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Home My WebLink AboutR-93-0578J-93-505 8/30/93 N RESOLUTION NO. 9 t3 — v A RESOLUTION, WITH ATTACHMENT(S), ACCEPTING THE CITY OF MIAMI, FLORIDA, COMPREHENSIVE ANNUAL FINANCIAL REPORT, AS ATTACHED HERETO, FOR FISCAL YEAR ENDED SEPTEMBER 30, 1992. WHEREAS, the Rules of the Auditor General of the State of Florida, Section 10.558, require the submission of the audit reports to the local government entity at a regular meeting of its governing body, and are to be retained by the entity as a public record; and WHEREAS, the external auditors of the City of Miami, Florida, Deloitte and Touche, in association with Sharpton, Brunson & Co., P.A; Verdeja, Iriondo & Gravier; and Watson & Company, P.A. have completed their audit of the City of Miami, Florida, Comprehensive Annual Financial Report for Fiscal Year ended September 30, 1992; and WHEREAS, the external auditors in planning and performing their audit have developed recommendations concerning certain matters related to the internal control structure and certain administrative and operating matters which are reported in the management letter; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: C0NIAi GI" OOMMSSION MEETI.`TC or Resolution NO. Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The City of Miami, Florida, Comprehensive Annual Financial Report, as attached hereto, for Fiscal Year ended September 30, 1992, is hereby accepted. Section 3. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 27th day of September 1993. XAVIER SUAREZ, MAYOR ATTEZT: MAT HIRAI CITY CLERK PREPARED AND APPROVED BY: RAFAEL 0. DIAZ DEPUTY CITY ARNEY APPROVED AS TO FORM AND CORRECTNESS: vA �f.-�WJMF1 SPA �AF NFIMF! A R 7 -2- 93- 578 r k iT]e k. 1 MA R AY t� • r �- 4�� 4�i? 'z r sty . t7.NOMR p b.; ri1.r r:i 31S : l _ >A a 1 '11v.e. •Y,{��flf Vi:�'1f. �'1•Af,11•t•t'T ��'•'.•°•.`.a; .'d.4•.w �'.y��•1,'N•�t.'.. ••! I••' t�+`•i�,•.".�"_••'►'r%1.�.�'�n..s' •�'Nis�ri •. i �, w ,1�'•t . I� .�', �' 'Y° r;�,d�r!�I��t!�-!y;"v'�'�?�.,'+'��y` r.; -•�'" �,,.P` • /• � {� . 1 ��., .'l,A •. � t• -! �P -�::1= U !!.� .',' L, '' i lip 4046 tit. �� t •�'�:'• 1• ' , ' � -�; r (' �i� ;•'_ - • 's ''.i•. 1 ' j►'s. ,. •,tl'r, •'�� ':.I'r ��•+.1s "...� �•1 !:.•1. '., 1 �v sv I. ., .. ''� �� ,. f. j ''`ij'. r. , • . • 1 �,.4_ S • � • N S ti i'� ` `' •fir • r �, � •1 .,' ,p� •'«, 11,. i.:��••�'!�,`Wq',�/�a..',.aj•r.+ L�ti• N. ,• r►•,.�'.�» 4r•r ,i• �;a.•, h ri•. •. ;i� 11'•� .� tx� • ` j•• .• •�••' .'••,•:fir • '••� �.• .•• • ra., ',t .••. •y•! • .'- N: ••.R.� .. '.. w. • a • �' �,�� • .. • ,,.. •� ! ! - • as •.'.` . i • .. •: ' Y oil �. • p .}'•`''Y ` v ;� A.: i•bx 5 `sx" n s `rt '.' 9 h p t ..f '�� • �t :Xia +• , , y ` ITWO loll m ...0 � Omob ws. FLO� + :.. - ".. +DMP I M. TSIVE ANN AL FI1 ANCIAL I .EP I 0''ED ER :1994YFAR 3Q � r �. ' �.. 1' t N Or, jorf Aiami ELECTED OFFICIALS CITY COMMISSION Xavier L. Suarez Mayor Victor De Yurre Vice -Mayor Miriam Alonso Commissioner Miller J. Dawkins Commissioner J. L. Plummer, Jr. Commissioner APPOINTED OFFICIALS Cesar H. Odio City Manager A. Quinn Jones, III City Attorney Matty Hirai City Clerk CERTIFIED PUBLIC ACCOUNTANTS DELOITTE & TOUCHE In Association With SHARPTON BRUNSON & COMPANY P.A. VERDEJA, IRIONDO, & GRAVIER WATSON & COMPANY P.A. 93- 578 t i 93- 578 i :.J i CITY OF MIAMI, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended September 30, 1992 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal...................................................... Certificate of Achievement ................................................ . Organizational Chart ...................................................... FINANCIAL SECTION Independent Auditors' Report .............................................. General Purpose Financial Statements Combined Balance Sheet —All Fund Types and Account Groups .................................................... Combined Statement of Revenues, Expenditures and Changes in Fund Balances —All Governmental Fund Types and Expendable Trust Funds ................................... Combined Statement of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual —General Fund, Special Revenue Funds and Debt Service Funds ................................................. Combined Statement of Revenues, Expenses and Changes in Fund Equity —All Proprietary Fund Types and Pension Trust Funds ................................................ Combined Statement of Cash Flows —All Proprietary Fund Types .............. . Notes to Financial Statements ........ . Combining, Individual Fund and Account Group Statements and Schedules General Fund: Comparative Balance Sheet ......................................... •.... . Schedule of Revenues, Expenditures and Changes in Fund Balance —Budget and Actual —Budgetary Basis ..................... . Special Revenue Funds: Combining Balance Sheet ............................................. . Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................................. Combining Statement of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual —Budgetary Basis —Miami Sports and Exhibition Authority, Downtown Development Authority, Rescue Services, Community Development, Law Enforcement Fund, Metro Dade Tourist Tax, Storm Sewer Water Fund, and Public Service Tax Special Revenue Funds ....... . ................... . Debt Service Funds: Combining Balance Sheet . .. ...................................... Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................................. Combining Statement of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual —General Obligation Bonds, and Other Special Obligation Bonds Debt Service Funds .................... . ....... . Capital Projects Funds. Combining Balance Sheet ............................................. , . Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................................. Exhibit/ Schedule Page 5-9 11 12 15 1 20-21 11 23 III 24-25 IV 26 V 27-28 29-57 A-1 63 A-2 64-65 B-1 70-71 B-2 72-73 B-3 74-77 C-1 81 C-2 83 G-3 84-85 D-1 89 D-2 90 J 1 93- 578 ell t Exhibit/ Schedule Page Enterprise Funds Combining Balance Sheet .............................................. E-1 94-95 Combining Statement of Revenues, Expenses and Changes in Fund Equity . ......................... E-2 96 ........... Combining Statement of Cash Flows ....................... E-3 98-99 Schedules of Operations —Budget and Actual ... ......................... E-4 100-104 Internal Service Funds Combinina Balance Sheet ......... I ........ I ...... F-1 107 Combining Statement of Revenues, Expenses and Changes in Fund Equity ...................... I..... F-2 108 Combining Statement of Cash Flows I ............ I ......... . ...... F-3 109 Schedules of Operations —Budget and Actual .............................. F-4 1 10-1 1 1 Trust and Agency Funds Combining Balance Sheet .................................. G-1 115 Combining Statement of Revenues, Expenditures and Changes in Fund Balances --Expendable Trust Funds .................. G-2 116 Combining Statement of Revenues, Expenses and Changes in Fund Balances --Pension Trust Funds ..................... G-3 117 Statement of Changes in Assets G-4 118 and Liabilities —Agency Funds ....................... General Fixed Assets Account Group: Schedule of General Fixed Assets —By Source .... ......................... H-1 121 Schedule of General Fixed Assets —By Function and Activity .................. H-2 122 Schedule of Changes in General Fixed Assets —By Function and Activity ........ H-3 123 Other Supplemental Information: Revenue and Special Obligation Bonds, Notes and Loans Principal and Interest Requirements ............................ 1-1 128-129 General Obligation Bonded Indebtedness Principal and Interest Requirements .... 1-2 130 STATISTICAL SECTION (Unaudited) General Fund Expenditures and Other Financing Uses by Function .............. 133 Percent of Total General Fund Expenditures and Other Financing Uses by Function ................................. 133 General Fund Revenues and Other Financing Sources ........................ 134 Percent of Total General Fund Revenues and Other Financing Sources ....... .. ............................... 134 Property Tax Levies and Collections Assessed Value of All Taxable Property ................................. I .. 136 Property Tax Rates and Tax levies Special Assessments Collections and Receivables ........................... 137 Ratio of Net General Bonded Debt to Net Assessed Value and Net Bonded Debt per Capita ......................... 137 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Fund Expenditures and Other Financing Uses .................................. 138 Schedule of Direct and Overlapping General Obligation Debt ......... . ........ 138 Schedule of Legal Debt Margin .......................................... 138 Current Debt Ratios .. ......................................... 139 Schedule of Revenue Bond Coverage Enterprise Funds with Outstanding Revenue Bonds ........................ 140 Ten Largest Tax Assessments .......................................... 141 BankDeposits......................................................... 141 Budding Permits ................................................. . ..... 142 Demographic Statistics —City of Miami 142 and Metropolitan Dade County Population ................................ General Statistical Data ........................................... . ..... 143 Growth Factors....................................................... 144 2 93- 578 F DART I INTRO D-U0"'TORY SECTION u 3 3 3 - 5'7 8 fRm,I RM i { i. j i { 3 r t, THIS PAGE INTENTIONALLY LEFT BLANK 4 sf' C4i#f �Ti�itti �r tr I i- �• March 30, 1993 G�`o-V'° ' The Honorable Mayor and Members of the City of Miami Commission City of Miami, Florida The comprehensive annual financial report of the City of Miami for the fiscal year ended September 30, 1992, is hereby submitted. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City of Miami. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain an understanding of the City"s financial activities have been included. The comprehensive annual financial report is presented in three sections: introductory, financial, and statistical. The introductory section includes this transmittal letter, the 1991 Certificate of Achievement for Excellence in Financial Reporting, and the City's organizational chart. The financial section includes the general purpose financial statements, the supplemental combining and individual fund and account group financial statements and schedules, and other supplemental information, as well as the independent auditors' report on the general purpose financial statements. The statistical section includes selected financial and demographic information, generally presented on a multiyear basis. REPORTING ENTITY AND ITS SERVICES This report includes all of the funds and account groups of the City. The City provides a full range of municipal services. These include public safety (police and fire), solid waste collection, public works, parks and public facilities, planning and zoning, development, housing and community development. The Department of Off -Street Parking ("DOSP") is an agency and instrumentality of the City whose board members are appointed by the City of Miami Commission. The Gusman Center for the Performing Arts and the Olympia Building (''G&O") are also operated by DOSP. DOSP and G&O are included as enterprise funds in this report. 17 The Downtown Development Authority ("DDA''), a dependent special district of the City, is governed by a board appointed by the City Commission The City Commission must approve the millage levied on the special taxing district established to fund DDA. DDA has been included in this report as a special revenue fund. The Miami Sports and Exhibition Authority ("MSEA'') is an independent and autonomous agency and instrumentality of the City whose voting members are appointed by the City Commission MSEA is disclosed within the various funds and account groups in this report The City of Miami, Florida, Health Fatuities Authority ('HFA"), a public instrumentality created under the Florida Health Facilities Authority Law, Chapter 154, Part III, Florida Statutes, is an agency established to issue revenue bonds. Administrative costs for issuing the bonds are included in the Other Special Revenue Funds. Debt obligations issued under the purview of the HFA do not constitute an indebtedness, liability or pledge of the faith or credit of the HFA or the City. Accordingly, such debt obligations are not included in the accompanying financial statements. 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") are essentially single -employer retirement plans under the administration and management of separate boards of trustees. FIPO and GESE are included as pension trust funds in this report. The City has determined that its degree of oversight and financial responsibility over the Miami Capital Development, Inc., the Miami Police Relief and Pension Fund, and the Miami Firefighters Relief and Pension Fund is so remote so as to exclude them from the City's reporting entity. ECONOMIC CONDITION AND OUTLOOK The City, situated at the mouth of the Miami River on the western shores of Biscayne Bay, is a main port of entry in Florida and the county seat of Metropolitan Dade County which encompasses 2,000 square miles of Florida's southeastern region. The City comprises 34.3 square miles of land and 19.5 square miles of water. Its proximity to the 93- S78 Caribbean and Latin America has been crucial to Miami's emergence as a hub for international business with countries in that region. The U. S Bureau of Census population count for the City was 358,458 as of April 1, 1990. This count is being challenged by the City According to City estimates its population was 380,700 in 1992, and is expected to increase to 400,000 by the year 2000 The City is almost completely urbanized with downtown boundaries comprising approximately 2 square miles. Downtown Miami experienced unprecedented growth during the 1 980's particularly in the development of commercial office space Completed projects represented an estimated investment of public and private funds in excess of $2.5 billion The City's diversified economic base is comprised of light manufacturing, trade, commerce, wholesale and retail trade, and tourism While the City's tourist trade remains an important economic force, the great gains the City has made in the areas of international banking and business, real estate and trans -shipment have diversified the economic base. On August 24, 1992, Hurricane Andrew hit landfall in Dade County, with the eye of the storm passing over the southern part of the county. Although the City of Miami was not directly impacted by the strongest forces of the hurricane, there was significant damage to City -owned waterfront facilities and trees and shrubs were heavily damaged throughout the City. Estimated costs associated with the disaster approximate $54 million, including damage to City properties, debris removal, public safety emergency services and loss of revenues. These costs are expected to be fully covered by insurance policies, the Federal Emergency Management Agency (FEMA) grant funds, and the State of Florida's Hurricane Andrew Recovery and Rebuilding Trust Fund. In spite of the property losses and human suffering caused by the storm, its recovery process has stimulated the City economy, as exemplified by the drop in the unemployment rate from 14.4% in September '92 to 9.2% in December '92. International trade, one of the City's main economic sectors, continues to experience very strong growth as evidenced by the increase in exports and imports through Miami's customs district, as reported in the '' 1992 State of Florida Statistics", prepared by the Trade Research Institute, Inc. of Miami. Exports during the year escalated to $16 billion, or a 19.8 increase over 1991 . Imports in 1992 reached $9.6 billion, or a 16.6% increase over the previous year. The strong growth in international trade in recent years has been sustained by the improvements in Latin American economies which are expected to further strengthen in future years. MAJOR INITIATIVES For the year. A Neighborhood Enhancement Teams Program ("NET") was implemented during the year NET offices, located in neighborhoods throughout the City, provide citizens with quick and effective access to municipal government. Community -based teams, composed of police 11 officers, fire fighters, code inspectors, fob counselors, and other City staff, provide services based on the needs of the residents of the individual neighborhoods The NET offices provided, invaluable services to City residents during the aftermath of Hurricane Andrew by providing food, water and channels of information, since many businesses were closed for several days, due to the loss of elecincal power The participative management approach implemented in prior years with the formation of Labor/Management Committees at departmental and Citywide levels made real progress during the year Most of the departmental committees became cohesive work!ng units producing concrete results For examo le, a new fire rescue truck was donated to the City by its employees through the initiative of a Labor/Management Cernmittee The Labor/Management approach can be credited also for maintaining the level of services to our residents with a downsized work force. The most significant capital project completed during the year was the major renovation of the Orange Bowl Stadium. Components of the $19 million Orange Bowl improvements project included a new sound system and scoreboard; new press box, replacement of the electrical and emergency systems, replacement of concrete joists, and improvements to bathrooms and concession stands. Pictured on the cover of this report is a football game at the renovated stadium. The $22 million Neighborhood Parks Capital Program is the largest ongoing capital program in the City. It covers the construction of a youth center, several new pools and renovations to forty five existing parks, which are now at various stages of construction. For the future. The City has maintained the same operating millage since fiscal year 1987-1988, The most significant fee assessed by the City, its solid waste fee, has not been increased since 1985. More effective utilization of the City's resources, obtained by consolidating operations and other cost -savings measures, has allowed the City to maintain the level of services with limited revenue increases As a result of damages caused by Hurricane Andrew, the City has created a separate ''Recovery Unit'' with the purpose of expediting the reconstruction of those facilities affected by the storm and pursuing cash advances and reimbursements from insurance carriers, FEMA and the State of Florida to ensure that the City's financial condition is not negatively affected by costs incurred as a result of the disaster. We are hopeful that the leadership of the City Commission and the partnership forged between the Unions and the City Administration will enable us to resolve the important issues the City will be facing in the future. FINANCIAL INFORMATION Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is 93- 578 rM N i J designed to provide reasonable, out not absolute, assurance that these objectives are met. The concept of reasonable assurance recognized that. (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management Sirlgla Audt As a recipient of federal, state and county financial assistance, the City also is responsible for ensuring that an adequate internal control structure is In place to ensure compliance with applicable laws and regulations related to those programs This internal control structure is subject to periodic evaluation by City management As a part of the City's single audit, tests are rTiade to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations Budgeting Controls. The objective of the budgetary controls maintained by the City is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Commission. Activities of the general fund, special revenue funds, debt service funds, enterprise funds, and internal service funds are included in the annual appropriated budget Project -length financial plans are adopted for the capital projects funds The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level, except for the General Fund, which is at the departmental level. The City also maintains an encumbrance, including pre -encumbrances, accounting system as one technique for accomplishing budgetary control. Open encumbrances for the general and capital projects funds are reported on a GAAP basis as reservations of fund balance at September 30, 1992. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. As with the financial section, all amounts scheduled in the remainder of this letter are expressed in thousands. General Fund Functions. The following schedule presents a summary of General Fund revenues and other financing sources for the fiscal year ended September 30, 1992, and the amount and percentage of increases and decreases in relation to prior year amounts. Increase Percent (Decrease) Percent of Revenues and Other Amount of From 1991 Increase Financing Sources (0005) Total (000s) tDecrease) Taxes $117.031 57 5% $(1,646) (1 4)% Licenses and permits 4,697 2.3 (76) (1 6) Intergovernmental 31,910 15 7 6.549 258 Intragovernmental 3,467 1 7 (3,004) (46 4) Charges for services 4,116 20 (714) (14 8) Interest 1,945 9 (1,493) (43 4) Other revenues 4,652 2 3 1,815 3 9 Operating transfers in 35,871 17 6 1,709 5 0 Total $203,689 100.0% $ 3,140 7 The Increase i the Intergovernmental revenues category in the preceding schedule is due to the revenue recognition of grants from other governments related to reimbursement of Hurricane Andrew costs approximating $9 million. The decline in intragovernmental revenues reflects a decrease in engineering and administrative charges to capital projects and other funds The reduction in the taxes category is due primarily to lower collections of franchise utility taxes affected by utility interruptions caused by Hurricane Andrew in addition, the collection rate for property taxes dropped as a result of a larger number of property owners challenging their assessments before the property acfjustMents hoard This review process gives property owners the opportunity to reduce their taxes in addition to delaying the payment of current taxes The following schedule presents a summary of General Fund expenditures and other financing uses for the fiscal year ended September 30. 1992, and the percentage of increases and decreases in relation to prior year amounts Increase Expenditures and Amount Percent of (Decrease) From 1991 Percent of Increase Other Financing Uses (0005I Total (0009) (Decrease) General govemmenl $ 17.614 8 6% $ (922) (5 0)% Public safety 135,130 660 6.208 4.8 Public improvements 13,822 6 7 61 4 Culture and recreation 10.046 4.9 (618) (5.8) Interest and fiscal charges 1,817 9 (178) (8.9) Other expenditures 10.635 5.2 361 3.5 Operating Transfer Out 15,799 7 7 1597) (3.6) Total $204.863 100 0% $ 4.315 The increase in public safety expenditures Is mostly attributable to emergency services provided in the aftermath of Hurricane Andrew. The overall decrease in most of the remaining expenditure categories is a result of the incentive retirement program implemented at the beginning of the fiscal year and the related downsizing of the work force. General Fund Balance. The fund balance of the General Fund was $3,949,000 on a GAAP basis as of the end of the fiscal year, compared to $5,123,000 for the previous fiscal year. Enterprise Operations. The City's enterprise operations are comprised of off-street parking facilities, a convention center, marinas, stadiums, an exhibition hall, golf courses, the Gusman Center for the Performing Arts and Olympia Building, a community center, the Solid Waste Department and the building and zoning operations of the Planning, Building and Zoning Department. Combined results of enterprise operations for the fiscal years 1992 and 1991 are summarized below. )i 1992 1991 (OOOs) (OOOs) Operating revenues .......... $ 41,143 $ 44,981 Operating expenses .......... (54,576) (54,260) Depreciation expense ........ (4,762) (4,886) Non -operating expenses —net (1,857) (5,396) Operating transfers —net ..... 16,095 14,706 Net loss ........... .... (3,957) $ (4,855) Fiscal year 1992 losses before operating transfers in for the solid waste and convention center operations amounted to $1 2.7 million and $6.3 million, respectively, requiring operating transfers of $1 2.0 million to the Solid Waste Enterprise Fund and $4.8 million to the Convention Center Enterprise Fund. Additional cash subsidies are projected for future years requiring support from the General Fund, the Public Service Tax Fund and the Metro - Dade Tourist Tax Fund. Risk Management Operations. Claims payable for the non -health portion of the Self Insurance Fund increased $14 million during the year to $68.6 million, including reserves for claims incurred but not reported (''IBNR'') of $17.9 million. The increase for the year is attributable to several cases amounting to $6.9 million related to disability pension payments that had been partially offset against workers compensation benefits. These cases were in litigation as of September 30, 1991, but were not reserved at the time since there was a pending appeal in front of the Supreme Court of Florida. Additionally, an actuarial practices change in computing reserves increased them by $3.6 million during the year. Historically the City has been accounting for its risk management operations within the Self Insurance Expendable Trust Fund. The long-term portion of claims payable, including IBNR reserves, is included in the General Long Term Debt Account Group. In November 1989, as a result of a lengthy research project, the Governmental Accounting Standards Board ("GASB") issued Statement No. 10 of the GASB- Accounting and Financial Reporting for Risk Financing and Related Insurance Issues. The statement, among other things, will require accounting for the City's risk management activities within the General Fund or an internal service fund. The City expects to conform to the provisions of the statement when required. Pension Trust Funds Operations. The book value of investments of the City -sponsored pension plans, the General Employees' and Sanitation Employees' Retirement Trust (GESE) and the Fire Fighters' and Police Officers' Retirement Trust (FIPO), increased from $655 million at September 30, 1991, to $705 million as of September 30, 1992. The percentages of pension benefit obligation funded were 99% for FIPO and 66% for GESE, as of the end of the fiscal year. Debt Administration. As of the end of the fiscal year, the City's net general obligation bonded debt was $185.4 million or 1.7% of taxable assessed value, well below the 15% limit of assessed value, or $1 .6 billion, imposed by its charter. Net direct general debt per capita was $485.26 as of year end. 8 The City maintained its 1991 bond rating of A+ by Standard and Poor's Corporation. Moody's Investors Service revised the City's bond rating to A from Al based on their perception of ''increasing financial pressures caused by revenue constraints, a weakened economy and growing service demand '' They further stated in their credit report that "comfort can still be derived from a conservative and sound city management which has kept the city's financial position balanced '' During 1992 each of the various principal and interest nstallmer is was paid as scheduled, including general obligation debt principal payments amounting to $1 1 .4 million During the fiscal year, the City issued its $4,415,000 Refunding Revenue Bonds, Series 1992, to advance refund the outstanding Certificates of Participation, Series 1986. The City also sold $10,000,000 General Obligation Bonds, Series 1992, for the purpose of funding various storm sewer improvements. MSEA issued its Special Obligation Refunding Bonds, Series 1992A and B. for $40,950,000 and $7,725,000, respectively. The DOSP sold its $4,725,000 Parking System Revenue Bonds, Series 1992A, to refinance the City's outstanding Subordinated Parking System Revenue Bonds, Series 1990, and an obligation under a participation agreement with the First Municipal Loan Council. Cash Management. The City follows the pooled cash concept, which allows greater investment flexibility, and consequently, a better investment return. Investments are competitively bid among banks and investment brokers enabling the City to obtain the highest rates available. MSEA, DDA, DOSP, G&O, GESE, FIPO and Deferred Compensation plans manage their own cash and investments, and are not included in the City's pooled cash system. Cash temporarily idle during the year was invested in obligations of the U. S. Treasury, prime commercial paper. The pension trust funds' investment portfolio also included corporate stocks and bonds. The City's investment performance ranks favorably when compared to the composite rate, an average of the telerate (daily rate). The telerate is an index of investment return performance for the type of investments governmental units typically make. The City's average yield on pooled investments for the year ended September 30, 1992 was 5.84%, while the composite rate was 4 85% for the same period. The City's investment policy is to minimize credit and market risks, while maintaining a competitive yield on its portfolio Accordingly, deposits were either insured by federal depository insurance or collateralized. Collateral on investments made by the Finance Department was held either by the City, its agent or a financial institution's trust department in the City's name. Of the City's non -pension investments, in excess of $37.5 million dollars in investments held at September 30, 1992 were classified in the category of lowest credit risk as defined by the Governmental Accounting Standards Board. Non -pension investments amounting to $9.8 million were held in the 93-- 578 City's name either by the counterpa, , ,inancial institution's trust department or an agent in the City's name Approximately $10 2 million of investments were held by the counterparty financial institution's trust department or its agent but not in the City's name. OTHER INFORMATION Independent Audit State of Florida Statutes and the City Charter require an annual audit by independent certified public accountants. The accounting firm of Deloiile & Touche, in association with the minority -owned accounting firms of Sharpton, Brunson & Co , P A. , Verdela, Inondo & Gravier, and Watson & Company, P A , has audited the general purpose financial statements of the City for the year ended September 30, 1992- The independent auditor;' report on the general purpose financial statements ana supplemental combining and individual fund and account group statements and schedules and other supplemental information is included in the financial section of this report Awards. The Government Finance Officers Association ("GFOA") awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal year ended September 30, 1991 . This was the tenth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement the City published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. 9 In addition, the ity also received the GFOA's Award for Distinguished Budget Presentation for its annual budget for the fiscal year beginninq October 1, 1991 In order to qualify for the Distinguished Budget Presentation Award, the City's budget document was judged to be proficient in several categories unludinq policy documentation, financial planninq, and organization Acknowled(iment.s The preparation of the comprehersive annual financial report on a tamely basis was made possible by the dedicated service of the enure staff of the Finance Department Each member of the department has orir sincere appreciation for the contributions made in the preparation of thus report 1 he quidance and cooperation of th(, City Commission rn planning and conducting the financial affairs of the City of Miami is greatly appreciated We also wish to express our aopreciation to our Certified Public Accountants, Deloitte & Touche, in association with Sharpton, Brunson & Co., P A.; Verdela, Iriondo & Gravier, and Watson & Company, P.A., for their cooperation and assistance. Sincerely, J Cesar H. Odio City Manager Carlos E Garcia, CPA Finance Director i E 4 � i Certificate of Achievement j. Y for Excellence in Financial 1 Re ortinc . Presented to E City of Miami, Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 1.99'1 A Certificate of Achievement for Excellence in Financial i Reporting is Presented by the Government Financial Officers j Association of the United States and Canada to j government units and public employee retirement systems whose comprehensive annual financial 1 reports (CAFR's) achieve the highest standards in government accounting and financial reporting. { i CE OFF, OFTNE J' UNITED STATES AND H President Y��c coerDAATNNI Executive Director i 7 11 93_ 578 i CITY OF 11O11AMI ORGANIZATIONAL CHART RESIDENTS OF MIAMI CITY COMMISSION CIVIL CITY DOWNTOWN MIAMI SPORTS DEPARTMENT OF ATTORNEY CLERK SERVICE MANAGER'S DEVELOPMENT 8 EXHIBITION OFF-STREET BOARD OFFICE AUTHORITY AUTHORITY PARKING HEALTH FACILITIES RISK MANAGEMENT FIRE POLICE AUTHORITY N INTERNAL AUDITS FINANCE AND REVIEWS ASSISTANT ASSISTANT ASSISTANT ASSISTANT ASSISTANT ASSISTANT ASSISTANT CITY CITY CITY CITY h CITY CITY CITY MANAGER MANAGER MANAGER MANAGER MANAGER MANAGER MANAGER MANAGEMENT PUBLIC COMMUNITY CONFERENCES PLANNING, HOUSING GENERAL SERVIC AND BUDGET WOpKS DEVELOPMENT CONVENTIONS AND BUILDING AND AND ADMINISTRATIO PUBLIC FACILITIES ZONING DEVELOPMENT SOLID WASTE PARKS, RECREATION AND PERSONNEL PUBLIC FACILITIES MANAGEMENT 1 f °ry I PART I I r+ it's G a.PiruarsicIAL SECTION i n f it1 y4'✓. f ;} fffr ti (( r M1.. f l' 93 578 ff I THIS PAGE INTENTIONALLY LEFT BLS 14 u J Deloifte & Touche <e } Certified Public Accountants INDEPENDENT AUDITORS' REPORT The Honorable Mayor and City Commissioners City of Miami, Florida: We have audited the accompanying general purpose financial statements of City of Miami, Florida as of September 30, 1992, and for the year then ended, listed in the foregoing table of contents. These general purpose financial statements are the responsibility of the administration of City of Miami. Florida. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We did not audit the financial statements of the following component units. Percentage of Total Fund Type Component Units Assets Revenues Downtown Development Authority —Special Revenue 0 0 Fund ...................... /o /o Department of Off -Street Parking —Enterprise Fund ..... 17% 23% Gusman Cultural Center and Olympia Building —Enterprise Fund o 0 Fire Fighters' and Police Officers' Retirement Trust —Pension Trust Fund .................. 63% 43% Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion on the general purpose financial statements, insofar as it relates to the amounts included for those entities, is based solely on the reports of the other auditors. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit Mrmbt?r w w� ::::: International 15 Suite 2500 100 Southeast Second Street Miami, Florida 33131-2135 Telephone: (305) 358-4141 Facsimile: (305) 358-1451 includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose 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 opinion. In our opinion, based upon our audit and the reports of other auditors, such general purpose financial statements present fairly, in all material respects, the financial position of City of Miami, Florida at September 30, 1992 and the results of its operations and the cash flows of its proprietary funds for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combinino and individual fund and account group financial statements and schedules listed in the foregoing table of contents, which are also the responsibility of the administration of City of Miami, Florida, are presented for purposes of additional analysis and are not a required part of the general purpose financ,al statements of City of Miami, Florida. Such additional information has been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, in our opinion, based on our audit and the reports of other auditors, is fairly presented in all material respects when considered in relation to the general purpose financial statements taken as a whole. March 30, 1993 f 5 r GENERAL PURPOSE (thy fCf:' tffiy FINANCIAL S`T°ATEMElNiNiS t 17 93-- 578 f ! 1. i 4 t f LEFT BLANK THIS PAGE INTENTIONALLY C 18 EXHIBI CITY OF MIAM1, FLORIDA COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1992 with comparative totals for the year ended September 30, 1991 (in thousands) Proprietary Fund Fiduciary Totals Governmental Fund Types Types Fund Types Account Groups (Memorandum Only: General General Special General Revenue Debt Capital Internal Service Protects Enterprise Service Trust and Fixed Agency Assets Long -Term Debt 1992 1991 ASSETS AND OTHER DEBITS Assets: Equity in pooled cash and investments [Notes 2(E) and 4] $ 970 $ 666 $3,600 $27,567 $ 33 $ 3,088 $ 2,010 $ - $ - $ 37,934 $ 55, Other cash and investments [Note 4] .... - 2,453 - - 8,327 - 38,118 - - 48,898 41, Pension cash and investments, including accrued interest [Notes 2(G) and 41 - - - - - - 704,971 - - 704,971 654, Receivables, net of allowance for doubtful accounts of $10,476. Taxes 2,088 - 1,250 - - - - - - 3,338 3• Accounts 6,917 4,839 - - 5,870 - - - - - 17,626 4,582 15, 5, Assessment liens [Note 2(C)] ..... . - - - 4,582 - - - - - - 7,851 - - 7,851 13, N Proceeds from securities sold ............ - - - - - 58 - 58 Pension members' contributions .......... Due from other funds [Note 51 ...... - - - 3,720 - - - - 17,237 862 - - - - - 21,819 17, .. Due from other governments .............. 8,586 1,492 - 325 9,935 503 - 852 11 - - - - - 20,852 852 6• Inventories[ Note 2(H)] Other assets ......... - - 132 12 - - - - 1,768 - 566 - - 2,478 1, Restricted cash and investments, including accrued interest [Notes 2(I) and 41........ - 5,193 3,628 10,620 9,049 - - - - 28,490 53, Property, plant and equipment, net 2(M) and 7] - - - ,, - ,- 697,445 659,[Notes Bond issuance costs net [Note 2(L)] ........ - - - - 1,400 114 - - - 1,514 1, Other debits Amount available for debt service: - 690 690 General obligation bonds Special and subordinated obligation debt - - - - 2,212 2,212 1 bonds. - - - - Amount available in Self Insurance Fund for - - - - 500 500 claims payable . .. I ........ - - - - Amount to be provided for retirement of general long-term debt - - - - 184,740 184,740 186, General obligation bonds . ....... - - - - Special and subordinate obligation debt - - - - 112,545 112,545 107, bonds. ..... Accrued compensated absences .......... - - - - - - - - - - - - - - - - 1 7,929 71,839 17,929 71,839 17, Claims and other payables . ............. - - - - _59, Total assets and other debits........... $18,693 $18,375 $8,478 $60,331 $199,684 $16,325 $753,585 $523,237 $390,455 $1,989,163 $1,903, (conlrr, See accompanying notes to financial statements. t EXHI (conth Proprietary Fund Fiduciary Totals Governmental Fund Types Types Fund Types Account Groups (Memorandum Ow General General Special Debt Capital Internal Trust and Fixed Long- Term General Revenue Service Projects Enterprise Service Agency Assets Debt 1992 19 LIABILITIES Vouchers and accounts payable ....... $ 3,525 $ 2,198 $ - $ 3,732 $ 13,064 $ 994 $ 1.013 $ - $ - $ 24,526 $ 1 Payable for securities purchased .. ....... - - - - - - 1 1 ,019 - - 1 1 ,019 1 Accrued expenses [Note 2(Q] ...... ... . 5,248 221 - 6 3,702 1,549 55 - 17,929 28,710 2 Due to other funds [Note 5] .. .......... - 4.467 720 - 15,794 838 - - - 21,819 1 Due to other governments - - - 879 233 - - - - 1,11 12 Deferred revenue 5,245 30 - 3,154 681 - - - - 9,110 Deposits. 726 476 - - 785 - 1,452 - - 3,439 Claims payable [Notes 8 and 10) - - - - - - 3,556 - 66,643 70,199 5 Matured bonds and interest payable ... .... - - 4,838 - - - - - - 4,838 Current portion of bonds and loan payable .... - - - - - 2,061 - - - 2,061 Payable from restricted assets Accrued interest - - - - 1,684 20 - - - 1,704 Current portion of bonds and loans payable - - - - 4,721 - - - - 4,721 Revenue bonds payable - net of current portion [Note 8) -- - - - 81,400 3,588 - - - 84,988 8 General obligation bonds payable [Note 81 .... - - - - - - - - 185,430 185,430 18 Special and subordinate obligation debt bonds - - - - 36,676 - - - 114,757 151,433 15 Deferred compensation plan liabilities .. .. - - - - - - 38,002 - - 38,002 3 Other payables - - 18 41 - 1,330 - - 5,696 7,085 Total liabilities 14,744 7.392 5,576 7,812 158,740 10,380 55,097 - 390,455 650,196 62 EQUITY AND OTHER CREDITS Contributed capital [Notes 2(P)] and 9 .. .... - - - - 81,790 11,801 - - - 93,591 8 Investment in general fixed assets .. ....... - - - - - - - 623,237 - 523,237 49- Retained earnings (deficit) Reserved [Notes 2(f) and 91 .......... - - - - 3,921 - - - - 3,921 Unreserved .. .............. - - - - (44,767) (5,856) - - - (50,623) (4 Fund balances [Note 2(P)J Reserved for. Employee retirement plan benefits ....... - - - - - - 701,439 - - 701,439 65 Encumbrances .. ........... 370 - - 16,883 - - - - - 17,253 3 Debt service . ............ - - 2,902 - - - - - - 2,902 Construction . ............... - - - 7,687 - - - - - 7,687 Miami Arena . .. ........... - 1,244 - - - - - - - 1,244 Unreserved [(Note 2(P)) Designated for hurricane loss . .......... - - - - - - 500 - -- 500 Designated for claims payments .......... - - - - - - (3,451) - - (3,451) - Designated for subsequent year's expenditures and approved projects ..... - 2,900 - 27,949 - - - - - 30,849 2 Undesignated ... 3,579 6,839 - - - - - - - 10,418 1 Total retained earnings (deficit)/fund balances 3,949 10,983 2,902 52,519 (40,846) (5,856) - - 722,139 69 Total equity and other credits ............ 3,949 10,983 2,902 52,519 40,944 5,945 _698.488 698,488 523,237 - 1,338,967 - 1,27 Total liabilities, equity and other credits .. . ..................... $18,693 $18,375 $8,478 $60,331 $199,684 $16,325 $753,585 $523,237 $390,455 $1,989,163 $1,90 +. See accompanying notes to financial statements. EXHIBIT II CITY OF MIAMI, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1992 with comparative totals for the year ended September 30, 1991 (in thousands) Fiduciary Fund Totals Governmental_ Fund Types _ Types IMemorandum Only) General Special Revenue Debt Service Capital Protects Expendable Trust 1992 1991 Revenues: Taxes (Note 31 ........................ $117,031 S38,248 $30,361 $ - $ - $185,640 S186,496 Licenses and permits ............... ..... 4,697 - - - - 4,697 4,773 Intergovernmental ............. .... . .... 31,910 21,747 3,721 2,370 5,344 65,092 59,463 Intragovernmental.. _ .................... 3,467 - - - 37,174 40,641 38,888 Charges for services .. ......... 4,116 - - - - 4,1 16 4.830 i Contributions from employees and retirees ... - - -- - 4,196 4,196 3,825 Assessment hen collections ................ - - 29 2,760 - 2,789 3,548 Interest . ... .. ..................... 1,945 1,011 837 2,881 337 7.01 1 10,545 Impact fees .. ....... . ........ - - - 516 - 516 853 :. Other ... 4,652 5,391 2,286 1,626 1,358 15,313 10,141 J Total revenues ....................... 167,818 66,397 37,234 10,153 48,409 330,011 323,362 Expenditures: I Current: i General ggovernment .................... 17,614 - - - - 17,614 18,536 I Public szfety .... ..................... 135,130 3,893 - - - 139,023 133,946 Public improvements ................... 13,822 - - - - 13,822 13,761 Personal services ..................... - - - - 1,633 1,633 1,902 Culture and recreation .................. 10,046 - _ _ 10,046 10,664 Grants and related expenditures .......... 20,005 _ 20,005 23,842 Contributions to pension funds (Note 121 - - - - 24,892 24,892 24,375 Insurance .. ....................... - - - - 2,514 2,514 1,016 Contractual services .................... - - - - 772 772 729 1 Economic development ................. - 1,578 - - - 1,578 1,453 Claim payments ..... ........... - - - - 22,880 22,880 17,184 Other .. ...... ...... ............... 10,635 3,675 608 1,158 16,076 24,186 Debt service. Principal retirement [Note 81 ............. 12,166 - - 12,166 1 1 .695 Interest and fiscal charges ............... 1,817 - 19,418 509 - 21,744 19.410 Capital outlay . . ....................... - - - 42,255 - 42,255 33.519 Total expenditures .................... 189,064 29,15 i 32,192 42,764 53,849 347,020 336,218 Excess (deficiency) of revenues over expenditures. . . ................ ... (21,246) 37,246 5,042 (32,611) (5,440) (17,009) (12,856) Other financing sources (uses). Operating transfers in ..................... 35.871 1,757 53,695 9,896 1,989 103,208 76,710 Operating transfers out ................... (15,799) (40,180) (57,157) (6,832) - (119,968) (94,837) Proceeds from debt issuance .............. - - 7,807 13,953 - 21,760 11,270 Redemption of debt ... - - (8,030) - - (8,030) (38,000) Proceeds of refunding bond ............... - - 40,950 _ 40,950 38,000 Payment to refunded bond escrow agent .... - - (40,502) _ (40,502) Bond issue cost - - (1,123 - - (1,123) 8,637 i Total other financing sources (uses) ..... 20.072 (38,423) (4,360) 17,017 1,989 (3,705) 1,780 } Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses ..... .......... (1,174) (1,177) 682 (15,594) (3,451) (20,714) (1 1,076) Fund balances at be inning of year ........... 5,123 12,160 2,220 68,113 500 88,116 99,253 Equity transfer from (to) other funds .......... - - - - - - (53) Fund balances at end of year ................ $ 3,949 $10,983 $ 2,902 $52,519 $ (2,951) $ 67,402 $ 88,124 See accompanying notes to financial statements 23 93- 578 CITY OF MIAMI, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL GENERAL FUND, SPECIAL REVENUE FUNDS AND DEBT SERVICE FUNDS YEAR ENDED SEPTEMBER 30, 1992 (in thousands) General Fund Encumbrances Actual Beginning Actual Variance GAAP of End of Budgetary Favorable Basis Year Year Basis Budget (Unfavorable) Revenues: ...... Taxes (Note 3) .................. $117,031 $ - $-- $117,031 $123,615 S (6,584) Licenses and permits .. ..................... I........... 4,697 - - 4,697 4.609 88 Intergovernmental ....... ............................... 31,910 - - 31,910 27,022 4,888 Intragovernmental ..................................... 3,467 - - 3,467 4,884 (1 ,41 7) Charges for services ..................................... 4,116 - - 4,116 6,052 (1.936) Assessment lien collections ................................ - - - - - - Interest . . ................. I .. , ............. 1,945 - - 1,945 2,883 (938) Other ..................................... 4,652 - - _4,652 _ 2.283 2,369 Total revenues . ................................... 167.818 - - 167,818 171,348 (3,530) Expenditures. General government ...................................... 17,614 105 36 17,545 18,077 532 Public safety ........................................... 135,130 89 275 135.316 135.118 (198) Public improvements ..................................... 13,822 - 2 13,824 14.294 470 Culture and recreation .................................... 10,046 15 18 10,049 10,540 491 Economic development ................................... - - - - - - Other . . ..... ..... ......................... 10,635 186 39 10,488 9,574 (914) Debt service Principal retirement [Note 8) ............................. - - - - - - Interest and fiscal charges ............................... 1,817 - - 1,817 2,184 367 Total expenditures .................................. 189,064 395 370 189,039 189,787 748 Excess (deficiency) of revenues over expenditures ......... (21,246) (395) (370) (21,221) (18,439) (2,782) Other financing sources (uses): ........... Operating transfers in.... .... ... .. ........... 35,871 - - 35,871 31,839 4,032 Operating transfers out .. ......... ........... I ...... (15,799) - - (15,799) (18,374) (2,575) Total other financing sources (uses) .................... 20,072 - - 20,072 13,465 1,457 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses ... .................. (1,174) $ (395) $(370) $ (1,149) $ (4,974) $ (1,325) Fund balances at beginning of year ........ ................... 5,123 Fund balances at end of year ................................ $ 3,949 (1) Does not include funds for which budgets have not been adopted. See Note 2(D)(1). See accompanying notes to financial statements. 24 93- 578 r� CITY OF MIAMI, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1992 with comparative totals for the year ended September 30, 1991 (in thousands) Fiduciary Proprietary Fund Types Fund Types Internal Pension Enterprise Service_ Trust Operating revenues: Charges for services ...... $ 41,143 $15,581 $ - Contnbuuons from employers [Note 12] . ...... - - 19,347 Contributions from employees and retirees ........ - - 13,337 Net realized gain (loss) on sale of investments ..... - - 33,250 Interest and dividends ... ... ................. - -- 31,691 Total operating revenues ..................... 41,143 75,581 97,625 Operating expenses. Personal services ........................... 29,405 9,573 2,140 Contractual services ........................... 6,823 1,158 - Materials and supplies ......................... 443 3,050 - Benefit payments ............................ - - 42,800 Refunds..... .................... - - 2,651 Utilities ...................................... 1,297 1,282 - Intragovernmental charges ..................... 3,727 - - Other ....................................... 12,881 2,146 4 Total operating expenses ..................... 54,576 17,209 47,595 Operating income (loss) before depreciation expense ................................ (13,433) (1,628) 50,030 Depreciation expense ........................... 4,762 3,010 - Operating income (loss) ...................... (18,195) (4,638) 50,030 Non -operating revenues (expenses): Interest income ......... .. ............ 841 261 - Interest and fiscal charges ...................... (7,866) (78) - Other ..... .. .............................. 5,168 1,500 129 Net non -operating revenue (expenses) .......... (1,857) 1,683 129 Income (loss) before operating transfers ........ (20,052) (2,955) 50,159 Operating transfers in ........................... 18,651 665 - Operating transfers out ... ............ I ......... (2,556) - Net operating transfers ....................... 16,095 665 - Net income (loss) ........................... (3,957) (2,290) 50,159 Retained earnings (deficit) at beginning of year ...... (36,889) (3,566) 651,280 Equity transer to other funds .................. - - Retained earnings (deficit) at end of year ........... (40,846) (5,856) 701,439 Contributed capital at beginning of year ............ 74,150 - - Contributions from other governments .......... 7,395 1 1,704 - Contributions from other funds ................ 245 97 - Equity transfer to other funds ................. - - - Contributed capital at end of year ................. 81,790 1 1,801 - Total fund equity ............................ $ 40,944 $ 5,945 $701,439 See accompanying notes to financial statements. 26 EXHIBIT IV Totals (Memorandum Only) 1992 1991 $ 56,724 Sr 60,225 19,347 18,783 13,337 14,269 33,250 26,753 31,691 35,749 154,349 155,779 41 ,1 18 44,247 7,981 6,978 3,493 3,911 42,800 33,259 2,651 2,152 2,579 2,982 3,727 3,731 15,031 1 1,190 119,380 108,450 34,969 47,329 7,772 7,920 27,197 39,409 1,102 1,228 (6,79 ( 7 1,967 (45) (5,596) 27,152 33,813 19,316 21,481 (2,556) (3,354) 16,760 18,127 43,912 51,940 610,825 558,486 - 399 654,737 610,825 74,150 85,876 19,099 407 342 1,858 - (2,287) 93,591 85,854 $748,328 $696.679 93- 578 1 EXHIBIT III 1 Special Revenue(1) Debt Service(1) Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) .� $ 37.564 $ 37,468 $ (96) $25,41 1 $ 25,171 $ (240) 26,810 16,938 (9,872) 3,079 3,721 642 - - - 572 29 (543) 1,224 630 (594) 751 676 (75) 526 2,578 2,052 - 2,286 2,286 1 66,124 57,614 (8,510) 29,813 31,883 2,070 1 11,034 3,893 7,141 - - - 17,798 14,439 3,359 - - - 1,639 1.578 61 - - - 1,472 1,854 (382) 654 278 376 - - - 11,875 12,166 (291) - - - 14,955 16,575 (1,620) 31.943 21,764 10,179 27,484 29,019 (1,535) 34,181 35,850 1,669 2,329 2,864 535 1,501 1,407 (94) 1,760 2,279 (519) ! (35,678) (36,195) (517) (4,089) (4,651) (562) (34,177) (34,788) (61 1) (2,329) (2,372) (43) I� ! $ 4 1,062 $ 1,058 $ - 492 $ 492 7,812 279 $ 8,874 $ 771 25 93-- 578 EXHIBIT V CITY OF MIAMI, FLORIDA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 1992 with comparative totals for the year ended September 30, 1991 (in thousands) Proprietary Fund Totals Types (Memorandum Only) Internal Enterprise Service 1992 1991 Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) . .. ....................... $(18,195) $(4,638) $(22,833) $ (18,866) Adjustments to reconcile operating income to net cash provided by operating activities: Loss (gam) on dispositions and sale of property, plant and equipment .................... 115 26 141 67 Depreciation and amortization . .............................. 4,797 3,093 7,890 8,170 (Increase) decrease in assets. Accounts receivable (net) .................................... 233 (24) 209 (1,673) Inventories. ......................... — 39 39 (86) Prepaid expenses and other current assets ................ . .... 123 — 123 — Deposits and other assets ................................. 90 — 90 — Due from other funds ... ................. . ................. 580 2,650 3,230 (788) Due from other governments ................................. (9,935) (479) (10,414) — Increase (decrease) in liabilities Vouchers and accounts payable . ............................ 6,668 323 6,991 (1,501) Accrued expenses ................................... 22 4 26 2,614 Due to other funds ................................... 5,306 341 5,647 5,221 Due to other governments ................................... 233 233 — Deferred revenue ..................................... ( 118) _ (118) (720) Deposits refundable ........ ............................... 41 — 41 227 Other accruals ............................................. (21 (8) (10) (127) Total adjustments ......................................... 8,153 5,965 14,118 11,404 j Net cash provided by operating activities ....................... (10,042) 1,327 (8,715) (7,462) Cash flows from non -capital financing activities: Increase (decrease) in advances ................................ (108) — (108) 361 Operating transfers in ......................................... 19,136 665 19,801 21,481 Operating transfers out ....................................... (3,041) — (3,041) (3,354) Other...................................................... — 1,545 1,545 — Net cash provided by non -capital financing activities ............. $ 15,987 $ 2,210 $ 18,197 $ 18,488 (Continued) b See accompanying notes to financial statements. I I 27 i i 93— 578 f EXHIBIT V (continued) - CITY OF MIAM1, FLORIDA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 1992 with comparative totals for the year ended September 30, 1991 (in thousands) Proprietary Fund Totals Types (Memorandum Only) Internal Enterprise Service 1992 1991 Cash flows from capital and related financing activities: Capital expenditures .......................................... $(12,344) $(1,928) $(14,272) $ (8,134) Contributed capital ........................................... 632 97 729 — Contributions................................................. 7,431 — 7,431 407 Interest paid on long term debt ................................ (7,797) (78) (7,875) (8,700) Proceeds from sale of Equipment ................... . ........... — 26 26 — Proceeds from loan payable ................................... — 536 536 2,040 Principal payment on debt ..................................... (8,870) (5,240) (14,1 10) (3,437) Bond proceeds .... ......................................... 4,691 4,403 9,094 — Borrowings under participation agreement ........................ (1,065) — (1,065) — Other payments ............................................. (312) — (312) (87) Net cash used for capital and related financing activities ........ I ........................ (17,634) (2,184) (19,818) (17,911) Cash flows from investing activities: (increase) decrease in amounts due from other funds ........................................... 108 — 108 (161) Interest income .............................................. 6,014 261 6,275 1,228 Payments received on notes receivable .......................... — — — 60 Proceeds from maturity of investments .......................... 29,956 — 29,956 1,494 Purchase of investments .............................. I ....... (29,893) — (29,893) (1,493) Other..................................................... — — — 2,095 Net cash provided from investing activities ....................... 6,185 261 6,446 3,223 Net increase (decrease) in cash and cash equivalents ....................................... (5,504) 1,614 (3,890) (3,662) Cash and cash equivalents at beginning of year ................... 22,913 1,474 24,387 28,049 Cash and cash equivalents at end of year ........................ $ 17,409 $ 3,088 $ 20,497 $ 24,387 Supplemental disclosure of non cash activities: Equity transfer to other funds .......................... . ....... $ — — $ — $ (24) Contributions from other funds ................................. $ — — $ — $ 600 See accompanying notes to financial statements. 28 33- 578 `CITY OF MIAMI, FLORID. NOTES TO FINANCIAL STATEMENTS 1. GENERAL DESCRIPTION The City of Miami, (the ''City''), in the County of Dade, was incorporated !n 1896, and con-iprises approximately 34 square miles of land and 20 square miles of water The City operates under the Commission/City Manager form of gov- ernment and provides the following services public safety, public works, solid waste, Darks and recreation, public facili- ties, planning, zoning, housing, and community develop- ment Metropolitan Dade County (the 'County' ) is a seoa- rate governmental entity and its financial statements are not included in this report The Florida Legislature, in 1955, ,approved and submitted to a general election, a constitutional amendment designed to give a new form of government to the County The Coun- ty is, in effect, a municipality with governmental powers ef- fective upon twenty-seven cities and unincorporated areas, mcludina the City of Miami. It has not displaced or replaced the cities, but supplements them. The County can take over particular activities of the Oty's operations (1 ) if the services fall below minimum standards set by the County Commis- sion, or (2) with the consent of the governing body of the City Since its inception, the Metropolitan Dade County Govern- ment has assumed responsibility on a county -wide service basis for a number of functions, including county -wide po- lice services, complementing the municipal police service; uniform system of fire protection, complementing the mu- nicipal fire protection; consolidated two-tier court system; consolidation of water and sewer services; coordination of the various surface transportation programs, installation of a central traffic control computer system, merging all public transportation systems into a county system: effecting a combined public library system, and centralization of the property appraiser and tax collector functions 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND REPORTING PRACTICES The financial statements of the City have been prepared in accordance with generally accepted accounting principles (''GAAP") as applied to governmental units. The Govern- mental Accounting Standards Board ("GASB'') is the stan- dard -setting body for governmental accounting and financial reporting. The more significant of the City's accounting poli- cies are described below. A. Financial Reporting Entity For financial reporting purposes, the City includes those funds, account groups, agencies, boards, commissions and authorities that are generally controlled by or dependent on the City. t-r)ntrol by or dependence on the City is deter- mined on the basis of such factors as budget adoption, tax- ing authority, outstanding debt secured by revenues or gen- eral obligations of the City, obligation of the City to finance any deficits that may occur or receipt of significant subsidies from the City. The following is a brief review of each of the J 29 component units addressed in defining the reporting entity for the City (1) Included within the entity DOWNTOWN DEVELOPMENT AUTHORITY ("DDA") — The DDA is governed by a Board appointed by the City Commission The Commission must approve the millage levied on the speccal taxinq district established to fund DDA DDA has been included within the report- ing entity as a special revenue fund MIAMI SPORTS AND EXHIBITION AUTHORITY ("MSEA'') — The MSEA was created to promote the development of sports, convention and exhibrtion facili- ties within the City using the City's portion of the 3% Convention Development Tax The City Commission must approve the MSE.A's board membership and op- erating budget. The vanous funds and account groups of the MSEA have been included within the reporting entity. DEPARTMENT OF OFF-STREET PARKING (''DOSP") — The 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 ser- vices, to approve the DOSP operating budget and to authorize the issuance of revenue bonds The DOSP is included within the reporting entity as an enterprise fund. The City has also authorized the Off -Street Parking Board to administer the operations of the Maurice Gus - man Cultural Center and the Olympia Building, which are properties owned by the City. Such operations are separately accounted for within the DOSP reporting en- tity under the title of the "G&O Enterprise Fund In the event that operating revenues of the G&O Enter- prise Fund are not sufficient to cover its operating ex- penses, the DOSP or the City will provide any necessa- ry cash requirement subject to authorization by the City Commission CITY OF MIAMI FIRE FIGHTERS' AND POLICE OF- FICERS' RETIREMENT TRUST ("FIPO'') and CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST ("GESE")—Both FIPO and GESE are essentially single -employer public employee retirement systems under the administration and management of separate Boards of Trustees and are included within the reporting entity as pension trust funds. HEALTH FACILITIES AUTHORITY ("HFA")—The HFA is an agency established under authority of State Stat- ute to issue revenue bonds. Administrative costs for is- suing the bonds are included in the Other Special Funds. The City Commission must approve HFA's 93- 578 City of Miami, Florida Notes to Financial Statements board membership Debt obligations issued under the purview of the HFA do not constitute an indebtedness, liability or pledge of the faith or credit of the HFA or the City. Accordingly, such debt obligations are not includ- ed in the accornpanymg financial statements (2) Excluded from the entity MIAMI CAPITAL DEVELOPMENT, INC ("MCDI")— MCDI is a non-profit corporation which facilitates busi- ness development within the City under a delegate agency agreement with the City by providing financial assistance to entrepreneurs and thus fosters city wide and neighborhood economic development MCDI's scope of services is not limited solely to the City limits and the City Commission has limited ability to influence operations or the appointment of MCDI's Board of Di- rectors, representing principally the private business and financial community. MIAMI POLICE AND FIREFIGHTERS RELIEF AND PENSION FUNDS —These money purchase benefit plans, established under Florida State Statutes Sec- tions 175 and 185 are funded solely by certain excise taxes collected by the State of Florida. The City has no financial oversight responsibility for these plans, nor are plan benefits financially integrated with those provided under the City's FIPO Trust The respective Boards of Trustees are independent of the City Commission (See Note 12(f)). B. Basis of Presentation The financial transactions of the City are recorded in individ- ual funds and account groups. Each is accounted for by providing a separate set of self -balancing accounts that comprise its assets, liabilities, reserves, fund equity, reve- nues and expenditures or expenses and other financing sources or uses. The various funds and account groups are reported by generic classification within the financial state- ments. The following fund types and account groups are used by the City: Governmental Funds Governmental funds are those through which most govern- mental functions of the City are financed. The acquisition, use and balances of the City's expendable financial re- sources and the related current liabilities (except those ac- counted for in proprietary funds) are accounted for through governmental funds. The following are the City's govern- mental fund types: General Fund —The General fund is the general operating fund. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds —Special revenue funds are used to account for the proceeds of specific revenue sources 011 (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service Funds --Debt service funds are used to ac- count for the accumulat,on of resources for, and the pri%!