555,058
Total Liabilities 741,271 38,531 10,080
Deferred Inflows of Resources:

Unavailable revenue - leases 112,992
Total Deferred Inflows of Resources 112,992
Fund Balances:

Restricted $238,736 $55,251 1,589,704 883,515
Committed
Assigned
Unassigned (70,059)
Total Fund Balances (70,059) 238,736 55,251 1,589,704 883,515 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $784,204 $238,736 $55,251 $1,628,235 $893,595

SPECIAL REVENUE FUNDS
128
Loch Lomond
Marina #2
Community Library Public Development Parkland
Facilities Dist. Library Assessment Safety Stormwater Services Grants Dedication $1,279,075 $2,757,955 $891,019 $57,154 $4,004,282 $626,081 $127,950 $380,990 2,500 366
2,358 8,520 6,642
787,133
219,640
$1,281,433 $2,760,455 $899,539 $57,154 $4,010,924 $846,087 $915,083 $380,990 $10,087 $140,566 $4,323 $7,586 $601,726 $46,689 $256,329 85,536 16,752
3,635
10,087 140,566 4,323 7,586 601,726 135,860 273,081
195,147
195,147
2,619,889 895,216 49,568 3,409,198 515,080 642,002 $380,990 1,271,346 1,271,346 2,619,889 895,216 49,568 3,409,198 515,080 642,002 380,990 $1,281,433 $2,760,455 $899,539 $57,154 $4,010,924 $846,087 $915,083 $380,990 (Continued)

SPECIAL REVENUE FUNDS
129

CITY OF SAN RAFAEL

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
JUNE 30, 2025
Low and
Emergency Pt. San Pedro Moderate
Medical Business Maintenance Income Measure A
Services Improvement Portion Housing Open Space
ASSETS
Cash and investments $3,281,402 $59,193 $285,453 $163,887 $887,275 Restricted cash and investments
Receivables:

Accounts 400,290
Taxes 42,139 1,423 297,649
Grants
Loans 1,859,833
Leases
Total Assets $3,723,831 $59,193 $286,876 $2,023,720 $1,184,924

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $49,743 $59,193 $6,997 $213,349
Deposits payable
Developer deposits payable
Unearned revenue
Total Liabilities 49,743 59,193 6,997 213,349
Deferred Inflows of Resources:

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

Restricted 3,674,088 279,879 $2,023,720 971,575
Committed
Assigned
Unassigned
Total Fund Balances 3,674,088 279,879 2,023,720 971,575 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $3,723,831 $59,193 $286,876 $2,023,720 $1,184,924

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 $883,422 $2,389,987 $5,465,743 $158,515 $216,354 $27,940 $126,205 $27,247,954 90,098 90,098
746,587 1,446,374
6,203 365,387
787,133
1,859,833
344,505
$889,625 $3,136,574 $5,465,743 $158,515 $306,452 $27,940 $126,205 $32,141,284 $290,054 $816,830 $2,738,296
102,288
3,635
555,058
290,054 816,830 3,399,277
308,139
308,139
$889,625 2,846,520 $158,515 $306,452 23,700,869
4,648,913 $27,940 4,676,853
$126,205 126,205
(70,059)
889,625 2,846,520 4,648,913 158,515 306,452 27,940 126,205 28,433,868 $889,625 $3,136,574 $5,465,743 $158,515 $306,452 $27,940 $126,205 $32,141,284

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 $31,199
Use of money and properties $50,012 8,990 $56,684 32,313 Intergovernmental 1,080 713,901
Charges for services 2,215,692 3,414,126
Other revenue 13,729 800
Total Revenues 2,280,513 34,358 4,185,511 63,512

EXPENDITURES
Current:

General government
Public safety $527,641
Public works and parks 31,041 12,134
Community development
Culture and recreation 4,945,994 3,834,568
Capital outlay
Total Expenditures 4,945,994 31,041 527,641 3,834,568 12,134

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,665,481) 3,317 (527,641) 350,943 51,378

OTHER FINANCING SOURCES (USES)
Transfers in 2,420,000
Transfers out
Total Other Financing Sources (Uses) 2,420,000
Net Change in Fund Balances (245,481) 3,317 (527,641) 350,943 51,378 Fund Balance, Beginning 175,422 235,419 582,892 1,238,761 832,137 Fund Balance, Ending ($70,059) $238,736 $55,251 $1,589,704 $883,515

CITY OF SAN RAFAEL

COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE

NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025

SPECIAL REVENUE FUNDS
132
Loch Lomond
Marina #2
Community Library Public Development Parkland
Facilities Dist. Library Assessment Safety Stormwater Services Grants Dedication $294,757 $1,195,702
45,222 $149,997 29,616 $153,119 $62,320 $14,017
14,435 $76,041 $2,962,947
1,313 830,213
9,387 14,473 7,292 175,033 178
349,366 180,218 1,225,318 83,333 1,158,365 62,320 2,963,125 14,017 2,508,719
236,252 299,624
170,730 940,717
228,701
7,029 1,283,187
2,788,652 1,819,882 144,308
170,730 2,795,681 1,283,187 236,252 2,760,599 3,181,352 178,636 (2,615,463) (57,869) (152,919) (1,602,234) 62,320 (218,227) 14,017 96,000 1,095,000 13,543
96,000 1,095,000 13,543
178,636 (2,615,463) (57,869) (56,919) (507,234) 62,320 (204,684) 14,017 1,092,710 5,235,352 953,085 106,487 3,916,432 452,760 846,686 366,973 $1,271,346 $2,619,889 $895,216 $49,568 $3,409,198 $515,080 $642,002 $380,990 (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 $5,414,694 $177,869 $598,007 Use of money and properties 116,686 9,650 $47,385 35,260 Intergovernmental 56,948
Charges for services 4,316,792
Other revenue 668,415 56,490
Total Revenues 10,573,535 187,519 103,875 633,267

EXPENDITURES
Current:

General government $50,000
Public safety 10,292,476
Public works and parks 141,534
Community development
Culture and recreation 137,532
Capital outlay 598,313
Total Expenditures 10,292,476 50,000 141,534 735,845

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 281,059 (50,000) 45,985 103,875 (102,578)

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances 281,059 (50,000) 45,985 103,875 (102,578) Fund Balance, Beginning 3,393,029 50,000 233,894 1,919,845 1,074,153 Fund Balance, Ending $3,674,088 $279,879 $2,023,720 $971,575

