HomeMy WebLinkAboutTC Agenda 2018-02-21 TOWN OF TIBURON Tiburon Town Council
Tiburon Town Hall February21,2018
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1505 Tiburon Boulevard
Regular Meeting
Tiburon, CA 94920 7:30 p.m.
TIBURON
TOWN COUNCIL
AGENDA
CALL TO ORDER AND ROLL CALL
Councilmelnber Fredericks,Councilmember Thier,Councilmember Welner,Vice Mayor Kulik, Mayor
Fraser
ANNOUNCEMENT OF ACTION TAKEN IN CLOSED SESSION IF ANY
ORAL COMMUNICATIONS
Persons wishing to address the Town Council on subjects not on the agenda may do so at this time.
Please note however, that the Town Council is not able to undertake extended discussion or action on
items not on the agenda. Matters requiring action will be referred to the appropriate Commission,Board,
Committee or staff for consideration or placed on a future Town Council meeting agenda. Please limit
your comments to three (3)minutes.
INTRODUCTION OF TOWN STAFF
• Megan Aceves,Building Permit Clerk
CONSENT CALENDAR
All items on the Consent Calendar may be approved by one motion of the Town Council unless a request
is made by a member of the Town Council,public or staff to remove an item for separate discussion and
consideration. If you wish to speak on a Consent Calendar item, please seek recognition by the Mayor
and do so at this time.
CC-1. 6 & 8 Rolling Hills Road — Approve amended parcel map (Community Development
Department)
ACTION ITEMS
AI-1. Town Audit Report — Recommendation to accept and file the Town's FY Basic Financial
Statements and Independent Auditor's Report (Director of Administrative Services Bigall)
AI-2. Rule 20A Credits — Consider authorizing Town Manager to execute agreement to purchase
Rule 20A credits from City of Rocklin (Office of the Town Manager)
1
TOWN COUNCIL REPORTS
TOWN MANAGER REPORT
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WEEKLY DIGESTS
• Town Council Weekly Digests—February 9&15, 2018
ADJOURNMENT
GENERAL PUBLIC INFORMATION
ASSISTANCE FOR PEOPLE WITH DISABILITIES
In compliance with the Americans with Disabilities Act, if you need special
assistance to participate in this meeting,please contact the Town Clerk at (415) 435-
7377. Notification 48 hours prior to the meeting will enable the Town to make
reasonable arrangements to ensure accessibility to this meeting.
AVAILABILITY OF INFORMATION
Copies of all agenda reports and supporting data are available for viewing and
inspection at Town Hall and at the Belvedere-Tiburon Library located adjacent to
Town Hall. Agendas and minutes are posted on the Town's website,
www.townoftiburon.org.
Upon request, the Town will provide written agenda materials in appropriate
alternative formats, or disability-related modification or accommodation, including
auxiliary aids or services, to enable individuals with disabilities to participate in
public meetings. Please send a written request, including your name, mailing
address,phone number and brief description of the requested materials and preferred
alternative format or auxiliary aid or service at least 5 days before the meeting.
Requests should be sent to the Office of the Town Clerk at the above address.
PUBLIC HEARINGS
Public Hearings provide the general public and interested parties an opportunity to
provide testimony on these items. If you challenge any proposed action(s) in court,
you may be limited to raising only those issues you or someone else raised at the
Public Hearing(s) described later in this agenda, or in written correspondence
delivered to the Town Council at,or prior to, the Public Hearing(s).
TIMING OF ITEMS ON AGENDA
While the Town Council attempts to hear all items in order as stated on the agenda,
it reserves the right to take items out of order. No set times are assigned to items
appearing on the Town Council agenda.
3
TOWN OF TIBURON
Town Council Meeting
February 21,2018
1505 Tiburon Boulevard
Tiburon,CA 94920 Agenda Item:CC-
STAFF REPORT
To: Mayor and Members of the Town Council
From: Community Development Department
Subject: Consider Approval of Amended Parcel Map for Properties at 6 and 8 Rolling
Hills Road; Joseph Lepera and Michele Hughes, owners; Assessor Parcel
NosZell-
BACKGROUND 058-111-23 & 24
Reviewed B :
By:
The Town is in receipt of an amended parcel map application from the owners of the subject lots.
On July 19, 2017,the Town Council adopted Resolution No. 24-2017 approving the amendments
to the original 1971. parcel map, primarily involving removal of a building envelope imposed on
the vacant lot at 8 Rolling Hills Road. The amended parcel map would formally remove the
building envelope from the parcel map while preserving a related height limit on residential
construction imposed at the time of the original map approval in 1971.
ANALYSIS
The Town Engineer and Director of Community Development have reviewed the amended parcel
map and found it in conformance with Town Council Resolution 24-2017 and with state and local
subdivision regulations.
Approval of this map is a ministerial (as opposed to discretionary) action. A resolution approving
the amended parcel map is attached as Exhibit 1.
ENVIRONMENTAL DETERMINATION
The acceptance of a parcel map is ministerially exempt from provisions of the California
Environmental Quality Act(CEQA)pursuant to state law.
FINANCIAL IMPACT
The Town would not be accepting any dedications as part of this amended parcel map. There
would be no financial impacts to the Town from map approval.
TOWN OF TIBURON PAGE 1 OF 2
Town Council Meeting
February 21,2018
RECOMMENDATION
Staff recommends that the Town Council moves to adopt the amended map as part of the Consent
Calendar.
Exhibits:
1. Draft Resolution.
2. Amended Parcel Map (2 sheets).
Prepared by: Scott Anderson,Director of Community Developmen
TOWN OF TIBITRON Page 2 of 2
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RESOLUTION NO. XX-2018 (DRAFT)
A RESOLUTION OF THE TOWN COUNCIL OF THE
TOWN OF TIBURON APPROVING AN AMENDED PARCEL MAP FOR PROPERTY
LOCATED AT 6 AND 8 ROLLING HILLS ROAD
ASSESSOR PARCEL NOS. 058-111-23 & 24
RECITALS
1. A parcel map proposing amendments to a 1971 parcel map, recorded in Book 5 at Page 90
of Parcel Maps (PM 5-90) in Marin County Records,has been submitted by the property
owners of the subject lots.
2. The submitted amended parcel map has been examined by the Town Engineer and Director
of Community Development and returned to the Town Clerk as required by the Tiburon
Subdivision Ordinance.
3. The Town Engineer and Director of Community Development have determined that the
amended parcel map is in substantial conformance with Town Council Resolution 24-2017,
which approved the amendments to the original map, and that all required conditions of
approval have been met. No new offers of dedication to the public are set forth on face of the
amended parcel map.
APPROVAL OF AMENDED PARCEL MAP
NOW, THEREFORE, BE IT RESOLVED that the Town Council of the Town of
Tiburon does hereby approve the map entitled "Amended Parcel Map of Parcel A and Parcel B
of Parcel Map Lands of Noah& Wheary", consisting of two (2) sheets prepared by Michael
Ford Land Surveying and dated October 22, 2017, and does direct that said amended map be
duly recorded with the Marin County Recorder.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Tiburon on , 2018 by the following vote:
AYES: COUNCILMEMBERS:
NAYS: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
JIM FRASER, MAYOR
TOWN OF TIBURON
Tiburon Town Council Resolution No. XX-2018 --1--/2018 1
77,7w7 ®a
ATTEST:
LEA STEFANI, TOWN CLERK
i
Tiburon Town Council Resolution No. XX--2018 --/--/2018 2
OWNERS! CERTIFICATE DIRECTOR OF COMMUNITY DEVELOPMENT CERTIFICATE COUNTY CLERKS CERTIFICATE
WEEIN THE UNDERSIGNED ARE THE SOLE OWNERS OF AND HAVE THE RIGHT TITLE AND INTEREST THIS AMENDED MAP IS IN SUBSTANTIAL CONFORMANCE WITH THE TOWN OF TIBURON I,THE UNDERSIGNED,CLERK OF THE BOARD OF SUPERVISORS OF THE COUNTY OF MARIN,STATE
T AND TO THE REAL PROPERTY INCLUDED WITHIN THE AMENDED SUBDIVISION SHOWN ON RESOLUTION NO.24-2017 APPROVED JULY 19,2017. OF CALIFORNIA,DO HEREBY CERTIFY THAT A GOOD AND SUFFICIENT BOND APPROVED BY AND IN
THIS MAP, NOTICE TI HEREBY GIVEN THAT SHEET 2 OF"PARCEL MAP LANDS RI NOAH AND THE AMOUNT FIXED BY SAID BOARD OF SUPERVISORS HAS BEEN FILED WITH SAID BOARD AND
WHERRY TOWN M NDED IN,FILED IN BOOK 5 OF PARCEL MAPS PAGE 90,MARIN COUNTY, SIGNED THIS DAY OF 2018 THAT SAID BOND BY ITS TERMS IS MADE TO INSURE TO THE BENEFIT OF SAID COUNTY OF
CALIFORNIA,IS AMENDED IN ACCORDANCE WITH THE TOWN Of TIBURON RESOLUTION N0. --------- —""""—'---------" MARIN AND IS CONDITIONED FOR THE PAYMENT OF ALL TAXES,WHICH MAY BE AT THE TIME OF
24-2017,SECTION 14-3.311 OF THE TOWN OF TIBURON MUNICIPAL CODE AND SECTION THE RECORDING OF THIS MAP A LIEN AGAINST THE TRACT OR SUBDIVISION Of LAND SHOWN
66469 OF THE SUBDIVISION MAP ACT,AS SHOWN ON SHEET 2 ATTACHED HERETO. SCOTT ERS
ANDON COMMUNITY DEVELOPMENT DIRECTOR HEREON OR PART THEREOF,BUT NOT YET PAYABLE.
THE NAMES OF THE PRESENT FEE OWNERS AFFECTED BY THIS AMENDED MAP ARE AS TOWN OF TIBURON WITNESS MY HAND AD SEAL THIS-----DAY OF----------------2018
FOLLOWS: SIGNED:______________________________________
CLERK OF THE BOARD OF SUPERVISORS OF THE
PARCEL A: JOSEPH LEPERA AND ANA C.LEPERA,TRUSTEES OF THE ROLLING HILLS COUNTY OF MARIN,STATE OF CALIFORNIA
TRUST,DOC.N0.2017-0014311,OFFICIAL RECORDS OF MARIN COUNTY,CALIFORNIA TOWN ENGINEER'S CERTIFICATE
BY--------—EBBE------------- BY--------------------- THIS AMENDED MAP HAS BEEN EXAMINED BY ME AND IS IN SUBSTANTIAL
JOSEPH A.LEPERA,TRUSTEE ANA C.LEPERA,TRUSTEE CONFORMANCE WITH THE TOWN OF TIBURON RESOLUTION NO.24-2017 APPROVED
JULY 19,2017. RECORD 1111E INTEREST CERTIFICATE
RARCEL B: MICHELE HUGHES,TRUSTEE OF THE MICHELE AND JUSTIN HUGHES TRUST, SIGNATURES OF OWNERS OF THE FOLLOWING INTERESTS HAVE BEEN OMITTED
DOC.NO.2016-0014539,OFFICIAL RECORDS OF MARIN COUNTY,CALIFORNIA SIGNED THIS EBBE__DAY OF----_--------------2018 UNDER THE PROVISIONS OF SECTION 66436(A)(i)OF THE SUBDIVISION MAP
—EBBE ACT: THEIR INTEREST IS SUCH THAT IT CANNOT RIPEN INTO A FEE TITLE
BY ____-------BEEP__ ___________ ______—EBBE_--_ AND SUCH SIGNATURES ARE NOT REQUIRED BY THE GOVERNING BODY.
MICHELE HUGHES,TRUSTEE PATRICK BARNES,DIRECTOR OF PUBLIC WORKS
TOWN OF TIBURON RECORDED NATIIRF OF INWR-T
JOSEPH&ANA LEPERA 5 P.M.90 DRIVEWAY EASEMENT
MICHELE HUGHES 759 O.R.581 ROADWAY&UTILITIES
OWNERS ACKNOWLEDGMENT THIS AMENDED MAP HAS BEEN EXAMINED BY ME ON BEHALF OF THE TOWN OF TOWN OF TIBURON 2448 O.R.326 SCENIC&OPEN SPACE
TIBURON AND THE AMENDMENTS ARE IN SUBSTANTIAL CONFORMANCE WITH THE
A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES ONLY THE IDENMTY OF SECTION 66469 OF THE SUBDIVISION MAP ACT AND THE TOWN OF TIBURON TOWN OF TIBURON 2448 O.R,326 PEDESTRIAN
THE INOIMWAL WHO SIGNED THE DOCUMENT TO MICH THIS CERTIFICATE IS ATTACHED,AND NOT THE RESOLUTION NO.24-2017 APPROVED JULY 19,2017 AND LOCAL ORDINANCE.
TRUTHFULNESS.ACCURACY,OR VAUDITY OF THAT DOCUMENT. M.W.W.D. 115 O.R.216 WATER PIPE LINES
STATE OF CALIFORNIA SIGNED THIS---------DAY OF---------------------,2018 RALPH&KATHRYN NOAH 2753 O.R.81 ROADWAY&UTILITIES
COUNTY OF MARIN
CYNTHIA WHERRY 1022 O.R.608 ROADWAY&UTILITIES
ON----EBBE_,2018,BEFORE ME,_______ A NOTARY PUBLIC, --------------------
RICHARD A.MOSHIER RCE 30696
PERSONALLY APPEARED__________________AND-------------------- COASTLAND CIVIL ENGINEERING
WHO PROVED 70 ME ON THE BASIS OF SATISFACTORY EVIDENCE T0.BE THE PERSON(S) STATE OF CALIFORNIA SURVEYOR'S STATEMENT
WHOSE NAMES)IS/ARE SUBSCRIBED TO THE WITHIN INSTRUMENT AND ACKNOWLEDGED
TO ME THAT HE/SHE/THEY EXECUTED THE SAME IN HIS/HER/THEIR AUTHORIZED THIS AMENDED PARCEL MAP AMENDS THE PARCEL MAP RECORDED APRIL 28,1971 IN
CAPACITY(IES)AND THAT BY HIS/HER/THEIR SIGNATURE(S)ON THE INSTRUMENT THE BOOK 5 OF PARCEL MAPS PAGE 90,MARIN COUNTY RECORDS TO REMOVE THE
PERSON(S)OR THE ENTITY UPON BEHALF OF WHICH THE PERSON(S)ACTED,EXECUTED BUILDING ENVELOPE ON PARCEL"A'AND REVISE THE BUILDING HEIGHT RESTRICTION
THE INSTRUMENTS. ON PARCEL"A",IN ACCORDANCE NTH THE TOWN OF TIBURON RESOLUTION NO.
TOWN CLERK'S STATEMENT 24-2017 AND SECTION 66469 OF THE SUBDIVISION MAP ACT AND THE TOWN OF
I CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA TIBURON MUNICIPAL CODE SECTION 14.3-311.
THAT THE FOREGOING PARAGRAPH IS TRUE AND CORRECT. THE TOWN COUNCIL OF THE TOWN OF TIBURON.STATE OF CALIFORNIA,AT A
REGULAR MEETING HELD ON THE-----DAY OF-------------2018 EXAMINED THIS AMENDED PARCEL MAP WAS PREPARED BY ME OR UNDER MY DIRECTION AND IS
WITNESS MY HAND AND OFFICIAL SEAL THE"AMENDED PARCEL MAP OF PARCEL A AND PARCEL B OF PARCEL MAP LANDS COMPILED FROM RECORD DATA IN CONFORMANCE WITH THE REQUIREMENTS OF THE
OF NOAH AND WHEARY AND THE TOWN COUNCIL BY RESOLUTION N0,_________ SUBDIVISION MAP ACT AND LOCAL ORDINANCE AT THE REQUEST OF JOSEPH LEPERA IN
__________ DULY PASSED AT THE MEETING AFORESAID,APPROVED THIS MAP. OCTOBER,2017,1 HEREBY STATE THAT ALL MONUMENTS SHOWN HEREON ARE OF THE
SIGNATURE
------ CHARACTER AND OCCUPY THE POSITIONS INDICATED AND ARE SUFFICIENT TO ENABLE
THE SURVEY TO BE RETRACED.
SIGNED THIS--_-----DAY Of----------------------2018
OWNERS ACKNOWLEDGMENT ----------------------------------BY:_--__-_--____-_-__
A NOTARY PUBLIC OR OTHER OFFICER COMPLETNG THIS CERTIFICATE VERIFIES ONLY THE IDENTITY OF TOWN CLERK OF THE TOWN OF TIBURON
THE INOMWAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE IS ATTACHED,AND NOT THE MICHAEL E.FORD P.L.S.7237
TRUTHFULNESS.ACWRACY OR VAJOTY OF THAT DOCUMENT.
DATED:
STATE OF CALIFORNIA COUNTY TAX COLLECTOR'S CERTIFICATE
COUNTY OF MARIN 1,THE UNDERSIGNED,ON BEHALF OF THE TAX COLLECTOR OF THE COUNTY OF MARIN AND THE
CITIES THEREIN,STATE OF CALIFORNIA,HEREBY CERTIFY THAT THERE ARE NO LIENS FOR UNPAID
ON-------__----2018,BEFORE ME,------------------A NOTARY PUBLIC, TAXES,COUNTY OR CITY,OR SPECIAL ASSESSMENTS COLLECTED AS TAXES EXCEPT TAXES OR
PERSONALLY APPEARED__________________AND-------------------- SPECIAL ASSESSMENTS NOT YET PAYABLE AGAINST THE TRACT OR SUBDIVISION OF LAND SHOWN
WHO PROVED TO ME ON THE BASIS OF SATISFACTORY EVIDENCE TO BE THE PERSON(S) HEREON OR ANY PART THEREOF.