- ment of, general long -tern debt principal, interest and relat- ed costs Capital Projects Funds —Capital projects funds are used to account for financial resources to he used for the acquisi- tion or construction of major capital facilities (other than those financed by proprietary funds) Proprietary Funds Proprietary funds are used to account for the City's organi- zations and activities which are similar to those often found in the private sector This means that all assets, liabilities, equities, revenues, and expenses related to the City's busi- ness activities —where net income and capital maintenance are measured —are accounted for through proprietary funds. Enterprise Funds —Enterprise funds are used to account for operations: • that are financed and operated in a manner similar to private business enterprises —where the interest of the City is that the costs of providing goods or ser- vices to the general public on a continuing basis be financed or recovered primarily through user charges, or • where the City has decided that periodic determina- tion of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Certain enterprise funds have historically operated at a loss and have required operating subsidies from the General fund. If future operations are not sufficient to offset these deficits, the City will continue to support these activities from the General fund or other discretionary funds (See Note 9). Internal Service Funds —Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agen- cies of the City, on a cost -reimbursement basis. Fiduciary Funds Trust and Agency Funds —Trust and agency funds are used to account for assets held by the City in a trustee ca- pacity or as an agent for individuals, private organizations, other governments, and/or other funds. These include ex- pendable trust, pension trusts, and agency funds. The City's expendable trust funds (Self -Insurance and Pension Administration) are accounted for in essentially the same manner as governmental funds. Pension trust funds (FIPO 93- 578 A I City of Miami, Florida Notes to Financial Statements and GESE) are accounted for in essentially the same man- ner as proprietary funds since capital maintenance is criti- cal. The City's agency funds are custodial in nature (assets equal liabilities) and used to account for deposits held under issuance of a cable T V license and assets field under three deferred compensation plans for certain employees. Account Groups Account groups are used to establish accounting control and accountability for the City's general fixed assets and the unmatured principal of its general long-term obligations. The two account groups are not funds. They do not reflect available financial resources and related liabilities —but are accounting records of the general fixed assets and general long-term obligations General Fixed Assets —This account group is used to ac- count for all fixed assets of the City, other than those ac- counted for in the enterprise and internal service funds. General Long -Term Debt —This account group is used to account for the long-term portion of clams payable, ac- crued compensated absences, lease purchase obligations and outstanding principal balances of long-term debt, other than revenue and special obligation bonds payable and oth- er long-term liabilities recorded in the enterprise funds and internal service funds. Totals (Memorandum Only) Amounts in the "Totals (Memorandum Only)" columns in the combined financial statements represent a summation of the combined financial staternent line items of the fund types and account groups and are presented for analytical purposes only. The summation includes the City's various fund types and account groups that use different bases of accounting, includes interfund transactions that have not been eliminated and the caption ''Amounts to be provid- ed," which is not an asset in the usual sense. Consequent- ly, amounts shown in the '"Totals (Memorandum Only)'' columns are not comparable to a consolidation and do not represent the total resources available or total revenues and expenditures/expenses of the City. C. Basis of Accounting The accounting and financial reporting treatment ap- plied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are ac- counted for using a current financial resources measure- ment focus. With this measurement focus, only current as- sets and current liabilities generally are included on the balance sheet. Operating statements of these funds pre- sent increases (i.e., revenues and other financing sources) and decr ases (i.e., expenditures and other financing uses) in net curs ent assets. All proprietary funds, nonexpendable trust funds and pension trust funds are accounted for on a flow of economic 31 resources measurement focus. With this measurerent fo- cus, all assets and all liabilities associated with the opera- tion of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund - type operating statements present increases (e g., reve- nues) and decreases (e g , expenses) in net total assets. (1) Modified Accrual All governmental funds and expendable trust funds are accounted for using the modified accrual basis of ac- counting. Their revenues are recognized in the period in which they become susceptible to accrual i e , when they become measurable and available to pay liabilities of the current period. Ad valorem taxes, utility service taxes, charges for service, investment earnings, fines and forfeitures, franchise taxes, are susceptible to ac- crual when collected in the current year or within 60 days subsequent to September 30th. A one year avail- ability period is used for revenue recognition for all oth- er governmental fund revenues. Occupational I!cense revenues collected in advance of pPnods to which they relate are recorded as deferred revenues Where grants revenue is dependent upon expenditures by the City, revenue is accrued as such expenditures are incurred Special assessments are recorded in the Capital Protects fund as receivables and deferred revenue when levied and recognized as revenue when due, pro- vided they are collected in the current year or within 60 days subsequent to September 30th. The City does not issue special assessment bonds. Special assess- ment projects are financed primarily with general obli- gation bonds. Expenditures under the modified accrual basis of ac- counting are generally recognized when the related fund liability is incurred and expected to be liquidated with available resources. Exceptions to this general rule include principal and interest on general long-term debt which are recognized when due or when debt service funds resources have been provided during the current year for payment of principal and interest due early in the following year. The agency funds are custodial in nature and do not in- volve measurement of results of operations. They are accounted for under the modified accrual basis of ac- counting. (2) Accrual All proprietary and pension trust funds use the accrual basis of accounting. Under this method, revenues are recorded when earned, and expenses are recorded when incurred. 93- 578 i City of Miami, Florida Notes to Financial Statements D. Budgetary Policy (1) Budget Policy The City Commission annually adopts a budget ordi- nance for all governmental funds of the City, except for the following funds. I • Other Special Revenue Funds • MSEA Subordinate Obligation Note Debt Service Fund • MSEA Special Obligation Bonds Debt Service Fund • MSEA Special Obligation Refunding Bonds Debt Ser- vice Fund • All Capital Projects Funds Annual operating budgets are adopted on a basis sub- stantially consistent with generally accepted account- ing principles (GAAP) except that budgetary compari- sons for the General fund include encumbrances as expenditures. Adjustments necessary to compare the results of oper- ations in the special revenue and debt service funds as presented in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances (Exhibit II) to that presented in the Combined Statement of Reve- nues, Expenditures and Changes in Fund Balance — Budget and Actual (Exhibit III) are as follows (in thousands): Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures Fund and Other Balance Financing September Special Revenue Funds Uses 30, 1992 Actual —Exhibit II ... . . $(1 ,177) $ 10,983 Plus (less) funds not budgeted: Other Funds ... 2,239 (2,681) Plus net effect of MSEA activity not budgeted — 572 Actual —Exhibit III $ 1,062 $ 8,874 Debt Service Funds Actual —Exhibit II $ 682 $ 2,902 Plus (less) Funds not Budgeted: MSEA Subordinate Obligation Debt. 48 (4) MSEA Special Obligation Bonds .... .. (221) (2,110) MSEA Special Obligation i Refunding Bonds (17) (17) i Actual —Exhibit III ...... $ 492 $ 771 In addition, capital project funds are budgeted on a to- tal project basis for which annual budgets are not avail- able. The City also adopts non -appropriated operating budg- ets for the proprietary funds substantially on a GAAP basis, with certain exceptions Such exceptions in- clude • Debt principal payments are budgeted as debt ser- vice. The portion of debt service representing princi- pal payments reduces the related liability on a GAAP basis. • Certain non -operating expenditures for capital outlays are not budgeted. (2) Budget —Legal Compliance The City follows these procedures in establishing the budgetary data reflected in the financial statements: • Prior to August 31 st, the City Manager submits to the City Commission a proposed operating budget for the fiscal year commencing the upcoming. October 1 st. The operating budget includes proposed expendi- tures and the means of financing them. • Public hearings are conducted to obtain taxpayer comments. • Prior to October 1 st, the budget is legally enacted through passage of an ordinance. • Overall changes to the adopted budget must be ap- proved by a majority vote of the Commission. • The Commission may transfer among departments any part of an unencumbered balance of an appropri- ation to a purpose for which an appropriation for the current year has proved insufficient. At the discretion of the City Managers unencumbered balances up to $50,000 may be transferred among line items within departmental budgets adopted by the City Commis- sion. At the close of each fiscal year, the unencum- bered 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 classifica- tion detail, however, budgetary control is legally maintained at the fund level except for the General fund, which is maintained at the departmental level. Budgeted amounts in the accompanying financial statements are as originally adopted, or as amended by the City Commission throughout the year. During the year, supplementary appropriations were approved to- taling approximately $31 million funded by $21 million related to the sale and repayment of Tax Anticipation Notes, Series 1991. J3-- 5`78 S J City of Miami, Floridc, Notes to Financial Statements (3) Encumbrances -' Encumbrance accounting, under which purchase or- ders, contracts, and other commitments for the expen- diture of monies are recorded in order to reserve that portion of the applicable appropriation, is employed in the General and Capital Projects. funds On the non- ) GAAP budgetary basis, encumbrances are recorded as expenditures of the current year On a GAAP basis, en- cumbrances outstanding at year-end are reported as ! reservations of fund balance since they do not consti- tute expenditures or liabilities since the cornrnitments will be honored during the subsequent year b (4) Excess of Expenditures Over Appropriations in Individual Funds Special Revenue Funds. Miami Sports and Exhibition Authority $ 351 Rescue Services 16 Metro Dade Tourist Tax ............ 31 Debt Service Funds: Other Special Obligation Bonds ...... 2,615 (5) Deficit Fund Balance Special Revenue Funds: Rescue Services $ 68 Trust and Agency Funds: Self -Insurance Fund ................ 2,951 See Note (9) for disclosure of Proprietary Funds' Deficit Fund Balances. E. Pooled Cash and Investments The City maintains an accounting system in which substan- tially all cash, investments and accrued interest are record- ed and maintained in a separate group of accounts. All such cash and investments, including accrued interest, are re- flected as pooled cash and investments. Investments are stated at cost or amortized cost, which approximates mar- ket. All investments consist of U.S. governmental obliga- tions and prime commercial paper. Interest income is allo- cated based upon the approximate proportionate balances i of each fund's equity in pooled cash and investments. No ( interest is charged to funds having deficit balances. Individual fund overdrafts (deficit pooled cash accounts) have been reported as an interfund payable in the respec- tive fund with an offsetting interfund receivable reported, in another fund (See Note 5). The funds listed below main- tained separate cash and investment balances and are re- ported as "Other cash and investments'' in the accompany- ing financial statements. In addition, certain other City funds maintain separate restricted cash and investment accounts in compliance with debt requirements (See Notes 4 and 8). 33 J • Miami Sports and Exhibition Authority Special Reve- nue Fund • Downtown Development Authority Special Revenue Fund • Special Obligation Bonds Debt Service Fund (MSEA) • Subordinate Ohligation Note Debt Service Fund (MSEA) • Miami Arena Capital Projects Fund (MSEA) • Exhibition Expansion Capital Projects Fund (MSEA) • Off -Street Parking Enterprise Fund • G & 0 Enterprise Fund • FIPO Pension Trust Fund • GESE Pension Trust Fund • Deferred Compensation Agency Fund F. Cash Equivalents and Investments Cash equivalents consist of demand deposits with banks, investments with onginal maturities at time of purchase of three months or less and equity in the City's cash manage- ment pool. Investrrients are carried at cost plus accrued interest except for investments in the deferred compensation agency fund which are reported at market. G. Pension Investments Pension investments for the FIPO and GESE Trust Funds are carried at cost. Debt securities are adjusted for amorti- zation of premiums and discounts. Premiums and discounts are amortized using the straight-line basis over the life of the investment. Approximate market value of investments are determined as follows: • Securities traded on a national securities exchange are valued at the last reported sales prices on the last business day of the fiscal year., • Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last reported bid price, • Commercial paper and money market funds are val- ued at cost which approximates market. Investment policy is determined by the respective Boards of Trustees and is implemented by outside investment advi- sors. Investment advisors use the following gutdeltnes. FIPO: • Bonds, notes or other obligations of the United States Government and its agencies and in bank cer- tificates of deposit, • Corporate common stock, preferred stock, converti- ble debentures (subject to 5% limitation for any one 93— 5"78 i I i City of Miami, Florida Notes to Financial Statements entity of the equity portfolio and provided the aggre- gate investment does not exceed 1 percent of total outstanding capital stock of any one corporation), • Notes collateralized by first mortgages on real proper- ty or guaranteed by the Federal Housing Administra- tion or the Veterans Adrninistration, • Corporate interest bearing obligations, • Venture capital, private placements and letter stocks, • Real estate, financial institutional futures, listed op- tions and stock index futures. All of the above investments are subject to the following ag- gregate portfolio limitations based upon cost at time of purchase: equities (651,10), fixed income (65%), real estate 0 5%), venture capital (5%) and all other types of invest- ments (10%). GESE: • Unlimited investments in bonds, notes or other obli- gations of the United States Government and its agencies and in bank certificates of deposit. • Individual investments in the following cannot exceed 10% of the funds available for investments: •• Corporate common stock, preferred stock, con- vertible debentures (provided the aggregate in- vestment does not exceed 3 percent of the total outstanding capital stock of any one corporation) • • Notes collateralized by first mortgages on real property or guaranteed by the Federal Housing Administration or the Veterans Administration •• Corporate interest bearing obligations Purchases and sales of securities are reflected on a trade date basis. Gain or loss on sales of securities is based on average cost. H. Inventories Inventories are only significant to and reported in proprietary funds. Inventories are valued at the lower of cost (first -in, first -out basis) or net realizable value. Inventory in the inter- nal service funds consists of expendable supplies held for consumption. I. Restricted Assets Certain proceeds of bonds, notes and loans, as well as cer- tain resources set aside for their repayment are classified as restricted cash and investments as their use is limited by ap- plicable bond covenants. J. Accumulated Unpaid Vacation, Sick Pay, and Other Employee Benefit Amounts Under terms of Civil Service regulations, labor contracts and administrative policy, City employees are granted vacation 34 and sick leave in varying amounts. Additionally, certain over- time 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 City has significantly decreased accumulated vacation tirne earned in prior years by buying out such time from ennp!oy- ees, and by limiting the accumulation of current year's earned vacation time. Accumulated unpaid compensated absences are accrued when earned m the governmental and proprietary funds, with the long-term portion of govern- mental funds' liability being recorded in the general long- term account group K. Intragovernmental Allocation of Administrative Expenses The General fund cnaroes other funds for certain adminis- trative expenses including accounting, legal, data process- ing, personnel administration, engineering and other ser- vices. A brief description of the major components of such charges are as follows. • Project Management. The Public Works Depart- ment charges major capital improvement projects of the City for design, survey and inspection services These charges are based on direct labor charges plus an overhead factor for administrative expenses of the engineering division, and totaled approximately $2,022,000 for fiscal 1992, • Indirect Cost Allocation. The General fund charges other funds for general and administrative expenses Such charges approximated $740,000 for fiscal 1992. L. Bond Discount and Issuance Costs Discounts on revenue and special obligation bonds payable within the proprietary funds are amortized using the interest method over the life of the bonds. Bond issuance costs are capitalized and amortized on a straight-line basis over the life of the bonds. M. Property, Plant and Equipment Property, plant and equipment used in governmental fund type operations (general fixed assets) are accounted for in the general fixed assets account group. Public domain ("In- frastructure") general fixed assets consisting of certain im- provements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems are capitalized together with other general fixed assets. No depreciation has been provided on general fixed assets. All property, plant and equipment are valued at historical cost or estimated historical cost. Donated property, plant and equipment are valued at their estimated fair market value on the date received. 93- a8 t i i f City of Miami, Florida Notes to Financial Statements Depreciation of all exhaustible fixed assets used by the pro- prietary funds is charged as expense against their opera- tions. Depreciation has been provided over the estimated useful lives using the straight-line rnethod The estimated useful lives are as follows • Buiidings and Irnprovernenis 30-50 years • Machinery and Equipment 4-20 years • Improvements other than Buildings 10-20 years Interest costs associated with enterprise fund borrowings (revenue bonds) used for construction projects are capital- ized during the construction period as part of the cost of the assets, net of related interest earned on unexpended por- tions of such borrowings. During 1992, no such interest was capitalized. N. Interfund Transactions Quasi -external transactions are accounted for as fund reve- nues, expenditures or expenses (as appropriate). All in- terfund transactions except advances, quasi -external trans- actions and reimbursements are accounted for as transfers. Nonrecurring or nonroutine transfers of equity between funds are considered equity transfers. All other interfund transactions are treated as operating transfers. O. Deferred Compensation The City offers its employees three deferred compensation plans, created in accordance with Internal Revenue Code Section 457, that permit the deferral of a portion of an em- ployee's salary until future years. The deferred compensa- tion is not available to employees until termination, retire- ment, death, or unforeseeable emergency. Membership in one plan is limited to key management per- sonnel, while the other plans are open to all City employees. The plans are funded through employee payroll deductions. All contributions are paid to outside fiduciary agents. How- ever, all amounts of compensation deferred under the plans, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of ben- efits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. The City records its deferred compensation plans in an agency fund. Deferred compensation plan assets are car- ried at market value 35 P. Fund Equity Contributed capital is recorded in proprietary funds that have received capital grants or contributions from develop- ers, customers or other funds. Reserves represent those portions of fund balance which are either not available for appropriations or are legally segregated for a specific use Designated fund balances represent tentative plans for fu- ture use of financial resources. Q. Comparative Data Comparative total data for the prior year has been presented in the accompanying financial statements in or- der to provide an understanding of changes in the City's fi- nancial position and operations However, comparative data has not been presented in all statements as their inclusion would make certain statements unduly complex and difficult to understand Certain comparative total data for the prior year has been reclassified to conform to the 1992 presen- tation. 3. PROPERTY TAXES Property taxes are levied on January 1 st and are payable on November 1 st, with discounts allowed of one to four per- cent if paid prior to March 1 st 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 be- tween 2% and 61/0 All unpaid taxes on real and personal property become delinquent on April 1 st and bear interest at 18% until a tax sale 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 Dade County Assessor of Property, at January 1, 1991 , upon which the 1991-1992 levy was based, was approximately $10,955,540,000 The City is permitted by Article 7, Sec- tion 8 of the Florida Constitution to levy taxes up to $10 per $1,000 of assessed valuation for general governmental ser- vices 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 in- terest on general obligation long-term debt, subject to a lim- itation on the amount of debt outstanding. The tax rate to finance general governmental services (other than the pay- ment of principal and interest on general obligation long- term debt) for the year ended September 30, 1992, was $9.5995 per $1 ,000. The debt service tax rate for the same period was $2.3308 per $1 ,000 Property taxes receivable as of the end of the fiscal year, representing collections within 60 days subsequent to Sep- tember 30, 1992 for billings through the fiscal year then en- ded amounted to approximately $2,088,000 and $816,000 for the general and debt service funds, respec- tively. 93- S78 City of Miami, Florida Notes to Financial Statements 4. EQUITY IN POOLED CASH AND INVESTMENTS, RESTRICTED AND OTHER CASH AND INVESTMENTS At September 30, 1992, the City's cash and non -pension investments consisted of the following (in thousands): Equity in pooled cash . ............................... $ 37,934 Other cash and investments ........... I ................ 48,898 Restricted cash and investments ......................... 28,490 Total cash and non -pension investments .............. $1 15,322 Investments .......................................... $111,724 Deposits ............................................. 3,102 Accrued interest ...................................... 496 Total cash and non -pension investments ............. 1 $1 15,322 Deposits The City's bank deposits at September 30, 1992 were as follows (in thousands): Carrying Balance Amount Per Banks Demand deposits ...................................... $ 338 $3,483 Time deposits ......................................... 2,764 2,764 Total ............................................. $3,102 $6,247 All time and demand 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 from 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. 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 (see below) which means they are fully insured or collateralized. Investments The City Code authorizes the Director of Finance to purchase and invest idle funds prudently in bonds and obligations of agen- cies 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 municipali- ties 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; and prime commercial paper. 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 registered, or securities held by the entity or its agent in the entity's name, (2) Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the entity's name; and (3) Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the entity's name. 36 93- 578 City of Miami, Florida Notes to Financial Statements The City's non -pension investments consisted of the following at September 30, 1992 and are classified as follows (in thousands): Credit Risk Category Total Carrying Market 1 2 3 Amount Value U.S. Treasury Notes and Bills ........... $30,529 $ 4,227 $ - $ 34,756 $ 35,288 U.S. Agency Securities ................ 2,006 2,018 2,201 6,225 6,225 Short -Term Commercial Paper . ........ 4,996 3,601 6,794 15,391 15,463 Investments held under repurchase agreements ...... ................ - - 1.247 1,247 1,247 Totals ..... ................. $37,531 $ 9,846 $10,242 57,619 58,223 Short Term Investment Pool ............ 16,103 16,103 Deferred Compensation Plan Assets ...... 38,002 38,002 Totals ....................... $1 1 1,724 $1 12,328 Investments held by the City"s pension plans consisted of the following at September 30, 1992 and are classified as follows (in thousands): Credit Risk Category Total Carrying Market 1 2 3 Amount Value U.S. Government and Agency Obligations ................. $160,939 $11,712 - $172,651 $181,243 Corporate Stocks .................... 334,423 - - 334,423 400,492 Corporate Bonds ..................... 106,109 - - 106,109 112,042 Other Investments ................... 23,400 - - 23,400 23,407 Totals ...................... $624,871 $11,712 $ - 636,583 717,184 Short Term Investment Pool ........... 63,488 68,156 Accrued Interest and Other ............ 4,900 4,900 Total Pension Investments ..... $704,971 $790,240 The investments in the short-term investment pools 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 5. DUE FROM/TO OTHER FUNDS Due from/to other funds are loans from one fund to another for specific purposes. At September 30, 1992, the balance in due from/to other funds consisted of the following (in thousands): Due from Due to Fund Other Funds Other Funds Special Revenue. Miami Sports and Exhibition Center ....................... $ 720(1) $ — Rescue Services . ... ..... ......................... — 6 Law Enforcement . . ... ............................. 3,000(1) — Community Development ................................ — 1,131 Public Service Tax .................................... — 2,807 Other Funds .. ...................................... — 523 Debt Service: MSEA Special Obligations Bonds ......................... — 720 Capital Projects: Street Improvements ................................... 1,0000) — Culture and Recreation .................................. 838(1) — Municipal Use . ...................................... 8,159(1) — Public Use .... ...................................... 4,841(1) — Sewers............................................... 2,399(1) — Enterprise Funds: Department of Off -Street Parking ......................... 862(1) — G & 0 Enterprise Fund .................................. — 862 Marine Stadium ........................................ — 193 Miami Stadium ....................................... — 825 Orange Bowl .......................................... — 5,553 Convention Center ..................................... — 2,528 Marinas ........................ .......... ........ — 292 Exhibition Center ....................................... — 116 Golf Courses ................................. — 326 Parking Garage ........................................ — 51 Building Zoning ........................................ — 610 Solid Waste ........................................... — 4,438 Internal Service: Property Maintenance .................................. — 297 PrintShop ............................................ — 480 Procurement Management .............................. — 61 Total ........................................... $21,819 $21,819 (1) These amounts represent loans to cover fund deficits in the various pooled cash and investment accounts 38 93- 578 a City of Miami, Florida Notes to Financial Statements 6. OTHER RECEIVABLES As part of its Community Development Bloc: 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, are to remain in the loan program As collection of the loans is not assured, the loans are not recorded as receivables, but are maintained in the City's accounting "j system on a memorandum basis As of September 30, 1992, rehabilitation loans outstanding totaled approximately $42,095,000 7. PROPERTY, PLANT AND EQUIPMENT The following is a summary of changes in general fixed assets for the year ending September 30, 1992 (in thousands)' 1 j Balance, Additions Deletions Balance, October 1, and and September 30, 1991 Transfers Transfers 1992 Land .................. .......................... $ 84,077 S 1,291 S - $ 85,368 Building and Improvements .......................... 75,659 38 75,697 Machinery and Equipment ........................... 29,484 1,537 1,818 29,203 Improvements Other than Buildings ................... 210,462 8,618 - 219,080 Construction in Progress ... ........................ 90,526 31,980 8,617 113,889 Total ........................................... $490,208 $43,464 S10,435 $523,237 +, See Note 14 for a discussion of the construction projects currently in progress. 11 A summary of proprietary fund type property, plant and equipment at September 30, 1992 is as follows (in thousands): Internal Enterprise Service Land ......... $ 16,266 $ Buildings and Improvements ..... 143,235 9,318 Machinery and Equipment ......... 9,367 30,386 Construction in Progress .......... 43,877 - Total ....................... 212,745 39,704 Less Accumulated Depreciation .... 50,305 27,936 Net ............................ $162,440 $ 11,768 39 93- 578 City of Miami, Florida Notes to Financial Statements 8. LONG-TERM DEBT _ A. Changes in Long -Term Debt The following is a summary of changes In long-term debt for the year ended September 30, 1992 (in thousands): { General Long -Term Debt Proprietary Fund Debt Spacial Obligation Special Obligation General bonds, Obligation Note and Claims Other Compensated Bonds Loans Payable Payables Absences Revenue Total Bonds Bonds Certificates and of Other Loan Participation Payables Balance at October 1, 1991 ..... . $186,805 $108,987 $52,592 $7,358 $17,428 $373,170 $86,063 $43,378 $5,240 $2,040 New bonds issued 10,000 52.591 - - 62,591 9,140 - -- - Accreiion on Capital Appreciation Bonds - - - 1,463 104 - - Debt defeased . - (46,030) - - - (46,030) (3,000) - - - Increase (decrease) In other payables - - - (1,662) - (1,662) - - - 1,464 Increase In long-term claim liabilities - - 14,051 - - 14,051 - - - - j Increase in long-term accumulated unpaid compensated absences 501 501 Principal payments (11,375) (791) - - - (12,166) (2,845) (5,700) (5,240) (2,174) Balance at September 30, 1992 $185,430 $114,757 $66,643 $5,696 $17,929 $390,455 $90,821 $37,782 $ - $1,330 B. Summary of Annual Debt Service Requirements The annual requirements for all bonds, notes, loans, certificates and, other payables outstanding as of September 30, 1992, including Interest of $345,761,196 are as follows (in thousands). General Long -Term Debt Proprietary Fund Debt Revenue and General Special Other Special Other Obligation Obligation(1)(2) Payables Obligation(2) Payables 1993 $ 20,764 $ 9,554 $1,451 S 11,592 $1,383 1994 23,565 9,641 1,127 11,740 1,107 1995 23,133 9,659 1,019 11,958 277 1996 22,255 13,113 1,019 22,771 - 1997 21,596 9,438 1,017 11,326 - 1998-2002 89,124 49,212 - 51,662 - 2003-2007 61,169 47,689 1,708 53,372 - 2008-2012 26,800 42,938 - 39,705 - 2013-2017 7,870 34,812 - 16,137 - w 2018-2022 - 15,667 - - - $296,276 $241,723 $7,341 $230,263 $2,767 I (1) Includes debt service on the MSEA's Special Obligation and Special Obligation Refunding Bonds. (2) Excludes accretion on the Capital Appreciation Bonds. _t I 1 40 • 1 93-- 578 1 City of {Miami, Florida Notes to Financial Statements i C. Summary of Long -Term Debt (000) Long-term debt at September 30, 1992 was comprised of 9 P P $39,075,000 Other Issues, maturing through 2014, interest at rates ranging from 3% to the following. 11% 1 ............ 