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, 2025
134
Total
Measure C Park Non-Major
Measure G Wildfire Capital Bedroom Assessment Capital Open Governmental Cannabis Prevention Improvement Tax Districts Projects Space Funds $132,716 $2,083,132 $2,168 $9,955,612
61,238 37,982 $363,986 5,817 $4,347 $4,643 1,289,284
360,934 5,906,227 1,719,941
10,778,136
60,563 27,206 $3,499 1,037,065
170,698 3,924,874 752,126 7,985 4,347 3,499 4,643 28,966,324 120,669 2,679,388
46,464 2,409,118 13,811,575
1,296,156
228,701
7,720 10,216,030
36,224 6,283,815 11,671,194
167,133 2,445,342 6,283,815 7,720 39,903,044
3,565 1,479,532 (5,531,689) 7,985 4,347 (4,221) 4,643 (10,936,720) 2,000,000 5,624,543
(151,129) (151,129)
(151,129) 2,000,000 5,473,414
(147,564) 1,479,532 (3,531,689) 7,985 4,347 (4,221) 4,643 (5,463,306) 1,037,189 1,366,988 8,180,602 150,530 302,105 32,161 121,562 33,897,174 $889,625 $2,846,520 $4,648,913 $158,515 $306,452 $27,940 $126,205 $28,433,868

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, 2025

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 $63,131 $50,012 ($13,119) 8,838 8,990 $152 Intergovernmental 1,080 1,080
Charges for services 2,222,066 2,215,692 (6,374)
Other revenue 515 13,729 13,214
Total Revenues 2,285,712 2,280,513 (5,199) 34,206 34,358 152

EXPENDITURES
Current:

General government
Public safety
Public works and parks 221,205 31,041 190,164
Community development
Culture and recreation 4,932,191 4,945,994 (13,803)
Capital outlay
Total Expenditures 4,932,191 4,945,994 (13,803) 221,205 31,041 190,164

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,646,479) (2,665,481) (19,002) (186,999) 3,317 190,316

OTHER FINANCING SOURCES (USES)
Transfers in 2,420,000 2,420,000
Transfers out
Total Other Financing Sources (Uses) 2,420,000 2,420,000 NET CHANGE IN FUND BALANCE ($226,479) (245,481) ($19,002) ($186,999) 3,317 $190,316 FUND BALANCES, BEGINNING OF YEAR 175,422 235,419
FUND BALANCES, END OF YEAR ($70,059) $238,736
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 $31,199 $6,199
$18,543 $56,684 $38,141 32,181 32,313 132
632,697 713,901 81,204
3,074,550 3,414,126 339,576
136,000 800 (135,200)
3,861,790 4,185,511 323,721 57,181 63,512 6,331
$527,641 $527,641
31,855 12,134 19,721
3,989,550 3,834,568 154,982
527,641 527,641 3,989,550 3,834,568 154,982 31,855 12,134 19,721 (527,641) (527,641) (127,760) 350,943 478,703 25,326 51,378 26,052 ($527,641) (527,641) ($127,760) 350,943 $478,703 $25,326 51,378 $26,052 582,892 1,238,761 832,137
$55,251 $1,589,704 $883,515
(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 $294,757 $71,638 Use of money and properties 34,796 45,222 10,426 $171,348 $149,997 ($21,351) Intergovernmental 16,422 14,435 (1,987)
Charges for services 4,000 1,313 (2,687)
Other revenue 9,387 9,387 15,000 14,473 (527)
Total Revenues 257,915 349,366 91,451 206,770 180,218 (26,552)

EXPENDITURES
Current:

General government
Public safety
Public works and parks 251,756 170,730 81,026
Community development
Culture and recreation 42,392 7,029 35,363
Capital outlay 4,826,590 2,788,652 2,037,938
Total Expenditures 251,756 170,730 81,026 4,868,982 2,795,681 2,073,301

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 6,159 178,636 172,477 (4,662,212) (2,615,463) 2,046,749

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE $6,159 178,636 $172,477 ($4,662,212) (2,615,463) $2,046,749 FUND BALANCES, BEGINNING OF YEAR 1,092,710 5,235,352
FUND BALANCES, END OF YEAR $1,271,346 $2,619,889

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025

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) $1,202,532 $1,195,702 ($6,830)
33,751 29,616 (4,135) $4,050 ($4,050) $165,259 $153,119 ($12,140) 85,000 $76,041 (8,959) 906,653 (906,653)
830,000 830,213 213
15,000 7,292 (7,708) 175,033 175,033
1,236,283 1,225,318 (10,965) 104,050 83,333 (20,717) 1,901,912 1,158,365 (743,547) 219,110 236,252 (17,142)
1,693,323 940,717 752,606
1,869,730 1,283,187 586,543
4,560,856 1,819,882 2,740,974
1,869,730 1,283,187 586,543 219,110 236,252 (17,142) 6,254,179 2,760,599 3,493,580 (633,447) (57,869) 575,578 (115,060) (152,919) (37,859) (4,352,267) (1,602,234) 2,750,033 85,000 96,000 11,000 1,095,000 1,095,000
85,000 96,000 11,000 1,095,000 1,095,000
($633,447) (57,869) $575,578 ($30,060) (56,919) ($26,859) ($3,257,267) (507,234) $2,750,033 953,085 106,487 3,916,432
$895,216 $49,568 $3,409,198
(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 $56,352 $62,320 $5,968
Intergovernmental $7,297,086 $2,962,947 ($4,334,139)
Charges for services
Other revenue 7,500 178 (7,322)
Total Revenues 56,352 62,320 5,968 7,304,586 2,963,125 (4,341,461)

EXPENDITURES
Current:

General government 3,398,995 2,508,719 890,276
Public safety 591,531 299,624 291,907
Public works and parks
Community development 1,583,820 228,701 1,355,119
Culture and recreation
Capital outlay 104,033 144,308 (40,275)
Total Expenditures 5,678,379 3,181,352 2,497,027

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 56,352 62,320 5,968 1,626,207 (218,227) (1,844,434)

OTHER FINANCING SOURCES (USES)
Transfers in 16,580 13,543 (3,037)
Transfers out
Total Other Financing Sources (Uses) 16,580 13,543 (3,037) NET CHANGE IN FUND BALANCE $56,352 62,320 $5,968 $1,642,787 (204,684) ($1,847,471) FUND BALANCES, BEGINNING OF YEAR 452,760 846,686
FUND BALANCES, END OF YEAR $515,080 $642,002

