HomeMy WebLinkAboutCC 2003-07-14 Comprehensive Annual Financial ReportCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Ana Medina DATE: July 16, 2003 FILE
Deputy Clerk
SUBJECT: CAFR FY 2002
FROM: na o Z REFERENCES:
Assistant rector
ENCLOSURES:
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Please find enclosed the City of Miami Comprehensive Annual Financial 0 V
Report FY' 2002, which was one of the handouts at the workshop conducted
with the Commissioners, Manager and Mayor on July 14, 2003. o�'
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If you have any questions or need further information, please call me at 305-416124b.�ic ^t
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CITY OF
MIAMI
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
City of Miami, Florida
For the Year Ended September 30, 2002
Prepared by the Finance Department
INTRODUCTORY SECTION
PRINCIPAL CITY OFFICIALS ;
TABLE OF CONTENTS
LETTER OF TRANSMITTAL
CERTIFICATE OF ACHIEVEMENT
ORGANIZATIONAL CHART
City of Miami, Florida
Principal City Officials
September 30, 2002
MAYOR
Manuel A. Diaz
CITY COMMISSION
Johnny L. Winton, Chairman U
Arthur E. Teele, Jr., Vice -Chairman
Angel Gonzalez, Commissioner
Tomas Regalado, Commissioner
Joe Sanchez, Commissioner
CITY MANAGER
Joe Arriola
CITY ATTORNEY
Alejandro Vilarello
I
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City of Miami, Florida
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2002
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
PRINCIPALCITY OFFICIALS.................................................................................... i
TABLEOF CONTENTS............................................................................................. iii
LETTEROF TRANSMITTAL ................................................................................... vii
CERTIFICATE OF ACHIEVEMENT...................................................................... xiv
ORGANIZATIONALCHART.................................................................................. xvi
H. FINANCIAL SECTION
IndependentAuditors' Report ........................................................................................1
Management's Discussion. and Analysis (Required Supplementary Information) ........3
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets................................................................................15
Statementof Activities..................................................................................16
Fund Financial Statements:
Balance Sheet — Governmental Funds..........................................................17
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets......................................................................18
Statement of Revenues, Expenditures and Changes in
Fund Balances — Governmental Funds.........................................................19
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds to
the Statement of Activities............................................................................20
Statement of Fiduciary Net Assets — Fiduciary Funds..................................21
Statement of Changes in Fiduciary Net Assets — Fiduciary Funds ...............22
Statement of Net Assets - Discretely Presented Component Units..............23
Statement of Activities - Discretely Presented Component Units ...............24
iii
Notes to the Financial Statements.......................................................................27
Required Supplementary Information (Unaudited):
Budget to Actual Comparison — Major Funds (General and Special Revenue):
GeneralFund.................................................................................................67
Community Development Fund....................................................................68
Public Services Tax Fund.............................................................................69
Notes to the Required Supplementary Information............................................70
Pension Schedules:
Schedule of Funding Progress.......................................................................71
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet — Nonmajor Governmental Funds ......................78
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances — Nonmajor Governmental Funds..............................84
Combining Statement of Fiduciary Net Assets — Fiduciary Funds ...............92
Combining Statement of Changes in Fiduciary
Net Assets — Fiduciary Funds................................................................93
Supplementary Information:
Budget to Actual -Comparison — Nonmajor Governmental Funds:
Community Redevelopment Agency (ORA) Fund.................................96
Community Redevelopment Agency (SEOPW) Fund ............................97
Convention Center Fund.........................................................................98
Economic Development & Planning Services Fund...............................99
Fire Rescue Services Fund....................................................................100
NetOffices Fund...................................................................................101
Parks and Recreations Fund..................................................................102
PoliceServices Fund.............................................................................103
Law Enforcement Trust Fund...............................................................104
Public Works Fund...............................................................................105
CityClerk Fund.....................................................................................106
Local Option Gas Tax Fund..................................................................107
Stormwater Utility Fund.......................................................................108
Gusman and Olympia Fund..................................................................109
General Obligation Bond Fund.............................................................110
Other Special Obligation Bond Fund....................................................111
Community Redevelopment Other Special Obligation Bond Fund ......
112
iv
III. STATISTICAL SECTION
General Governmental Expenditures and Transfers
ByFunction.................................................................................................113
General Governmental Revenues and Transfers
BySource....................................................................................................114
Property Tax Levies and Collections ..........................................................115
Assessed Value of All Taxable Property ....................................................116
Property Tax Rates and Tax Levies
Direct and Overlapping Governments ........................................................116
Special Assessments Collections and Receivables ..:............
Ratio of Net General Bonded Debt To Net Assessed Value
And Net Bonded Debt Per Capital..............................................................117
Ratio of Annual Debt Service Expenditures for General
Bonded Debt to Total General
Governmental Expenditures and Other Financing Uses .............................118
Schedule of Legal Debt Margin..................................................................118
CurrentDebt Ratios....................................................................................119
Schedule of Direct and Overlapping General
ObligationDebt...........................................................................................120
Ten Largest Tax Assessments.....................................................................121
Bank Deposits — Last Ten Years.................................................................121
Building Permits — Last Ten Years.............................................................122
Demographic Statistics...............................................................................122
General Statistical Data...............................................................................123
Growth Factors Relative to Miami -Dade County, Florida ..........................124
IV. OTHER REPORTS
Independent Auditors' Management Letter ..............................................
v
.......127
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V1
01.1,t # v of ffi i a M -1
F�GYTY OF � 2i
t
SCOTT SIMPSON
Director
O u u
o� c0.,
February 7, 2003
The Honorable Mayor,
Members of the City of Miami Commission,
and Citizens of the City of Miami, Florida
Ladies and Gentlemen:
The Comprehensive Annual Financial Report of the City of Miami, Florida (the "City")
for the fiscal year ended September 30, 2002, is hereby submitted. This report consists of
management's representations concerning the finances of the City. Consequently,
management assumes full responsibility for the completeness and reliability of all the
information presented in this report. To provide a reasonable basis for making these
representations, management of the City has established a comprehensive internal control
framework that is designed both to protect the City's assets from loss, theft or misuse and
to compile sufficient reliable information for preparation of the City's financial
statements in conformity with generally accepted accounting principles (GAAP).
Because the cost of internal controls should not outweigh their benefits the City's
comprehensive framework of internal control has been designed to provide reasonable
rather than absolute assurance that the financial statements will be free of material
misstatement. As management, we assert that, to the best of our knowledge and belief,
this financial report is complete and reliable in all material aspects.
JOE ARRIOLA
City Manager
KPMG LLP partnering with Grau & Company, P.A., Sharpton, Brunson & Co. P.A.,
Watson & Company, P.A., and Briele and Echeverria, P.A., all of which are firms of
licensed certified public accountants, has audited the City's basic financial statements.
The goal of the independent audit was to provide reasonable assurance that the financial
statements of the City for the fiscal year ended September 30, 2002, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures in the basic financial statements; assessing the
accounting principles used and significant estimates made by management; and
evaluating the overall financial statement presentation. The independent auditors
concluded, based upon the audit, that there was reasonable basis for rendering an
unqualified opinion that the City's basic financial statements for the fiscal year ended
September 30, 2002, are presented fairly in conformity with GAAP. The independent
auditors' report is presented as the first component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis
to accompany the basic financial statements in the form of Management's Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement MD&A and
should be read in conjunction with it. The City's MD&A can be found immediately
following the report of the independent auditors.
DEPARTMENT`'bF FINANCE
444 S.W. 2nd Avenue, 6th Floor - Miami, FL 33130 - (305) 416-1330 - Fax: (305) 416-1987
Mailing Address: P.O. BOX 330708 Miami, FL 33233-0708
SIGNIFICANT CHANGE IN PRESENTATION
With the September 30, 2002 financial statements, the City successfully implemented
Governmental Accounting Standards Board Statement No. 34, Basic Financial
Statements — and Management's Discussion and Analysis — for State and Local
Governments. The format and purpose of these new statements is discussed in
Management's Discussion and Analysis. Additionally, the notes to the financial
statements discuss the changes and reflect the effects and results of these changes. We
believe this new presentation will provide better information to the users of the
Comprehensive Annual Financial Report (CAFR).
ECONOMIC CONDITION AND OUTLOOK
The City's diversified economic base is comprised of light manufacturing, trade,
commerce, wholesale and retail trade and tourism. The City has made great gains in the
areas of international banking, business and real estate and transshipment, which have
diversified the economic base. Located in the center of a hemispheric market of more
than 700 million people, and easily accessible to South and Central America, the
Caribbean, Europe and Africa, Miami's strategic location and international commerce
infrastructure make it the ideal location for international trade. As a result of expanding
economies in several Latin American countries, international trade has been growing at
double-digit rates in the Miami area.
Airport. In 2002, the Miami International Airport continues to serve nearly 29 million
passengers annually with nearly half of those being international passengers. It has flights
to nearly 200 cities on five continents with 90 scheduled and 32 non-scheduled carriers.
The Miami International Airport also shipped 3.5 billion pounds of domestic and
international cargo during the year.
Sea Port. In 2002, the Port of Miami handled 8.7 million tons of cargo and over 3.6
million cruise passengers. Long considered the Cruise Capital of the World, boasting
more home -ported cruise ships than any other seaport, the Port of Miami received another
distinction in November 1999. It became the year-round home of Royal Caribbean
International's 3,600 -passenger Voyager of the Seas, the largest cruise liner ever built at
that time. Recently, Royal Caribbean is also basing its newest ship the 3,800 passenger
"Regency of the Seas" at the Port of Miami.
Arenas. The American Airlines arena, home of the Miami Heat basketball team, is one of
the premier facilities that ushered in the City's Millennium celebration. The Miami Arena
serves as a venue for concerts, and special events.
Private Development. The City is experiencing a period of unprecedented private
development. Projects recently completed, under construction, or in design will add over
$1 billion in value to the property tax roll. The development includes four five star
hotels, ten high- rise condominiums and five new office towers.
Publie/Private Development Ventures. The City will continue to focus efforts on its
waterfront properties. Projects such as the Dinner Key Marina, Virginia Key, and
Bicentennial Park are major projects, which fit prominently into the City's long-term
economic growth and financial well being. A major change will occur in Watson Island.
The Island will be developed with the new location of Parrot Jungle, the Miami
Children's Museum, the headquarters of the Greater Miami Convention and Visitors
Bureau, an airport operation for seaplanes and the Island Gardens Development which
will contain two hotels, retail spaces and a mega -yacht marina.
Major Initiatives. With the improvement in the financial condition of the City, the
emphasis has been redirected to improving the infrastructure within the City. The City
has begun a program of major renovations and improvements to City parks, streets,
sidewalks and drainage. Additionally, a major effort is underway to modify and improve
the City's sanitation services. While the external improvements are critical to promote
further economic development, the City has completed a strategic planning process to
identify and plan for technology improvements. A major result of this study will be a
shift in technology from a mainframe environment to a distributed network. The City will
also be moving much of its services and information to the Internet.
DEBT MANAGEMENT
The City was very active in debt market during fiscal year 2002. In November 2000, the
citizens of the City approved the issuance of $255 million in Limited Ad -Valorem
General Obligation Bonds. These bonds will be used for infrastructure improvements.
Approximately fifty percent of the proceeds will be used to expand and improve the
City's park system. The City issued the first series of these bonds in July 2002, with an
issuance of $153 million. The City was able to capitalized on the historic lows of both
treasury and tax exempt rates available to provide significant savings to the City. In
March 2002, the City refunded approximately $32.5 million of General Obligation debt
with a present value savings of approximately $1.45 million with a true interest cost of
4.92%. The City also was able to refund approximately $39.75 million of Special
Obligation Bonds with a present value savings of $1.23 million and a true interest cost of
4.63%. It is management's objective to adequately plan and meet the City's
comprehensive construction demands for essential capital improvements and equipment,
and, at the same time, ensure that the residents of the community are not overburdened
with general obligation long-term debt payable from ad valorem taxes.
ix
The following chart indicates the principal amortization of the City's general obligation
debt in five-year increments. As can be seen, approximately 42% of the City's
outstanding debt will be retired within the next ten years.
General Obligation Debt
Principal Amortization
For the Five Year Period Ending September 30, 2002
2007 $
54,987,987
2012
52,111,984
2017
58,649,406
2022*
87,127,176
* The final maturity of GO debt will be retired in Fiscal 2022.
Cash Management and practices. In order to achieve maximum financial return on all
available funds, the Finance Department pursues an aggressive cash management and
investment program within the constraints imposed by Florida Statutes and local policies
adopted by resolution by the City Commission.
The City operates within established formal investment policies, which applies to all
investment of public funds. Idle cash balances are invested on a daily basis at the best
interest rates available in the markets. Investments consist primarily of United States
treasuries and agencies securities, commercial paper, and money market funds.
For purposes of maximizing the interest earning yield on short-term investments, cash
balances of all funds are pooled. It is the City's policy not to invest in leveraged
derivatives. The primary objective of the City's policy is preservation of capital.
Investment income reported in these financial statements includes appreciation in the fair
value of investments. Increases in fair value during the current year, however, do not
necessarily represent trends that will continue, nor is it always possible to realize such
amounts, especially in the case of temporary changes, in the fair value of investments that
the City intends to hold to maturity.
X
A summary and comparison of investment activity for the three fiscal years, are as follows:
Average Portfolio
Balance (End of Year)
Average Investment Yield
2002 2001 2000
$ 362,439,535 $ 301,356,555 $ 248,710,829
3.77% 5.72% 5.05%
Interest Earned on
Investments managed
by the Finance Department $ 13,676,175 $ 16,804,173 $ 14,254,342
The following chart summarizes the City's investments, including cash equivalents, at September
30,2002:
Cash Equivalents and Investment Types
Money Mar
5%
U.S Treasuries
10%
Commercial
17%
U.S. Government
Agencies
68%
Risk Management. The City administers a self-insurance program for workers'
compensation, tort liability, property, and group health and life insurance programs,
subject to certain stop -loss provisions. The health and life insurance programs are
administered by an independent administrator. The City funds the program on an annual
payout basis. Insurance coverage is maintained with independent carriers for property
damage to City facilities. The City maintains no excess coverage with independent
carriers for workers' compensation and general liability.
At September 30, 2002, the estimated liability for insurance claims that are expected to be
paid totaled $17,337,448. The estimated long-term liability for insurance claims, at
September 30, 2002, is $65,190,000. The estimated liability for insurance claims is
discounted at an interest rate of 5%.
Xi
Pensions. The City maintains three separate single -employer; defined benefit pension
plans for its public safety employees, elected officials, and its general and sanitation
employees. Each year, an independent actuary engaged by the pension plans calculates
the amount of the annual contribution that the City must make to the pension plans to
ensure that the plans will be able fully meet their obligations to retired employees on a
timely basis. As a matter of policy, the City is required to fully fund each year's annual
required contribution to the pension plans as determined by the actuary.
The City also provides to certain executive employees a single -employer, defined
contribution pension plan administered by ICMA Retirement Trust. The City is required
to contribute 8% of the employee's earnings to this plan. The City's contribution for the
City Manager and City Attorney is not limited to the 8% but is an amount stipulated per
their contracts with the City.
The pension plans for the Fire and Police (FIPO) and General and Sanitation Employees
(GESE) experienced significant decreases in the fair value of the plans assets in the fiscal
year ending September 30, 2002. These decreases were caused by declines in the fair
value of the investments due to general market conditions. The October 1, 2002 actuary
reports for FIFO and GESE have been presented to each of the pension Boards and the
required contributions range from $25.6 million to $56.3 million for FIPO and $6.9
million to $15.9 million for GESE. The City is currently working with the both Boards to
explore possible actuary assumption changes that will serve to minimize the large
increases and decreases for the City's pension contribution from year to year.
Additional information on the City's pension arrangements can be found in Note 10 in the
notes to the financial statements.
CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to City of
Miami, Florida for its Comprehensive Annual Financial Report (CAFR) for the fiscal
year ended September 30, 2001. The Certificate of Achievement is the highest form of
recognition in the area of governmental accounting and financial reporting. The
attainment of this award represents a significant accomplishment by a government and its
financial management.
In order to be awarded a Certificate of Achievement, the City had to publish an easily
readable and efficiently organized CAFR, whose contents conform to established
program standards. Such comprehensive reports must satisfy both generally accepted
accounting principles and applicable legal requirements. To earn a Certificate of
Achievement, a government must demonstrate constructive spirit of full disclosure to
clearly communicate its financial story while enhancing the understanding of the logic
underlying the traditional governmental financial reporting model.
XIl
The City's 2001 Comprehensive Annual Financial Report has been evaluated by an
impartial Special Review Committee composed of other government officers,
independent certified public accountants, educators and others with particular expertise in
government accounting and financial reporting. We believe that the 2002 Comprehensive
Annual Financial Report continues to conform to the high standards of the Certificate of
Achievement Program and we are submitting it to the GFOA.
ACKNOWLEDGEMENTS
The Comprehensive Annual Financial Report's preparation was made possible because of
the efficient, dedicated and professional efforts of the entire staff in the Finance
Department. The significant amount of year-end closing procedures required prior to the
audit, could not have been accomplished without much hard work and personal sacrifice.
Each member of the department has our sincere appreciation for the contributions made
to assist in the in-house preparation of this report.
The guidance and cooperation of the Mayor and City Commission in planning and
conducting the financial affairs of the City is greatly appreciated. We also wish to
express our appreciation to our Certified Public Accountants, KPMG LLP, in association
with Grau & Company, P.A., Sharpton, Brunson & Co. P.A., Watson & Company, P.A.,
and Briele and Echeverria, P.A., for their cooperation and assistance.
V\AA
Joe Arriola Linda M. Haskins, CPA Sutlsim,pson,
City Manager Chief Financial Officer CPA, CPFO, CGFO, CGFM
Finance Director
CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United Sates and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Miami, Florida for its Comprehensive Annual Financial Report for the fiscal year ended
September 30, 2001. The Certificate of Achievement is a prestigious national award -
recognizing conformance with the highest standards for preparation of state and local
government financial reporting.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an
easily readable and efficiently organized Comprehensive Annual Financial Report, the
contents of which conform to program standards. Such reports must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our
current report continues to conform to Certificate of Achievement Program requirements,
and we are submitting it to GFOA to determine its eligibility for another certificate.
X1v
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Miami,
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2001
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting,
Ole Y -e e-, .01
President
Executive Director
XV
r_m colurulSSIO
CHNRMAN J. WINTON
VICE-CHAIRMAN A. TEELE, JR.
COMMISSIONER A GONZALEZ
COMMISSIONER T. REGALADO
COMMISSIONER J. SANCHEZ
City Clarki�i�i City Attorney
Priscilla A Thompson m Alyendm Veareso
Auditor General
Vcctor Igwe
Virginia Key Beach
Park Trust
Guy ferchion
y
IntemMionel Trade
Board
Ctvfon Harper
Miami Spate &
FxhiOaion Aullrodly
Jamas Jarrkkna
Sayfran Pads
Management Trust
Tim Sclrnand
Civil SerAw Board
TiekM MkcdkpM
Downtown
Daysbpnen NAhority
Dana Nottingham
Community
Redevok pnen
Agency
Franc Rol—
Off-Street Parking
Aahasy,
AMv Noriega
Civilian Investigative Panel
(Professional Compliance
staff of CIP)
City of Miami Organizational Chart
I Residents of Miami I
Chef Administrator I City Manager
(Joe Arricla)
Grants (JC Espinosa) • CitiStat (Don Riedel)
Agenda (Elva Alorm) • Transportation
Commurdty Relations (Ada Rojas) (Clark Turner)
Police
John TYnoney
Fig -Rescue
Wiliam Bryson
Communications
Carlos McDonald
Capital Improven
Program
Jorge Cano
Chief Rnancial Officer
Linda Haskins
Finance
Stolt Simpson
purchasing
Glenn Marcos
Dept. of Economic
Development
(REED & Asset
Management)
Keitin Carswell
Dept of Employee Relations
(Human Resources
and Labor Relations)
Rosefs Mark
Conference, Conventions
and Pubic FacifYtles
Christina Abrams
Community Development
AcIlm Barbera Gomer-tod4w
Risk MwmWnen
Dinh Ericson
EXECUTIVE MAYOR
Manuel A. Diaz
• Sister Cities (Anthony Georges -Pierre)
• Cultural Affairs
• SpeGal Events
(Robert Parente & Michel Spence)
Chief Information Officer Chief of Strategic Planning,
Chief of Neighborhood (Cb) 9 9.
Victor MononServicea Larryy Spring
uirre Information Technology Budgeting ringrmance
Prier Korktis
N.E.T.
Adie Eddie Bor s
Sold Waste
Clarence Pan --
D Intent
attersonDepartment of Municipal Service
(GSA & Pubic Works)
Acting GSA Alex Martinez I
Acting PW Abed Dominguez
Building
Hector Lima
Planning and Zoning
Ana Gebbert
Parks & Recreation
Santiago Corrada
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
MANAGEMENT'S DISSCUSION AND ANALISIS [
BASIC FINANCIAL STATEMENTS
(Goverment -wide Financial Statements)
(Fund Financial Statements)
NOTES TO THE FINANCIAL STATEMENTS
REQUIRED SUPPLEMENTAL INFORMATION
COMBINING AND INDIVIDUAL FUND STATEMENTS
AND SCHEDULES
lul.,A.64,6,
One Biscayne Tower
Suite 2800
2 South Biscayne Boulevard
Miami, FL 33131
Independent Auditors' Report
The Honorable Mayor and City Commissioners
City of Miami, Florida:
We have audited the accompanying financial statements of the governmental activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of
the City of Miami, Florida (the City), as of and for the year ended September 30, 2002, which collectively
comprise the City's basic financial statements as listed in the table of contents. These financial statements
are the responsibility of the City's management. Our responsibility is to express opinions on these financial
statements based on our audit. We did not audit the financial statements of the Downtown Development
Authority of the City of Miami, Florida, the Miami Sports and Exhibition Authority, the Health Facilities
Authority, and the Bayfront Park Management Trust of the City of Miami, Florida, which combined
statements reflect 63% and 57% of the assets and revenues, respectively, of the aggregate discretely
presented component units. We also did not audit the City of Miami, Florida's pension trust funds, which
combined financial statements reflect 87% of the total assets of the aggregate remaining fund information.
Those financial statements were audited by other auditors whose reports thereon have been furnished to us,
and our opinion, insofar as it relates to the amounts included for those entities, is based on the reports of
the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit and the reports of other auditors provide a reasonable basis for our
opinions.
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the City of Miami, Florida as of September 30, 2002, and the respective
changes in financial position thereof for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
As discussed in note 1, the City has implemented a new financial reporting model, as required by the
Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements — and
Management's Discussion and Analysis —for State and Local Governments, GASB Statement No. 37,
Basic Financial Statements — and Management's Discussion and Analysis —for State and Local
MMMM
South Florida Business Unit
KPMG LLP. KPMG LLP a U.S. limited liability partnership, is
a member of KPMG International, a Swiss association. Miami Fort Lauderdale West Palm Beach
Governments: Omnibus, portions of GASB Statement No. 38, Certain Financial Statement Note
Disclosures, and GASB Interpretation No. 6, Recognition and Measurement of Certain Liabilities and
Expenditures in Governmental Fund Financial Statements, as of October 1, 2001.
In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2003
on our consideration of the City's internal control over financial reporting and our tests of its compliance
with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be read in conjunction with this
report in considering the results of our audit.
The management's discussion and analysis on pages 3 through 13, the budget to actual comparison
information on pages 67 through 70, and the schedule of funding progress on page 71, are not a required
part of the basic financial statements but are supplementary information required by the accounting
principles generally accepted in the United States of America. We and the other auditors have applied
certain limited procedures, which consisted principally of inquiries of management regarding the methods
of measurement and presentation of the required supplementary information. However, we did not audit
the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining and individual fund
statements and schedules, and statistical section listed in the accompanying table of contents, are presented
for the purposes of additional analysis and are not a required part of the basic financial statements. The
combining and individual fund statements and schedules have been subjected to the auditing procedures
applied by us and the other auditors in the audit of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial statements taken as a whole. The
introductory and statistical sections have not been subjected to the auditing procedures applied by us and
the other auditors in the audit of the basic financial statements and, accordingly, we express no opinion on
them.
February 7, 2003
2
�MC= LCP
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Miami (the "City"), we offer readers of the City's financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended September
30, 2002. We encourage readers to consider the information presented here in conjunction with additional
information that we have furnished in our letter of transmittal, which can be found on pages vii — xiii of this
report.
FINANCIAL HIGHLIGHTS
• The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $696,253,359
(net assets).
• The governmental activities revenue increased $34,985,142 (or 7.2%) and the net results from
activities increased by $3,692,807 (or 13.2%). In both years (2002 and 2001), the results of activities
produced an increase in net assets of $31,599,623 and $27,906,816, respectively.
• The General Fund (the primary operating fund) reflected on a current financial resource basis, reflects
an increase in fund balance of $22,854,010 (or 19.2%).
• The City's total debt increased by $139,588,611 (42.3%) during the current year. The key factor in
this increase was the issuance of $153,186,406 in Limited Ad -Valorem General Obligation Bonds.
• Net assets of the Police and Firefighter's Pension Trust Fund (FIPO) and General and Sanitation's
Retirement Trust (GESE) decreased by $96,753,182 and $83,399,051, respectively. These decreases
were caused by declines in the fair value of investments.
USING THIS ANNUAL REPORT
This discussion and analysis are intended to serve as an introduction to the City's basic financial
statements. The City's basic financial statements comprise three components; 1) govemment-wide
financial statements, 2) fund financials statements, and 3) notes to the financial statements. This report also
contains other supplementary information in addition to the basic financial statements themselves.
In light of the fact that this is a very different presentation of the City's previous general purpose financial
statements, the following graphic is provided for your review.
Management's Discussion
A and Analysis
12
(required supplementary information)
(new)
c
a�
ami Government -wide Fund financial
CIO financial statements H statements
(new) (refocused)
(pages 15 - 16) (pages 17 - 25)
a
114 Notes to the financial statements
U
rA (expanded / restructured]
Oq (pages 27 - 66)
° a
Required supplementary information
o,
(other than MD&A)
w
N
(expanded)
(pages 67 - 71)
The new financial statement focus is on both the City as a whole (government -wide) and on the major
individual funds. Both perspectives (government -wide and major fund) allow the user to address relevant
questions, broaden a basis for comparison (year to year or government to government) and enhance the
City's accountability.
Government -Wide Financial Statements
The government -wide financial statements (see pages 15 — 16) are designed to be corporate -like, in that all
governmental activities are presented in columns that add to a total for the Primary Government. The focus
of the Statement of Net Assets (the "Unrestricted Net Assets") is designed to be similar to bottom line
results for the City and its governmental activities. This statement, for the first time, reflects governmental
fund's current financial resources (short-term spendable resources) with capital assets and long-term
obligations. The City does not have any business -type activities for financial reporting purposes.
The Statement of Activity (see page 16) is focused on both the gross and net cost of various functions
(including governmental and component units), which are supported, by the government's general tax and
other revenues. This is intended to summarize and simplify the user's analysis of the cost of various
governmental services and/or component units.
4
Component Units, which are other governmental units over which the City can exercise influence and/or
may be obligated to provide financial subsidy, are presented as a separate column in the Government -wide
Financial Statements. The focus of the statements is clearly on the Primary Government and the
presentation allows the user to address the relative relationship with the Component Units.
The Governmental Activities reflects the City's basic service, including Police, Fire, Solid Waste
Collection, Parks and Cultural Activities, and general administration. Property taxes, other local taxes, and
federal grants finance the majority of these activities.
Fund Financial Statements
Traditional users of governmental financial statements will find the Fund Financial Statements presentation
more familiar. The focus is on the City's major funds. The fund financial statements provide more
information about the City's most significant funds — not the City as a whole.
The City has two kinds of funds:
Governmental Funds — Most of the City's basic services are included in governmental funds, which focus
on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the
balances left at year end that are available for spending. Consequently, the governmental funds statements
provide a detailed short-term view that helps the reader determine whether there are more or fewer
financial resources that can be spent in the near future to finance the City's programs. Because this
information does not encompass the additional long-term focus of the government -wide statements,
additional information is provided at the bottom of the governmental funds statement that explains the
relationship (or differences) between them
The City maintains thirty individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and
changes in fund balances for the General Fund, Community Development Fund, Public Services Taxes
Special Revenue Fund, and General Government Capital Projects Fund, which are considered to be major
funds. Data from the other twenty-six governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form
of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund and certain Special Revenue Funds.
Budgetary comparison schedules have been provided for the General Fund and each major fund Special
Revenue Fund that adopts a budget to demonstrate compliance with the budget and are presented as
required supplementary information.
The basic government fund statements can be found on pages 17 — 25 of this report.
Fiduciary Funds — These funds are used to account for resources held for the benefit of parties outside the
City. Fiduciary funds are not reflected in the government -wide financial statements because the resources
of the funds are not available to support the City's own programs.
The basic fiduciary fund financial statements can be found on pages 21 — 22 of this report.
Notes to the Financial Statements — The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund statements. The notes to the financial
statements can be found on pages 27 — 66 of this report.
Other Information — In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning budgetary comparisons and the City's
progress in funding its obligations to provide pension benefits to its employees. Required supplementary
information can be found on pages 67 — 71 of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds are
presented immediately following the required supplementary information. Combining and individual fund
statements and schedules can be found on pages 73 — 93 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Net Assets
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position.
In the case of the City, assets exceed liabilities by $696,253,359 at the close of the most recent fiscal year.
The largest portion of the City's net assets (85.9%) reflects its investment in capital assets (e.g., land
buildings, machinery and equipment), less any related debt used to acquire those assets that is still
outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets
are not available for future spending. Although the City's investment in capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City's net assets (16.5%) represents resources that are subject external
restrictions on how they may be used.
The remaining unrestricted net assets deficit of ($16,932,986) is primarily the result of the excess of
unrestricted liabilities over unrestricted assets.
The deficit in unrestricted net assets in government activities decreased by $50,904,955. The primary
reason for this deficit reduction was the degree to which increases in ongoing revenues exceed similar
increases in ongoing expenses. Citywide unrealized gains in investments (excluding pension funds) was
$2,775,689 in fiscal year 2002.
The following schedule reflects a summary of Net Assets compared to prior year.
Summary of Net Assets
as of September 30
Current and other assets
Capital assets
Total assets
Other liabilities
Long-term liabilities outstanding
Total liabilities
Net assets:
Invested in capital assets,
net of debt
Restricted
Unrestricted (Deficit)
Total net assets
Governmental
Activities
2002
2001
$ 562,707,660
$ 356,006,617
827,178,112
843,545,793
1,389,885,772
1,199,552,410
120,877,487
114,215,4 5 8
572,754,926
420,683,216
693,632,413
534,898,674
598,154,380 600,758,725
115,031,965 131,732,952
(16,93 2,9 86) (67,8 37,94 1)
$ 696,253,359 $ 664,653,736
For more detailed information see the Statement of Net Assets (page 15).