19,205 (000) $11,500,000 Community Redevelopment General and Special Obligation Bonds, Notes Revenue Bonds, Series 1990, maturing and Loans -Long -Term Debt: through 2015. interest rates ranging from $39,890,000 Public Parks and Recieannn 7.15% to 8.5% 11,180 Facilities Bonds, two issues, maturing through $300.187 2003, interest at rates ranging frori 3 5% to 7 5% $ 1 1,135 Revenue and Special Obligation Bonds and $4,290,000 Special Obligation Bonds, Series Other Debt -Proprietary Funds: 1986A, one issue, maturing through 2006, $2,000,000 Subordinated Parking System interest at rates from 4 1% to 7 4% 3,530 Revenue Bonds, due in 2006, interest at 6% $6,500,000 Guaranteed Entitlement Revenue through 1992. thereafter at 80°ro of the prime rate $ 2,000 Bonds, Series 1989, maturing through 2009, interest rates ranging from 6 25% to 7% 5,975 $12,084,200 Florida League of Cities' First $22,605,000 General Obligation Refunding Municipal Loan, maturing though 1996, Bonds, Serves 1987, maturing through 2010; interest at variable rate (3 1590average for Year ended September 30, 1 392) 12,084 interest rates ranging from 6 8% to 7 4% 22,435 $3,915,800 Flonda League of Cities' First $12,386,658 Special Obligation Refunding Municipal Loan, maturing through 1996, Bonds, Series 1990, maturing through 2007, interest at rates ranging from 6 2% to 7 375 /° interest at variable rate (3 154r° average for year ended September 30, 1992) 3,916 (The portion of the bonds issued in capital appreciation bond form had accreted value of $36,355,000 General Obligation Refunding approximately $231 ,000 as of September 30, Bonds, Series 1986, maturing through 2014, 19921 12,237 interest rates ranging from 4 5% to 7 7% 30,655 $16,275,000 Parking System Revenue Bonds, $16,135,000 General Obligation Refunding Series 1986, maturing through 2009 at Bonds. Series 1991 , maturing through 2013, varying rates of interest ranging from 4 25% to interest rates ranging from 5.3% to 6.6% 16,135 7 75% 14,440 $54,705,000 Sanitary Sewer Improvement $65.271,325 Special Revenue Refunding Bonds, ten issues, maturing through 2014; Bonds, Series 1987, due in installments from interest at rates ranging from 3% to 1 1% 25,670 approximately $630,000 to $5,490,000 $31,060,000 Street and Highway through 2015, interest at rates ranging from Improvement Bonds, nine issues, maturing /° 5.25to 7 30,° (The portion of the bonds issued in capital ppo tion bond form had through 2014, interest at rates ranging from 3% to 1 1% 15,745 accreted value of apprroximately $4 59 million a mat as of September 30, 1992) 65,241 $46,765,000 Storm Sewer Improvement Bonds, $14,420,000 Sunshine State Governmental twelve issues, maturing through 2014, interest at rates ranging from 2.5% to 11°,0 27,535 Financing Commission Loan, maturing through 2015, interest at variable rate (3 20% average $36,645,000 Police Headquarters for year ended September 30, 1992) 13,461 Improvement Bonds, eight issues, maturing through 2014; interest at rates ranging from $4,415,000 Refunding Revenue Bonds, Series 3% to 1 1 % 16,915 1992, maturing through 1996; merest rates ranging from 3.500o to 5 25°fo 4,415 Fin$lancing Co Sunshine State Governmental Commission Loan, through $4,725,000 Parking System Revenue Bonds, 2015,i t (3.20%aturing interest at variable rate 11992) average Series 1992A due through 2006 at varying rates of interest from 4 5% to 7.75% 4,725 for year for year ended September 30, 1992) 11,481 ... .. $48,675,000 Miami Sports and Exhibition 128,603 Authority Special Obligation Refunding Bonds, Less Current Portion ............ . (5,536) Series 1992, maturing in various amounts through 2020, interest rates ranging from Less Unamortized Bond Discount .......... (1,407) 2.95% to 6.63°a 48,675 $30,000,000 Rental Revenue Bonds, Series $121,660 1988, maturing through 2019; with interest at 8.65% . . . . .. ................. 30,000 City of Miami, Florida Notes to Financial Statements D. Summary of New Debt Issuances $4,415,000 Refunding Revenue Bonds, Series 1992— On February 4, 1992, the City issued S4,415,000 Re- fundinq Revenue Bonds, Series 1992, for the purpose of advance refunding the outstanding Certificates of Participa- tion, Series 1986 dated August 28, 1986 The bonds were issued at rates ranging from 3 50°4, to 5.25°.o with serial bonds maturing through 1996 $10,000,000 General Obligation Bonds, Series 1992— On July 22, 1992, the City sold S 10,000,000 General Ob- ligation Bonds, Series 1992-, with serial bonds pavable in in- stallments of $210,000 to $750,000 from 1994 through 2017, with interest rates ranging between 3.80% to 6.05%. The Series 1992 Bonds are general obligations of the City for which its full faith, credit and taxing power have been irrevocably pledged. The Series 1992 Bonds are pay- able from unlimited ad valorem taxes levied on all taxable property within the City. $40,950,000 MSEA Special Obligation Refunding Bonds, Series 1992A—On August 5, 1992, MSEA issued $40,950,000 Special Obligation Refunding Bonds, Series 1992A to advance refund the outstanding Series 1991 Bonds, carrying interest rates of 5.75% to 7 2`;'0. The Series 1992A Bonds carry an original issue premium of approxi- mately $56,100 and mature in annual increments of $650,000 beginning in 1993 to $2,910,000 through 2020, carrying interest rates from 2.95% to 6.625%. Costs of issuance, including bond insurance premiums and re- serve fund insurance premiums totalled approximately $1 million and were funded from available Series 1991 Bond reserve fund cash. The proceeds from the 1992A Bonds to- gether with $342,300 of the Series 1991 Bond Reserve fund monies were used to purchase U.S. Government se- curities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt ser- vice payments on the Series 1991 Bonds. As a result of the advance refunding, the Series 1991 Bonds are considered to be defeased and the liability for those bonds has been re- moved from the long-term debt account group. MSEA ad- vance refunded the Series 1991 Bonds to reduce its total debt service payment over the next 29 years by approxi- mately $2.2 million and to obtain an economic gam (differ- ence between the present values of old and new debt ser- vice payments) of approximately $554,200. $7,725,000 MSEA Special Obligation Refunding Bonds, Series 1992E—On August 5, 1992, MSEA issued $7,725,000 Special Obligation Refunding Bonds, Series 1992B to redeem in full the original $8,750,000 in Float- ing/Fixed Rate Subordinate Special Obligation Bonds, Se- ries 1989A of which $8,030,000 was currently outstand- ing. The Series 1992E Bonds were issued at a premium of approximately $102,300 and mature in annual increments of $500,000 beginning in 1993 to $850,000 through 2004, carrying interest rates from 2.95% to 6.625%. Cost of issuance of approximately $192,000 were funded from 42 available monies in the refunded debt service accounts The proceeds from the Series 1992B Bonds together with $202,700 of the Subordinate Bond debt service accounts were used to redeem the Subordinate Bonds $4,725,000 Parking System Revenue Bonds, Series 1992A—During fiscal 1992, the City issued S4,725,000 Parking System Revenue Bonds, Series 1992A The Series 1992 bonds were issued to refinance the Cry s outstand- mg Subordinated Paiking System Revenue Bonds, Series 1990 and the City's obligation under a participation agree- ment with the First Municipal Loan Council Pooled Loan Program sponsored by the Florida League of Cities The Se- ries 1992 bonds and interest thereon will be payable solely from and secured by a pledge of and !ien on the net income, derived by the City from the operations of the parking sys- tem. The Series 1992 Bonds mature through 2006 carry - trig interest rates from 4.5% to 7.75%. E. Other Payables Capital Leases The City has entered into a lease agreement,as lessee for financing the acquisition of computer equipment and police patrol cars. These lease agreements qualify as capital leases for accounting purposes (titles transfer at the end of the lease terms) and, therefore have been recorded at the present value of the future minimum lease payments as of the date of their inception. The following is an analysis of equipment leased under capital leases as of September 30, 1992 (in thousands): General Internal Fixed Service Assets Fund Machinery and equipment ......... $4,208 $3,726 Less: accumulated depreciation .... — (825) Carrying value ........... ....... $4,208 $2,901 The following is a schedule of the future minimum lease payments under these capital leases, and the net minimum lease payments at September 30, 1992: General Internal Fiscal Year Ending Long -Term Service September 30 Debt Fund 1993 .................... $1,019 $1,383 1994 .................... 1,019 1,107 1995 ....... _ .......... 1,019 277 1996 .................... 1,019 — 1997 1,017 Total Minimum Lease Payment... 5,093 2,767 Less Amount Representing Interest .............. ..... 885 191 Present Value of Future Minimum Lease Payments ............. 4,208 2,576 Less Current Portion ........... (760) (1,246) Long Term Portion ............. $3,448 $1,330 93- 578 City of Miami, Florida (Votes to Financial Statements Other Payables At September 30, 1992, other parables accounted for in the general long-term debt account group, consists of the following. The City entered into a loan agreement w,th the Gran Cen- tral Corporation (GCC) to finance fifty percent (50%) of the cost to relocate and widen Northwest First Avenue be- tween Northwest First Street and Northwest Eighth Street. GCC is a large property owner in the adjacent area with fu- ture development plans The loan, in the amount of $1,708,000, does not bear interest and is payable from funds deposited in the Overtown/ParkWest Tax Increment District Trust Fund on a junior and subordinate basis to the lien granted to holders of the Community Redevelopment Revenue Bonds, Series 1990. GCC is to be fully repaid by the year 2008 with annual payments to be made to the ex- tent funds in the Trust Fund are available after required pay- ments for the Series 1990 are made or provided for As of September 30, 1992, no payments were made. The City entered into a settlement agreement with AT&T Communications of the Southern States, Inc (AT&T), in the amount of $1,296,000 payable in 36 equal monthly payments of $36,000, beginning in January of 1992, in full and complete settlement of any and all claims and demands against the City of Miami by AT&T related to an alleged overpayment of Public Service Taxes due under Chapter 55 of the City of Miami Code. The balance in other payables at September 30, 1992 are summarized as follows: Capital leases $3,448 Gran Central Corporation loan ........ ........... 1,708 ATT settlement ..... .......... .. 540 Total .................. $5,696 F. Synopsis of Bond Covenants The various bond indentures contain significant limitations and restrictions on annual debt service requirements, rriain- tenance of and flow of monies through various restricted ac- counts, minimum amounts to be maintained in various sink- ing funds, and minimum revenue bond coverages. A summary of major provisions and significant debt service re- quirements follows: General Obligation Bonds —Debt service is provided for by a tax levy on non-exempt property value. The total general obligation debt outstanding is limited by the City Charter to fifteen percent of the assessed non-exempt property value. At September 30, 1992, the statutory limitation for the City amounted to approximately $1,643,331,000 providing a debt margin of approximately $1,458,591,000 after con- sideration of the $185,430,000 of general obligation bonds outstanding at September 30, 1992, less approxi- mately $690,000 available in the related debt service fund. General obligation bonds authorized but unissued at Sep- tember 30, 1992, totaled $22,500,000. 43 $65,271,325 Special Revenue Refunding Bonds —Debt service is provided by a pledge of net revenues of the Con- vention Center/Garage, the pledged portion of the public service telecommunications tax revenues, and by a cove- nant and agreement of the City to provide, to the extent necessary, revenues of the City, other than ad valorem property tax revenues, sufficient to make up any deficiency in certain of the required restricted funds and accounts Various funds and accounts held by the Trustee are re- quired to be maintained under the terms of the Trust Inden- ture pursuant to which the bonds were issued Those funds or accounts pertaining to these provisions include the Reve- nue Fund, Bond Service Account, the Redemption Ac- count, the Reserve Account, the Construction Account, the Supplemental Reserve Fund, the Renewal and Replace- ment Fund, and the Surplus Fund. The Trust Indenture pro- vides that the gross revenues of the Convention Center/Garage will be deposited, as received, with the Trus- tee to the credit of the Revenue Fund. At September 30, 1992. the City had on deposit with the Trustee for these bonds approximately $4,975,000 includ- ing accrued interest receivable, in the required restricted funds and accounts. In August 1990, the City obtained a reserve account surety bond in the amount of approximately $6,125,000 to substitute the cash on deposit in the re- serve accounts $16,275,000 Parking System Revenue Bonds (DOSP)— Debt service is payable solely from the revenues of the Off - Street Parking facilities. This issue ("Series 1986") con- sists of serial bonds payable in installments of $315,000 to $1,390,000 from 1988 through 2009 At September 30, 1992 the City had on deposit with the Trustee for these bonds approximately $3,809,000 including accrued inter- est receivable in various reserve accounts. These accounts consist of the Parking System Fund (Revenue, Revenue and Replacement, and General Reserve accounts), and the Bond Fund (Interest and Principal, Sinking fund, Reserve, Redemption, and Insurance and Condemnation Award Ac- counts) The nature, purpose and funding requirements of these funds and accounts are similar to those described above relative to the Convention Center $2,000,000 Subordinated Parking System Revenue Bonds —In 1986, the City"s Department of Off Street Park- ing sold $2,000,000 in Subordinated Bonds to provide fi- nancing for parking projects. Interest on bonds is computed at 6% through 1991 and a variable rate based on 80% of prime beginning in 1992 Bonds mature on October 1, 2006. $4,290,000 Special Obligation Bonds, Series 1986 A — In 1986 the City issued $4,290,000 in Special Obligation Bonds, Series 1986 A, to provide financing for construction of owner occupied residences under the Scattered Site Pro- gram in the City's Community Development Target areas. The bonds have serial retirements from 1987 through 1996 in amounts from $80,000 to $190,000 and a term 1 93- 578 City of Miami, Florida Notes to Financial Statements payment of $2.830,000 in 2006 Debt service on the bonds, are payable solely from certain telephone and tele- graph franchise fees. $27,630,900 Sunshine State Governmental Financing Commission Loans —During 1987 and 1988, the City ob- tained $27,630,900 in loans from the Sunshine State Gov- ernmental Financing Commission (the Commission) The proceeds from the loans were used to frond certain parks and marinas improvements and other capital projects The Commission was created in November, 1985, by the Cities of Orlando and Tallahassee, Florida, through an interlocal agreement, as a pooled financing vehicle to allow for a limit- ed number of high quality local governmental units (Cities and Counties) to join together in a variable rate financing program and thereby benefit from the inherent economies of scale. The City has pledged certain non -ad valorem reve- nues to pay the debt service on these loans. $16,000,000 Florida League of Cities' First Municipal Loan —During 1989, the City obtained a loan from the Flor- ida League of Cities' First Municipal Loan Council to finance the Orange Bowl renovation project and other capital projects. Interest rates are variable. The loan will be repaid with revenues from Orange Bowl operations and an annual pledge of up to $2,000,000 in guaranteed entitlement rev- enues. $30,000,000 Rental Revenue Bonds, Series 1988—Dur- ing 1989, the City issued $30,000,000 Rental Revenue Bonds, Series 1988 to finance the costs of the acquisition of real estate and the construction thereon of a 250,000 square foot office building to be leased from the City by the United States Government. The resolution establishes as trust funds with the Trustee the Construction Fund, the Revenue Fund, the Reserve Fund and the Sinking Fund. $6,500,000 Guaranteed Entitlement Revenue Bonds, Se- ries 1989—During 1989, the City issued $6,500,000 Guaranteed Entitlement Revenue Bonds, Series 1989 to fi- nance the cost of certain capital improvements and equip- ment within the City. in November 1991 , the City obtained a reserve account surety bond in the amount of approxi- mately $612,000 to substitute the cash on deposit in the reserve accounts. $12,386,658 Special Obligation Refunding Bonds, Series 1990—In May 1990, the City sold $12,386,658 Special Obligation Refunding Bonds, Series 1990, with interest rates between 6.2% and 7.375% to advance refund the $13, 720,000 Special Obligation Bonds dated April 1, 1985, which carry interest rates between 5.625% and 8.875%. The Series 1990 bonds are made up of $1 1,095,000 in current interest form and $1 , 291, 658 in capital appreciation form. The Series 1990 bonds are col- lateralized by a pledge of net revenues of the Government Center Parking Garage and utilities services taxes collected by the City from the sale of water. 44 $11,500,000 Community Redevelopment Revenue Bonds, Series 1990—On November 8, 1990, the City is- sued $1 1,500,000 Community Redevelopment Revenue Bonds, Series 1990, for the Southeast Overtown/Park West Redevelopment Area (the ''Redevelopment Area'') The proceeds of the fronds are to be used mainly to refi- nance the $5,958,400 Section 108 HUD Prom;ssory Note, to reimburse the City for monies advanced to the Redevel- opment Area rn an amount not to exceed 5750,000, to fi- nance the acquisition and clearing of certain real property, and the construction of infrastructure improvements in the Redevelopment Area The bonds were issued at rates rang- ing from 7.15% to 8 50%, with serial and term bonds ma- turing through 201 5 Debt service is payable from the Tax Increment Revenues of the Redevelopment Area and a pledge of guaranteed entitlement revenues up to $300,000 annually $40,950,000 MSEA Special Obligation Refunding Bonds, Series 1992A—On August 5, 1992. MSEA issued $40,950,000 Special Obligation Refunding Bonds, Series 1992A to advance refund the outstanding Series 1991 Bonds, carrying interest rates of 5.75% to 7.20% The Series 1992A Bonds mature in annual increments of 5650,000 beginning in 1993 to 52,910,000 through 2020, carrying interest rates from 2.95% to 6 625% The proceeds from the 1992A Bonds together with 5342,300 of the Series 1991 Bond Reserve fund monies were used to purchase U.S. Government securities. Those securities were deposit- ed in an irrevocable trust with an escrow agent to provide for all future debt service payments on the Series 1991 Bonds. The Series 1992A Bond indenture contains provi- sions requiring the transfer or establishment of various funds and accounts including the Tax Trust Fund, Bond In- terest and Principal Funds, Subordinate Obligations Fund, Reserve Account, General Fund, Expense Fund, Rebate Fund and the Capital Reserve and Operating Deficit Ac- count. Under the terms of the indenture, Convention Devel- opment Tax proceeds are required to be deposited in the Tax Trust Fund and distributed to the other bond funds or accounts and to MSEA's operation up to a maximum of $669,500 annually (increasing 3% per annum). $7,725,000 MSEA Special Obligation Refunding Bonds, Series 1992B—On August 5, 1992, MSEA issued $7,725,000 Special Obligation Refunding Bonds, Series 1992B to redeem in full the original $8,750,000 in Float- ing/Fixed Rate Subordinate Special Obligation Bonds, Se- ries 1989A of which $8,030,000 was currently outstand- ing. The Series 1992B Bonds were issued at a premium of approximately $102,300 and mature in annual increments of $500,000 beginning in 1993 to $850,000 through 2004, carrying interest rates from 2.95% to 6.625% Cost of issuance of approximately $192,000 were funded from available monies in the refunded debt service accounts. The proceeds from the Series 1992B Bonds together with $202,700 of the Subordinate Bond debt service accounts were used to redeem the Subordinate Bonds. The Series 93-- 578 City of Miami, Florida Notes to Financial Statements 1992B Bond indenture contains provisions requiring the transfer or establishment of various funds and accounts in- cluding the Tax Trust Fund, Bond Interest and Principal Funds, Subordinate Obligations Fund, Reserve Account, General Fund, Expense Fund, Rebate Fund and the Capital } Reserve and Operating Deficit Account Under the terms of j the indenture, Convention Development Tax proceeds are t required to be deposited in the Tax Trust Fund and distribut- ed to the other bond funds or accounts and to MSEA's op- eration up to a maximum of $669,500 annually (increasing 3% per annum). $4,415,000 Refunding Revenue Bonds, Series 1992— On February 4, 1992, the City issued $4,415,000 Re- funding Revenue Bonds, Series 1992, for the purpose of advance refunding the outstanding Certificates of Participa- tion, Series 1986 dated August 28, 1986 The bonds are limited obligations of the City, payable and secured only `i �J from pledged funds as provided in Resolution No. 91-886 and 92-049 The pledged funds consist of Non -Ad Valorem Revenues budgeted and appropriated by the City and de- posited into the Debt Service Fund, and until applied in ac- cordance with the provisions of the Resolution $4,725,000 Parking System Revenue Bonds, Series 1992A—Dunnq fiscal 19,92, the City issued 54,725,000 Parking System Revenue Bonds, Series 1992A the Series 1992 bonds were issued to refinance the City's outstand- ing Subordinated Parting System Revenue Bonds, Series 1990 and the City's obligation Linder a participation agree- ment with the First Municipal Loan Council Pooled Loan Program sponsored by the Florida League of Cities The Se- ries 1992 bonds and interest thereor, will be payable solely from and secured by a piedge of DOSP parking revenues 45 93- 578 City of Miami, Florida Notes to Financial Statements G. Defeasances of Long -Term Debt In prior years, the City defeased certain outstanding general obligation, special obligation and revenue bonds by placing the proceeds of the refunding bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Ac- cordingly, the trust accounts and the defeased bonds are not included ,n the Cnty's financial statements. At September 30, 1992, the following outstanding bonds are considered defeased (in thousands). Parking Facilities Revenue Bonds Series B .. . $ 740 _. SeriesC ... . ....................................... 2,925 Series1980. ........................................................ 520 Parking System Revenue Bonds: jSeries 1983......................................................... 12,285 General Obligation Bonds Sanitary Sewer System, Series 1983.................................... 2,790 Firefighting, Fire Prevention and Rescue Facilities, Series 1983 .............. 4,230 Housing Bonds, Series 1983.......................................... 825 ++ Storm Sewer Improvement, Series 1983................................. 2,440 Street and Highway Improvement, Series 1983 ........................... 3,890 Firefighting, Series 1984 ............................................ 1.100 Housing, Series 1984 ....... ...... 16,260 Storm Sewer Improvement, Series 1984................................. 2,375 -- Street and Highway, Series 1984....................................... 5,895 Police Headquarters Improvements, Series 1985 .......................... 2,855 Storm Sewer Improvements, Series 1985................................ 6,735 Sanitary Sewer Improvements, Series 1985 .............................. 3,795 + Street and Highway Improvement, Series 1985 ........................... 3,215 Firefighting, Fire Prevention and Rescue Facilities, Series 1985 .............. 2,925 J Special Obligation Bonds: Series 1981......................................................... 185 Series1985......................................................... 12,505 Special Obligation Refunding Bonds: Series1991......................................................... ; I 37,535 n,nJ 578 h City of Miami, Florida Notes to Financial Statements 9. FUND EQUITY The following schedule lists the equity components of all City proprietary funds as of September 30, 1992 (in thousands): I Retained Earnings (Deficit) — Reserved Total Fund i for Debt Contributed Equity Enterprise Funds: Service Unreserved Total Capital (Deficit) j} Off -Street Parking ... .................. $2,506 $ 7,604 $ 10,110 $ — S10,1110 G&O Enterprise Fund ................... — (2,060) (2,060) 3,028 968 Marine Stadium .. (383) (383) 699 316 Miami Stadium ....... .. _ (1,243) (1,243) 1,654 411 Orange Bowl Stadium ................... (1,354) (1,354) 1 1,552 10.198 Convention Center ..................... 1,415 (33,289) (31,874) 46,256 14,382 ? Marinas . . . ....................... — 3,543 3,543 2,787 6,330 ( Exhibition Center .............. . ........ — (2,843) (2,843) 10,929 8,086 s Golf Courses .................... . ..... — (79) (79) 405 326 Warehouse Property .................... — 185 185 22 207 Parking Garage ........................ — (5,741) (5,741) 634 (5,107) Building and Zoning .................... — (1,464) (1,464) 270 (1,194) I i Solid Waste ........................... — (7,634) (7,634) 3,554 (4,080) Manuel Artime Center .................. — (9) (9) — (9) $3,921 $(44.767) $(40,846) $81,790 $40,944 Internal Service Funds: Fleet Management . ................... $ — $ (5,506) $ (5,506) $ 7,777 $ 2,271 Property Maintenance .......... (495) (495) 273 (222) Print Shop ............................ (626) (626) 178 (448) Procurement Management ........ (59) (59) 23 (36) Communications Services ............... — 830 830 3,550 4,380 $ — $ (5,856) $ (5,856) $11,801 $ 5,945 See Note 11 for segment information regarding the enterprise funds. t i i ij i 47 99- 578 City of Miami, Florida Notes to Financial Statements 10. SELF-INSURANCE The City maintains a self-insurance expendable trust fund to administer insurance activities relating to certain property ar liability risk, group accident and health and workers' compensation Charges to participating operating departments are based upon amounts determ;ned by management to be necessary meet the required annual payouts during the fiscal year The estimated liability for insurance claims includes estimated futu liability on a case -by -case basis for all pending claims and an actuarially determined amount for claims incurred but not repot ed. The long-term portion of the total estimated liability, which is expected to be funded from future operations, �s reflected the General Long -Term Debt account group and amounted to approximately $66,643,000 as of September 30, 1992 follows (m thousands) Estimated Claims Payable A. Workers Compensation All workers compensation costs are paid from the self-insurance fund, with all departments of the City assessed a charge based upon annual cash requirements. As claims are reported, they are investigated by claims personnel, and an estimate of liability on a case -by -case basis is established. The estimated liabilities are periodically reviewed and revised as claims develop. Most liabilities in this area will be payable over a period of several years. $27,910 B. General Coverage Departments of the City are assessed for property and casualty coverage, including police professional liability and public official's liability, based upon the cash requirements of the Self - Insurance fund and their relative share of the total risk. The City has continued to purchase certain casualty insurance for which the premium is small in relation to the coverage provided. The City is fully insured, subject to a $100,000 deductible, for all property loss exposure. As the casualty claims are reported, they are investigated by the claims personnel and an estimate of liability is established on a case -by -case basis. 40,670 C. 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, 1992, the plan covered approximately 955 active employees, 1,076 retirees and 1 ,1 1 1 employee -retiree dependent units. Costs of the plan for the year then ended were approximately $10.7 million. 1,619 Total 70,199 Less: current portion, which represents payments made by the City in October and November 1992 on claims incurred on or before September 30, 1992, 3,556 Long-term claims payable $66,643 48 r City of Miami, Florida Notes to Financial Statements 11. SEGMENT INFORMATION —ENTERPRISE FUNDS G&O Manuel Off -Street Enterprise Stadiums Convention Exhibition Golf Perking Building & Solid Artime Parking Fund (1) Center Marinas Center Courses Garage Zoning Waste Center Total } Current assets $ 8.782 $ 309 S 7.038 S 105 S 118 $ 119 $ 83 $ 75 S 110 $ 7,919 $ 40 S 24,728 Current liabilities 3.155 275 9.220 2,946 907 303 .159 202 1,377 14,633 57 33.53.1 Net working capital $ 5.627 S 64 S 12, 1 82) $ (2.841) _ S 1789) $ (184) S C37(5) S f 12 7 1 S; 1 .267) $ (6 7 14) S (1 7) S 18.80t;, Restricted assets $ 3,809 S — S -- S 5.056 S — S — $ S 84 S — S — $ -- S `) C041 Current liabilities payable from restricted assets 7,303 — 115 3,766 342 51 -- 828 — — — ti 4(1F, Net restricted assets $ 2.506 S — S 1 15 S 1,290 S 1342) S (51) S — S (644) S Property, plant and equipment $19.370 $1.629 $25,410 $ 76,726 $18,745 $10,137 S 702 S 7.006 S 73 S 2.634 S 8 5162,44O Total assets $34.513 51,968 532,476 S 82,549 518,863 510,256 S 785 S 7.490 S 183 S 10.553 S 48 5199,684 Bonds payable. long-term debt (net) $19,945 $ — 51 ".009 $ 61,455 51 1 .284 $ 1 ,816 S— 51 1 .56' S 1 1 y 07t, Contributed capital $ — $3,028 $13,927 5 46,256 $ 2,787 510.929 S 405 S (334 S 270 S 3,554 S — S Y,1,79rj Total retained earnings (deficit) 10,110 (2.0601 (2.795) (31 ,874) 3.543 (2.843) 79! 15.741) (1 .464) (7,6341 19) (40.844,1 Total fund equity (deficit) $10.110 $ 968 $i 1.132 $ 14,382 $ 6,330 S 8 086 S 326 S (5.1071 $(1,1941 S 14.080) $ (9) S 40,944 -- — —_ — Operating revenues $ 9.601 $ 629 $ 1,526 $ 3,728 S 2,533 S 544 $1.158 S 325 S 4 625 S 16,329 .S 145 S 41,143 Depreciation expense $ (1,323) $ (285) S (628) S (1 768) S 150) S (754) $ (39) S t59) S (131 S (2,111 S 21 S ra,7621 Operating income (loss) before non- ' operating revenues (expenses) $ 1.954 $ (734) $ I1,491) $ (1,989) $ 914 S (164) S (84) $ (230) S (2911 S(15 675) $ (405) $ 118.195) Non -operating revenues (expenses) Interest income $ 579 $ — $ 1 $ 224 S — $ 1 $ — $ 4 $ — $ 32 $ — $ 841 i Interest and fiscal charges (1,488) — (361) (4,603) (483) (94) — 1837) — — — (7,866) Other (4721 423 2,018 35 (69) 189 57 (30) 111 2.905 1 5.168 Total non -operating revenues (expenses) $ 0,381) $ 423 $ 1.658 $ (4,344) $ (552) $ 96 $ 57 $ (863) $ III $ 2.937 $ 1 $ (1,857) Net transfers from (to) other funds $ — $ — $ (1,536) $ 4,781 $ 17 $ — $ (20) $ 946 $ (536) S 12.012 $ 431 $ 16,095 Net income (loss) $ 573 $ (311) $ f1,369) $ (1.552) $ 379 S (68) $ (47) $ (147) $ 1716) S (726? $ 27 S (3.957) Additions (deductions) to property, plant and equipment, net $ (1,370) $ 525 $11.105 $ 32 $ (2,287) $ 47 $ 4 $ — $ 24 S 253 $ 4 $ 8,338 Additions of contributed capital $ — $ 395 S 7.000 $ — $ — $ — $ — $ — $ 3 S 242 S — $ 7.640 Increase (decrease) in working 1 capital $ (890) $ 200 $ 748 $ 1,192 $ 1349) $ 8 $ 12 $ 16 $ 724 $ 496 S (25) $ 2.132 (1) Includes operations of the Orange Bowl Warehouse Property, the Miami Stadium, the Marine Stadium and the Orange j Bowl Stadium. 49 93- 578 City of Miami, Florida Notes to Financial Statements 12. PENSION PLANS A. Plan Description The City sponsors two separate defined benefit contributory pension plans under the administration and management of separate Boards of Trustees The City of Miami Fire Fight- ers' and Police Officers' Retirement Trust ("FIPO") and the City of Miami General Employees and Sanitation Employ- ees' Retirement Trust ("GESE") The plans cover substan- tially all City employees who contribute a percentage of their base salary or wage on a bi-weekly basis The payroll for employees covered by FIPO and GESE for the year ended September 30, 1992 was $67.0 million and $56.4 million, respectively; the City's total payroll was $161 million. At October 1, 1992, the date of the most recent actuarial valuation, membership in the FIPO and GESE consisted of the following: FIFO GESE Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them ............ 1,148 1,740 Current employees: Vested ....................... 963 807 Nonvested .................... 661 901 Totals ........................ 2,772 3,448 Retirement benefits are based upon a percentage (2.75% for FIPO, 2.25% for GESE effective October 4, 1991) for each service year of the average compensation earned over the highest two years of membership service. Provision for additional benefits for longevity are available. Early retire- ment after twenty years of service is available. Benefits for disability and death are also provided under the plans. City employees are required to contribute 8.5% of their sal- ary to FIPO and 8% to GESE. Contributions from employees are recorded in the period the City makes payroll deductions from participants. The City is 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 pursu- ant to City of Miami Code Sections 40,205 and 40.230, re- spectively. The City was involved in long-standing litigation, principally related to funding of the two plans, which was settled under an agreement approved by the City Commission on June 13, 1985 ("the Gates Settlement"). The major terms of the Gates Settlement are as follows. • Each of the two Boards of Trustees (Boards), in its discretion, may have its own employees, administra- tor, attorneys, accountants, money managers, and other professionals. Ac • The City's total annual contributions to FIPO and GESE beginning with fiscal year 1984/85 are re- quired 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 schedule that requires S5,000,000 for FIPO and $6,400,000 to GESE, respectively, for 1984/85, increasing thereafter by approximately 5% per year. The total unfunded liability, including the ef- fect of certain plan improvements, was calculated to be approximately $104,500,000 for FIPO as of January 1, 1983 and S 109,000,000 for GESE as of October 1, 1982, establishing the basis for the contribution schedule The respect,ve unfunded li- ability balances are expected to ;ncrease annually for approximately the next 9 years, until the annual unfunded liability contribution by the City exceeds the accumulated interest on the unpaid balance. The currently existing unfunded liability balances are scheduled to be eliminated by the year 201 1 for FIPO and by the year 2007 for GESE • Any increase in the unfunded liability of either FIPO or GESE arising from lawful increases in benefits provid- ed by the City unilaterally shall be amortized in level annual installments over the shorter of (1) 30 years from the beginning of the fiscal year in which the change occurred, or (2) the period over which such benefit increase is expected to be paid Any increase or decrease in the unfunded liability resulting in changes in actuarial assumptions or changes in bene- fits resulting from collective bargaining shall be amor- tized in level installments over a period of 30 years from the beginning of the fiscal year in which the change occurred. • A Cost -of -Living Adjustment Fund (COLA Fund) was created with a designated amount of savings gener- ated by the tax qualification of FlPO and GESE, repre- senting employee contributions of 2% of salary. S. Funding Status and Progress The amounts shown below as the ''pension benefit obliga- tion" represent the standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of FIPO and GESE on a going -concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among em- ployers. 