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, 2025

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 $5,414,694 $96,134
$14,350 $14,017 ($333) 37,054 116,686 79,632
181,100 56,948 (124,152)
3,200,000 4,316,792 1,116,792
250,000 668,415 418,415
14,350 14,017 (333) 8,986,714 10,573,535 1,586,821
$50,000 $50,000
10,334,981 10,292,476 42,505
10,334,981 10,292,476 42,505 50,000 50,000
14,350 14,017 (333) (1,348,267) 281,059 1,629,326 (50,000) (50,000) $14,350 14,017 ($333) ($1,348,267) 281,059 $1,629,326 ($50,000) (50,000) 366,973 3,393,029 50,000
$380,990 $3,674,088
(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 $177,869 $27,869 Use of money and properties 6,233 9,650 3,417 $10,564 $47,385 $36,821 Intergovernmental
Charges for services
Other revenue 56,490 56,490
Total Revenues 156,233 187,519 31,286 10,564 103,875 93,311

EXPENDITURES
Current:

General government 85,770 85,770
Public safety
Public works and parks 187,686 141,534 46,152
Community development
Culture and recreation
Capital outlay
Total Expenditures 187,686 141,534 46,152 85,770 85,770

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (31,453) 45,985 77,438 (75,206) 103,875 179,081

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE ($31,453) 45,985 $77,438 ($75,206) 103,875 $179,081 FUND BALANCES, BEGINNING OF YEAR 233,894 1,919,845
FUND BALANCES, END OF YEAR $279,879 $2,023,720
FOR THE YEAR ENDED JUNE 30, 2025

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 $598,007 $48,129 $225,000 $132,716 ($92,284) $1,995,362 $2,083,132 $87,770 16,319 35,260 18,941 44,627 37,982 (6,645) 7,494 61,238 53,744 1,353,205 1,719,941 366,736
60,563 60,563
566,197 633,267 67,070 269,627 170,698 (98,929) 3,356,061 3,924,874 568,813 124,720 120,669 4,051
3 3 45,663 46,464 (801) 5,756,533 2,409,118 3,347,415
137,532 (137,532)
1,250,192 598,313 651,879 36,224 (36,224)
1,250,195 735,845 514,350 170,383 167,133 3,250 5,756,533 2,445,342 3,311,191 (683,998) (102,578) 581,420 99,244 3,565 (95,679) (2,400,472) 1,479,532 3,880,004 (700,000) (151,129) 548,871
(700,000) (151,129) 548,871
($683,998) (102,578) $581,420 ($600,756) (147,564) $453,192 ($2,400,472) 1,479,532 $3,880,004 1,074,153 1,037,189 1,366,988
$971,575 $889,625 $2,846,520
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, 2025
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
ASSETS
Current Assets:

Cash and investments $8,011,587 $6,098,504 $5,808,003 $411,313 $4,951,080 Accounts receivable
Prepaid expenses 837,058 1,006,580 35,415
Capital assets:

Nondepreciable assets 169,757
Depreciable assets, net 5,648,417 7,186,631 1,119,294
Total Assets 13,829,761 14,122,193 7,933,877 411,313 4,986,495

LIABILITIES
Current Liabilities:

Accounts payable 60,990 34,814 484,538 3,714 401,752
Claims payable - due in one year 1,277,825
Long-term debt - due in one year 21,755
Subscription liabilities - due in one year 289,912
Non-current Liabilities:

Claims payable - due in more than one year 2,126,762
Long-term debt - due in more than one year 77,953
Subscription liabilities - due in more than one year 394,335 Total Liabilities 160,698 34,814 1,168,785 3,714 3,806,339 NET POSITION:

Net investment in capital assets 5,718,466 7,186,631 435,047 Unrestricted 7,950,597 6,900,748 6,330,045 407,599 1,180,156 Total Net Position $13,669,063 $14,087,379 $6,765,092 $407,599 $1,180,156 146
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total $13,776,226 $670,525 $1,192,597 $1,256,867 $553,489 $626,294 $170,851 $43,527,336 3,782 3,782
354,480 2,233,533
169,757
13,954,342
14,130,706 674,307 1,192,597 1,256,867 553,489 626,294 170,851 59,888,750 16,947 3,731 53,398 170,851 1,230,735
2,388,389 3,666,214
21,755
289,912
8,995,923 11,122,685
77,953
394,335
11,401,259 3,731 53,398 170,851 16,803,589
13,340,144
2,729,447 670,576 1,192,597 1,256,867 553,489 572,896 29,745,017 $2,729,447 $670,576 $1,192,597 $1,256,867 $553,489 $572,896 $43,085,161 147
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance

OPERATING REVENUES
Charges for current services $2,000,000 $1,286,733 $2,758,364 $1,055,048 $2,814,880 Other operating revenues 401,256
Total Operating Revenues 2,000,000 1,286,733 2,758,364 1,055,048 3,216,136

OPERATING EXPENSES
Personnel 870,825 477,130
Insurance premiums and claims 3,069,983
Maintenance and repairs 434,893 (156,046)
General and administrative 5,266 3,056,475 408,031 213,978 Depreciation and amortization expense 304,838 1,260,007 205,106 Total Operating Expenses 744,997 1,103,961 3,261,581 1,278,856 3,761,091 Operating Income (Loss) 1,255,003 182,772 (503,217) (223,808) (544,955)

NONOPERATING REVENUES (EXPENSES)
Investment income 277,296 218,277 242,272 13,999 155,607 Interest expense (47,763)
Miscellaneous revenues 99
Gain on sale of capital assets 191,839
Total Nonoperating
Revenues (Expenses) 277,296 410,215 194,509 13,999 155,607 Net income (loss) before contributions
and transfers 1,532,299 592,987 (308,708) (209,809) (389,348)

TRANSFERS
Transfers in 1,000,000 500,000 2,000,000
Transfers out (13,543)
Net transfers 1,000,000 486,457 2,000,000
Change in Net Position 1,532,299 1,592,987 177,749 (209,809) 1,610,652 NET POSITION, BEGINNING OF YEAR 12,136,764 12,494,392 6,587,343 617,408 (430,496) NET POSITION, END OF YEAR $13,669,063 $14,087,379 $6,765,092 $407,599 $1,180,156