WHOSE NAME(S)IS/ARE SUBSCRIBED TO THE WITHIN INSTRUMENT AND ACKNOWLEDGED
TO ME THAT HE/SHE/THEY EXECUTED THE SAME IN HIS/HER/THEIR AUTHORIZED SIGNED THIS_DAY OF 2018
CAPACITY(IES)AND THAT BY HIS/HER/THEIR SIGNATURE(S)ON THE INSTRUMENT THE
PERSON(S)OR THE ENTITY UPON BEHALF OF WHICH THE PERSON(S)ACTED.EXECUTED AMENDED
THE INSTRUMENTS.
TAX COLLECTOR,MARIN COUNTY,CALIF.
I CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA PARCEL MAP
THAT THE FOREGOING PARAGRAPH IS TRUE AND CORRECT. BY: OF PARCEL A AND PARCEL B
WITNESS MY HAND AND OFFICIAL SEAL DEPUTY OF PARCEL MAP LANDS OF NOAH AND WHEARY
FILED IN BOOK 5 P.M.PG.90,M.C.R
SIGNATURE--------------- REMOVING THE BUILDING ENVELOPE AND
COUNTY RECORDER'S STATEMENT REVISING THE HEIGHT RESTRICTION NOTE
FILED THIS-----DAY OF-------_,2018.AT__— M.IN BOOK-------OF ON PARCEL A
MAPS,AT PAGES------IN THE OFFICE OF THE COUNTY RECORDER OF THE TOWN OF TIBURON
COUNTY OF MARIN,STATE OF CALIFORNIA.AT THE REQUEST OF THE TOWN OF COUNTY OF MARIN STATE OF CALIFORNIA
TIBURON. � DATE:OCTOBER 22,2017
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n'3 _ 2) THE PURPOSE THIS MAP IS TO AMEND 5 P.M.90 TO REMOVE
5 J z (1)THE BUILDING ENVELOPE ON PARCEL"A"AND(2),R EVISE
a 6 y y THE BUILDING HEIGHT RESTRICTION NOTE ON PARCEL A'. ALL
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'V 36 52'Sp"W £� CREATED BY 25 P.M.77-A,SUBSEQUENT TO THE FILING OF 5
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270,\ \ NOT LISTED IN THE OWNERS CERTIFICATE AND ME NOT
EL N W'14'W 20A1B' SIGNATORS TO THIS MAP.
4) REFERENCE IS MADE HEREIN TO TIBURON TOWN COUNCIL
RESOLUTION 24-2017.ADOPTED JULY 19.2017.OR ANY
SUCCESSOR DOCUMENT THERETO,WHICH PROVIDES GUIDANCE
�7 WITH RESPECT TO FUTURE BUILDING CONSTRUCTION ON
TONN OF TIBURON \\ \ IVI PARCEL O PARCEL A FROMSUBSQUENTFARCE TO REMOVAL OF THE BUILDING
OPEN SPACE ENVELOPE FROM PARCEL A
\ \ HUGHES TRUST �!
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1.505 Tiburon Boulevard February 21,2018
�f Tiburon, CA 94920 Agenda It
STAFF REPORT
To: Mayor and Members of the Town Council
From: Administrative Services Department
Subject: Recommendation to Accept and File the FY 2016-17 Basic Financial
Stat,4n its and Independent Auditor's Report
Reviewed By:
BACKGROUND
The Town's independent auditor, Marcello & Company Certified Public Accounts, conducted the
annual audit of the Town's financial statements for the fiscal year ended June 30, 2017. The
audit was performed in accordance with generally accepted auditing standards. These standards
require that they plan and perform the audit to obtain reasonable assurance as to whether the
financial statements are free of material misstatement. The independent audit involved
examining, on a test basis, evidence supporting amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation.
ANALYSIS
Attached are the audited financial statements for the Town of Tiburon for the fiscal year ended
June 30, 2017. The Town's Basic Financial Statements provide a presentation of the financial
results of the Town as a whole. The results of the Town's financial activities are presented in the
Government-Wide Statement of Net Position (page 12). Net assets are a good indicator of the
Town's financial position. The Town ended FY 2017 with approximately $54.34 million in net
assets, which is an increase of$1,396,169 as compared to FY 2015-16 Net Position.
The Government-wide Statement of Activities (page 1 ) is the equivalent to the private sector
Income Statement. This statement provides detailed accounting of the Town increase in net
assets.
The General Fund as presented in the audit report includes the General Operating Account and 12
reserve funds. The Balance Sheet of the Governmental Funds on Page 14 illustrates the balance
sheet for total General Funds and Other Governmental Fund. The Fund Balance Designations
report on page 39 of the audit report provides information on each of the funds that comprise the
General Fund. The Town, unless directed otherwise by the Town Council, will continue to keep
each of these funds separate for its own internal records. The General Fund's ending fund
balance as of June 30, 2017 was $15,680,819 as compared to $15,111,789 as of June 30, 2016, or
an increase of$569,021.
TOWN OF TIBURON PAGE 1 OF 2
Supplementary explanatory information is provided with the Management's Discussion and
Analysis (MD&A) beginning on page 3. The MD&A provides key highlights and a summary
view of performance of financial activities for the year ended June 30, 2017.
The auditors have issued a report that includes required communications concerning their
responsibility under generally accepted accounting standards, significant changes in accounting
policies and unusual transactions, management judgments and accounting estimates, significant
audit adjustments, and other issues related to performance of the audit. In the area of accounting
practices and internal controls, there are no findings as to material weaknesses. This conclusion
is known as a"clean audit".
FINANCIAL IMPACT
There is no fiscal impact to the Town by having the Council accept this financial audit report.
RECOMMENDATION
Staff recommends that the Town Council:
1. Receive a brief presentation on the FY 2017-18 Audit of the Town's Financial Statements
by Auditor Ralph Marcello
2 Move to accept the Fiscal Year 2016-17 annual financial audit as prepared by Marcello &
Company, C.P.A.'s.
Exhibits: Report and General Purpose Financial Statements of the Town of Tiburon for Fiscal
Year ended June 30, 2017
Prepared By: Heidi Bigall, Director of Administrative Services
m....�._....._--------__......._..__...._......_......_...._..........------ m................................
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TOWN OF TIBURON
California
Annual Financial Report
June 30, 2017
Town Council
Jim Fraser Mayor
Emmett O'Donnell Vice Mayor
Alice Fredericks Member
Appointed Official
Town Manager
Greg Chanis
i
TOWN OF TIBURON
Table of Contents
INDEPENDENT AUDITOR'S REPORT..................................................................... ..................... 1-2
MANAGEMENT'S DISCUSSION AND ANALYSIS (unaudited)
Required Supplementary Information, as prepared by management....................................... 3-11
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Statementof Net Position ........................................................................................................... 12
Statementof Activities ................................................................................................................ 13
FUND FINANCIAL STATEMENTS
Balance Sheet- Governmental Funds........................................................................................ 14
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position .............................................................................................. 15
Statement of Revenue, Expenditures, and Change
in Fund Balances -Governmental Funds................................................................................. 16
Reconciliation of the Statement of Revenue, Expenditures, and Change in
Fund Balances of Governmental Funds to the Statement of Activities .................................... 17
Statement of Fiduciary Assets and Liabilities-Agency Funds.................................................... 18
NOTES TO FINANCIAL STATEMENTS..................................................................................... 19-39
REQUIRED SUPPLEMENTARY INFORMATION(unaudited)
Schedule of Proportionate Share of the Net Pension Liability,
and Schedule of Contributions......................................................................................40-41
Schedule of Funding Progress-Other Postemployment Benefits Plan...................................... 42
Budgetary Comparison Information .......................................................................................43-45
OTHER SUPPLEMENTARY INFORMATION
Combining Funds Financial Statements
General Fund:
CombiningBalance Sheet.............................................................................................. 46
Combining Statement of Revenue, Expenditures, and Change in Fund Balance........... 47
Nonmajor Governmental Funds:
CombiningBalance Sheet.........................................................................................48-49
Combining Statement of Revenue, Expenditures, and Change in Fund Balances.... 50-51
r MARCELLO & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
2701 Cottage Way, Suite 30/ Sacramento, California 95825
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor
Members of the Town Council
Town of Tiburon, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each majorfund,
and the aggregate remaining fund information of the Town of Tiburon, California, as of and for the year
ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the
Town's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America;this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based upon our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we pian and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness
of the entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
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Honorable Mayor
Members of the Town Council
Town of Tiburon, California
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate remaining
fund information of the Town of Tiburon, as of June 30, 2017, and the respective changes in financial
position thereof for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, pension schedules and schedules of funding progress, other postemployment
benefits plan schedule of funding progress, and the respective budgetary comparison information of the
general and major funds as listed in the table of contents be presented to supplement the basic financial
statements. Such information, although not 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 historic context. We
have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Town of Tiburon's basic financial statements. The combining nonmajor fund
financial statements are presented for purposes of additional.analysis and are not a required part of the
financial statements.
The combining nonmajor fund financial statements are the responsibility of management and were
derived from and relate directly to the underlying accounting and other records used to prepare the basic
financial statements. Such 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 financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the combining
nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
Certified Public Accountants
Sacramento, California
September 21 2017
2
MANAGEMENT'S DISCUSSION & ANALYSIS
As Prepared by Management
(unaudited)
Town of Tiburon
Management's Discussion and Analysis
As management of the Town of Tiburon, we offer readers of these financial statements this narrative overview and
analysis of the financial activities of the Town for the fiscal year ended June 30, 2017 (FY 2017). We encourage
readers to consider the information presented here in conjunction with the Town's financial statements, which
follow this discussion and analysis.
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the Town's basic financial statements, which
consist of three components:
1) Government-wide Financial Statements
2) Fund Financial Statements
3) Notes to the Basic Financial Statements
This report also contains required and other supplementary information in addition to the Basic Financial
Statements.
Government-wide Financial Statements
The Government-wide Financial Statements consist of the Statement of Net Position and the Statement of
Activities. These statements are designed to provide readers with a broad overview of the Town's finances in a
manner similar to private sector businesses. They provide information about the activities of the Town as a whole
and present a longer-term view of the Town's finances.
The Statement of Net Position presents information on all of the Town's assets and liabilities, with the difference
between the two reported as net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the Town is improving or deteriorating.
The Statement of Activities presents information about how the Town's net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change
occurs, regardless of the timing of related cash flows. Thus, some of the revenue and expenses reported in this
statement may result in cash flows only in future fiscal periods, such as revenue related to uncollected taxes and
interest expense incurred but not paid.
Fund 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 Town, like other governmental entities, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. Funds of governmental entities are divided into
three categories:
1) Governmental Funds
2) Proprietary Funds
3) Fiduciary Funds
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Town of Tiburon
Management's Discussion and Analysis
91
Governmental Funds
Most of the Town's basic services are included in Government Funds, which focus on (1) how cash and other
financial assets that can be converted readily to cash flows in and out, and (2) the balances remaining at year-
end that are available for spending. Consequently, the Government Funds statement provides a detailed short-
term view that helps to determine whether there are more or fewer financial resources that can be spent in the
near future to finance the Town's programs. Because this information does not encompass the additional long-
term focus of the Government-wide Statements, there is a schedule subsequent to each Government Funds
Financial Statement that reconciles it to the related Govermnent-wide Financial Statement.
Proprietary Funds
Services for which the Town charges customers a fee are generally reported in Proprietary Funds. Proprietary
Funds, like the Government-wide Financial Statements, provide both long-term and short-term financial
information. Currently the"Town does not require the use of Proprietary Funds.
Fiduciary Funds
Fiduciary Funds are used to account for resources held for the benefit of parties outside the municipality, such
as special assessment districts. Fiduciary Funds are not reflected in the Government-wide Financial Statements
because those resources are not available to support the Town's own programs.
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 follow the Basic
Financial Statements.
Required Supplementary Information
In addition to the Basic Financial Statements and accompanying Notes, this report also presents certain required
supplementary information other than this discussion and analysis, concerning the Town's budgetary comparison
schedule, its schedule of funding progress for its postemployment medical benefits plan, and its defined benefit
pension plan administered by the California Public Employees' Retirement Plan (CalPERS).
FINANCIAL HIGHLIGHTS
Government-wide Financial Statement Hiahlights
➢ The Govermnent-wide Statement of Net Position, appearing as the first statement of the Basic Financial
Statements, shows that the Town's total assets exceeded total liabilities by $54.34 million (net position).
Of this amount, $12.64 million was unrestricted net position and may be used to meet the Town's ongoing
obligations to the citizens and creditors of the Town.
➢ Town cash and investments totaled $23.44 million, and capital assets totaled $39.20 million on June 30,
2017,representing 37.0 percent and 62.0 percent of the Town's total assets, respectively.
➢ The Town's liabilities totaled approximately $9.77 million and consist of accounts payable, refundable
deposits, compensated absences, net OPEB plan liability, and net pension plan liability as required by
GASB 68.
4
Town of Tiburon
Management's Discussion and Analysis
➢ The Government-wide Statement of Activities shows that total Town revenue was approximately $11.92
million (general revenue of $9.56 million and program revenue of $2.36. million) compared with total
expenses of approximately $10.52 million, resulting in an increase in net position of$1,396,169.
Fund Financial Statement Highlights
➢ At the close of FY 2017, the combined fund balance of the Town's Governmental Funds was $22.61
million, which represents an increase of$1,389,753 over the previous fiscal year. Of this combined fund
balance, approximately $15.68 million is from the General Fund, which is an increase of$569,021 from FY
2016. The detailed components of revenue and expenditures can be found in the accompanying Statement
of Revenue, Expenditures and Change in Fund Balances.
Town Highlights
➢ In FY 2017 the Town contributed $1.29 million to its Public Agency Retirement Services (PARS) Other
Post Employment Benefit (OPEB) trust. The Town achieved $98,500 in earnings and ended the year with
$1.39 million in the trust. This reduced our OPEB Net Obligation fi-om $2.01 Million in FY 2016 to
approximately $805,000 in FY 2017.
The Town completed the Blackfield Drive bicycle/pedestrian improvement project,which was substantially
funded by a Safe Routes to School Grant.
➢ The Town created the Tiburon Public Financing Authority in order to facilitate the refinancing of six
special assessment bond issues, which will provide property owners in each district a combined savings of
$2 million over the term of the bonds.
➢ The Town contributed an additional $190,000 above its required contribution towards its CalPERS
unfunded pension liability. The Council indicated its desire to make similar contributions over the years, as
financial resources allow, in order to save on the interest expense charged by CalPERS which is currently
7.375%
➢ The Tiburon Ferry Terminal Walkway project was substantially completed in FY 2017 and was funded
with Measure"A"Transportations finds.
➢ The Town experienced the resignation of Councilmember Frank Doyle in May and Erin Tollini in June
2016. Both COUncilmember's terms were to expire in November 2019.
FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE
The Town has presented its financial statements in accordance with Governmental Accounting Standards Board
(GASB) Statement No. 34, Basic Financial Statement - Management's Discussion and Analysis -for State and
Local Governments.
Net Position
For financial statements beginning with the year ended June 30, 2015, the Town has implemented GASB 68,
Accounting and Financial Reporting for Pensions — an amendment of GASB Statement No. 27. The intention of
this Statement is to improve the decision-making usefulness of information in employer and governmental non-
employer contributing entity financial reports and enhance its value for assessing accountability and inter-period
equity by requiring recognition of the entire net pension liability and a more comprehensive measure of pension
expense.
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Town of Tiburon
Management's Discussion and Analysis
Net position is a measure of a government's financial position and, over time, a trend of increasing or decreasing
net position is an indicator of the financial health of the organization. In the case of the Town of Tiburon, assets
exceeded liabilities and deferred inflows by $54,340,329, an increase of$1,396,169 over the previous fiscal year's
net position. By far the largest portion (72.1 percent) of the Town's net position reflects its investment in capital
assets, e.g., land, buildings, roadways, drainage systems, and equipment). The Town uses capital assets to provide
services to its citizens. Consequently, these assets are not available for future appropriations. The Town carries no
debt related to its capital assets.