6
Changes In Net Assets
The following schedule compares the revenues and expenses for the current and previous year.
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Franchise fees
Utility taxes
Intergovernmental revenues
Investment earnings
Other
Total revenues
Expenses:
General government
Planning and development
Community development
Community redevelopment areas
Public works
Public safety
Public facilities
Parks and recreation
Interest on long-term debt
Unallocated depreciation
Total expenses
Increase in net assets
Chances in Net Assets
Governmental Activities
2002 2001
$ 161,992,101 $ 158,934,832
51,137,825 45,188,091
23,053,287 11,510,300
151, 614,600
137,722,987
22,190,470
25,798,118
58,314,804
38,556,040
36,644,840
46,010,073
10,645,639
16,149,719
4,035,765 4,774,029
519,629,331 484,644,189
94,349,348
13,289,988
47,186,103
6,125,242
53,950,238
200,727,361
9,832,601
48,995,272
12,947,127
48,367,294
5,480,769
58,492,517
205,009,499
10,470,660
19,550,960
24,848,429
17,252, 301
16,360, 240
25,765,566
25,765,566
488,029,708
456,737,373
$ 31,599,623 $
27,906,816
For more detailed information see the Statement of Activities (page 16).
Governmental Activities — As noted earlier, governmental activities increased the City's net assets by
$31,599,623. Key elements of this increase are as follows:
The increase in capital grants and contributions is primarily the result of an increase of approximately $10.0
million in grant awards from the U.S. Department of Justice.
The Utilities Services Tax had increases ($14.0 million) as a result of the October 1, 2001 introduction of
the State's new Communication Services Tax, which replaced the Utility Services Tax and Utility Fees on
Telecommunication and Cable TV charges.
Investment Income for fiscal year 2002 was reduced by a decline in interest rates that were reflective of
general market conditions.
General government expenditures increased in fiscal 2002. This increase reflects an aggregation of growth
in general expenditures including $14.0 million in parking surcharge costs, $5.0 million in severance
benefits, $2.0 million in additional principal reduction, $3.0 million in pension costs, $14.0 million in
operation and maintenance, and $5.0 million agreed increases in union contracts.
Parks and Recreation experienced a reduction of approximately $4.8 million. The expenses recognized in
this activity are primarily grant reimbursed expenditures. The reduction is due to a decrease in the number
of projects managed by the City in fiscal year 2002.
Revenue by Source - Governmental Activities
Other
I % Charges for services
Investment earnings 30%
Public service taxes 2%
11%
State revenue sharing
9%
Operating grants
Licenses and fees and contributions
4% 10%
Operating grants and
Property taxes contributions
29% 4%
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related
legal requirements.
Governmental Funds — The focus of the City's governmental funds is to provide information on near-term
inflows, outflows and balances of spendable resources. Such information is useful in assessing the City's
financing requirements. In particular, unreserved fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unreserved
fund balance of the General Fund was $138,322,603, while the total fund balance reached $141,527,853.
As a measure of the General Fund's liquidity, it may be helpful to compare both unreserved fund balance
and total fund balance to the fund's total operational expenditures. Unreserved fund balance represents
42.6% of the total expenditures and transfers out for recurring operational costs reported in other funds,
C while total fund balance represents 43.6% of that same total amount.
The General Fund's fund balance increased by $22,854,010 during the current fiscal year. Key factors in
this growth are as follows:
• A 10.7% increase in taxable property values resulted in an additional $10,691,980 in property
tax revenue.
• Construction activity increased building permit fees from $14,346,019 to $14,770,007. The
estimated value of construction permitted increased from $635,696,950 to $695,459,545, an
increase of 9.4%.
• A increase of $10,672,003 in transfers from other funds. The increase was primarily due to
the introduction the State's new Communication Services Tax, which replaced the Utility
Services Tax and Utility fees on Telecommunication and Cable TV charges.
Financial highlights of the City's other major government funds are as follows:
The Community Development Fund has a total fund balance of $7,613,838, of which $201,713 is reserved
for the payment of purchase orders of the prior period. The net increase in fund balance during the current
year was attributable to expenditure control as well as better grant management.
The Public Services Tax Fund has a total fund balance of $9,655,341, all of which is unreserved and
available for spending at the City's discretion. The State of Florida modified the Public Services Tax
(PST) effective October 1, 2001, and it is now referred to as Communication Services Tax (CST). This tax
produced increased revenues of $10,672,003 in the current fiscal year.
The General Government Capital Projects Fund balance increased from $45,860,849 to $87,060,187. This
increase can be credited to the issuance of $153,186,406 Limited Ad -Valorem General Obligation Bonds in
July 2002, of which $47,580,087 was credited to this fund as of September 30, 2002.
GENERAL FUND BUDGETARY HIGHLIGHTS
The General Fund Budget was increased by $20,870,370 from the original budget to the final budget (an
increase of 6.2%). These increases can be summarized as follows (please see budget to actual comparison
on page 67):
• $193,879 in miscellaneous increases in general government activities
• $48,068 in increases allocated to the planning and development department
• $2,066,562 in increases allocated to the public works department
• $6,062,939 in increases allocated to public safety
• $224,275 in increases allocated to public facilities
• $81,618 in increases allocated to parks and recreation
• $12,193,029 in increases in transfers to other funds
Of this increase, all of it was to be funded out of revenues in excess of the original budget estimates
The Charges for services was increased primarily due to recognition of $8,423,302 received under the
provisions of Florida Statutes 175 and 185, to fund a separate non-contributory money purchase benefit
plan for the public safety employees of the City. Additional information on the plan can be found in Note
9(F) in the notes to the financial statements.
The general government function experienced a $14,000,000 charge due to a settlement of the parking
surcharge program.
The public safety function experienced a $8,423,302 increase in personnel costs due to the recognition for
the Chapter 175 and 185 pension trust plans payments.
COMMUNITY DEVELOPMENT FUND BUDGETARY HIGHLIGHTS
The Community Development Fund Budget was increased by $26,401,489 from the original budget to the
final budget (an increase of 57.0%). The budget for Community Development was increased during the
year to reflect the reconciliation of unused multiyear projects that were previously appropriated (please see
budget to actual comparison on page 68).
PUBLIC SERVICES TAX FUND BUDGETARY HIGHLIGHTS
The Public Services Tax Fund Budget was increased by $8,000,000 from the original budget to the final
budget (an increase of 18.7%). The budget for Public Services Tax was increased to reflect unanticipated
revenues, which resulted from in the changes in the CST (please see budget to actual comparison on page
69).
10
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
As of year end, the City had $827,178,112 invested in a variety of capital assets, as reflected in the
following schedule, which represents a net decrease (additions less retirements and depreciation) of $16.4
million or 1.94% from the end of last year.
Capital Assets at Year End
(Net of Depreciation)
Land
Buildings
Improvements Other Than Buildings
Building Improvements
Machinery and Equipment
Infrastructure
Construction in Progress
Total
Governmental
Activities
2002
2001
$ 63,695,567 $
63,891,845
88,625,315
90,930,587
6,508,436
7,586,939
1,923,417
61,487
45,527,929
43,705,221
577,556,612
603,322,178
43,340,836
34,047,536
$ 827,178,112 $
843,545,793
Major capital asset events during the current fiscal year included the following:
• The City continued with the upgrading of the City's 800MHz radio systems. $4.28 million
was invested in this project during the most recent fiscal year. This represents 57.7% of the
expected total cost of this project, which will be completed in Fiscal 2003.
• The Department of Solid Waste continued with implementation of the "One -Armed Bandit"
Program as well as replacing older trucks in the fleet with an investment of $2.42 million
during the most recent fiscal year.
• Also, $5.9 million was invested in the replacement of various City Vehicles, Police Cars, and
Fire and Rescue Apparatus.
Additional information on the City's capital assets can be found in Note l(H)(6) and Note 5 in the notes to
the financial statements.
11
Long-term debt
At the end of the current fiscal year, the City had total bonded debt outstanding of $469,434,197. Of this
amount, $252,876,553 comprises debt backed by the full faith and credit of the City and the remainder
represents bonds and loans secured solely by specific revenue sources (i.e., revenue bonds).
Outstanding Debt
General Obligation Bonds, Special Obligations,
and Notes and Loans
Governmental Activities
2002 2001
General Obligation Bonds $ 252,876,553 $ 107,620,000
Special Obligation Bonds,
Notes and Loans 216,557,644 222,225,586
Total $ 469,434,197 $ 329,845,586
The City's total debt increased by $139,588,611 (42.3%) during the current fiscal year. The key factor in
this increase was a $153,186,406 Limited Ad -Valorem Bond issuance.
In July of 2002, the City issued $153,186,406 of Limited Ad -Valorem Bonds to finance a homeland
security program, neighborhood improvements, and capital projects and infrastructure. This is the first
issuance of new debt for the City in seven years.
During the current fiscal year, the City refinanced some of it existing debt to take advantage of prevailing
market interest rates. This refinancing of the City's general and special obligation bonds resulted in a
decrease in future debt service payments of $1.45 million and $1.23, respectively.
The City received two rating upgrades during the year from Moody's Investor Service (Baa3 to Baa2, Baa2
to Baal) and an upgrade from Standard and Poor's (BB+ to BBB+).
The City also received its first underlying rating of BBB+ from Fitch Ratings' in concert with the general
obligation refunding in March 2002.
Additional information on the City's long-term liabilities can be found in Note 6 on pages 47 - 52 in the
notes to the financial statements.
12
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
The City's elected and appointed officials considered many factors when adopting the fiscal year 2003
budget. Included among these factors was uncertainty regarding the Parking Surcharge Tax,
Communication Services Tax, and various economic indicators.
On July 11, 2001, the Third District Court of Appeals ruled that the parking surcharge statute was
unconstitutional. The City has appealed the ruling to the Florida Supreme Court who has upheld the ruling
of the lower court. The legislature has approved a bill that has been signed by the Governor that amends the
parking surcharge statute and eliminates the constitutional problems that the court found. This bill became
law on November 30, 2001. A tentative settlement has been reached in this action that calls for a refund of
amounts paid by users of parking services in Miami. The settlement totaled $14 million and has been
recorded as a liability in the accompanying basic financial statements.
Per the U.S. Department of Labor, the unemployment rate for South Florida is currently 7.4%, up from
7.2% a year ago. This rate is higher than the state's average unemployment rate of 5.4% and the national
average rate of 5.7%. The region's inflation rate of 2.7% compared to the national indices of 1.6%.
FINANCIAL CONTACT
The City's financial statements are designed to present users (citizens, taxpayers, customers, investors and
creditors) with a general overview of the City's finances and to demonstrate the City's accountability. If
you have questions about the report or need additional financial information, contact Scott Simpson,
Director of the City of Miami's Finance Department, 444 Southwest 2°d Avenue, 6`" Floor Finance, Miami,
Florida 33130, or visit the City's web site at www.ci.miami.fl.us.
13
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14
City of Miami, Florida
Statement of Net Assets
As of September 30, 2002
Liabilities
Accounts Payable
Governmental
Component
Accrued Liabilities
Activities
Units
Assets
3,742,873
1,396,372
Cash, Cash Equivalents and Investments
$ 487,370,164
$ 12,330,948
Receivables - Net
17,959,506
3,092,704
Accrued Interest
4,925,755
23,259
Due From Other Governments
25,172,346
-
Due From Primary Government
-
1,642,730
Due From Component Units
600,607
-
Inventory
-
5,000
Prepaid and Other Assets
735,687
1,132,740
Net Pension Asset
6,278,444
-
Restricted Assets:
17,337,448
-
Cash, Cash Equivalents and Investments
19,665,151
13,144,418
Capital Assets:
444,922,236
45,688,810
Non -depreciable
107,036,403
19,749,967
Depreciable - Net
720,141,709
50,525,198
Total Assets
1,389,885,772
101,646,964
Liabilities
Accounts Payable
11,751,608
1,904,830
Accrued Liabilities
39,932,097
799,562
Accrued Interest Payable
3,742,873
1,396,372
Due To Other Governments
2,669,545
-
Due To Primary Government
-
600,607
Due To Component Units
1,642,730
-
Deferred Revenue
10,550,128
1,020,708
Deposits
6,212,340
234,269
Non -Current Liabilities
Due Within One Year:
Bonds and Loans Payable
22,057,850
2,375,000
Compensated Absences
4,980,868
53,288
Claims Liability
17,337,448
-
Due In More Than One Year:
Bonds and Loans Payable
444,922,236
45,688,810
Plus: Unamortized Bond Premium
2,939,154
109,348
Less: Unamortized Bond Discount
(485,043)
-
Compensated Absences
60,188,579
28,263
Claims Liability
65,190,000
-
Total Liabilities
693,632,413
54,211,057
Net Assets
Invested in Capital Assets - Net of Related Debt
598,154,380
22,694,896
Restricted for:
Capital Projects
93,161,095
3,207,661
Debt Service
14,323,926
2,428,081
Law Enforcement
7,546,944
-
Unrestricted (Deficit)
(16,932,986)
19,105,269
Total Net Assets $
696,253,359
$ 47,435,907
The accompanying notes are an integral part of the financial statements.
15
Functions/Programs Activities:
Primary Government
Governmental Activities:
General Government
Planning and Development
Community Development
Community Redevelopment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Interest on Long -Term Debt
Unallocated Depreciation
Total primary government
Component Units:
Miami Sports Exhibition Authority
Department of Off -Street Parking
Downtown Development Authority
Bayfront Park
Health Facilities Authority
Total component units
City of Miami, Florida
Statement of Activities
For the Year Ended September 30, 2002
General Revenues:
Taxes:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Convention Development Taxes
Occupational licenses and Franchise Fees
State revenue sharing (sales tax and fuel tax)
Public Service Taxes
Investment Earnings
Other
Total General Revenues
Change in Net Assets
Net assets - Beginning
Net assets - Ending
The accompanying notes are an integral part of the financial statements.
16
133,633,077
1,969,282
17,981,523
-
Net (Expenses) Revenue and Changes
6,823,950
22,190,470
Program Revenues
36,644,840
in Net Assets
58,314,804
-
Operating
Capital
Primary Government
1,641,169
283,446,118
Charges for
Grants and
Grants and
Governmental
Component
Expenses
Services
Contributions
Contributions
Activities
Units
$ 94,349,348
$ 25,145,862
$ 831,457
$ 2,330,423
$ (66,041,606)
$
13,289,988
16,639,268
-
345,639
3,694,919
47,186,103
3,121,251
48,447,871
-
4,383,019
6,125,242
2,848,509
-
-
(3,276,733)
53,950,238
51,374,858
-
34,853
(2,540,527)
200,727,361
46,840,040
650,000
14,884,779
(138,352,542)
9,832,601
13,605,750
-
48,666
3,821,815
19,550,960
2,416,563
1,208,497
5,408,927
(10,516,973)
17,252,301
-
-
-
(17,252,301)
25,765,566
-
-
-
(25,765,566)
$ 488,029,708
$ 161,992,101
$ 51,137,825
$ 23,053,287
(251,846,495)
$ 8,777,479
$ 2,756,154
$ -
$ -
(6,021,325)
12,440,374
11,686,763
-
-
(753,611)
2,082,450
50,251
236,286
63,372
(1,732,541)
2,698,332
1,642,456
-
-
(1,055,876)
175
(175)
$ 25,998,810
16,135,624
$ 236,286
$ 63,372
(9,563,528)
General Revenues:
Taxes:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Convention Development Taxes
Occupational licenses and Franchise Fees
State revenue sharing (sales tax and fuel tax)
Public Service Taxes
Investment Earnings
Other
Total General Revenues
Change in Net Assets
Net assets - Beginning
Net assets - Ending
The accompanying notes are an integral part of the financial statements.
16
133,633,077
1,969,282
17,981,523
-
-
6,823,950
22,190,470
668,932
36,644,840
-
58,314,804
-
10,645,639
577,550
4,035,765
1,641,169
283,446,118
11,680,883
31,599,623
2,117,355
664,653,736
45,318,552
$ 696,253,359
$ 47,435,907
City of Miami, Florida
Balance Sheet
Governmental Funds
September 30, 2002
The accompanying notes are an integral part of the financial statements
17
Public
Other
Total
Community
Services
General
Governmental
Governmental
_ General
Development
Tax
Government
Funds
Funds
Assets
Cash, Cash Equivalents and Investments
$ 170,161,920
$ 7,856,296
$ 5,929,871
$ 87,258,628
$ 216,163,449
$ 487,370,164
Restricted Cash and Investments
1,260,009
-
-
-
18,405,142
19,665,151
Receivables
(Net of Allowances for Uncollectibles):
Accounts
6,036,158
554,055
-
4,094,525
10,684,738
Taxes
6,090,924
-
-
783,798
6,874,722
Special Assessments
-
142,878
-
257,168
400,046
Due From Other Funds
-
-
-
-
1,390,489
1,390,489
Due From Other Governments
8,743,552
5,203,928
7,976,612
-
3,248,254
25,172,346
Due From Component Units
600,607
-
-
-
600,607
Accrued Interest
3,181,955
38,852
308,706
1,396,242
4,925,755
Prepaid and Other Assets
594,380
77,131
-
64,176
735,687
Total Assets
$ 196,669,505
$ 13,873,140
$ 13,906,483
$ 87,567,334
$ 245,803,243
$ 557,819,705
Liabilities and Fund Balances
Liabilities:
Accounts Payable
$ 3,645,459
$ 1,763,821
$ -
$ 374,760
$ 5,967,568
$ 11,751,608
Accrued liabilities
31,003,460
2,942,819
4,251,142
22,143
1,712,533
39,932,097
Due To Other Funds
-
-
-
-
1,390,489
1,390,489
Due To Other Governments
28,406
550,615
2,090,524
2,669,545
Due To Component Units
1,642,730
-
-
1,642,730
Deferred Revenue
14,251,833
55,363
-
2,422,654
16,729,850
Deposits
4,569,764
946,684
-
110,244
585,648
6,212,340
Total Liabilities
55,141,652
6,259,302
4,251,142
507,147
14,169,416
80,328,659
Fund Balances:
Reserved for:
Encumbrances
2,610,870
201,713
6,718,568
16,570,093
26,101,244
Debt Service
-
-
-
18,851,799
18,851,799
Law Enforcement
-
-
7,546,944
7,546,944
Prepaid Items
594,380
77,131
64,176
735,687
Unreserved, reported in:
General Fund
138,322,603
-
-
138,322,603
Special Revenue Funds
-
7,334,994
9,655,341
-
20,651,252
37,641,587
Capital Projects Funds
-
-
80,341,619
167,949,563
248,291,182
Total Fund Balances
141,527,853
7,613,838
9,655,341
87,060,187
231,633,827
477,491,046
Total Liabilities and Fund Balances
$ 196,669,505
$ 13,873,140
$ 13,906,483
$ 87,567,334
$ 245,803,243
$ 557,819,705
The accompanying notes are an integral part of the financial statements
17
City of Miami, Florida
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets
September 30, 2002
Fund Balances - Total Governmental Funds
Amounts reported for governmental activities in the Statement of
Net Assets are different because:
Cumulative over funding of annual required pension contribution.
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the governmental funds.
$ 477,491,046
6,278,444
Governmental Capital Assets $ 1,422,880,581
Less: Accumulated Depreciation (595,702,469) 827,178,112
Other long-term assets are not available to pay for current period expenditures
and therefore are deferred in the funds. 6,179,722
Long-term liabilities, including bonds payable are not due and payable
in the current period and therefore are not reported in the governmental funds.
Governmental Bonds and Loans Payable (466,980,086)
Premium (2,939,154)
Discount 485,043
Accrued Interest (3,742,873)
Compensated Absences (65,169,447)
Claims Liability (82,527,448) (620,873,965)
Net Assets of Governmental Activities $ 696,253,359
The accompanying notes are an integral part of the financial statements.
18
City of Miami, Florida
Statement of Revenue, Expenditures, and Changes In Fund Balances
Governmental Funds
For The Year Ended September 30, 2002
Revenues
Property Taxes
Franchise Fees and Other Taxes
Licenses and Permits
Fines and Forfeitures
Intergovernmental Revenues
Charges for Services
Interest
Impact Fees
Other
Total Revenues
Expenditures
Current Operating:
General Government
Planning and Development
Community Development
Community Redevelopment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers From Other Funds
Transfers To Other Funds
Proceeds Received From Refunded Debt
Payments To Escrow Agent
Proceeds of Long -Term Capital -Related Debt
Total Other Financing Sources (Uses)
Net Changes in Fund Balances
Fund Balances - Beginning As Restated
Fund Balances - Ending
Public Other Total
General Community Services General Governmental Governmental
Fund Development Tax Government Funds Funds
$ 130,375,831 $
- $ - $
- $ 21,090,279 $
151,466,110
15,775,689
- 57,314,720
- 9,330,383
82,420,792
21,375,993
- -
- -
21,375,993
4,051,483
- -
- 3,822,125
7,873,608
42,322,189
40,414,838 -
- 36,463,567
119,200,594
93,708,913
8,777,658 -
- 10,323,994
112,810,566
10,102,103
359,707 -
373,121 3,526,937
14,361,868
-
- -
- 2,518,983
2,518,983
5,371,152
2,016,919 -
- 4,431,533
11,819,604
323,083,353
51,569,122 57,314,720
373,121 91,507,801
523,848,117
83,117,901 - -
- 7,441,975
90,559,876
7,997,611 - -
- 699,452
8,697,063
- 47,497,163 -
- -
47,497,163
- - -
- 6,055,846
6,055,846
46,309,524 - -
- 25,000
46,334,524
169,452,122 - -
- 12,092,474
181,544,596
5,071,735 - -
- 2,854,550
7,926,285
11,092,994 - -
- 1,827,251
12,920,245
- 23,073,400 23,073,400
- - 19,336,603 19,336,603
- - - 12,745,765 32,530,638 45,276,403
323,041,887 47,497,163 - 12,745,765 105,937,189 489,222,004
41,466 4,071,959 57,314,720 (12,372,644) (14,429,388) 34,626,113
47,366,515 1,248,229 - 25,550,896
68,331,900
142,497,540
(24,553,971) (3,104,154) (48,800,845) (12,197,490)
(53,841,080)
(142,497,540)
- - - -
73,575,000
73,575,000
- - - -
(69,980,000)
(69,980,000)
- - - 47,580,087
107,550,000
155,130,087
22,812,544 (1,855,925) (48,800,845) 60,933,493
125,635,820
158,725,087
22,854,010 2,216,034 8,513,875 48,560,849 111,206,432 193,351,200
118,673,843 5,397,804 1,141,466 38,499,338 120,427,395 284,139,846
$ 141,527,853 $ 7,613,838 $ 9,655,341 $ 87,060,187 $ 231,633,827 $ 477,491,046
The accompanying notes are an integral part of the financial statements.
19
City of Miami, Florida
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended September 30, 2002
Net Changes in Fund Balances - Total Governmental Funds
$ 193,351,200
Amounts reported for governmental activities in the Statement of
Activities are different because:
Governmental funds report capital outlays as expenditures.
However, in the Statement of Activities, the cost of these assets
is depreciated over their estimated useful lives. 4,907,022
Expenditures for Capital Assets $ 26,286,592
Less: Current Year Depreciation (42,654,273)
(16,367,681)
Bond proceeds provide current financial resources to governmental
funds, but issuing debt increasing long-term liabilities in the
Statement of Net Assets. Repayment of bond principal is a expenditure
in the governmental funds, but the repayment reduces long-term
liabilities in the Statement of Net Assets. This is the amount by
which proceeds exceeded repayments.
Bond Proceeds (232,674,462)
Accrued Interest (3,742,873)
Principal Payments 93,053,400 (143,363,935)
Certain items reported in the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds resulted
in increases to beginning of the year net assets in the Statement of Net Assets. (4,372,381)
Some items reported in the Statement of Activities do not
require the use of current financial resources and therefore are
not reported as expenditures in governmental funds.
Amortization of current year bond discount
(8,013)
Amortization of current year bond premium
40,465
Change in Long-term Compensated Absences
(8,259,961)
Change in Long-term Claims Liability
5,672,907 (2,554,602)
Change in Net Assets of Governmental Activities
$ 31,599,623
The accompanying notes are an integral part of the financial statements.
20
City of Miami, Florida
Statement of Fiduciary Net Assets
Fiduciary Funds
As of September 30, 2002
The accompanying notes are an integral part of the financial statements
21
Employee
Retirement
Finds
Assets
Cash and Short -Term Investments
$ 51,850,367
Accounts Receivable
41,085,875
Capital Assets
3,404,795
96,341,037
Investments, at fair value
U.S Government Obligations
322,615,853
Corporate Bonds
211,996,953
Corporate Stocks
754,468,244
Money Market Funds and Commercial Paper
21,042,477
Mutual Funds
49,429,740
Real Estate
29,131,350
Total Investments
1,388,684,617
Securities Lending Collateral
97,268,223
Total Assets
1,582,293,877
Liabilities
Obligations Under Security Lending
97,268,223
Accounts Payable
861,056
Accrued Liabilities
5,596,093
Payable for securities purchased
81,568,894
Total Liabilities
185,294,266
Net Assets
Held in Trust for Pension Benefits
$---1,396,999,611
The accompanying notes are an integral part of the financial statements
21
City of Miami, Florida
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30, 2002
Additions (Reductions)
Contributions:
Employer
Plan Members
Total Contributions
Investment Earnings (Losses):
Net Decrease in Fair
Value of Investments
Interest
Dividends
Rental and Other Income, net
Total Investment Losses
Less Investment Expenses
Investment Expenses
Net Investment Losses
Total Reductions
Deductions
Benefits
Refunds upon resignation, death, etc.
Distribution to retirees
Administrative and other expenses
Total Deductions
Change in Net Assets
Net Assets - Beginning of Year
Net Assets - End of Year
Employee
Retirement
Funds
$ 8,565,605
13,907,269
22,472,874
(156,819,743)
36,986,535
11,429,189
2,584,151
(105,819,868)
5,477,467
(111,297,335)
(88,824,461)
78,588,741
1,540,003
8,943,616
1,715,867
90,788,227
(179,612,688)
1,576,612,299
$ 1,396,999,611
The accompanying notes are an integral part of the financial statements.
22
City of Miami, Florida
Statement of Net Assets
Discretely presented Component Units
For the Year Ended September 30, 2002
Miami Sports Department Downtown Health
and Fabibition of Of%Street Development Bayfront Facilities
Authority Parking Authority Park Authority Total
ssets
Cash, Cash Equivalents and Investments
$ 1,290,732
$ 5,917,219
$ 2,129,132
$ 2,877,211
$ 116,654 $ 12,330,948
Receivables (Net)
91,673
358,748
-
38,299
- 488,720
Accounts
603,984
-
-
-
- 603,984
Taxes
Notes
21000,000
-
-
2,000,000
"
Accrued Interest
23,259
-
-
- 23,259
- 1,642,730
Due From Primary Government
-
-
1,642,730
-
-
-
5,000
- 5,000
Inventory
Prepaid and Other Assets
390,345
713,050
27,470
1,875
- 1,132,740
Restricted Assets:
Cash, Cash Equivalents and Investments
11,290,699
1,753,719
-
100,000
- 13,144,418
Capital Assets:
Non -depreciable
7,080,662
12,153,176
-
516,129
- 19,749,967
Depreciable, Net
32,365,357
15,543,009
55,101
2,561,731
- 50,525,198
Total Assets
55,136,711
38,081,651
2,211,703
6,100,245
116,654 101,646,964
Liabilities
Accounts Payable -
Accrued liabilities 354,219
Accrued Interest Payable 1,126,615
Due To Primary Government -
Deferred Revenue 632,349
Deposits
Non -Current liabilities
Due Within Oae Year
1,645,661
238,666 20,328
175 1,904,830
417,665
- 27,678
- 799,562
269,757
- -
- 1,396,372
568,835
31,772 -
- 600,607
367,338
9,771 11,250
- 1,020,708
86,572
- 147,697
- 234"
Bonds and Loans Payable
1,740,000 635,000 -
- 2,375,000
Compensated Absences
- - 53,288
- 53,288
Due In More Than One Year.
Bonds and Loans Payable
34,655,000 11,033,810 -
- 45,688,810
Plus: Unamortized Bond Premium
- 109,348 -
- 109,348
Compensated Absences
- - 28.263 -
- 28,263
Total Liabilities
38,508,183 15,133,986 361,760 206,953
175 54,211,057
Net Assets
invested in Capital Assets, Net of Related Debt
3,051,019
Restricted for.
Capital Projects
3,207,661
Debt Service
2,428,081
Unrestricted
7,941,767
Total Net Assets
$ 16,628,528
The accompanying notes are an integral part of the financial statements.
16,510,916
55,101 3,077,860 -
6,436,749 1,794,842 2,815,432 116,479
$ 22,947,665 $ 1,849,943 $ 5,893,292 $ 116,479
23
22,694,896
3,207,661
2,428,081
19,105,269
$ 47,435,907
City of Miami, Florida
Statement of Activities
Discretely Presented Component Units
For the Year Ended September 30, 2002
General Revenues:
Taxes:
Property taxes, levied for genal -purposes
Convention Development Taxes
Occupational Licenses and Franchise Fees
Investment Earnings
Miscellaneous
Total General Revenues
Change in Net Assets
Net assets - Beginning
Net assets - Ending
The accompanying notes are an integral part of the financial statements.
24
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Expenses
Services
Contributions
Contributions
Miami Sports
Exhibition Authority
Economic Development $
8,777,479
$ 2,756,154
$ -
$ _
Total Miami Sports Exhibition Authority
8,777,479
2,756,154
-
_
Department
of Off -Street Parking
Operations
12,440,374
11,686,763
-
-
Total Department of Off -Street Parking
12,440,374
11,686,763
-
-
Downtown
Development Authority
General and Administrative
1,168,041
-
86,286
-
Community Development
534,146
-
-
_
Education
380,263
50,251
150,000
63,372
Total Downtown Development Authority
2,082,450
50,251
236,286
63,372
Bayfront Park
Operations
2,698,332
1,642,456
-
-
Total Bayfront Park
2,698,332
1,642,456
-
-
Health Facilities Authority
Operations
175
-
-
-
Total Bayfront Park
175
-
-
-
Total Component Units $
25,998,810
$ 16,135,624
$ 236,286
$ 63,372
General Revenues:
Taxes:
Property taxes, levied for genal -purposes
Convention Development Taxes
Occupational Licenses and Franchise Fees
Investment Earnings
Miscellaneous
Total General Revenues
Change in Net Assets
Net assets - Beginning
Net assets - Ending
The accompanying notes are an integral part of the financial statements.