CITY OF SAN RAFAEL

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2025
148
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total $2,824,303 $418,980 $3,360,000 $450,000 $684,400 $3,404,270 $21,056,978 270,853 1,138,881 1,810,990
3,095,156 418,980 4,498,881 450,000 684,400 3,404,270 22,867,968 199,312 3,266,329 4,813,596
2,203,747 396,983 3,861,074 9,531,787
69,612 348,459
182,630 38,469 $2,000 513,918 467,311 144,141 5,032,219 1,769,951
2,585,689 435,452 2,000 3,861,074 513,918 536,923 3,410,470 21,496,012 509,467 (16,472) (2,000) 637,807 (63,918) 147,477 (6,200) 1,371,956 506,563 30,318 51,884 39,893 15,458 21,145 1,572,712
(47,763)
6,200 6,299
191,839
506,563 30,318 51,884 39,893 15,458 21,145 6,200 1,723,087 1,016,030 13,846 49,884 677,700 (48,460) 168,622 3,095,043 3,500,000
(680,313) (693,856)
(680,313) 2,806,144
1,016,030 13,846 (630,429) 677,700 (48,460) 168,622 5,901,187 1,713,417 656,730 1,823,026 579,167 601,949 404,274 37,183,974 $2,729,447 $670,576 $1,192,597 $1,256,867 $553,489 $572,896 $43,085,161 149

CITY OF SAN RAFAEL

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2025
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $2,000,000 $1,296,733 $2,758,364 $1,055,048 $2,815,680 Cash payments to suppliers for goods and services (413,703) 162,550 (3,778,636) (554,704) (2,893,185) Cash payments to employees for salaries and benefits (870,825) (477,130) Other operating revenues 401,256
Cash Flows from Operating Activities 1,586,297 1,459,283 (1,020,272) (370,481) (153,379)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Miscellaneous revenues 99
Interfund revenues 1,000,000 500,000 2,000,000
Interfund payments (13,543)
Cash Flows from Noncapital
Financing Activities 1,000,099 486,457 2,000,000

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Payment on note payable (21,755)
Payment on subscription liability (271,026)
Payment on subscription interest (47,763)
Acquisition and construction of capital assets (149,111) (1,737,546) (54,651) Proceeds from sale of property 191,839
Cash Flows from Investing Activities (170,866) (1,545,707) (373,440)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 277,296 218,277 242,272 13,999 155,607 Cash Flows from Investing Activities 277,296 218,277 242,272 13,999 155,607 Net increase (decrease) in cash and cash equivalents 1,692,727 1,131,952 (664,983) (356,482) 2,002,228 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 6,318,860 4,966,552 6,472,986 767,795 2,948,852 CASH AND CASH EQUIVALENTS, END OF YEAR $8,011,587 $6,098,504 $5,808,003 $411,313 $4,951,080 Reconciliation of operating income (loss) to net cash
provided by operating activities:

Operating income (loss) $1,255,003 $182,772 ($503,217) ($223,808) ($544,955) Adjustments to reconcile operating income
to cash flows from operating activities:

Depreciation and amortization 304,838 1,260,007 205,106 Net change in assets and liabilities:

Account receivable 10,000 800
Grant receivable
Prepaids (982,585) (35,415)
Accounts payable 26,456 6,504 260,424 (146,673) 362,375 Claims payable 63,816
Net Cash Provided by (Used in) Operating Activities $1,586,297 $1,459,283 ($1,020,272) ($370,481) ($153,379) 150
OPEB/
Workers' Dental Employee Employee Radio Telephone Sewer Compensation Insurance Retirement Retirement Replacement Replacement Maintenance Total $2,824,303 $415,198 $3,360,000 $450,000 $685,400 $4,192,507 $21,853,233 (2,501,234) (438,400) ($2,000) (3,861,074) (513,918) (537,758) (3,633,678) (18,965,740) (199,312) (1,547,267)
270,853 1,138,881 1,810,990
394,610 (23,202) (2,000) 637,807 (63,918) 147,642 558,829 3,151,216 6,200 6,299
3,500,000
(680,313) (394,178) (1,088,034)
(680,313) (387,978) 2,418,265
(21,755)
(271,026)
(47,763)
(1,941,308)
191,839
(2,090,013)
506,563 30,318 51,884 39,893 15,458 21,145 1,572,712
506,563 30,318 51,884 39,893 15,458 21,145 1,572,712
901,173 7,116 (630,429) 677,700 (48,460) 168,787 170,851 5,052,180 12,875,053 663,409 1,823,026 579,167 601,949 457,507 38,475,156 $13,776,226 $670,525 $1,192,597 $1,256,867 $553,489 $626,294 $170,851 $43,527,336 $509,467 ($16,472) ($2,000) $637,807 ($63,918) $147,477 ($6,200) $1,371,956 1,769,951
($3,782) $788,237 795,255
1,000 1,000
(354,480) (1,372,480)
16,402 (2,948) (835) (223,208) 298,497
223,221 287,037
$394,610 ($23,202) ($2,000) $637,807 ($63,918) $147,642 $558,829 $3,151,216 151

Mission Bike Race, San Rafael

STATISTICAL SECTION

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

CITY OF SAN RAFAEL

NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
2016 (a) 2017 2018 2019
Governmental activities
Net investment in capital assets $193,707,175 $199,202,842 $217,170,376 $231,844,210 Restricted 31,286,725 29,225,643 25,549,583 23,288,874
Unrestricted (93,273,480) (112,913,181) (122,577,233) (118,215,177) Total governmental activities net position $131,720,420 $115,515,304 $120,142,726 $136,917,907 Business-type activities
Net investment in capital assets $10,958,058 $10,968,642 $10,951,518 $11,023,426 Unrestricted (1,136,050) (871,620) (886,848) (1,180,121) Total business-type activities net position $9,822,008 $10,097,022 $10,064,670 $9,843,305 Primary government
Net investment in capital assets $204,665,233 $210,171,484 $228,121,894 $242,867,636 Restricted 31,286,725 29,225,643 25,549,583 23,288,874
Unrestricted (94,409,530) (113,784,801) (123,464,081) (119,395,298) Total primary government net position $141,542,428 $125,612,326 $130,207,396 $146,761,212 (a) The City adjusted certain beginning balances during fiscal year 2015-2016.