A condensed presentation of the Town's Net Position is presented in the following table comparing last fiscal year
to the most recently completed fiscal year:
Statement of Net Position
Comparison of FY 2017 and FY 2016
June 30 Amount Percent
2017 2016 Change Change
Assets
Current and other assets $ 24,047,821 $ 22,748,946 $ 1,298,875 6%
Capital assets, net 39,201,213 40,160,394 (959,181) -2%
Total assets 63,249,034 62,909,340 339,694 1%
Deferred outflows related to pension* 1,804,466 753,153 1,051,313 140%
Total assets and deferred outflows 65,053,500 63,662,493 1,391,007 2%
Liabilities
Current and other liabilities 1,530,234 1,611,702 (81,468) -5%
Noncurrent liabilities 1,077,591 2,259,077 (1,181,486) -52%
Net pension liability 7,159,119 5,412,997 1,746,122 32%
Total liabilities 9,766,944 9,283,776 483,168 5%
Deferred inflows related to pension* 946,227 1,434,557 (488,330) -34%
Total liabilities and deferred inflows 10,713,171 10,718,333 (5,162) 0%
Net Position
Net investment in capital assets 39,201,213 40,160,394 (959,181) -2%
Restricted 2,500,490 2,940,812 (440,322) -15%
Unrestricted 12,638,626 9,842,954 2,795,672 28%
Total net position $ 54,340,329 $ 52,944,160 $ 1,396,169 3%
*See Note 10
➢ Total assets increased by l percent or $0.34 million over the prior year. Deferred outflows related to
CalPERS pensions increased by 140 percent, or$1.05 million.
➢ Capital assets decreased by $0.96 million or 2 percent over last fiscal year. This is due to a significantly
reduced investment in infrastructure in FY 2017. In FY 2017 the Town's depreciation expense for Capital
Assets exceeded its investment, resulting in this decrease.
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2
Town of Tiburon
Management's Discussion and Analysis
Total liabilities increased by $0.48 million or 5 percent from the previous year. This increase is primarily
due to the Town's increase in net pension liability of$1.75 million being offset by the Town's decrease in
Net OPEB Obligation due to the contribution of$1.3 million in the PARS hrrevocable Trust.
General Government Functions
A condensed presentation of the Town's Governmental Activities is provided in the following table, which
compares the current fiscal year over the prior year:
Statement of Activities
Comparison of FY 2017 and 2016
June 30 Amount Percent
2017 2016 Change Change
Revenue
Program revenue $ 2,355,717 $ 2,747,647 $ (391,930) -14%
General revenue 9,560,918 8,594,111 966,807 11%
Total revenue 11,916,635 11,341,758 574,877 5%
Expenses
General government 4,962,103 3,753,284 1,208,819 32%
Public Safety 2,682,296 3,532,421 (850,125) -24%
Public Works 1,271,111 1,722,922 (451,811) -26%
Capital Improvements 44,842 630,248 (585,406) -93%
Depreciation 1,560,114 1,390,942 169,172 12%
Total expenses 10,520,466 11,029,817 (509,351) -5%
Change in Net Position 1,396,169 311,941 1,084,228 348%
Net Position - beginning 52,944,160 52,632,219 311,941 1%
Net Position -end of year $ 54,340,329 $ 52,944,160 $ 1,396,169 3%
➢ Program Revenue decreased by $391,930 or 14 percent over the prior year. This decrease was due to a
reduction in operating grant revenue related to public works projects.
➢ General Revenue increased by $966,807 or l l percent from the previous fiscal year. The Town continued
to see greater than anticipated increases in General Revenue, particularly in property, sales, transient
occupancy,and property transfer taxes, along with investment income.
Total expenses decreased by $509,351 or 5 percent over the previous year. The Public Works and Public
Safety Departments realized reduction in expenses of$450,000 and $850,000, respectively. A significant
portion of those decreases was due to the Department's share of the reduced OPEB Net Pension Liability.
General Government expenses increased by $1.2 million due to the entire contribution to the OPEB trust
being expensed through the Non-Departmental Division, which is included in the General Government
category.
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Town of Tiburon
( Management's Discussion and Analysis
FINANCIAL ANALYSIS OF THE GENERAL FUND
Revenue
The general fund is the main operating fund of the Town. The general fund consists of the general operating
account and 11 reserve funds. During FY 2017, the Town received general fund revenue of$10,463,635, which
represents an increase of$714,757, or 7 percent over the previous fiscal year.
The table below compares general fund revenue by category for the fiscal years ended June 30, 2017 and 2016.
General Fund Revenue Comparison
June 30 Amount Percent
2017 2016 Change Change .
Property taxes $ 5,451,487 $ 5,035,073 $ 416,414 8%
Othertaxes 1,723,923 1,768,514 (44,591) -3%
Franchise fees 788,866 761,634 27,232 4%
Fines and penalties 174,508 109,900 64,608 59%
Investment earnings 114,676 65,159 49,517 76%
Intergovernmental 202,811 198,884 3,927 2%
Licenses and permits 1,219,755 1,084,780 134,975 12%
Charge for services 447,283 494,649 (47,366) -10%
Other revenue 340,326 230,285 110,041 48%
$ 10,463,635 $ 9,748,878 $ 714,757 7%
➢ Property Taxes. In FY 2017 the Town realized an 8 percent increase in overall property tax revenue.
Secured Property Taxes, the I percent of assessed valuation charged on property, increased by $219,422, or
6 percent. Secured property tax represents approximately 67.5 percent of all property tax revenue received
during the year by the Town.
i Other Taxes. Overall the Town recorded a 3 percent decrease in Other Taxes. Within this revenue
category the Town realized decreases in sales and transient occupancy tax revenue over the prior year.
➢ Franchise Fees. Franchise Fees increased by 4 percent over FY 2016. The Town receives fi-anchise fees
from PG&E, Mill Valley Refuse, and Comcast All categories of franchise fees saw increases over the
prior year.
➢ Fines and Penalties. Building department fines and penalties increased 59 percent in FY 2017, which was
after recording an 84 percent decrease in FY 2016.
➢ Investment Earnings. Investment Earnings were up 76 percent, or $49,517, due to rising interest rates on
funds invested with the State Local Agency Investment Fund(LAIF).
➢ Intergovernmental. Intergovernmental revenue increased by 2 percent in FY 2017. This category
includes minor State, Local Agency and grant revenue.
➢ License and Permits. The Town realized a 12 percent increase in license and permit revenue in FY 2017.
Most sources of revenue within this category were consistent with the previous year, except Building
Permits and Encroachment Permit revenue which increase by $87,000 and $37,000 respectively.
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Town of Tiburon
" Management's Discussion and Analysis
Charge for Services. This revenue category decreased by 10% in FY 2017. A reduction of$40,000 in
plan checking revenue accounts for most of the decrease.
Expenditures
General Fund expenditures increased by 6 percent or $586,826 in FY 2017. The two-year comparison table below
illustrates the expenditure categories by department for the fiscal years ended June 30, 2017 and 2016.
General Fund Expenditures Comparison
June 30 Amount Percent
2017 2016 Change Change
Town Administration $ 1,396,301 $ 1,564,923 $ (168,622) -11%
Community Development 1,189,135 1,164,434 24,701 2%
Public Safety 3,165,095 3,041,449 123,646 4%
Public Works 1,457,822 1,454,632 3,190 0%
Legislative 59,345 35,690 23,655 66%
Non-departmental 2,403,062 623,822 1,779,240 285%
Capital Improvements 354,117 1,553,101 (1,198,984) -77%
10,024,877 9,438,051 586,826 6%
Excess Revenue over
(under) Expenditures $ 438,758 $ 310,827 $ 127,931 41%
➢ Town Administration decreased by 11 percent, or $168,622, over FY 2016. The major contributing factor
to this decrease was in legal division. Legal expenses were $90,000 less in FY 2017 over the prior year.
Also contributing to the decrease was salary and benefit savings associated with the retirement of the
previous"Town Clerk and Town Manager
➢ Community Development increased by 2 percent. This is consistent with salary and benefit increases that
were granted during the year.
Public Safety expenses increased by 4 percent or $123,646 over FY 2016. There were no notable
expenditure increases other than negotiated salary and benefits.
Public Works expenditures remained fairly flat over the previous year. There were some operating projects
that were budgeted but not undertaken in FY 2017, which offset negotiated salary and benefit increases.
Non-Departmental expenses increased nearly three-fold over 2016. This is due to the funding of $1.3
million into the Town's Other Post Employment Benefits Plan(OPEB) hrrevocable Trust. Additionally,the
Town's contribution towards the Yellow School Bus Program ($205,000) became an operating expenditure
in FY 2017.
➢ General Fund Capital Improvement expenditures decreased by 77 percent or$1.2 million. Undergrounding
of utilities along Tiburon Boulevard from Lyford Drive to Ned's Way did not proceed during the fiscal
year, which was appropriated at $427,000 from General Fund reserves. The project is carried over to FY
2018.
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Town of Tiburon
3
Management's Discussion and Analysis
FINANCIAL ANALYSIS OF GOVERNMENTAL FUNDS
The following table presents a two-year comparison of the Town's governmental funds revenue and expenditures
for FY 2017 and 2016:
Total Governmental Funds
Comparison of FY 2017 and FY 2016
June 30 Amount Percent
2017 2016 Change Change
Revenue
Property Taxes $ 5,468,031 $ 5,051,617 $ 416,414 8%
Other Taxes 1,723,923 2,147,353 (423,430) -20%
Franchise Fees 788,866 761,634 27,232 4%
Fines and Forfeitures 174,508 109,900 64,608 59%
Interest Earnings 158,691 88,619 70,072 79%
Intergovernmental 834,152 327,650 506,502 155%
License and Permits 1,219,755 1,084,780 134,975 12%
Other Revenue 1,005,699 1,136,960 (131,261) -12%
Charge for Services 543,011 248,782 294,229 118%
Totals 11,916,636 10,957,295 959,341 9%
Expenditures
Town Administration 1,396,301 1,566,469 (170,168) -11%
Community Development 1,222,848 1,193,804 29,044 2%
Public Safety 3,165,095 3,041,449 123,646 4%
Public Works 1,512,510 1,477,436 35,074 2%
Legislative 61,705 39,398 22,307 57%
Non-departmental 2,522,649 708,127 1,814,522 256%
Capital Projects 645,775 2,855,589 (2,209,814) -77%
Totals 10,526,883 10,882,272 (355,389) -3%
Excess Revenue over
(under) Expenditures $ 1,389,753 $ 75,023 $ 1,314,730 1752%
ECONOMIC OUTLOOK AND NEXT YEAR'S BUDGET
The adopted budget for FY 2017-18 calls for an operating surplus of $185,422. General Fund revenues are
anticipated to increase $481,995 over the approved FY 2016-17 budget, and expenditures by $538,422. The
Town's largest tax generator is property taxes. The Town is anticipating the fiscal year 2017-18 tax roll to increase
by approximately four and one-half percent over the previous year. Other tax and non-tax revenues are expected to
grow moderately, in the range of one to two percent.
The Town's largest expenditure relates to employee salaries and benefits. Personnel costs are tied to labor
agreements with the Town's two organized employee groups and unrepresented Management and Mid-
Management employees. The Tiburon Police Association and the smaller Service Employee's International Union
are entering the third year of a three year agreement which expires on June 30, 2018. Unrepresented employees are
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Town of Tiburon
Management's Discussion and Analysis
covered under Resolution of the Town Council which expires on June 30, 2018. Negotiated salary increases under
all contracts were equal to the 2016 CPI for the San Francisco, Oakland, Bay area which was 2.7%.
The Town continues to have a healthy long-term financial position, and Staff aggressively monitors revenue and
expenditures. Recently implemented strategies to reduce unfunded liabilities related to employment costs continue
to improve the cost of providing the Town's largest expenditure—salary and benefits. The citizens of the Town are
fortunate that they are able to enjoy exceptional Town services, a balanced budget, and that vital Town
infrastructure continues to be maintained and improved.
CONTACTING THE TOWN'S FINANICAL MANAGEMENT
This financial report is designed to provide the citizens, taxpayers, customers, investors, and creditors of the Town
of Tiburon with a general overview of the Town's finances and to demonstrate the Town's accountability for the
money it receives. If you have questions about this report or need additional information, contact the Town of
Tiburon, Administrative Services Department, 1505 Tiburon Boulevard, Tiburon, CA 94920.
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
1
TOWN OF TIBURON
y� Government-wide Financial Statements
Statement of Net Position
June 30, 2017
Total
Governmental
Assets Activities
Current Assets
Cash and investments $ 23,444,144
Receivables 603,677
Total current assets 24,047,821
Noncurrent Assets
Capital assets not being depreciated 4,087,952
Capital assets, net of depreciation 35,113,261
Total noncurrent assets 39,201,213
Total assets 63,249,034
Deferred Outflows of Resources
Deferred pensions 1,804,466
Total assets and deferred outflows of resources 65,053,500
Liabilities
Current Liabilities
Accounts payable 379,815
Accrued liabilities 282,911
Deposits 776,500
Compensated absences-current 91,008
Total current liabilities 1,530,234
Noncurrent Liabilities
Compensated absences 273,025
Other postemployment benefits obligation 804,566
Net pension liability 7,159,119
Total noncurrent liabilities 8,236,710
Total liabilities 9,766,944
Deferred Inflows of Resources
Deferred pensions 946,227
Total liabilities and deferred inflows of resources 10,713,171
Net Position
Net investment in capital assets 39,201,213
Restricted 2,500,490
Unrestricted 12,638,626
Total net position $ 54,340,329
The accompanying notes are an integral part of these financial statements
12
TOWN OF TIBURON
Government-wide Financial Statements
Statement of Activities
Year Ended June 30, 2017
Program Revenue Net(Expense)
Charges Revenue and
for Operating Capital Change in
Functions/Programs Expenses Services Grants Grants Net Position
Governmental Activities:
General government $ 4,962,104 $ 1,491,054 $ - $ - $ (3,471,050)
Public safety 2,682,296 - 130,263 - (2,552,033)
Public works 1,271,111 734,400 - - (536,711)
Capital improvements 44,841 - - - (44,841)
Depreciation 1,560,114 - - - (1,560,114)
Totals $ 10,520,466 $ 2,225,454 $ 130,263 $ - (8,164,749)
General Revenue:
Property taxes 5,468,031
Sales taxes 909,875
Transient occupancy tax 807,776
Property transfer taxes 219,175
Franchise fees 788,866
Fines and forfeitures 174,508
Intergovernmental 292,053
Gasoline taxes 198,933
Investment earnings 158,691
Other revenue 543,010
Total general revenue 9,560,918
Change in Net Position 1,396,169
Net Position - beginning 52,944,160
Net Position end of year $ 54,340,329
The accompanying notes are an integral part of these financial statements
13
FUND FINANCIAL STATEMENTS
c
TOWN OF TIBURON
Balance Sheet
Governmental Funds
June 30, 2017
Tiburon Other Total
General Street Governmental Governmental
ASSETS Fund Impact Fund Funds Funds
Cash and investments $ 16,402,222 $ 2,589,100 $ 4,452,820 $ 23,444,142
Receivables 514,841 5,871 82,967 603,679
Total assets $ 16,917,063 $ 2,594,971 $ 4,535,787 $ 24,047,821
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 235,703 $ 17,840 $ 126,272 $ 379,815
Accrued liabilities 232,911 - 50,000 282,911
Deposits 767,630 - 8,870 776,500
Total liabilities 1,236,244 17,840 185,142 1,439,226
Fund Balances:
Nonspendable - - - -
Restricted - 2,577,131 2,500,490 5,077,621
Committed 3,000,000 - 1,476,015 4,476,015
Assigned 5,899,207 - 372,110 6,271,317
Unassigned 6,781,612 - 2,030 6,783,642
Total fund balances 15,680,819 2,577,131 4,350,645 22,608,595
Total liabilities and
fund balances $ 16,917,063 $ 2,594,971 $ 4,535,787 $ 24,047,821
The accompanying notes are an integral part of these financial statements
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TOWN OF TIBURON
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2017
Amounts reported for governmental activities in the statement of net position
are different because of the following:
Total fund balances- governmental funds (page 14) $ 22,608,595
(1) Capital assets used in governmental activities are not financial
resources and therefore, are not reported in the balance sheet: 39,201,213
(2) Long-term liabilities are not due and payable in the current period
and therefore, are not reported in the balance sheet:
Compensated absences (364,033)
Other post employment benefits obligation (804,566)
Net pension liability (7,159,119)
(3) Deferred outflows of resources reported in the statement of net position 1,804,466
(4) Deferred inflows of resources reported in the statement of net position (946,227)
Net position of governmental activities (page 12) $ 54,340,329
The accompanying notes are an integral part of these financial statements
15
TOWN OF TIBURON
Statement of Revenue, Expenditures, and Change in Fund Balances
Governmental Funds
Year Ended June 30, 2017
Tiburon Other Total
General Street Governmental Governmental
REVENUE Fund Impact Fund Funds Funds
Property taxes $ 5,451,487 $ - $ 16,544 $ 5,468,031
Other taxes 1,723,923 - - 1,723,923
Franchise fees 788,866 - - 788,866
Fines and forfeitures 174,508 - - 174,508
Investment earnings 114,676 15,611 28,404 158,691
Intergovernmental and agency 202,811 - 631,341 834,152
Licenses and permits 1,219,755 - - 1,219,755
Charges for services 447,283 558,191 225 1,005,699
Other revenue 340,326 - 202,685 543,011
Total revenue 10,463,635 573,802 879,199 11,916,636
EXPENDITURES
Current-
Town administration 1,396,301 - - 1,396,301
Community development 1,189,135 - 33,713 1,222,848
Public safety 3,165,095 - - 3,165,095
Public works 1,457,822 - 54,688 1,512,510
Legislative boards/commissions 59,345 - 2,360 61,705
Non-departmental 2,403,062 - 119,587 2,522,649
Capital improvement projects 354.117 36,440 255,218 645,775
Total expenditures 10,024,877 36,440 465,566 10,526,883
Excess Revenue over
(under) Expenditures 438,758 537,362 413,633 1,389,753
Other financing sources/(uses).