93- 578 0 q J City of Miami, Floricla (Votes to Financial Statements The measure is the actuarial present value of credited projected benefits, and is independent of the funding method used to determine contributions to FIPO and GESE. The pension benefit obligation and the estimated actuarially determined employer contribution provided by the City were cal- culated by consulting actuaries based on actuarial valuations for FIPO and GESE. The more significant assumptions underlying the actuarial valuations are as follows FIPO Assumed rate of return on investments .. 7 754,o per annum, compounded annually Salary Scale ....................................... Projected salary increases of 4 75% compounded annually, attributable to inflation, and additional projected salary increase up to 4 8% per year attributable to seniority/ merit. Retirement ........................................ Probabilities of retiring ranging from 1 % at age 40, 3.5% at age 45, 50% at age 50, to 100% at age 55. GESE Assumed rate of return on investments ................. 8.0% per annum, compounded annually Salary Scale ....................................... 6.5% per annum, compounded annually Retirement Annual Rate of Age Retirement 55 .200 60 .100 65 .200 70 1.000 Following is the calculation of the unfunded (overfunded) pension benefit obligations (in thousands): FIPO GESE Total Valuation Date ............................................... Oct. 1, 1992 Oct. 1, 1992 Pension benefit obligation: Retirees receiving benefits and terminated members ........... $232,100 $175,500 $407,600 Current employees: Accumulated member contributions ...................... 62,500 48,300 110,800 Employer —financed vested ............................ 76,600 97,700 174,300 Employer —financed non -vested ........................ 86,900 17,300 104,200 Total ............................................ 458,100 338,800 796,900 Net assets available for benefits, at cost (market value is $492,900 for FIPO, $271,700 for GESE) .................. 455,900 224,500 680,400 Unfunded pension benefit obligation ..................... $ 2,200 $114,300 $116,500 51 93- 578 City of Miami, Florida Notes to Financial Statements C. Actuarially Determined Contribution Requirements and Contributions Made The funding policy for FIFO and GESE provides for periodic employer contributions at actuanally 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 con- tribution requirements are the same as those used to com- pute the pension benefit obligations as described in B above. FIPO Contributions are determined using the entry age normal cost method with frozen unfunded actuarial accrued liability. Contributions toward the unfunded actuarial accrued liability are based on a level percentage amortization approach, with increasing scheduled payments through the year 2011. For the year ended September 30, 1992 the recommend- ed contribution rate was 22.6% of participating payroll, or $16,070,006 (14.1 % or $10,029, 747 employer and 8.5%, exclusive of 2% contribution to the COLA Account, or $6,040,259 estimated for employees), based upon an actuarial valuation performed as of October 1, 1990. The contribution requirement consists of $10,072,693 for the normal cost and $5,997,313 for the amortization of the un- funded actuarial accrued liability Contributions (excluding contributions to the COLA Account) made to FIPO pertain- ing to the year ended September 30, 1992 were approxi- mately $1 6, 145,000 GESE GESE contributions are determined using the entry age nor- mal cost method with frozen actuarial accrued Lability. Con- tributions toward the unfunded actuarial accrued liability are based on a series of increasing scheduled amortization pay- ments through the year 2007 For the year ended September 30, 1992, contributions to- taling $13,992,191 ($9,317,072-employer and $4,675,1 19-employee) were accrued in accordance with actuarially determined contribution requirements, based on an actuarial valuation performed as of October i , 1990. These contributions consisted of $5,438,773 for the normal cost and $8,553A18 for the amortization of the unfunded actuarial accrued liability. Contributions repre- sented 24.5% of the covered payroll (employer- 16.5%, employees 8%, exclusive of 2% for COLA). D. Trend Information Following is a schedule of analysis of funding progress (dollars in millions): (1) Net Assets Available for (2) (3) Fiscal Year Benefits, at Pension Percentage Ended Cost (Excludes Benefit Funded September 30 COLA Account) Obligation (1)/(2) FIPO 1992 $455.9 $458.1 99% 1991 419.4 402.6 104% 1990 375.6 409.3 92% 1989 339.4 385.9 88% 1988 304.4 357.9 85% 1987 283.6 335.7 84% GESE 1992 $224.5 $338.8 66% 1991 213.1 327.0 65% 1990 201.2 311.3 65% 1989 188.0 302.2 62% 1988 172.5 302.6 57% 1987 165.8 286.0 58% 52 (Overfunded) Unfunded Pension (4) Benefit (Overfunded) Obligation Employer Unfunded as a Contributions Pension (5) Percentage as a Benefit Annual of Covered Percentage Obligation Covered Payroll of Covered (2)-(1) Payroll (4)/(5) Payroll $ 2.2 $67.0 3% 15% (16.8) 71.4 (24)% 13% 33.7 71.1 47% 13% 46.5 71.6 65% 16% 53.5 65.4 82% 17% 52.1 63.3 82% 22% $1 14.3 $56.4 203% 17% 113.9 61.5 185% 16% 110.1 62.5 176% 21% 114.2 59.9 191% 19% 130.1 59.3 219% 21 % 120.2 60.2 200% 23% 93- 578 City of Miami, Floriaa Notes to Financial Statements Due to the long-standing litigation discussed in Section A of this Note, there had been, in prior years, significant differ- ences in the actuarially determined liabilities and funding re- quirements as calculated by the City and the two Trusts. Therefore, historical trend information regarding the pen- sion benefit obligation is not currently available The City shall compile such information on a prospective bans Se- lected 10 year historical financial information is provided in the separately issued financial statements for FIPO acid GESE The City maintains a Pension Administration trust fund (ex- pendable trust fund), which charges each deoartment of the City and other governmental contributors their respec- tive share of estimated pension plan contributions Substan- tially all amounts charged were to the General fund, and the remainder to various other funds, principally enterprise and internal service. The Pension Administration trust fund then disburses the actuarially determined required contributions to the pension trust funds E. Department of Off -Street Parking The Department of Off -Street Parking (the "Department") Enterprise fund is the sponsor of a single employer defined benefit pension plan which covers all of the Department's eligible full-time employees including employees within the facilities managed by the Department. As of September 30, 1991 , the Department's pension benefit obligation totaled approximately $1 ,860,331 The net assets available for plan benefits totaled approximately $1,937,938 as of Sep- tember 30, 1991. For the year ended September 30, 1992, actuarially determined employer contributions and overall contribution requirements were met under the plan. Refer to the Department's pension plan financial state- ments for additional information. F. Special Benefit Plans In addition to the deferred compensation plan described in Note 2(0), certain executive employees of the City are al- lowed to loin 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 of Miami employees is limited by the City Code to specific members of the City Clerk, City Man- ager, and City Attorney's offices, Department Directors, As- sistant Directors. and other executives. To participate in the plan a written trust agreement must be executed, which re- quires the City to contribute 8% of the individual's earnable :l J compensation, and the employee to contribute 10% of their salary. Participants may withdraw funds at retirement or up- on separation based on a variety of payout options. The fol- lowing information relates to the City of Miami participation ;n this plan (in thousands) Total current year payroll for all employees $ 161.071 Current year payroll for employees covered in the plan 2.798 Current year employer contributions at an 8°4, rate 224 in addition to coverage under the FIPO Pension Plan, City of Miami fire fighters and police officers are members of sepa- rate non-contributory rnoney purchase benefit plans estab- lished 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 imposed upon property and casualty insurance cov- erage within the City limits. This tax, which is collected from insurers by the State of Florida, is remitted directly by the City to the plans' Boards of Trustees. As long as the mini- mum benefit provisions of Statute Chapters 175/185 are met by FIPO, the City is entitled to levy such excise taxes solely for the use of the money purchase benefit plans. The City is currently under no obligation to make further contri- butions to the plans The total of such excise taxes received from the State of Florida and remitted to the plans was ap- proximately $5,053,000 for the year ended September 30, 1992. Benefits are allocated to the participants based upon their service during the year and the level of funding re- ceived during said year. Participants are fully vested after nine years of service. On termination of service, a partici- pant 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. G. Post -Employment Health Care Benefits In addition to providing pension benefits, the City offers to its retirees comprehensive medical coverage and Irfe bene- fits through the City's self insured plan. This plan was estab- lished in accordance with Florida State Statute Section 112.0801 ''Group Insurance, Participation by Retired Em- ployees'' 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. As indicated in Note 10(C), 1,076 of the 3,142 covered participants are retirees. Cost of the post -employ- ment health benefits, funded on a pay as you go basis, ap- proximated $4.3 million. j f City of Miami, Florida Notes to Financial Statements 13. INTERFUND TRANSFERS A summary of interfund transfers by fund type for the fiscal year ending September 30, 1992, is as follows (in thousands): Transfers In Special Debt Capital Internal Expendable General Revenue Service Projects Enterprise Service Trust Total Transfers Out General ........ $ - $ 702 $ - $ - $12,443 $ 665 $1,989 $ 15,799 Special revenue ... 29,006 - 1,374 4,071 5,729 - - 40,180 Debt service ..... 4,329 1,055 51,415 358 -- - - 57,157 Capital projects ... - - 906 5,447 479 - - 6,832 Enterprise ....... 2,536 - - 20 - - - 2,556 $35,871 $1,757 $53,695 $ 9,896 $18,651 $ 665 $1,989 $122,524 14. COMMITMENTS AND CONTINGENCIES Capital Improvement Program The City's capital improvement ordinance identified ongoing Proposed Sources of Funding Amount and future projects totaling $283 million. Major emphasis is placed on maintaining and expanding the City's infrastruc- City ture. The greater effort is directed to public facilities, street Bonds .... ............ $197,870 improvement, park facilities, storm sewers, and sanitary Capital Improvement Funds ............. 52,049 sewers. The community redevelopment projects are de- 249,919 signed to assist in neighborhood revitalization and the ex- Non -City pansion of the City's economic base. A functional distribu- Federal Grants ....................... 22,647 tion of the capital improvement ordinance and funding State Grants 7,717 sources, excluding projects financed by DOSP and MSEA Other Revenue Sources ................ 2,560 follows (in thousands): 32,924 Functional Category Amount Total Funding ........................ $282,843 Parks ................................. $ 40,169 General Government .................... 58,859 Sanitary Sewers ........................ 9,049 Street Improvements .................... 12,755 Parking Facilities ........................ 50 Community Development .............. 1. 22,223 i Marinas ............................... 18,440 Housing ............................... 20,697 Storm Sewers .......................... 30.481 Stadiums .............................. 19,105 Fire .................................. 12,899 Police ................................. 16,579 Exhibition Centers ....... . ............... 8,506 Economic Development. . . ............... 5,616 Solid Waste ........................... 4,257 Mass Transit ........................... 4,158 Total Capital Improvement Program ...... $282,843 54 93- 578 City of Miami, Florida (Votes to Financial Statements During fiscal year 1992, the C�Iy's Department of Public Works was monitoring 109 construction projects in pro- gress, or awaiting final approval, with budgets totaling ap- proximately $98 million in costs The most significant of these public works projects were • Neighborhood Parks Prograrm—Over 40 parks are being improved and renovated throughout the City at a total cost in excess of S22 million Funding for the program is provided by a $6 7 million loan proceeds from the Sunshine State Governmental Financing Commission, $3.0 million in City of Miami Guaran- teed Entitlement Bonds, $3 million loan proceeds from the Florida Leaaue of Cities and other discre- tionary City funds • Bayfront Park Redevelopment —A $20 million down- town waterfront park redevelopment project. Major funding sources include $6.6 million in federal grants, $4.4 million in Sunshine State Governmental Financing Commission loan proceeds, $3.2 million a rom the New Port Bridge land sale, $2.0 million in private sector contributions, and $1.3 million direct ppropriations from the State of Florida. Southeast Overtown/Park West The Southeast Overtown/Park West redevelopment pro- gram entails the redevelopment of 240 acres of prime real estate, adjacent to the central business district, for new res- idential and commercial activity. The general redevelop- ment concept for the project area is the provision of a wide range of housing opportunities with supporting commercial uses to serve the area's future population. By the end of the century the project area is envisioned to have the capacity to support over 9,000 residential units and over one million square feet of office and commercial space. The City has been delegated limited redevelopment powers for the im- plementation of the redevelopment plan. Public sector in- volvement will focus on land acquisition, resident relocation, demolition, project marketing, infrastructure improvements and construction and, in some instances, the provision of "gap" financing. It is estimated that private investment will exceed $1 .0 billion during the next 20 years. Phase I devel- opment started in the fall of 1988 with an initial 860 units. Public infrastructure, including utilities, is being constructed simultaneously with private development. Total public in- vestment in Phase I exceeds $58 million of which approxi- mately $21.1 million is included in the City's capital im- provement ordinance. New private construction in the amount of $200 million is planned over the next five years for a total of 1,100 residential units and 250,000 square feet of office and commercial space. Miami Sports and Exhibition Authority Construction was completed in 1988 on the Miami Arena ("Arena"), a sports/exhibition facility seating approximately 55 15,600. Under the terms of the Miami Arena Construction Funding Agreement between MSEA and the private devel- oper ("Decoma"), funding for the construction costs of ap- proximately $48,060,000 was provided by proceeds from the $38 million special obligation bonds issued by MSEA, an initial contribution of $4.7 million from MSEA, and a con- tribution of approximately $7 1 million from Decoma The Arena was constructed on land leased from the City pursuant to a Land Lease Agreement between the City, MSEA and Decoma for an initial term of 52 years with the sole option of the City to renew, upon request of MSEA, for any increment of years up to 47 years, at an annual rental of $300,000 for the first 30 years, subject to market adjust- ment thereafter Under the terms of the Miami Arena Con- tract (the ''Contract'"), the operations of the Arena shall be managed by Decoma, or designee ("Operator''), for a term of 32 years plus two ten-year renewal options. The contract calls for a seat charge of $ 7 5 to S 1 00 (based on ticket price) with the exception of Miami Heat events where a $.75 charge is collected regardless of ticket price The seat charge for Miami Heat events is deducted from rental pay- ments under the Miami Heat contract The allocation of the first $.75 of seat charge collected and of the net operating income is as follows Net Operating Income Operator MSEA Up to $1,750,000 .. 57.5% 42.5% $1 ,750,000 to $3,500,000 ...... 45.0 55.0 Over $3,500,000 ......... 40.0 60.0 Seat User Charge Up to $1 ,350,000. .... ......... 75.0% 25.0% Over $1, 350,000 .. ............. 50.0% 50.0% All additional seat charges (amounts in excess of $.75 per ticket) are held on deposit until the end of the fiscal year and then distributed as seat charges only to the extent such amounts are not otherwise applied to reduce operating losses, repay Decoma and MSEA any amounts paid in re- spect of adjusted operating expenses as required by the contract, pay amounts due the Maintenance Account, pay amounts due to the Replacement Account, or pay variable operating payments. Operating deficits are to be funded by amounts held in MSEA's maintenance fund, which held approximately $1 .2 million at September 30, 1992, and by amounts provided by future Arena operations to be deposited in a replacement fund maintained by the Operator, which is intended to pro- vide for capital improvements Decoma will provide 14% of operating losses, after first exhausting reserves, in years when the operating revenues are less than operating ex- penses. Arena operating expenses shall include $50,000 each year, increased to $1 50,000 each third year, as a contribution out of operatino income to the replacement fund. Decoma will incur liability for operating losses result- ing from operating expenses more than 1 15% of approved City of Miami, Florida (Votes to Financial Statements budget for such year MSEA will review annual Arena oper- ating budgets and will review pro forma operating state- ments. As more specifically described in Exhibit D to the contract, in the event of an operator default, MSEA is required to pay a termination fee to the Operator equal to the greater of (a) the Operator's pnvate capital contributed to the project or (b) an amount equal to 7.5 times the Operator's best in- come year Subject to the limitations in Exhibit D of the con- tract, such termination fee may be reduced based upon ei- ther the timing of the termination by MSEA or the severity of the Operator default. MSEA's allocated portion of seat use revenues was approx- imately $217,166. The seat use revenues have been re- corded in the Miami Sports and Exhibition Authority special revenue fund. Under an agreement dated May 20, 1988 between MSEA and the Miami Heat Limited Partnership (the ''Heat''), a major tenant of the Arena, MSEA has agreed to reimburse the Heat for certain excess insurance and utilities expenses paid to the Operator. Such reimbursements shall be limited, in any fiscal year, to the amount of net revenues from Arena operations allocable to MSEA plus MSEA's allocated share of seat use revenues. No such reimbursements were re- quired for as of September 30, 1992. During the current year the Heat and the Operator settled litigation related to the license agreement. The terms of the settlement provide for a contribution from the MSEA to the Operator to cover portions of Excess Selected Expenses. Such Excess Selected Expenses during 1992 amounted to $181,500. MSEA has made a continued commitment of $62,920 increasing by 4% each year, to assume partial payment of future Excess Selected Expenses, the remain- der of which would drop to the bottom line, if any. G & O Enterprise Fund The Maurice Gusman Cultural Center and the Olympia Building, whose operations are accounted for under the G & 0 Enterprise Fund, incurred operating losses before depre- ciation for fiscal years 1992 and 1991 of $448,485 and $169,755, respectively. The City has in prior years funded the operating losses net of interest earnings. During recent years decreasing Olym- pia Building rental income has resulted in increasing operat- ing losses. The viability of this enterprise fund is dependent upon increased public support for the Gusman Cultural Center, a reduction in operating losses for the Olympia Building and continued limited financial support by the City. The DOSP, the managing entity of the G&O Enterprise Fund, has advanced working capital to the G&O fund in an amount equal to the operating losses incurred by such fund during fiscal year 1992. The City has agreed to reimburse DOSP for G&0's accumulated operating deficits by ex- tending DOSP's lease on certain parking lots owned by the 56 City. If at the termination of such lease agreement a balance remains unpaid in the accumulated deficit account the City would fund the balance at that time. Litigation There are a number of claims and lawsuits outstanding against the City, arising principally from personal injuries in- curred on City property, for which liability of $68,580,000, including an actuarially determined portion for claims in- curred but not reported, was recorded in General Long - Term Debt as of September 30, 1992, as described in Note 10. Miami Marine Exposition, Inc. filed suit in the United States District Court claiming unlawful rejection of its request for proposal relating to development of Watson Island and is requesting damages. The City's motion to dismiss or for summary judgement was denied and the case is set for trial. The ultimate outcome of this claim cannot presently be de- termined. However, in the City attorney's opinion, it is likely the City may prevail on the merits. 15. HURRICANE ANDREW On August 24, 1992, Hurricane Andrew struck Dade Coun- ty causing substantial darnage. As a result of the disaster, Dade County was declared a Federal Disaster Area with the Federal Government providing 100% reimbursement for qualifying expenditures. Damage to City property is estimat- ed at $1 7.5 million. The values of the City's fixed assets have not been reduced by the amount of the estimated damage since the City believes that the various sources of recovery will at a minimum restore all property back to pre - disaster condition. In addition, as of the date of this report, cost of debris removal, public safety, emergency and loss of revenues in the City approximated $34.2 million At Sep- tember 30, 1992, $13.4 million in operational and capital expenses had been declared eligible for reimbursement from the Federal Emergency Management Agency (FEMA), of which $5 million was received as of September 30, 1992. The estimates for the total cost resulting from the disaster will approximate $54 million and will substantially be reimbursed by FEMA, insurance and the State of Flori- da's Hurricane Andrew Recovery and Rebuilding Trust Fund. The City does not expect a reduction in the property tax base since damage to the taxable property within the City has not been significant. 16. SUBSEQUENT EVENTS On October 8, 1992, the City issued $30,000,000 in Tax Anticipation Notes, Series 1992, to pay for appropriations made by the City for the fiscal year ending September 30, 1993, in anticipation of the receipts of ad valorem taxes to be collected during the fiscal year. The notes were issued at the rate of 3.25%. General Fund ad valorem taxes are being 93-- 578 City of Miami, FloriQd Notes to Financial Statements transferred in the new fiscal year to a ''Note Fund" until bal- General Obligation Refunding Bonds, Series 1987 maturing ance of the ''Note Fund'' equals the principal and interest after April 1 , 1999 The bonds were issued at rates ranging due on the notes at maturity on September 28, 1993 from 4.0% to 6% maturing through 2010 On December 10, 1992, the City Issued $70, 100,000 In March 1993, the City's Department of Off Street Parking General Obligation Refunding Bonds, Series 1992, for the issued $1 5,5 1 5,000 Parking System Revenue Refunding purpose of partially refunding the City's 522,000,000 Gen- Bonds, Series 1993A, for the purpose of refunding the out- eral Obligation Bonds, dated June 1 , 19,96 maturing after standing Parking System Revenue Bonds, Series 1986, to June 1. 1996, the $38,355,000 General Obligation Re- fund a Reserve Account, and to pay the cost of issuance of funding Bonds, Series 1986 maturing after June 1, 1996, the new bonds. The bonds were issued at rates ranging the $6,375,000 General Obligation Bonds, Series 1986A from 2.70% to 5.70% maturing through 2009 i maturing after October 1, 1996 and the $22,605,000 s t s J t ; s 57 93- 578 t COMBININGAY INDIVIDUAL FUim AND } ACCOUNT CROUP STATEMENTS AND SCHEDULES i, t ��irSR r THIS PAGE INTENTIONALLY LEFT BLANK 60 v78 ' GENERAL FUND 61 r. ryRR t rw THIS PACE INTENTIONALLY LEFT BLANK 62 Y SCHEDULE A-1 CITY OF MIAMI, FLORIDA GENERAL FUND COMPARATIVE BALANCE SHEET «� SEPTEMBER 30, 1992 AND 1991 (in thousands) 3 1992 1991 ASSETS Equity in pooled cash and investments ...... $ 970 $ 5,072 Receivables: Taxes......................................................................... 2,088 2,386 Accounts....................................................................... 6,917 4.884 Due from other funds................................................................ — 657 Due from other governments.......................................................... 8,586 2,227 Other assets....................................................................... 132 138 Totalassets................................................................. $18,693 $15,364 LIABILITIES AND FUND BALANCES + Liabilities: Vouchers and accounts payable ............................................•........ $ 3,525 $ 2,315 Accrued expenses Deferred revenue ..... ......... ..................................:............... 5,245 2.129 Deposits........................................................................ 726 844 Total liabilities............................................................... 14,744 10,241 Fund balances: 1 Reserved for encumbrances....................................................... 370 395 Unreserved: undesignated......................................................... 3,579 4,728 Total fund balances............................................................. 3,949 5,123 Total liabilities and fund balances ................................................. $18,693 $15,364 wc� 63 93- 578 i i SCHEDULE A-2 CITY OF MIAMI, FLORIDA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE --BUDGET AND ACTUAL -BUDGETARY BASIS YEAR ENDED SEPTEMBER 30, 1992 with comparative actual amounts for year ended September 30, 1991 (in thousands) 1992 Variance Favorable Actual Budget Actual (Unfavorable) 1991 i Revenues: Taxes, - Property tax collections including penalties and interest ...... $104,547 $ 99,635 $(4,912) $ 99,966 Business and excise taxes .............................. 19,068 17,396 (1,672) 18,711 j 123,615 117,031 (6,584) 118,677 Licenses and permits: Business licenses and permits ........................... 4,483 4,539 56 4,628 Construction permits ................... . . I ............ 126 158 32 145 4,609 4,697 _ 88 4,773 Intergovernmental: State revenue sharing. . ......................... 3.235 3,272 37 4,361 Sales taxes .......................................... 15,352 14,260 (1,092) 15,406 Court fines ........................................... 3,150 3,015 (135) 3,083 Other ............................................... 5,285 11,363 6,078 2,511 i 27,022 31,910 4,888 25,361 Intragovernmental: Engineering services and other .......................... 4,884 3,467 (1,417) 6,471 Charges for services: Public safety ......................................... 4,954 3,309 (1,645) 3,821 Recreation ........................................... 635 622 (13) 406 Other ............................................... 463 185 (278) 603 6,052 4,116 (1,936) 4,830 Interest ............................................... 2,883 1,945 (938) 3,438 Other revenues ......................................... 2,283 4,652 2,369 2,837 Total revenues .................................... $171,348 $167,818 $(3,530) $166,387 Continued 64 93- 578 i SCHEDULE A-2 (continued) 1992 Variance Favorable Actual Budget Actual (Unfavorable) 1991 Ex{�enditures: General government: Mayor and commission ................................ $ 1,066 $ 1,007 $ 59 $ 1,004 City manager ... .................... . ................ City clerk ... ....................................... 1 ,1 14 1,033 1,089 1,007 25 26 1,101 811 Budget ..... ....................................... 1,361 1,270 91 1,336 Finance . .................. 2,950 2,908 42 3,107 . .. ................... Legal ...... ....................................... 3,021 2,889 132 3,284 Civil service .......................................... Personnel management ................................ 292 1,887 242 1,877 50 10 284 1,955 Internal audit ........................................ Computers ........................................... 1,004 4,349 961 4,295 43 54 997 4,665 18,077 17,545 532 18,544 Public safety: Police 89,862 90.049 (187 84,291 ............................................... Fire ................................................. 45,256 45,267 (1 1 44,730 135,118 135,316 (198) 129,021 Public improvements: Public works 12,740 12,363 377 12,190 ......................................... Planning and zoning boards ............................. 1,554 1,461 93 1,563 14,294 13,824 470 13,753 Culture and recreation .................................. 10,540 10,049 491 10,628 Other: Employee benefits ..................................... 1,273 842 431 362 Special programs 979 1,106 (127) 1,385 2,536 Intragovernmental charges .............................. 2,319 5,003 2,908 5,632 (589)) (629) 5,696 Miscellaneous ........................................ 9,574 10,488 (914) 9,979 Debt service: Interest and fiscal charges .............................. 2,184 1,817 367 1,995 2,184 1 ,81 7 367 1,995 Total expenditures .............. ............ 189,787 189,039 748 183,920 Deficiency of revenues over expenditures .............. . ...... (18,439) (21,221) (2,782) (17,533) Other financing sources and (uses): Operating transfers in .................................. 31,839 35,871 4,032 34,162 Operating transfers out ................................ (18,374) (15,799) 2,575 (16,396) Total other financing sources (uses) .................. 13,465 20,072 6,607 17,766 Excess of revenues and other financing sources over expenditures and other financing uses .............. $ (4,974) (1,149) $ 3,825 233 Fund balance at beginning of year ......................... 4,728 - 4,524 (29) Equity transfers from other funds .......................... Fund balance at end of year -budgetary basis ............... 3,579 4,728 Reconciliation to GAAP basis: 370 395 Encumbrances ....................................... Fund balance at end of year-GAAP basis .................. $ 3,949 $ 5,123 aM� !(` SPECIAL REVENUE. .JNDS I Special revenue funds are used to account for specific revenues that are legally restricted to expenditure. for particular purposes. MIAMI SPORTS AND EXHIBITION AUTHORITY —to account for the administrative operations of the Authority which was established to develop and promote sports and exhibition facilities and activities in the City. The Authority's operations are principally financed by proceeds from a convention development tax. I DOWNTOWN DEVELOPMENT AUTHORI"IY—to account for the general operations of the Authority which was established to develop and revitalize the downtown area. The Authority's operations are principally financed by a . special ad valorem tax levy. RESCUE SERVICES —to account for the proceeds of an excise tax that are restricted to expenditures which supplement the City's emergency fire rescue t operations. COMMUNITY DEVELOPMENT" --to account for the proceeds from the federal government under the Community Development Block and Urban Development Action Grant Programs. LAW ENFORCEMENT FUND —to account for confiscated monies awarded to the City for law enforcement related expenditures as stipulated by State Statutes. " f METRO-DADE TOURIST TAX —to account for the proceeds of a resort tax that are restricted to expenditures related to the tourism industry. STORM SEWER WATER FUND —to account for all fees and charges collected for the operation and maintenance of the stormwater management rf system and the funding of pollution abatement devices of said system. PUBLIC SERVICE TAX FUND —to account for the utility service tax levied on y purchases of public utility services. t 4 OTHER FUNDS —to account for miscellaneous revenues from federal and { state governments and other sources that are restricted to expenditure for 1 specific current operating p p g purposes. 