24
Net (Expense) Revenue and
Changes in Net Assets
Miami Sports Department Downtown Health
and Exhibition of Off -Street Development Bayfront Facilities
Authority Parking Authority Park Authority Totals
$ (6,021,325) $ - $ - $ - $ - $ (6,021,325)
(6,021,325) - - - - (6,021,325)
(753,611) - - - (753,611)
(753,611) - - - (753,611)
- (1,081,755) - - (1,081,755)
- (534,146) - - (534,146)
(116,640) - - (116,640)
- (1,732,541) - - (1,732,541)
- - (1,055,876) - (1,055,876)
- - - (1,055,876) - (1,055,876)
(175) (175)
(175) (175)
(6,021,325) (753,611) (1,732,541) (1,055,876) (175) (9,563,528)
-
-
1,969,282
-
-
1,969,282
6,823,950
-
-
-
-
6,823,950
-
-
-
668,932
-
668,932
209,016
298,962
30,591
38,981
-
577,550
236,412
112,936
46,441
1,213,204
32,176
1,641,169
7,269,378
411,898
2,046,314
1,921,117
32,176
11,680,883
1,248,053
(341,713)
313,773
865,241
32,001
2,117,355
15,380,475
23,289,378
1,536,170
5,028,051
84,478
45,318,552
$ 16,628,528 $
22,947,665 $
1,849,943
$ 5,893,292 $
116,479
$ 47,435,907
25
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26
CITY OF NIIANII, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002
NOTE I. — SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The City of Miami, Florida (the "City"), in the
County of Miami -Dade, was incorporated in 1896,
has a population of approximately 362,000. The
City is situated at the mouth of the Miami River on
the western shores of Biscayne Bay and is a main
port of entry into Florida and the county seat of
Miami -Dade County, Florida. The City comprises
34.3 square miles of land and 19.5 square miles of
water.
The accompanying financial statements of the City
have been prepared in accordance with accounting
principles ("GAAP") generally accepted in the United
States of America as applied to governmental units.
The Governmental Accounting Standards Board
("GASB") is the standard-setting body for
governmental accounting and financial reporting. The
GASB periodically updates its codification of the
existing Governmental Accounting and Financial
Reporting Standards which, along with subsequent
GASB pronouncements (Statements and
Interpretations), constitutes GAAP for governmental
units. The more significant of these accounting
policies are described below.
In June 1999, the GASB unanimously approved
Basic Financial Statements - and Management
Discussion and Analysis - for State and Local
Governments (Statement No. 34). This Statement
provides for the most significant change in financial
reporting in over twenty years and is scheduled for a
phased implementation (based on size of
government) starting with fiscal years ending 2002
(for larger governments). As part of this Statement,
there is a new reporting requirement regarding the
local government's infrastructure (roads, bridges,
traffic signals, etc.). This requirement permits an
optional four-year further delay for implementation
to the fiscal year ending 2006. The City elected to
implement the basic model as well as the
infrastructure related portion (under the depreciation
method) for fiscal year ending September 30, 2002.
27
The City has also implemented Governmental
Accounting Standards Board Statements No. 37,
Basis Financial Statements — and Management's
Discussion and Analysis — for State and Local
Governments: Omnibus — amendment of GASB
Statements No. 21 and No. 34, portions of No. 38,
Certain Financial Statement Note Disclosures, and
Interpretation No. 6, Recognition and Measurement
of Certain Liabilities and Expenditures in
Government Fund Financial Statements.
GASB Statement No. 34 (as amended by Statement
No. 37) establishes new requirements and a new
model for the annual financial reports of state and
local governments. The Statement was developed
to make annual reports easier to understand and
more useful to the people who use governmental
financial information to make decisions.
Implementation of portions of Statement No. 38
resulted in certain note disclosures being added or
amended, including descriptions of activities of
major funds, and debt service requirements to
maturity for debt, capital and noncancelable leases
for each of the five subsequent fiscal years and in
the five year increments thereafter. Other
disclosures required by Statement No. 38 will be
implemented next year, as permitted by the
statement. These disclosures include the
disaggregation of payables balances and details
about interfund balances and interfund transfers.
Interpretation No. 6 requires certain long-term
liabilities to be reported in the governmental fund
statements only if the amount is due for payment in
the period being reported. As a result, amounts for
accrued vacation, health insurance, and general
liability previously reported in the General Fund,
are no longer reported as a fund liability.
Manap-ement's Discussion and Analysis — GASB
Statement No. 34 requires that financial statements
be accompanied by a narrative introduction and
analytical overview of the government's financial
activities in the form of management's discussion
and analysis (MD&A). This analysis is similar to
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
analysis the private sector provides in their annual
reports.
Government -wide FInancial Statements — The
reporting model includes financial statements
prepared using full accrual accounting for all of the
government's activities. This approach includes not
just current assets and liabilities (such as cash and
accounts payable) but also capital assets and long-
term liabilities (such as buildings and infrastructure,
including bridges and roads, and general obligation
debt). Accrual accounting also reports all of the
revenues and cost of providing services each year,
not just those received or paid in the current year or
soon after.
Statement of Net Assets — The Statement of Net
Assets is designed to display the financial position
of the primary government and its directly presented
component units. Governments will report all
capital assets, including infrastructure, in the
government -wide Statement of Net Assets and will
report depreciation expense — the cost of "using up"
capital assets — in the Statement of Activities. The
net assets of a government will be broken down into
three categories —1) invested in capital assets, net of
related debt; 2) restricted; and 3) unrestricted.
Statement of Activities — The new government -
wide statement of activities reports expenses and
revenues in a format that focuses on the cost of each
of the government's functions. The expenses of
individual functions are compared to the revenues
generated by the function (for instance, through user
charges or intergovernmental grants).
Budaetary Comparison Schedules —
Demonstrating compliance with the adopted budget
is an important component of a government's
accountability to the public. Many citizens
participate in one way or another in the process of
establishing the annual operating budgets of state
and local governments, and have a keen interest in
the following the actual financial progress of their
government over the course of the year. Many
governments revise their original budgets over the
course of the year for a variety of reasons. Under
28
the new reporting model, governments will continue
to provide budgetary comparison information in
their annual reports. An important change,
however, is a requirement to add the government's
original budget to the current comparison of final
budget and actual results.
A. Reporting Entity
The City Charter was adopted by the electors of the
City of Miami at an election held May 17, 1921 and
legalized and validated by Chapter 9024 of the laws
of the State of Florida of 1921. During fiscal year
1997, the residents of the City voted on a
referendum that created single -member districts and
an Executive Mayor form of government. The City
continues to operate under the Commission/City
Manager form of government and provides the
following services: police and fire protection, public
works activities, solid waste collection, parks and
recreational facilities, planning and development,
community development, financial services and
general administrative services.
On December 3, 1996, in response to formal
notification by the City, the Governor of the State of
Florida (the "Governor") acknowledged that the
City was in a financial emergency as provided in
Part V of Chapter 218, Florida Statutes (the "local
Government Financial Emergencies Act"). In
Executive Order Number 96-391 effective on
December 11, 1996, the Governor created a
Financial Emergency Oversight Board (the
"Oversight Board") to oversee the fiscal affairs of
the City with respect to the financial emergency.
The Financial Oversight Board adopted a resolution
on December 18, 2001, informing the Governor that
the City had complied with terms and conditions of
the Intergovernmental Agreement and the
recommendation to dissolve the Financial Oversight
Board. The Governor officially terminated the
Oversight Board on March 19, 2002.
The Florida Legislature, in 1955, approved and
submitted to a general election, a constitutional
amendment designed to give a new form of
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
government to Miami -Dade County, Florida (the
"County"). The County is, in effect, a municipality
with governmental powers affecting thirty cities and
unincorporated areas, including the City. The
County has not displaced nor replaced the cities'
powers, but supplements them. The County can take
over particular activities of the City's operations if
(1) the services fall below minimum standards set
by the County Commission, or (2) with the consent
of the governing body of the City. Accordingly, the
County's financial statements are not included in
this report.
The accompanying financial statements include
those of the City (the primary government) and
those of its component units. Component units are
legally separate organizations for which the primary
government is financially accountable or
organizations which should be included in- the
City's financial statements because of the nature
and significance of their relationship with the
primary government.
The decision to include a potential component unit
in the City's reporting entity is based on the criteria
stated in GASB Statement No. 14 - The Financial
Reporting Entity, which includes the ability to
appoint a voting majority of an organization's
governing body and (1) the ability of the City to
impose its will on that organization or (2) the
potential for the organization to provide specific
financial benefits to, or impose specific financial
burden on the City.
Based upon the application of the criteria in GASB
Statement No. 14, the financial statements of the
component units listed on the following pages have
been included in the City's reporting entity as either
blended or discretely presented component units.
Blended component units, although legally separate
entities, are, in substance, part of the City's
operations. Accordingly, data from these component
units are. included with data of the primary
government. Each discretely presented component
unit, on the other hand, is reported in a separate
column in the financial statements to emphasize that
they are legally separate from the City. The financial
29
activities arid balances for each blended and
discretely presented component units are as of and
for the period ended September 30, 2002.
1. Blended Component Units
SOUTHEAST OVERTOWN PARK WEST
REDEVELOPMENT AGENCY ("SEOPW")-
SEOPW is an Agency established by the City in
1982 under authority of Chapter 163, Florida
Statutes and City Resolution No. 82-755. The City
has entered into an interlocal agreement with
Miami -Dade County approving the deposit of tax
increments into the Redevelopment Trust Fund.
The City Commission is also the Board of Directors
of the SEOPW. The City has issued debt for
SEOPW and is responsible under the interlocal
agreement for disbursement, accountability,
management and proper application of all monies
paid into the Trust. SEOPW is included within the
reporting entity as a special revenue fund.
OMNI REDEVELOPMENT AGENCY ("ORA") -
ORA is an agency established by the City in 1986
under authority of Chapter 163, Florida Statutes and
City Resolution No. 86-868. The City has entered
into an interlocal agreement with Miami -Dade
County approving the deposit of tax increments into
the Redevelopment Trust Fund. The City
Commission is also the Board of Directors of the
ORA. The City is also responsible under the
interlocal agreement for disbursement,
accountability, management and proper application
of all monies paid into the Trust. ORA is included
within the reporting entity as a special revenue fund.
NEIGHBORHOOD IM[PROVEM ENT DISTRICTS
There are four neighborhood improvement districts.
All four districts were inactive during fiscal year
2002.
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
2. Discretely Presented Component Units
MIAMI SPORTS AND EXHIBITION
AUTHORITY ("MESA") - MSEA was created by
the City in 1983 pursuant to Chapter 212.0305,
Florida Statutes and City Ordinance No. 9662 to
promote the development of sports, convention and
exhibition facilities within the City using the 3%
Convention Development Tax collected by the
County. The City Commission must approve
MSEA's board membership and operating budget.
Therefore, the City is financially accountable and is
discretely presenting MSEA in the accompanying
financial statements.
DOWNTOWN DEVELOPMENT AUTHORITY
("DDA") - DDA was created by the City in 1965
pursuant to Chapter 65-1090 of the General Laws of
Florida and City Code Section 14-25. DDA is
governed by a board appointed by the City
Commission and was established for the purpose of
furthering the development of the Downtown
Miami area. The City Commission must approve
DDA's operating budget and the millage levied on
the special taxing district established to fund DDA.
Therefore, the City is financially accountable and is
discretely presenting DDA in the accompanying
financial statements.
DEPARTMENT OF OFF-STREET PARKING
("DOSP") - DOSP was originally created in 1955
by a special act of the Florida State Legislature and
subsequently incorporated into the City's Charter in
1968. DOSP is an agency and instrumentality of the
City, which owns and operates parking facilities
within the City. The City Commission has reserved
the right to confirm new members of the Off -Street
Parking Board, to establish and fix rates and charges
for parking services, to approve the DOSP operating
budget and to authorize the issuance of revenue
bonds. Therefore, the City is financially accountable
and is discretely presenting DOSP in the
accompanying financial statements.
BAYFRONT MANAGEMENT TRUST (`BFP") —
BFP was established by the City in 1987 under the
authority City of Miami Resolution No. 10348.
30
Bayfront was created for the purpose of managing
and operating the events held at Bayfront and
Bicentennial Park and the daily maintenance and
upkeep of the grounds, and its various amenities
including the amphitheater and the Mildred and
Claude Pepper Fountain.
The governing body of the Trust consists of nine
appointed members serving initial terms of one to
three years. Upon expiration of an initial term, each
successor member may be appointed by the City
Commission for terms of one to three years. The
Trust has appointed an executive director to act as
the chief executive officer, subject to policy
directives. The Trust prepares and submits an
annual budget request and master plan to the City
Commission for its approval for each fiscal year.
Therefore, the City is financially accountable and is
discretely presenting BFP in the accompanying
financial statements.
HEALTH FACILITY AUTHORITY ("HFA") —
The HFA is an agency established by the City in
1979 under the authority of Chapter 154, Florida
Statutes and City Resolution No. 79-93 to serve as a
conduit to issue revenue bonds. The City
Commission must approve HFA's board
membership. Debt obligations issued under the
preview of the HFA do not constitute an
indebtedness, liability or pledge of the faith or credit
of the HFA or the City. The aggregate amount of
conduit debt obligations totaled $137,390,000 at
September 30, 2002. HFA, does not issue stand-
alone audited financial statements.
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Complete financial information of the individual
component units may be obtained at the entity's
respective administrative offices as follows:
SEOPW
300 Biscayne Boulevard Way Suite 430
Miami, Florida 33131
ORA
300 Biscayne Boulevard Way
Suite 430
Miami, Florida 33131
MSEA
701 Arena Blvd.
Miami, Florida 33136
DOSP
190 NE 3d Street
Miami, Florida 33132
DDA
330 North Biscayne Blvd.
11 th Floor
Miami, Florida 33132
BFP
301 N. Biscayne Blvd.
Miami, Florida 33132-2226
B. Government -wide and Fund Financial
Statements
The basic financial statements include both
government -wide (based on the City as a whole)
and fund financial statements. While the previous
financial reporting model emphasized fund types
(the total of all funds of a particular type), in the
new financial reporting model the focus is on either
the City as a whole, or major individual funds
(within the fund financial statements). Both the
government -wide and fund financial statements
(within the basic financial statements) categorize
primary activities as governmental type. In the
government -wide Statement of Net Assets, the
governmental activities column is presented on a
full accrual, economic resource basis, which
31
incorporates long-term assets and receivables as
well as long-term debt and obligations. The City
does not have any business type activities for
financial reporting purposes.
The government -wide Statement of Activities
reflects both the gross and net costs per functional
category (Police, Fire, Public Works, etc.), which
are otherwise being supported by general
government revenues (property, sales and use taxes,
certain intergovernmental revenues, etc.). The
Statement of Activities reduces gross expenses
(including depreciation) by related program
revenues, operating and capital grants. The program
revenues must be directly associated with the
function (Police, Fire, Public Works, etc.). The City
does not allocate indirect expenses. The operating
grants include operating -specific and discretionary
(either operating or capital) grants while the capital
grants column reflects capital -specific grants.
The net cost (by function) is normally covered by
general revenue (property, sales or gas taxes,
intergovernmental revenues, interest income, etc.).
Historically, the previous financial reporting model
did not summarize or present net cost by function or
activity.
This government -wide focus is more on the
sustainability of the City as an entity and the change
in aggregate financial position resulting from the
activities of the fiscal period.
The fund financial statements are, in substance, very
similar to the financial statements presented in the
previous financial reporting model. Emphasis here
is on the major funds. Non -major funds (by
category) are summarized into a single column.
The governmental funds major fund statements in
the fund financial statements are presented on a
current financial resource and modified accrual
basis of accounting. This is the manner in which
these funds are normally budgeted. This
presentation is deemed most appropriate to (a)
demonstrate legal and covenant compliance, (b)
demonstrate the source and use of liquid resources,
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
and (c) demonstrate how the City's actual
experience conforms to the budget fiscal plan.
Since the governmental fund statements are
presented on a different measurement focus and
basis of accounting than the government -wide
statements' governmental column, a reconciliation
is presented on the page following each statement,
which briefly explains the adjustment necessary to
transform the fund based financial statements into
the governmental column of the government -wide
presentation.
The City's fiduciary funds are presented in the fund
financial statements by type (pension, private
purpose and agency). Since, by definition, these
assets are being held for the benefit of a third parry
(other local governments, private parties, pension
participants, etc.) and cannot be used to address
activities or obligations of the government, these
funds are not incorporated into the government -
wide statements.
The focus of the Statement No. 34 model is on the
City as a whole and the fund financial statements.
The focus of the fund financial statements is on the
major individual funds of the governmental
activities and the fiduciary funds. Each presentation
provides valuable information that can be analyzed
and compared (between years and between
governments) to enhance the usefulness of the
information.
C. Basis of Presentation
Statement No. 34 sets forth minimum criteria
(percentage of the assets, liabilities, revenues or
expenditures/expenses of either fund category or the
governmental and enterprise combined) for the
determination of major funds. Funds that meet
these criteria are labeled as such. The nonmajor
funds are combined in a column in the fund
financial statements and detailed in the combining
section of this report.
32
The City reports the following funds:
1. Major Governmental Funds
The measurement focus of the governmental funds
(in the Fund Financial Statements) is upon
determination of financial position and changes in
financial position (sources, uses, and balances of
financial resources) rather than upon net income.
The following is a description of the major
governmental funds of the City:
a. General Fund — The General Fund is the
general operating fund of the City. General Tax
revenues and other receipts that are not allocated by
law or contractual agreement to some other fund are
accounted for in this fund. General operating
expenses, fixed charges, and capital improvement
costs not paid through other funds are paid from this
fund.
b. Community Development Fund — This
Special Revenue Fund accounts for the proceeds
from the Federal Government under the U. S.
Department of Housing and Urban Development.
c. Public Services Tax Fund — This Special
Revenue Fund accounts for the utility service tax
levied on purchases of public services.
d. General Government Fiend — This Capital
Project Fund accounts for capital expenditures made
for general government operations.
2. Fiduciary Funds
Fiduciary Funds account for resources held by the
City as a trustee or agent for individuals, private
organizations, other governments, and/or other
funds. These include pension trusts, and agency
funds. The Pension Trust Funds, City of Miami Fire
Fighters' and Police Officers' Retirement Trust
("FIPO"), City of Miami General Employees' and
Sanitation Employees' Retirement Trust ("GESE")
and Elected Officers' Retirement Trust (`BORT"),
measurement focus is upon the determination of net
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
income and financial position since capital
maintenance is critical.
3. Non -Current Governmental
Assets/Liabilities
GASB Statement No. 34 eliminates the presentation
of Account Groups, but provides for these records
to be maintained and incorporates the information
into the governmental column in the government -
wide Statement of Net Assets.
D. Basis of Accounting
The accounting and financial reporting treatment
applied to a fund is determined by its measurement
focus. All governmental funds are accounted for
using the current financial resources measurement
focus. With this measurement focus, only current
assets and current liabilities generally are included
on the balance sheet in the fund statements. Long-
term assets and long-term liabilities are included in
the government -wide statements. Operating
statements of these funds present increases (i.e.,
revenues and other financing sources) and decreases
(i.e., expenditures and other financing uses) in net
current assets.
The government -wide statements of net assets,
statements of activities, and pension trust funds are
accounted for using the economic resources
measurement focus. With this measurement focus,
all assets and all liabilities associated with the
operation of these activities are either included on
the balance sheet or on the statement of fiduciary
net assets.
The fund financial statements are maintained on the
modified accrual basis of accounting. Under this
method of accounting, revenues are recognized in
the period in which they become measurable and
available. With respect to real and personal
property tax revenue and other local taxes, the term
"available" is limited to collection within sixty (60)
days of the fiscal year end. Levies that are made
prior to the fiscal year end, but are not available, are
deferred. Interest income is recorded as earned.
33
Federal and State reimbursement type grants are
recorded as revenue when related eligible
expenditures are met. Expenditures, other than
accrued interest on long-term debt, are record when
the fund liability is incurred. All other revenue
items reported in the fund financial statements are
considered "available" when the cash is received by
the City one year after its fiscal year end.
Franchise and utility taxes, state revenue sharing,
charges for services, and fines and forfeitures
associated with the current period are considered to
be susceptible to accrual and therefore have been
recognized as revenues of the current fiscal period.
Expenditures are generally recorded when a liability
is incurred, as under accrual accounting. However,
debt service expenditures, as well as expenditures
related to compensated absences, claims, and
judgments, are recorded only when payment is due.
When both restricted and unrestricted resources are
available for use, it is the City's policy to use
restricted resources first, and then unrestricted
resources as they are needed.
E. Restatement of Prior Year Fund Balance
The beginning fund balance for the General Fund
was restated to comply with the adoption of
Interpretation No. 6. Based on Interpretation No. 6
certain long-term liabilities should be reported in
the governmental fund statements only if the
amount are due for payment in the period being
reported. As a result, the following adjustments
were made:
Fund Balance at 10-1-01,
as previously reported $ 87,165,031
Claims payable - health insurance 4,021,355
Claims payable - general liability 22,797,000
Compensated absences 4,690,457
Fund Balance Restated at 10-1-01 $ 118,673,843
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
F. Use of Estimates
The preparation of the financial statements in
conformity with accounting principles generally
accepted in the United States of America requires
management to make estimates and assumptions
that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at
the date of the financial statements and the reported
amounts of revenues and expenditures during the
reporting period. Actual results could differ from
those estimates.
G. Deferred Revenue
Deferred revenues reported in the government -wide
Statement of Net Assets and governmental funds
Balance Sheet includes occupational licenses
collected in advance as well as certain grants
received prior to the City meeting all applicable
grant eligible requirements. Deferred revenues
reported in the governmental funds Balance Sheet
also include delinquent property taxes that are not
considered available.
H. Unamortized Bond Premium and Discounts
Premiums and discounts on the City's outstanding
bonds issues reported in the government -wide
Statement of Net Assets are amortized using the
interest method, over the maturity of the related
issues.
I. Fund Equity
Reserves reported in the governmental funds
Balance Sheet are used to indicate that a portion of
the fund balance is not appropriable for expenditure
or is legally segregated for a specific future use.
Usage of reserves has been limited to the following
items:
1. Reserve for encumbrances - This amount is equal
to the outstanding purchase orders for goods and
services at year end;
34
2. Reserve for debt service - This is the amount of
fund equity in the Debt Service Funds, which is set
aside for the repayment of outstanding debt;
3. Reserve for prepaids - This amount is equal to the
amount of prepaids recorded as an asset, and;
4. Reserve for law enforcement trust fund - This is
the amount of the outstanding commitments of the
Law Enforcement Trust Fund.
J. Assets, Liabilities, and Fund Equity
1. Cash & Cash Equivalents
The City has defined Cash and Cash Equivalents to
include cash on hand, demand deposits, and cash
with fiscal agents. Additionally, each fund's equity
in the City's investment pool is considered to be a
cash equivalent since the funds can be deposited or
effectively withdrawn at any time without prior
notice or penalty.
2. Investments
All investments, including the Pension Funds are
stated at fair value (quoted market price or the best
available estimate thereof).
3. Account Receivable
Accounts receivable are reported in the government -
wide Statement of Net Assets and governmental
funds Balance Sheet net of allowance for doubtful
accounts.
4. Due From/Due To
To properly allocate daily interest earnings among
funds, the Due From/Due To (interfund) accounts
are not used. Instead, interfund transactions are
entered directly to the cash accounts maintained in a
central pooled cash account in which all funds
participate. Interfund due from/due to accounts
(both between funds and between the primary
government and component units) are only used at
year end.
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
5. Restricted Net Assets
Certain proceeds from bonds, notes, and loans, as
well as resources for debt service payments, and law
enforcement trust monies are classified as restricted
net assets reported on the government -wide
Statement of Net Assets because their use is limited
by applicable bond covenants and restrictions.
6. Capital Assets
Capital outlays are recorded as expenditures in the
governmental fund financial statements and as
assets in the government -wide financial statements
to the extent the City's capitalization threshold of
$750 and an estimated useful life in excess of two
years is met. In accordance with GASB Statement
No. 34, infrastructure has been capitalized.
Depreciation is recorded on capital assets on a
government -wide basis using the straight-line
method and the following estimated useful lives:
Years Classification
20 - 45 Buildings
10 - 30 Improvements other than buildings
3 - 10 Machinery and equipment
3 - 10 Vehicles (including heavy equipment)
15 - 50 Infrastructure
All capital assets are valued at historical cost or
estimated historical cost, if actual cost was not
available. Donated capital assets are valued at their
estimated fair market value on the date donated.
Maintenance, repairs, and minor equipment are
charged to operations when incurred. Expenses that
materially change capacities or extend useful lives
are capitalized. Upon sale or retirement of land,
buildings, and equipment, the cost and related
accumulated depreciation, if applicable, are
eliminated from the respective accounts and any
resulting gain or loss is included in the statement of
activities.
35
7. Compensated Absences
Under terms of Civil Service regulations, labor
contracts and administrative policy, City employees
are granted vacation and sick leave in varying
amounts. Additionally, certain overtime hours can
be accrued and carried forward as earned time off.
Unused vacation and sick time is payable upon
separation from service, subject to various
limitations depending upon the employee's seniority
and civil service classification. The total amount
(the amount estimated to be used in subsequent
fiscal years) for Government Funds is maintained
separately and represents a reconciling item
between the fund and government -wide
presentations.
NOTE 2. — DEPOSITS AND INVESTMENTS
A. Deposits
The City maintains a cash management pool for its
cash and cash equivalents in which each fund and/or
account or sub -account of a fund participates on a
dollar equivalent and daily transaction basis.
Interest income (which includes unrealized gains
and losses) is distributed monthly based on a
monthly average balance.
The use of daily sweeps of zero balance accounts
allows for the City's portfolio to be fully invested at
all times. Although City investment practices avoid
uninvested deposits, Florida Statutes provide
established risk sharing collateral pooling by banks
and savings and loans (which are qualified public
depositories) that insure local government deposits
and certificates of deposits (C.D.$) with
participating "authorized depositories".
The City's cash management pool is considered to
be a cash equivalent for reporting purposes because
it is an internally managed mutual fund which
allows individual funds and subfunds to, at any
time, deposit additional cash or make withdrawals
without prior notice or penalty. The investment
earnings on the City's cash management pool are
reported as part of the investing activity.
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
All deposits are held in banking institutions
approved by the State Treasurer of the State of
Florida, to hold public funds. Under the Florida
Statutes Chapter 280, "Florida Security for Public
Deposits Act", the State Treasurer requires all
qualified public depositories to deposit with the
Treasurer or another banking institution eligible
collateral equal to 50% to 125% of the average daily
balance for each month of all public deposits in
excess of any applicable deposit insurance held. The
percentage of eligible collateral (generally, U.S.
governmental and agency securities, state or local
government debt, or corporate bonds) to public
deposits is dependent upon the depository's
financial history and its compliance with Chapter
280, Florida Statutes. In the event of a failure of a
qualified public depository, the remaining public
depositories would be responsible for covering any
resulting losses. Accordingly, all cash and time
deposits held by banks can be classified as category
one credit risk as defined in GASB Statement No. 3,
which means they are fully insured or collateralized.
The bank deposits at September 30, 2002 of the
City and it's discretely present component units are
fully insured or collateralized in accordance with
GASB Statement No. 3, Deposits With Financial
Institutions, Investments (Including Repurchase
Agreements), and Reverse Repurchase Agreements).
B. Investments
As required by Florida Statutes, the City has
adopted a written investment policy, which may
from time to time, be amended by the City
Commission. The City Code authorizes the
Director of Finance to purchase and invest idle
funds prudently in U. S. Treasuries and obligations
of agencies of the United States, provided such are
guaranteed by the United States or by the issuing
agency; general obligations of states, municipalities,
school districts, or other political subdivisions;
revenue and excise tax bonds of the various
municipalities of the State of Florida, provided none
of such securities has been in default within five
years prior to date of purchase; negotiable
certificates of deposit; bankers acceptance drafts;
36
money market investments; and prime commercial
paper.
The Local Government Surplus Funds Trust Fund is
governed by Ch. 19-7 of the Florida Administrative
Code, which identifies the Rules of the State Board
of Administration. These rules provide guidance
and establish the general operating procedures for
the administration of the Local Government Surplus
Funds Trust Fund. Additionally, the Office of the
Auditor General performs the operational audit of
the activities and investments of the State Board of
Administration.
The fair value of the position in the external
investment pool is the same as the value of the pool
shares.
Investments are categorized to give an indication of
the level of risk assumed by the entity at year end.
The three categories of risk are as follows:
(1) Insured or collateralized with securities held
by the entity or by its agent in the entity's name;
(2) Collateralized with securities held by the
pledging financial institution's trust department or
agent in the entity's name; and
(3) Uncollateralized, including any bank balance
that is collateralized with securities held by the
pledging financial institution, or by its trust
department or agent t -it not in the entity's name.
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The City's non -pension investments consisted of the following at September 30, 2002 and are classified as
follows:
Primary Government
Credit Risk CategorX
1 2 Fair Value
U.S. Treasury Notes and Bills ........... $ 49,763,950 $ - $ 49,763,950
U.S. Agencies Obligations ................. 341,317,388 - 341,317,388
Short -Term Commercial Paper........... 77,972,900 6,313,508 84,286,408
Totals........................................
Money Market Investments ..............
Totals........................................
$ 469,054,238 $ 6,313,508 $ 475,367,746
29,931,970
$ 505,299,716
The City had other investments in the amount of $1,735,599 which consisted of short-term investment pools at
September 30, 2002, which are not categorized because they are not evidenced by securities that exist in
physical or book entry form.
MSEA
Credit Risk Category
2
Money Market Investments .............. $ 11,290,699
Totals........................................
Fair Value
$ 11,290,699
$ 11,290,699
MSEA had other investments in the amount of $1,290,732 which consisted of short-term investment pools at
September 30, 2002, which are not categorized because they are not evidenced by securities that exist in
physical or book entry form.
37
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
DOSP
Credit Risk Category
2 Fair Value
U.S. Government Securities .................... $ 4,501,152 $ 4,501,152
Short -Term Investment Pool ..................... 1,751,437
Florida State Board of Administration.......... 890,602
Totals ................................................ $ 7,143,191
DOSP had other investments in the amount of $527,747 which consisted of short-term investment pools at
September 30, 2002, which are not categorized because they are not evidenced by securities that exist in
physical or book entry form.
DDA
DDA's had investments of $2,129,132 that consisted of a jumbo commercial money market paying interest at a
rate of 1.09% per annum. The money market investment is considered cash and is not categorized as level to
risk since it is deemed to be fully collateralized under the Florida Security for Public Deposit Act or covered
under the FDIC insured.
BFP
BFP's had investments of $2,977,211 that consisted of short-term investment pools at September 30, 2002,
which are not categorized because they are not evidenced by securities that exist in physical or book entry form.
R -19V
BFA's had investments of $116,654 that consisted of short-term investment pools at September 30, 2002, which
are not categorized because they are not evidenced by securities that exist in physical or book entry form.
38
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
PENSION TRUST FUNDS
U.S. Government and Agency .............
Corporate Stocks ............................
Corporate Bonds ............................
Totals.........................................
Money Market Funds ......................
Mutual Funds ...........................
Real Estate .................................
Real Property ..............................
Total Pension Investments .............