Operating transfers in 307,863 - - 307,863
Operating transfers (out) (177.600) - (130,263) (307,863)
Total other sources (uses) 130.263 - (130,263) -
CHANGE IN FUND BALANCES 569.021 537,362 283,370 1,389,753
Fund balances - beginning 15,111.798 2,039,769 4,067,275 21,218,842
Fund balances- end of year $ 15,680.819 $ 2,577,131 $ 4,350,645 $ 22,608,595
The accompanying notes are an integral part of these financial statements
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TOWN OF TIBURON
Reconciliation of the Statement of Revenue, Expenditures, and Change in
Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2017
Amounts reported for governmental activities in the statement of activities are difference because:
Change in fund balances- governmental funds (page 16) $ 1,389,753
Capital assets
(1) The acquisition of capital assets uses current financial resources but has
no effect on net position. 600,933
(2) The cost of capital assets is allocated over their estimated useful lives and
reported as depreciation expense in the statement of activities. (1,560,114)
Long-term obligations
(3) Increases and reductions against long-term liabilities and obligations use
current resources but have no effect on net position. 1,172,077
Measurement focus
(4) Deferred outflows, deferred inflows, and net pension liability activity are
reported in the statement of activities, and generally do not require the use
of current financial resources and therefore, are not reported as expenditures
in governmental funds. (206,480)
Change in net position of governmental activities (page 13) $ 1,396,169
The accompanying notes are an integral part of these financial statements
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TOWN OF TIBURON
Statement of Fiduciary Assets and Liabilities
Agency Funds
June 30, 2017
Tiburon
2016 Public
Consolidated Del Mar Facilities Peninsula Other Total
Reassessment Valley Financing Library Assessment Agency
District A/D Authority JPA Districts Funds
ASSETS
Cash and investments
with Town $ 723,950 $ 136,674 $ 189,837 $ (2,816) $ 135,966 $ 1,183,611
Cash held by trustee 10.008,598 - - - - 10,008,598
Other receivables 4,124 314 403 12,825 71 17,737
Total Fiduciary Assets $ 10.736,672 $ 136,988 $ 190,240 $ 10,009 $ 136,037 $ 11,209,946
LIABILITIES
Accounts payable $ 1,680 $ - $ - $ 9,896 $ - $ 11,576
Total Fiduciary Liabilities $ 1,680 $ - $ - $ 9,896 $ - $ 11,576
The accompanying notes are an integral part of these financial statements
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
The notes to the financial statements include a summary of significant accounting policies and other notes
considered essential to fully disclose and fairly present the transactions and financial position of the Town as
follows:
Note 1 - Defining the Financial Reporting Entity
Note 2 - Summary of Significant Accounting Policies
Note 3 - Stewardship, Compliance and Accountability
Note 4 - Cash and Investments
Note 5 - Capital Assets
Note '6 - Long-term Obligations
Note 7 - Special Assessment District Bond Obligations
Note 8 - Interfund Transfers
Note 9 - Postemployment Benefits Other Than Pensions
Note 10 - Cost-Sharing Multiple-Employer Defined Benefit Pension Plan
Note 11 - Commitments and Contingencies
Note 12 - Risk Management
Note 13 - Subsequent Events
Note 14 - New Pronouncements
Note 15 - Fund Balance Designations Section of the Balance Sheet
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
Note 9 - Defining the Financial Reporting Entity
The Town of Tiburon (the Town)was incorporated in 1964 under the laws of the State of California. Tiburon
operates under a Council-Manager form of government. The Town provides municipal services to its citizens
including police, public works, community development and general administrative support. These financial
statements present the financial status of the Town and its component unit, as discussed in the following
paragraph.
The Tiburon Public Facilities Financing Authority(the Authority) was established in 1990 pursuant to a joint
powers agreement between the Town and the former Tiburon Redevelopment Agency, to assist in the
clearance and rehabilitation of areas determined to be in a declining condition in the Town. Although the
component unit is legally separate from the Town, it is reported in the statement of fiduciary assets and
liabilities, and its board consists of members of the Town Council
The Town participates in the following Joint Powers Authority agreements (JPAs):
• the Belvedere-Tiburon Joint Recreation Committee
• the Bay Cities Joint Powers Insurance Authority (BCJPIA)
• the Association of Bay Area Governments (ABAG)
• the Marin Emergency Radio Authority (MERA)
• the Tiburon Peninsula Traffic Relief JPA
The financial activities of the JPAs are not included in the accompanying financial statements because they
are administered by governing boards which are separate from, and independent of the Town.
Note 2- Summary of Significant Accounting Polices
The accounting policies of the Town conform to accounting principles generally accepted in the United States
of America as applied to governmental agencies. The Governmental Accounting Standards Board(GASB)is
the accepted standard-setting body for establishing governmental accounting and financial reporting
principles. The more significant accounting policies of the Town are described as follows:
Financial Statements
The Town's basic financial statements consist of the following:
• Government-wide financial statements
• Fund financial statements
• Notes to the financial statements
The government-wide financial statements (ie, the statement of net position and the statement of activities)
report information on all of the non-fiduciary activities of the primary government. For the most part,the effect
of interfund activity has been removed from these statements. Governmental activities, which normally are
supported by taxes and intergovernmental revenue, are reported separately from business-type activities,
which rely to a significant extent on fees and charges for support. The statement of activities demonstrates
the degree to which the direct expenses of a given function or segment is offset by program revenue. Direct
expenses are those that are clearly identifiable with a specific function or segment. Program revenue
includes(1)charges to customers or applicants who purchase, use, or directly benefit from goods,services,
or privileges provided by a given function or segment and (2) grants and contributors that are restricted to
meeting the operational or capital requirements of a particular function or segment taxes.
Separate fund financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in the
fund financial statements.
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
Fund Accounting
The accounts of the Town are organized on the basis of funds, each of which is considered a separate entity.
The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise
its assets, liabilities, fund balance/equity, revenue, and expenditures or expenses, as appropriate.
Government resources are allocated to, and accounted for, in individual funds based upon the purposes for
which they are to be spent and the means by which spending activities are controlled. The funds are
organized as follows:
Governmental Funds
The General Fund is the Town's primary operating fund. It is used to account for all financial resources
except those required to be accounted for in another fund.
Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than
special assessments, expendable trusts or major capital projects) that are legally restricted to
expenditures for specific purposes.
Capital Projects Funds are used to account for revenue and expenditures restricted to the acquisition or
construction of major capital facilities (other than those financed by Proprietary or Trust funds).
Debt Service Funds are used to account for the accumulation of resources for, and the payment of,
governmental fund long-term debt, both principal and interest.
Fiduciary Funds
Agency Funds are used to account for assets administered by the Town in a trustee capacity or as an
agent for other governments, primarily special assessment districts. Agency Funds are custodial in
nature (assets and liabilities), and do not involve measurement of results of operations.
Basis of Accounting and Measurement Focus
Basis of accounting refers to when revenue and expenditures or expenses are recognized in the accounts
and reported in the financial statements. Basis of accounting relates to the timing of measurement made,
regardless of the measurement focus applied.
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenue is recorded when earned and expenses are recorded when a
liability is incurred regardless of the timing of related cash flows. Property taxes are recognized as revenue in
the year for which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements have been met.
In the fund financial statements, all Governmental Funds and Agency Funds are accounted for using the
modified accrual basis of accounting. Revenue is recognized when it becomes both measurable and
available to finance the expenditures of the current period (susceptible to accrual). Major revenue sources
susceptible to accrual include substantially all property taxes, taxpayer-assessed taxes (such as sales and
use, utility users, business license, transient occupancy, franchise fees and gas taxes), interest, special
assessments levied, state and federal grants, and charges for current services. Revenue from licenses,
permits, fines and forfeits is recorded as received. Expenditures are recorded when the related fund liability
is incurred. Fiduciary Fund revenue and expenses or expenditures (as appropriate) are recognized on the
basis consistent with the fund's accounting measurement objective.
All Governmental Funds are accounted for using a current financial resources measurement focus. This
means that only current assets and current liabilities are generally included on their balance sheets. Their
reported fund balance is considered a measure of"available spendable resources."
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
Governmental Fund operating statements present increases (revenue and other financing sources) and
decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a
summary of sources and uses of"available spendable resources" during a period.
The government-wide financial statement is accounted for on a flow of economic resources measurement
focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their
activity are included on their statement of net position.
Cash and Investments
Deposits in financial institutions, money market funds,and the State Treasurer's investment pool are reported
as cash and investments since funds can spend cash at any time without prior notice or penalty. All
investments with fiscal agents are also considered cash equivalents if they are liquid. Investments are stated
at fair value.
Restricted Assets
Certain cash and investments of the Town are classified as restricted because their uses are limited by
revenue sources. When an expense is incurred for purposes for which there are both restricted and
unrestricted cash assets available, restricted cash is used first, then unrestricted cash as it is needed.
Use of Estimates
Financial statement preparation in conformity with accounting principles generally accepted in the United
States of America requires the use of estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenue and expenditures/expenses during the reporting period. Actual results could
differ from those estimates.
Receivables and Payables
Property, sales, and use taxes related to the current fiscal year are accrued as revenue and accounts
receivable are considered available if received within 60 days of fiscal year end. Federal and State grants are
considered receivable and accrued as revenue when reimbursable costs are incurred under the accrual basis
of accounting in the government-wide statement of net position. The amount recognized as revenue under
the modified accrual basis of accounting is limited to the amount that is deemed measurable and available.
The Town considers these taxes available if they are received during the period when settlement of prior
fiscal year accounts payable and payroll charges normally occur. Grants,entitlements or shared revenue are
recorded as receivables and revenue in the general, special revenue, and capital projects funds when they
are received or susceptible to accrual.
Balances representing lending/borrowing transactions between funds outstanding at the end of the fiscal year
are reported as either"due to/due from other funds"(amounts due within one year), "advances to/from other
funds" (non-current portions of interfund lending/borrowing transactions),or"loans to/from other funds"(long-
term lending/borrowing transactions as evidenced by loan agreements).
Allowance for Doubtful Accounts
Management has elected to record bad debts using the direct write-off method. Accounting principles
generally accepted in the United States of America require that the allowance method be used to reflect bad
debts. However,the effect of the use of the direct write-off method is not materially different from the results
that would have been obtained had the allowance method been followed.
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TOWN OF TIBURON
.r Notes to Financial Statements
June 30, 2017
Property Taxes
Property taxes in the State of California are administered for all local agencies at the County level and consist
of secured, unsecured and utility tax rolls. The following is a summary of major policies and practices relating
to property taxes:
Property Valuations-are established by the Assessor of Marin County for the secured and unsecured
property tax rolls; the utility property tax roll is valued by the California State Board of Equalization.
Under the provisions of Article XIIIA of the State Constitution (Proposition 13, adopted by the voters
on June 6, 1978), properties are assessed at 100% of full value. From this base of assessment,
subsequent annual increases in valuation are limited to a maximum of 2%. However, increase to full
value is allowed for property improvements or upon change in ownership. Personal property is
excluded from these limitations and is subject to annual reappraisal.
Tax Levies - are limited to I% of full assessed value which results in a tax rate of$1.00 per$100
assessed valuation under the provisions of Proposition 13.Tax rates for voter-approved indebtedness
are excluded from this limitation.
Tax Levy Dates-are attached annually on January 1, preceding the fiscal year for.which the taxes are
levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on
both real and unsecured personal property. Liens against real estate, as well as the tax on personal
property, are not relieved by subsequent renewal or change in ownership.
y Tax Collections-are the responsibility of the Marin County's tax collector.Taxes and assessments on
secured and utility rolls, which constitute a lien against the property, may be paid in two installments:
The first is due on November 1 of the fiscal year and is delinquent if not paid by December 10; and
the second is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured
personal property taxes do not constitute a lien against property unless the taxes become delinquent.
Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal
year. Significant penalties are imposed by the County for late payments.
➢ Tax Levy Apportionments - due to the nature of the Town-wide maximum levy, it is not possible to
identify general-purpose tax rates for specific entities. Under State legislation adopted subsequent to
the passage of Proposition 13, apportionments to local agencies are made by each County auditor-
controller based primarily on the ratio that each agency represented of the total Town-wide levy for the
three fiscal years prior to fiscal year 1979.
Property Tax Administration Fees-the State of California fiscal year 1990-91 Budget Act authorized
Counties to collect an administrative fee for its collection and distribution of property taxes.
Capital Assets
Capital assets are reported in the government-wide statement of net position. Capital assets are stated at
historical cost, when available and at estimated replacement cost when original cost was not available.
Donated assets are stated at estimated market value at date of donation. The Town's policy is to capitalize
all capital assets with costs exceeding a minimum threshold of$5,000. Depreciation is recorded using the
straight-line method over the estimated useful lives of the assets,which range from five to seventy-five years.
Compensated Absences
Compensated absences represent the vested portion of accumulated vacation and sick leave. The Town's
method of calculating the liability is in accordance with GASB Statement No. 16, except that additional
accruals for salary-related payments associated with the payment of compensated absences, for example,
the employer's share of pension contributions, social security and medicare taxes, have not been accrued as
that amount is not considered significant or material to the financial statements taken as a whole. In
governmental fund types,the cost of vacation and sick leave benefits is recognized when payments are made
to employees.
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
Long-term Obligations
In the government-wide financial statements, long-term debt and obligations are reported as liabilities in the
applicable statement of net position. Bond premiums, issuance costs and discounts are deferred and
amortized over the life of the bond. In the fund financial statements,governmental fund types recognize bond
premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources.
Pension Plan
In government-wide financial statements, defined benefit pension plan overfunded or underfunded liabilities
are required to be recognized and disclosed using the accrual basis of accounting, regardless of the amount
recognized as pension expenditures on the governmental fund statements, which use the modified accrual
basis of accounting.
In general, the Town recognizes a net pension liability, which represents the Town's proportionate share of
the excess of the total pension liability over the fiduciary net position of the pension reflected in the actuarial
report provided by the California Public Employees Retirement System (CalPERS). The net pension liability
is measured as of the Town's prior fiscal year-end. Changes in the net pension liability are recorded, in the
period incurred, as pension expense or as deferred inflows of resources or deferred outflows of resources
depending on the nature of the change. The changes in net pension liability that are recorded as deferred
inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or
other inputs and differences between expected or actual experience) are amortized over the weighted
average remaining service life of all participants in the respective pension plan and are recorded as a
component of pension expense beginning with the period in which they are incurred.
For purposes of measuring the net pension liability and deferred outflows/inflows or resources relating to
pensions and pension expense, information about the fiduciary net position of the Town's pension plan with
CalPERS and additions to/deductions from the plan's fiduciary net position have been determined on the
same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of
employee contributions) are recognized when due and payable in accordance with the benefits terms.
Investments are reported at fair value.
Projected earnings on pension investments are recognized as a component of pension expense. Differences
between projected and actual investment earnings are reported as deferred inflows of resources or deferred
outflows of resources and amortized as a component of pension expense on a closed basis over a five-year
period beginning with the period in which the difference occurred. Each subsequent yearwill incorporate an
additional closed basis five-year period of recognition.
Major Funds
The Town's Major Funds are as follows:
General Fund-this fund is used to account for the general operations of the Town, and is used to
account for all financial resources except those required to be accounted for in another fund.
Tiburon Street Impact Fund-this fund is used to account for the collection of impact fees from permits
issued for construction projects within the Town limits, whose use is restricted for street projects.
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
Net Position and Fund Balances
The government-wide financial statements utilize a net position presentation. Net position represents the
difference between assets plus deferred outflow of resources, as compared to liabilities plus deferred inflow
of resources, and is displayed in the following three components:
• Net Investment in Capital Assets-this component groups all capital assets, reduced by accumulated
depreciation, and the outstanding balances of debt that are attributable to the acquisition,construction
or improvement of the assets.
• Restricted Net Position -this component represents net position that is subject to constraints either
(1) externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or
regulations of other governments or(2)imposed by law through constitutional provisions or enabling
legislation.
• Unrestricted Net Position-this component represents net position of the Town that is not restricted for
any other purpose.
When both restricted and unrestricted net position is available, restricted resources are used first, then
unrestricted resources as they are needed.
Governmental funds report fund balance as nonspendable, restricted, committed, assigned or unassigned,
based primarily on the extent to which the Town is bound to honor constraints on how specific amounts can
be spent and are described as follows:
• Nonspendable Fund Balances- amounts that cannot be spent because they are either(a) legally or
contractually required to be maintained intact or (b) not in spendable form such as long-term notes
receivable.
• Restricted Fund Balances - amounts that can be spent only for the specific purposes stipulated by
constitution, external resource providers, or through enabling legislation.
• Committed Fund Balances-amounts that can be used only for the specific purposes determined by a
formal action of the Town Council, to establish, modify or rescind a fund balance commitment.
• Assigned Fund Balances - amounts that are constrained by the government's intent to be used for
specific purposes but do not meet the criteria to be classified as restricted or committed, as
determined by a formal action or policy of the Town Council or its appointed official.
• Unassigned Fund Balances - the residual classification for the government's general fund and
includes all spendable amounts not contained in the other classifications.