Financial data shown for proceeding years were not adjusted for the presentation. ($130,000)
($30,000)
$70,000
$170,000
$270,000
$370,000
2016 (a) 2017 2018 2019 2020 2021 2022 2023 2024 2025
Thousands
Net investment in capital assets Restricted Unrestricted 156
□ ■ ■
2020 2021 2022 2023 2024 2025
$230,737,025 $228,252,998 $246,437,706 $259,204,102 $268,520,108 $276,990,873 23,522,748 36,175,158 36,668,766 46,773,333 48,596,168 49,052,769 (116,133,437) (107,929,957) (48,883,395) (24,466,269) (6,281,168) 1,335,242 $138,126,336 $156,498,199 $234,223,077 $281,511,166 $310,835,108 $327,378,884 $11,104,751 $11,174,601 $11,256,222 $11,454,000 $11,354,160 $11,424,066 (1,204,307) (2,205,300) (1,189,003) (653,194) (651,060) (294,899) $9,900,444 $8,969,301 $10,067,219 $10,800,806 $10,703,100 $11,129,167 $241,841,776 $239,427,599 $257,693,928 $270,658,102 $279,874,268 $288,414,939 23,522,748 36,175,158 36,668,766 46,773,333 48,596,168 49,052,769 (117,337,744) (110,135,257) (50,072,398) (25,119,463) (6,932,228) 1,040,343 $148,026,780 $165,467,500 $244,290,296 $292,311,972 $321,538,208 $338,508,051 157

CITY OF SAN RAFAEL

CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2016 2017 2018 2019
Expenses
Governmental Activities:

General government $12,952,983 $10,996,269 $9,835,941 $11,967,641 Public safety 55,399,798 44,366,734 53,231,197 49,899,296 Public works and parks 22,929,289 19,845,719 22,084,433 19,270,613 Community development 4,307,269 4,242,743 4,040,195 5,781,826 Culture and recreation 15,026,680 14,131,000 13,285,563 12,819,429 Interest on long-term debt 277,263 271,263 884,336 1,848,263 Total Governmental Activities Expenses 110,893,282 93,853,728 103,361,665 101,587,068 Business-Type Activities:

Parking services 4,762,851 4,188,152 4,627,716 5,038,553 Total Business-Type Activities Expenses 4,762,851 4,188,152 4,627,716 5,038,553 Total Primary Government Expenses $115,656,133 $98,041,880 $107,989,381 $106,625,621 Component Unit:

San Rafael Sanitation District $11,654,767 $11,255,194 $12,235,868 $12,601,257 Program Revenues
Governmental Activities:

Charges for services:

General government $526,495 $421,393 $517,542 $377,606
Public safety 4,939,658 4,264,939 5,628,478 5,304,832
Public works and parks 5,157,289 1,804,698 2,362,375 4,158,338 Community development 4,004,178 3,850,107 3,814,892 4,312,259 Culture and recreation 6,683,059 6,941,013 6,819,303 5,750,846 Operating grants and contributions 4,678,338 3,965,351 5,142,670 4,584,855 Capital grants and contributions 1,470,953 1,702,993 974,603 8,042,524 Total Government Activities Program Revenues 27,459,970 22,950,494 25,259,863 32,531,260 Business-Type Activities:

Charges for services:

Parking services 5,212,181 5,268,991 5,203,585 5,362,016 Total Business-Type Activities Program Revenues 5,212,181 5,268,991 5,203,585 5,362,016 Total Primary Government Program Revenues $32,672,151 $28,219,485 $30,463,448 $37,893,276 Component Unit:

San Rafael Sanitation District
Charges for services $15,414,530 $16,014,016 $16,829,908 $16,964,083 Operating grants and contributions 36,945 58,440 5,907
Capital grants and contributions 79,245 105,734 1,433,871 Total Component Unit Program Revenues $15,414,530 $16,130,206 $16,994,082 $18,403,861 Net (Expense)/Revenue
Governmental Activities ($83,433,312) ($70,903,234) ($78,101,802) ($69,055,808) Business-Type Activities 449,330 1,080,839 575,869 323,463 Total Primary Government Net Expense ($82,983,982) ($69,822,395) ($77,525,933) ($68,732,345) Component Unit Activities $3,862,215 $4,875,012 $4,758,214 $5,802,604 158
2020 2021 2022 2023 2024 2025
$15,629,601 $12,254,642 $10,458,884 $11,162,650 $14,901,980 $17,615,468 50,000,809 54,736,561 34,379,474 49,903,663 57,399,596 64,083,535 21,661,442 20,749,666 14,030,717 23,353,510 24,392,108 27,724,431 5,314,692 5,804,134 2,835,173 4,436,659 6,043,266 6,008,500 11,828,353 10,619,181 7,430,968 10,723,168 12,725,048 12,995,897 1,974,834 1,935,532 2,004,572 1,793,203 1,655,588 1,573,951 106,409,731 106,099,716 71,139,788 101,372,853 117,117,586 130,001,782 4,491,375 3,748,667 2,226,556 3,435,551 4,078,051 3,774,044 4,491,375 3,748,667 2,226,556 3,435,551 4,078,051 3,774,044 $110,901,106 $109,848,383 $73,366,344 $104,808,404 $121,195,637 $133,775,826 $13,853,263 $13,790,905 $12,892,687 $13,541,927 $15,592,949 $16,260,424 $394,882 $388,833 $1,039,816 $383,890 $411,655 $110,112 5,824,555 5,332,486 6,302,852 7,063,009 7,365,020 7,642,292 3,082,495 2,719,148 2,996,881 3,146,404 4,146,897 2,952,012 5,470,010 8,390,282 4,493,292 4,982,748 5,757,689 4,695,585 4,370,442 2,932,869 4,105,520 5,158,806 5,488,779 5,635,593 5,545,731 5,132,596 22,520,880 6,763,815 6,530,607 9,970,153 1,348,640 8,718,764 9,867,883 18,438,231 8,181,276 3,219,570 26,036,755 33,614,978 51,327,124 45,936,903 37,881,923 34,225,317 5,063,318 3,351,864 3,836,881 4,682,140 4,552,629 4,761,985 5,063,318 3,351,864 3,836,881 4,682,140 4,552,629 4,761,985 $31,100,073 $36,966,842 $55,164,005 $50,619,043 $42,434,552 $38,987,302 $16,874,361 $16,945,721 $16,458,113 $16,638,611 $16,657,102 $18,877,412 5,719 5,609 5,568 5,531 5,775 5,694
175,217 277,752 517,752 175,481 248,116 73,061
$17,055,297 $17,229,082 $16,981,433 $16,819,623 $16,910,993 $18,956,167 ($80,372,976) ($72,484,738) ($19,812,664) ($55,435,950) ($79,235,663) ($95,776,465) 571,943 (396,803) 1,610,325 1,246,589 474,578 987,941
($79,801,033) ($72,881,541) ($18,202,339) ($54,189,361) ($78,761,085) ($94,788,524) $3,202,034 $3,438,177 $4,088,746 $3,277,696 $1,318,044 $2,695,743 (Continued)
159

CITY OF SAN RAFAEL

CHANGES IN NET POSITION
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2016 2017 2018 2019
General Revenues and Other Changes in Net Position
Governmental Activities:

Taxes:

Property $19,998,567 $23,343,140 $24,627,373 $25,903,240 Sales 34,348,089 31,819,259 34,119,502 35,626,646
Paramedic 4,226,020 5,485,637 4,923,148 4,934,584
Transient occupancy 3,063,263 2,984,758 3,115,151 3,203,499 Franchise 3,418,277 3,610,824 3,726,841 3,627,254
Business license 2,824,664 2,774,803 2,790,212 2,788,496 Other 3,465,193 1,824,830 2,245,882 1,783,170
Investment earnings 300,091 210,628 556,745 1,450,434
Gain (loss) from sale of capital assets
Miscellaneous 1,387,315 2,448,604 5,991,713 5,904,968
Transfers 448,478 536,000 632,657 608,698
Total Government Activities 73,479,957 75,038,483 82,729,224 85,830,989 Business-Type Activities:

Investment earnings 14,723 10,810 24,436 63,870
Transfers (448,478) (536,000) (632,657) (608,698)
Total Business-Type Activities (433,755) (525,190) (608,221) (544,828) Total Primary Government $73,046,202 $74,513,293 $82,121,003 $85,286,161 Component Unit:

San Rafael Sanitation District
Property Taxes $1,367,172 $1,528,047 $1,620,584 $1,727,221 Investment earnings 46,225 97,090 234,379 519,793
Miscellaneous 10,690 7,768
Gain (loss) from sale of capital assets
Total Component Unit $1,413,397 $1,625,137 $1,865,653 $2,254,782 Change in Net Position
Governmental Activities ($9,953,355) $4,135,249 $4,627,422 $16,775,181 Business-Type Activities 15,575 555,649 (32,352) (221,365) Total Primary Government ($9,937,780) $4,690,898 $4,595,070 $16,553,816 Change in Net Position
Component Unit Activities $5,275,612 $6,500,149 $6,623,867 $8,057,386 160
2020 2021 2022 2023 2024 2025
$26,491,505 $30,993,516 $32,324,129 $33,023,030 $35,635,864 $36,503,556 33,784,770 39,599,113 44,110,471 45,632,867 44,554,220 45,905,011 4,923,092 5,153,448 5,109,836 5,224,387 5,315,689 5,414,694 2,410,745 1,797,578 2,976,234 3,396,479 3,592,883 3,583,020 4,029,050 3,973,806 4,209,979 4,424,917 4,581,586 4,761,953 2,824,722 2,575,341 2,645,636 2,583,546 2,791,927 2,775,503 2,152,617 2,996,950 3,108,543 2,975,282 2,937,428 3,049,543 1,907,591 388,645 (1,424,183) 1,708,860 5,283,676 6,635,209 26,784 989,991 41,673 191,839
2,470,926 2,813,015 2,965,697 3,233,349 3,242,511 2,925,920 586,387 538,405 521,209 521,322 582,148 573,993
81,581,405 90,856,601 97,537,542 102,724,039 108,559,605 112,320,241 71,583 4,065 8,802 8,320 9,864 12,119
(586,387) (538,405) (521,209) (521,322) (582,148) (573,993) (514,804) (534,340) (512,407) (513,002) (572,284) (561,874) $81,066,601 $90,322,261 $97,025,135 $102,211,037 $107,987,321 $111,758,367 $1,833,137 $1,888,197 $2,086,682 $2,129,197 $2,322,601 $2,442,140 876,369 48,614 (406,535) 1,328,202 2,201,511 1,898,333
489 11,759 110,928
(23,561)
$2,709,995 $1,936,811 $1,680,147 $3,469,158 $4,500,551 $4,451,401 $1,208,429 $18,371,863 $77,724,878 $47,288,089 $29,323,942 $16,543,776 57,139 (931,143) 1,097,918 733,587 (97,706) 426,067
$1,265,568 $17,440,720 $78,822,796 $48,021,676 $29,226,236 $16,969,843 $5,912,029 $5,374,988 $5,768,893 $6,746,854 $5,818,595 $7,147,144 161

CITY SAN RAFAEL

FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2016 2017 2018 2019
General Fund
Nonspendable $476,316 $508,446 $1,008,234 $37,271
Committed
Assigned 16,440,910 14,900,945 11,214,720 11,391,084
Unassigned 1,772,577 1,295,041 1,104,216
Total General Fund $18,689,803 $16,704,432 $12,222,954 $12,532,571 All Other Governmental Funds
Nonspendable $9,449 $302,366 $27,627
Restricted 27,552,245 $25,812,405 73,489,688 53,260,504 Committed 3,799,421 3,491,708 1,754,983 1,901,271
Assigned 119,183 115,103 115,942 118,139
Unassigned
Total all other governmental funds $31,480,298 $29,419,216 $75,662,979 $55,307,541 (a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis.
($5,000)
$15,000
$35,000
$55,000
$75,000
$95,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Thousands
Total Fund Balance
162
I □
2020 2021 2022 2023 2024 2025 (a)
$7,540 $377,861 $95,279 $78,057 $54,250 $70,759
8,321,000 9,415,000 9,753,000 9,837,000 10,125,000
9,799,140 7,226,153 24,270,840 17,272,274 20,837,172 18,341,628 920,885 664,667 5,686,854 5,377,432
$9,806,680 $16,845,899 $33,781,119 $27,767,998 $36,415,276 $33,914,819 $7,813 $89,761 $182,890 $3,506
34,288,302 $36,043,515 36,443,519 46,449,334 48,442,445 $48,898,624 1,884,153 1,831,036 1,514,355 4,008,844 8,209,257 4,676,853 120,920 116,842 117,755 119,248 121,562 126,205
(11,118) (70,059)
$36,290,070 $37,991,393 $38,165,390 $50,760,316 $56,776,770 $53,631,623 163
2016 2017 2018 2019
Revenues
Taxes and special assessments $65,866,218 $71,166,891 $74,893,789 $77,101,185 Licenses and permits 2,588,411 2,559,841 2,718,166 2,661,500 Fines and forfeitures 435,829 400,283 384,268 337,680
Use of money and properties 460,206 349,349 654,531 1,583,060 Intergovernmental 13,685,003 8,063,156 8,878,974 15,602,264 Charges for services 14,366,744 13,425,161 14,660,094 15,166,876 Other revenue 3,208,749 1,842,053 5,219,414 5,158,042
Total Revenues 100,611,160 97,806,734 107,409,236 117,610,607 Expenditures
Current:

General government 11,349,079 10,557,416 10,010,100 12,553,499 Public safety 47,071,166 49,018,153 51,805,708 51,678,876 Public works and parks 14,390,699 16,752,961 17,647,312 15,617,622 Community development 3,670,108 3,759,564 4,051,224 4,988,260 Culture and recreation 12,048,104 12,646,728 12,823,771 12,468,008 Capital outlay 4,813,757 2,100,926 22,815,967 38,701,047 Capital improvement/special projects 4,826,576 7,403,249 Debt service:

Principal 75,172 175,172 280,172 495,172
Interest and fiscal charges 277,263 271,263 1,005,636 2,356,207 Total Expenditures 98,521,924 102,685,432 120,439,890 138,858,691 Excess (deficiency) of revenues over
(under) expenditures 2,089,236 (4,878,698) (13,030,654) (21,248,084) Other Financing Sources (Uses)
Issuance of debt 46,565,800
Proceeds from sale of capital assets
Transfers in 7,533,364 9,287,007 68,351,964 15,482,297
Transfers (out) (6,582,555) (8,454,762) (68,373,222) (14,280,034) Total other financing sources (uses) 950,809 832,245 46,544,542 1,202,263 Net Change in fund balances $3,040,045 ($4,046,453) $33,513,888 ($20,045,821) Debt service as a percentage of
noncapital expenditures 0.4% 0.5% 1.3% 2.8%

CITY OF SAN RAFAEL

CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
164
Fiscal Year Ended June 30,
2020 2021 2022 2023 2024 2025
$76,410,697 $86,347,728 $93,604,982 $96,373,395 $98,481,864 $100,959,147 3,047,144 3,000,666 3,077,355 3,002,122 3,614,566 3,346,342 350,388 219,030 296,300 228,966 259,792 297,212
1,537,869 667,104 (1,597,714) 1,227,353 4,561,170 4,504,218 9,287,181 16,859,749 34,239,157 28,590,886 16,628,881 16,902,414 13,834,843 15,065,363 13,315,014 15,825,770 17,458,089 16,182,343 2,309,226 1,875,299 4,199,820 2,322,859 4,048,979 2,019,923 106,777,348 124,034,939 147,134,914 147,571,351 145,053,341 144,211,599 16,689,526 12,426,899 17,716,666 13,858,624 15,976,001 19,156,876 50,071,531 54,363,872 58,397,721 58,673,878 59,858,026 67,101,074 17,453,823 15,110,972 16,495,547 19,535,588 19,174,722 21,784,203 5,276,887 6,270,129 5,736,213 5,190,246 6,276,150 6,363,809 11,179,410 9,700,739 11,319,546 12,664,282 12,521,303 13,222,302 25,984,748 13,635,066 17,345,454 23,536,840 16,589,427 14,168,159 618,316 2,563,711 2,829,057 3,044,551 3,760,071 3,794,498 2,482,778 2,443,476 2,512,515 2,241,875 2,100,354 2,034,131 129,757,019 116,514,864 132,352,719 138,745,884 136,256,054 147,625,052 (22,979,671) 7,520,075 14,782,195 8,825,467 8,797,287 (3,413,453) 23,999 2,518,949
1,000,000
13,797,526 7,549,590 6,441,764 14,576,818 11,679,112 9,187,478 (12,585,216) (6,329,123) (5,114,742) (16,820,480) (8,331,616) (11,419,629) 1,236,309 1,220,467 2,327,022 (2,243,662) 5,866,445 (2,232,151) ($21,743,362) $8,740,542 $17,109,217 $6,581,805 $14,663,732 ($5,645,604)

3.0% 4.9% 4.6% 4.6% 4.9% 4.4%
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) 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% 2025 13,527,244,928 3,535,571,393 372,517,544 142,174,173 17,577,508,038 513,218,891 18,090,726,929 18,090,726,929 0.11766% (a)
(b)

Data Source: Marin County Assessor 2015/16 - 2024/25 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
$20,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Unsecured Property Secured Property
166
-.. ■-----------~
I - -
Fiscal School Misc. Special
Year City County (1) Districts Districts Total
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 0.8006 0.0667 1.3160 0.11746%
2024 0.154 0.295 0.8016 0.0657 1.3160 0.11774%
2025 0.154 0.295 0.8173 0.0612 1.3272 0.11766%
Notes:
(1)
Data Source: Marin County Assessors Office 2015/16 - 2024/25 Tax Rate Tables

CITY OF SAN RAFAEL

PROPERTY TAX RATES

ALL OVERLAPPING GOVERNMENTS

LAST TEN FISCAL YEARS
Total
Direct
Like other cities, San Rafael includes several property tax rate areas with different rates. A mean average is indicated.
167

CITY OF SAN RAFAEL

PROPERTY TAX RATES

DIRECT & OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS (RATE PER $100 OF ASSESSED VALUE) 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 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 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.02920 0.02520 0.00000 Marin Community College Bonds 0.01650 0.01420 0.03380 0.03390 0.02690 0.02650 0.02750 0.02580 0.02450 0.02370 Marin Healthcare Bond 0.02350 0.00930 0.02010 0.01900 0.01750 0.02180 0.02180 0.02070 0.01970 0.01520 Miller Creek School Bonds 0.04170 0.03830 0.02090 0.03450 0.03280 0.03030 0.01950 0.01830 0.01810 0.01840 Ross Elementary School 0.06150 0.06030 0.06190 0.06180 0.05710 0.05800 0.05760 0.05500 0.05680 0.05660 Ross Valley School Bonds 0.05550 0.05370 0.05680 0.05390 0.05270 0.05190 0.04870 0.05260 0.04100 0.03030 San Rafael Elementary Bonds 0.02570 0.05350 0.05030 0.07290 0.07050 0.06950 0.07400 0.06860 0.09580 0.09340 San Rafael High Bonds 0.04710 0.07100 0.05680 0.06170 0.06000 0.05830 0.04630 0.05030 0.07730 0.07250 Tamalpais Union High School 0.03130 0.02880 0.02690 0.02580 0.02390 0.02260 0.02060 0.01950 0.01750 0.07100 Total Direct & Overlapping Tax Rates 1.30280 1.32910 1.32750 1.36350 1.34140 1.33890 1.31600 1.34000 1.37590 1.32720 City's Share of 1% Levy Per Prop 13 0.12233 0.12233 0.12233 0.12232 0.12232 0.12231 0.12231 0.12231 0.12231 0.12231 Total Direct Rate 0.11672 0.11693 0.11709 0.11742 0.11724 0.11734 0.11734 0.11746 0.11774 0.11766 Notes:

Data Source: Marin County Assessors Office 2015/16 - 2024/25 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. 168