67 s. . 93- 578 al f ( .'i i e d i ( f k s { ( 4 t! ( ( a � p a jfF r� 3 { ( [ THIS PAGE INTENTIONALLY LEFT BLANK f f 68 f (j l F �: - O• "'� f I V {fi r I CITY OF MIAM1, FLORIDA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1992 with comparative totals for September 30, 1991 (in thousands) Miami Sports & Downtown Exhibition Development Rescue Community f Authority Authority Services Y Development i` ASSETS -1 Equity in pooled cash and investments ...... ....... $ — $— $— $ — li Other cash and investments ................................ 2,434 19 — — Accounts receivable ...................................... 615 — — 682 Due from other funds . ... ............................... 720 — — — Due from other governments ............................... — 395 — 1,057 Other assets ............................................. — — — 11 Prepaid expenses ......................................... — — — 1 Restricted cash and investments, including accrued interest ..... 1,244 — — — Total assets ........................................ $5,013 $414 $- $ 1,751 LIABILITIES AND FUND BALANCES Liabilities: Vouchers and accounts payable ........................... $ 776 $387 $ 13 $ 520 Accrued expenses ...................................... — 9 49 100 f Due to other funds ...................................... — — 6 1,131 Deferred revenue ....................................... — — — — Deposit refundable .......... . ........................... — — — — Total liabilities ...................................... 776 396 68 1,751 Fund balances: Reserved for Miami Arena ................................ 1,244 — — Unreserved: Designated for approved projects ........................ 2,900 — — — Undeslgnated........................................ 93 18 (68) — Total fund balances (deficits) .......................... 4,237 18 (68) — Total liabilities and fund balances I 1 i ...................... $5,013 $414 $- $ 1,751 J 70 I 93- 578 1 I I Law Enforcement Metro -Dade Storm Sewer Public Service Other Totals Fund Tourist Tax Water Fund Tax Fund Funds 1992 1991 $ 645 $- $ 21 $ - $ - $ 666 $ 257 - - - - - 2,453 2,206 f - - 573 2,815 154 4,839 4,220 ` 3,000 - - -• - 3,720 4,820 1 1,492 3,885 -39 - - - - 11 189 - - - - - 1 6 - - - - 3,949 5,193 _ 6,077 $3,684 $- $594 $ 2,815 $4,104 $18,375 $21 ,660 { $ 147 $- $ 18 $ - $ 337 $ 2,198 $ 2,206 6 - - - 57 221 278 2,807 523 4,467 5,564 - - - 30 30 15 - - - -- 476 476 1,430 153 - 18 2,807 1,423 7,392 9,493 - - - - - 1,244 11465 - - - - - 2,900 2,915 3,531 - 576 8 2,681 6,839 7,787 3,531 - 576 8 2,681 10,983 12,167 $3,684 $- $594 $ 2,815 $4,104 $18,375 $21,660 71 93-, 578 i i 1 CITY OF MIAMI, FLORIDA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30, 1992 with comparative totals for year ended September 30, 1991 (in thousands) Miami Sports & Downtown Exhibition Development Rescue Community Authority Authority Services Development Revenues: Property taxes........ Business and excise taxes.......... I ..................... — — 1,313 — Intergovernmental ....................................... — — 81 12,091 Interest............................................... 128 4 13 401 Other................................................. 230 30 4 2,314 Total revenues ...................................... 358 1,377 1 ,41 1 14,806 Expenditures: Public safety ........................................... — — 2,150 — Grants and related expenditures ........................... — — — 14,439 i Economic development .................................. — 1,578 — — Other................................................. 1,412 — — — Total expenditures ................................... 1,412 1,578 2,150 14,439 Excess (deficiency) of revenues over expenditures ................................. (1,054) (201) (739) 367 Other financing sources (uses): Operating transfers in .................................... 755 — 652 Proceeds from debt issuance ............................. — — — — Operating transfers out .................................. — — — (367) Total other financing sources (uses) .................... 755 — 652 (367) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses ............ P g (299) (201) (87) — Fund balances at beginning of year .......................... 4,536 219 19 — Equity transfers to other funds .............................. — — — — { Fund balances at end of year ............................... $ 4,237 $ 18 $ (68) $ E 72 i a, �3` 578 `-' SCHEDULE B-2 Law Enforcement Metro -Dade Storm Sewer Public Service Other Totals Fund Tourist Tax Water Fund Tax Fund Funds 1992 1991 $ _ $ - $ - $ - $ 780 $ 2,123 $ 1,496 5,695 29,117 - 36,125 36,662 3,145 1,621 - - 4,809 21,747 24,292 84 381 1,011 1,277 - = - = 2,813 5,391 3,298 3,229 1,621 5,695 29,117 8,783 66,397 67,025 1,743 - - - - 3,893 4,997 - - - - 5,566 20,005 23,842 - - 1,578 1,453 - 337 25 80 1,821 3,675 7,648 1,743 337 25 80 7,387 29,151 37,940 1,486 1,284 5,670 29,037 1,396 37,246 29,085 350 1`757 , 465 - - - = 11,270270 - (1,298) (5,495) (29,035) (3,985) (40,180) (39,632) - (1,298) (5,495) (29,035) (3,635) (38,423) (25,897) 's 1,486 (14) 175 2 (2,239) (1,177) 3,188 2,045 14 401 6 4,920 12,160 9,003 _ _ - _ - - (24) $3,531 $ - $ 576 $ 8 $ 2,681 $ 10,983 $ 12,167 - 73 93- 578 CITY OF MIAMI, FLORIDA MIAMI SPORTS AND EXHIBITION AUTHORITY, DOWNTOWN DEVELOPMENT AUTHORITY, RESCUE SERVICES, COMMUNITY DEVELOPMENT, LAW ENFORCEMENT FUND, METRO DADE TOURIST TAX, STORM SEWER WATER FUND, AND PUBLIC SERVICE TAX SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES --BUDGET AND ACTUAL —BUDGETARY BASIS YEAR ENDED SEPTEMBER 30, 1992 with comparative actual amounts for year ended September 30, 1991 (in thousands) Miami Sports and Exhibition Authority Downtown Development Authority Variance Variance Favorable 1991 Favorable 1991 Budget Actual (Unfavorable) Actual Budget Actual (Unfavorable) Actual Revenues: Property taxes .............. ...... $ — $ — $ — $ — $ 1,461 $ 1,343 $ I 1 18) $ 1,496 Business and excise taxes ............ — — — — — — — — Intergovernmental ................. — — — 230 — — — — Interest .... .. .................. — 128 128 237 8 4 (4) 11 Other ........ 212 230 18 238 170 30 (140) 13 Total revenues ... ............ 212 358 146 705 1.639 1,377 (262) 1,520 Expenditures: Public safety .. ........ — — — — — — — — Grants and related expenditures ....... — — — — — — — — Economic development .............. — — — — 1,639 1,578 61 1,459 Other 1,061 1,412 (351) 1,049 — — — — Total expenditures. _ . ...... 1,061 1.412 (351) 1,049 1,639 1,578 61 1,459 Excess (deficiency) of revenues over expenditures (849) (1,054) (205) (344) — (201) (201) 61 Other financing sources (uses): Operating transfers in . ..... ........ 849 755 (94) 990 — — — — Operating transfers out — — — (230) — — — — Total other financing sources (uses) . ...... 849 755 (94) 760 — — — — Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses . ... . ...... $ — (299) $ (299) 416 $ — (201) $ (201) 61 Fund balances (deficits) at beginning of year 5,108 4,692 219 158 Equity transfer to other fund .. ......... — — — — Fund balances at end of year $ 4,809 $ 5,108 $ 18 $ 219 74 93- 578 SCHEDULE B-3 Rescue Services Community Development Law Enforcement Fund Variance Variance Variance Favorable 1991 Favorable 1991 Favorable 1991 Budget Actual (Unfavorable) Actual Budget Actual (Unfavorable) Actual Budget Actual (Unfavorable) Actual i $ - $ - $ - $ - $ - $ $ _ $ - $ _ $ jjj 1,474 1,313 (161) 1,364 = - 81 81 147 17,658 12,091 (5,567) 15,202 7,688 3,145 (4,543) 1,073 4 13 9 2 - 401 401 497 1 ,21 2 84 (1, 1 28) 144 4 4 - 1 1 3 140 2,314 2,174 749 - - - - I i 1,482 1,411 (71) 1,626 17,798 14,806 (2,992) 16,448 8,900 3.229 (5,671) 1,217 2,134 2,150 (16) 2,273 - - - - 8,900 1,743 7,157 2,008 ( - - - - 17,798 14,439 3,359 15,674 - - - - j j 2,134 (16) 7,157 2.008 15,674 1,743 14,439 3,359 8.900 2,273 17,798 2,150 (652) (739) (87) (647) - 367 367 774 - 1,486 1,486 (791) 1 652 652 - 618 - - - 225 - - - (2) - (367) (367) (999) _ _ _ 652 652 - 616 - (367) (3671 (774) - - - - $ - (87) $ (87) (31) $ - - $ - - $ - 1.486 $ 1,486 (791) -50 2`045 2,836 -19 $ (68) $ 19 $ - $ - $ 3,531 $ 2,045 Continued 75 93- 578 CITY OF MIAMI, FLORIDA MIAMI SPORTS AND EXHIBITION AUTHORITY, DOWNTOWN DEVELOPMENT AUTHORITY, RESCUE SERVICES, COMMUNITY DEVELOPMENT, LAW ENFORCEMENT FUND, METRO DADE TOURIST TAX, STORM SEWER WATER FUND, AND PUBLIC SERVICE TAX SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES —BUDGET AND ACTUAL —BUDGETARY BASIS YEAR ENDED SEPTEMBER 30, 1992 with comparative actual amounts for year ended September 30, 1991 (in thousands) Metro Dade Tourist Tax Storm Sewer Water Fund Variance Variance Favorable 1991 Budget Actual (Unfavorable) Actual Budget Actual Favorable 1991 (Unfavorable) Actual Revenues: Property taxes ... .............. $ — $ — $ — $ — $ — $ _ $ — $ — Business and excise taxes ............ — — — —6,100 5,695 (405) 5,756 Intergovernmental .................. 1,460 1,621 161 1,540 — — — — Interest — —— — — Other — — Total revenues . . ............. 1,460 1,621 161 1,540 6,100 5,695 (405) 5,756 Expenditures Public safety . ......... ...:.. — — — — — — — — Grants and related expenditures — — — — — — — — Economic development ... ........ — — — — — — — — Other 306 337 (31) 300 25 25 — 25 Total expenditures 306 337 (31) 300 25 25 — 25 Excess (deficiency) of revenues over expenditures ..... 1,154 1,284 130 1,240 6,075 5,670 (405) 5,731 Other financing sources (uses). Operating transfers in Operating transfers out (1,154) (1,298) (144) (1,240) (6,075) (5,495) 580 (5,333) Total other financing sources (uses) . ......... (1,154) (1,298) (144) (1,240) (6,075) (5,495) 580 (5,333) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses ... .......... $ — (14) $ (14) — $ — 175 $ 175 398 Fund balances (deficits) at beginning of year 14 14 401 3 Equity transfer to other fund — — — — Fund balances at end of year .......... $ — $ 14 $ 576 $ 401 76 93- 578 Public Service Tax Fund Total i Variance Variance Favorable 1991 Favorable 1991 Budget Actual (Unfavorable) Actual Budget Actual (Unfavorable) Actual $ - $ - $ - $ - 1,461 $ 1,343 $ (118) $ 1,496 28,529 29.117 588 28,604 36,103 36,125 22 35,724 - - - - 26,810 16,938 (9,872) 18,192 18 1,224 630 (594) 909 = 4 = - 526 2,578 2.052 1 ,1 13 28,529 29.117 588 28.622 66,124 57,614 (8,510) 57.434 - 11,034 3,893 7,141 4,281 _ _ 17,798 14,439 3,359 15,674 I - - - - 1,639 1,578 61 1,469 80 80 - - 1,472 1,854 (382) 1,374 80 80 - - 31,943 21,764 10,179 22,788 28,449 29,037 588 28,622 34,181 35,850 1,669 34,646 - - - - 1,501 1.407 (94) 1,833 (28,449) (29,035) (586) (29,164) (35,678) (36,195) (517) (36,968) (28,449) (29.035) (586) (29.164) (34,177) (34,788) (611) (35,135) $ - 2 $ 2 (542) $ 4 1,062 $ 1,058 (489) 6 548 7,812 8,325 � 77 SCHEDULE B-3 (continued) DEBT SERVICE FUNS s The debt service funds are used to account for the accumulation of resources and payment of general obligation bond principal and interest from governmental resources and 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 4 tax. MSEA SUBORDINATE SPECIAL OBLIGATION BONDS —to account for the payment of principal, interest and other costs related to the Subordinate } Obligation Bonds, Series 1989A. The Bonds are collateralized by the convention development tax proceeds, but on a basis subordinate to the Special Obligation Refunding Bonds, Series 1991. MSEA SPECIAL OBLIGATION BONDS --to account for monies for payment of f principal, interest and other costs related to the MSEA Special Obligation i Bonds, Series 1991. Debt service is financed through proceeds from the convention development tax. j MSEA SPECIAL OBLIGATION REFUNDING BONDS —to account for the payment of principal, interest and other costs related to the MSEA Special Obligation Refunding Bonds, Series 1992A and 1992B. Debt service is financed through proceeds from the convention development tax. OTHER SPECIAL OBLIGATION BONDS —to account for monies for payment of principal, interest and other costs related to the Special Obligation Bonds, Series 1986A, Guaranteed Entitlement Revenue Bonds, Series 1989, Community Redevelopment Revenue Bonds, Series 1990 and Rental ` Revenue Bonds, Series 1988. t f f< F %9 +F f t tY f M R fe021 CITY OF MIAMI, FLORIDA J DEBT SERVICE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1992 with comparative totals for September 30, 1991 (in thousands) MSEA MSEA v; Subordinate MSEA Special Other General Special Special Obligation Special Totals Obligation Obligation Obligation Refunding Obligation Bonds Bonds Bonds Bonds Bonds 1992 1991 a ASSETS Equity in pooled cash and investments ............... $3,355 $— $ — $— $245 $3,600 $3,873 Receivables: Taxes .................... 816 — 434 — — 1,250 705 Restricted cash and investments 22 4 2,396 728 478 3,628 4,122 Total assets ............. $4,193 $ 4 $2,830 $728 $723 $8,478 $8,700 LIABILITIES AND FUND BALANCES Liabilities: P Due to other funds ........... $ — $— $ 720 $— Matured bonds and interest payable .................. 3,485 — — 711 Other payables .............. 18 — — — Total liabilities ........... 3,503 — 720 711 Fund balances: Reserved for debt service ..... 690 4 2,110 17 Total fund balances ....... 690 4 2,110 17 1 Total liabilities and fund balances .............. $4,193 $ 4 $2,830 $728 i A� 81 I $— $ 720 $ 720 642 4,838 5,721 — 18 39 642 5,576 6,480 81 2,902 2,220 81 2,902 2,220 $723 $8,478 $8,700 93- 578 SCHEDULE C-2 CITY OF MIAMI, FLORIDA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30, 1992 with comparative totals for year ended September 30, 1991 (in thousands) MSEA MSEA Subordinate MSEA Special Other General Special Special Obligation Special Totals Obligation Obligation Obligation Refunding Obligation Bonds Bonds Bonds Bonds Bonds 1992 1991 . Revenues: Taxes ................... $24,514 $ - $ 5,190 $ - $ 657 $ 30,361 $ 29,661 Assessment lien collections 29 - - - - 29 - Intergovernmental ......... - - - - 3,721 3,721 3,1 1 1 Interest ................. 565 8 151 2 111 837 549 Other ................... 8 - - - 2,278 2,286 119 Total revenues........ 25,116 8 5,341 2 6,767 37,234 33,440 Expenditures: Debt service: Principal retirement ...... 11,375 - - - 791 12,166 11,695 Interest and fiscal charges 12,620 230 2,171 442 3,955 19,418 17,415 Other ................... 238 104 226 - 40 608 4,878 Total expenditures..... 24,233 334 2,397 442 4,786 32,192 33,988 Excess (deficiency) of revenues over expenditures .......... 883 (326) 2,944 (440) 1,981 5,042 (548) Other financing sources (uses): Operating transfers in ...... - 8,457 41,108 1,851 2,279 53,695 14,528 Operating transfers out .... (557) (149) (3,329) (49,028) (4,094) (57,157) (19,307) Proceeds from debt issuance ............... - - - 7,807 - 7,807 - Redemption of debt ....... - (8,030) - - - (8,030) (38,000) Proceeds of refunding bonds ................. - - - 40,950 - 40,950 38,000 Payment to refunded bond escrow agent .......... - - (40,502) - - (40,502) - Bond issuance costs ...... - - - (1,123) - (1,123) (1,279) Total other financing sources (uses) ...... (557) 278 (2,723) 457 (1,815) (4,360) (6,058) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses .............. 326 (48) 221 17 166 682 (6,607) Fund balances (deficit) at beginning of year ......... 364 52 1,889 - (85) 2,220 9,540 Equity transfer to other fund ... - - - - - - (713) Fund balances at end of year $ 690 $ 4 $ 2,110 $ 17 $ 81 $ 2,902 $ 2,220 83 93- 578 CITY OF MIAMI, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL —GENERAL OBLIGATION BONDS AND OTHER " SPECIAL OBLIGATION BONDS DEBT SERVICE FUNDS YEAR ENDED SEPTEMBER 30, 1992 with comparative totals for year ended September 30, 1991 (in thousands) General Obligation Bonds Variance Favorable 1991 Budget Actual (Unfavorable) Actual Revenues: Taxes .................................................. $ 24,740 $ 24,514 $ (226) $ 24,743 Assessment lien collections ................................ 572 29 (543) — Intergovernmental ....................... . ................ — — --_. — Interest ................................................ 451 565 114 109 Other .................................................. — 8 8 Total revenues ....................................... 25,763 25,116 (647) 24,852 Expenditures: Debt service: Principal retirement ..................................... 11,375 11,375 — 10,995 Interest and fiscal charges ............................... 13,321 12,620 701 12,363 Other .................................................. 617 238 379 1,573 Total expenditures .................................... 25,313 24,233 1,080 24,931 Excess (deficiency) of revenues over expenditures ......... 450 883 433 (79) Other financing sources (uses): Operating transfers in ..................................... — — — — Operating transfers out ................................... (450) (557) (107) (382) Total other financing sources (uses) ..................... (450) (557) (107) (382) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses ..................... $ — 326 $ 326 (461) Fund balances at beginning of year ........................... 364 1,538 Equity transfer to other fund ................................. — (713) Fund balances (deficit) at end of year ......................... $ 690 ., $ 364 84 93-- 578 �_� � / ` `~^ ! - � � | Other Special Obligation Bonds Total Variance Variance Favorable 1991 Favorable 1991 Budget Actual (Unfavorable) Actual Budget Actual (Unfavorable) Actual $ 671 $ 057 (14) $ 700 $25.417 $25.777 $ (240) $25.449 ~ -- -- -- -- 572 28 (543) -- | 3.079 3.721 042 3.111 3.079 3'721 642 3.111 / 300 111 (189) 120 751 076 (75) 235 -- 2,278 2,278 119 -- 2�8G 2.286 119 ' ( 4,050 --� 0--�,767 2-�,-��717 4---,�002 29-��8l3 31-�-�8O3 2-��O7O 28-��S14 - 500 781 (291) 330 11.875 12.160 (281) 11.325 } 1.634 3.955 (2.321) 2'078 14.955 16.575 (1.020) 14.442 37 40 2��) 654 __278 376 4�92 / 2�17l -� 4--�78O 2-��015> 5,�228 27,484 20-��O|S ,535> 30,159 -�-�� 1,879 1,981 102 p,166> 2,329 2,884 535 (1,245) 1.700 2.279 519 3.839 1.700 2.270 519 3.839 � 0 (4,094) 55) 309> 4089) (4,651) 502> > 8 5 04 747 > 2372> 3> 305 � $ -- 186 & 160 (419) $ -- 482 $ 492 (880) (85) 334 278 1'872 | —�__ —�__ —(713) '^ $ 81 $ 279 { ,J =] ' ' ' i > 85 ! SCHE0ULEC'3 \ \ =* K&�~~ �p�� | ( ` �� «�v } tfi CAPITAL PROJEC FUNDS ti Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. STREET IMPROVEMENTS —to account for expenditures made for street improvements and other traffic -related projects. CULTURE AND RECREATION —to account for the acquisition or construction of major capital facilities for cultural and recreational activities such as parks and parks facilities. MUNICIPAL USE —to account for the acquisition or construction of major capital facilities that support the City's police, fire, computers, communications, and general governmental operations. PUBLIC USE —to account for the acquisition of construction of major capital facilities for public use such as housing and community redevelopment. SEWERS —to account for expenditures for the construction of sanitary and storm sewers. MIAMI ARENA —to account for the construction of a 15,600 seat multi- purpose arena in Downtown Miami. EXHIBITION EXPANSION —to account for the expansion of the City of Miami/University of Miami James L. Knight Convention Center and the Coconut Grove Exhibition Center. 87 t is 7 8 CITY OF MIAMI, FLORIDA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET SEPTEMBER 30. 1992 ,;. with comparative totals for September 30, 1991 (in thousands) Street Culture and Municipal Public Miami Exhibition Totals Improvements Recreation Use Use Sewers Arena Expansion 1992 1991 ASSETS Equity in pooled cash and investments $5,532 $4,418 $ 5,096 $ 5,972 $6,549 $ - $- $27,567 $43,539 Assessment Dens receivable - - 4,582 - - - - 4,582 • 5,717 Due from other funds 1,000 838 8,159 4,841 2.399 - - 17,237 3,700 1 } Due from other governments - 196 - - 129 - - 325 566 Restricted cash and I investments - 1,968 917 - - 6,756 979 10,620 26,247 i I Total assets $6,532 $7.420 $18,754 $10,813 $9,077 $6,756 $979 $60,331 $79,769 LIABILITIES AND FUND BALANCES Liabilities Vouchers and accounts payable $ 864 $ 334 $ 1,143 $ 47 $1,296 $ 48 $- $ 3,732 $ 5,756 Accrued expenses ... ... - 2 4 - - - - 6 6 } Deferred revenue I assessments - - 3,154 - - - - 3,164 5,177 } Due to other governments 115 648 46 43 _ - 879 370 Other payables -27 41 - 41 1 Accrued interest - - - - =_ - - - 347 4 i Total liabilities 979 363 4,949 134 1.339 48 - 7,812 11,656 Fund balances Reserved for- Encumbrances 1,092 962 11,867 557 2,405 - - 16,883 38,137 ( Construction . - - - - - 6,708 979 7,687 7,118 Unreserved -designated for approved projects....... 4,461 6,095 1,938 10,122 5,333 - - 27,949 22,858 Total fund balances 5,553 7,057 13,805 10,679 7,738 6,708 979 52,519 68,113 1 Total liabilities and fund balances .... $6,532 $7,420 $18,754 $10,813 $9,077 $6,756 $979 $60,331 $79,769 89 - 93- 578 CITY OF MIAMI, FLORIDA j CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES i AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30, 1992 with comparative totals for year ended September 30, 1991 (in thousands) Street Culture and Municipal Public Miami Exhibition Totals Improvements Recreation Use Use S Or ers Arena Expansion 1992 1991 Revenues: Intergovernmental $ 607 $ 333 $ - $ - $ 1.430 $ - $ - $ 2.370 $ 1.497 Assessment hen collections. - - 2,760 - - - - 2,760 3.548 Interest 270 196 1,460 481 111 327 36 2,881 4,937 Impact fees - - - 516 - -- - 516 853 Other - - 1 ,1 75 451 - -_ - 1,626 1,948 Total revenues 877 529 5,395 1,448 1,541 327 36 10,153 12,783 Expenditures Capital outlay 5,832 3,900 20.371 3.030 8,993 6 123 42,255 33.519 Interest expense - - 509 - - - - 509 - Total expenditures 5,832 3,900 20,880 _ 3,030 8.993 6 123 42,764 33,519 Excess (deficiency) of revenues over expenditures (4,955) (3,371) (15,485) (1,582) (7,452) 321 (87) (32,611) (20.736) Other financing sources (uses) Operating transfers in .. 3,179 2,248 1,938 1,020 1,176 335 - 9,896 22,727 Operating transfers out (1,014) (4,196) (1,198) (1 74) (250) - - (6,832) (19,502) Proceeds from debt issuance, net - 3,953 - - 10,000 - - 13,953 9,916 Total other financing sources (uses) 2,165 2,005 740 846 10,926 335 - 17.017 13,141 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (2,790) (1,366) (14,745) (736) 3,474 656 (87) (15,594) (7,595) Fund balances, at beginning of year ...... 8,343 8,423 28,550 11,415 4,264 6,052 1,066 68,113 74,995 Equity transfer from other j funds . .. ... ..... - - - - - - - - 713 i Fund balances at end of year .......... $ 5,553 $ 7.057 $ 13,805 $10,679 $ 7,738 $6,708 $ 979 $ 52,519 $ 68.1 13 m In' F )i C ENTERPRISE FUNS. � E ! Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises —where the intent is that the costs of providing goods or services to the general public on t a continuing basis be financed or recovered primarily through user charges; or where periodic determination of net income is appropriate for accountability purposes. r OFF-STREET PARKING --to account for the operations of the Department of Off -Street Parking which operates various parking facilities throughout the City. i G & 0 ENTERPRISE FUND —to account for the operations of the Gusman Center for the Performing Arts and the Olympia Building as managed by the Department of Off -Street Parking. t MARINE STADIUM ---to account for the operations of the Marine Stadium on ( Virginia Key. MIAMI STADIUM —to account for the operations of the Bobby Madura Miami r Baseball Stadium. ORANGE BOWL STADIUM —to account for the operations of the Orange Bowl Stadium. CONVENTION CENTER —to account for the operations of the City of r Miami/University of Miami James L. Knight International Center and Parking f Garage. MARINAS —to account for the operations of the Dinner Key Marina and Miamarina. ` EXHIBITION CENTER --to account for the operations of the Coconut Grove Exhibition Center. GOLF COURSES —to account for the operations of the Mel Reese Golf Course and the Miami Springs Golf Course. ` WAREHOUSE PROPERTY —to account for the operations of a warehouse facility leased to the Orange Bowl Committee. PARKING GARAGE —to account for the operations of the Government Center Parking Garage. BUILDING AND ZONING —to account for inspection and zoning activities that • are funded via service fees. SOLID WASTE —to account for solid waste collection costs and billings. MANUEL ARTIME CENTER --to account for the operations of the Manuel Artime Center, which promotes educational and cultural programs and provides special community services to citizens of Miami. A s . 1 91 ' (� 93i_" Q 8 { �4 THIS PAGE INTENTIONALLY LEFT BLANK 93- 578 I SCHEDULE E- CITY OF MIAMI, FLORIDA ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1992 with comparative totals for September 30, 1991 (in thousands) Off -Street G&O Orange Enterprise Marine Miami Bowl Convention Exhibition Golf Warehouse Perking Building and Solid Manuel Artime Totals Tota Parking Fund Stadium Stadium Stadium Center Marinas Center Courses Property Garage Zoning Waste Center 1992 _ 1991 ASSETS Current assets' Equity in pooled cash and investments $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1 $ - $ - $ - $ 32 $ 33 $ 13 Oilier cash and investments 8,081 246 - - - - - - - - - - - - 8.327 6,40' Accounts receivable (net), where applicable of allowances for uncollectihlesof$i,563 261 46 7 3 - 70 33 50 27 - - 7 5,359 7 5,870 6,11; Due from other lunds 137 - - - - - - - - - - - - - 137 1,651 Due from other governments - - 5 5 7,017 35 85 69 56 - - 102 2,560 1 9.935 - Prepaid expenses 303 47 - - - - - - - - 75 1 - - 426 54! Total current assets 8,782 339 12 8 7.017 105 118 119 83 1 75 110 7,919 40 24,728 14,75 Restricted cash, investments and accrued interest including cash with fiscal agents 3,809 - - - - 5,056 - - - - 184 - - - 9,049 16.37 Property, plant and equipment 32,331 3.223 2,313 2,654 32,853 92,230 20,325 12,465 1,610 519 8,468 142 3,600 12 212,745 204.40 Less Accumulated depreciation (12,961) 11,594) (1,720) (1,381) (9,515) (15,504) (1,580) (2,328) (908) (313) (1,462) (69) (966) (4) (50,305)' (48.09( Property, plant acid equipment, net 19,370 1.629 593 1,273 23,338 76,726 18,745 10.137 702 206 7,006 73 2.634 8 162.440 156.31. Other assets Due Irorn other funds -long term 725 - - - - - - - - - - - - - 725 - Deposits an(] other assets 1,342 - - - - - - - - - - - - - 1,342 55`. Bond issuance costs, net 485 - - - 28 662 - - - - 225 - - - 1,400 1,1 7! Total other assets 2.552 - - - 28 662 - - - - 225 - - 3,467 1,73, Total assets $34,513 $1,968 $ 605 $1,281 $30,383 $82,549 $18.863 $10,256 $ 785 $ 207 $ 7.490 $ 183 $10,553 $ 48 $199,684 $189,17'. (Continued tit8{ � '� '�rl{�P t"yA4F°h'd�t 'k NeW.4u,t� �niW4'YI`1� �� zttiwlmw'1 w+�•.a.w www..n+ w...-- .....�.,...... .. ..... ....'. SCHEDI (con CITY OF MIAMI, FLORIDA ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1992 with comparative totals for September 30, 1991 (in thousands) Off-street G&O Enterprise Marine Miami Orange Bowl Convention Exhibition Golf Warehouse Property Parking Garage Building and Zoning Manuel Solid Artime Waste Canter Tot -- -- 1992 Parking Fund Stadium Stadium Stadium Center Marinas Center Courses LIABILITIES AND FUND EQUITY Current liabilities (payable from current assets): Vouchers and accounts payable .. $ 2,304 $ 102 $ 28 $ 22 $ 2,327 $ 165 $ 144 $ 119 $ 39 $ - $ 60 $ 57 $ 7,671 $ 26 $ 13.064 Accrued expenses (principally 13 23 117 111 155 26 92 - - 612 2,524 29 3.702 salaries) Due to other funds - 137 193 825 5,553 2,528 292 116 326 - 51 610 4,438 - 15.069 Due to other governments - - - - - 142 - - 63 - 42 - - - - 91 - _ _ - 2 233 681 Deferred revenue 519 - 55 - 1 - 316 - 2 - - 98 - 785 Co Deposits refundable 332 36 - - CM Total current liabilities (payable from current assets) 3,155 275 289 870 8,061 2,946 907 303 459 - 202 1,377 14,633 57 33.534 Current liabilities (payable from restricted assets) Accrued interest 543 - - - 40 786 32 - - - 283 - - - 1,684 Current portion of revenue bonds - 75 2,980 310 51 - - 545 - - 4,721 payable 760 - - Total current liabilities (payable from restricted assets) 1,303 - - - 115 3,766 342 51 - - 828 - - - 6.405 Long-term liabilities Revenue bonds payable-nel 19,945 - - - - 61.455 - - - - - - - - 81.400 Special obligation bonds and loans - - 12,009 - 11,284 1,816 - - 11_567 - - - 36,725 payable -net Due to other funds - 725 - - - - - - - - - - - 725 Total long-term liabilities 19,945 725 - - 12,009 61,455 11,284 1,816 - - 11,567 _-_ - - 118,801 Total liabilities 24.403 1,000 289 870 20,185 68,167 12,533 2,170 459 - 12,597 1.377 14,633 57 158,740 Fund equity Contributed capital - 3,028 699 1,654 11,552 46,256 2,787 10,929 405 22 634 270 3,554 - 81,790 Retained earnings (deficit) Reserved for debt service 2.506 7,604 - (2,060) - - (383) (1,243) - 1,415 - - (1,354) (33,289) 3,543 (2.843) - - (79) 185 - (5,741) - (1,464) _ (7,634) _ (9) 3,921 (44,767) Unreserved Total retained earnings (deficit) 10,110 (2,060) (383) (1,243) (1,354) (31,874) 3,543 (2,B43) (79) 185 (5,741) (1,464) (7,634) (9) (40,846) Total lund equity (deficit) 10,110 968 316 411 10,198 14,382 6,330 8,086 326 207 (5,107) (1.194) (4,080) (9) 40.944 ( Total liabilities and fund equity $34,513 $1,968 $ 605 $1,281 $30,383 $82,549 $18,863 $10,256 $ 785 $ 207 $ 7,490 $ 183 $10,553 $ 48 $199,684 SCHEDULE E-2 CITY OF MIAMI, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY YEAR ENDED SEPTEMBER 30, 1992 with comparative totals for the year ended September 30, 1991 (in thousands) G&O Orange Building Manuel Totals Off -Street Enterprise Marine Miami Bowl Convention Exhibition Golf Warehouse Parking and Solid Anima Parking Fund Stadium Stadium Stadium Center Marinas' Center Courses Property Garage Zoning Waste Center 1992 1991 Operating revenues: Charges for services $ 9,601 $ 629 $ 144 $ 73 $ 1,309 $ 3,728 $2,533 $ 544 $1,158 $ - $ 325 $ 4.625 $16,329 $145 $41.143 $44.981 Operating expenses Personal services 2,953 421 68 101 1.048 901 1,094 235 745 - - 4,351 17,179 309 29.405 32.213 Contractual services 1,578 43 9 - 266 2,729 56 98 116 - 374 207 1,310 37 6.823 5,907 Materials and supplies 108 - - - 51 13 25 11 89 - - 30 1 1 1 5 443 483 Utilities 251 185 42 42 182 11 254 131 76 - - 3 45 75 1.297 1.520 Intragovernmental charges - - 56 38 276 9 40 73 162 - - 150 2,814 109 3,727 3,731 Other 1,434 429 68 - 141 286 - 6 15 1 22 162 10.304 13 12,881 10,406 Total 6,324 1,078 243 181 1,964 3,949 1.469 554 1,203 1 396 4,903 31.763 548 54.576 54.260 Operating income (loss) before depreciation expense 3,277 (449) (99) (108) (655) (221) 1,064 (10) (45) 0 (71) (278) (15.434) (403) (13.433) (9.279) Depreciation expense ... 1,323 285 35 67 513 1,768 150 154 39 13 159 13 241 2 4.762 4,886 o Operating income (loss) 1,954 (734) (134) (175) (1,168) (1,989) 914 (164) (84) (14) (230) (291) (15,675) (405) (18.195) (14,165) Nonoperaling revenues (expenses) Interest income 579 - - - 1 224 - 1 - - 4 - 32 - 841 928 Interest and fiscal charges (1,488) - - - (361) (4,603) (483) (94) - - (837) - - - (7.866) (8,265) Other (472) 423 3 3 2,012 35 (69) 189 57 - (30) ill 2,905 1 5,168 1.941 Net nonoperaung revenues (expenses) (1,381) 423 3 3 1,652 (4,344) (552) 96 57 - (863) ill 2.937 1 (1,857) (5.396) Income (loss) before operating - transfers 573 (311) (131) (172) 484 (6,333) 362 (68) (27) (14) (1,093) (180) (12.738) (404) (20,052) (19,561) Operating transfers in - - 191 - 273 4,781 17 - - - 946 - 12,012 431 18.651 17,256 Operating transfers out - - - - (2,000) - - - (20) - - (536) - - (2,556) (2,550) Net income (loss) 573 (311) 60 (172) (1,243) (1,552) 379 (68) (47) (14) (147) (716) (726) 27 (3,957) (4,855) Retained earnings (deficit) at beginning of year 9,537 (1,749) (443) (1,071) (ill) (30,322) 3,164 (2,775) (32) 199 (5,594) (748) (6,908) (36) (36.889) (32.433) Equity transfer to other funds - - - - - - - - - - - - - - - 399 Retained earrings (deficit) at end of year 10,110 (2,060) (383) (1,243) (1,354) (31,874) 3,543 (2,843) (79) 185 (5,741) (1,464) (7,634) (9) (40,846) (36.889) Contributed capital at beginning of year - 2,633 699 1,654 4,552 46,256 2,787 10,929 405 22 634 267 3,312 - 74,150 75,430 Contributions from other governments .. - 395 - - 7,000 - - - - - - - - - 7,395 407 Contributions from other funds - - - - - - - - - - - 3 242 - 245 600 Equity transfer to other funds - - - - - - - - - - - - - - - (2,287) Contributed capital at end of year ... - 3,028 699 1,654 11,552 46,256 2,787 10,929 405 22 634 270 3.554 81,790 74.150 Total fund equity (deficit) . ...... $10.110 $ 968 $ 316 $ 411 $10,198 $14,382 $6,330 $ 8,086 $ 326 $ 207 $(5,107) $(1,194) $ (4,080) $ (9) $40.944 $37.261 SCHEDULE E-3 CITY OF MIAMI, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 1992 with comparative totals for the year ended September 30, 1991 (in thousands) G&O Orange Building Manuel Totals Off -Street Enterprise Marine Miami Bowl Convention Exhibition Golf Warehouse Parking and Solid Artime Parking Fund Stadium Stadium Stadium Center Marinas Center Courses Property Garage Zoning Waste Center 1992 1991 Reconciliation of operating income to net cash provided by operating activities Operating income (loss) $ 1.954 $(734) $1134) $(175) $ (1,168) $(1.989) $ 914 $1164) $(84) $(14) $ (230) $(291) $(15,675)$(405)$(18,195)$(14.165 Adjustments to reconcile operating income to net cash provided by operating activities Loss (gain) on property, plant and equipment — — — — — — 115 — — — — — 115 6 Depreciation and amortization 1,323 285 35 67 538 1,799 150 154 39 13 138 13 241 2 4,797 5.053 (Increase) decrease in assets Accounts receivable (net) (4) 42 7 (3) 493 (22) (5) 24 (1) — — 560 1854) (4) 233 (1,673)" Prepaid expenses and other current rp assets 146 17 — — — — — — 1 (42) 1 — — 123 1 00 Deposits and other assets — 15 — — — — - — — — 75 — — — 90 — Due from other Binds — — — — 580 — — — — — — — — — 580 362 Due from other governments — — (5) (5) (7,017) (35) (85) (69) (56) ' — — (102) (2,560) (1) (9,935) — Increase (decrease) in liabilities Vouchers and accounts payable 66 (14) 19 6 1,109 (56) 39 24 (33) — (35) (26) 5.564 5 6,668 (1,414) Accrued expenses — — — 1 7 1 1 (1) 2 4 — — 21 (14) 1 22 1,965 Due to other funds — — (160) 116 5,553 1,162 (320) 20 98 — 2 475 (1,640) — 5,306 ' 5,255 Due to other governments — — — — — 142 - — — — 91 — — — 233 — Deferred revenue (66) (1) 50 — (110) — — 8 — — — — — 1 (118) (720) Deposits refundable 260 (17) (2) (10) (4) — 23 — — — — (205) — (4) 41 227 Other accruals 19 — — — 16 (35) 32 — — — (34) — — — _ (2) (115) Total adjustments 1,744 327 (56) 172 1,165 2,956 (52) 163 51 14 195 737 737 — 8,153 8,947 Net cash provided by operating ar.tiwties 3,698 (407) (190) (3) (3) 967 862 (lj (33) (35) 446 (14,938) (405) (10,042) (5.218) Cash flows from non -capital financing activities Increase (decrease) in advances — (108) _ — — (108) 361 Operating transfers in — — 191 — 273 4,837 446 — — — 946 — 12,012 431 19,136 17.256 Operating transfers out — — — — (2,000) (56) (429) — (20) — (536) — — (3.041) (2,550) Net cash provided by non -capital financing activities $ — $(108) $ 191 $— $ (1,727) $ 4,781 $ 17 $— $(20) $— $ 946 $(536) $ 12.012 $ 431 $ 15,987 $ 15.067 (Continued) _ . J ..