Credit Risk Category
1
$ 322,615,853
754,468,244
211,996,953
$ 1,289,081,050
Fair Value
$ 322,615,853
754,468,244
211,996,953
1,289,081,050
21,042,477
49,429,740
29,061,148
70,202
$ 1,388,684,617
The investments of $51,850,367 in the short-term investment pools and mutual funds are not categorized to give
an indication of the level of risk assumed by the entity at year end because they are not evidenced by securities
that exist in physical or book entry form.
39
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The following represents the balances relating to securities lending transactions at September 30, 2002:
Securities lent:
Lent for cash collateral:
U.S government and
agency obligations
Domestic corporate stocks
Domestic corporate bonds
International corporate stocks
Lent for securities collateral:
U.S government and
agency obligations
Domestic corporate stocks
Domestic corporate bonds
International corporate stocks
Total securities lent
Fair Value
Underlying
Securities
$ 43,768,926
27,256,457
22,222,768
1,587,920
94,836,071
17,284,051
563,371
1,457,377
19,304,799
$ 1141-140,870
Cash Colleteral
Received/Securities
Collateral Value
$ 44,667,850
28,172,747
22,722,098
1,705,528
97,268,223
17,782,926
586,577
1,480,264
19,849,767
Cash Collateral
Investment Value
$ 44,667,850
28,172,747
22,722,098
1,705,528
97;268,223
$ 117,117,990 $ 97,268,223
The contract with the Trust's custodian requires the custodian to indemnify the Trust if the borrower fails to
return the securities, due to the insolvency of a borrower, and the custodian has failed to live up to its
contractual responsibilities relating to the lending of those securities. At year end, the Trust had no credit risk
exposure to borrowers because the amounts of collateral held by the Trust exceed the amounts the borrowers
owe the Trust. There are no significant violations of legal or contractual provisions, no borrowers or lending
agent default losses, and no recoveries of prior period losses during the year. There are no income distributions
owning on securities lent.
40
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
NOTE 3. - RECEIVABLES
A. Accounts Receivable
Accounts receivable at September 30, 2002 consisted of the following:
Receivables
Taxes
Accounts
Special Assessments
Intergovernmental
Loans
Gross receivables
Less: allowance
for uncollectibles
Net total receivables
Nonmajor
Community Public General and Other
General
Development Services Tax Government
Funds
Total
_
$ 6,090,924
$ - $ - $ - $
783,798 $
6,874,722
20,130,383
1,655,258 - 575,000
5,772,259
28,132,900
-
142,878 - -
257,168
400,046
9,344,159
5,203,928 7,976,612 -
3,248,254
25,772,953
288,000
49,534,290 - -
-
49,822,290
35,853,466
56,536,354 7,976,612 575,000
10,061,479
111,002,911
21,471,241
)) (1,677,734) (67
- $ 8,383,745 $ 43
As part of its Community Development Block Grant program, the City issues single and multi -family housing
rehabilitation loans to qualified residents. All repayments of the loans, which carry low interest rates, remain in
the loan program. As collection of the loans is not assured the loans are fully reserved. As of September 30,
2002, rehabilitation loans outstanding totaled approximately $49,534,290.
Component Units
NOTE 4. - PROPERTY TAXES
Property taxes are levied on January ls` and are payable on November ls`, with discounts allowed of one to four
percent if paid prior to March 1st of the following calendar year. Taxpayers also have the option of paying their
taxes in advance in equal quarterly payments based on the prior year's tax assessment with quarterly discounts
varying between 2% and 6%. All unpaid taxes on real and personal property become delinquent on April 1" and
bear interest at 18% until a sale tax certificate is sold at auction. The County bills and collects all property taxes
for the City, and sells tax certificates for delinquent taxes.
The assessed value of property, as established by the Miami -Dade County Property Appraiser, at January 1,
2001, upon which the 2001-2002 levy was based, was approximately $15,346,000,000. The City is permitted by
Article 7, Section 8 of the Florida Constitution to levy taxes up to $10 per $1,000 of assessed valuation for
41
MSEA
DOSP
BFP
Total
Receivables
Taxes
$ 603,984 $
- $
- $
603,984
Accounts
91,673
391,665
133,047
616,385
Intergovernmental
-
1,642,730
-
1,642,730
Loans
2,000,000
-
-
2,000,000
Gross Receivables
2,695,657
2,034,395
133,047
4,863,099
Less: allowance for
uncollectibles
-
(32,917)
(94,748)
(127,665)
Net total receivables
_
$ 2,695,657 $
2,001,478 $
38,299 $
4,735,434
NOTE 4. - PROPERTY TAXES
Property taxes are levied on January ls` and are payable on November ls`, with discounts allowed of one to four
percent if paid prior to March 1st of the following calendar year. Taxpayers also have the option of paying their
taxes in advance in equal quarterly payments based on the prior year's tax assessment with quarterly discounts
varying between 2% and 6%. All unpaid taxes on real and personal property become delinquent on April 1" and
bear interest at 18% until a sale tax certificate is sold at auction. The County bills and collects all property taxes
for the City, and sells tax certificates for delinquent taxes.
The assessed value of property, as established by the Miami -Dade County Property Appraiser, at January 1,
2001, upon which the 2001-2002 levy was based, was approximately $15,346,000,000. The City is permitted by
Article 7, Section 8 of the Florida Constitution to levy taxes up to $10 per $1,000 of assessed valuation for
41
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
general governmental services other than the payment of principal and interest on general obligation long-term
debt. In addition, unlimited amounts may be levied for the payment of principal and interest on general
obligation long-term debt, subject to a limitation on the amount of debt outstanding. The tax rate to finance
general governmental services (other than the payment of principal and interest on general obligation long-term
debt) for the year ended September 30, 2002, was $8.995 per $1,000. The debt service tax rate for the same
period was $1.218 per $1,000.
Property taxes receivable reported in the government -wide Statement of Net Assets and the governmental funds
Balance Sheet represent amounts due for unpaid delinquent property taxes at September 30, 2002. Property
taxes that are not considered "available" have been reported as deferred revenues in the governmental funds
Balance Sheet.
42
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
NOTE 5. — CAPITAL ASSETS
The following is a summary of changes in capital assets during the year ended September 30, 2002:
Governmental Activities:
Capital assets, not being depreciated:
Land
Construction in progress
Total Capital assets, not being depreciated
Capital assets, being depreciated:
Buildings
Improvements other than buildings
Building improvements
Machinery and equipment
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Building improvements
Machinery and equipment
Infrastructure
Total accumulated depreciation
Governmental activities capital assets, net
Primary Government
Beginning Ending
Balance Additions Retirements Balance
$ 61,762,501 $ 1,933,066 $ - $ 63,695,567
34,047,536 9,293,300 - 43,340,836
95,810,037 11,226,366 - 107,036,403
168,737,839
- - 168,737,839
24,061,858
- - 24,061,858
61,593
2,098,528 - 2,160,121
108,600,300
13,439,359 (6,554,795) 115,484,864
1,005,399,496
- - 1,005,399,496
1,306,861,086
15,537,887 (6,554,795) 1,315,844,178
(75,677,909)
(4,434,615)
- (80,112,524)
(16,474,919)
(1,078,503)
- (17,553,422)
(106)
(236,598)
- (236,704)
(64,895,080)
(11,138,991)
6,077,136 (69,956,935)
(402,077,318)
(25,765,566)
- (427,842,884)
(559,125,332)
(42,654,273)
6,077,136 (595,702,469)
$ 843,545,791 $ (15,890,020) $ (477,659) $ 827,178,112
Depreciation expense was charged to government functions as follows:
General Government $ 3,222,749
Planning and Development 78,990
Community Development
Community Redevelopment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Unallocated
Total depreciation expense
87,829
23,875
2,960,301
7,231,983
406,025
2,876,955
25,765,566
$ 42,654,273
43
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
MSEA
Beginning Ending
Balance Additions Retirements Balance
Capital assets, not being depreciated:
Land $ 5,923,000 $ - $ - $ 5,923,000
Parking lot/warehouse 1,157,662 - - 1,157,662
Total capital assets, not being depreciated 7,080,662 - - 7,080,662
Capital assets, being depreciated:
Miami arena
48,922,732
146,960
49,069,692
Miami arena equipment
1,982,199
131,060
- 2,113,259
Office equipment
223,144
12,646
- 235,790
Art in public places
187,587
-
- 187,587
Vehicles
-
10,184
- 10,184
Total capital assets, being depreciated
51,315,662
300,850
- 51,616,512
Less accumulated depreciation for:
Miami arena
(16,223,556)
(1,224,905)
(17,448,461)
Miami arena equipment
(1,420,687)
(136,590)
(1,557,277)
Office equipment
(161,540)
(21,424)
(182,964)
Art in public places
(54,950)
(7,503)
(62,453)
Total accumulated depreciation
(17,860,733)
(1,390,422)
(19,251,155)
MSEA capital assets, net
$ 40,535,591 $
(1,089,572) $
$ 39,446,019
44
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Building and structures
Leasehold improvements
Furniture and fixtures
Equipment
Total capital assets, being depreciated
Less accumulated depreciation for:
Building and structures
Leasehold improvements
Furniture and fixtures
Equipment
Total accumulated depreciation
DOSP capital assets, net
DOSP
Beginning Ending
Balance Additions Retirements Balance
$ 10,343,206 $ 1,733,147 $ - $ 12,076,353
36,770 76,823 (36,770) 76,823
10,379,976 1,809,970 (36,770) 12,153,176
23,283,803
52,160
- 23,335,963
4,972,667
3,140
- 4,975,807
157,807
1,600
159,407
8,517,871
616,906
(200,527) 8,934,250
36,932,148
673,806
(200,527) 37,405,427
(10,601,419)
(690,597)
- (11,292,016)
(4,122,525)
(131,473)
(4,253,998)
(143,631)
(5,190)
- (148,821)
(5,625,798)
(742,312)
200,527 (6,167,583)
(20,493,373)
(1,569,572)
200,527 (21,862,418)
$ 26,818,751 $ 914,204 $ (36,770) $ 27,696,185
45
DDA
Beginning
Ending
Capital assets, being depreciated:
Balance
Additions
Retirements
Balance
Leasehold improvements
$ 332,732
$ 27,197 $
(57,036) $
302,893
Total capital assets, being depreciated
332,732
27,197
(57,036)
302,893
Less accumulated depreciation for:
Furniture and equipment
(270,438)
(34,390)
57,036
(247,792)
Total accumulated depreciation
(270,438)
(34,390)
57,036
(247,792)
DDA capital assets, net
$ 62,294
$ (7,193) $
- $
55,101
45
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Capital assets, not being depreciated:
Land
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings
Public domain and system infrastructure
Machinery and equipment
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings
Public domain and system infrastructure
Machinery and equipment
Total accumulated depreciation
BFP activities capital assets, net
BFP
Beginning Ending
Balance Additions Retirements Balance
$ 516,129 $ - $ $ 516,129
516,129 - 516,129
2,609,840
2,609,840
1,382,462 -
1,382,462
363,049 115,919
478,968
4,355,351 115,919
4,471,270
(704,657)
(52,196)
(756,853)
(835,345)
(68,748)
(904,093)
(216,201)
(32,392)
(248,593)
(1,756,203)
(153,336)
(1,909,539)
$ 3,115,277 $ (37,417) $ - $ 3,077,860
Depreciation expenses were charged to the discretely presented component units as follows:
MSEA
$ 1,390,422
DOSP
1,569,572
DDA
34,390
BFP
153,336
Total depreciation expense
$ 3,147,720
46
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
NOTE 6. - LONG-TERM OBLIGATIONS
A. Changes in Long Term Obligations
The following is a summary of changes in long-term obligations for the year ended September 30, 2002:
47
Beginning
Balance
Additions
Reductions
Ending
Balance
Due within
One Year
General obligation bonds
$ 107,620,000 $
188,861,553
$ (43,605,000) $
252,876,553
$ 12,616,450
Special obligations bonds,
notes and loans
222,225,586
43,780,458
(49,448,400)
216,557,644
9,441,400
Total bonds, notes, and loans
329,845,586
232,642,011
(93,053,400)
469,434,197
22,057,850
Other liabilities:
Claims payable
78,719,448
24,899,926
(21,091,926)
82,527,448
17,337,448
Compensated absences
57,199,896
9,957 846
(1,988,295)
65,169,447
4,980,868
Total governmental activity
long-term liabilities
$ 465,764,930 $
500,141,794
$ (209,187,021) $
617,131,092
$ 44,376,166
47
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
B. Description of Individual Bond Issues and Loans Outstanding — Summarized below are the City's bond
and loan issues, which are outstanding at September 30, 2002:
Maximum
Purpose of Amount Outstanding Interest Rate Annual
DESCRIPTION Issue Issued Balance Range Debt Service
General Obligations:
General Obligations Refunding Bonds
Series 1992
General Obligations Refunding Bonds
Series 1993
Homeland Defense/Neighborhood CIP
Series 2002A
General Obligations Refunding Bonds
Series 2002A
General Obligations Bonds
Other Issues
General Obligations Bonds
Special Obligation and Revenue Bonds:
Special Revenue Refunding Bonds
Series 1987
Community Redevelopment Revenue Bonds
Series 1990
Special Obligation Non -Ad Valorem
Special Obligation Non -Ad Valorem Revenue
Series 1994
Special Obligation Non -Ad Valorem Revenue
Series 1995
Special Revenue Refunding Bonds
Series 2002A
Special Revenue Refunding Bonds
Series 2002B
Sunshine State Government Financing
Commission Loans
Sunshine State Government Financing
Commission -Commercial Paper Program
Sunshine State Government Financing
Section 108 HUD Loan
Section 108 HUD Loan
Wynwood
Sunshine State Government Financing
Commission -Commercial Paper Program
Refunding
$ 70,100,000 $
39,390,000
4%-6% $
8,822,575
Refunding
31,860,000
21,880,000
3.5%-5.2%
3,744,815
Homeland Defense
153,186,406
156,351,553
1.80lo-5.5%
19,720,375
Refunding
32,510,000
32,410,000
2.5%-5.375%
6,682,281
Housing
39,075,000
2,745,000
3%-11%
427,358
Sanitary Sewer
22,500,000
100,000
4.59o-6.5%
100,000
$ 349,231,406 $
252,876,553
Refunding
$ 65,271,325 $
42,705,786
5.25%-7.3%
5,900,000
Redevelopment
11,500,000
2,740,000
7.15%-8.5%
358,975
MRC Building
22,000,000
4,300,000
50lo-6%
667,955
Self -Insurance
18,000,000
785,000
5%-6%
785,000
Pension
72,000,000
66,745,000
5.5%-7.25%
5,812,300
Refunding
27,895,000
27,409,956
2.5%-5.375%
3,353,539
Refunding
13,170,000
12,994,738
2%-3.25%
4,183,337
Facility Improvements
27,630,900
16,068,300
(1)
(2)
Fleet Management &
Police Computers
15,190,000
2,695,000
(1)
(2)
Facility Improvements
30,000,000
25,780,000
(1)
(2)
Redevelopment
4,800,000
4,500,000
8.75%
737,563
Redevelopment
2,500,000
1,050,000
8.75%
748,440
Redevelopment
5,500,000
4,540,000
(3)
(3)
Secondary Loan SCI, Melreese 3,500,000 2,535,000 (1)
Gran Central Corporation Loan Redevelopment 1,708,864 1,708,864 0.00%
$ 320,666,089 $ 216,557,644
Total $ 669,897,495 $ 469,434,197
(1) These variable rate loans are subject to a 15% interest rate cap. The Commission Loan and the Commercial Paper Notes had
average interest rate of 1.2875% and 1.731% respectively on September 30, 2002.
(2) The amortization requirement of the covenant program (not the individual issues) variable rate obligation require a minimum
amortization over the 1/3 (10 years) of the normal (30 years) maturity.
(3) These variable rate loans are subject to Libor plus 0.2%. The interested is calculated monthly and paid to the trustee quarterly.
48
(2)
$ 1,708,864
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
C. Summary of Annual Debt Service Requirements To Maturity — Annual Principal and Interest
The annual debt service requirements for all bonds, notes, and loans outstanding as of September 30, 2002, are
as follows:
(1) Excludes $260,731 accretion on the Capital Appreciation Bonds and $2,904,416 of unamortized bond premium.
(2) Excludes $1,708,864 Gran Central Loan, unamortized premium of $34,738, and $485,043 of unamortized bond discount.
(3) Excludes $28,819,461 accretion on the Capital Appreciation Bonds.
49
Special
General
Obligation Bonds,
Revenue
Obligation Bonds
Notes and Loans
Bonds
Principal (1)
Interest
Principal (2)
Interest
Principal (3)
Interest
2003
$ 12,616,450 $
10,101,687
$ 9,441,400 $
9,099,130
$ - $
-
2004
10,695,000
10,124,700
7,343,400
8,737,813
1,811,064
4,088,936
2005
10,115,000
9,597,340
6,996,400
8,402,933
1,653,829
4,246,171
2006
10,373,024
9,345,301
7,375,400
8,087,542
1,520,371
4,379,629
2007
10,347,523
9,369,549
7,782,400
7,750,807
1,396,353
4,503,647
2008-2012
51,270,993
47,321,024
44,314,300
33,009,652
5,342,912
23,854,436
2013-2017
57,808,416
40,786,532
31,945,000
22,433,370
2,161,796
14,170,876
2018-2022
86,485,000
12,109,115
32,895,000
13,521,168
-
-
2023-2027
-
-
24,500,000
3,476,619
-
-
$ 249,711,406 $
148,755;248
$ 172,593,300 $
114,519,034
$ 13,886,325 $
55,243,695
(1) Excludes $260,731 accretion on the Capital Appreciation Bonds and $2,904,416 of unamortized bond premium.
(2) Excludes $1,708,864 Gran Central Loan, unamortized premium of $34,738, and $485,043 of unamortized bond discount.
(3) Excludes $28,819,461 accretion on the Capital Appreciation Bonds.
49
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
D. Summary of New Debt Issuances
$153,186,406 Limited Ad Valorem Tax Bonds,
Series 2002 — On August 8, 2002, the City issued
$153,186,405 Limited Ad Valorem Tax Bonds
Series 2002 (Homeland Defense/Neighborhood
Capital Improvements Projects) with interest rates
ranging from 1.80% to 5.50% maturing through the
year 2022. The bonds are payable from limited ad
valorem tax and a covenant of the City to budget
and appropriate a limited portion of its Non -Ad
Valorem revenues.
$32,510,000 General Obligation Refunding
Bonds, Series 2002A — On May 8, 2002, the City
issued $32,510,000 in General Obligation
Refunding Bonds, Series 2002A for the purpose of
refunding all or a portion of the City's outstanding
$16,135,000 General Obligation Bonds, Series 1991
on a current refunding basis, $10,000,000 General
Obligation Bonds, Series 1992 (Storm Water
Improvements) on a current refunding basis,
$22,500,000 General Obligation Bonds, Series 1995
(Sanitary Sewer System) on a advance refunding
basis. The aggregate principal amount of the
Refunding Bonds at the time of the refunding was
$31,970,000. The Bonds were issued at rates
ranging from 4.90% to 6.90% maturing through the
year 2017. The net proceeds of $33,392,707 (after
payment of $671,010 in underwriting fees, issuance
and other costs) were deposited in an irrevocable
trust with an escrow agent to provide for all future
debt service payments on the old bonds. The
refunding reduced the total debt service payments
over the next 16 years by $1,308,313 and the
economic gain or present value savings realized by
this refunding was $1,445,691.
$27,895,000 Special Obligation Non -Ad Valorem
Revenue Refunding Bonds Series 2002A — On
August 6, 2002, the City issued $27,895,000 in
Special Obligation Refunding Bonds, Series 2002A
to advance refund all or a portion of the City's
outstanding $4,290,000 Special Obligation Bonds,
Series 1986A on an advanced refunding basis,
$65,271,325 Special Revenue Refunding Bonds,
Series 1987 on an advance refunding basis,
50
$6,500,000 Guaranteed Entitled Revenue Bonds,
Series 1989 on a current refunding basis, and
$22,000,000 Special Obligation Non -Ad Valorem
Bonds, Series 1995 on an advanced refunding basis.
The aggregate principal amount of the Refunding
Bonds at the time of the refunding was $25,915,000.
The Bonds were issued at rates ranging from 6.00%
to 7.40% maturing through the year 2025. The net
proceeds of $27,251,958 (after payment of
$627,572 in underwriting fees, issuance and other
costs) were deposited in an irrevocable trust with an
escrow agent to provide for all future debt service
payments on the old bonds. The refunding
increased the total debt service payments over the
next 24 years by $2,578,971 and the economic gain
or present value savings realized by this refunding
was $627,919.
$13,170,000 Special Obligation Non -Ad Valorem
Revenue Refunding Bonds Series 2002B — On
August 6, 2002, the City issued $13,170,000 in
Special Obligation Refunding Bonds, Series 2002B
for the purpose of refunding City's outstanding
$18,000,000 Special Non -Ad Valorem Bonds,
Series 1994 maturing in the years 2009 through
2014 on an advanced refunding basis. The aggregate
principal amount of the Refunding Bonds at the
time of the refunding was $12,095,000. The Bonds
were issued at rates ranging from 5.00% to 6.00%
maturing through the year 2014. The net proceeds
of $13,112,916 (after payment of $259,204 in
underwriting fees, issuance and other costs) were
deposited in an irrevocable trust with an escrow
agent to provide for all future debt service payments
on the old bonds. The refunding decreased the total
debt service payments over the next 24 years by
$3,243,491 and the economic gain or present value
savings realized by this refunding was $842,240.
E. Synopsis of Bond Covenants
A summary of major provisions and significant debt
services requirements follows:
Debt service for general obligation bonds is
provided for by a tax levy on non-exempt property
value. The total general obligation debt outstanding
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
is limited by the City Charter to 15% of the assessed
non-exempt property value. At September 30, 2002,
the statutory limitation for the City amounted to
$2,495,389,613 providing a debt margin of
$2,248,293,752 after consideration of the
$249,711,407 of general obligation bonds
outstanding at September 30, 2002 less $2,615,546
available in the related Debt Service Fund.
The various special obligation and revenue bonds
are secured by pledges of specific revenue sources
in accordance with their bond indentures. Their
bond resolutions require that sufficient funds be
available in reserve accounts to meet the largest
debt service requirement in any ensuing fiscal year
or that a surety bond be obtained in lieu of the
reserve account.
Loans obtained from the Sunshine State
Governmental Financing Commission require a
particular revenue pledge or a covenant to budget
and appropriate non -ad valorem revenues. The City
must maintain certain debt ratio requirements as
specified under this loan requirement.
The City believes it is in material compliance with
its financial debt covenants.
F. Escrow Agreement
On March 17, 1997, an agreement was entered into
by and among an Escrow Agent, the Oversight
Board, acting through its committee Fiscal
Sufficiency Advisory Board, and the City. The
agreement directs the Escrow Agent to establish two
(2) escrow accounts, and maintain appropriate
balances to ensure the timely payment of debt
service on outstanding General Obligation and
Revenue Bonds.
The City made an initial deposit of $9,700,000 with
the escrow agent on March 17, 1997 to cover its
debt service requirements on the General Obligation
Bonds. The City has agreed that certain ad valorem
tax revenues received will be deposited each month
into the escrow account of an amount specified by
the underlying agreement. If the ad valorem taxes
51
received in any month are inadequate to make the
required deposit, the City must use other sources of
funds to supplement the required deposits.
Also, the City made an initial deposit of
approximately $5,000,000 with the Escrow Agent
on March 17, 1997 to cover its debt service
requirements on the Special Obligation Bonds and
Loans. The City has agreed to deposit revenues
each month in amounts specified in the underlying
agreement.
G. Long -Term Debt Authorized But Not Issued
On November 13, 2001, a referendum election was
held and the voters approved the issuance of
$255,000,000 of Limited Ad Valorem Tax Bonds.
As of September 30, 2002, the City has issued
$153,186,405 of the approved bonds.
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
H. Defeasance of Long -Term Debt
In prior years, the City defeased certain outstanding
general obligation, special obligation and revenue
bonds. For those defeasances involving advance
refundings, the proceeds of the new bonds were
placed in an irrevocable trust to provide for all
future debt service payment on the old bonds. At
September 30, 2002, the following outstanding
bonds are considered defeased:
Prior' Years' Defeased Debt:
$11,500,000 General Obligation Bonds, Series 1997:
Public Parks and Recreational Facilitates .............................................. 480,000
Total Prior Defeased Debt: .............................................. 480,000
Current Years' Defeased Debt:
$6,500,000 Special Obligation Bonds, Series 1989:
Guarantee Entitlement Bonds.................................................................$ 3,285,000
$4,290,000 Special Obligation Bonds, Series 1986-A:
Housing Bonds........................................................................................$ 1,375,000
$22,000,000 Special Obligation Non -Ad Valorem Revenue Bonds, Series 1995:
City Administration Building..................................................................$15,765,000
$18,000,000 Special Obligation Non -Ad Valorem Revenue Bonds, Series 1994
RiskManagement...................................................................................$12,095,000
$16,135,000 General Obligation Bonds Refunding Bonds, Series 1991
SanitarySewer........................................................................................$ 2,360,000
$10,000,000 General Obligation Bonds Refunding Bonds, Series 1992
StormSewer............................................................................................$ 7,710,000
$22,500,000 General Obligation Bonds Refunding Bonds, Series 1995
Sanitary Sewer........................................................................................$21,900,000
$65,271,325 Special Revenue Refunding Bonds, Series 1987 ................$ 5,490,000
Total Current Defeased Debt: .......................................... $69,980,000
• . 1 •,1 1.111
52
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
L Discretely Presented Component Units Long -Term Debt
MSEA
The changes in the general long-term obligations for MSEA year ended September 30, 2002 are summarized as follows:
$ 33,995,000 $ 22,536,381 $ 2,400,000 $ 316,933 $ 59,248,314
Range of Rates 5.75%-7.2% 2.95%-6.625%
In prior years, MSEA defeased in substance its Series 1991 Bonds. At September 30, 2002,
the outstanding balance of the defeased bonds totaled $34,961,940.
53
Special Obligation
Refunding Bonds
Series 1992A and 1992B
Balance, October 1, 2001
$ 38,040,000
Principal payments
(1,645,000)
Balance, September 30, 2002
$ 36,395,000
Due Within One Year
$ 1,740,000
$ 33,995,000 $ 22,536,381 $ 2,400,000 $ 316,933 $ 59,248,314
Range of Rates 5.75%-7.2% 2.95%-6.625%
In prior years, MSEA defeased in substance its Series 1991 Bonds. At September 30, 2002,
the outstanding balance of the defeased bonds totaled $34,961,940.
53
Series 1992A
Series 1992B
Principal
Interest
Principal Interest
Total
2003 $
985,000 $
2,045,932 $
755,000 $ 151,639 $
3,937,571
2004
1,040,000
1,977,033
795,000 108,981
3,921,014
2005
1,110,000
1,903,495
850,000 56,313
3,919,808
2006
1,180,000
-1,825,320
- -
3,005,320
2007
1,260,000
1,747,830
- -
3,007,830
2008-2012
7,565,000
7,399,373
- -
14,964,373
2013-2017
10,200,000
4,605,428
- -
14,805,428
2018-2020
10,655,000
1,031,970
- -
11,686,970
$ 33,995,000 $ 22,536,381 $ 2,400,000 $ 316,933 $ 59,248,314
Range of Rates 5.75%-7.2% 2.95%-6.625%
In prior years, MSEA defeased in substance its Series 1991 Bonds. At September 30, 2002,
the outstanding balance of the defeased bonds totaled $34,961,940.
53
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
DOSP
The City has issued revenue bonds on behalf of the DOSP. The principal and interest of the revenue bonds are
payable solely from the revenues of the parking facilities and, accordingly, are included in the accounts of the
DOSP.
The DOSP's long-term debt activity during 2002 was as follows:
Balance, October 1, 2001
Principal payments
Balance, September 30, 2002
Due Within One Year
Series
1998
$ 12,365,000
(610,000)
$ 11,755,000
$ 635,000
Bonds payable as of September 30, 2002 also include an unamortized deferred loss on the advance refunding of
the series 1992A bonds of approximately $86,000.
The following summarizes the debt service to maturity of outstanding debt at September 30, 2002:
Range of Rates 3.75%-5.25%
In prior years, DOSP defeased in substance its Parking Facilities Revenue Bonds 1993A and 1992A, and at
September 30, 2002, the outstanding balance of defeased bonds was $2,920,000 and $11,135,000, respectively.
Bonds payable as of September 30, 2002 include an unamortized deferred loss on the advanced refunding
of the Series 1992A bonds of approximately $86,000.
Balance Balance
9/30/2001 Additions Reductions 9/30/2002
Bonds payable $ 12,375,000 $ 13,000 $ (610,000) $ 11,778,000
Total long -tern
liabilities $ 12,375,000 $ 13,000 $ (610,000) $ 11,778,000
54
Principal
Interest
Total
2003
$ ;. 635,000 $
528,000 $
1,163,000
2004
655,000
503,000
1,158,000
2005
685,000
476,000
1,161,000
2006
710,000
448,000
1,158,000
2007
740,000
419,000
1,159,000
2008-2012
4,190,000
1,576,000
5,766,000
2013-2017
4,140,000
447,000
4,587,000
Total
11,755,000
4,397,000
16,152,000
Current Portion
(635,000)
(528,000)
(1,163,000)
Total debt
$ 11,120,000 $
3,869,000 $
14,989,000
Range of Rates 3.75%-5.25%
In prior years, DOSP defeased in substance its Parking Facilities Revenue Bonds 1993A and 1992A, and at
September 30, 2002, the outstanding balance of defeased bonds was $2,920,000 and $11,135,000, respectively.
Bonds payable as of September 30, 2002 include an unamortized deferred loss on the advanced refunding
of the Series 1992A bonds of approximately $86,000.
Balance Balance
9/30/2001 Additions Reductions 9/30/2002
Bonds payable $ 12,375,000 $ 13,000 $ (610,000) $ 11,778,000
Total long -tern
liabilities $ 12,375,000 $ 13,000 $ (610,000) $ 11,778,000
54
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
NOTE 7. - SELF-INSURANCE
A. Risk Management
The City is self-insured for most liability activities. However, the City has a commercial insurance program for
property and liability exposures related to city owned properties that includes the James L. Knight Center,
Orange Bowl, Marinas, Bayfront Park and Special Events. There is no significant reduction in insurance
coverage from the previous year. Settled claims have not exceeded coverage in the past three years. The
General Fund accounts for all risk of loss to which the City is exposed, including general liability, property and
casualty, workers' compensation, employee health and accident, and environmental.
Claims expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of
that loss can be reasonably estimated based on an independent actuarial valuation. Liabilities include an amount
for claims that have been incurred but not reported. The process used in computing claims liability does not
necessarily result in an exact amount because actual claims liabilities depend on such complex factors as
inflation, changes in legal doctrines, and damage awards. Claims liabilities are reevaluated periodically to take
into consideration recently settled claims, the frequency of claims, and other economic and social factors.
