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HomeMy WebLinkAboutCC 2003-07-14 PresentationCITY 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: 7D a 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�' T. CP If you have any questions or need further information, please call me at 305-416124b.�ic ^t Sip N .. DG/ls �-°,, CA 0 THE CITY OF MIAMI, FLORIDA Fiscal Year Ending September 30, 2002 Ken Deon-Partner Donnovan Maginley-Senior Manager New Accounting Pronouncements Effective October 1, 2001, the City adopted four new pronouncements: ■ 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 Governments; ■ Portions of GASB Statement No. 38 — Certain Financial Statement Note Disclosures; and ■ Interpretation No. 6 —Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements. Key Features of the New Reporting Model Two New Statements Added: Government -Wide Statement of Net Assets Government -Wide Statement of Activities Government -Wide Financial Reporting ■ Prior focus was on the individual funds of the City. Focus is now on governmental activities The Big Picture Additional Long -Term Focus for Governmental Activities Governmental activities have traditionally focused on short-term inflows, outflows and. spendable financial resources. Government -Wide statements now focus on long-term perspective. Capital assets and long term obligations are included in the statement. Presentation of Program Cost Data ■ Government -Wide Statement of Activities present costs and direct revenues for each governmental functional activity or program. Program costs are offset by direct program revenue provided by customers, grantors or contributors. Program revenues are not expected to cover the cost of governmental activities. Other Features ■ The addition of Management's Discussion and Analysis (MD&A): ♦ to introduce and provide an overview of the basic financial statements provides analysis of key data and explains significant fluctuations. Infrastructure Reporting ■ Government-Wide statements now include e Infrastructure. ,.- Infrastructure includes roads, bridges, traffic signals, street lights, canals, etc. ■ Infrastructure assets acquired after June 30, 1.980 have now been capitalized and depreciated. Information on Major Funds ■ New model presents fund data for each of the government's major funds, as defined. ir The General Fund is always a major fund. Expanded Budgetary Reporting ■ Budgetary comparisons now include the original budget, final. amended budget and actual results. � Budgetary comparisons are presented for the City's General Fund and major Special Revenue Funds. City of Miami, Florida 2002 CAFR Financial Highlights Government -Wide Statement of Net Assets ul Used to report all that a government owns (Assets) and all that it owes (liabilities). Pw Assets include cash, investments, receivables, accrued interest, due from other governments and capital assets, including infrastructure. Liabilities include bonds, notes, claims, due to other- governments and accrued vacation and sick leave. Government -Wide Statement of Net Assets ■ Difference between assets and liabilities is Net Assets ■ Net Assets are divided into three categories: ♦ Invested in Capital Assets, net of related debt. ♦ Restricted Assets — Assets that are not accessible for general use because they are legally restricted. ♦ Unrestricted Assets — These are any remaining net assets. Summary of net assets (in thousands) 20022�u►� Current and ether assets � 562.708 `� 356.007 Capital assets 827.178 843.546 Total assets 1,389.886 1,199,552 ()thee Liabilities 120,877 1 ]4,215 Long-term liabilities outstanding 572,755 420,683 Total l i ahi l i t i es 693,632 534,899 Net assets: Invested in capital assets, net of debt 598,154 600.759 Restricted 115,032 131,733 Unrestricted (Deficit) (16,933) (67,838) Total net assets $ 696,253 664,654 GOVERNMENT WIDE STATMENT OF NET ASSETS (Graphical Comparison — in thousands) 2002 2001 ❑ Total assets ❑ Total liabilities ■ Net assets U Does a positive balance in net assets means that a government has money to spend? ♦ Recall that net assets invested in capital assets are reported net of related debt. These capital assets, however, cannot actually be used to repay the debt. Debt service payments must come from a combination of restricted and unrestricted net assets. A A positive balance in net assets in no way indicates that a government has surplus resources. What is the meaning of a deficit balance in Unrestricted Net Assets? ♦ Government's raise resources based on when liabilities will be paid rather than when incurred. Most governments have sufficient resources to meet current obligations but may not have resources to cover current and longi term liabilities. ♦ Deficit balance reflects extent to which a government has elected to defer to future periods the financing of certain liabilities. Government -Wide Statement of Activities ■ Statement of Activities is used to report all changes in a government's net assets. ■ Program. expense ■ -Program revenues = Net Program. Cost ■Net program cost indicates the amount which much be financed by the city's general revenues (taxes). Summary of Changes in Net Assets (in thousands) 2002 2001 Revenues: Program revenues: Charges for services $ 161,992 $ 158,935 Operating grants and contributions 5 l , l 38 45,188 Capital grants and contributions 23,053 11,510 General revenues: Property taxes 151,615 137,723 Franchise taxes 22,190 25,798 Utility taxes 58,315 38,556 Intergovernmental revenues 36,645 46,010 Investment earnings 10,646 16,150 Other 4,036 4,774 Total revenues 519,629 $ 484,644 Summary of Changes in Net Assets (in thousands) -continued 2002 2001 Expenses: General government 94,349 $ 48,995 Planning and development 13,290 12,947 Community development 47,186 48,367 Community redevelopment areas 6,125 5.481 Public works 53,950 58,493 Public safety 200,727 205,009 Public facilities 9,833 10,471 Parks and recreation 19,551 24,848 Interest on long-term debt 17,252 16,360 Unallocated depreciation 25,766 25,766 Total expenses 488,030 456,737 1ncrcase in net assets $ 31,600 $ 27,907 Government -Wide Statement of Activities (Program Revenues &Expenses -in thousands) 200,000 150,000 100,000 50,000 I❑ y y y ,x eC ti u CIOM fX r G a � v a a ❑ Revenues ❑ Expenses Governmental Fund Balances as of September 30, 2002 (in thousands) (;cncr�il Community Public General Other Total Development Services Government Governmental Governmental Tax hunds h'unds Reserved 5 3,205 S 279 S - 0.719 S 16,570 S 53.236 Unreserved 138,323) 7.5 9,655 80,342 188,601 424,255 Total Fund 5141,528 57,614 `9,655 587,060 $231,634 $477,491 Balances 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 GENERAL FUND BUDGET COMPARISON (Resources -in thousands) Original Final Actual GENERAL FUND BUDGET COMPARISON 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 (Appropriations -in thousands) Original Final Actual The New Governmental Reporting Model Questions?