�.....a SCHEDULE (Continu CITY OF MIAMI. FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 1992 with comparative totals for the year ended September 30, 1991 (in thousands) Off -Street G&O Enterprise Orange Marine Miami Bowl Convention Exhibition Golf Warehouse Perking Building Manuel and Solid Artima Totals Parking Fund Stadium Stadium Stadium Center Marines Center Courses Property Garage Zoning Waste Center 1992 199 Cash flows from capital and related financing activities Capital expenditures $ (311) $(525) $ (4) $— $01,100) $ (36) $ (35) $ (48) $ (4) $_ $ - $ 124) $ (253) $ (4) $112,3441$ (5,t Contributed capital — 395 — — — (8) — — — — — 3 242 — 632 Contributions Irom other governments — 423 -- — 7.000 8 — — — — — — 7.431 — Interest paid on long term debt (1.419) — — — (361) (4,603) (4831 (94) — — (837) — — — IT7971 18.1 Bond proceeds 4,691 — — — — — — — — — — — _ _ 4.6J 1 Borrovnngs under participation agreement (1,065) — 11 Ab61 Principal payments on debt (3,385) — — — (3,916) (960) (292) (47) — — 1270) — — — (8(3121 Other payments (312) — — — — — — — — — — — — (3121 l CD Net cash used for capital and related _ financing activities (1,801) 293 (4) — (8,377) (5,599) (810) (189) (4) — (1,1071 (21) (11) 14) (17.6341 (14,8 Cash flows from investing activities -- (Increase) decrease in amounts due tram other funds 108 — — — — — 108 11 interest income (expense) 535 — 3 3 2,013 259 169). 190 57 — (26) ill 2,937 1 6.014 9 Payments received on notes receivable — — — — — — — — — — — — Proceeds from maturity of — — — investments 29.956 — — — — — — — — — — — — — 29.956 IA Purchase of investments (29,893) — — — 129,8931 (1.4 Other — — — — — — 2.0 Net cash provided from investing — activdies 706 — 3 3 2,013 259 (69) 190 57 — (26) 1 1 1 2,937 1 6,185 2.; Nei increase (decrease) in cash and cash equivalents 2.603 (222) — — (8,094) 408 — — — — (222) - — 23 (Fi.504) I2.(1 Cash and cash equivalents at beginning of year 9,287 468 — — 8,094 4,648 — — — 1 406 — — 9 22,913 24,9 Cash and cash equivalents at end of — year $ 11,890 $ 246 $ — $ — $ — $ 5,056 $ — $ — $— $ 1 $ 184 $ — $ — $ 32 $ 17.409 $ 22.9 Supplemental disclosure of noncash activities Equity iransler to other funds $ — $ — $ — $ — $ — $ — $ — $ — $_ $_ $ — $ — $ — $ _ $ _ $ ( Equity transfer from other funds $ — $ — $ — $ — $ — $ — $ — $ — $__ $— $ — $ __ $ — $ — $ — $ (( CITY OF MIAMI, FLORIDA ENTERPRISE FUNDS SCHEDULES OF OPERATIONS —BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 1992 -- (in thousands) Off -Street Parking G&O Enterprise Fund Marine Stadium Variance _ Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Operating revenues: Charges for services. $ 9,375 $ 9,601 $ 226 S 1,064 $ 629 S (4351 S 126 S 14-1 S 18 Operating expenses: Personal services 3,282 2,953 329 481 421 60 63 68 (5) Contractual services, maintenance, and other operating expenses. 4,530 3,371 1.159 918 657 261 175 175 — Total operating expenses 7,812 6,324 1,488 1,399 1,078 321 238 243 (5) Operating income (loss) before depreciation expense 1,563 3,277 1,714 (335) (449) (114) (112) (99) 13 Nonoperating revenues (expenses) Interest income .... 521 579 58 15 — (15) — — — Debt service .. ......... (1,672) (1,488) 184 — — — — — — Other — (472) (472) — 423 423 78 3 (75) Net nonoperating revenues (expenses) .... (1,151) (1,381) (230) 15 423 408 78 3 (75) Income (loss) before operating transfers 412 1,896 1,484 (320) (26) 294 (34) (96) (62) Operating transfers in. — — — — — — — 191 191 Operating transfers out — — — — — — — — — Income (loss) budgetary basis $ 412 1,896 $ 1,484 $ (320) (26) $ 294 $ (34) 95 $ 129 Reconciliation to GAAP-basis: Depreciation expense .... (1,323) (285) (35) Income (loss) before extraordinary items—GAAP basis .. .. ........... $ 573 $ (31 1) $ 60 t p • j1 Y}"T JJ r SCHEDULE E-4 Miami Stadium Orange Bowl Stadium Convention Center Marinas Variance Variance Variance Variance Budget Actual Favorable (Unfavorable) Budget Actual Favorable (Unfavorable) Budget Actual Favorable (Unfavorable) Budget Actual Favorable (Unfavorable) { $ 184 I $ 73 $ (1 1 1) $ 2,680 $ 1.309 $(1 ,37 1) $ 5,132 $ 3.728 $(1 .404) $ 2,819 $ 2.533 $ (286) 113 101 12 1,071 1,048 23 903 901 2 1. 146 1,094 52 139 80 59 1,472 916 ^ 556 4,955 3,048 1,907 894 375 519 252 181 71 2,543 1,964 579 5,858 3.949 1.909 2.040 1.469 571 1 I (68) (108) (40) 137 (655) (792) (726) (221) 505 779 1,064 285 1 - - - - 1 1 193 224 31 159 — (159) — — — — (361) (361) (5,988) (4,603) 1.385 (1 ,1 22) (483) 639 68 3 (65) 1,863 2,012 149 1,670 35 (1,635) — (69) (69) 68 3 (65) 1,863 1,652 (211) (4,125) (4,344) (219) (963) (552) 411 — (105) (105) 2.000 997 (1,003) (4,851) (4,565) 286 (184) 512 696 — — — — 273 273 — 4,781 4,781 — 17 17 j — — — (2,000) (2,000) — — — — — — — i! $ — (105) $ (105) $ — (730) $ (730) $(4,851) 216 $ 5,067 $ (184) 529 $ 713 ' (67) (513) (1,768) (150) $ (172) $(1,243) $0,552) $ 379 (Continued) 93- 578 CITY OF MIAMI, FLORIDA ENTERPRISE FUNDS SCHEDULES OF OPERATIONS —BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 1992 (in thousands) Exhibition Center _ Golf Courses Warehouse Property Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Operating revenues Charges for services S 782 $ 544 S (238) $ 1,426 S 1 , 158 $ (268) $ — $ Operating expenses Personal services 226 235 (9) 837 745 92 — — — Contractual services, maintenance, and other operating expenses 517 319 198 625 458 167 — 1 (1) Total operating expenses 743 554 189 1.462 1,203 259 — 1 (1) Operating income (loss) before depreciation expense 39 (10) (49) (36) (45) (9) — (1) (1) Nonoperating revenues (expenses) Interest income — 1 1 — — — — — — Debt service (176) (94) 82 — — — — — — Other 137 189 52 36 57 21 — — — Net nonoperating revenues (expenses) (39) 96 135 36 57 21 — — — Income (loss) before operating transfers — 86 86 — 12 12 — (1) (1) Operating transfers in — — — — — — — — — Operating transfers out — — — — (20) (20) — — — Income (loss) — budgetary basis $ — 86 $ 86 $ — (8) $ (8) $ — (1) $ (1) Reconciliation to GAAP- basis Depreciation expense (154) (39) (13) Income (loss) before s' extraordinary items—GAAP basis $ (68) $ (47) $ (14) Parking Garage Building and Zoning Solid Waste Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 708 $ 325 $ (383) $ 5,497 $ 4,625 $ (872) _$ 1 7, 144 $ 16,329 $ (815) — — — 4,315 4,351 (36) 17.467 1 7,1 79 288 580 396 184 646 552 94 13,830 14,584 (754) 580 396 184 4,961 4,903 58 31,297 31,763 (466) 128 (71) (199) 536 (278) (814) (14,153) (15,434) (1,281) 3 i 113 4 (109) — 111 111 — 32 32 (1,137) (837) 300 — — — — — — 150 (30) (180) — — — 1,064 2,905 1,841 ' (874) (863) 11 — 111 111 1,064 2,937 1,873 (746) (934) (188) 536 (167) (703) (13,089) (12,497) 592 ► 746 946 200 — — — 13,089 12,012 (1,077) — — — (536) (536) — — — — $ — 12 $ 12 $ — (703) $ (703) $ -- (485) $ (485) 1 (159) (13) (241) $ (147) $ (716) $ (726) 1 J 103 SCHEDULE E•4 (continued) 93- 578 CITY OF MIAMI, FLORIDA ENTERPRISE FUNDS SCHEDULES OF OPERATIONS —BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 1992 fin thousands) Manuel Artime Center — Variance f Favorable Budget Actual (Unfavorable) Operating revenues' 1 Charges for services .. . .... $ 194 $ 145 $ (49) Operating expenses Personal services 299 309 (10) Contractual services, maintenance, and other operating expenses 302 239 63 Total operating expenses 601 548 53 Operating income (loss) before depreciation expense . .. ......... (407) (403) 4 Nonoperating revenues (expenses). Interest income — — — Debt service ..... ............ — — — Other .. ...... — 1 1 Net nonoperating revenues (expenses).. .......... — 1 1 Income (loss) before operating transfers . .. .. ...... (407) (402) 5 Operating transfers in .... ....... 407 431 24 Operating transfers out .......... — — — Income (loss) — budgetary bans ... ........ $ — 29 $ 29 Reconciliation to GAAP- basis: Depreciation expense. .......... (2) Income 0oss)— GAAP basis ................ $ 27 104 INTERNAL SERViG_ FUNDS -�uairrairmrr�e�wrs��se��i w��s�r r urc n„a„wr,y v, t,.UVUJ VI services provided by one department or agency to other departments or agencies of the government and to other governmental units, on a cost r " " reimbursement basis. FLEET MANAGEMENT —to account for the costs and funding of providing motor vehicles and heavy equipment to other departments. r" PROPERTY MAINTENANCE —to account for the costs of providing various building repairs, maintenance, and janitorial services. 4 - I •;. PRINT SHOP —to account for the costs of providing printing services. PROCUREMENT MANAGEMENT —to account for the costs of providing centralized purchasing and supplies services. (. COMMUNICATIONS SERVICES —to account for the costs of operating a communications maintenance facility, the costs of telephone services and data transmission lines. { t i i. f' I 105 1 93 V'� � 1T 1 04 f t f f f t � h I l THIS RACE INTENTIONALLY LEFT BLANK` 106 ri SCHEDULE F-1 CITY OF MIAMI, FLORIDA INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1992 with comparative totals for September 30, 1991 (in thousands) Fleet Property Print Procurement Communications Totals Management Maintenance Shop Management Services 1992 1991 ASSETS Current assets Equity in pooled cash and investments $ 199 $ -- $ - $ - $ 2,889 $ 3.088 S 312 Due from other funds - - - - - -- 2.650 Due from other governments 230 249 2 22 - 503 - Inventories 249 250 75 72 206 852 891 Total current assets 678 499 77 94 3,095 4 443 3,853 Restricted cash and investments including accrued interest - - - - - - 1,162 Property, plant and equipment 34,241 273 134 55 5,001 39,704 38,526 Less Accumulated depreciation (24,342) (218) (88) (35) (3,253) (27.936) (25.464) Property, plant and equipment, net 9,899 55 46 20 1,748 11,768 13.062 Bond issuance costs, net 114 - - - - 114 82 Total assets $ 10.691 $ 554 $ 123 $ 1 14 $ 4,8a3 $ 16,325 S 18,159 LIABILITIES AND FUND EQUITY Current liabilities. Vouchers and accounts payable S 545 $ 101 $ 24 $ 5 $ 319 $ 994 S 671 Accrued expenses (principally salaries) 876 378 67 84 144 1,549 1,545 Due to other funds - 297 480 61 - 838 497 Current portion of Refunding Revenue Bonds 815 - - - - 815 5.240 Current portion of loan payable 1,246 - - - - 1,246 717 Accrued interest 20 - - - - 20 28 Total current liabilities 3,502 776 571 150 463 5,462 8,698 Long-term liabilities Refunding Revenue Bonds -net of current portion 3,588 - - - - 3,588 - Loans payable ;net of current portion) 1,330 - - - - 1,330 1,323 Total long-term liabilities 4,918 - - - - 4,918 1,323 Total liabilities 8,420 776 571 150 463 10,380 10,021 Fund equity (deficit) Contributed capital . 7,777 273 178 23 3,550 11,801 11,704 Retained earnings (deficit) Unreserved . ... . ........... (5,506) (495) (626) (59) 830 (5,856) (3,566) Total retained earnings (deficit) (5,506) (495) (626) (59) 830 (5,856) (3,566) Total fund equity (deficit) .. ... 2,271 (222) (448) (36) 4,380 5,945 8,138 Total liabilities and fund equity $ 10.691 $ 554 $ 123 $ 114 $ 4,843 $ 16,325 $ 18,159 107 93- 578 SCHEDULE F-2 CITY OF MIAMI, FLORIDA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY YEAR ENDED SEPTEMBER 30, 1992 with comparative totals for year ended September 30, 1991 (in thousands) Fleet Property Print Procurement Communications Totals Management Maintenance Shop Management Services 1992 1991 Operating revenues: Charges for services $ 9,191 $ 2.960 _$ 841 $ 193 $ 2,396 $ 15,581 $ 15,244 Operating expenses: Personal services 5,110 2.216 492 622 1.133 9.573 10,166 Contractual services . 196 688 155 17 102 1 , 158 1,071 Materials and supplies 2,400 267 74 183 126 3,050 3,428 Utilities 114 16 2 5 1,145 1,282 1,462 Other 1,404 338 82 95 227 2,146 784 Total operating expenses 9,224 3,525 805 922 2.733 17,209 16,91 1 Operating income (loss) before depreciation expense (33) (565) 36 (729) (337) (1,628) (1,667) Depreciation expense 2,680 9 9 2 310 3.010 3,034 Operating income (loss) (2.713) (574) 27 (731) (647) (4,6 88) (4,701) Nonoperating revenues (expenses). Interest income .... 170 16 - 1 74 261 300 Interest and fiscal charges ... ...... (78) - - - (78) (526) Intergovernmental - - - - 1,127 1 ,1 27 - Other .... 98 249 - 26 - 373 9 Total nonoperating revenues (expenses) 190 265 - 27 1,201 1,683 (217) Income (loss) before operating transfers ... I ... (2,523) (309) 27 (704) 554 (2,955) (4,918) Operating transfers in ... ..... .. - - - 665 - 665 4,225 Operating transfers out . ..... ... - - - - (804) Net operating transfers ... - - - 665 - 665 3,421 Net income (loss) (2,523) (309) 27 (39) 554 (2,290) (1,497) Retained earnings (deficit) at beginning of year ... (2,983) (186) (653) (20) 276 (3,566) (2,069) Retained earnings (deficit) at end of year (5,506) (495) (626) (59) 830 (5,856) (3,566) Contributed capital at beginning of year 7,777 273 178 23 3,453 11,704 10,446 Contributions from other funds .. - - - - 97 97 1,258 Contributed capital at end of year ..... 7,777 273 178 23 3,550 11,801 11,704 Total fund equity (deficit) ....... $ 2,271 $ (222) $ (448) $ (36) $ 4,380 $ 57945 $ 8,138 108 93- 578 SCHEDULE F-3 t CITY OF MIAMI, FLORIDA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS YEAR ENDED SEPTEMBER 30, 1992 with comparative totals for year ended September 30, 1991 (in thousands) Fleet^ Property Print Procurement Communications Totals Management Maintenance Shop Management Services 1992 1991 Reconciliation of operating income to net cash provided by operating activities Operating income (loss) $ (2.713) $ (574) $ 27 $ 1731) $ (647) $ (4,6381 $ (4,791) Adjustments to reconcile operating income to net cash provided by operating activities Loss (gam) on property, plant and equipment 26 — — — — 26 61 Depreciation 2.680 9 9 2 310 3,010 3,034 Amortization of bond issue costs and discounts, and bond accretion 83 — — — — 83 83 (Increase) decrease in assets Accounts receivables (2) — Inventory 46 16 3 1 _ (27) 39 (86) Prepaid expenses — — — —(22) —(24) 0 ) Due from other funds 550 — — — 2,100 2,650 (1,150) Due from other governments ...... (230) (249) — — — (479) — Increase (decrease) in liabilities Vouchers and accounts payable..... 280 38 (9) (6) 20 323 (87) Accrued expenses 54 (27) (10) (7) (6) 4 649 Due to other funds . . ......... — 297 (17) 61 — 341 (34) Other accruals (8) — — — — (8) (12) Total adjustments 3,481 84 (26) 29 2,397 5,965 2.457 Net cash provided by operating activities 768 (490) 1 (702) 1,750 1,327 (2,244) Cash flows from non -capital financing activities: Operating in transfers . 665 665 4,225 Operating transfers out — — — — — — (804) Other 143 249 — 26 1,127 1,545 — Net cash provided by non -capital financing activities 143 249 — 691 1,127 2,210 3,421 Cash flows from capital and related financing activities Capital expenditures (1,714) (4) (1) (19) (190) (1,928) (2,285) Contributions — — — — 97 97 — Interest paid on long term debt ....... (78) — — — — (78) (526) Proceeds from sale of equipment .... 26 26 1 Proceeds from loan payable. 536 _ _ _ _ 536 2,G40 Principal payments on debt . (5,240) — — — — (5,240) (2,335) Bond proceeds .... 4,403 — — — — 4,403 — Other payments ....... Net cash used for capital and related financing activities (2,067) (4) (1) (19) (93) (2,184) (3,106) Cash flows from investing activities: Interest income 170 16 1 74 261 300 Net cash provided from investing activities 170 16 = 1 74 261 300 Net increase (decrease) in cash and cash equivalents.. (986) (229) — (291 2,858 1,614 (1,629) Cash and cash equivalents at beginning of year 1,185 229 — 29 31 1,474 3,103 ! Cash and cash equivalents at end of year $ 199 $ — $ — $ — $ 2,889 $ 3,088 $ 1,474 109 u , 93- 578 CITY OF MIAMI, FLORIDA INTERNAL SERVICE FUNDS SCHEDULES OF OPERATIONS ---BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 1992 (in thousands) Fleet Management Property Maintenance Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Operating revenues: ! Charges for services $ 11,825 9,191 $ (2,634) $ 4,078 $ 2,960 $ I1.1 18)' Operating expenses Personal services .......... 5,069 5,110 (41) 2,237 2,216 21 Contractual services and other operating expenses 6,756 5,640 1.116 1.841 1,313 528 Total operating expenses ... ... ... 11.825 10,750 1.075 4,078 3,529 549 Operating income (loss) . .. .... — _ (1,559) 1,559 — 1569) 569 Nonoperating revenues (expenses). Interest income .. ...... — 170 170 — 16 16 Other — 20 20 — 249 249 Total nonoperating revenues (expenses) .. — 190 190 — 265 265 Income (loss) before operating transfers .. — (1,369) (1,369) — (304) (304) Operating transfers in — — — — — — 1 Net income 4loss) —budgetary basis ... ... $ — (1,369) $ (1,369) $ — (304) $ (304) i Reconciliation to GAAP-basis j Capitalized expenditures. ....... ... ..... 1,526 4 Depreciation expense (2,680) (9) i Net income (loss)—GAAP basis .......... I $ (2,523) $ (309) i _A i SCHEDULE F-4 Print Shop Procurement Management Communications Services « Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget — Actual (Unfavorable) Budget Actual (Unfavorable) $ 634 $ 841 $ 207 $ 225 $ 193 $ (32) $ 2.495 $ 2,396 $ (991 t 457 492 (35) 554 622 (68) 1,039 1.133 (94) 422 315 107 336 _ 319 17 2.656 1,790 866 879 807 72 890 941 (51) 3,695 2,923 772 (245) 34 (279) (665) (748) 83 (1,200) (527) (673) — — — -- 1 1 — 74 74 l 245 — (245) — 26 26 1,200 1,127 (73) — — — — 27 27 1,200 1.201 1 — 34 34 (665) (721) (56) — 674 674 665 665 — — — — I $ — 34 $ 34 $ — (56) $ (56) $ — 674 $ 674 ! 2 19 190 (9) (2) (310) I $ 27 $ (39) $ 554 �i SCHEDULE G-1 CITY OF MIAM1, FLORIDA TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET September 30, 1992 with comparative totals for September 30, 1991 (in thousands) Expendable Trust Funds Agency Funds Pension Trust Funds Totals Self Pension Cable Deferred GESE FlPO Insurance Administration T.V. Compensation 'Trust Trust 1992 1991 ASSETS Equity in pooled cash and investments $ 988 $ 16 $1 ,006 $ - $ - $ - $ 2.010 $ 2,517 Other cash and investments - - - 38,002 98 18 38. 1 18 32,773 1 Pension investments, including accrued interest - - - - 236,327 468,644 704,971 654,594 Accounts receivable Proceeds from securities sold - - - - 8 7,843 7.851 13,152 Pension members' contributions .. , ....... - - - - 58 - 58 10 Other 500 - - - 66 - 566 352 Due from other funds - - - - - - - 4,000 Due from other governments .. ...........- ( Prepaid expenses ....... - - - - - - - 3 Total assets $ 1,499 $ 16 $1,006 $38,002 $236,557 $476.505 $753,585 $707,401 LIABILITIES AND FUND BALANCES Liabilities. Vouchers and accounts payable $ 402 $ 1 $ 6 $ - $ 545 $ 59 $ 1,013 $ 1,551 Accrued expenses 42 13 - - - - 55 52 Payable for securities purchased .. ...... - - - - 4,276 6,743 11,019 16,389 1 Deposits 450 2 1,000 - - - 1,452 1,452 Claims payable 3,556 - - - - - 3,556 3,541 f Deferred compensation plan liabilities .... - - - 38,002 - - 38,002 32,636 Total liabilities 4750 16 1,006 38.002 4,821 6,802 55,097 55.621 1 Fund balance i Reserved for employee retirement plan benefits - - - - 231,736 469,703 701,439 651.280 Unreserved ! Designated for hurricane loss . ......... 500 - - - - - 500 500 Designated for claims payment ......... (3,451) - - - - - (3,451) - Total fund balances (deficit) .......... (2,951) - - - 231,736 469,703 698,488 651,780 I Total liabilities and fund balances........ $ 1.499 $ 16 $1,006 $38,002 $236,557 $476,505 $753,585 $707,401 115 93- 578 SCHEDULE G-2 CITY OF MIAMI, FLORIDA EXPENDABLE TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30, 1992 V" with comparative totals for year ended September 30, 1991 (in thousands) Self Pension Totals Insurance Administration 1992 1991 Revenues: _ Intergovernmental ........................................ $ 33 $ 5,311 $ 5,344 $ 5,202 Intragovernmental........................................ 16,496 20,678 37,174 32,417 Contributions from employees and retirees .......... . ........ 4,196 - 4,196 3,825 Interest ................................................. 337 - 337 344 Other .................................................. 1,358 - 1,358 1,939 Total revenues ....................................... 22,420 25,989 48,409 43,727 Expenditures: Personal services ........................................ 1,498 135 1,633 1,902 Contractual services ........................ . ............. 706 66 772 729 Materials and supplies .................................... 21 - 21 16 Contribution to retirement funds ............................ 185 24,707 24,892 24,375 Insurance ............................................... 2,514 - 2,514 1,016 Claim payments ......................................... 22,880 - 22,880 17,184 Other .................................................. 56 1,081 1,137 1,373 Total expenditures .................................... 27,860 25,989 53,849 46,595 Deficiency of revenues over expenditures ................. (5,440) - (5,440) (2,868) Other financing sources: Operating transfers in .................................... 1,989 - 1,989 2.828 Deficiency of revenues and other financing sources over expenditures ................... (3,451) - (3,451) (40) Fund balances at beginning of year ............................. 500 - 500 540 Fund balances (deficit) at end of year ........................... $ (2,951) $ - $ (2,951) $ 500 r SCHEDULE G-3 CITY OF MIAMI, FLORIDA PENSION TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30, 1992 with comparative totals for year ended September 30, 1991 (in thousands) GESE FIPO Totals Trust Trust 1992 1991 Operating revenues: Contributions from employers ............................. $ 9,317 $ 10,030 $ 19,347 $ 18,783 1 Contributions from employees and retirees ............... I . 5,799 7,538 13,337 14,269 Net realized gain on investments .......................... 8,214 25,036 33,250 26,753 Interest and dividends .................................. 11,218 20,473 31,691 35,749 Total operating revenues ............................. 34,548 63,077 _ 97,625 95,554 Operating expenses: Personal services ....................................... 1,007 1,133 2.140 1,868 Benefit payments ...................................... 19,826 22,974 42,800 33,259 Refunds ............................................... 1,801 850 2,651 2,152 Other................................................. - 4 4 - Total operating expenses ............................. 22,634 24,961 47,595 37,279 Operating income ................................... 11,914 38,116 50,030 58,275 Nonoperating revenues: Other................................................. 38 91 129 17 Net income ......................................... 11,952 38,207 50,159 _ 58,292 Fund balances at beginning of year ............................ 219,784 431,496 651,280 592,988 Fund balances at end of year ................................. $231,736 $469,703 $701,439 $651,280 SCHEDULE G-4 CITY OF MIAMI, FLORIDA AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES YEAR ENDED SEPTEMBER 30, 1992 On thousands) Balance Balance October 1, September 30, 1991 Additions Deletions 1992 CABLE T.V. ASSETS Equity in pooled cash ........................................... $ 16 $1,000 $ 10 $ 1,006 Due from other funds .......................................... 1,000 — 1,000 — Total assets ........................................... $ 1,016 $1,000 $1,010 $ 1,006 LIABILITIES Vouchers and account payable ................................... $ 16 $ — $ 10 $ 6 Deposits..................................................... 1,000 — — 1,000 Total liabilities ......................................... $ 1, 116 $ — $ 10 $ 1,006 DEFERRED COMPENSATION ASSETS Other cash and investments ..................................... $32,636 $5,366 $ — $38,002 LIABILITIES Deferred compensation plan liabilities ............................. $32,636 $5,366 $ — $38,002 118 etr_i 99- 578 i GENERAL FIXED SAE % ACCOUNT GROUP s i General Fixed Assets Account Group is used to account for the fixed assets of the City, other than those accounted for in the Enterprise and Internal Service Funds. I l i k f i 119 , 1 I THIS PAGE INTENTIONALLY LEFT BLANK 120 SCHEDULE H-1 j CITY OF MIAMI, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE r SEPTEMBER 30, 1992 (in thousands) } General fixed assets. 5. Land .. $ 85,368 i Buildings. .. ......... 75,697 Improvements other than buildings .......... 219,080 j Machinery and equipment ........... 29,203 Construction in progress 113,889 ! Total general fixed assets . ............. $523,237 Investment in general fixed assets by source: Prior to 10/1/89—undesignated............. $452,367 ; General fund ............ 2,464 Special revenue funds ............ 1,773 Capital project funds ....................... 66,633 Total Investment in general fixed assets ..... $523,237 4 y I 121 93- 578 i SCHEDULE H-2 CITY OF MIAMI, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS i BY FUNCTION AND ACTIVITY SEPTEMBER 30, 1992 (in thousands) -' Improvements Machinery Construction I Other Than and In Function and Activity Land Buildings _ Buildings Equipment Progress Total Prior to 10/1/89—undesignated ..... $81,123 $73,339 $193,151 $24,101 $ 80,653 $452.367 General government: Commission ............... — — — 18 — 18 Manager .. ............ — — — 19 — 1.9 Attorney . ............ — — — 23 — 23 Clerk . .......... — — — 16 — 16 Personnel . .. ................. — — — 34 — 34 Planning .... .................. — — — 33 — 33 Finance and administration ........ 1,059 1,241 29 116 — 2,445 Other . ........................ 427 133 — — — 560 Total general government ....... 1,486 1,374 29 259 — 3,148 Public safety. Police ... ...................... — — — 592 — 592 Fire .... ...................... — — — 211 — 211 Total public safety .............. — — — 803 — 803 Street improvement ................ — — 12,409 79 — 12,488 Public use ..... .................. 2,121 984 _ — — — 3,105 Municipal use ..................... 383 — 7,691 3,473 — 1 1 ,547 Sanitation ....................•.... 4 — 1,423 339 — 1,766 Culture and recreation .............. 251 — 4,377 149 — 4,777 Construction in progress ............ — — — — 33,236 33,236 Total general fixed assets .......... $85,368 $75,697 $219,080 $29,203 $113,889 $523,237 SCHEDULE H-3 CITY OF MIAM1, FLORIDA SCHEDULE OF CHANGES IN GENERAL FLED ASSETS BY FUNCTION AND ACTIVITY YEAR ENDED SEPTEMBER 30, 1992 (in thousands) General General Fixed Fixed Assets Assets October 1, September 30, Function and Activity _ 1991 Additions Deductions 1992 Prior to 10/1/89—undesignated .......................... $453,929 $ — $ 1,562 $452,367 General government: Commission .......................................... 10 17 9 18 Manager .. ...................................... 1 24 6 19 Attorney . .......................................... 10 13 — 23 Clerk... ............................................. 1 15 — 16 Personnel ............................................. 27 7 — 34 Planning .............................................. 14 19 — 33 Finance and administration .............................. 2,453 35 43 2,445 Other ........ ....................................... 182 566 188 560 Total general government 2,698 696 246 3,148 Public safety: Police ............................................... 372 227 7 592 j IFire .................................................. 62 149 — 211 I Total public safer ............. 434 376 _ 7 803 Street improvement ...................................... 11,930 558 — 12,488 Public use .............................................. 2,328 777 — 3,105 Municipal use ................. '.......................... 4,567 6,980 — 11,547 Sanitation .............................................. 1,483 283 — 1,766 Culture and recreation ........ I ........................... 2,966 1,814 3 4,777 I Construction in progress .................................. 9,873 31,980 8,617 33,236 Total general fixed assets ................................. $490,208 $43,464 $10,435 $523,237 { j I Y ' j 123 93- 578 CITY OF MIAMI, FLORIDA REVENUE AND SPECIAL OBLIGATION BONDS, NOTES AND LOANS PRINCIPAL AND INTEREST REQUIREMENTS AS OF SEPTEMBER 30, 1992 Fiscal Parking Special Special MSEA Special Year System Subordinated Revenue Obligation Rental Obligation Ending Revenue Parking System Parking System Refunding Refunding Revenue First Refunding September Bonds Revenue Bonds Revenue Bonds Bonds Bonds Bonds Municipal Bonds 30th Series 1986 Series 1986 Series 1992 Series 1987 Series 1990 Series 1988 Loan Series 1992A 1993 $ 415.000 $ 345,000 $ 2,980,000 $ 545,000 $ 100,000 $ 650,000 1994 440,000 215,000 3,160,000 585.000 300,000 670,000 1995 465,000 225,000 3,355,000 625,000 500,000 695,000 1996 500,000 235,000 3.570,000 670.000 15,100,000 730,000 1997 535,000 250,000 3,805.000 720,000 760,000 1998 575,000 260,000 4,065,000 775,000 800,000 1999 620,000 275,000 4,345,000 835.000 840,000 2000 665,000 290,000 4,660,000 895.000 $ 610,000 880,000 2001 715,000 310,000 4,755,000 459,821 660,000 930.000 2002 775,000 330,000 5,110,000 428,479 720,000 985,000 2003 835,000 350,000 5,490,000 403.358 780,000 1.040,000 2004 895,000 370,000 1,81 1,064 975,000 850.000 1,1 10,000 2005 970,000 395,000 1,653,829 1,050,000 925.000 1.180.000 2006 1,040,000 425,000 1.520,371 1,135,000 1,005,000 1,260.000 2007 1,115,000 $2,000,000 450,000 1,396,353 1,225,000 1,090,000 1,335,000 2008 1,200,000 1,280,099 680,000 1,185,000 1,420,000 2009 1,290,000 1,150,359 1,285,000 1,510,000 2010 1,390,000 1,063, 229 1.395,000 1,600,000 2011 983,410 1,520,000 1,700,000 2012 865,815 1,650,000 1,805,000 2013 801,229 1.795.000 1,915.000 2014 731,160 1,950,000 2,035,000 2015 629,407 2,1 15,000 2,155,000 2016 2,300,000 2,290,000 2017 2,500,000 2,430,000 2018 2,715,000 2,580,000 2019 2,950,000 2,735.000 2020 2.910,000 Total $14,440,000 $2,000,000 $4,725,000 $59,181,325 $12,006,658 $30,000.000 $16,000,000 $40,950,000 (1) Accretion on the Capital Appreciation Bonds portion of the Series 1987 Special Revenue Refunding Bonds and the Series 1990 Special Obligation Bonds are included as interest. 128 93- J SCHEDULE 1-1 MSEA Sunshine Special Special State Guaranteed Obligation Obligation Governmental Entitlement Community Refunding Refunding Bonds Financing Revenue Redevelopment Revenue Total Bonds Series Commission Bonds Bonds Bonds Total Total Principal } Series 1992B 1986A Loans Series 1989 Series 1990 Series 1992 Principal Interest(l) and Interest j $ 500,000 $ 160,000 $ 668,400 $ 2.00.000 $ 180,000 $ 815.000 $ 7,558,400 $ 14,447,878 $ 22,006,278 510,000 • 170,000 710,400 210,000 190.000 845,000 8,005,400 13,963,538 21.968.938 535,000 180,000 753,400 225,000 205,000 875,000 8,638,400 13,577,562 22,215,962 1 555,000 190,000 799,400 240.000 225.000 920,000 23,734.400 11,947.670 35,682,070 585,000 200,000 849.400 255.000 240,000 960.000 9,159.400 11,233,380 20,392,780 610,000 215.000 901.400 275,000 260,000 8,736,400 10,701.337 19,437.737 1 640,000 230,000 956,400 290,000 280,000 9,31 1 ,400 10,1 78,230 19,489,630 675,000 250,000 1,015.400 310,000 305.000 10,555,400 9,610.580 20,165.980 715,000 270,000 1,077,400 330.000 330,000 10,552,221 9,474,049 20,026,270 755,000 290,000 1,143,400 355,000 355.000 11,246,879 8,873,521 20.120.400 795,000 310.000 1,211,400 380,000 390,000 11,984,758 8,218,679 20,203,437 850,000 330,000 1,288.400 405,000 420,000 9,304,464 10,943,586 20.248.050 1 355,000 1,366.400 435,000 455,000 8,785,229 10.651,141 19,436,370 380,000 1,450,400 465,000 495,000 9,175,771 10,362,875 19,538,646 1,537,400 500,000 535,000 11,183,753 9,958,778 2.1,142,531 1,632,400 530,000 565,000 8,512,499 9,561,764 18.074,263 1,730,000 570,000 635,000 8,170.359 9,250,219 17,420,578 1,836,400 685,000 7,969,629 8,886,933 16.856,562 1,948,400 745,000 6,896,810 8,586,486 15,483.296 2,066,700 810,000 7,197,515 8,066,745 15,264,260 875,000 5,386,229 7.645.468 13,031,697 950.000 5,666,160 7,295,123 12.961,283 1,030,000 5,929,407 6,639,963 12.569,370 4,590,000 1,701,340 6,291,340 4,930,000 1,361,555 6.291,555 5,295,000 995,860 6,290,860 5.685,000 602,342 6,287,342 2,910.000 178.965 3,088,965 $7,725,000 $3,530,000 $24.942,900 $5,975,000 $11,180,000 $4,415,000 $237,070.883 $234,915,567 $471.986,450 SCHEDULE 1-2 CITY OF MIAMI, FLORIDA GENERAL OBLIGATION BONDED INDEBTEDNESS PRINCIPAL AND INTEREST REQUIREMENTS i AS OF SEPTEMBER 30, 1992 Fiscal Year Ending September 30 Principal Interest Total 1993 ........... .. 