The Town has set aside amounts for emergency situations or revenue shortages or budgetary imbalances,
commonly referred to as revenue stabilization. The authority to set aside those amounts generally comes
from statue, ordinance, resolution, constitution or policy. Stabilization amounts may be expended with
Council approval only when certain specific circumstances exist as determined by Council at that time. When
expenditures are incurred for purposes for which both restricted and unrestricted amounts are available, it is
the Town's policy to expend restricted fund balances first. When expenditures are incurred for purposes for
which committed, assigned, or unassigned amounts are available, it is the Town's policy to expend
committed, then assigned, then unassigned amounts in that order.
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
Note 3 -Stewardship, Compliance and Accountability
Budgetary Information
The Town follows these procedures annually in establishing the budgetary data reflected in the financial
statements:
1. The Town Manager submits to the Town Council a proposed draft budget for the fiscal year commencing
the following July 1. The budget includes proposed expenditures and the means of financing them.
2. The Town Council reviews the proposed budget at special scheduled sessions which are open to the
public. The Council also conducts a public hearing on the proposed budget to obtain comments from
interested persons.
3. Prior to July 1, the budget is adopted through the passage of a resolution.
4. From the effective date of the budget, which is adopted and controlled at the department level, the
amounts stated therein as proposed expenditures become appropriations to the various Town
departments. The Town Council may amend the budget by resolution during the fiscal year. The Town
Manager may authorize transfers from one object or purpose to anotherwithin the same department,and
between departments within the General Fund. All appropriations lapse at year end.
Economic Dependency
In fiscal year 2016-17, the Town received 52% of its total general fund revenue from one source; property
taxes. Any reduction in assessed property values or reductions in the Town's property tax share due to the
State's ongoing budget issues could have serious consequences to the Town's operating budget.
Revenue Limitations Imposed By California Proposition 218
Proposition 218,which was approved by the voters in November 1996, regulates the Town's ability to impose,
increase, and extend taxes, assessments, and fees. Any new, increased, or extended taxes, assessments,
and fees subject to the provisions of Proposition 218, require voter approval before they can be implemented.
Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter
initiative process and may be rescinded in future years by the voters.
Note 4 - Cash and Investments
The Town follows the practice of pooling cash and investments of all funds except for restricted funds required
to be held by outside custodians, fiscal agents or trustees under the provisions of bond indentures. Cash and
investments are classified in the accompanying financial statements as follows:
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
Statement of Net Position
Cash and investments $ 23,444,142
Statement of Fiduciary Assets
Cash and investments with Town 1,183,611
Cash investments with fiscal agent 10,008,598
$ 34,636,351
Cash and Investments are comprised of the following:
Deposits with financial institutions:
money market mutual funds $ 100,000
checking accounts 377,589
Investment with Local Agency Investment Fund 24,150,164
US Treasury money market funds 10,008,598
$ 34,636,351
Investment in State Investment Pool
The Town is a voluntary participant in the Local Agency Investment Fund (LAIF). LAIF, established in 1977,
is regulated by California Government Code Section 16429 and under the day to day administration of the
California State Treasurer. There is a five member Local Investment Advisory Board that is chaired by the
State Treasurer. LAIF determines fair value of its investment portfolio based on market quotations for those
securities where market quotations are readily available, and on amortized cost or best estimate for those
securities where market value is not readily available. LAIF is part of the Pooled Money Investment Account
(PMIA) and under the control of the State Treasurer's Office,which is audited by the Bureau of State Audits
on an annual basis. At fiscal year end PMIA had approximately$78.3 billion in investments. Audited financial
statements of PMIA may be obtained from the California State Treasurer.
The fair value of the City's investment in this pool is reported in the accompanying financial statements at
amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio
(in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the
accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates. Information about the sensitivity of the fair values of the Town's
investments to market interest rate fluctuations is provided by the following table that shows the maturity date
and yield of each investment:
Maturity/Yield
State investment pool (LAIF) $24,150,164 6 months average maturity, 0.92%yield
Bank money market funds 100,000 due on demand, 0.15% yield
Trustee money market funds 10,008,598 due on demand, 0.01% yield
Disclosures Relating to Credit Risk
Generally, 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. LAIF does not have a rating provided by a nationally recognized statistical rating organization.
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
Concentration of Credit Risk
The investment policy of the Town contains limitations on the amount that can be invested in any single
issuer as follows: 5% for negotiable certificates of deposit and commercial paper, 15% for money market
funds, 20%for federal agencies and US GSEs, and no limit for US Treasury Securities and LAIF. There are
no investments in any single issuer that represent 5%or more of total Town investments. Nearly 97%of the
Town's cash and investments at fiscal year end were invested in LAIF.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution,a
government will not be able to recover its deposits or will not be able to recover collateral securities that are in
the possession of an outside party. The California Government Code and the Town's investment policy do
not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits,other
than the following provision for deposits: "the California Government Code requires that a financial institution
secure deposits made by state or local governmental units by pledging securities in an undivided collateral
pool held by a depository regulated under state law(unless so waived by the governmental unit). The market
value of the pledged securities in the collateral pool must equal at least 110%of the total amount deposited
by the public agencies." California law also allows financial institutions to secure Town deposits by pledging
first trust deed mortgage notes having a value of 150%of the secured public deposits. At fiscal year end the
Town had $476,193 that was not covered by depository insurance but collateralized by either marketable
securities, first trust deed mortgage notes, or a combination of both.
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g.,
broker-dealer) to a transaction, a government will not be able to recover the value of its investment or
collateral securities that are in the possession of another party. The California Government Code and the
Town's investment policy do not contain legal or policy requirements that would limit the exposure to custodial
credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct
investments in marketable securities. Custodial credit risk does not apply to a local government's indirect
investment in securities through the use of mutual funds or government investment pools (such as LAIF).
Note 5- Capital Assets
The following is a summary of changes in the Town's capital assets as reported in the Governmental-wide
financial statements:
Beginning Additions/ Retirements/ Ending
Balance Completions Adjustments Balance
Non-depreciable Assets
Land $ 4,087,952 $ - $ - $ 4,087,952
Depreciable Assets
Buildings and improvements 5,965,293 - - 5,965,293
Furniture and equipment 2,928,112 159,899 (159,107) 2,928,904
Infrastructure 58,081,463 441,034 - 58,522,497
66,974,868 600,933 (159,107) 67,416,694
Accumulated Depreciation (30,902,426) - (1,401,007) (32,303,433)
Depreciable assets, net 36,072,442 600,933 (1,560,114) 35,113,261
Net Capital Assets $ 40,160,394 $ 600,933 $ (1,560,114) $ 39,201,213
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
Note 6 -Long-term Obligations
Changes in long-term obligations for the fiscal year were as follows:
Due Within
Beginning Additions Reductions End of Year One Year
Compensated Absences $ 326,397 $ 37,636 $ - $ 364,033 $ 91,008
Postemployment Benefits 2,014,279 176,769 (1,386,482) 804,566
Net Pension Liability 5,412,997 1,746,122 - 7,159,119
$ 7,753,673 $ 1,960,527 $(1,386,482) $ 8,327,718
Note 7- Special Assessment District Bond Obligations
The Town acts as an agent for collection of property taxes and repayment of several special assessment
district improvement bonds issued on behalf of these districts located within the Town's boundary limits.
Since the Town is not obligated in the event of any manner for these special assessment bonds,debt service
payments, or default, the debt is not recorded in these financial statements.
On July 20, 2016, the Board of Directors of the Tiburon Public Financing Authority determined that it was in
the best interest of the Town and the various Special Assessment Districts to refund the existing bonds
issued by several Special Assessment Districts which will result in savings in effective interest rates thereby
resulting in significant public benefits to the Town and the Authority within the contemplation of Section 6586
of the California Bond Law. The Board authorized the issuance and sale of$10,500,000 revenue bonds for
the purpose of financing the acquisition of reassessment bonds for the Town of Tiburon 2016 Consolidated
Reassessment District.
The fiscal year end, the outstanding balance of the' "Town of Tiburon Limited Obligation Refunding Bonds
2016 Consolidated Reassessment District"was.$9,889,321.
Note 8 - Interfund Transfers
Operating interfund transfers for the fiscal year comprise the following:
Fund Transfers In Transfers Out
General Fund 101 $ 130,263 $ 177,600
Capital Equipment reserve fund 122,200 -
Technology reserve fund 55,400 -
Police Supplemental Law Enforcement grant fund - 130,263
$ 307,863 $ 307,863
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
Note 9 - Postemployment Benefits Other Than Pensions
Plan Description
The Town provides retiree medical benefits to employees who retire from the Town at age 50 or later with at
least 5 years of service and are eligible for a CaIPERS pension. Eligible retirees are entitled to the minimum
CaIPERS medical benefit, which was $125 per month in year 2016. The amount is anticipated to increase
annually. This benefit continues for the life of the retiree and then for the life of a surviving spouse, as
applicable.
In addition, retirees with 15 or more years of Town service are eligible to receive a monthly benefit based on
the monthly premium charged by CaIPERS for Kaiser Permanente medical insurance at the single person
rate, which was $746 in year 2016. However, this benefit does not apply to management and mid-
management employees hired after July 1, 2009, or police employees hired after July 1, 2010, or SEIU
employees hired after June 1, 2011. The benefit amount is equal to the percentage shown below, of the
Kaiser single premium at the time of retirement. The amounts,which are paid by the Town directly to retirees,
are fixed at retirement, and do not increase in subsequent years. The benefit amount does not decrease at
age 65 even though Kaiser insurance premiums may decrease substantially at that age. The benefit
continues only for the life of the retiree, as follows:
15-19 years of service 50% of benefit
20-24 years of service 75% of benefit
25 or more years of service 100% of benefit
Retirees may select any retiree medical plan offered by CalPERS, including spouse or family coverage, but
must incur the cost of the premiums exceeding the above benefits.
Actuarial Method and Assumptions
The valuation was completed using the Entry Age Normal Cost Method. This is a projected benefit cost
method,which takes into account those benefits that are expected to be earned in the future as well as those
already accrued.
Discount Rate
Valuation results were computed at a 4.00% discount rate which is considered a reasonable long-term
assumption of the Town's expected return on its investments.
Valuation Results and Accounting Requirements
The Actuarial Valuation of Postemployment Health Benefits report was prepared with a Valuation Date of July
1, 2014 to provide an estimate of the Town's liability for postemployment medical benefits attributable to past
service rendered by current retirees and employees who are expected to receive the benefit. Public entities
that sponsor postemployment benefits are required by Governmental Accounting Standards Board (GASB)
Statement No. 45 to account for the cost of those benefits using accrual accounting rather than the more
common pay-as-you-go accounting. This means that each employee's benefit will"accrue"throughout their
working lifetime and that the Town will be required to show the annual accruals as a current year expense.
The table below contains estimates of the present value of the cost of postemployment medical benefits
attributable to past service rendered by current retirees and employees who are expected to receive the
benefit. The estimates are based on the assumptions and methodology prescribed for Agencies that
participate in the CaIPERS administered California Employers' Retiree Benefit Trust Fund. The valuation
results are based on a discount rate of 4.00%, assuming that the Town continues pay-as-you-go funding of
the program. If the Town joins the CERBT Trust and contributes at least part of the Annual Required
Contributions (ARC) each year, a higher discount rate may be possible.
30
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
A primary goal of GASB 45 is to require employers to recognize postemployment healthcare expense
systematically over periods approximating employees' years of service. The Actuarial Accrued Liability
represents the estimated present value of future benefits that are associated with past service rendered by
employees and retirees. The Unfunded Actuarial Accrued Liability is the excess of the Actuarial Accrued
Liability over the Actuarial Value of any Assets, as follows:
Present Value of Future Postemployment Healthcare Cost
Attributable to Past Service
As of July 1, 2014
4%
Discount Rate
Actives $ 2,223,165
Retirees and Spouses 1,247,622
Total Actuarial Accrued Liability 3,470,787
Actuarial Value of Assets -
Net Unfunded Actuarial Accrued Liability $ 3,470,787
Projected Postemployment Health Benefit Costs
The following table provides a ten-year projection of the pay-as-you-go cost to provide postemployment
benefits to current retirees and future retirees from the Town's current employees:
Estimated Annual Pay-as-you-go Cost
Year Estimated Amount
2014/15 $ 91,690
2015/16 105,580
2016/17 119,394
2017/18 131,269
2018/19 144,075
2019/20 158,954
2020/21 170,382
2021/22 183,205
2022/23 191,993
2023/24 201,442
Benefit Costs under GASB 45
The following table provides disclosure of information regarding the Town's Annual OPEB Cost. The
Unfunded Actuarial Accrued Liability amount is currently not required by GASB to be reported in the Town's
government-wide financial statements.
The Annual Required Contribution (ARC) consists of the Normal Cost plus the portion of the Unfunded
Actuarial Accrued Liability that is to be amortized in the current year. The Normal Cost is the portion of the
actuarial present value of future benefits that is allocated to the current year. Another interpretation is that
the Normal Cost is the present value of future benefits that are "earned"by employees for service rendered
- during the current year. This valuation is based on the Entry Age Normal Cost method of calculation and an
attribution period that runs from date of hire until the expected retirement date.
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TOWN OF TIBURON
� Notes to Financial Statements
June 30, 2017
An employer is allowed to commence amortization of the Unfunded Actuarial Accrued Liability(UAAL)over a
period not to exceed 30 years. The amortization method used in this valuation is the level dollar method.
The UAAL amortization is occurring over a closed 30-year period that commenced in the 2008/09 fiscal year.
The Plan's actuary assumed that 6 years of amortization have occurred since 2008/09 and that 24 years
remained as of July 1, 2014. The following table is based on a level percentage of payroll amortization over
24 years:
Development of 2016/2017 Fiscal Year
Annual OPEB Cost- Based on a 4.00% discount rate
Actuarial Accrued Liability $ 3,786,596
Actuarial Value of Assets 1,386,482
Unfunded Actuarial Accrued Liability $ 2,400,114
Amortization Period 22 years
Annual % of Payroll Amortization of Unfunded AAL $ 125,289
Normal Cost (based on the Entry Age Normal Method) 192,933
Annual Required Contribution 318,222
Interest on Net OPER Obligation 80,571
Adjustment to ARC (102,631)
Annual OPEB Cost 296,162
Pay-as-you-go Cost (119,394)
Employer contribution to Trust (1,290,017)
Trust investment earnings (96,464)
Increase (Decrease) in net OPEB Obligation (1,209,713)
Net OPEB Obligation- beginning of year 2,014,279
Net OPEB Obligation- end of year $ 804,566
Projected Retire Premium Cost $ 119,394
Note 10 - Cost-Sharing Multiple-Employer Defined Benefit Pension Plan
A. General Information about the Plan
Plan Description
The Town provides pension benefits to eligible employees through a cost-sharing multiple-employer defined
benefit pension plan administered by the California Public Employees Retirement System (CalPERS).
CalPERS acts as a common investment and administrative agent for participating public entities within the
State of California. Benefit provisions and all other requirements are established by State statute and Town
ordinance. Detailed information about the pension plan's fiduciary net position is available in the separately
issued CalPERS financial report that can be found on the CalPERS website.
32
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death
benefits to plan members,who must be public employees and beneficiaries. Benefits are based on years of
credited service, equal to one year of full time employment. Members with five years of total service are
eligible to retire at age 50-55 with statutorily reduced benefits. Death benefits are the pre-retirement Optional
Settlement 2W Death Benefit, and the post-retirement death benefit lump sum. The cost of living
adjustments for each plan are applied as specified by the Public Employees Retirement Law.
The Plans' provisions and benefits are summarized as follows:
Miscellaneous Plan
Prior to On or after
Hire date January 1, 2013 January 1 , 2013
Benefit formula 2% @ 55 2% @ 62
Benefit vesting schedule 5 years svc 5 year svc
Benefit payments monthly for life monthly for life
Retirement age 55 62
Monthly benefits, as a %of eligible compensation 2.0% 2.00/,o
Required employee contribution rates 6.891% 6.308%
Required employer contribution rates 10.781% 6.25011/o
Safety Plan
Prior to On or after
Hire date January 1, 2013 January 1 , 2013
Benefit formula 3% @ 55 2.79/o @ 57
Benefit vesting schedule 5 years svc 5 year svc
Benefit payments monthly for life monthly for life
Retirement age 55 57
Monthly benefits, as a %of eligible compensation 3.0% 2.7%
Required employee contribution rates 8.980% 11 .500%
Required employer contribution rates 20.774% 11 .500%
Contributions
The Town makes contributions required as the employer. Employee members are required to make
contributions of their annual covered salary in an amount depending upon date of hire. The contribution
req uirements of the plan are established and may be amended by CalPERS. Section 20814(c)of the California
Public Employees' Retirement Law requires that the employer contribution rates forall public employers be
determined on an annual basis bythe actuaryand shall be effective on the July 1 following notice of a change
in the rate. Funding contributions forthe Plans are determined annually on an actuarial basis as of June 30
by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of
benefits earned by employees during the year, with an additional amount to finance any unfunded accrued
liability. The Town is required to contribute the difference between the actuarially determined rate and the
contribution rate of employees. For the year ended June 30, 2017,employer pension plan contributions were
$816,552.