The City maintains excess coverage with independent insurance carriers for the worker's compensation, police
torts, auto liability, public officials liability, and general liability self-insurance programs. Premiums are
charged to the Risk Management Department and determined based on amounts necessary to provide funding
for current losses and to meet the required annual payments during the fiscal year. The property insurance
program provides coverage for windstorm hail subject to a 5% deductible with no cap multiple loss limits apply.
At September 30, 2002, the total estimated liability of $82,527,448 is discounted at an interest rate of 5% and
recorded on the government -wide financial statements. Changes in claims liability amount in 2001 and 2002
were:
Current Year
Beginning of
Claims
Fiscal Year Ended Fiscal Year
And Changes
Claims
Balance At
September 30, Liability
In estimates
Payments
Fiscal Year End
2001 $ 84,654,355
$ 14,736,157
$ 11,190,157
$ 88,200,355
2002 88,200,355
15,119,019
20,791,926
82,527,448
B. Group Accident and Health
Certain employees and retirees of the City
contribute, through payroll deductions or deductions
from pension payments, to the cost of group
benefits. The remainder of the funds necessary are
contributed by the City based upon the number of
participants in the plan. As of September 30, 2002,
the ' plan covered approximately 2,500 active
employees, 1,200 retirees and 1,800 employee -
retiree dependent units. Costs of the plan for the
year then ended were approximately $23,907,000.
55
The liability for the group accident and health
program totaled approximately $5,270,000 at
September 30, 2002 and is included in claims
payable in the government -wide Statement of Net
Assets.
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
NOTE 8. - PENSIONS
A. Pension Plans
The City sponsors two separate single employer
defined benefit contributory pension plans under the
administration and management of separate Boards
of Trustees: The City of Miami Fire Fighters' and
Police Officers' Retirement Trust ("FIPO") and the
City of Miami General Employees and Sanitation
Employees' Retirement Trust ("GESE"). The plans
cover substantially all City employees who
contribute a percentage of their base salary or wage
on a bi-weekly basis.
The City's elected officials participate in a single
employer defined benefit non-contributory pension
plan under the administration and management of a
separate Board of Trustees, the City of Miami
Elected Officers' Retirement Trust ("EOIT" ). This
plan covers all elected officials with 7 or more years
of elected service.
The payroll for employees covered by FIFO, GESE
and EORT for the year ended September 30, 2002
was approximately $93.4 million, $69.7 million and
$249 thousand, respectively; the City's total payroll
was $200,151,228.
At October 1, 2002, the date of the most recent
actuarial valuation, membership in the FIFO, GESE
and EORT consisted of the following:
FWO CEM BORT
P== aid berr'rd ades anwity
receiving buts and tan mW
employees enfi led to benefits ht not
yet recdv ng them 1,445 1,956 5
Gnat Employees 1,685 1,609 6
TdaINImbers 3,130 3,565 11
On or after October 4, 1991 and before January 9,
1994, FIPO Plan benefits were 2.75% of average
final compensation. On or after January 9, 1994,
benefits are based on 3.0% of average final
compensation for the first 15 years of creditable
service and 3.5% of average final compensation for
56
years of creditable service in excess of 15 years.
Retirement benefits under the GESE Plan are
generally based on 3.0% of the average final
compensation. Provision for additional benefits for
longevity are available. Early retirement after
twenty years of service is available. Benefits for
disability and death are also provided under the
plans.
Under the EORT Plan, eligibility requires 7 years
total service as an elected official of the City of
Miami to be vested without requiring such service
be continuous. Benefits accrue for City
Commissioners at the rate of 50% of the highest
annual W-2 wages in the last three years of
employment after 7 years of service as an elected
official of the City plus 5% for each additional year
up to 100% at 17 or more years of service. The
Mayor's salary for pension calculations is limited to
the base salary before additional taxable benefits
(i.e., expense allowance, cell phone allowance,
automobile allowance, and term life insurance
greater than $50,000). An active participant will be
fully vested on death and a single sum death benefit
is payable.
City employees in the FIPO Plan are required to
contribute 7% of their salary and employees in the
GESE Plan are required to contribute 10% of their
salary. The EORT is a non-contributory plan.
Contributions from employees are recorded in the
period the City makes payroll deductions from
participants. The City is annually required to
contribute such amounts as necessary on an
actuarial basis to provide FIPO and GESE with
assets sufficient to meet the benefits to be paid.
Contributions to FIPO and GESE are authorized
pursuant to City of Miami Code Sections 40.196 (a)
and (b) and 40.241 (a) and (b), respectively.
Contributions to the FTPO Cost of Living
Adjustment Accounts are authorized pursuant to
Section 40.204 of the City of Miami's Code.
Contributions to EORT are authorized pursuant to
Section 40.291 of the City of Miami's Code.
The City was involved in long-standing litigation,
principally related to funding of the two plans,
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
which was settled under an agreement approved by
the City Commission on June 13, 1985 ("the Gates
Settlement"). Key terms of the Gates Settlement are
as follows:
- Each of the two Boards of Trustees (Boards), in
its discretion, may have its own employees,
administrator, attorneys, accountants, money
managers, and other professionals.
- The City's total annual contributions to FIPO and
GESE beginning with fiscal year 1984/85 are
required to consist of:
- Non -investment expenses
Actuarial contributions for normal cost using
the entry age method; a mechanism has been
agreed upon to resolve possible
disagreement on annual contributions by a
third party.
- Annual unfunded liability contributions
based on a total unfunded liability, including
the effect of certain plan improvements, of
approximately $104,500 for FIPO as of
January 1, 1983 and $109,000 for GESE as
of October 1, 1982.
- A Cost -of -Living Adjustment Fund (COLA
Fund) was created with a designated amount of
savings generated by the tax qualification of
FIPO and GESE, representing employee
contributions of 2% of salary.
On April 6, 1993, the Fraternal Order of Police
(FOP), the International Association of Fire Fighters
(IAF), and the City of Miami entered into an
agreement to modify certain provisions of the Gates
Settlement as related to FIPO through a
Memorandum of Understanding.
The major terms of the agreement were as follows:
- The valuation of the FIPO Trust's assets were
changed to initiate a new moving market asset
value averaged over three years from actuarial
asset value at cost effective after September 30,
1992. This redefinition will immediately
increased the value of the Trust's assets to a
market value of $492 million from $477 million.
57
- The aggregate actuarial cost method was applied
for costs as of October 1, 1993, and each
October 1st thereafter, based on demographic
and asset data as of the previous September 30th;
adjusted for interest from that date to reflect
payment timing. Therefore, all liabilities are
amortized over the average future -working
lifetime of the group, which is approximately
nine years.
- The cost -of -living adjustments are funded by a
percentage of the Trust's annual investment
return in excess of the assumed investment
return. Excess investment return is utilized to
fund a minimum annual payment of $2,500;
increasing by 4% compounded annually. To the
extent necessary, the City shall fund that portion
of the minimum annual payment not funded by
annual excess investment return.
- The schedule of future payments to reduce the
unfunded liability existing at the date was
eliminated as well as the associated Gates
unfunded liability.
- Employee contributions were set at 10% of their
salary effective January 9, 1994.
This agreement was ratified by the union
membership, the City Commission, and the FIPO
Board of Trustees. It received approval by the
Florida State Division of Retirement as to legal
requirements for funding, and it was incorporated
into an amended final judgment ordered by the
Circuit Court in and for the Eleventh Judicial
Circuit, Dade County on December 28, 1993.
On January 1, 1994, the FIFO Trust entered into an
agreement with the City of Miami, in the Gate's
case, with regards to the funding methods, employee
benefits, employee contributions and retiree COLA.
As of January 9, 1994, members no longer
contribute to the original COLA account (COLA 1),
and a new COLA account (COLA In was
established.
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The settlement included the following provisions:
- The funding method was changed to an
aggregate cost method.
- Combining all accounts for investment purposes
(membership and benefit, COLA I & COLA II).
- Retirees receive additional COLA benefits.
- Active employees no longer contribute 2% of
pretax to fund the original retiree COLA
account (COLA I account).
- Active employees now contribute an additional
1.5% pre-tax towards purchasing an additional
0.25 of 1 % multiplier for each year of creditable
service in excess of 15 years.
Therefore, the members total contribution to the
FIFO plan decreased to 10% from 10.5% and are
now contributed entirely into the Membership and
Benefits account. The COLA II account is funded
annually by a percentage of the excess investment
return from other than COLA I account assets. The
excess earnings contributed to the COLA II account
are used to fund a minimum annual payment of
$2,500, increasing by 4% compounded annually. To
the extent necessary, the City funds the portion of
the minimum annual payment not funded by annual
excess earnings no later than January 1St of the
following year.
Prior to January 1, 1994, the COLA I Account was
funded as follows:
- 2% of employee contributions were credited each
pay period.
- A transfer in an amount equal to 1% of the total
payroll of all members per fiscal year, to the extent
such an amount was available from excess interest
earnings determined on an accumulated basis from
October 1, 1982, to the beginning of the year of
determination, reduced by any COLA transfers in
prior years. Excess interest earnings are defined as
being the difference between the rate of return on
the actuarial market value of the average assets as
calculated in accordance with Chapter 112, Florida
Statutes, less the assumed rate of return for active
58
members on the current actuarial valuation report.
Contributions pursuant to this provision were
mandatory for three -and -one-half years only, from
October 1, 1983 to March 31, 1987.
- From October 1, 1985 to March 31, 1988, an
additional amount was transferred representing the
COLA I Account's proportionate share of net
earnings of the Trust. Effective April 1, 1988, the
proportionate share of the Trust's assets attributable
to the COLA I Account were segregated from the
remainder of the Trust's assets, with the result that
henceforth only the earnings from the segregated
assets are recorded by the COLA I Account.
Benefits payable from the COLA Accounts are
computed in accordance with an actuarially based
formula as defined in Section 40.213 of the City of
Miami Code. Benefits are subject to review and
modification in accordance with City of Miami
Code Section 40.213, which provides that all other
matters regarding the COLA Accounts shall be
determined by negotiations between the City, the
Board of Trustees and the bargaining
representatives of the IAFF and the FOP.
Effective October 1, 2000 and thereafter, member
contribution, is 7% of compensation or equal to the
City's contribution, which ever is less. In the event
a member's contribution be less than the 7% due to
the City contribution the difference between the 7%
and the actual contribution shall be deducted from
the member's paycheck and placed into an
individual contribution account (ICA), as part of the
retirement system. Interest on ICA's shall be
determined in the same manner as the COLA
transfer methodology. Interest shall be credited
periodically to the ICA's as determined by the
retirement system board's actuary. Member
contributions and earnings in ICA's shall be deemed
100% vested upon deposit. Upon the member's
separation, ICA balances shall be disbursed as
provided under the Internal Revenue Service Code.
In Fiscal 2000, the City of Miami Commission,
pursuant to applicable Internal Revenue Code
provisions, established qualified governmental
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
excess benefit plans to continue to cover the
difference between the allowable pension to be paid
and the amount of the defined benefit so the benefits
for eligible members (GESE, FIPO and EORT) are
not diminished by changes in the Internal Revenue
Code. The Board of Trustees for GESE and FIPO
and the Plan EORT Fiduciary administers the
excess benefit plan for each respective pension
group.
FIFO members who are eligible for service
retirement of Rule of 64 after September 1998 may
elect to enter the Deferred Retirement Option Plan
(DROP) for a maximum of three years prior to
October 1, 2001. Effective October 1, 2001,
maximum participation in the DROP for firefighters
shall be 48 full months and for police officers who
elect DROP on October 1, 2003, or thereafter,
maximum participation in the DROP shall be 48
full months.
A member's creditable service, accrued benefit and
compensation calculation shall be frozen.
Upon commencement of participation in the DROP,
the participant's contribution and the City's
contribution to the Trust for that participant ceases
as the participant will not earn further creditable
service for pension purposes. Effective October 1,
2001, firefighter DROP participants may continue
City employment for up to maximum of 48 months
and police officers who elect DROP on October 1,
2003, or thereafter, may continue City employment
for up to maximum of 48 full months (36 full
months prior to October 1, 2001). No payment is
made to or for the benefit of a DROP participant
beyond that period. For persons electing
participation in the DROP, an individual DROP
account shall be created. Payment shall be made by
the retirement trust into the employee's DROP
account in an amount equal to the regular monthly
retirement benefit, which the participant would have
received had the participant separated from service
from service and commenced receipt of pension
benefits. Payments received by the participant in
the DROP account are tax deferred. As series of
investments vehicles, which are established by the
59
board of trustees, are made available to DROP
participants to choose from. Any losses, charges, or
expenses incurred by the participant in their drop
account are not made up by the City or the Trust,
but shall be bome by the participant. Upon
termination of employment, a member may receive
distribution from the DROP account in the
following manner: 1) lump sum distribution, 2)
periodic payments, 3) annuity, and 4) rollover of the
balance to another qualified retirement plan.
Any member may defer until the latest date
authorized by Section 401(a)(9) of the Internal
Revenue Code.
A DROP participant shall not be entitled to receive
an ordinary or service disability retirement and in
the event of death of a DROP participant, there shall
be no accidental death benefit for pension purposes.
DROP participation does not affect any other death
or disability benefit provided to a member under
federal law, state law, City ordinance, or any rights
or benefits under any applicable collective
bargaining agreement.
The DROP of the Trust also consists of a Benefit
Actuarially Calculated DROP (BACDROP). A
member may elect to BACDROP to a date no
further than the date of their retirement eligibility
date. Effective October 1, 2001, the BACDROP
period must be in 12 months increments, beginning
at the start of a pay period, not to exceed 48 full
months for firefighters and for police officers who
elected DROP on October 1, 2003 (36 months prior
to October 1, 2001). Participation in the
BACDROP does not preclude participation in the
forward DROP.
The City of Miami General Employees' and
Sanitation Employee's Retirement Trust made the
DROP available to all Retirement Trust members
effective May 1, 2002. The DROP is an
enhancement to the GESE Retirement Trust that can
provide a trust member with another way to save for
retirement. It allows a participant to receive
pension payments by depositing in the DROP
program while continuing to work and receive pay
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
and benefits as an active employee. At the end of
the DROP period, when the participant is officially
required to retire, the participant receives monthly
pension payments based on the years of service and
salary at the time that the participant enrolled in the
DROP. In addition, the participant also receives the
60
accumulated DROP account balance. The DROP
monies can also be rolled over into a tax -qualified
plan such as an Individual Retirement Account
(IRA) or 457(b) government sponsored deferred
compensation plan that agrees to separately account
for the rollover contribution.
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The following table provides information concerning funding policies for FIPO, GESE and EORT:
FIFO:
Valuationdate ......................................................
Actuarial cost method ..........................................
Amortization method ...........................................
Remaining amortization period ...........................
Asset Valuation method .......................................
Actuarial assumptions:
Investment rate of return ...................................
Salary increases:
Inflation.........................................................
Merit, Longevity, etc .....................................
Mortality table ..................................................
Mortality, disability, retirements and turnover.
GESE:
Valuationdate ......................................................
Actuarial cost method ..........................................
Amortization method ...........................................
Remaining amortization period ...........................
Asset Valuation method .......................................
Actuarial assumptions:
Investment rate of return ...................................
Projected salary increases .................................
Includes inflation at ..........................................
Cost of living adjustments ................................
EORT:
Valuationdate ......................................................
Actuarial cost method ..........................................
Amortization method ...........................................
Remaining amortization period ...........................
Asset Valuation method .......................................
Actuarial assumptions:
Investment rate of return ...................................
Salary increases:
Inflation.........................................................
Merit, Longevity, etc .....................................
Mortality table ..................................................
Disability, turnover and retirements .................
October 1, 2001 (Revised)
Aggregate Cost Method (this method does not identify or
separately amortize unfunded actuarial liabilities)
Not applicable under Aggregate Cost Method
Not applicable under Aggregate Cost Method
Average of ratios of market book values as of current and
most recent September 30's. Average ratio is applied to
book value at current September 30. The result cannot
be greater than 120% or less than 80% of market value
7.75%
4.00%
5.1% to 0% reducing by attained age
Ga94 - Mortality table changed for current year
Pension Benefit Guaranty Corporation
("PBGC") Non-OASDI basis rate tables
October 1, 2000
Modified entry age normal
Level dollar amount, closed
N/A
3 year smoothed market value of assets
8.1%
6.0%
3.5%
4% per year with $54 per year minimum and
$400 per year maximum
December 31, 2001
Individual Aggregate Cost Method (does not identify or
separately amortize unfunded actuarial liabilities)
Not applicable under Individual Aggregate Cost Method
Not applicable under Individual Aggregate Cost Method
Market Value
6.0%
N/A
N/A
Ga94 - no pre -retirement mortality was assumed
No disability or turnover assumed. Retirement is assumed
at the end of the current term or 100% vested
61
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
B. Actuarially Determined Contribution
Requirements and Contributions Made
The funding policy for FIPO, GESE and EORT
provides for periodic employer contributions at
actuarially determined rates that, expressed as
percentages of annual covered payroll, are sufficient
to maintain the actuarial soundness of the plans and
to accumulate sufficient assets to pay benefits when
due.
Significant actuarial assumptions used to compute
the contribution requirements are described in the
funding policy above.
FIPO
Contributions are determined applying the
actuarially calculated aggregate cost method.
The actuarial valuation of the Trust at October 1,
2000, for the fiscal year ended September 30, 2001
utilized an assumed investment rate of return of
7.625%. This resulted in a minimum required
contribution of approximately $6,400,000. The City
disputed the aforementioned assumption and had
subjected it to arbitration. In compliance with the
Trust ordinance, the City had contributed
$5,400,784, the same amount as in the prior year,
which would satisfy the September 30, 2001
required contribution until the issue was resolved.
Contributions made to the trust pertaining to the
year ending September 30, 2002 was also
$5,400,784. The arbitration was subsequently
resolved and the revised actuary valuation reports at
October 1, 1999, 2000, 2001 were issued by the
62
Trust's actuary. The revised rate of return of 7.75%
resulted in an over funding of the City's annual
required contributions of $1,371,422 and
$4,907,022, for the fiscal years ended September
30, 2001 and 2002, respectively. Accordingly, a net
pension asset of $6,278,444 has been reported in the
government -wide Statement of Net Assets.
GESE
GESE contributions are determined using the entry
age normal cost method with frozen actuarial
accrued liability. Contributions toward the unfunded
actuarial accrued liability are based on a series of
increasing scheduled amortization payments
through the year 2007.
For the year ended September 30, 2002,
contributions totaling $2,499,618 ($2,090,701
GESE Trust and $408,917 Excess Benefit Plan) was
made in accordance with actuarially determined
contribution requirements, based on an actuarial
valuation performed as of October 1, 2001.
EORT
Contributions are determined applying the
actuarially calculated aggregate cost method.
For the year ended September 30, 2002,
contributions totaling $665,203 ($82,447 EORT
Trust Plan and $582,756 Excess Benefit Plan) was
made in accordance with actuarially determined
contribution requirements, based on an actuarial
valuation performed as of December 31, 2001.
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
C. Trend Information
Trend information indicates the progress made in accumulating sufficient assets to pay benefits when due. An
analysis of funding progress for the fiscal ended September 30, 2002 is a follows:
63
Net Pension
Year Ended
Annual Required
Percentage
Obligation
September 30,
Contribution
Contributed
(Asset)
FIPO 2002
$ 1,051,629
514%
$ (6,278,444)
2001
4,008,892
135
(1,371,422)
2000
5,400,784
100
-
1999
10,376,473
100
-
1998
14,155,472
100
-
1997
14,377,032
100
-
GESE 2002
$ 2,090,701
100%
$ -
2001
8,458,735
100
-
2000
8,216,415
100
-
1999
-
100
-
1998
12,617,377
100
-
1997
13,173,804_
100
-
EORT 2002
$ 82,447
100%
$ -
2001
220,837
236
270,902
2000
449,086
111
451,159
1999
233,038
-
309,384
1998
145,053
-
250,738
1997
188,979
100
-
63
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
D. Budget Advance From City
Certain administrative costs of the FIPO and GESE are paid directly by the Pension Trusts from budget advance
monies provided by the City. The Trusts provide the City with an accounting of how these funds are expended
during the period. Deficits are funded by the City. Any excess funding is applied towards the following year
together with the budget advance for that year. Funding for such administrative costs for the year ended
September 30, 2002 is as follows:
Funding provided by the City -current -year
Budget advance (deficit)- beginning of year
Administrative costs incurred, including
custodian and consultant's' fees,
personnel and other office expenses
Budget deficit - end of year
FIPO GESE
$ 279,887 $ 1,581,531
688,431 (856,455)
968,318 725,076
1,429,615 1,715,867
$ (461,297) $ (990,791)
Since the above administrative costs are fully funded by the City, they are not record in the administrative
expenses set forth in the fiduciary fund statements of changes in fiduciary net assets.
E. Retirement Systems Financial Statements
The FIFO and GESE Retirement Systems are audited separately. Complete financial statements can be obtained
at the following offices:
FIPO, 1895 SW 3rd Avenue, Miami, FL 33129
GESE, 1000 Brickell Ave., Suite 1010, Miami, FL 33131
EORT, does not issue stand-alone audited financial statements.
C�
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
F. Special Benefit Plans
Certain executive employees of the City are allowed
to join the ICMA Retirement Trust's 401(a) plan.
This defined contribution deferred compensation
plan, which covers governmental employees
throughout the country, is governed by a Board of
Directors responsible for carrying out the overall
management of the organization, including
investment administration and regulatory
compliance. Membership for City employees is
limited by the City Code to specific members of the
City Clerk, City Manager, and City Attorney's
offices, Department Directors, Assistant Directors,
and other executives. To participate in the plan a
written trust agreement must be executed, which
requires the City to contribute 8% of the individual's
earnable compensation, and the employee to
contribute 10% of their salary. Participants may
withdraw funds at retirement or upon : separation
based on a variety of payout options.
The following information relates to the City
participation in this plan:
Total current year's payroll for all employees $200,151,228
Current year's payroll
for participating employees $3,648,946
Current year employer contributions $329,450
In addition to coverage under the FIPO Pension Plan,
City of Miami fire fighters and police officers are
members of separate non-contributory money
purchase benefit plans established under the
provisions of Florida Statutes, Chapters 175 and 185,
respectively. These two plans are funded solely from
the proceeds of certain excise taxes levied by the
City and imposed upon property and casualty
insurance coverage within the City limits. This tax,
which is collected from insurers by the State of
Florida, is remitted directly to the plans' Boards of
Trustees. The. City is entitled to levy such excise
taxes solely for the use of the money purchase
benefit plans as long as the minimum benefit
provisions 'of Florida Statutes, Chapters 175 and 185
are met by FIPO. The City is currently under no
obligation to make further contributions to the plans.
The total of such excise taxes received from the State
65
of Florida and remitted to the plans was $8,423,302
for the year ended September 30, 2002. Benefits are
allocated to the participants based upon their service
during the year and the level of funding received
during said year. Participants are fully vested after
nine years of service. On termination of service, a
participant may elect one of three options: to receive
a lump sum payment, or five substantially equal
payments, or not less than 10% the first year and the
remainder any way over the next four years. The total
must be paid out within five years.
NOTE 9. - POST -EMPLOYMENT HEALTH
CARE BENEFITS
In addition to providing pension benefits, the City
offers to its retiree's comprehensive medical
coverage and life benefits through the City's self-
insured plan. This plan was established in
accordance with . Florida State Statute Section
112.0801 "Group Insurance: Participation by Retired
Employees". Substantially all of the City's general
employees and firefighters may become eligible for
those benefits when they reach normal retirement age
while working for the City (approximately 1,200 of
the 5,500 covered participants are retirees). The
City's cost of the post -employment health benefits,
funded on a pay-as-you-go basis, was approximately
$10,644,000 for the year September 30, 2002.
NOTE 10. - SUMMARY DISCLOSURE OF
SIGNIFICANT CONTINGENCIES
A. Litigation
The City is subject to various disputes, legal
proceedings and labor relations claims, which arise
in the normal course of its operations. In the opinion
of management, the liability with respect to these
activities will not be material to the City's financial
position.
On July 11, 2001, the Third District Court of
Appeals ruled that the parking surcharge statute was
unconstitutional. The City has appealed the ruling to
the Florida Supreme Court who has upheld the ruling
of the lower court. The legislature has approved a
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
bill that has been signed by the Governor that
amends the parking surcharge statute and eliminates
the constitutional problem that the court found. This
bill became law on November 30, 2001. A tentative
settlement has been reached in this action that calls
for a refund of amounts paid by users of parking
services in Miami. The settlement amount totaled
$14 million and is recorded as a liability in the
accompanying government -wide Statement of Net
Assets and governmental fund Balance Sheet.
At September 30, 2002, the City had in process
various uncompleted construction projects with
remaining balances totaling $4,583,198. Funding of
these projects is to be made primarily through the
proceeds of the related bond issues, loans and future
taxes.
The City participates in a number of Federally and
State assisted programs. These programs are subject
to audit under the requirements of the Single Audit
Act Amendments of 1996 and Chapter 10.650, Rules
of the Auditor General.
The City anticipates no material adverse findings.
66
Resources (inflows):
Property Taxes
Franchise Fees and Other Taxes
Licenses and Permits
Fmes and Forfeitures
Intergovernmental Revenues
Charges for Services
Interest
Other
Transfer from Other Funds
Amounts Available for Appropriation
Charges To Appropriations (outflows):
General Government
Planning and Development
Public Works
Public Safety
Public Facilities
Parks and Recreation
Transfer to Other Funds
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
General Fund
For The Year Ended September 30, 2002
Budgeted Amounts Actual Amounts
Original Final (Budgetary Basis)
$ 129,809,928
13,653,507
18,627,732
3,717,600
33,975,416
67,523,878
9,271,000
3,573,024
41,176,695
321,328,780
74,974,094
8,605,144
47,382,943
158,758,937
5,477,606
11,562,269
14,567,787
321,328,780
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
$ 130,108,586
15,828,507
19,232,390
3,622,942
33,975,416
78,113,840
9,271,000
10,869,774
41,176,695
342,199,150
75,167,973
8,653,212
49,449,505
164,821,876
5,701,881
11,643,887
26,760,816
342,199,150
The accompanying notes are an integral part of the required supplementary information.
67
$ 130,375,831
15,775,689
21,375,993
4,051,483
42,322,189
93,708,913
10,102,103
5,371,152
47,366,515
370,449,868
84,504,968
8,002,111
46,383,206
169,737,145
5,107,507
11,105,119
24,553,971
349,394,027
Variance with
Final Budget
Positive (Negative)
$ 267,245
(52,818)
2,143,603
428,541
8,346,773
15,595,073
831,103
(5,498,622)
6,189,820
28,250,718
(9,336,995)
651,101
3,066,299
(4,915,269)
594,374
538,768
2,206,845
(7,194,877)
$ 21,055,841 $ 21,055,841
$
370,449,868
(47,366,515) _
$
323,083,353
$
349,394,027
(1,798,169)
(24,553,971)
$
323,041,887
Resources (inflows):
Intergovernmental Revenues
Charges for Services
Interest
Other
Transfer from Other Funds
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Community Development
Transfer to Other Funds
Total Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
Community Development
For The Year Ended September 30, 2002
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
$ 46,331,828 $ 67,325,850 $ 40,414,838 $ (26,911,012)
- - 8,777,658 8,777,658
- 359,707 359,707
5,407,467 2,016,919 (3,390,548)
- - 1,248,229 1,248,229
46,331,828 72,733,317 52,817,351 (19,915,966)
44,545,842 70,947,331 47,497,163 23,450,168
1,785,986 1,785,986 3,104,154 (1,318,168)
46,331,828 72,733,317 50,601,317 22,132,000
Excess (Deficiency) of Resources Over
Charges to Appropriations $�- $ 2,216,034 $ 2,216,034
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is repotted
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial repotting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
The accompanying notes are an integral part of the required supplementary information.
68
$ 52,817,351
(1,248,229)
$ 51,569,122
$ 50,601,317
(3,104,154)
$ 47,497,163
City of Wmmi, Florida
Budgetary Comparison Schedule
Public Services Tax
For The Year Ended September 30, 2002
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 57,314,720
Differences - budget to GAAP:
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. -
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 57,314,720
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 48,800,845
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. _
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (48,800,845)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ _
The accompanying notes are an integral part of the required supplementary information.
69
Variance with
Budgeted Amounts
Actual Amounts
Final Budget
Original
Final
(Budgetary Basis)
Positive (Negative)
Resources (inflows):
Franchise Fees and Other Taxes
$ 42,717,373
$ 50,717,373
$ 57,314,720
$ 6,597,347
Amounts Available for Appropriation
42,717,373
50,717,373
57,314,720
6,597,347
Charges To Appropriations (outflows):
Transfer to Other Funds
42,717,373
50,717,373
48,800,845
1,916,528
Total Charges to Appropriations
42,717,373
50,717,373
48,800,845
1,916,528
Excess (Deficiency) of Resources Over
Charges to Appropriations
$ -
$ -
$ 8,513,875
$ 8,513,875
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 57,314,720
Differences - budget to GAAP:
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. -
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 57,314,720
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 48,800,845
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. _
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (48,800,845)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ _
The accompanying notes are an integral part of the required supplementary information.
69
CITY OF MIAAH, FLORIDA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2002
NOTE 1. - BUDGETARY POLICY - Prior to October 1St, the budget is legally
enacted through the passage of an ordinance
A. BUDGET POLICY and adoption of the budget report.
The City Commission annually adopts an
operating budget ordinance for all
Governmental Funds of the City, except for the
Financial Emergency Oversight Board Special
Revenue Fund and Capital Projects Funds.
Capital Project Funds are budgeted on a total
project basis for which annual budgets are not
available.
For governmental funds, budgets are prepared
using the modified accrual method. For the
proprietary fund, the budget is prepared on a
basis consistent with accounting .principles
generally accepted in the United States of
America based upon estimates of revenue and
expenses for the upcoming fiscal year.
B. BUDGET -LEGAL COMPLIANCE
The City follows these procedures in establishing
the budgetary data reflected in the accompanying
financial statements:
- Prior to August 31 St, the City Manager submits
to the City Commission a proposed operating
budget by fund, except for the General Fund
which is at the departmental level, for the
fiscal year commencing the upcoming October
1St. The operating budget includes proposed
expenditures and the means of financing them.
- The Mayor shall prepare and deliver a
budgetary address annually to the people of
the City between July 1' and September 30ffi.
Such report shall be prepared after
consultation with the City Manager.
Public hearings are conducted to obtain
taxpayer comments.
70
- Management may not make changes to the
adopted budget without the approval of a
majority vote of the Commission.
- The Commission may transfer among
departments any part of an unencumbered
balance of an appropriation to a purpose for
which an appropriation for the current year has
proved insufficient. At the close of each fiscal
year, the unencumbered balance of each
appropriation reverts to the fund from which it
was appropriated and is subject to future
appropriations.