CITY OF SAN RAFAEL

PRINCIPAL PROPERTY TAX PAYERS
CURRENT FY 2024/25 AND FY 2015/2016
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 $327,142,477 1.81% $138,587,517 1.20% MGP XI Northgate LLC 238,888,198 1.32%
Kaiser 153,852,645 0.85%
NCP Multifamily LLC 118,536,664 0.66%
Pur San Rafael LLC 112,435,767 0.62%
State of CA Dept of Trans 75,547,957 0.42%
Bre Properties, Inc 71,371,069 0.39%
South Valley Apartments LLC 60,327,158 0.33%
Lofts Albert Park LLC 59,802,811 0.33%
1201 Fifth Avenue LLC 73,801,840 0.41%
Northbay Properties II 44,273,257 0.38%
Regency Center II Assoc LP 43,760,844 0.40%
Bay Apartment Communities Inc 42,312,980 0.37%
Northgate Mall Associates 137,532,142 1.20%
33 North Associates LLC 38,331,984 0.33%
MPB Associates LLC 51,207,486 0.45%
Sutter Health 51,869,712 0.45%
Barbara Fasken Trust 41,837,131 0.36%
Marin Sanitary Service 40,629,687 0.35%
Subtotal $1,291,706,586 7.14% $630,342,740 5.48%

Total Net Assessed Valuation:

Fiscal Year 2024-2025 $18,091,389,911
Fiscal Year 2015-2016 $11,506,957,436
FY 2024-2025 FY 2015-2016
169
Delinquent taxes
Fiscal as a Percent of
Year Rate Levies Allocations Collections Apportionments Delinquencies Allocations 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%
2025 1.00 (2) 32,808,865 (2) 32,808,865 (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 9.1669481

12.333896

15.500844

18.667792

21.83474

25.001688

28.168636

31.335585

34.502533
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Allocations Apportionments
170
____. -
-.,.,
---- -
----- ..... ~
- ...., -.,.,
-+- _..__

CITY OF SAN RAFAEL

RATIO OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
Governmental Activities
Pension Lease Lease and
Fiscal Note Obligation Revenue SBITA
Year Payable Bonds Bonds Liabilities Total
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 $5,734,584 59,663,600 2022 890,555 2,340,000 47,600,321 7,220,147 58,051,023
2023 687,158 1,805,000 44,852,378 6,919,980 54,264,516
2024 502,689 1,240,000 41,909,435 8,823,671 52,475,795
2025 329,583 640,000 38,756,491 8,154,498 47,880,572
Parking Total Percentage
Fiscal Services Note Primary of Personal Per
Year Bonds Payable Total Government Income (a) Capita (a) 2016 $5,692,853 $48,204 $5,741,057 $10,609,552 0.38% $229.11 2017 5,433,577 41,388 5,474,965 10,168,288 0.35% 210.20 2018 5,164,303 34,572 5,198,875 64,304,923 2.04% 1,224.65 2019 4,890,027 27,755 4,917,782 63,020,714 2.00% 1,194.00 2020 4,605,753 20,939 4,626,692 61,627,363 1.87% 1,101.71 2021 4,316,478 14,123 4,330,601 63,994,201 1.89% 1,143.12 2022 4,017,203 7,307 4,024,510 62,075,533 1.64% 977.66
2023 3,707,928 489 3,708,417 57,972,933 1.43% 854.39
2024 3,388,653 0 3,388,653 55,864,448 1.36% 816.49
2025 3,059,378 0 3,059,378 50,939,950 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.

Business-Type Activities
0 10
20 30
40 50
60 70
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Total Governmental
Total Business-Type
171
C
•

CITY OF SAN RAFAEL

COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 2025
2024-25 Assessed Valuation: 18,062,154,647
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2025 % Applicable (1) Debt 6/30/2025 Marin Community College District $537,150,000 17.077% $91,729,106 San Rafael High School District 286,188,156 78.643% 225,066,952 Tamalpais Union High School District 228,290,000 0.061% 139,257 Miller Creek School District (Formerly Dixie School District) 26,459,820 66.778% 17,669,339 Ross School District 14,156,071 1.175% 166,334
Ross Valley School District 37,231,160 0.010% 3,723
San Rafael School District 194,522,189 83.944% 163,289,706 Marin Healthcare District 462,540,000 20.389% 94,307,281 Marin Emergency Radio Authority Parcel Tax Obligations 28,535,000 17.054% 4,866,359 City of San Rafael 1915 Act Bonds 893,500 100.000% 893,500 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $598,131,557
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Marin County Certificates of Participation 68,945,000 17.054% $11,757,880 Marin County Pension Obligation Bonds 28,700,000 17.054% 4,894,498 Marin Community College District Certification of Participation 9,922,080 17.077% 1,694,394 San Rafael School District General Fund Obligations 2,235,000 83.944% 1,876,148 City of San Rafael General Fund Obligations 37,579,583 100.000% 37,579,583 (2) City of San Rafael Pension Obligations 640,000 100.000% 640,000 City of San Rafael Lease Liability 6,224,658
City of San Rafael SBITA Liability 1,929,841
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $66,597,002 Less: City of San Rafael obligations supported by enterprise revenues 3,065,000 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $63,532,002 TOTAL GROSS DIRECT DEBT 46,374,082
TOTAL NET DIRECT DEBT 43,309,082
TOTAL OVERLAPPING DEBT 618,354,477
GROSS COMBINED TOTAL DEBT 664,728,559 (3)
NET COMBINED TOTAL DEBT 661,663,559
(2) Includes $329,583 PG&E notes.

Ratios to 2024-25 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 3.31%
Total Gross Direct Debt ($46,374,082) 0.26%
Total Net Direct Debt ($43,309,082) 0.24%
Gross Combined Total Debt 3.68%
Net Combined Total Debt 3.66%
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: $18,062,154,647
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) $677,330,799 LESS AMOUNT OF DEBT SUBJECT TO LIMIT: 39,726,075
LEGAL BONDED DEBT MARGIN $637,604,724
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
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%
2025 677,330,799 39,726,075 637,604,724 6.23%
NOTE: (a)
Source: City of San Rafael's Finance Department

CITY OF SAN RAFAEL

COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2025
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 2016 $5,226,904 $3,739,321 $1,487,583 $250,000 $201,488 $451,488 3.29 2017 2,425,281 5,279,801 2,854,520 260,000 193,988 453,988 6.29 2018 4,320,695 5,219,721 899,026 270,000 186,188 456,188 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 3,551,709 1,010,785 320,000 134,288 454,288 2.22 2025 4,774,104 3,390,555 1,383,549 330,000 124,120 454,120 3.05 Notes: On March 26, 2003, the City Financing Authority issued lease revenue bonds for the design and construction of a new parking facility.

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

San Rafael City CouncilDecember 1, 2025

San Rafael City Council
December 1, 2025