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
B. Pension Liabilities, Pension Expense and Deferred Outflows/Inflows of Resources Related
to Pensions
As of June 30, 2017, the Town reported a net pension liability for its Proportionate Share of the Net Pension
Liability of the CaIPERS Public Agency Cost-Sharing Plan as follows:
Total pension liability $ 32,069,508
Fiduciary net position 24,910,389
Net pension liability 7,159,119
The Tow n's net pension liability of its Plan with CaIPERS is measured as the proportionate share of the
net pension liability. The net pension liability of the Plan is measured as of June 30, 2016 (measurement
date),and the total pension liabilityforthe Plan used to calculate the net pension liability was determined by
an actuarial valuation as of June 30, 2015 rolled forward to June 30, 2016 using standard update
procedures. The Town's proportion of the net pension liability was based on a projection of the Town's long-
term share of contributions to the pension plan relative to the projected contributions of all participating
employers, actuarially determined. The Town's proportionate share of the net pension liability as of June
30,2016, the measurement date, was 0.082735%. For the year ended June 30, 2017,the Town recognized
pension expense of $1,023,031.
- The Town reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience $ - $ 15,929
Changes of assumptions - 188,438
Difference between projected and actual investment earnings 951,402 -
Change in employer's proportion 36,512 451,898
Differences between employer's share of contributions - 289,962
Pension contributions subsequent to the measurement date 816,552 -
Totals $ 1,804,466 $ 946,227
Recognition of Deferred Outflows and Inflows of Resources in Future Pension Expense as follows:
Year Ended
June 30,
2018 $ (356,347)
2019 (262,564)
2020 413,522
2021 247,076
34
TOWN C)FT|BURON
Notes hoFinancial Statements
� v
June 3O, 2O17
C. Actuarial Assumptions
The total pension liability for this plan's actuarial valuation was determined using the following actuarial
assumptions:
Miscellaneous Safety Plans
Valuation Date June 30. 2O15
Measurement Date June 3O. 2O18
Actuarial Cost Method Entry-Age Normal Cost
Actuarial Assumptions:
Discount Rata 7.85Y4
Inflation 2.75%
Payroll Growth 8.0096
Projected Salary Increase 32% 15.0% (1)
Investment Rate of Return 7.5% (z)
(1) Depending onage, service, and type ofemployment
(2) Net ofpension plan investment expenses, including inflation
�
D. Discount Rate |
The discount rate used to measure the total pension liability was 7,0596 for the Plan. To determine whether
the municipal bond rate should be used inthe calculation ofadiscount nsto. Ca|PERS stress tested plans |
that would most |ihw|y result in a discount rate that would be different from the actuarially assumed
discount rate. Based on the testing, none of the tested plans run out of assets. Therefore' the current
7.05 percent discount nate is adequate and the use of the municipal bond rate calculation is not
necessary. The long-term expected discount rate of 7.65 percent will be applied to all plans in the Public
Employees Retirement Fund (PERF). The stress test results are presented in o detailed report that can be
obtained from the Co|PERS website.
According to Paragraph 30ofGA813 08. the long-term discount roto should bedetermined without reduction
for pension plan administrative expense. The 7.05 percent investment return assumption used in this
accounting valuation is gross of administrative expenses. Administrative expenses are assumed to be 15
basis points. An investment return net of administrative expenses would be 7.50 percent. Using this lower
discount rate has resulted in a slightly higher Total Pension Liability and Net Pension Liability. Ca|PERS
checked the materiality threshold for the difference incalculation and did not find ittobeamaterial difference.
Ca|PERS is scheduled to review all actuarial assumptions as pad of its regular Asset Liability Management
//\LK8\ review cycle that isscheduled to be completed in February 2018. Any changes tothe discount rate will
require Board action and proper stakeholder outreach. For these veosonn. Ca|PERG expects to continue
using adisoount rate net of administrative expenses for GASB 67 and 08 calculations through at least the
2O17-18fisoa|yoarandwill continue tncheck the materiality ofthe difference in calculation until such time aa
they change their methodology.
The long-term expected rate of return on pension plan investments was determined using o building-block
\
method in which best-estimate ranges nfexpected future naa| rates ofreturn(expected returns. net ofpension
plan investment expense and inflation) are developed for each major asset class. In determining the long-
term expected rate of neturn. Ca|PERS took into account both short-term and long-term market return
expectations anwell aethe expected pension fund cash flows. Using historical returns ofall the funds'anse(
35
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TOWN OF TIBURON
.� Notes to Financial Statements
June 30, 2017
classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term
(11-60 years) using a building-block approach.
Using the expected nominal returns for both short-term and long-term, the present value of benefits was
calculated for each fund. The expected rate of return was set by calculating the single equivalent
expected return that arrived at the same present value of benefits for cash flows as the one calculated using
both short-term and long-term returns. The expected rate of return was then set equivalent to the single
equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
CaIPERS adheres to an Asset Allocation Strategy which establishes asset class allocation policy targets and
ranges, and manages those asset class allocations within their policy ranges. The table below reflects the
long-term expected real rate of return by asset class. The rate of return was calculated using the capital
market assumptions applied to determine the discount rate and asset allocation. These rates of return are
net of administrative expenses. The asset allocation has an expected long-term blended rate of return of 7.5
percent.
Asset Class Allocation
Global Equity 51.00%
Global Fixed Income 20.00%
Inflation Sensitive Assets 6.00%
Private Equity 10.00%
Real Assets 12.00%
Other 0.00%
Liquid Assets 1.00%
100.00%
E. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the Town's proportionate share of the unfunded net pension liability for each Plan,
calculated using the discount rate for each Plan, as well as what the Town's proportionate share of the net
pension liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1
percentage point higher than the current rate:
Discount Rate -1% Current Discount Discount Rate +1%
6.65% Rate 7.65% 8.65%
Net Pension Liability 11,493,600 $ 7,159,119 $ 3,588,354
Note 11 - Commitments and Contingencies
The Town receives funding from a number of federal, state and local grant programs. These programs are
subject to financial and compliance review by grantors. Accordingly, the Town's compliance with applicable
grant requirements will be determined at some future date. Expenditures, if any,which may be disallowed by
the granting agencies, cannot be determined at this time.
36
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
The Town does not expect the undeterminable amounts of disallowed expenditures, if any,to materially affect
the financial statements. Receipt of this federal, state and local grant revenue is not assured in the future.
The Town participates in a Joint Powers Agreement through the Marin Emergency Radio Authority(MERA)
under an operating agreement dated February 1, 1999, which provides a public safety radio system to its
members. The Town has committed to pay a pro-rata share of MERA's operations costs and debt service
through year 2022, which are projected at $90,000 per year.
Note 12-Risk Management
General liability
The Town participates in the Association of Bay Area Governments(ABAG Plan), a Joint Exercise of Power
Agency. The ABAG Plan provides the Town with coverage for general liability, excess liability, public official
bond, property, and crime insurance, with various deductibles. For those liability claims below$50,000 per
occurrence,the Town is self-insured. ABAG Plan members may receive rebates when so declared by ABAG.
In the event excess liability claims exceed available resources, members may be required to make additional
contributions.
The ABAG Plan is a self-insured, risk-sharing pool comprised of 29 member local agencies and cities in the
San Francisco-Oakland Metropolitan Bay Area. The governing body includes one person from each member
town, city,or agency with an annual election for the executive committee positions. Financial statements may
be obtained from ABAG, Post Office Box 2050, Oakland, California 94604.
Workers' compensation
The Town participates in a joint powers agreement through the Bay Cities Joint Powers Insurance Authority
(BCJPIA). The Town currently reports all of its workers'compensation related risk management activities in
its General Fund (self-insurance reserve). Claim expenditures and liabilities are reported when it is probable
that a loss has occurred and the amount of that loss can be reasonably estimated. The Town currently
reports all of its risk management activities in its General Fund.
BCJPIA was created as a California Public Agency by an agreement between certain public agencies in the
San Francisco Bay Area to provide workers' compensation coverage. BCJPIA is governed by a Board of
Directors which is comprised of officials appointed by each member town, city or agency. The workers'
compensation fund is self-insured for the first $150,000 of loss per accident; excess coverage policy is
provided by an outside insurance carrier up to statutory limits. Financial statements may be obtained from
BCJPIA, 1750 Creekside Oaks Drive, Suite 200, Sacramento, California 95833.
Note 13 -Subsequent Events
The management of the Town has reviewed the results of operations for the period from its year end June 30,
2017 through October 16, 2017,the date the draft financial statements were available to be issued,and have
determined that no adjustments are necessary to the amounts reported in the accompanying financial
statements nor have any subsequent events occurred, the nature of which would require disclosure.
37
TOWN OF TIBURON
� Notes to Financial Statements
June 30, 2017
Note 14 -New Pronouncements
The Governmental Accounting Standards Board (GASB) has released the following new pronouncements,
which can read in their entirety at http://www.gasb.org.
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions.
Effective Date: The requirements of this Statement are effective for periods beginning after June 15, 2017.
This Statement sets new reporting requirements for government employer OPEB plans, whether or not
funded, and replaces GASB 45. Because it follows Statement 68 (the new pension accounting standard)
very closely, the required calculations and terms may be familiar.
GASB Statement No. 81, Irrevocable Split-Interest Agreements
Effective Date: The requirements of this Statement are effective for periods beginning after December 15,
2016. Earlier application is encouraged. (Issued 3/16)
GASB Statement No. 83, Certain Asset Retirement Obligations
Effective Date: The requirements of this Statement are effective for reporting periods beginning after June 15,
2018. Earlier application is encouraged. (Issued 11/16)
GASB Statement No. 84, Fiduciary Activities
Effective Date: The requirements of this Statement are effective for reporting periods beginning after
December 15, 2018. Earlier application is encouraged. (Issued 01/17)
GASB Statement No. 85, Omnibus 2017
Effective Date: The provisions of this Statement are effective for periods beginning after June 15, 2017.
Earlier application is encouraged. (Issued 03/17)
GASB Statement No. 86, Certain Debt Extinguishment Issues
Effective Date:The requirements of this Statement are effective for reporting periods beginning afterJune 15,
2017. Earlier application is encouraged. (Issued 05/17)
GASB Statement No. 87, Leases
Effective Date: For reporting periods beginning after December 15, 2019. (Issued 06/17)
38
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TOWN OF TIBURON
Notes to Financial Statements
June 30, 2017
Note 15- Fund Balance Designations Section of the Balance Sheet
Tiburon Nonmajor
General Street Governmental
Fund Balances Fund Impact Fund Funds Total
Nonspendable: $ - $ - $ - $ -
Restricted for:
Cypress Hollow LLD-98 - - 29,987 29,987
Gas tax- streets/sidewalks - 2,577,131 1,402,590 3,979,721
Sales tax &VLF projects - - 390,231 390,231
Parks in-lieu - - 13,496 13,496
Open space acquisition - - 195,953 195,953
Planning area mitigation - - 187,420 187,420
Storm water run-off - - 38,168 38,168
Circulation system improvement - - 109,827 109,827
Bunch grass mitigation - - 132,818 132,818
Total restricted fund balances - 2,577,131 2,500,490 5,077,621
Committed to:
GASB 45 OPEB reserve - - - -
Operating reserve 3,000,000 - - 3,000,000
Town's LMI housing - - 1,217,055 1,217,055
Long range planning - - 258,960 258,960
Total committed fund balances 3,000,000 - 1,476,015 4,476,015
Assigned:
Employee compensated leave 294,224 - - 294,224
Future public works facility 2,111,633 - - 2,111,633
Self insurance reserve 100,004 - - 100,004
Capital equipment reserve 135,000 - - 135,000
Technology equipment reserve 612,965 - - 612,965
Future Park development 753,302 - - 753,302
Open space management 25,141 - - 25,141
Disaster response reserve 100,000 - - 100,000
Streets & drainage reserve 1,146,469 - - 1,146,469
Capital outlay reserve 620,469 - - 620,469
Town owned housing units - - 345,711 345,711
Flower Fund - - 20,787 20,787
Heritage &Arts project - - 5,612 5,612
Total assigned fund balances 5,899,207 - 372,110 6,271,317
Unassigned 6,781,612 - 2,030 6,783,642
Total Fund Balances $ 15,680,819 $ 2,577,131 $ 4,350,645 $ 22,608,595
39
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REQUIRED SUPPLEMENTARY INFORMATION
(unaudited)
i
i
TOWN OF TIBURON
Required Supplementary Information
Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (unaudited)
Year Ended June 30, 2017
Schedule of Proportionate Share of the Net Pension Liability
The proportion (percentage) of the collective net pension liability represents the Town's share of both
cost-sharing plan assets (the miscellaneous and safety plans) offset against the actuarial determined
collective pension liability.
The proportionate share (dollar amount) of the collective net pension liability represents the Town's share
of both cost-sharing plan assets offset against the actuarial determined collective pension liability.
The employer's covered-employee payroll represents the payroll of employees that are provided with
pensions through the applicable miscellaneous or safety pension plan.
Schedule of Contributions
The employer's contributions to the plans are actuarially determined or based on statutory or contractual
requirements which comprise the following: (1) the agent employer's actuarially determined contribution
to the pension plan (its statutorily/contractually required contribution), (2) the employer's actual
contributions, the difference between the actual and actuarially determined contributions (its
statutorily/contractually required contributions), and (3) a ratio of the actual contributions divided by
covered-employee payroll.
40
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TOWN OF TIBURON
y
Required Supplementary Information
Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (unaudited)
Last 3 Fiscal Years
Schedule of the Town's Proportionate Share of
the Plan's Net Pension Liability 2017 2016 2015
Town's proportion of the net pension liability 0.08274% 0.07886% 0.08409%
Town's proportionate share of the net pension liability $ 7,159,119 $5,412,997 $5,232,395
Town's covered-employee payroll $ 3,215,899 $3,297,050 $3,503,315
Town's proportionate share of the net pension liability as a
percentage of its covered-employee payroll 223% 164% 149%
Plan fiduciary net position as a percentage of
the total pension liability 74% 78% 81%
for the fiscal year ending on the measurement date
Schedule of the Town's Contributions
Contractually required employer contribution $ 626,552 $ 553,153 $ 463,611
Contributions in relation to the contractually required
employer contribution 816,552 753,153 463,611
Contribution (excess)deficiency $ (190,000) $ (200,000) $
Town's covered-employee payroll" $ 3,397,462 $3,215,899 $3,297,050
Contributions as a percentage of covered-employee payroll 24% 23% 14%
`*for the fiscal year ending on the date shown
41
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TOWN OF TIBURON
Required Supplementary Information t
Schedule of Funding Progress (unaudited)
Other Postemployment Benefits Plan
As of June 30, 2017
The Schedule of Funding Progress presents trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Trend
information from the actuarial studies is presented below:
Actuarial UAAL
Accrued Actuarial Unfunded as a %of
Actuarial Liability Value of AAL Funded Covered Covered
Valuation (AAL) Assets (UAAL) Ratio Payroll Payroll
Date (a) (b) (a-b) (b/a) (c) [(a-b)/c]
July 1, 2008 $ 2,157,932 $ - $ 2,157,932 0% $ 2,575,797 83.8%
July 1, 2011 $ 2,900,736 $ - $ 2,900,736 0% $ 3,700,000 78.4%
July 1, 2014 $ 3,470,787 $ - $ 3,470,787 0% $ 6,750,391 51.4%
42
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TOWN OF TIBURON
Required Supplementary Information
Budgetary Comparison Information (unaudited)
Year Ended June 30, 2017
The Town follows these procedures in establishing the budgetary data reflected in the financial
statements:
• Prior to the close of each fiscal year, the Town Manager submits to the Town Council a proposed
operating budget for the fiscal year commencing the following July 1. The operating budget
includes proposed revenue and expenditures.
• Public hearings are conducted at Town Council meetings to obtain taxpayer comments prior to
adoption of the budget in June.
• Prior to July 1, the budget is legally adopted for all governmental fund types through Council
approved resolution.
• The Town Manager is authorized to transfer budget amounts within and between funds as
deemed desirable and necessary in order to meet the Town's needs; however, revisions that alter
the total expenditures must be approved by the Town Council. Formal budgetary integration is
employed as a management control device during the year for the governmental type funds.
• Budgets for the governmental type funds are adopted on a basis consistent with generally
accepted accounting principles. Budgeted amounts presented are as originally adopted and as
further amended by the Town Council.