- Budgets are monitored at varying levels of
classification detail, however, budgetary
control is legally maintained at the fund level
except for the General Fund, which is
maintained at the departmental level.
All budget amendments require City Commission
approval. During Fiscal 2002, supplemental
appropriations totaling $20,870,370, $26,401,489,
and $8,000,000 in the General Fund, Community
Development, and Public Services Tax,
respectively were required to recognize
unanticipated revenue including the award of
federal and state grants and to provide funding for
unanticipated program requirements.
C. EXCESS OF EXPENDITURES OVER
APPROPRIATIONS IN INDIVIDUAL
FUNDS
During 2002, general fund expenditures exceeded
appropriations in the general government and
public safety functions in the amount of
$9,336,995 and $4,915,269, respectively. These
expenditures were as a result of unanticipated
expenditures that were not budgeted for. These
over expenditures for all funds were funded by
available fund balances.
City of Miami, Florida
Pension Trust Funds
Schedule of Funding Progress (a)
(Dollar Amounts In Thousands)
GESE(c):
10/01/01
597,100
579,400
(17,700)
103
66,700
Unfunded
10/01/00
594,800
577,700
(17,100)
103
63,800
(Overfunded)
10/01/99
539,000
(2)
32,100
94
59,100
as a
10/01/98
(1)
Actuarial
Unfunded
Funded
(3)
Percentage of
Actuarial
Actuarial
Accrued
(Overfunded)
Ratio
Covered
Covered
Valuation
Value of
Liability
AAL
(1)/(2)
Payroll
Payroll
Date
Assets
(AAL)
(2)-(l)
FIPO(b):
10/01/01
$ 828,900
$ 884,700
$ 55,800
94 %
$ 89,700
62 %
10/01/00
994,600
823,100
(171,500)
121
84,300
(203)
10/01/99
932,800
820,200
(112,600)
114
77,700
(145)
10/01/98
857,700
774,500
(83,200)
111
74,300
(112)
10/01/97
835,300
702,100
= _ (133,200)
119
69,600
(191)
10/01/96
674,700
620,700
(54,000).
109
72,900
(74)
GESE(c):
10/01/01
597,100
579,400
(17,700)
103
66,700
(27)
10/01/00
594,800
577,700
(17,100)
103
63,800
(27)
10/01/99
539,000
571,100
32,100
94
59,100
54
10/01/98
522,900
557,300
34,400
94
55,100
62
10/01/97
505,400
471,100
(34,300)
107
52,000
(66)
10/01/96
383,400
522,800
139,400
73
53,300
262
EORT(d):
10/01/01
1,148
1,419
271
81
228
119
10/01/00
657
1,108
451
59
249
181
10/01/99
652
962
310
68
300
103
10/01/98
509
760
251
67
164
153
10/01/97
230
628
398
37
124
321
10/01/96
180
315
135
57
64
211
a. For information regarding pension contribution percentage rates, assumptions, amortization,
method, See Note 10).
b. Aggregated Cost Method
c. Entry Age Normal Actuarial Accrued Liability
d. Individual Aggregated Cost Method
71
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72
Nonmajor Governmental Funds
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for special revenues that are
legally restricted to expenditures for particular purposes.
Community Redevelopment Agency (ORA) - To account for revenues
and expenditures to be used for general operations in the defined
Community Redevelopment Area.
Community Redevelopment Agency (SEOPW) - To account for
revenues and expenditures to be used for special operations in the defined
Community Redevelopment Area.
Convention Center - To account for the operations of the City of Miami/
University of Miami James L. Knight International Center and Parking
Garage.
Economic Development & Planning Services - To account for the
operations of the Economic Development & Planning Services.
Rescue Services - To account for the proceeds of an excise tax that is
restricted to expenditures which supplement the City's emergency Fire
Rescue Operations.
Net Offices - To account for the operations of the City of Miami's
Neighborhood Enhancement Teams (Net Offices).
Parks & Recreation Services - To account for the operations of the Parks
& Recreation Services.
Police Services - To account for the proceeds of various grants from
Local, State, and Federal Agencies.
73
Nonmajor Governmental Funds (continued)
SPECIAL REVENUE FUNDS
Law Enforcement Fund - To account for confiscated monies awarded to
the City for law enforcement related expenditures as stipulated by State
Statutes.
Public Works - To account for the proceeds granted from Local and State
Agencies.
City Clerk Services - To account for the operations of the Passport
Facility, Municipal Archives & Records, and related Program.
Local Gas Option Gas Tax - To account for the local option gas tax
levied on the purchases of gasoline.
Stormwater Utility Fund — To account for all the fees and charges
collected for the operation and maintenance of the stormwater
management system and the funding of pollution abatement devices of
said system.
Gusman and Olympia - To account for the activities of the Gusman and
Olympia Facilities.
74
x'
;� Wa
Nonmajor Governmental Funds (continued)
DEBT SERVICE
Debt Service Funds are used to account for the accumulation of resources,
payment of general obligation bond principal, interest from government
resources, special obligation bond principal and interest from pledged
revenues when the government is obligated in some manner for the
payment.
General Obligation Bonds - To account for monies for payment of
principal, interest, and other costs related to various issues of long-term
general obligation bonds. Debt Service is financed primarily by an ad
valorem tax.
Other Special Obligation Bonds - To account for monies for payment of
principal, interest, and other costs related to various special bonds and
loans. -_
CRA Other Special Obligation Bonds - To account for monies for
payment of principal, interest, and other costs related to various special
bonds and loans.
75
Nonmajor Governmental Funds (continued)
CAPITAL PROJECT FUNDS
Capital Projects Funds are used to account for the acquisition and
construction of major capital facilities.
Community Redevelopment Agency - To account for the acquisition or
construction of major capital facilities for community redevelopment in the
defined Community Redevelopment Area.
Public Safety - To account for the acquisition or construction of major
capital facilities that support the City of Miami's Police and Fire operations.
Street and Sidewalks -; To account for expenditures made for street,
sidewalks, and other traffic related projects.
Sanitary Sewers - To account for expenditures for the construction of
sanitary sewers.
Storm Sewers - To account for expenditures for the construction of storm
sewers.
Solid Waste - To account for the acquisition of equipment or facility
maintenance associated with the collection and removal of solid waste.
Public Facilities - To account for the acquisition or construction of major
capital facilities for public use such as marinas and stadiums.
Parks and Recreation - To account for the acquisition, rehabilitation, or
construction of major capital facilities for cultural and recreational activities
such parks, elderly and youth day care centers.
Disaster Recovery - To account for revenue received from the Federal
Emergency Management Agency, insurance and other agencies as
reimbursements for citywide disasters in the areas of debris removal,
roads and bridges, buildings and equipment, parks, marinas, stadiums and
other measures of relief.
76
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ue2OF AM
is so qe
d�,cQ�4ti
77
Assets
Cash, Cash Equivalents and Investments
Restricted Cash and Investments
Receivables
(Net of Allowances for Uncollectibles):
Accounts
Taxes
Special Assessments
Due From Other Funds
Due From Other Governments
Accrued Interest
Prepaid and Other Assets
Total Assets
Liabilities and Fund Balances
Liabilities:
Accounts Payable
Accrued Liabilities
Accrued Principal
Due to Other Funds
Due to Other Governments
Deferred Revenue
Deposits
Total Liabilities
Fund Balances:
Reserved for:
Encumbrances
Debt Service
Law Enforcement
Prepaid Items
Unreserved, reported in:
Special Revenue Funds
Capital Projects Funds
Total Fund Balances
Total Liabilities and Fund Balances
City of Miami, Florida
Combinning Balance Sheet
Other Governmental Funds
September 30, 2002
Special Revenue Funds
Economic
Development
Convention & Planning Fire Rescue
Omni CRA SEPOW CRA Center Services Services
$ 1,110,919 $ 3,621,788 $ 393,539 $ 5,018,488 $ 2,739,639
- - 443,189 - -
125,000
- 197,847 - 79,836
2,111 49,833 - 19,270
$ 1,113,030 $ 3,869,468 $ 836,728 $ 5,242,594
$ 106,223 $ 564,286 $ 12,290 $ 20,825
2,550 61,301 8,568 -
554,148 - -
- - - 320,147
108,773 1,179,735 20,858 340,972
422
15,347
$ 2,755,408
$ 223,699
87,118
901,205
1,212,022
3,371 35,040 65,502
1,004,257 2,689,733 812,499 4,866,522 1,477,884
1,004,257 2,689,733 815,870 4,901,E 3 1,543,386
$ 1,113,030 $ 3,869,468 $ 836,728 $ 5,242,514 $ 2,755,408
78
79
Parks &
Law
Local
Net
Recreation
Police
Enforcement
Public Works
City Clerk
Option
Offices
Services
Services
Trust Fund
Services
Services
Gas Tax
$ 149,189
$ 1,667,583
$
6,043,505
$ 7,121,983
$
1,185,304
$ 161,050
$
39,964
-
22,702
20,630
-
-
-
625,785
-
-
-
1,390,489
-
-
-
-
179,383
862,633
-
-
-
-
99
4,597
25,852
113,108
13,341
-
-
-
5,669
-
-
_
_
_
$ 149,288
$ 1,879,934
$
6,952,620
$ 8,625,580
$
1,198,645
$ 161,050
$
665,749
$ 53,808
$ 80,789
$
360,995
$ 245,914
$
-
$ 70
$
-
91,431
21,207
104,706
14,058
-
2,461
-
-
1,335
-
-
830
7,200
-
112,413
-
-
-
146,069
110,531
465,701
372,385
-
2,531
-
97,522
493,330
362,508
706,251
-
-
-
-
-
-
7,546,944
-
-
-
-
5,669
-
-
-
-
-
(94,303)
1,270,404
6,124,411
-
1,198,645
158,519
665,749
3,219
1,769,403
6,486,919
8,253,195
1,198,645
158,519
665,749
$ 149,288
$$ 1,879,934$$
6�20
$ 8,625,580
$
1,198,645
$ 161,050
$
665,749
(continued)
79
City of Miami, Florida
Combining Balance Sheet
Other Governmental Funds
September 30, 2002
Liabilities and Fund Balances
Gusman
Stormwater
and
Accrued Liabilities
Utility
Olympia
Assets
Due to Other Funds
985,716 -
Cash and Cash Equivalents
$ -
$ 55,259
Cash and Investments with Fiscal Agents
-
-
Receivables
1,010,716 3,234,303
Total Liabilities and Fund Balances
(Net of Allowances for Uncollectibles):
Accounts
108,841
3,045,101
Taxes
-
-
Special Assessments
-
-
Due From Other Funds
-
-
Due From Other Governments
1,512,690
-
Accrued Interest
-
-
Prepaid and Other Assets
-
6,547
Total Assets
$ 1,621,531
$$ 3,106,907
Liabilities and Fund Balances
Liabilities:
Accounts Payable
$ - $ 1,469,800
Accrued Liabilities
25,000 -
Accrued Principal
- -
Due to Other Funds
985,716 -
Due to Other Governments
- 1,695,855
Deposits
- -
Deferred Revenue
- 68.648
Total Liabilities
1,010,716 3,234,303
Fund Balances:
Reserved for:
Encumbrances
- -
Debt Service
- -
Law Enforcement
- -
Prepaid Items
- 6,547
Unreserved, reported in:
Special Revenue Funds
610,815 (133,943)
Capital Projects Funds
- -
Total Fund Balances
610,815 (127,396)
Total Liabilities and Fund Balances
$ 1, 21� 11 $ 3,106,907
80
- - - - - 30
783,798 - - - _ -
- 29,704 74,366 238,348
$ 5,140,714 $ 13,627,446 $ 1,463,617 $ 2,594,078 $ 19,724,505 $ 42,304,709
$ 264,739 $ - $ - $ - $ 289,668 $ 178,907
- - - - 30,568 101,549
404,773 - - -
- - - - 290,279 -
708,798 - - - - _
- - - 1,356 75,054 -
973,537 (0) 404,773 1,356 685,569 280,456
1,668 - - - 2,526,672 569,941
4,165,509 13,627,446 1,058,844 - - -
- - - 2,592,722 16,512,264 41,454,312
4,167,177 13,627,446 1,058,844 2,592,722 19,038,936 42,024,253
$ 514 $ 13,627,446 $ 1,463,617 $ 2,594,078 $ 19,724,505 $ 42,304,709
(continued)
81
Debt Service Funds
Capital Projects Funds
General
Other Special
CRA Community
Obligation
Obligation
Other Special Redevelopment Street &
Bonds
Bonds
Obligation Agency Public Safety Sidewalks
$ 622,806
$ 1,896,108
$ - $ 2,564,374 $ 19,650,139 $ 42,066,331
3,734,110
11,731,338
1,463,617 - - -
- - - - - 30
783,798 - - - _ -
- 29,704 74,366 238,348
$ 5,140,714 $ 13,627,446 $ 1,463,617 $ 2,594,078 $ 19,724,505 $ 42,304,709
$ 264,739 $ - $ - $ - $ 289,668 $ 178,907
- - - - 30,568 101,549
404,773 - - -
- - - - 290,279 -
708,798 - - - - _
- - - 1,356 75,054 -
973,537 (0) 404,773 1,356 685,569 280,456
1,668 - - - 2,526,672 569,941
4,165,509 13,627,446 1,058,844 - - -
- - - 2,592,722 16,512,264 41,454,312
4,167,177 13,627,446 1,058,844 2,592,722 19,038,936 42,024,253
$ 514 $ 13,627,446 $ 1,463,617 $ 2,594,078 $ 19,724,505 $ 42,304,709
(continued)
81
City of Miami, Florida
Combining Balance Sheet
Other Governmental Funds
September 30, 2002
Capital Projects Funds
Liabilities and Fund Balances
Liabilities:
Accounts Payable $ 79,709 $ 785,203 $ 57,498 $ 407,609 $ 765,536
Accrued Liabilities 134,180 203,236 - 114,343 692,926
Accrued Principal - - - - -
Due to Other Funds - - -
Due to Other Governments 12,000 92,390 - - -
Deposits - - 257,168
Deferred Revenue - - - -
Total Liabilities 225,889 1,080,829 314,666 521,952 1,458,462
Fund Balances:
Sanitary
Storm
Solid
Public
Parks &
Reserved for:
Encumbrances
Sewers
Sewers
Waste
Facilities
Recreation
Assets
-
-
-
Cash and Cash Equivalents
$ 25,135,666
$ 30,049,354
$ 2,361,203
$ 22,528,616
$ 39,397,232
Cash and Investments with Fiscal Agents
-
-
-
783,106
249,782
Receivables
(Net of Allowances for Uncollectibles):
-
24,538,968
-
26,842,262
-
(734,337)
21,895,851
35,734,710
Accounts
-
-
-
146,014
-
Taxes
-
-
-
-
-
Special Assessments
-
-
257,168
-
-
Due From Other Governments
-
-
-
-
415,865
Accrued Interest
304,111
132,044
-
119,387
254,724
Prepaid and Other Assets
-
-
-
-
51,960
Total Assets
$ 25439,777
$ 30,181,398
7 2,61-8,371
$ 23,577,123
$ 40,369,563
Liabilities and Fund Balances
Liabilities:
Accounts Payable $ 79,709 $ 785,203 $ 57,498 $ 407,609 $ 765,536
Accrued Liabilities 134,180 203,236 - 114,343 692,926
Accrued Principal - - - - -
Due to Other Funds - - -
Due to Other Governments 12,000 92,390 - - -
Deposits - - 257,168
Deferred Revenue - - - -
Total Liabilities 225,889 1,080,829 314,666 521,952 1,458,462
Fund Balances:
Reserved for:
Encumbrances
674,920
2,258,307
3,038,042
1,159,320
3,124,431
Debt Service
-
-
-
Law Enforcement
-
-
-
-
-
-
51,960
Prepaid Items
-
-
Unreserved, reported in:
Special Revenue Funds
Capital Projects Funds
-
24,538,968
-
26,842,262
-
(734,337)
21,895,851
35,734,710
Total Fund Balances
25,213,888
29,100,569
2,303,705
23,055,171
38,911,101
Total Liabilities and Fund Balances
$ 25,439,777
$ 30,181,398
$$ 2,618,371
$$ 23,577,123
$ 40,369,563
82
Total
Other
Disaster Governmental
Recovery Funds
$ 583,410 $ 216,163,449
- 18,405,142
- 4,094,525
- 783,798
- 257,168
- 1,390,489
- 3,248,254
- 1,396,242
- 64,176
$ 583,410 $ 245,803,243
$ - $ 5,967,568
17,331 1,712,533
- 1,390,489
- 2,090,524
- 2,422,654
- 585,648
17,331 14,169,416
1,453,268 16,570,093
- 18,851,799
- 7,546,944
- 64,176
20,651,252
(887,189) 167,949,563
566,079 231,633,827
$ 583,410 $ 245,803,243
83
Expenditures
Current Operating:
General Government
Planning and Development - - 699,452
Community Redevelopment Areas 1,662,346 4,393,500 -
Public Works _ _
Public Safety - 1,121,760
Public Facilities 2,854,550 _
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges
Capital Outlay _ _
Total Expenditures 1,662,346 4,393,500 2,854,550 699,452 1,121,760
Excess (Deficiency) of Revenues
Over (Under) Expenditures (13,056) (171,314) 2,730,159 167,088 4,212,018
Other Financing Sources (Uses)
City of Miami, Florida
Combining Statement of Revenue, Expenditures, and Changes In Fund Balances
Transfers From Other Funds
531,736
235,902
Other Governmental Funds
2,074,000
438,516
Transfers To Other Funds
-
For The Year Ended September 30, 2002
(4,204,178)
-
(4,157,183)
Proceeds Received From Refunded Debt
_ Special Revenue Funds
Payments To Escrow Agent
Economic
Development
Convention
& Planing
Fire Rescue
531,736
Omni CRA SEPOW CRA
Center
Services
Services
Revenues
518,680
64,588
291,322
2,241,088
Property Taxa
$ 1,634,449 $ 1,388,517
$
$
$
Franchise Fees and Other Taxes
- _
Fund Balances - Ending
$,� $�®3
Fines and Forfeitures
4,901,622
$ 1,543,386
Intergovernmental Revenues
-
1,001,576
345,639
1,026,930
Charges for Services
- 451,744
3,869,263
468,598
4,272,183
Interest
14,841 168,138
52,173
52,303
34,665
Impact Fees
- -
-
-
Other
- 2,213,787
661,697
-
_
Total Revenues
1,649,290 4,222,186
5,584,709
866,540
5,333,778
Expenditures
Current Operating:
General Government
Planning and Development - - 699,452
Community Redevelopment Areas 1,662,346 4,393,500 -
Public Works _ _
Public Safety - 1,121,760
Public Facilities 2,854,550 _
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges
Capital Outlay _ _
Total Expenditures 1,662,346 4,393,500 2,854,550 699,452 1,121,760
Excess (Deficiency) of Revenues
Over (Under) Expenditures (13,056) (171,314) 2,730,159 167,088 4,212,018
Other Financing Sources (Uses)
Transfers From Other Funds
531,736
235,902
1,765,341
2,074,000
438,516
Transfers To Other Funds
-
-
(4,204,178)
-
(4,157,183)
Proceeds Received From Refunded Debt
Payments To Escrow Agent
Proceeds of Long -Term Capital -Related Debt
_
Total Other Financing Sources (Uses)
531,736
235,902
(2,438,837)
2,074,000
(3,718,667)
Net Changes in Fund Balances
518,680
64,588
291,322
2,241,088
493,351
Fund Balances - Beginning
485,577
2,625,145
524,548
2,660,534
1,050,035
Fund Balances - Ending
$,� $�®3
$$ 815,870 $
4,901,622
$ 1,543,386
84
85
Special
Revenue Funds
Parks &
Law
Local
Net
Recreation
Police
Enforcement
Public Works
City Clerk
Option
011klces
Services
Services
Trust Fund
Services
Services
Gas Tax
-
3,822,125
-
973,350
16,473,935
-
10,425
-
7,336,917
-
477,673
117,118
21,174
-
118,997
-
500
21,353
113,776
439,533
45,432
-
50
4,500
48,612
550
1,476,876
16,704,829
4,282,832
104,469
118,997
7,336,917
4,130,014
-
-
-
-
135,355
-
-
6,423,658
4,547,056
-
1,827,251
4,547,056
4,130,014
1,827,251
6,423,658
135 355
(4,129,464)
(350,375)
10,281,171
(264,224)
104,469
(16,358)
7,336,917
3,925,688
805,640
1,735,351
-
_
-
(101,270)
-
(6,402,043)
(1,000,000)
-
(7,100,000)
(11000,000)
(7,100,000)
3,824,418
805,640
(4,666.692)
-
-
(305,046)
455,265
5,614,479
(1,264,224)
104,469
(16,358)
236,917
308,265
1,314,138
872,440
9517,419
1,094,176
174,877
428,832
3,219
S 1,769,403
$ 6®,919
$ 8,253.195
$ 1,198,645
$ 158,519
$ 665,749
(continued)
85
City of Miami, Florida
Combmning Statement of Revenue, Expenditures, and Changes In Fund Balances
Other Governmental Funds
For The Year Ended September 30, 2002
Expenditures
Current Operating:
General Government 3,176,606
Planning and Development -
Community Redevelopment Areas
Public Works 25,000
Public Safety _
Public Facilities
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges
Capital Outlay
Total Expenditures 25,000 3,176,606
Excess (Deficiency) of Revenues
Over (Under) Expenditures 9,305,383 (439,479)
Other Financing Sources (Uses)
Transfers From Other Funds
-
Gusman
Transfers To Other Funds
Stormwater
and
Proceeds Received From Refunded Debt
Utility
Olympia
Revenues
Property Taxes
$ -
$
Franchise Fees and Other Taxes
9,330,383
153,599
Fines and Forfeitures
_
(285,880)
Intergovernmental Revenues
242,674
2,170,253
Charges for Services
$ 610,815
527,244
Interest
Impact Fees
-
Other
39,630
Total Revenues
9,330,383
2,737,127
Expenditures
Current Operating:
General Government 3,176,606
Planning and Development -
Community Redevelopment Areas
Public Works 25,000
Public Safety _
Public Facilities
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges
Capital Outlay
Total Expenditures 25,000 3,176,606
Excess (Deficiency) of Revenues
Over (Under) Expenditures 9,305,383 (439,479)
Other Financing Sources (Uses)
Transfers From Other Funds
-
153,599
Transfers To Other Funds
(8,937,242)
-
Proceeds Received From Refunded Debt
Payments To Escrow Agent
Proceeds of Long -Term Capital -Related Debt
Total Other Financing Sources (Uses)
(8,937,242)
153,599
Net Changes in Fund Balances
368,141
(285,880)
Fund Balances - Beginning
242,674
158,484
Fund Balances - Ending
$ 610,815
$ (127,396)
86
11,635,000
Debt Service Fonds
315,000
Capital Projects Funds
General
Other Spatial
CRA
Community
obligation
obligation
other Spatial
Redevelopment
Street &
Bonds
Bomis
obligation
Agency Public Safety
Sidewalks
$ 18,009,638
$
$ 57,675 $
$
$
-
612,351
300,000
102,013
594,428
(951,431)
98,763
8,480
102,013 80,466
482,820
-
-
-
- -
2,518,983
110,626
247,271
(1,811,957)
-
-
18,120,264
958,385
366,155
102,013 80,466
3,596,231
11,635,000
11,123,400
315,000
6,653,236
12,266,242
417,125
_
_
4,769,350
4,547,662
18,288,236
23,389,642
732,125
4,769,350
4,547,662
(167,972)
(22,431,257)
(365,970)
102,013
(4,688,884)
(951,431)
20,088,510
610,788
117,296
9,434,689
5,141,673
-
(1,811,957)
-
-
(2,668,881)
(5,890,361)
32,510,000
41,065,000
_
(31,970,000)
(38,010,000)
_
_
-
11,500,000
24,600,000
540,000
21,331,553
610,788
117,296
18,265,808
23,851,312
372,028
(1,099,704)
244,818
219,309
13,576,924
22,899,881
3,795,149
14,727,150
814,026
2,373,413
5,462,012
19,124,372
$ 4167®177 $
13,627,446 $
1,058,844 $
2,592,722 $
19,038,936
$ 42��
(—tinued)
87
City of Miami, Florida
Combuoung Statement of Revenue, Expenditures, and Changes In Fund Balances
Other Governmental Funds
For The Year Ended September 30, 2002
Capital Projects Funds
Expenditures
Current Operating:
General Government
Planning and Development
Community Redevelopment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges - -
Capital Outlay 1,779,918 ; 4,195545 4,319,422 3,443,803 8,102,014
Total Expenditures 1,779,918 4,195545 4,319,422 3,443,803 8,102,014
Excess (Deficiency) of Revenues
Over(Under)Expenditures (716,829) (3,888,765) (4,177,890) (3,005,233) (1,835,124)
Other Financing Sources (Uses)
Sanitary Storm
Solid
Public
Parks &
Sewers Sewers
Waste
Facilities
Recreation
Revenues
5,591,167
Transfers To Other Funds
(2,286,655)
(3,617,551)
Property Taxes
$ $
$
$
$
Franchise Fees and Other Taxes
Payments To Escrow Agent
Fines and Forfeitures
-
Intergovernmental Revenues
10,000,000
36,983
5,408,927
Charges for Services
Total Other Financing Sources (Uses)
(704,131)
-
-
Interest
1,063,089 306,780
17,867
152,329
271,616
Impact Fees
- -
-
-
-
Other
2,756,492
123,665
249,258
586,347
Total Revenues
1,063,089 306,780
141,532
438,570
6,266,890
Expenditures
Current Operating:
General Government
Planning and Development
Community Redevelopment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges - -
Capital Outlay 1,779,918 ; 4,195545 4,319,422 3,443,803 8,102,014
Total Expenditures 1,779,918 4,195545 4,319,422 3,443,803 8,102,014
Excess (Deficiency) of Revenues
Over(Under)Expenditures (716,829) (3,888,765) (4,177,890) (3,005,233) (1,835,124)
Other Financing Sources (Uses)
Transfers From Other Funds
1582,524
6,954,950
4,343529
2,551,001
5,591,167
Transfers To Other Funds
(2,286,655)
(3,617,551)
(618,426)
-
(5,045,333)
Proceeds Received From Refunded Debt
Payments To Escrow Agent
-
Proceeds of Long -Term Capital -Related Debt
10,000,000
-
19,450,000
42,000,000
Total Other Financing Sources (Uses)
(704,131)
13,337,399
3,725,103
22,001,001
42545,834
Net Changes in Fund Balances
(1,420,960)
9,448,634
(452,787)
18,995,768
40,710,710
Fund Balances - Beginning
26,634,848
19,651,935
2,756,492
4,059,403
(1,799,609)
Fund Balances - Ending
$ 25,213,888
$ 29,100569
$ 2,303,705
$ 23,055,171
$ 38,911,101
88
Disaster
Recovery
Total
Other
Governmental
Funds
$ $ 21,090,279
9,330,383
3,822,125
171,853 36,463,567
- 10,323,994
3,526,937
- 2,518,983
146,090 4,431,533
317,943 91,507,801
7,441,975
699,452
- 6,055,846
- 25,000
- 12,092,474
- 2,854,550
- 1,827,251
23,073,400
- 19,336,603
072,914 32,530,638
072,924 105,937,189
(1,054,981) (14,429,388)
250,000 68,331,900
- (53,841,080)
- 73,575,000
- (69,980,000)
- 107,550,000
250,000 125,635,820
(804,981) 111,206,432
1,371,060 120,427,395
$ 566,079 $ 231,633,827
89
This page intentionally left blank
.c
FIDUCIARY FUNDS
Fiduciary Funds are used to account for assets held by the City in a trustee
capacity.
FIDUCIARY FUNDS
General Employees' and Sanitation Employees' (GESE) and
Firefighters' and Police Officers' (FIFO) — Both funds are used to
account for the accumulation of resources to be used for retirement
benefits to City employees. Resources are contributed by employees at
rates fixed by law and by the City at amounts determined by annual
actuarial valuations.
City of Miami Elected Officers' Retirement Trust (FORT) — Funds
are used to account for the accumulation of resources to be used for
retirement benefits to elected officials. Resources are contributed by the
City of amount determined by annual actuarial valuations.
91
City of Miami, Florida
Combining Statement of Fiduciary Net Assets
Fiduciary Funds
As of September 30, 2002
92
Employee Retirement Funds
Totals
Elected Officer's
Employee
Firefighter and
General and
Retirement Trust
Retirement
Police (FIPO)
Sanitation (GESE)
(FORT)
Funds
Assets
Cash and Short -Term Investments
$ 51,480,876
$ 369,316
$ 175
$ 51,850,367
Accounts Receivable
20,519,487
20,566,388
-
41,085,875
Capital Assets
2,175,109
1,229,686
-
3,404,795
74,175,472
22,165,390
175
96,341,037
Investments, at fair value
U.S Government Obligations
264,501,994
56,735,486
1,378,373
322,615,853
Corporate Bonds
127,341,486
84,655,467
-
211,996,953
Corporate Stocks
463,514,996
290,953,248
-
754,468,244
Money Market Funds and Commerical Paper
5,596,093
15,118,891
327,493
21,042,477
Mutual Funds
49,429,740
-
-
49,429,740
Real Estate
70,202
29,061,148
-
29,131,350
Total Investments
910,454,511
476,524,240
1,705,866
1,388,684,617
Securities Lending Collateral
97,268,223
-
-
97;268,223
Total Assets
1,081,898,206
498,689,630
1,706,041
1,582,293,877
Liabilities
Obligations Under Security Lending
97,268,223
-
-
97,268,223
Accounts Payable
121,464
739,592
-
861,056
Accrued Liabilities
5,596,093
-
-
5,596,093
Payable for securities purchased
51,611,275
29,957,619
-
81,568,894
Total Liabilities
154,597,055
30,697,211
-
185,294,266
Net Assets
Held in Trust for Pension Benefits
and Other Purposes
$ 927,301,151
$ 467,992,419
$ 1,706,041
$ 1,396,999,611
92
City of Miami, Florida
Combining Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30, 2002
Additions (Reductions)
Contributions:
Employer
Plan Members
Total Contributions
Investment Earnings (Losses):
Net Decrease in Fair
Value of Investments
Interest
Dividends
Rental and Other Income, net
Total Investment Earnings (Losses)
Less Investment Expenses
Investment Expenses
Net Investment Income
Total Additions (Reductions)
Deductions
Benefits
Refunds upon resignation, death, etc.