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TOWN OF TIBURON
Required Supplementary Information
Budgetary Comparison Information (unaudited)
General Fund
Year Ended June 30, 2017
Variance with
Final Budget
Budget Amounts (unaudited) Actual Positive
Resources(inflows) Original Final Amounts (Negative)
Property taxes $ 5,140,705 $ 5,140,705 $ 5,451,487 $ 310,782
Other taxes 1,585,614 1,585,614 1,723,923 138,309
Franchise fees 700,000 700,000 788,866 88,866
Fines and forfeitures 124,500 124,500 174,508 50,008
Investment earnings 41,350 41,350 114,676 73,326
Intergovernmental and agency 103,617 103,617 202,811 99,194
Licenses and permits 977,600 977,600 1,219,755 242,155
Charges for services 337,400 337,400 447,283 109,883
Other revenue 113,310 113,310 340,326 227,016
Transfers in - - 307,863 307,863
Amounts Available for Appropriation 9,124,096 9,124,096 10,771,498 1,647,402
Charges to Appropriations(outflow)
Town administration 1,420,489 1,420,489 1,396,301 24,188
Community development 1,229,620 1,229,620 1,189,135 40,485
Public safety 3,278,958 3,278,958 3,165,095 113,863
Public works 1,684,248 1,684,248 1,457,822 226,426
Legislative boards and commissions 74,750 74,750 59,345 15,405
Non-departmental 2,957,791 2,957,791 2,403,062 554,729
Capital improvement projects 1,230,000 1,230,000 354,117 875,883
Transfers out 176,600 176,600 177,600 (1,000)
Total Charges to Appropriations 12,052,456 12,052,456 10,202,477 1,849,979
Surplus(Deficit) $ (2,928,360) $ (2,928,360) $ 569,021 $ 3,497,381
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TOWN OF TIBURON
Required Supplementary Information
Budgetary Comparison Information
Tiburon Street Impact Fund
Year Ended June 30, 2017
Variance with
'i
Final Budget
Budget Amounts (unaudited) Actual Positive
Resources(inflows) Original Final Amounts (Negative)
Property taxes $ - $ - $ - $ -
Other taxes - - - -
Franchise fees - - - -
Fines and penalties - - - -
Investment earnings - - 15,611 15,611
Intergovernmental and agency - - -
Licenses and permits - - - -
Charges for services - - 558,191 558,191
Other revenue - - - -
Transfers in - - - -
Amounts Available for Appropriation - - 573,802 573,802
Charges to Appropriations(outflow)
Town administration - - - -
Community development - - - -
Public safety - - - -
Public works - - - -
Legislative boards and commissions - - - -
Non-departmental - - - -
Capital improvement projects 45,000 45,000 36,440 8,560
Transfers out - - - -
Total Charges to Appropriations 45,000 45,000 36,440 8,560
Surplus(Deficit) $ (45,000) $ (45,000) $ 537,362 $ 582,362
45
OTHER SUPPLEMENTARY INFORMATION
TOWN OF TIBURON
General Fund
Combining Balance Sheet
June 30,2017 Page >of 2
Employee Employee Public GASB 45 Self Capital Open Disaster Streets& Capital
General Compensated Housing Works OPEB Insurance Equip. Technology Park Space Response Drainage Outlay TOTALS
Operation Leave Assistance Facility Reserve Reserve Replace. Fund Develop Mgmt. Reserve Reserve Reserve
ASSETS
Cash&investments $ 9,284,819 $ 294,224 $ 800,000 $ 2,111,633 $ - $ 323,004 $ 390,445 S 618,554 $ 778,302 S 25,141 $ 100,000 $ 1,055,633 $ 620,469 S 16,402,224
Receivables 404,962 - - - - - - 45 - - - 109,832 - 514,839
Totals $ 9,689,781 $ 294,224 $ 800,000 $ 2,111,633 $ - $ 323,004 $ 390,445 S 618,599 $ 778,302 $25,141 $ 100,000 $ 1,165,465 $ 620,469 S 16,917,063
LIABILITIES
Accounts payable $ 211,073 $ $ $ $ $ - $ S 5,634 $ $ $ $ 18,996 $ - $ 235,703
Accrued liabilities 9,911 - - - - 223,000 - - - - - - - 232,911
Deposits 742,630 - - 25,000 767,630
Totals 963,614 - - 223,000 5,634 25,000 - 18,996 1,236,244
FUND BALANCES
Nonspendable - - - _ _ _ _ _ _ _ _ _ _ _
Restricted - - - - - - _ _ - _ _ _ _ _
Committed 3,000,000 - - - - - - - _ _ _ _ - 3,000,000
Assigned - 294,224 2,111,633 100,004 135,000 612,965 753,302 25,141 100,000 1,146,469 620.469 5,899,207
Unassigned 5,726,167 - 800,000 - - 255,445 - - - - - - 6,781,612
Totals 8,726,167 294,224 800,000 2,111,633 - 100,004 390,445 612,965 753,302 25,141 100,000 1,146,469 620,469 15,680,819
Total Liabilities&
Fund Balances $ 9,689,781 $ 294,224 $ 800,000 $ 2,111,633 $ - $ 323,004 $ 390,445 $618,599 $ 778,302 $25,141 $ 100,000 $ 1,165,465 $ 620,469 $ 16,917,063
TOWN OF TIBURON
General Fund
Combining Statement of Revenue, Expenditures and Change in Fund Balances
Year Ended June 30, 20V Page 2 of 2
Employee Employee Public GASB45 Self Capital Open Disaster Streets& Capital
General Compensated Housing PERS Works OPER Insurance Equip. .ethnology Park Space Response Drainage Outlay TOTALS
Operation Leave Assistance Assets Facility Reserve Reserve Replace. Func Develop Mgmt. Reserve Reserve Reserve
REVENUE
Property taxes S 5,451,487 S - S - S - S - S - S - 5 - S - S - S - S - S - S - S 59451487
Othertaxes 1,723.923 - - - _ - _ _ _ _ - - 1,723,923
Franchises 7189866 - - _ _ _ _ _ _ - - 709000 - 788,866
Fines and penalties 174,508 - - - _ - _ _ _ - - - 174,508
Investment earnings 114,676 - - _ _ _ _ _ _ - 114,576
Intergovernmental&agency 105.479 - - - - - - 5,000 - - - - 929332 - 202,811
Licenses and permits 1,191,006 - - - _ _ 28,749 _ _ _ _ - - 1,219,755
Charges for services 447,283 - - - - _ _ _ _ - 447,283
Other revenue 226.455 - 113.871 340.326
Total Revenue 10,153,683 - 33,749 113.871 162.332 10.463.635
EXPENDITURES
Current-
Townadministration 19404,355 3,599 - - - - - - 36,347 - - - - - 1,396,301
Community development 1,1319410 - - - - - - 31,264 26,461 - - - - 1,189,135
Public safety 3.115,313 - - - - - - 1099449 26,333 - - - - - 3,165,095
Public works 1,453,612 - - - - - - 339304 14,506 - - - - - 1,457.822
Legislative boards/commissions 59.345 - - - - - _ _ _ - 59,345
Non-departmental 1,052,043 - - - - 1,252,019 74,000 - - 25,000 - - - - 2,403,062
Capital Projects 328 45.252 - 32,230 240.818 35.489 354,117
Total Expenditures 8,216,406 39599 14252,019 74,000 174,017 1489899 57,230 2400818 35 489 100024,877
Excess Revenue over
(under)Expenditures 1,937,277 (3,599) (1,252,019) (74,000) (1409268) (359028) (570230) (78.486) (35.489) 438,758
OTHER FINANCING SOURCES
Operating transfers in 1309263 - - - - - - 122,200 55,400 - - - - - 307,863
Operating transfers(out) (177.600)
Total Other Sources(Uses) 130.263 122,200 559400 130.263
CHANGE IN FUND BALANCES 2,0679540 (3,599) - - - (1,252,019) (74,000) (189068) 20,372 (57,230) - - (789486) (35,489) 569,021
Fund Balances-Beginning 6,658,627 2979823 800,000 2,1110633 10252,019 174,004 408,513 592.593 810,532 25.141 100,000 1,2249955 655.958 15.111,798
Fund Balances-End Of Year S 8,726,167 S 294,224 $ 800,000 $ $ 2,111,633 S S 100,004 S 390,445 S 6129965 S 753,302 $ 25,141 S 1009000 $ 1,146,469 S 620.469 S 15.680.819
TOWN OF TIBURON
Nonmajor Governmental Funds
Combining Balance Sheet
June 30,2017
Page 7 of 4
Capital Projects Funds: Total
Town owned Heritage Town's Tiburon Tiburon Open Planning Tiburon Storm Circulation Bunch Street Tiburon Capital
Housing &Arts LMI Playground Parks Space Area Street Water System Grass Frontage Long Range Project
Units Project Housing Improvement In-Lieu Acquisition Mitigation Impact Run Off Improvement Mitigation Improvement Planning Funds
ASSETS
Cash&investments $ 353,810 S 5,603 S 1.214,266 $ - S 43,396 S 195,503 S 187,006 S 2,589.100 S 78,149 S 109,592 S 132.558 S 2 S 274,589 5 5,183,574
Receivables 771 9 2,789 2.030 100 450 414 5,871 179 235 260 638 13.746
Totals S 354,581 5 5,612 S 1,217,055 S 2,030 S 43.496 S 195,953 S 187,420 5 2,594,971 S 78,328 S 109,827 S 132.818 S 2 S 275,227 S 5,197,320
LIABILITIES
Accounts payable S - S - S - 5 - 5 - S. - $ - S - S 20,160 S - S - S - S 16,269 $ 36.429
Accrued liabilities - - - - 30,000 - - - 20,000 - - - - 50,000
Deposits-tenants 8,870 8,870
Totals 8,870 30,000 40,160 16,269 95,299
FUND BALANCES
Nonspendable - - - - - - - - - - - - - -
Restricted - - - - 13,496 195,953 187,420 2,594,971 38,168 109,827 132,818 - - 3,272,653
Committed - - 1,217,055 - - - - - - - - 2 258,958 1,476,015
Assigned 345,711 5,612 - - - - - - - - - - - 351,323
Unassigned 2,030 - - 2,030
Totals 345,711 5,612 1,217,055 2,030 13,496 195,953 187,420 2,594,971 38,168 109,827 132,818 2 258,958 5,102,021
Total Liabilities&
Fund Balances S 354,581 S 5,612 $ 1,217,055 S 2,030 S 43,496 S 195,953 $ 187,420 $ 2,594,971 S 78,328 $ 109,827 $ 132,818 S 2 S 275,227 S 5,197,320
TOWN OF TIBURON
Nonmajor Governmental Funds
Combining Balance Sheet
June 30,2017
Page 2 of 4
Special Revenue Funds:
Total Total Total
Police Cypress Measure A State Measure A Measure V Special Capital Nonmajor
Supp Law Hollow Paula Little Sales Tax Gasoline Sales Tax VLF Revenue Project Governmental
Enforcement LLD-98 Flower Fund Parks Tax TAM Roads Funds Funds Funds
ASSETS
Cash&investments $ (26,944) $ 29,845 S 20,741 S 36,953 $ 1,399,296 S 289,337 S 109,118 S 1,858,346 $ 5,183,574 $ 7,041,920
Receivables 26,944 142 46 33,965 13,115 649 231 75,092 13,746 88,838
Totals S - S 29,987 $ 20,787 $ 70,918 $ 1,412,411 $ 289,986 $ 109,349 $ 1,933,438 S 5,197,320 S 7,130,758
LIABILITIES
Accounts payable $ $ $ $ $ 9,821 $ 80,022 $ $ 89,843 $ 36,429 $ 126,272
Accrued liabilities _ _ _ 50,000 50,000
Deposits-tenants 8,870 8,870
Totals 9,821 80,022 89,843 95,299 185,142
FUND BALANCES
Nonspendable _ _ _ _ _
Restricted 29,987 70,918 1,402,590 209,964 109,349 1,822,808 3,272,653 5,095,461
Committed - - - - _ _ _ 1,476,015 1,476,015
Assigned 20,787 20,787 351,323 372,110
Unassigned - - 2,030 2,030
Totals 29,987 20,787 70,918 1,402,590 209,964 109,349 1,843,595 5,102,021 6,945,616
Total Liabilities&
Fund Balances $ $ 29,987 $ 20,787 $ 70,918 $ 1,412,411 $ 289,986 S 109,349 $ 1,933,438 $ 5,197,320 $ 7,130,758
TOWN OF TIBURON
Nonmajor Governmental Funds
Combining Statement of Revenue, Expenditures and Change in Fund Balances
Year Ended June 30, 2017 Page 3 of 4
Capital Project Funds. Total
Town owned Heritage Town's Tiburon Tiburon Open Planning Tiburon Storm Circulation Bunch Street Tiburon Capital
Housing &Arts LMI Playground Parks Space Area Street Water System Grass Frontage Long Range Project
Units - Project Housing Improvement In-Lieu Acquisition Mitigation Impact Run Off Improvement Mitigation Improvement Planning Funds
REVENUE
Property taxes S - S - S - S - S - S - S - S - S - S - S - 5 - S - S
Other taxes
Franchises
Fines and penalties - - - _ _ _ _ _ _ _ _ _ _ _
Investment earnings 1,798 33 8,545 - 257 1,453 1,336 - 490 604 873 - 1,849 17,238
Intergovernmental&agency - 2,381 - _ _ _ _ _ _ _ _ _ _ 2,381
Licenses and permits - - - - _ _ _ _ _ _ _ _ _ _
Charges for services - 225 - - - - _ - _ _ _ _ _ 225
Other revenue 102,522 7,000 9,926 19,232 50,505 189,185
Total Revenue 104,320 2,639 15,545 257 1,453 1,336 10,416 19,836 873 52,354 209,029
EXPENDITURES
Current-
Town administration - - - - - - - - - - _ - _ _
Community development - - - - - - - - - - - - 33,713 33,713
Public safety - - - - - - - - - _ _ - _ _
Public works - - - - - - - - - - - _ - -
Legislative boards/commissions - 2,360 - - - - - - - _ - - - 2,360
Non-departmental 96,317 - 23,270 - - - - - - - - - - 119,587
Capital improvement projects 51,942 51,942
Total Expenditures 96,317 2,360 23,270 51,942 33,713 207,602
Excess Revenue over
(under)Expenditures 8,003 279 (7,725) 257 1,453 1,336 (41,526) 19,836 873 18,641 1,427
OTHER FINANCING SOURCES
Operating transfers in(out) - - -
Total Other Sources(Uses)
CHANGE IN FUND BALANCES 8,003 279 (7,725) - 257 1,453 1,336 - (41,526) 19.836 873 - 18.641 1,427
Fund Balances-Beginning 337.708 5.333 1,224,780 2030, 13,239 194,500 186,084 79,694 89.991 131,945 2 240.317 2.505.623
Fund Balances-End of Year S 345.711 S 5.612 S 1.217,055 S 2,030 S 13,496 S 195,953 S 187,420 S S 38,168 S 109,827 S 132.818 S 2 S 258.958 S 2.507.050
TOWN OF TIBURON
Nonmajor Governmental Funds
Combining Statement of Revenue, Expenditures and Change in Fund Balances
Year Ended June 30, 2017 Page 4 of 4
Special Revenue FundsTotal Total Total
Police Cypress Measure A State County Measure B Special Capital Nonmajor
Supp Law Hollow Paula Little Parks Gasoline Measure A VLF Revenue Project Governmental
Enforcement LLD-98 Flower Fund Sales Tax Tax Sales Tax Roads Funds Funds Funds
REVENUE
Property taxes $ - $ 16,544 $ - $ - $ - $ - $ - $ 16,544 $ - $ 16,544
Othertaxes _ _
Franchises
Fines and penalties - - _ _ _ _ _ _ _ -
Investment earnings - 126 127 372 8,962 1,238 341 11,166 17,238 28,404
Intergovernmental&agency 130,263 - - 101,021 198,933 111,882 86,861 628,960 2,381 631,341
Licenses and permits - - _ _ _ _ _ _ _
Charges for services - - - - - - - - 225 225
Other revenue - - 13,500 - - - 13,500 189,185 202,685
Total Revenue 130,263 16,670 13,627 101,393 207,895 113,120 87,202 670,170 209,029 879,199
EXPENDITURES
Current-
Town administration - - - - - - _ - _ _
Community development - - - - - - - - 33,713 33,713
Public works - 17,101 4,587 33,000 - - - 54,688 - 54,688
Legislative boards/commissions - - - - - - - - 2,360 2,360
Non-departmental - - - - - - - 119,587 119,587
Capital improvement projects - - - 44,930 47,111 111,235 - 203,276 51.942 255,218
Total Expenditures - 17,101 4,587 77,930 47,111 111,235 - 257.964 207,602 465,566
Excess Revenue over
(under)Expenditures 130.263 (431) 9,040 23.463 160,784 1,885 87,202 412,206 1.427 413,633
OTHER FINANCING SOURCES -
Operating transfers in(out) (130.263) - - - - - - (130,263) - (130,263)
Total Other Sources(Uses) (130,263) - - - - - - (130.263) - (130,263)
CHANGE IN FUND BALANCES - (431) 9,040 23,463 160,784 1,885 87.202 281,943 1,427 283,370
Fund Balances-Beginning - 30,418 11,747 47,455 1,241,806 208,079 22,147 1,561,652 2,505,623 4,067,275
Fund Balances-End of Year $ - $ 29,987 $ 20,787 $ 70,918 $ 1,402,590 $ 209,964 $ 109.349 $ 1,843,595 $ 2,507,050 $ 4,350,645
�"F`
TOWN OF TIBURON Town Council Meeting s
1505 Tiburon Boulevard February 212018,
Tiburon, CA 94920 Agenda Item:AT —
2
STAFF PO .
To: Mayor and Members of the Town Council
From: Office of the Town Manager
Subject: Adopt Resolution, and Authorize Town Manager to execute Memorandum of
Unde standing with City of Rocklin to purchase Rule 20A Credits for
Un rgunding Project between Lyford and Ned's Way
Reviewed By:
BACKGROUND
On January 17, 2018, Town Council received an update on a project using the Town's
accumulated PG&E Rule 20A funds. This project would underground utilities on Tiburon
Boulevard from Lyford Drive to Ned's Way. It also includes about 250 feet of undergrounding on
Lyford Drive. The staff report from the January 17 meeting, which includes a detailed analysis of
various aspects of this project, is attached as Exhibit 1.