Distribution to retirees
Administrative and Other Expenses
Total Deductions
Change in Net Assets
Net Assets - Beginning of Year
Net Assets - End of Year
Employee Retirement Funds
Elected Officer's
Firefighter and General and Retirement Trust
Police (FIPO) Sanitation (GESE) (FORT)
T..b.1�
Mminoyee
Retirement
Funds
$ 5,400,784 $
2,499,618 $
665,203
$ 8,565,605
6,721,236
7,186,033
-
13,907,269
12,122,020
9,685,651
665,203
22,472,874
(88,617,340)
(68,202,403)
-
(156,819,743)
27,747,699
9,222,685
16,151
36,986,535
6,652,864
4,776,325
-
11,429,189
691,013
1,893,138
2,584,151
(53,525,764)
(52,310,255)
16,151
(105,819,868)
3,263,605
2,213,862
-
5,477,467
(56,789,369)
(54,524,117)
16,151
(111,297,335)
(44,667,349)
(44,838,466)
681,354
(88,824,461)
42,743,765
398,452
8,943,616
JL,VBJ,b»
(96,753,182)
1,024,054,333
$ 927,301,151
93
35,703,167
1,141,551
1,715,867
38,560,585
(83,399,051)
551,391,470
$ 467,992,419
141,809
1•i1,OVY
539,545
1,166,496
$ 1,706,041
78,588,741
1,540,003
8,943,616
1,715,867
90,788,227
(179,612,688)
1,576,612,299
$ 1,396,999,611
This page intentionally left blank
Epi G,
Q
M
•k x
SUPPLEMENTARY INFORMATION
Supplemantary :information is presented to provide
greater detailed information than reported in the
preceding financial statements. This information, in
many cases, has been spread throughout the report and
is brought together here for greater clarity. Financial
schedules are not necessary for fair presentation, in
order to be in conformity with Generally Accepted
Accounting Principles.
M
Resources (inflows):
Property Taxes
Interest
Transfer from Other Funds
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Community Redevelopment Areas
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
Fund Balance Allocation
City of Miami, Florida
Budgetary Comparison Schedule
Omni CRA
For The Year Ended September 30, 2002
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final Budgetary Basis) Positive (Negative)
$ 1,581,974 $ 1,634,449 $ 1,634,449 $ -
45,259 19,595 14,841 (4,754)
- - 531,736 531,736
1,627,233 1,654,044 2,181,026 526,982
1,627,233 2,554,044 1,662,346 891,698
1,627,233 2,554,044 1,662,346 891,698
(900,000) 518,680 1,418,680
- 900,000
(900,000)
Excess (Deficiency) of Resources Over
Charges to Appropriations $��$ 518,680 $ 518,680
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 2,181,026
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting per•
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (531,736)
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 1,649,290
Usestoutflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 1,662,346
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. -
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 1,662,346
96
Resources (inflows):
Property Taxes
Intergovernmental Revenues
Charges for Services
Interest
Other
Transfer from Other Funds
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Community Redevelopment Areas
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
SEOPW CRA
For The Year Ended September 30, 2002
(900,000) (1,400,000)
900,000 1,400,000
64,588 1,464,588
(1+400+000)
$ - $ 64,588 $ 64,588
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
SourceWintlows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
finds.
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances-govemmental
funds.
97
$ 4,458,088
(235,902)
$
4,222,186
$
Variance with
Budgeted Amounts
Actual Amounts
Final Budget
Original
Final
Budgetary Basis)
Positive (Negative)
$ 1,310,256
$ 1,446,192
$ 1,388,517
$ (57,675)
-
2,713,787
-
(2,713,787)
138,155
52,880
451,744
398,864
108,953
83,346
168,138
84,792
-
-
2,213,787
2,213,787
659,388
790,994
235,902
(555,092)
2,216,752
5,087,199
4,458,088
(629,111)
3,116,752
6,487,199
4,393,500
2,093,699
3,116,752
6,487,199
4,393,500
2,093,699
(900,000) (1,400,000)
900,000 1,400,000
64,588 1,464,588
(1+400+000)
$ - $ 64,588 $ 64,588
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
SourceWintlows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
finds.
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances-govemmental
funds.
97
$ 4,458,088
(235,902)
$
4,222,186
$
4,393,500
$
4,393,500
Resources (inflows):
Intergovernmental Revenues
Charges for Services
Interest
Other
Transfer from Other Funds
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Public Facilities
Transfer to Other Funds
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
Convention Center
For The Year Ended September 30, 2002
(273,930) 291,322
273,930
565,252
(273,930)
®� $ $ 291,322 $ 291,322
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
98
7,350,050
(1,765,341)
$ 5,584,709
7,058,728
(4,204,178)
$ 2,854,550
Variance with
Budgeted Amounts
Actual Amounts
Final Budget
Original
Final
Budgetary Basis)
Positive (Negative)
$ 1,098,026
$ 1,106,597
$ 1,001,576
$ (105,021)
4,369,758
4,369,758
3,869,263
(500,495)
113,000
113,000
52,173
(60,827)
428,651
222,946
661,697
438,751
1,568,761
1,568,761
1,765,341
196,580
7,578,196
7,381,062
7,350,050
(31,012)
2,766,267
2,843,063
2,854,550
(11,487)
4,811,929
4,811,929
4,204,178
607,751
7,578,196
7,654,992
7,058,728
596,264
(273,930) 291,322
273,930
565,252
(273,930)
®� $ $ 291,322 $ 291,322
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
98
7,350,050
(1,765,341)
$ 5,584,709
7,058,728
(4,204,178)
$ 2,854,550
Resources (inflows):
Intergovernmental Revenues
Charges for Services
Interest
Transfer from Other Funds
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Planning and Development
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
Ecnomic Development & Planning Services
For The Year Ended September 30, 2002
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
(2,566,981) 2,241,088
- 2,566,981
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
4,808,069
(2,566,981)
2,241,088 $ 2,241,088
2,940,540
(2,074,000)
$ 866,540
699,452
$ 699,452
Variance with
Budgeted
Amounts
Actual Amounts
Final Budget
Original
Final
(Budgetary Basis)
Positive (Negative)
$ -
$ 850,577
$ 345,639
$ (504,938)
35,869
124,969
468,598
343,629
7,929
7,929
52,303
44,374
200,000
2,000,000
2,074,000
74,000
243,798
2,983,475
2,940,540
(42,935)
243,798
5,550,456
699,452
4,851,004
243,798
5,550,456
699,452
4,851,004
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
(2,566,981) 2,241,088
- 2,566,981
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
4,808,069
(2,566,981)
2,241,088 $ 2,241,088
2,940,540
(2,074,000)
$ 866,540
699,452
$ 699,452
Resources (inflows):
Intergovernmental Revenues
Charges for Services
Interest
Other
Transfer from Other Funds
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Public Safety
Transfer to Other Funds
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
FSrnd Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
Fire Rescue Services
For The Year Ended September 30, 2002
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
- (633,160)
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
100
633,160
493,351 1,126,511
(633,160)
$ - $ 493,351 $ 493,351
$ 5,772,294
(438,516)
$ 5,333,778
$ 5,278,943
(4,157,183)
$ 1,121,760
Variance with
Budgeted Amounts
Actual Amounts
Final Budget
Original
Final
(Budgetary Basis)
Positive (Negative)
$ 131,507
$ 440,781
$ 1,026,930
$ 586,149
4,272,183
4,272,183
4,272,183
-
-
-
34,665
34,665
950,020
950,020
-
(950,020)
71,953
71,953
438,516
366,563
5,425,663
5,734,937
5,772,294
37,357
1,268,480
2,210,914
1,121,760
1,089,154
4,157,183
4,157,183
4,157,183
-
5,425,663
6,368,097
5,278,943
1,089,154
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
- (633,160)
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
100
633,160
493,351 1,126,511
(633,160)
$ - $ 493,351 $ 493,351
$ 5,772,294
(438,516)
$ 5,333,778
$ 5,278,943
(4,157,183)
$ 1,121,760
Resources (inflows):
Interest
Other
Transfer from Other Funds
Amounts Available for Appropriation
Charges To Appropriations (outflows):
General Government
Transfer to Other Funds
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
NET Offices
For The Year Ended September 30, 2002
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final 1 Budgetary Basis) Positive (Negative)
$ - $ - $ 500 $ 500
172,732 172,732 50 (172,682)
4,690,126 4,720,126 3,925,688 (794,438)
4,862,858 4,892,858 3,926,238 (966,620)
4,862,858 5,213,714 4,254,634 959,080
- 101,270 (101,270)
4,862,858 5,213,714 4,355,904 857,810
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources!mflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting per•
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
- (320,856)
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances-govemmental
funds.
101
320,856
(429,666) (108,810)
(320,856)
$ - $ (429,666) $ (429,666)
$ 3,926,238
(3,925,688)
$ 550
$ 4,355,904
(124,620)
(101,270)
$ 4,130,014
Resources (inflows):
intergovernmental Revenues
Charges for Services
Interest
Other
Transfer from Other Funds
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Parks and Recreation
Transfer to Other Funds
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
Parks & Recreation Services
For The Year Ended September 30, 2002
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Souece"ows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 2,282,516
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. 805,640)
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
$ 1,476,876
funds.
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 1,827,251
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 1,827,251
102
Variance with
Budgeted Amounts
Actual Amounts
Final Budget
Original
Final
(Budgets Basis)
Positive (Negative)
$ 1,446,408
$ 1,446,408
$ 973,350
$ (473,058)
-
-
477,673
477,673
_
-
21,353
21,353
824,634
824,634
4,500
(820,134)
1,119,278
1,119,278
805,640
(313,638)
3,390,320
3,390,320
2,282,516
(1,107,804)
4,106,631
4,106,631
1,827,251
2,279,380
7,500
7,500
-
7,500
4,114,131
4,114,131
1,827,251
2,286,880
(723,811)
(723,811)
455,265
1,179,076
723,811
723,811
-
(723,811)
$-
$ 455,265
$ 455,265
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Souece"ows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 2,282,516
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. 805,640)
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
$ 1,476,876
funds.
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 1,827,251
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 1,827,251
102
Charges To Appropriations (outflows):
Public Safety
Transfer to Other Funds
Total Charges to Appropriations
Excess (Deficiency) of Resources over
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
34,092,478 37,868,156 6,423,658 31,444,498
5,357,691 5,357,691 6,402,043 (1,044,352)
39,450,169 43,225,847 12,825,701 30,400,146
(3,115,159)
3,115,159
5,614,479 8,729,638
(3,115,159)
$ $ - $ 5,614,479 $ 5,614,479
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sourceslinflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting per-
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
103
18,440,180
(1,735,351)
$ 16,704,829
12,825,701
(6,402,043)
$ 6,423,658
City of Miami, Florida
Budgetary Comparison Schedule
Police Services
For The Year Ended September 30, 2002
Variance with
Budgeted Amounts
Actual Amounts
Final Budget
original Final
Budgetary Basis)
Positive (Negative)
Resources (inflows):
Intergovernmental Revenues
$ 32,970,931 $ 33,631,450
$ 16,473,935
$ (17,157,515)
Charges for Services
197,252 197,252
117,118
(80,134)
Interest
124,019 124,019
113,776
(10,243)
Other
5,002,077 5,002,077
-
(5,002,077)
Transfer from Other Funds
1,155,890 1,155,890
1,735,351
579,461
Amounts Available for Appropriation
39,450,169 40,110,688
18,440,180
(21,670,508)
Charges To Appropriations (outflows):
Public Safety
Transfer to Other Funds
Total Charges to Appropriations
Excess (Deficiency) of Resources over
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
34,092,478 37,868,156 6,423,658 31,444,498
5,357,691 5,357,691 6,402,043 (1,044,352)
39,450,169 43,225,847 12,825,701 30,400,146
(3,115,159)
3,115,159
5,614,479 8,729,638
(3,115,159)
$ $ - $ 5,614,479 $ 5,614,479
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sourceslinflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting per-
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
103
18,440,180
(1,735,351)
$ 16,704,829
12,825,701
(6,402,043)
$ 6,423,658
Resources (inflows):
Fines and Forfeitures
Charges for Services
Interest
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Public Safety
Transfer to Other Funds
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
Law Enforcement Trust Fund
For The Year Ended September 30, 2002
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final Budgetary Basis) Positive (Negative)
$ $ - $ 3,822,125 $ 3,822,125
21,174 21,174
439,533 439,533
- - 4,282,832 4,282,832
9,434,609 8,517,417 4,547,056 3,970,361
1,000,000 1,000,000 1,000,000 -
10,434,609 9,517,417 5,547,056 3,970,361
(10,434,609) (9,517,417)
10,434,609 9,517,417
(1,264,224) 8,253,193
(9,517,417)
$ - $ - $ (1,264,224) $ (1,264,224)
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 4,282,832
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. -
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. -
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 4,282,832
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 5,547,056
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (11000,000)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds, $ 4,547,056
104
Resources (inflows):
Intergovernmental Revenues
Interest
Other
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Public Works
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
Public Works Services
For The Year Ended September 30, 2002
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
10,425 $ 10,425
45,432 45,432
- 48,612 48,612
104,469 104,469
1,000,386 1,000,386
1,000,386 1,000,386
(1,000,386) (1,000,386)
1,000,386 1,000,386
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting per•
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
105
1,000,386
1,000,386
104,469 1,104,855
(1,000,386)
�! $ 104,469 $ 104,469
$ 104,469
$ 104,469
Resources (inflows):
Intergovernmental Revenues
Charges for Services
Amounts Available for Appropriation
Charges To Appropriations (outflows):
General Government
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
City Clerk Services
For The Year Ended September 30, 2002
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final Budgetary Basis) Positive (Negative)
$ - $ 8,000 $ - $ (8,000)
134,293 169,293 118,997 (50,296)
134,293 177,293 118,997 (58,296)
134,293 355,293 135,355 219,938
134,293 355,293 135,355 219,938
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
- (178,000)
- 178,000
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
106
(16,358) 161,642
(178,000)
$ $ (16,358) $ (16,358)
$ 118,997
$ 118,997
$ 135,355
$ 135,355
Resources (inflows):
Intergovernmental Revenues
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Transfer to Other Funds
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
Focal Option Gas Tax
For The Year Ended September 30, 2002
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final Budgetary Basis) Positive (Negative)
$ 7,100,000 $ 7,100,000 $ 7,336,917 $ 236,917
7,100,000 7,100,000 7,336,917 236,917
7,100,000 7,400,000 7,100,000 300,000
7,100,000 7,400,000 7,100,000 300,000
(300,0
300,000
236,917 536,917
(300,000)
$ $ 236,917 $ 236,917
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting per•
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
Usestoutflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting per•
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
107
7,336,917
$ 7,336,917
7,100,000
(7,100,000)
Resources (inflows):
Franchise Fees and Other Taxes
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Public Works
Transfer to Other Funds
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
Fund Balance Allocation
City of Miami, Florida
Budgetary Comparison Schedule
Stormwater Utility Fund
For The Year Ended September 30, 2002
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final Budgetary Basis) Positive (Negative)
$ 8,962,242 $ 8,962,242 $ 9,330,383 $ 368,141
8,962,242 8,962,242 9,330,383 368,141
25,000 25,000 25,000
8,937,242 8,937,242 8,937,242
8,962,242 8,962,242 8,962,242
- - 368,141
368,141
Excess (Deficiency) of Resources Over
Charges to Appropriations �$ -- $ - $ 368,141 $ 368,141
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 9,330,383
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. -
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 9,330,383
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations„
from the budgetary comparison schedule. $ 8,962,242
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (8,937,242)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 25,000
108
Resources (inflows):
Intergovernmental Revenues
Charges for Services
Other
Transfer from Other Funds
Amounts Available for Appropriation
Charges To Appropriations (outflows):
General Government
Non-Departrnental
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
Gusman & Olympia
For The Year Ended September 30, 2002
Budgeted Amounts Actual Amounts
Original Final (Budgetary Basis)
$ - $ - $ 2,170,253
706,652 706,652 527,244
- - 39,630
153,599 153,599 153,599
860,251 860,251 2,890,726
Variance with
Final Budget
Positive (Negative)
$ 2,170,253
(179,408)
39,630
2,030,475
- - 3,176,606 (3,176,606)
860,251 860,251 - 860,251
860,251 860,251 3,176,606 (2,316,355)
$ $ - $ (285,880) $ (285,880)
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
109
$ 2,890,726
(153,599)
$ 2,737,127
$ 3,176,606
$ 3,176,606
Resources (inflows):
Property Taxes
Other
Proceeds Received From Refunded Debt
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Debt Service:
Principal
Interest and Other Charges
Payments To Escrow Agent
Total Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
General Obligation Bonds
For The Year Ended September 30, 2002
Excess (Deficiency) of Resources Over
Charges to Appropriations $�� �$� $ 372,028 $ 32,342,028
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
110
$
50,630,264
$
Variance with
Budgeted Amounts
Actual Amounts
Final Budget
Original
Final
(Budgetary Basis)
Positive (Negative)
$ 17,463,793
$ 17,463,793
$ 18,009,638
$ 545,845
-
-
110,626
110,626
-
-
32,510,000
32,510,000
17,463,793
17,463,793
50,630,264
33,166,471
17,463,793
11,535,000
11,635,000
(100,000)
-
5,928,793
6,653,236
(724,443)
-
-
31,970,000
(31,970,000)
17,463,793
17,463,793
50,258,236
(824,443)
Excess (Deficiency) of Resources Over
Charges to Appropriations $�� �$� $ 372,028 $ 32,342,028
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
110
$
50,630,264
$
50,630,264
$
50,258,236
$
50,258,236
Resources (inflows):
Intergovernmental Revenues
Interest
Other
Transfer from Other Funds
Proceeds Received From Refunded Debt
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Debt Service:
Principal
Interest and Other Charges
Transfer to Other Funds
Payments To Escrow Agent
Total Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
Other Special Obligation Bonds
For The Year Ended September 30, 2002
Budgeted Amounts Actual Amounts
Original Final Budgetary Basis)
$ 612,133 $ 612,133
20,964,086 20,960,426
21,576,219 21,572,559
10,913,401 10,913,401
10,110,674 10,107,014
552,144 552,144
21,576,219 21,572,559
$ 612,351
98,763
247,271
20,088,510
41,065,000
62,111,895
11,123,400
12,266,242
1,811,957
38,010,000
63,211,599
Variance with
Final Budget
Positive (Negative)
$ 218
98,763
247,271
(871,916)
41,065,000
40,539,336
(209,999)
(2,159,228)
(1,259,813)
(38,010,000)
(41,639,040)
E'scess (Deficiency) of Resources Over
Charges to Appropriations ®- $ - $ (1,099,704) $ (1,099,704)
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes -
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
Usestoutflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
111
$ 62,111,895
(20,088,510)
$ 42,023,385
$ 63,211,599
(1,811,957)
$ 61,399,642
Resources (inflows):
Property Taxes
Intergovernmental Revenues
Interest
Transfer from Other Funds
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Debt Service:
Principal
Interest and Other Charges
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
CRA Other Special Obligation Bonds
For The Year Ended September 30, 2002
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
$ - $ - $ 57,675 $ 57,675
300,000 300,000 300,000 -
- - 8,480 8,480
668,463 668,463 610,788 (57,675)
968,463 968,463 976,943 8,480
315,000 315,000 315,000 -
653,463 653,463 417,125 236,338
968,463 968,463 732,125 236,338
$ - $- $ 244,818 $ 244,818
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences - budget to GAAP:
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes.
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds.
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
112
$ 976,943
(610,788)
$ 366,155
$ 732,125
$ 732,125
STATISTICAL SECTION
Statistical tables differ from financial statements
because they usually cover more than one fiscal
year and may present nonaccounting data, financial
trends and the fiscal capacity of the governments.
I.—
CITY OF MIAMI, FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES AND TRANSFERS BY FUNCTION
LAST TEN FISCAL YEARS (1)
(1) This schedule includes Expenditures of the General Fund only.
(2) Beginning in FY 1996, the City discontinued the use of the Proprietary Funds and the Pension Administration Trust Fund. Accordingly,
the activities of these funds are accounted for in the General Fund.
(3) Other expenditures and financing uses include employee benefits of $35,173,810 and operating transfers out of $22,926,859.
TOTAL
$ 347,595,858
334,012,113
296,120,209
288,276,416
297,365,349
269,514,000
360,789,000
215,041,000
212,343,000
211,784,000
CITY OF MIAMI, FLORIDA
GENERAL FUND EXPENDITURES AND OTHER FINANCING USES BY
FUNCTION
Police & Fire
Solid Waste
Public Facilities
r
Public Improvements
General Govt.
Culture
Other
0.001% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00
% of Total Fiscal Year Budget
■ FY 02 ■ FY 01 ❑ FY 00
113
OTHER
CULTURE
EXPENDITURES
FISCAL
PUBLIC
SOLID
PUBLIC
PUBLIC
GENERAL
AND
OR FINANCING
YEAR
SAFETY
WASTE
FACILITIES
IMPROVEMENTS
GOVERNMENT
RECREATION
USES
2002
$ 169,452,122
$ 20,569,047
$ 5,071,735
$ 25,740,477
$ 83,117,901
$ 11,092,994
$ 32,551,582
2001
132,844,965
18,798,645
4,547,020
22,176,806
24,592,817
9,358,344
121,693,516
2000
135,173,374
17,875,978
4,379,971
19,139,493
23,025,280
8,746,720
87,779,393
1999
126,287,513
17,730,332
3,819,893
21,068,901
20,509,297
8,221,325
90,639,155
1998
116,894,329
16,755,266
3,556,522
18,973,481
44,984,243
6,994,947
89,206,561
1997
107,127,000
15,115,000
7,337,000
16,027,000
61,743,000
6,770,000
55,395,000
(2) 1996
113,050,000
16,334,000
7,507,000
9,893,000
69,542,000
12,583,000
131,880,000 (3)
1995
145,974,000
8,360,000
-
11,903,000
17,921,000
10,626,000
20,257,000
1994
134,722,000
16,831,000
11,046,000
16,846,000
9,636,000
23,262,000
1993
136,916,000
13,288,000
12,350,000
16,125,000
10,534,000
22,571,000
(1) This schedule includes Expenditures of the General Fund only.
(2) Beginning in FY 1996, the City discontinued the use of the Proprietary Funds and the Pension Administration Trust Fund. Accordingly,
the activities of these funds are accounted for in the General Fund.
(3) Other expenditures and financing uses include employee benefits of $35,173,810 and operating transfers out of $22,926,859.
TOTAL
$ 347,595,858
334,012,113
296,120,209
288,276,416
297,365,349
269,514,000
360,789,000
215,041,000
212,343,000
211,784,000
CITY OF MIAMI, FLORIDA
GENERAL FUND EXPENDITURES AND OTHER FINANCING USES BY
FUNCTION
Police & Fire
Solid Waste
Public Facilities
r
Public Improvements
General Govt.
Culture
Other
0.001% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00
% of Total Fiscal Year Budget
■ FY 02 ■ FY 01 ❑ FY 00
113
CITY OF MIAMI, FLORIDA
GENERAL GOVERNMENTAL REVENUES AND TRANSFERS BY SOURCE
LAST TEN FISCAL YEARS (1)
CITY
BUSINESS
INTER-
LICENSES
CHARGES
OTHER REVENUE
FISCAL PROPERTY
& EXCISE
GOVERN-
AND
FOR
AND FINANCING
YEAR TAXES
TAX 1
MENTAL
PERMITS
SERVICES
SOURCES (2)
2002 S 130.375,831
$ 49,582,101
S 40,451,667
S 21,375,993
$ 93,708,913
$ 34,955,363
2001 119.683,851
42,215,651
33.688,246
20.333.532
84,334,277
45,469,115
2000 120,426,167
32,426,893
44,574,354
19,833,395
75,470,338
39,336,967
1999 120.781,649
30.441,973
34,032,189
16.050,883
54,241,929
35,419,431
1998 108,172,648
27,906,840
33.841,573
16.641,532
41,866,305
98,132,190
1997 105.493,000
48,854,000
45,575,000
9,816,000
41,586,000
41,841,000
(3) 1996 101,964,000
52,294,000
33,761,000
5.407,000
39,045.000
118,109,000
1995 99,178,000
44,874.000
28,789,000
4,361,000
5,938,000
55,393,000
1994 97.705,000
43,571,000
32,331,000
4,702,000
5,149,000
27,609,000
1993 100,091,000
43,545.000
30,456,000
4,741,000
4,726,000
23.669.000
(l) This schedule includes Expenditures
of the General Fund only.
(2) Transfers form other funds representing public utilities
service taxes are
presented in this schedule as business and excise tax revenues,
rather than as other financing sources, to more clearly
depict sources of revenues.
(3) Beginning in FY 1996, the City
discontinued the use
of the Proprietary Funds and the Pension Administration Trust
Fund. Accordingly,
the activities of these funds are accounted for in the General Fund.
CITY OF MIAMI, FLORIDA
GENERAL FUND REVENUES AND OTHER FINANCING SOURCES BY FUNCTION
Property Taxes
Business & Excise Tax
Inter-Govemmental
Licenses & Permits
Charges for Services
Other
TOTAL
370,449,868
345,724,672
332,068.114
290,968,054
326,561,088
293,165,000
350,580,000
238,533,000
211,067,000
207,228,000
0.00% 5.00°% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00°% 45.00%
% of Total Fiscal Year Budget
■ FY 02 ■ FY 01 ❑ FY 00
114
OTHER REPORTS
OTHER REPORTS
City of Miami Management Letter
125
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126
Executive Summary
KPMG LLP (KPMG) hereby submits this management letter to the City of Miami, Florida (the City), for
the fiscal year ending September 30, 2002. The management letter is presented in accordance with the
Rules of the Auditor General of the State of Florida. In accordance with Government Auditing Standards,
we are required to consider the City's internal control during our planning and performing of our audit of
the basic financial statements in order to determine our auditing procedures for the purpose of expressing
our opinion on the basic financial statements and not to provide assurance on the internal control. In
fulfilling this responsibility, estimates and judgments made by management are required to assess the
expected benefits and related costs of internal control policies and procedures. The objectives on internal
control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition, and that transactions are executed in accordance with
management's authorization and recorded properly to permit the preparation of its basic financial
statements in accordance with accounting principles generally accepted in the United States of America.
The management letter is organized in the following manner:
Executive summary;
Current year's observations, recommendations, and management's responses; and
Status of prior year's observations, recommendations, and management's responses.
Only comments issued in the prior years that are still relevant are included in this management letter.
We would be pleased to discuss these comments with you and, if desired, to assist you and management in
implementing corrective action steps. KPMG appreciates the cooperation we received from the City's staff
and management and is honored to serve the City as its external auditors.
127
",a ffli-
Management
Letter in :accordance Frith the
Rules of the ,auditor General of the State of Florida
To the Honorable Mayor, Members
of the City of Miami Commission and City !klanager
City of Miami, Florida:
We have audited the basic financial statements of the OV, of Miami. Florida (the City). as of and for the
fiscal year ended September 30, 2002, and have issued our report thereon dated February 7, 2003 which
referred to our use of the reports of other auditor and the Otv's adoption of new accounting and reporting
standards.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America: the standards applicable to financial audits contained in Government Auditing Standards, Issued
by the Comptroller General of the hinted States: and ()NIB Circular A-1 ,3, ;lutht_s o/ States. Local
Crni*0,tttttCItts. an(I NonTroJit (h-,i�C1ni::uttotts We have Issued our Independent Auditors Report on
Compliance and Internal Control over Financial Reporting, Independent Auditors' Report on Compliance
and internal Control over Compliance Applicable to each Nialor I-cderal Program and State Project, and
Schedule of Findings and Questioned Costs. Disclosures in those reports and schedule, which are dated
Februar 7. 2003, should be considered in conluncnon ss ith this management letter.
Additionally, our audit was conducted in accordance with Chapicr 10.550, Rules of' the Auditor (_iencral.
Fhosc rules (Section 10.554(1)(g)La.) require that sse address in the management letter, if not already
addressed in the auditors reports on compliance and internal controls or schedule of findings and
questioned costs, whether or not inaccuracies, shortages- defalcations, fraud, and/or violations of laws,
rules, regulations, and contractual provisions reported in the preceding annual financial audit report have
been corrected. We noted no inaccuracies. Irregularities, shortages, defalcations, and!or violations of law's.
rules. regulations, and contractual provisions disclosed nt the pn•cechni_, annual report
I'he RLIIC, of the Auditor ( 1cncial (Section 10_x; t( 1 h ) require that we disclose in the management
letter, it not alreadv disclosed In the auditor' reports un compliance and internal controls or schedule of
tindings and questioned costs. whcihcr or nut rccornmendation, made in the prcccding annual financial
audit report have hecn followed. I he recommendations made In the preceding annual financial audit report
hale hecn currecled, c.rccpi for those repined under the headurV 'Status of Prior Ycar's
t )h�Cr,OHMI, RCCommCndiwons and 1lanaiCnlenl RC,polhe�
t he Rules of the Andlttir (iencral ('sc" twil i () ;)-I( I I_ tate that a Inanagemcnt Ie-tter ,hall include I
,t,Itenicnt a1 to vv hcthcr or not a local '_oscniiilcn Will emit% complied �� lilt SCCII011 _' l S -11 Florida Statute,.
rc'_'ardinz the In\�C?tHICnt of puhhc ftuul, In c.Owwetwi, �%inh our audit_ v c dc,ternuned that the ( its ut
Munn. l lorida coni[llcd vkith 21�% londa Statute, rrlatin'-, to local t�osernnicntal ins<stincnt
The Rules of the Auditor General (Section 10.554(1)(g) 3.) states that a management letter shall include
recommendations to improve the local government entity's present financial management, accounting
procedures and internal accounting controls. The recommendations made in the current year are listed in
the section titled "Current Year's Observations, Recommendations and Management's Responses (see
Appendix A)."
The Rules of the Auditor General (Section 10.554(1 xg)4.) require disclosure in the management letter of
the following matters if not already addressed in the auditors' reports on compliance and internal controls
or schedule of findings and questioned costs: (a) violations of laws, rules, regulations, and contractual
provisions that have occurred, or are likely to have occurred; (b) improper or illegal expenditures;
(c) improper or inadequate accounting procedures (for example, the omission of required disclosures from
the financial statements); (d) failures to properly record financial transactions; and (e) other inaccuracies,
shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor.
No such conditions were noted during the audit.
The Rules of the Auditor General (Section 10.554(1)g5.) also require that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be disclosed in
the management letter, unless disclosed in the notes to the financial statements. Disclosure is made in
note 1 to the City's basic financial statements.
The Rules of the Auditor General (Section 10.554(lxg)6.a.), state that a management letter shall include a
statement as to whether or not a unit of local government is in a state of financial emergency as a
consequence of conditions described in Section 218.503(1), Florida Statutes. In connection with our audit,
we determined that the City is not in a state of financial emergency as a consequence of the conditions
described in Section 218.503(1), Florida Statutes.
As required by the Rules of the Auditor General (Section I0.554(1)(g)6.b.), we determined that the annual
financial report for the City for the fiscal year ended September 30, 2002, filed with the Department of
Banking Finance pursuant to Section 218.32, Florida Statutes, is in agreement with the annual financial
audit report for the fiscal year ended September 30, 2002.
As required by the Rules of the Auditor General (Sections 10.554(g)(6)c, and 10.556), we applied fmancial
condition assessment procedures. It is management's responsibility to monitor the City's financial
condition, and our financial condition assessment was based in part on representations made by
management and the review of financial information provided by same.