After hearing the staff presentation on the item and deliberating, Town Council voted
unanimously in authorizing the Town Manager to negotiate with other jurisdictions for the
purchase of additional Rule 20A credits to allow the Town to proceed with the project this
Summer.
ANALYSIS
The Town currently has approximately $911,000 of accumulated Rule 20A credits available from
PG&E, and estimate we need an additional $IAM in credits for the project to move forward.
I have reached a tentative agreement with the City of Rocklin to purchase $438,000 of Rule 20A
credits for $109,000 (.25/credit), and am continuing to work with other jurisdictions to acquire
the additional needed credits
FINANCIAL IMPACT
The FY 2017/18 CIP budget included $500,000 for this project, and staff proposes using funds
from this line item to complete the proposed purchase.
RECOMMENDATION
Staff recommends the Town Council:
1. Adopt Draft Resolution (Exhibit 2)
2. Authorize the Town Manager to execute a Memorandum of Understanding with the City
of Rocklin to purchase $438,000 of PG&E Rule 20A credits for $109,000 (Exhibit 3)
Exhibits:
1. January 17,2018 Town Council Staff Report
2. Draft Resolution
3. Draft Memorandum of Understanding with City of Rocklin
Prepared by: Greg Chanis,Town Manager
3 )m�i ON PAtE 2 22
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: .
T TOWN OF TIBURON Town Council Meeting
1505 Tiburon Boulevard January 17>2018
Tiburon,CA 94920
Agenda Item:
STAFF PO .
To: Mayor and Members of the Town Council
From: Department of Public Works
Office of the Town Manager
Subject: Staff update on Rule 20A/B Undergrounding Project between Lyford and
Ned's Way
Reviewed By:
BACKGROUND
In September 2005, Council confirmed that Tiburon Boulevard continues to be the Town's Rule
20A funding priority and that the next project priorities would be (a) Mar West to Ned's Way, (b)
Ned's Way to San Rafael Avenue, and (c) Reed Ranch Road to Trestle Glen Boulevard.
Responding to this priority list,the Town undergrounded overhead lines along Tiburon
Boulevard from Lyford Drive to roughly 750 feet west of the intersection in conjunction with the
construction of the new parking lot. Another project was completed in 2015 that undergrounded
the south side of Tiburon Boulevard from the Lyford parking lot to Mar West.
Since 2014, staff has been working with PG&E to underground the utilities between Lyford and
Ned's Way using the Town's rule 20A funds. This project would underground Tiburon
Boulevard from Lyford Drive to about 880 feet west. It also includes about 250 feet of
undergrounding on Lyford Drive.
The project boundary includes a utility running through the school property. As this property is
within the undergrounding district boundary it must be undergrounded. This significantly
increased the estimated cost of construction. The undergrounding district includes approximately
1,781 feet of main trenching, 25 feet of service lateral trenching(trenching from property line to
the panel on the property), and one panel conversion. In 2014, the planning level estimate for the
project was $925,980. Since the project exceeded the available work credits the Town had
available, PG&E could not accept the project.
When staff brought this item to Council in 2015, Council asked if the Town could contribute
general fund money to the project in order to proceed. PG&E responded that the project could be
split into two parts, one part Rule 20A and one part Rule 20B (funding from the Town). In
January 2015, the estimated cost of the Rule 20A portion was $710,000, well under our rule 20A
balance, and the ballpark estimated cost of the rule 20B project was $340,000.
The Town entered into an agreement with PG&E for them to do the design of the project, and in
the FY 2017-18 budget, Council allocated $500,000 for the rule 20B portion of the project. As
the design progressed, PG&E indicated that the cost for the project was anticipated to rise. Staff
has mentioned this at previous Council meetings.
EXHIBIT No.,,,,,,,�...
I
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In late December, PG&E provided updated cost estimates based on 99% design.
The estimated cost of the Rule 20A portion is $1,658,815. This is double the cost provided in
2015. This is a cost of about$1,079/LF for design, construction and construction management.
The estimated cost of the Rule 20B portion is $352,000. This is close to the estimate provided by
PG&E in 2015.
Additionally,the Rule 20A project will remove a number of small trees on the berm south of
Tiburon Blvd for about 400 feet, centering roughly on the point across from the Police station.
There is no money included in the estimate for landscape restoration. Staff estimates the
additional cost of the landscape restoration would be approximately$50,000, resulting in a
revised estimate for the Rule 20A project of$1,708,815
ANALYSIS
Rule 20A and Rule 20B projects work by different rules. These rules have a substantial effect on
the cost of the project. One difference is that under a Rule 20B project there is an offset, or
credit, for an equivalent overhead facility. This credit does not exist for a Rule 20A project.
Therefore, in general, a Rule 20A project costs more than the same project completed as a Rule
20B project. On the other hand, Rule 20A projects are paid for with Rule 20A credits, whereas,
Rule 20B projects are funded solely by the jurisdiction completing the project.
The estimated cost of the Rule 20A portion (with $50K in landscape restoration) is
$1,708,815. The Town currently has $910,000 in its Rule 20A credit account, including a five
year borrow ahead (the maximum allowed). To move forward with the project, the Town would
need approximately $800,000 in additional Rule 20A credits.
It is possible the Town could acquire the needed additional credits by `purchasing' them from
another jurisdiction. PG&E has indicated they allow this type of transfer, requiring only an
executed MOU from the 2 parties to effectuate the transfer of credits on their end. This process is
completely unregulated, meaning it is up to the parties to establish the sales price of the credits.
Staff is aware of several transfers that have taken place, and has identified several jurisdictions
that may be willing to sell their Rule 20A credits to the Town. Staff estimates credits may be
purchased for approximately$0.50/credit.
The estimated cost of the Rule 20B portion is $352,000. This is close to the estimate provided by
PG&E in 2015. The FY 2017/18 CIP budget included $500,000 for this portion of the project.
However,this Rule 20B part of the project could be converted to Rule 20A. This raises the
estimate for that portion of the project to $625,000. Although this is an increase to the total cost
of the project, it could potentially result in net cost savings if the Town can negotiate an
advantageous price for additional Rule 20A credits.
The design and estimating of a Rule 20A and Rule 20B project are different, therefore, staff has
directed PG&E to design the current Rule 20B portion as a Rule 20A project in order to
determine a more accurate estimate, and hopefully, keep the project on schedule.
PAGiE 2 o�=4
s
FINANCIAL IMPACT
The FY 2017/18 CIP budget included $500,000 for this project in addition to the Town's
$910,000 of available Rule 20A credits.
As discussed above, the project could be completed as a combined Rule 20A and Rule 20B
project, as currently planned. Alternatively, the project could be converted to an all Rule 20A.
Below are the cost implications for both alternatives. The following is an analysis of the financial l
impacts of each scenario.
Rule 2" and 20B
As a combined Rule 20A and Rule 20B project, the cost of the project is estimated at$1,708,815
for the Rule 20A portion (including landscape restoration)and$352,000 for the Rule 20B
portion. To move forward with the project the Town must acquire approximately $800,000 in
additional Rule 20A credits. At $0.50/credit, the cost of these credits is estimated at $400,000.
Factoring in the funds allocated to this project in the Fiscal Year 2017-18 CIP, Council would
need to allocate an additional $252,000 to the project.
Rule 2"for the entire project
As an all Rule 20A project the estimated cost of the project is $2,333,815 (including landscape
restoration). To move forward with the project the Town would need to acquire approximately
$1,425,000 in additional Rule 20A credits. At$0.50/credit,this would cost about$712,000.
Factoring in the funds allocated in the Fiscal Year 2017-18 budget, Council would need to
allocate an additional $212,000 to the project.
The Table below summarizes the financial analysis from above:
Table 1 -Additional money needed for Rule 20A credits
Rule 20A/20B All Rule 20A
Current Rule 20A Credits $910,000 $910,000
Rule 20A Estimate $1,658,815 $1,658,815
Cost of landscape restoration $50,000 $50,000
Rule 20B portion as Rule 20A $0 $625,000
Total Rule 20A Credits needed $1,708,815 $2,333,815
Additional 20A Credits Needed $800,000 $1,425,000
Cost at .50/credit $400,000 $712,000
Current GF Allocation for 20B $500,000 $500,000
Rule 20B Estimate $352,000 $0
Available to buy 20B Credits $148,000 $500,000
Cost of additional credits $400,000 $712,000
Additional GF Allocation $252,000 $212,000
Please note, under both of the scenarios above, we have assumed the additional needed Rule 20A
credits are purchased at .50/credit. If credits can be acquired for less than .50/credit,the
additional allocation required under either scenario would be reduced accordingly.
`�Yf.,�,vt4�_F.,F s a.IRON � tai 3 :,= 4
As all the above are estimates, staff believes it is prudent to allow flexibility in the Rule 20A
purchase negotiations and the decision on converting the project to all Rule 20A. Further to
cover contingencies, staff recommends increasing the current allocation to the project by
$260,000. This money would come from General Fund Infrastructure account.
RECOMMENDATION
Staff recommends the Town Council:
1. Receive staff report on status of Rule 20A/2013 project.
2. Allocate an additional $260,000 to the Rule 20A/2013 undergrounding project from the
General Fund Infrastructure account.
3. Direct the Town Manager to negotiate with other jurisdictions to obtain approximately
$1,424,000 in Rule 20A credits, with any resulting agreements to be brought back to
Council for final approval.
Prepared by: Patrick Barnes,Director of Public Works
Greg Chanis,Town Manager
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DRAFT RESOLUTION NO. XX-2018
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON
APPROVING THE MEMORANDUM OF UNDERSTANDING FOR THE
TRANSFER OF PG&E RULE 20A CREDITS FROM THE CITY OF ROCKLIN
WHEREAS, the Town of Tiburon is currently undergrounding Tiburon Boulevard from
Lyford Avenue to Ned's way("Project"), and is funding the Project in part with Rule 20A Credits
from PG&E.; and
WHEREAS, the Town of Tiburon has the desire to purchase and use the City of
Rocklin's available Rule 20A Credits to assist in funding the Project; and
WHEREAS, the California Public Utilities Commission and PG&E allow for Rule 20A
Credits to be transferred from one agency to another; and
WHEREAS, the City of Rocklin is willing to enter into a Memorandum of Understanding
("MOU") with the Town and transfer $438,080 of the City of Rocklin Rule 20A Credits to the
Town, in exchange for a $109,520 payment by the Town; and
WHEREAS, the Town Council for the Town of Tiburon has reviewed and understands
the terms for the transfer of credits set forth in the attached MOU;
NOW THEREFORE, the Town Council of the Town of Tiburon does resolve as follows:
Section 1. The Town Council hereby approves the MOU between the City of Rocklin
and the Town of Tiburon for the transfer of$438,080 of Rocklin's PG&E Rule 20A Credits in
exchange for a cash payment from the Town of Tiburon to the City of Rocklin in the amount of
$109,520, in substantially the form attached hereto as Exhibit "A" and incorporated herein by
reference.
Section 2. The Town Manager is hereby authorized execute the MOU with the City
of Rocklin and to take all necessary action to carry out the terms of the MOU.
Section 3. The Town Council hereby directs that the Rule 20A credits transferred to
the Town from the City of Rocklin be used for the Project. .
PASSED AND ADOPTED at a regular meeting of the Town Council this 21St day of
February, 2018, by the following vote:
AYES: COUNCILMEMBERS:
NAYES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
EXIIIBIT N®. 'L
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Page 1 of 2
Town Council Resolution No. xx-2018 DRAFT 02/21/2018
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JIM FRASER, MAYOR
TOWN OF TIBURON
ATTEST:
LEA STEFANI, TOWN CLERK
Page 2 of 2
Town Council Resolution No.xx-2018 DRAFT 02/21/2018
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MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding (MOU) is entered into the — day of , 2018
(Effective Date), by and between the City of Rocklin (ROCKLIN) and the Town of Tiburon
(TIBURON). ROCKLIN and TIBURON are sometimes individually referred to herein as
"Party" and collectively as "Parties".
RECITALS
A. Electric Utilities collect and annually allocate credits to communities to convert overhead
electric facilities to underground electric facilities. (These credits are commonly referred to as
Rule 20A Credits). The amount of said credits allocated by Pacific Gas and Electric Company
(PG&E)to the City of Rocklin is hereafter referred to as the "Rocklin Allocation".
B. TIBURON hereby represents that it is eligible to use Rule 20A Credits and has the
Tiburon Boulevard Utility Undergrounding Project(Project) planned which can utilize Rule 20A
Credits.
C. On February 21, 2018, the TIBURON Town Council authorized the TIBURON Town
Manager to enter into this MOU with ROCKLIN to receive the transfer of ROCKLIN Rule 20A
Credits.
D. On February 27, 2018, the ROCKLIN City Council authorized the ROCKLIN City
Manager to enter into this MOU with TIBURON for the transfer of ROCKLIN Rule 20A Credits
to TIBURON.
AGREEMENT
NOW, THEREFORE, the Parties hereto agree as follows:
1. ROCKLIN agrees to assign, for use by TIBURON, its rights and interests in $438,080 of
Rockli-n-'s Allocation to TIBURON, and TIBURON agrees to acquire, for consideration,
$438,080 of Rocklin's Allocation in accordance with the terms of this MOU. This MOU shall be
subject to the approval of the Town of TIBURON and the City of ROCKLIN and shall become
effective on the date when both such approvals have been obtained (Effective Date).
2. ROCKLIN agrees to transfer to TIBURON $438,080 of ROCKLIN uncommitted Rule
20A Credits, at a purchase amount of$109,520.
3. Within five (5) business days of the Effective Date, TIBURON shall make a payment to
ROCKLIN in the amount of$109,520 (Acquisition Price). The Acquisition Price shall be made
in immediately available funds via check or wire transfer to an account designed by ROCKLIN.
The Acquisition Price shall constitute full consideration for the transfer and assignment of the
Rocklin Allocation transferred pursuant to this MOU.
EXHIBIT NO.________
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4. Within five (5) business days of ROCKLIN's receipt of the Acquisition Price funds,
ROCKLIN shall deliver a written request to PG&E, with a copy to TIBURON, making a formal
request to transfer and assign $438,080 of the Rule 20A Credits contained in the Rocklin
Allocation to and for the benefit of TIBURON. ROCKLIN shall cooperate in good faith with
TIBURON to provide any additional documentation or information that is reasonably requested
by PG&E to complete the transfer. In the event that PG&E is unable to complete the transfer,
ROCKLIN shall return the Acquisition Price funds to TIBURON within ten (10) business days
of TIBURON's written notification to ROCKLIN.
5. TIBURON acknowledges and agrees that it has conducted its own investigation as to the
applicability and transferability of the Rocklin Allocation for use by TIBURON and that
ROCKLIN has not made any representation or warranty to TIBURON with respect to same. The
actual use of the Rocklin Allocation by TIBURON shall be subject to the rules and procedures
adopted by PG&E, the California Public Utilities Commission, and such other conditions or
requirements as are set forth in the Public Utilities Code.
6. In the event that either Party is in breach of its obligations as set forth in this MOU, then
the non-defaulting Party shall have the right to terminate this MOU on ten (10) business days'
written notice to the defaulting Party unless the default is cured within the notice period. Upon
termination for breach, the non-defaulting party may exercise any right or remedy which it may
have under applicable law.
7. All notices to be given pursuant to this MOU shall be delivered in person, by U.S. mail,
or by commercial overnight delivery and shall be effective upon receipt. All notices shall be sent
and addressed to the representative of the Party that signs this MOU on behalf of the Party.
8. This MOU shall be governed and construed in accordance with the laws of the State of
California, and any action brought relating to this MOU shall be adjudicated in a court of
competent jurisdiction in the County of Placer.
9. Each party shall at its own cost and expense comply with all statutes, ordinances,
regulations and requirements of all governmental entities, including federal, state, county or
municipal, whether now in force or hereinafter enacted.
10. A waiver by either party of any breach of any term, covenant, or conditions contained
herein shall not be deemed to be a waiver of any subsequent breach of the same or any other
term, covenant, or condition contained herein, whether of the same or a different character.
11. The terms of this MOU shall be construed in accordance with the meaning of the
language used and shall not be construed for or against either Party by reason of the authorship
of the MOU or any other rule of construction which might otherwise apply.
12. If any term or portion of this MOU is held to be invalid, illegal, or otherwise
unenforceable by a court of competent jurisdiction, the remaining provisions of this MOU shall
continue in full force and effect.
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13. In the event of any dispute or legal action arising under this MOU, the prevailing Part Y
shall not be entitled to attorney's fees.
14. This MOU may be executed in two or more counterparts, each of which shall be deemed
an original and all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, ROCKLIN and TIBURON have executed this Memorandum of
Understanding effective on the date and year first hereinabove set forth.
CITY OF ROCKLIN
Dated:
Ricky A. Horst, City Manager
ATTEST:
Dated:
Barbara Ivanusich, City Clerk
APPROVED AS TO FORM:
Dated:
Steven P. Rudolph, City Attorney
TOWN OF TIBURON
Dated:
Greg Chanis, Town Manager
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ATTEST:
Dated:
Lea Stefani, Town Clerk
APPROVED AS TO FORM:
Dated:
Benjamin Stock, Town Attorney