This management letter is intended solely for the information and use of the Honorable Mayor, Members
of the City of Miami Commission, the City Manager, management of the City, the State of Florida Office
of the Auditor General, and federal and state awarding agencies and pass-through entities, and is not
intended to be and should not be used by anyone other than these specified parties.
Very truly yours,
'►� t .cam
February 7, 2003
129
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G�(1i OF
Appendix A-1
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Current Year's Observations, Recommendations,
and Management's Responses
SUMMARY
No. Current Year's Observation
2002-1 Risk Management — Workers' Compensation Claims
2002-2 Managing Critical Network Characteristics
Appendix A-2
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Current Year's Observations, Recommendations,
and Management's Responses
2002-1 Risk Management — Workers' Compensation Claims
Criteria
The City has formai polices and procedures over the processing and payment of workers' compensation
claims. These policies and procedures have been developed to control the propriety of payments to
claimants.
Condition Found
The City is not adhering to its policies and procedures for the processing and payment of workers'
compensation claims. During our testing of workers' compensation claims in the Risk Management
Department, we noted the following in several instances:
• Forms were not properly filed (e.g., D -slip and Supervisor Report of Injury) in claimant files;
• Proper endorsement or signatures were missing for processing and payment of claims;
• Supplemental payments were incorrectly calculated;
• Adjuster's stamp of approval or stamp indicating date received were missing on some invoices;
• Payments were not made within the allowable 45 day time period; and
• A claimant file we requested for review could not be located.
Perspective
This finding is considered systemic in nature.
Effect
Failure to properly process and pay workers' compensation claims in accordance with the City's policies
and procedures could result in unauthorized and/or illegitimate payment of claims.
Recommendation
We recommend the City adhere to its policies and procedures for the processing and payment of workers'
compensation claims.
Management's Response
We .concur with these findings. During the fiscal year, the Risk Management workers' compensation
division has implemented policies and procedures to mitigate these types of issued in the future. For
example, a checklist has been implemented to assist the adjusters in ensuring that all forms are completed
and placed in the files. In addition, all payments are reviewed and initialed by the workers' compensation
claims supervisor and all documents are date stamped when received in the department.
Appendix A-3
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Current Year's Observations, Recommendations,
and Management's Responses
2002-2 Managing Critical Network Characteristics
Criteria
The City currently has a citywide network in place that links many locations throughout the City. A
network of this magnitude should have a mechanism to centrally manage critical network characteristics
such as availability, responsiveness, resilience, and security.
Condition Found
The City currently does not have a mechanism to centrally manage critical network characteristics such as
availability, responsiveness, resilience, and security.
Perspective
This finding is considered systemic in nature.
Effect
As the City network grows in size and complexity, )T will be unable to detect, diagnose, or troubleshoot
network traffic problems that can affect the availability and integrity of City resources.
Recommendation
We recommend the City purchase a network management too) to configure, administer, and troubleshoot
routed wide -area and local segment networks.
Management's Response
City staff concurs with the recommendation. An appropriate level of funding will be requested during the
current budget planning cycle to implement an appropriate network management tool to configure,
administer, and troubleshoot wide -area and local network segments during the 2003-2004 Fiscal Year.
rM is currently examining bandwidth utilization on a monthly basis and will use this information to
ensure bandwidth is available when and where needed to meet City needs.
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
SUMMARY
No. Prior year's observation
2001
2001-1
Single Audit Compliance
2001-2
Budgeting
2001-3
Time Recording — Overtime
2001-4
Vendor Master Files
2001-5
Requisition vs. P.O. Encumbrance
2001-6
Business Continuity
2000
2000-2
Statement on Auditing Standards (SAS) 70 Report
2000-5
Grant Accounting
2000-6
Business Continuity Plan
2000-7
Logical Security —User Termination
1999
99-3
Financial Reporting
99-5
Network Management and Security
1998
98-7
Changes in the Government Reporting Model
1997
97-4
IT Organization Structure
97-5
Disaster Recovery and Business Continuity Plan
97-6
User Access Codes
*See observation 2001-6
Observation
is still
relevant
X
X
X
X
X
X
X
s
X
X
X
X
X
X
Appendix B-1
Observation
addressed or
no longer
relevant
94
X
Appendix B-2
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
2001-2 Budgeting
Observation
The City currently utilizes two separate budget databases: the SCI financial management system for
finalized budget and procurement purposes and the Access database within the Budget Department to
create, track, monitor, forecast and finalize the budget. Numerous amounts of lime items are entered into
the Access database and reviewed during the budget process. The budget department has utilized the
finalized budget of the prior year to start creating the basis for the development of the budget of the
upcoming fiscal year. After the budget has been finalized and approved, the information is interfaced with
the SCI system. On a monthly basis, data is downloaded from the SCI system into the Access database by
the IT Department for forecasting purposes.
Maintaining two separate budget databases may result in extensive manual review procedures that are
required to verify and ensure the data being utilized by the City.
Recommendation
Management should consider implementing a budget module that would include the entire budgeting
process from initiation through adoption, to reduce the amount of time required for the extensive manual
reviews currently being performed. In addition, this would provide for up-to-date information when needed
for forecasting purposes rather than waiting until the monthly download process occurs.
Prior Year's Management's Response
City staff concurs with the continent, however, current financial system limitations do not allow for a
budget module that would include the entire budgeting process. The City is in the process of researching a
new ERP system that will allow for a simplified and complete budget module.
Current Year's Status
This observation is still applicable in the current year. The City did not implement a budget module during
fiscal year 2002 that includes the entire budgeting process.
Current Year's Management Response
City staff concurs with the comment, however, current financial system limitations do not allow for a
budget module that would include the entire budgeting process. The City is in the process of researching a
new ERP system that will allow for a simplified and complete budget module.
Appendix B-3
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
2001-3 Time Recording — Overtime
Observation
The City's GSA and Solid Waste Departments utilizes the KRONOS system for tracking, recording, and
monitoring employee time and attendance. The other departments within the City rely on manually
recorded, authorized, and submitted Time and Attendance reports. These reports are entered manually into
the Moore Personnel/Payroll system. The system edit checks within the Moore Personnel /Payroll system
related to overtime do not limit time entry of excessive overtime.
Current policy requires approval � for time and attendance prior to submission by the responsible
departments. An exception report is utilized which indicates overtime hours that have been entered for
employees not eligible for overtime. However, this report does not encompass overtime hours in excess of
reasonable hours worked per day for all employees. In some instances it is necessary to enter hours worked
for an employee retroactively. For this purpose, daily time parameters that could aid in identifying
excessive overtime hours have not been set within the system. In addition, there are two different screens
in the Moore Personnel/Payroll system where time can be entered. One is for mass entry of time the other
for individual time entry. Predominantly, the screen for mass time entry is utilized, however, the individual
time entry screen does not subject data entry to edit or validation checks, including overtime or invalid
codes.
Entry of time and attendance with limited or no online parameters for detecting the submission of
excessive overtime and part-time hours may contribute in overpaying an employee. Although the system
does generate a report that is manually reviewed by the payroll department, this report lists all overtime
hours entered for those employees not eligible for overtime but does not indicate those entries that appear
excessive or out of the ordinary.
Recommendation
Management should consider implementing time and entry edit and validation checks for total hours
worked including full-time, part-time and overtime hours for both entry screens. A single exception report
should be generated by the system based on submissions that are outside the set parameters. The
parameters should factor into account employees who work permanent positions in addition to part-time
position, as well as part-time employees who work multiple positions. This should enable a more accurate
and efficient review, and allow payroll personnel to perform other payroll related functions.
Prior Year's Management's Response
City staff concurs with the comment, however, current financial system limitations do not allow for such
an exception report. The City is in the process of researching a new ERP system that will allow for more
accurate and efficient reviews of overtime hours.
Appendix B-4
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
Current Year's Status
This observation is still applicable in the current year. The City did not implement additional time entry
edit and validation checks for total hours worked, including overtime hours, during fiscal year 2002.
Current Year's Management's Response
City staff concurs with the comment, however, current financial system limitations do not allow for such
an exception report. The City is in the process of researching a new ERP system that will allow for more
accurate and efficient reviews of overtime hours.
Appendix B-5
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
2041-4 Vendor Master Files
Observation
There are two vendor master files currently being used by the City: one is updated and maintained by the
accounts payable department in the SCI financial system, another is a database in the procurement
department within the Advanced Procurement System (APS). A decision to utilize a separate procurement
system initiated the development for maintaining two separate databases.
Vendor master data changed or updated within the APS system is not interfaced with the SCI system
during the nightly batch process, however changes within the SCI vendor master data updates the
information within the APS system during the batch process. Consequently, changes that are made in either
of the systems have to be manually reviewed within both systems.
The two systems do not store the same informational content. For example, SCI has the capability to enter
and store multiple addresses for a vendor. The APS system does not provide this functionality. The APS
system, however, has the capability to enter commodity codes for the vendor whereas the SCI system does
not. Consequently, for purchasing purposes reports by commodity codes are generated from the APS
system.
Maintaining vendor master data in two separate files may result in incomplete or inaccurate data being
utilized by the City.
Recommendation
Management should evaluate other solutions to ensure that only one vendor master file is maintained and
utilized on a regular basis in order to avoid inaccurate data from being used. Management should also
ensure that all the data is centrally accessible.
Prior Year's Management's Response
City staff concurs with the comment, however, current financial system limitations do not allow for the use
of only one vendor master file. The City is in the process of researching a new ERP system that will allow
for a centralized vendor database.
Current Year's Status
This observation is still applicable in the current year. The City did not implement a centralized vendor
database during fiscal year 2002.
Appendix B-5
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
Current Year's Management's Response
City staff concurs with the comment, however, current financial system limitations do not allow for the use
of only one vendor master file. The City is in the process of researching a new ERP system that will allow
for a centralized vendor database.
Appendix B-7
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
2001-5 Requisition vs. Purchase Order Encumbrance
Observation
A purchase order entered into the APS system of the procurement department and interfaced with the SCI
system will be accepted by the financial management system even if the purchase order is greater than the
originally approved amount of the requisition, if sufficient funds are available. There are no systematic
alerts to the user pertaining to a possible variation of amounts between the requisition and the final
purchase order, although the procurement department does have compensating manual review procedures
in place to detect such discrepancies before the purchase order is entered into the system. Any
discrepancies will be followed-up with the respective department and, if necessary, with the budget
department before proceeding. A manual review of the interfaced data into the SCI system is also
conducted regularly.
Instances have occurred where the dollar amount of the purchase order within the APS system and the
dollar amount of the same purchase order within SCI after the interface have occurred are different.
Although there are manual detective review procedures in place and the supervisor is notified to make the
necessary adjustments in the system, the SCI system does not automatically alert the user to this
discrepancy.
Purchase orders that have been interfaced with the SCI system without automatically alerting the user
when the purchase order is greater than the originally approved requisition may result in purchases of items
in excess of authorized amounts, effecting the department's budget and go undetected.
Purchase orders encumbered within the SCI system with a higher amount than entered into the APS system
may cause inaccurate data within the SCI system which may go undetected. This may expose the
department to unexpected and unmonitored expenses that could lead to exceeding funds, resulting in
unexpected and unnecessary budget overruns.
Recommendation
Management should consider implementing automated controls that would alert the user when possible
discrepancies exist between approved requisitions and purchase orders. Additionally, controls should either
be implemented which would compare the data included in the finalized purchase orders entered into the
APS system with the SCI system to enable early detection of possible variances in dollar amounts, or
management should evaluate other solutions to ensure a seamless process to minimize the possibility of
inaccurate and incomplete data from being utilized.
Prior Year's Management's Response
City staff currently perforins a manual check of finalized purchase orders in the APS system with the SCI
system to ensure the transfer of information is properly achieved.
Appendix B-8
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
Current Year's Status
This observation is still applicable in the current year. The City did not implement automated controls
during fiscal year 2002 to alert users of discrepancies between approved requisitions and purchase orders.
Current Year's Management's Response
The City is in the process of migrating the SCI (GEMS Financial Accounting Software) System from the
mainframe platform to the NT platform on an interim basis until an ERP solution is implemented. As part
of the migration pian, Purchasing has agreed to use the SCI procurement module and retire the APS system
they are currently using. The migration of SCI to NT is scheduled to be completed by the end of this fiscal
year Once the APS system is retired there will no longer be a need to interface two Purchasing files and
this audit finding can be closed.
Appendix B-9
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
2001-6 Business Continuity
Obserpation
The City does not have a formal written comprehensive citywide Business Continuity Plan to document
how it would recover in the event of an extended disruption in data processing services. A plan is
important to ensure the continuity of critical business services and to minimize the impact of an extended
disruption of services to the City in the event of a disaster. The City is vulnerable to a wide variety and
range of risks that could affect and incapacitate the City functions and services provided to its citizens.
Recommendation
The City should develop, document, and test a comprehensive business continuity plan to ensure continuity
in data processing services. The plan should describe at least the items below.
Objectives and scope of the plan
Assumptions and recovery strategies
A business impact assessment
Critical business service analysis
Recovery time objectives
Procedures for damage assessment
• Plan activation procedures
• Notification procedures
• Emergency recovery teams roles and responsibilities
• Insurance coverage
• Written vendor agreements
- Backup processing facilities
- Off-site storage of forms, critical documents and supplies
- Off-site magnetic media
• User interim operating procedures
• Backup procedures and data recovery procedures
• Vendor contract list
• Inventory of forms, magnetic media, hardware, software, equipment and supplies
• Testing procedures
• Plan maintenance responsibilities
• Fully documented departmental contingency plans
Prior Year's Management's Response
As previously stated we concur with the comment. In light of 9-11 it is of paramount importance that the
City develops a citywide business continuity plan. This plan must address all aspects of the services that
the City provides and must continue to provide in the event that some situation causes sustained outage.
Appendix B-10
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
We fully agree with all the points listed under the recommendations and feel that there are additional issues
that should be addressed.
As discussed with the auditor during the interview process, the term disaster recovery plan is often
incorrectly substituted for business continuity plan. In reality, disaster recover is the logical, procedural
outcome, (the final chapter) developed based on the criteria in the business continuity plan.
The City Administration should place the development of a Citywide Business Continuity Plan as one of
its top priorities. The plan should be developed by the City's key business units (Finance, Police, Fire,
Public Works, etc). Once the plan has been drafted then Information Technology can identify the costs and
develop the necessary procedures for the disaster recovery.
Current Year's Status
This observation is still. partially applicable in the current year. The City has procured the services of an
outside firm to assist in the development of an Emergency Management Plan. However, this is still in the
early stages.
Current Year's Management's Response
The Information Technology Department is currently in the process of procuring IT related disaster
recovery planning and recovery services through an agreement with SunGard Availability Services.
Funding for both of these initiatives was provided in the current fiscal year's budget. The SunGard based
Pr disaster recovery plan is currently expected to be complete within the cumerit fiscal year, 2002-2003.
Within the current fiscal year the City has begun to address this issue through the allocation of funding and
resources necessary to develop a Comprehensive Emergency Management Plan and an IT Disaster
Recovery Plan. Both of these projects are underway. Additional resources and funding will be requested
in the next fiscal year and subsequent years to complete the development of a comprehensive Emergency
Management Plan.
Appendix B-11
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
2000-2 Statement on Auditing Standards (SAS) 70 Report
Observation
The City, which is self-insured for general liability, property and casualty, and workers' compensation
claims, outsources the processing of its claims to a third -party administrator (TPA), which constitutes a
significant amount of claims paid each year. In addition, the City outsources the processing of its
Emergency Services billings and collections to a 'ITA. We noted that the TPA's do not have a service
auditor's report (SAS 70 Report — Reports on the Processing of Transactions by Service Organizations
from its TPA) issued on the internal controls over the administration of their respective services provided
to the City.
Recommendation
We recommend the City request each TPA to obtain a SAS 70 report at least every two years. A SAS 70
report would provide the City and the City's external auditors' assurance, although not absolute, about
whether or not the internal controls of the TPA are operating effectively with respect to the services
provided to the City.
Prior Year's Management's Response
City staff concurs with the comment. Staff will implement procedures for future agreements with TPAs to
contain language which will require them to provide a SAS 70 report to the City at least every two years.
Current Year's Status
This observation is still applicable in the current year. Currently, the City processes insurance claims in-
house using software provided by Corporate Systems. However, a third -party administrator processes
EMS billings and collections. Therefore, the City should request a SAS 70 report from this third -party
administrator.
Current Year's Management's Response
City staff concurs with the comment. Staff will implement procedures for future agreements with TPAs to
contain language that will require them to provide a SAS 70 report to the City at least every two years.
Appendix B-12
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
2000-5 Grant Accounting
Observation
Each of the City's federal, state, and local grants are currently accounted for in the City's general ledger by
project. However, each general ledger grant project does not identify only reimbursable expenditures
related to the respective grants. As a result, we were unable to agree several grant program expenditures
from the schedule of expenditures of federal awards, which were obtained from the general ledger grant
project, to the reimbursement packages.
Recommendation
We recommend the City separately identify, in the general ledger grant projects, those expenditures that
are reimbursable by the grantor and those expenditures that are not. This will ensure the accuracy of the
schedule of expenditures of federal awards.
Prior Year's Management's Response
City staff concurs with the comment, however, current financial system limitations are such that grant
expenditures are recorded on a project level and separately identifying those expenditures that are
reimbursable by the grantor is not available. The Finance department is working in conjunction with the
Budget department to ensure that the City's general ledger system, on a project level, correctly reflects
only budgets for expenditures that are reimbursable under the grant agreement. Unallowed expenditures
budgeted under the grant will require a separate budgeted dedicated revenue source.
Current Year's Status
This observation is still applicable in the current year.
Current Year's Management's Response
City staff concurs with the comment, however, current fmancial system limitations are such that grant
expenditures are recorded on a project level and separately identifying those expenditures that are
reimbursable by the grantor is not available. The Finance department is working in conjunction with the
Budget department to ensure that the City's general ledger system, on a project level, correctly reflects
only budgets for expenditures that are reimbursable under the grant agreement. Unallowed expenditures
budgeted under the grant will require a separate budgeted dedicated revenue source.
Appendix B-13
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with. the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
2000-7 Logical Security — User Termination
Observation
The Human Resources department provides Information Technology department (rTD) with a list of
monthly users that are no longer employed with the City. TTD relies on this list to ensure that terminated
user system access is disabled. In addition, departments should immediately notify TIT) of users that are no
longer employed by the City. However, this policy is not well enforced. As a result, the possibility exists
that users may remain active in the system for an extended period of time should departments not notify
TTD.
Recommendation
Management should disable system users in a more timely manner. Sound practices indicate that users
should be disabled on the last day of employment. The current policy should be recommunicated and
enforced.
Prior Year's Management's Response
City staff concurs with the comment. Current City policies require that the director of the respective
department notify TTD utilizing the "Security Access Termination Form" in the event that someone is
transferred from their department or terminated from employment with the City. When these forms are
received by TTD they are acted upon immediately. The "Monthly Separation Report" automatically
produced by the City's automated payroll system acts as a secondary notification of staff changes.
Additionally, in cases where urgency is dictated, an email from the respective department to the CIO of
ITD is utilized to expedite security modification/termination requests.
The primary policy, as has been noted in past years, is not always followed. TTD will draft a memo for the
City Manager's signature reinforcing this policy. Additionally, the CIO of TTD will send an email to all
organizational heads confirming the need for adherence to this policy. Moreover, a link to the "Security
Access Termination Form" will be provided on the City's Intranet site (CITYNET) giving direct access to
this form in electronic format.
Current Year's Status
This observation is still applicable in the current year. The user termination policy is being modified so that
the system access privileges are removed upon user termination. The new procedure is anticipated to be
implemented in the next month.
Appendix B-14
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 34, 2402
Status of Prior Year's Observations, Recommendations,
and Management's Responses
Current Year's Management Response
The Employee Relations Department (ERD, formally Human Resources) is currently developing a policy
whereby ERD, upon notification by the respective department, will provide immediate notification of all
employee terminations and transfers to the Information Technology Department. Upon receiving that
notification, the Information Technology Department will take the appropriate security termination actions
required. The Information Technology Department will continue to utilize the `Monthly Separation
Report" as an audit verification that all requests have been received and processed.
Appendix B-15
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
1999-3 Financial Reporting
Observation
The Finance department has purchased computerized financial reporting software and developed certain
procedures in an effort to assist in the compilation of the annual general purpose financial statements.
However, we noted that the accounting software is not fully used for its intended purpose and, in fact, the
financial statements are prepared manually on spreadsheets, which is very time consuming and prone to
human error.
Recommendation
Although the City has purchased computerized financial reporting software in the prior year, we noted that
the implementation process of such software has encountered some difficulties. We recommend that the
City continue to aggressively implement the computerized financial reporting software.
The use of a formal financial reporting system will improve the timeliness and accuracy of financial data
and thereby assist management in meeting their reporting deadlines and provide them with a reliable tool
for monitoring the City's progress and making informed decisions.
Prior Year's Management's Response
City staff concurs with the comment. The software provider has not yet delivered a working module. The
City is willing to implement the module upon delivery. Additionally, the City is in the process of
researching a new ERP system that will include a financial reporting module.
Current Year's Status
This observation is still applicable in the current year. The computerized financial reporting software was
not implemented during fiscal year 2002.
Current Year's Management's Response
City staff concurs with the comment. The software provider has not yet delivered a working module. The
City is willing to implement the module upon delivery. Additionally, the City is in the process of
researching a new ERP system that will include a financial reporting module.
Appendix B-16
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
1999-5 Network Management and Security
Observation
The City is in the process of installing a citywide network that will Iink remote locations, including fire
stations (12 total), the fire garage, Bayside Marina, the fire college, Dinner Key Marina, CC Convention
Center, Pension (Public Safety), Pension (General), GSA (Property Maintenance), Police auto pound,
Police substations, the Orange Bowl and other locations. Many of these locations have not previously been
connected to any network. A project of this magnitude raises network management and security issues.
Current findings and the corresponding recommendations related to network management and security
include:
• Physical access to computer equipment at remote facilities may not be secure.
• Approximately 70% of users with PCs have access to the Internet through the City's systems. There
is no filtering mechanism in place to control the execution of applets (Java or ActiveX) from Web
sites visited by City personnel.
• The City is considering implementing an Intranet that would improve information dissemination and
collaboration between the City's employees but, due to budgetary constraints, it has not been
implemented.
• The citywide network is connected to the Internet through a Microsoft Proxy Server and a Cisco PIX
firewall. Access to the Internet is provided via BellSouth and an additional service provider. There
are no firewall configurations and change control procedures in place.
• Information Technology department uses NT's System Management Server (SMS) for distributing
software, monitoring and analyzing network usage and for performing various network
administration tasks. SMS will also be used to complete a software inventory and compare it to the
City's valid software licenses.
• There are no automated intrusion detection mechanisms to alert Information Technology department
management of unauthorized attempts to log into the City's network. There is no defined incident
response team with specific roles and responsibilities for the investigation of an incident.
Recommen&don
We recommend that LTD closely monitor current and future IT projects. Corresponding recommendations
are listed below:
Physical access controls should be reviewed at remote sites linked to the citywide network. For
example, the Police Department has highly secure physical access to the City's network. On the
other hand, sites like the Convention Center, the Marinas, Orange Bowl, and others may not have the
same level of physical access control to computer equipment and consequently the City's network.
Appendix B-17
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
• The City should consider the use of Internet access control mechanisms to provide for Internet
filtering. The lack of controls allows the introduction of malicious code, such as Trojan horse
viruses, into the City's IT environment by employees visiting unscrupulous Web sites.
• The City should consider funding the implementation of a citywide Intranet that would facilitate
efficient and timely communication to employees. Potential cost savings could be achieved by
reducing the amount of paper-based communications.
• Firewall configurations and change control procedures should be formalized and implemented to
minimize the exposures that could result from unauthorized changes.
• We recommend that the City closely review the software license inventory. Potential litigation issues
may arise if the City is found to be in violation of software licensing agreements.
• We recommend that Information Technology department implement automated intrusion detection
mechanisms that could alert system administrators in the event of intrusion attempts. In addition,
Information Technology department should consider the creation of an incident response team, with
defined team member roles and responsibilities. Additional guidance on this matter can be obtained
from Carnegie Melton's Software Engineering Institute at http://www.cert.org/.
Prior Year's Management's Response
City staff concurs with the comment. The IT Strategic Plan has been completed. The plan is a
comprehensive 3 to 5 year plan that encompasses specific assessments and recommendations with regards
to Network Management and Security. This plan provides the City with concrete action steps, estimated
implementation costs, timelines and recommendations with regards to enhancing and improving the City's
Network Management and Security. In response, TTD has provided budgetary requests for the funds
necessary to implement these recommendations. Included in these budgetary requests are requirements for
additional full-time staff essential to the implementation of these recommendations; including, senior
network technicians, database administrators and a security architect. The recommendations outlined in the
IT Strategic Plan will be implemented as additional funds and staffing become available.
Current Year's Status
This observation is still partially applicable in the current year. An intrusion detection mechanism was not
implemented during fiscal year 2002.
Current Year's Management's Response
City staff concurs with the comments. The City has taken or will be taking the following actions to
address these concerns:
a. Physical Access Controls at remote sites. The Information Technology Department will be requesting
an appropriate level of funding during the current budget planning cycle, 2003-2004, to address
appropriately securing network equipment in all remote sites.
Appendix B-18
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
b. Internet Access Control Mechanisms. The Information Technology Department implemented a tool,
Websense, to address this issue in December 2000.
c. Citwide Intranet. The Information Technology Department implemented a citywide Intranet,
CITYNET, in 2001 and continues to expand the content continuously.
d. Firewall configurations and change control procedures. The Information Technology Department is
currently formalizing the documentation and processes for firewall configuration and change
process. This project will be completed by the end of the current fiscal year, 2002-2003.
e. Software License inventory. The Information Technology Department developed a comprehensive
software license documentation and inventory tracking system in 2001, which provides detailed
documentation on software license purchases and deployments.
f. Implementation of automated intrusion detection mechanisms. The Information Technology
Department will be requesting an appropriate level of funding during the current budget planning
cycle, 2003-2004, to address this concern.
Appendix B-19
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
1997-4 IT Organizational Structure
Observation
The Information Technology (IT) Department's organizational structure does not have sufficient human
resources to support the City's technology needs. Currently, the IT Department services over six hundred
(600) users at the Riverside building and approximately twelve hundred (1,200) external users with a
limited staff of thirty-nine (39) people. The IT Department's organizational structure lacks functional
depth.
Although the IT Department is structured in a way that allows for segregation of duties, the current under-
staffing situation at all staff levels is not conducive. for good management of resources and implementation
of administrative guidelines. The lack of functional depth within the department makes it difficult to find
replacements for certain IT positions in case of absences.
Recommendation
We recommend that the City evaluate the staffing size of the IT Department and ensure that the proper
actions are taken to address this issue.
Prior Year's Management's Response
Staffing continues to be a very high priority and a serious problem for Information Technology. Although
the City continues to operate under a hiring freeze, the administration has placed a priority on the
implementation of the strategic plan for Information Technologies. As operating finds become available,
this function will be funded to the extent possible.
Current Year's Status
This observation is still applicable in the current year. The IT Department has 68 staff and still has 12
additional vacant positions.
Current Year's Management's Response
The City concurs with this observation. The City has begun to address this issue by providing funding for
new positions as budgetary constraints allow. In the current fiscal year, 2002-2003, the City has provided
funding for the addition of the following IT resources: Data Base Manager, Security Administrator, IT
Technician III and two IT Technician II positions. Additional, resources will be requested in the new
budget cycle to address web expansion and Help Desk improvements.
Appendix B-20
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
1997-5 Disaster Recovery Plan
Observation
A disaster recovery plan has not been developed and implemented to recover the City's data processing
operations during an extended outage to the data center.
During an extended outage of the information system processing functions, vital business operations may
be unable to function since critical information is unavailable or inaccessible. This could significantly
affect the City's ability to meet residents' demands for services.
Recommendation
We recommend that management implement and document a disaster recovery and business continuity
plan that provides detailed procedures for the recovery of computer operations, including data processing
and telecommunication operations, in the event of an extended outage of information system processing.
This plan should incorporate the following items into the plan:
• Overview of the recovery process,
• Recovery timeline and major milestone requirements,
• Recovery organization functions,
• Team procedures,
• Alternate computer processing site requirements and procedures, and
• Plan maintenance and testing procedures.
We further recommend that this plan be tested on a periodic basis not to exceed 18 months. This test
should consist of recovering the critical mainframe information system resources at an altemate processing
site.
Prior Year's Management's Response
This observation is still applicable in the current year. See prior year's observation 2000-6 for
recommendation and management's response.
Current Year's Status
This issue has been expanded to include the entire City operations, beyond IT, and has been communicated
in prior year observation 2001-6.
Appendix B-21
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
Current Year's Management Response
See response as provided in observation 2001-6.
Appendix B-22
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
1997-6 User Access Codes
Observation
User access codes and Userids (Personnel Identification Numbers) are in clear text, unencrypted/unmasked
to users with security administrator level access within the SCI financial systems and the police systems
(including the Police Accounting system).
Security administrators of the SCI financial software and police systems have the capability to view and
print out all access codes and Uscrlds for this system. Hence, these individuals have the capability to
perform any type of transactions within the financial systems and remain undetected.
Recommendation
The City should evaluate whether or not it is feasible and cost beneficial to enable password encryption for
the SCI financial systems and the police systems.
Prior Year's Management's Response
We have investigated this finding and found the following:
1. Two SCI Security Administrators have the security to see user access codes and IDs (UACS) on
their CRT's. They enter this screen through a masked, user code area of their own - thus the screen is
not freely available. According to SCI, the purpose of this screen is to allow them to be able to
advise people who have forgotten their UACS and/or make changes. Someone standing behind the .
security administrative people, when the screen is open can see passwords.
2. Neither of the individuals were aware that they could print hard copy of same.
3. The SCI representative, Jim Kemp, said that they were aware of our security concerns, however,
were not contemplating changing their system to mask user codes, this feature is intended to assist
users who have forgotten their password. With regards to the printing issue, this is not an SCI
problem, but a Unisys issue. We have requested that SCI respond in writing to our security concerns.
Suggested Action at this time
The Finance Department should advise the security operators via memo (reminding them not to allow
people to view these particular screens) and the Finance Department should amend their Departmental
procedures to note this danger exists, and advise operators how to avoid same.
The Police System is a very old legacy based system and would be prohibitively expensive to address.
However, these considerations will be included in any forthcoming RFP for new systems.
Appendix B-23
CITY OF MIAMI, FLORIDA
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
September 30, 2002
Status of Prior Year's Observations, Recommendations,
and Management's Responses
Current Year's Status
This observation is still applicable in the current year.
Current Year's Management's Response
City staff concurs with the comment. Additionally, the City is in the process of researching a new ERP
system that will include adequate security that enables password encryption.