9,945,000 10,819,184 20,764,1840) ` 1994. ........ ... 11,980,000 11,584,558 23,564,558 1995 .... ......... 12,345,000 10,787,537 23,132,537 1996 .............. 12,245,000 10,010,142 22,255,142 1997 .............. 12,355,000 9,240,512 21 ,595,512 1998 .............. 11,585,000 8,482,890 20,067,890 ( 1999.............. 10,810,000 7,743,633 18,553,633 I 2000 .............. 10,160,000 6,962,619 i 7,122,619 2001 .............. 10,740,000 6,194,993 16,934,993 ;j 2002.............. 10,850,000 5,594,765 16,444,765 2003.............. 11,385,000 4,834,641 16,219,641 2004.............. 9,660,000 4,037,171 13,697,171 i 2005.............. 9,270,000 3,342,984 12,612,984 2006.............. 7,590,000 2,663,616 10,253,616 2007 .............. 6,260,000 2,125,383 8,385,383 2008 .............. 5,355,000 1,704,642 7,059,642 2009 .............. 5,470,000 1,367,415 6,837,415 2010.............. 4,395,000 1,065,359 5,460,359 2011 .............. 3,805,000 785,914 4,590,914 2012.............. 2,295,000 557,419 2,852,419 2013.............. 2,385,000 413,696 2,798,696 2014.............. 2,415,000 263,986 2,678,986 2015.............. 670,000 128,865 798,865 2016.............. 710,000 88,330 798,330 2017.............. 750,000 45,375 795,375 Total....... $185,430,000 $110,845,629 $296,275,629 i (1) Excludes October 1, 1992 installment In the amount of $3,319,460 recorded in the general obligation debt service fund. I i j i 130 93- 578 uti .,1 Deloifte & Touche /0 To the Honorable Mayor and City Commissioners of the City of Miami, Florida: Certified Public Accountants Suite 2500 100 Southeast Second Street Miami, Florida 33131-2135 Telephone: (305) 358-4141 Facsimile: (305) 358-1451 We have audited the general purpose financial statements of City of Miami, Florida (the "City"), for the year ended September 30, 1992, and have issued our report thereon dated March 30, 1993. We conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. REPORT ON INTERNAL ACCOUNTINQ CONTROL In planning and performing our audit of the general purpose financial statements of the City for the year ended September 30, 1992, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. For the purpose of this report, our consideration of the internal control structure of the City did not include the internal control structures of the Miami Sports and Exhibition Authority ("MSEA") and the General Employees' and Sanitation Employees' Retirement Trust ("GESE"). We have issued separate reports regarding our considerations of the MSEA and GESE internal control structures in communications dated January 24, 1993 and March 30, 1993, respectively. The management of the City is responsible for establishing and maintaining the internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits_ and related costs of internal control structure policies and procedures. The objectives of an internal control structure 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 general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. Is Deloittebuche ; Tohmatsu International 93- 57/8 For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: cles of the Ci s Actium • Cash and investment management • Revenue/cash receipts cycle • Purchases/cash disbursement (including payroll) • External financial reporting Controls Used in Administering Compliance with Laws and Regulations • General requirements • Specific requirements For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. We noted a certain matter, which is presented in Section I - Reportable Condition, involving the internal control structure and its operations that`w;e consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. A reportable condition involves matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the City's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe the reportable condition described in Section I is not a material weakness. We also noted other matters involving the internal control structure and its operation which resulted from our audit of the City's 1992 general purpose financial statements. These recommendations are not based on a special study and do not purport to be other than our observations regarding internal accounting control, administrative and operating matters incidental to our audit. Our comments, observations and recommendations are presented under Section II - Other Operating, Administrative and Accounting Matters. Comments made in reports from prior years are indicated by an asterisk (*). We also noted matters involving the internal control structure and its operation used to administer federal financial assistance programs which we reported to management of the City in a report dated March 30, 1993. -2- 93- 578 REPORT ON COMPLIANCE Compliance with laws and regulations, contracts and grants applicable to the City is the responsibility of the City's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts and grants. However, our objective was not to provide an opinion on overall compliance with such provisions. The results of our tests indicate that, with respect to the items tested, the City complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to the items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those provisions. STATE REPORTING REQUIREMENTS The Rules of Auditor General, State of Florida, require that this report be filed with the Auditor General together with the audited general purpose financial statements. In connection with our audit of the financial statements of the City, pursuant to Chapter 10.550, the Rules of the Auditor General, State of Florida - Local Governmental Entity Audits, we report the following: 1. Recommendations made in the preceding management letter have been adopted, except as noted in Section I1 of this report which are denoted by an asterisk (*); 2. Nothing came to our attention to cause us to believe that the City is, or during the fiscal year ended September 30, 1992 was, in a state of financial emergency (as defined) due to the occurrence of any of the conditions described in Section 218.503(i), Florida Statutes; and 3. The financial report of the City filed with the Department of Banking and Finance, State of Florida, pursuant to Section 218.32, Florida Statutes, is in agreement with the general purpose financial statements for the year ended September 30, 1992. This report is intended for the information of the Honorable Mayor and City Commissioners, the Audit Advisory Committee, management, the cognizant federal audit agency and other federal and state agencies, and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited. We are grateful for the cooperation and assistance extended by the City's management and employees, particularly that of its Finance Department. We will be pleased to discuss these comments with you and, if desired, to assist you in implementing any of the suggestions. March 30, 1993 Q SECTION I - REPORTABLE CONDITION Controls Over Pooled Cash .Observation The City must improve its system of controls over its pooled cash accounts to ensure that material errors do not occur and not be detected within a timely period. Background During the course of performing our audit procedures, the following conditions were observed with respect to the City's pooled cash accounts: • Reconciliations of bank balances to general ledger control accounts were incorrect. Also, such reconciliations are not prepared on a timely basis. For example, the September 1992 reconciliations were not prepared until January 1993. Additionally, timely reviews of these reconciliations by Finance Department management is not occurring. • The balance of one cash account (bank account No. 62-M799-02-9), which was approximately $165,000 at September 30, 1992, was not recorded on the City's general ledger. • List of outstanding checks was not reviewed. As a result, errors, such as the double voiding of approximately $1,775,000 in checks, were not discovered until the audit process began. Incidental to this condition is the fact that the outstanding check listing contains a significant number of checks which have been outstanding for more than one year and remain uninvestigated. The combined effect of these matters is, in our opinion, a reportable condition. Recommendations Management should: • Conduct training on the proper reconciliation procedures of bank accounts, vis-a-vis balancing cash. ' • Review reconciliations prepared by its staff monthly to ensure the reconciliations are performed timely and correctly. • Review its outstanding check listing semiannually to ensure any possible errors as well as outstanding items greater than six months old, are investigated for propriety. SECTION 11 - OTHER OPERATING, ADMINISTRATIVE AND ACCOUNTING MATTERS Financial Reporting Observation The City's financial reporting system and year-end closing procedures need to be restructured. Back rQ, ound The preparation of the general purpose financial statements of the City is the responsibility of management. This process is still too dependent on the leadership of the external audit team. The following matters were noted during audit of the general purpose financial statements: • An excessive number of post -closing and audit adjustments were recorded at year end because no financial analysis was performed of the various fund types prior to the close of the City's general ledger in November of each year. In addition, communications and coordination among staff was lacking. • Timing and preparation of the City's comprehensive annual financial report (CAFR) must improve. Historically, the City's CAFR is prepared within two weeks of the due date of filing with the Government Finance Officers Association (GFOA). Due to the City's inability to close its books and perform the required analyses on a timely basis, the time available to perform a review of the City's CAFR by the Finance Department is not adequate. Recommendation Finance Department management should prepare and adhere to a strict schedule for the preparation of the CAFR, and the general purpose financial statements. This schedule should include, at a minimum, the review and analysis of the financial statements of the City's fund types prior to the start of the audit in order to alleviate the excessive post -closing client and audit adjustments. This schedule should be designed such that an adequate length of time is given for the review of the City's CAFR. In addition, supervision and review needs to be strengthened to ensure this process is redesigned and implemented efficiently and effectively. The Accounting System (*) Observation The City's general ledger package is outdated given the City's growth and the new complexities in financial reporting. Background The City's financial and accounting operations are maintained on FAMIS, a budget -driven general ledger software system developed and implemented in the 1970's. In addition to the general ledger system, the City's accounts payable function is also maintained using the FAMIS software. Explosive advances in the computer industry have resulted in substantial improvements in system reporting capabilities, data use flexibility and general software capabilities. Significant advances have been made not only in accounting systems but also in financial reporting as well. With the creation in 1984 of the Governmental Accounting Standards Board ("GASB"), the body recognized as the primary source of governmental accounting standards, greater accounting and financial reporting requirements i have evolved. While FAMIS is a functional system, the City's needs have far outgrown the system's capabilities. The ability of the system to meet these substantial requirements should be of major concern and a top priority to City management. Recommendation The City should replace the FAMIS general ledger system and implement a state-of-the-art fund accounting software system, including a fixed asset module which will interface with the general ledger system. In the selection of such a system, the City should determine its informational needs and reporting requirements (both internal and external) and make sure the new system is responsive, efficient, effective and user friendly. Capital Outlay Observation The City does not reconcile its capital project expenditures to the additions recorded in its general fixed assets account group. �y Recommendation In order to ensure that all capitalizable expenditures are properly recorded in the general fixed assets account group, capital outlay expenditures should be reconciled to the general fixed asset additions. Self -Insurance Observation The City's liability for self-insurance claims continues to escalate, increasing from $54.6 million in 1991 j to $68.6 million in 1992. The increase in the liability is due primarily to the increase in workers' !i compensation reserves of $9.5 million. Recommendation In order to properly analyze the City's negative trend of its liability for self-insurance claims, management should have a claims audit performed of the City's self-insurance programs. A claims audit will enable management to identify claims which have a negative impact on the City's financial results. A claims audit will also provide the City with the necessary assurance that its internal personnel are properly adjusting, reserving and settling cases and will also identify the weaknesses and strengths in the current claims handling practices. -6- 93- 578 Grant Monitoring (*) Observation The City's system for monitoring the grants it has received, the preparation and filing of periodic grant reports, and the grant reimbursement requests filed with the granting agencies is decentralized. Such activities are performed by the respective departments responsible for administering the grants. This condition makes it difficult and inefficient to identify all grants received by the City. As a result, noncompliance with laws and regulations governing federal and state financial assistance may occur and not be detected. Recommendation The City should dedicate resources and establish a system within the Finance Department which will centralize the accounting for grants as it is the department responsible for the annual financial statements and reports filed with the City's cognizant federal audit agency. These actions will minimize the possibility of the occurrence of the City's noncompliance with laws and regulations governing federal and state financial assistance. Data Securitv Policies and Procedur Observation The City has not developed comprehensive formal data security policies and related procedures. Consequently, inconsistent or inadequate security procedures may be employed, possibly resulting in the loss or corruption of systems information. Background The Division of Computers has developed specific data security policies and procedures which apply to data security at the system level. Vendor -supplied documentation for the Moore Data Systems applications provides information on application -level security procedures. However, specific policies for application -level security have not been developed. -7- /17 9 3 - �*'; 8 Recommendation Management should develop and implement comprehensive formal data security policies and procedures for the City. 'The following areas should be addressed, at a minimum: • A policy statement on the importance of computer security. • Formal management approval of individual access levels prior to password authorization. • The responsibilities of system users and the City's exposure and penalties for misuse of access authorities. • Security system requirements including recommended security levels, minimum password length, and mandatory password change frequency. • Procedures to be followed by data security officer and others involved in data security administration. • Periodic documented reviews of actual user access capabilities to current employee listings and authorized user access documentation. • Procedures covering the review, investigation and resolution of attempted and actual security violations. • Procedures covering the prompt reporting of employee resignations, termination or transfers to the security officer. • Procedures covering the prompt reporting of employee resignations, terminations or transfers to the security officer. The implementation of comprehensive formal data security policies and procedures will enhance the effectiveness of security controls and procedures employed by the City, resulting in improved security administration, documentation and review. Key Individual Reliance Observation The Division of Computers does not have a backup programmer for FAMIS applications. As a result, considerable reliance is placed upon the continued employment and availability of the only FAMIS programmer. Background The senior programmer responsible for maintaining FAMIS application has been employed by the City for many years and is very familiar with FAMIS. Although FAMIS is vendor -supplied and the documentation is generally adequate, significant in-house modifications have been made to the system by the senior programmer. Once the senior programmer's "knowledge base" is removed from the Division of Computers, the City many experience delays in obtaining enhancements to FAMIS. -8- 9 - 578 Recommendation Management should consider either cross -training an existing programmer for FAMIS support or hiring an additional programmer to fill the position. Rate Classification Observation An inconsistency exists in the accounting classification of solid waste fees per the FAMIS Report No. 9, Detailed Revenue and Expenditures by Proiect and the description of solid waste rates per the accounts receivable system's Rate Table Listing. Consequently, solid waste revenue may not be properly classified for internal management reporting purposes. Back rg ound Per FAMIS Report No. 9, solid waste fees for residential accounts are tied to cost center 026052/subobject 00330, and solid waste fees for commercial accounts are tied to cost center 026052/subobject 00331. Per the Rate Table Listing for solid waste rate codes, several records described as residential are tied to cost center 026052/subobject 00331, and several records described as commercial are tied to cost center 026052/subobject 00330. Recommendation Management should evaluate the accounting classifications and descriptions of solid waste residential and commercial accounts to determine if adjustments are warranted. X:;) � -9 J3-'�� ..A CITY OF MIAMI, FLORIDA GENERAL FUND ".PENDITURES AND OTHER FINANCING USES BY FUNCTION LAST TEN FISCAL YEARS (in thousands) OTHER CULTURE EXPENDITURES FISCAL POLICE SOLID PUBLIC GENERAL AND OR FINANCING YEAR AND FIRE WASTE IMPROVEMENTS GOVERNMENT RECREATION USES TOTAL 1992 $135,130 $12,012 $13,822 $1 7,614 $10,046 $16,239 $204,863 1991 128,949 11,847 13,761 18,536 10,664 16,815 200,572 1990 125,342 10,000 9,683 19,069 10,864 23,396 198,354 1989 118,808 14,054 1 1 ,523 19,513 10,773 18,347 193,018(1 ) 1988 1 1 1,869 15,609 12,521 20,205 10,321 15,812 186,337 1987 111,884 16,031(2) 13,795(3) 19,338 9,867 16,785 187,7%) 1986 103,893 24,902 20,339(4) 16,328 8,439 15,522 189,423 1985 99,681 22,802 14,973 17,699 8,651 17,999 181,805 1984 93,841 22,576 13,401 16,135 8,378 12,549 166,880 1983 87,371 21,733 11,624 14,595 7,691 8,726 151,740 1982 74,813 19,394 13,608 14,114 7,116 8,998 138,043 (1) A capital lease for the purchase of computer equipment, net present value $5,769,000, has been excluded from this schedule in order to provide a comparison consistent with prior years. (2) Beginning in FY 1987, solid waste activities have been accounted for in a separate Solid Waste enterprise fund Effective in 1987, amounts reflect the general fund's operating subsidy for that enterprise fund (3) Beginning in FY 1987. budding and zoning activities have been accounted for in a separate Budding and Zoning enterprise fund Effective in 1987. amounts under Public Improvements do not reflect the general fund operating subsidy which is reflected under Other Expenditures. (4) The Departments of Development and Community Development, which had expenditures totaling S2 108 million in FY 85 formerly classified under general government are, beginning in FY 86, classified under Public Improvements 133 93-- 578 CITY OF MIAMI, FLORIDA GENERAL FUND REVENUES AND OTHER FINANCINV SOURCES LAST TEN FISCAL YEARS (in thousands) CITY BUSINESS INTER- LICENSES CHARGES OTHER REVENUE FISCAL PROPERTY & EXCISE GOVERN- AND FOR AND FINANCING YEAR TAXES TAX(1) MENTAL PERMITS SERVICES SOURCES(1) TOTAL 1992 $99,635 $42,013 $31 ,910 $4.697 $ 4, 1 16 $21,318 $203,689 1991 99,966 41,205 25,361 4,773 4,830 24,414 200,549 1990 98,366 39,414 25,037(2) 6,003 3,856 25,716(2) 198,392 1989 94,001 39,624 29,738 6,330 3,297 18,353 191,343(3) 1988 89,396 42,743 30,225 5,399 1,648 11,283 181,694 1987 90,886 40,822 27,865(4) 6,082 1,974(5) 16,633 184,262 1986 88,138 36,51 1 33,094 6,016 18,410 6,934 189,103. 1985 84,209 33,636 38,191 6,041 17,634 7,169 186,880 1984 78,968 27,186 35,514 5,853 14,834 5,610 167,965 1983 67,619 27,351 35,948 5,288 13,977 3,783 153,966 (1) Transfers from 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 (2) A change in accounting of the $5.7 million Guaranteed Entitlement revenues pledged for debt repayment decreased the Intergovernmental category and increased the Other Revenue and Financ:ng Sources (3) A capital lease for the purchase of computer equipment, net present value $5, 769,000, has been excluded from this schedule in order to provide a comparison consistent with prior years (4) Reflects loss of federal revenue sharing funds, which amounted to $7 1 million in 1986 (5) Beginning in FY 1987 Charges for Services do not include revenues pertaining to solid waste collection fees and Budding and Zoning permits and fees, as these revenues are being recorded within their respective enterprise fund CITY OF MIAMI, FLORIDA PERCENT OF TOTAL GENERAL FUND REVENUES AND OTHER FINANCING SOURCES Property Tax 48.92 49.85 49.58 20.63 20.55 Business & Excise Taxes 19.87 15.67 12.65 Intergovernmental 12.62 2.30 2.38 License & Permits 3.03 2.02 2.40 Charges for Service 1.94 Im10.46 12.17 All Other Sources 12.96 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% ® 91-92 Actual 90-91 Actual 89-90 Actual 134 93- 5- 78 CITY OF MIAMI, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (in thousands) x l TOTAL COLLECTION PERCENT OF COLLECTION FISCAL TAX OF CURRENT LEVY OF DELINQUENT f YEAR LEVY(1) YEAR'S TAXES COLLECTED TAXES 1992 $130,702 $118,369 90.56% $ 5,780 a; 1991 128,832 119,036 92.40 7,419 1990 125,743 119,363 94.93 4,592 1989 122,260 114.535 93.68 3,710 1988 115,935 107,908 93.08 2,356 1987 116,612 1 1 1,740 95.82 1,606 1986 109,938 105,457 95.92 944 1985 104,135 100,976 96.97 722(3) 1984 93,340 88,982 95.33 3,036 w° 1983 83,025 78,815 94.93 1,209 TOTAL OUTSTANDING COLLECTIONS OUTSTANDING DELINQUENT FISCAL TOTAL TAX AS % OF DELINQUENT TAXES AS % OF CITY YEAR COLLECTIONS CURRENT LEVY TAXES(2) CURRENT LEVY MILLAGE(1) 1992 $124,149 94.98% $5,077 3.88% 11.9303 1991 126,455 98.16 5,059 3.93 11.9376 1990 123,955 98.58 5,162 4.11 11.9376 1989 118,245 96.72 5,746 4.70 11,9376 1988 110,264 95.11 4,621 3.99 11.8219 1987 113,346 97.20 2.894 2.48 12.2910 1986 106,401 96.83 3,318 3.01 11.9091 1985 101,698 97.66 3,970 3.81 11.9091 1984 92,018 98.58 3,367 3.61 11.1238 j i 1983 80,024 96.38 2,925 3.52 10.7290 (1) Includes levies for general operations and debt service. { (2) Net of reserve of approximately 5% of total tax levy. li (3) Starting in fiscal year 1985, current year's delinquent tax collections are included with collection of current year's taxes. Prior years' collection of delinquent taxes included both current year and prior years' delinquent tax collections. i f i f 135 93- 578 CITY OF MIAMI, FLORIDA ASSESSED VALUE OF ALL TAXABLE PROPERTY LAST TEN FISCAL YEARS (in thousands) FISCAL REAL PERSONAL HOMESTEAD YEAR PROPERTY PROPERTY TOTAL EXEMPTIONS 1992 $10,660,223 $1,263,567 $11,923,790 $968,250 ! 1991 10,534,602 1,243,083 11,777,685 985,533 1990 10,243,901 1 ,271 ,210 1 1,515,1 1 1 981,728 1989 9,997,510 1,213,466 11,210,985 969,335 i 1988 9,519,481 1,242,316 10,761,797 954,978 1987 9,210,476 1,210,435 10,420,911 933,300 1986 8,979,226 1,205.707 10,184,933 953,516 1985 8,538,398 1,158,212 9,696,610 952,430 1984 8,230,309 1 ,1 15,724 9,346,033 954,979 1983 7,616,829 1,042,452 8,659,281 920,895 SOURCE: Metropolitan Dade County Property Appraiser's Office CITY OF MIAMI, FLORIDA PROPERTY TAX RATES AND TAX LEVIES DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS TAX RATES(1) YEAR CITY COUNTY SCHOOLS STATE TOTAL 1992 11.9303 9.545 9.528 .599 31.6023 1991 11.9376 9.679 9.001 .602 31,2196 1990 11.9376 9.348 8.549 .584 30.4186 1989 11,9376 9.547 7.693 .609 29.7866 1988 11.8219 9.608 7.650 .564 29.6439 1987 12.2910 9.032 7.551 .497 29.3710 1986 11.9091 9.224 7.316 .439 28.8881 1985 11.9091 8.762 7.361 .427 28,4591 1984 11.1238 8.754 7.361 .427 27.6658 1983 10.7290 7.244 6.500 .384 24.8570 TAX LEVIES (in thousands) 1992 $130,703 $104,571 $104,384 $6,562 $346,220 1991 128,832 104,457 97,140 6,497 336,926 1990 125,743 98,466 90,049 6,151 320,409 1989 122,260 97,777 78,789 6,237 305,063 1988 115,935 94,224 75,022 5,531 290,712 1987 116,612 85,692 71,641 4,715 278,660 1986 109,938 85,151 67,537 4,053 266,679 1985 104,135 76,616 64,366 3,734 248,851 1984 93,340 73,455 61,767 3,583 232,145 1983 83,025 56,057 50,300 2,971 192,353 (1) Property tax rates are based on each $1,000 of net assessed value. Additional Information - Tax rates limits: Discount allowed: County 10.00 mills November -4% Schools 10.00 mills December -3% State 1.00 mill January -2% Tax assessed -January 1 February -1% Taxes levied -November 1 Taxes delinquent -April 136 NET ASSESSED VALUE $10,955,540 10,792,152 10,533,383 10, 241,650 9,806,819 9,487,611 9,231 ,41 7 8,744,180 8,391,054 7,738,386 93- 578 s� CITY OF MIAMI, FLORIDA SPECIAL ASSESSMENTS COLLECTIONS AND RECEIVABLES �y LAST TEN FISCAL YEARS j` CURRENT ASSESSMENTS FISCAL LIENS RECEIVABLE YEAR COLLECTIONS AT YEAR-END 1992 $2,295,039 $394,063 1991 3,547 ,849 306,513 1990 2,093,196 273,590 1989 1,904,662 170,046 1988 2,402,451 193,952 1987 2,468,224 277,432 1986 3,735,080 405,894 1985 2,688,028 414,730 1984 2,743,429 302,760 j} 1983 1,900.365 303,469 NOTE: The City of Miami's Special Assessments consist of assessment liens for various capital projects such as sanitary and storm sewer improvements. The collections shown above are on a modified accrual basis and include interest, prior year delinquencies and full payoffs. The assessment Dens receivables at year-end, represents amounts susceptible to accrual provided that they pertain to liens assessed prior to year-end, are shown net of deferred revenue. Billings for new assessments in fiscal year 1992 approximated $1 ,141,819 Effective in 1991, assessment liens were accounted in the municipal use capital projects funds, previously they were recorded in the general obligation debt service fund. I CITY OF MIAMI, FLORIDA RATIO OF NET GENERAL BONDED DEBT TO NET ASSESSED VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS NET NET ASSESSED HOMESTEAD TAXABLE BONDED FISCAL POPULATION VALUE EXEMPTION VALUATION DEBT PER YEAR (1) (000) (000) (000) (000) RATIO CAPITA 1992 380,700(2) $11,923,790 $968,250 $10,955,540 $184,740 1.69% $485.26 1991 383,000(2) 11,777,685 985,533 10,792,152. 186,441 i.73 486.79 1990 383,000(2) 1 1 ,515,1 1 1 981,728 10,533,383 184,302 1.75 481.20 1989 371,444 11,210,985 969,335 10,241,650 195,860 1 91 527,29 1988 369,007 10,761 ,797 954,978 9,806,819 186,041 1.90 504.17 1987 368,210 10,420,911 933,300 9,487,611 195,578 2.06 514.70 1986 371,975 10,184,933 953,516 9,231,417 190,697 2.07 512.66 1985 380,446 9,696,610 952,430 8,744,180 170,087 1.95 447.07 1984 383,027 9,346,033 954,979 8,391,054 146,102 1.74 381.44 1983 382,726(3) 8,659,281 920,895 7,738,386 124,955 1.61 326.49 (1) Estimate provided by the State of Florida, Division of Population Studies, Bureau of Business and Economic Research, University of Florida, except where noted. (2) Based on City of Miami estimate. The 1990 U.S Bureau of the Census preliminary population count of 358,548 is being challenged by the City and expected to be adjusted. (3) Based on July 1, 1982 population estimate used by the Office of Revenue Sharing of the Federal Government. i 137 93- 578 CITY OF MIAMI, FLORIDA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES AND OTHER FINANCING USES LAST TEN FISCAL YEARS (in thousands) TOTAL GENERAL FUND EXPENDITURES GENERAL BONDED & OTHER FISCAL BOND BOND DEBT SERVICE FINANCING YEAR PRINCIPAL INTEREST EXPENDITURES USES RATIO 1992 $11,375 $12,620 $23,995 $204,863 11 71% 1991 10,995 12,363 23,358 200,316 1 1 .66 1990 1 1,71 1 13,778 25,489 198,354 12.85 1989 11,280 13,659 24,939 193,018 12.92 1988 12,000 14,176 26,176 186,337 14.05 1987 11,400 13,609 25,009 187,700 13.32 1986 10,800 13,281 24,081 189,424 12.71 1985 10,010 12,540 22,550 181,805 12.40 1984 9,570 7,924 17,494 166,880 10.48 1983 9,990 6,570 16,560 151,740 10.91 CITY OF MIAMI, FLORIDA SCHEDULE OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT SEPTEMBER 30, 1992 (in thousands) AMOUNT PERCENTAGE AVAILABLE APPLICABLE CITY'S SHARE GROSS DEBT AND RESERVES NET DEBT TO CITY OF DEBT City of Miami ................ $ 185,430 $ 690 $ 184,740 100% $184,740 Metro -Dade County ........... 489,171 37,993 451,178 19%(1) 85,723 School Board (2) ............. 394,020 20,326 373,694 19%(1) 71,001 $1,068,621 .$59,009 $1,009,612 $341,464 (1) Based upon the percentage of the County tax roll valuation comprised of real and personal property situated in the City of Miami. (2) The amounts provided by the School Board are as of June 30, 1992. CITY OF MIAMI, FLORIDA SCHEDULE OF LEGAL DEBT MARGIN SEPTEMBER 30, 1992 (in thousands) Assessed value............................................................. $11,923,790 Less homestead exempt valuation ......................................... 968,250 Net taxable assessed valuation ................................................ $10,955,540 Debt limitation for bonds (15% of$10,955,540)(1).................................................. $ 1,643,331 Present debt application to debt limitation: General obligation debt .................................................. $ 185,430 Less amount available in debt service fund .................................. 690 184,740 Legal debt margin ................................................... $ 1,458,591 (1) Section 58 of the City Charter limits the general obligation bonded debt of the City to 15% of the assessed valuation of all real and personal property within the City limits as determined by the preceding assessment roll of the City. 138 93- S 78 CITY OF MIAMI, FLORIDA CURRENT DEBT RATIOS SEPTEMBER 30, 1992 FACTORS: Assessed value(1)..................................................................... $11,923,790,000 Net taxable valuation ........................... ................... . ................... $10,955,540.000 City of Miami debt, net of reserve funds: General obligation .................................................. $184,740,000 Special obligation (2).................................. I ......... 230,570,000 Combined direct debt .. ...................... . .............................. $ 415,310,000 Overlapping debt, net of reserve funds: (3) General obligation ... ... I ... I I ....................... . ...... I ....... $156,724,000 Special obligation . .... ............................................ 78,846,000 Combined net overlapping debt ...................................................... 235,570,000 Total net direct and net overlapping debt ...................................... I ....... $ 650,880,000 Population of Miami (4)................................................................. 380,700 Net assessed valuation per capita........................................................ $ 31,321 Net taxable valuation per capita.......................................................... $ 28,777 DEBT RATIOS: Net direct general obligation debt as a percent of taxable assessed valuation .................... 1.69% Combined net direct and overlapping general obligation debt as a percent of taxable assessed valuation.......................................................................... 3.12% Net direct general obligation debt per capita .................... I ...... I ................... $ 485.26 Combined net direct general and 'special obligation debt per capita ............................. $ 1,090.91 Combined net direct and overlapping general obligation debt per capita ......................... $ 896.94 Combined net direct and overlapping general and special obligation debt per capita ............... $ 1,709.69 (1) Assessed valuation as of the final tax roll from Metropolitan Dade County, using 100% of assessed value as mandated by Florida law. (2) Special obligation debt includes special obligation bonds as well as revenue bonds payable from revenue sources other than ad valorem taxes. (3) Based upon the percentage of the County's tax roll valuation comprised of real and personal property situated in the City of Miami. (4) Based on City of Miami estimate. The 1990 U.S. Bureau of the Census preliminary population count of 358,458 is being challenged by the City and is expected to be adjusted. 139 93- 578 CITY OF MIAMI, FLORIDA SCHEDULE OF REVENUE BOND COVERAGE ENTERPRISE FUNDS WITH OUTSTANDING REVENUE BONDS LAST TEN FISCAL YEARS (in thousands) NET REVENUE AVAILABLE DEBT SERVICE FISCAL GROSS OPERATING FOR DEBT YEAR(1) REVENUE(2) EXPENSES(3) SERVICE PRINCIPAL INTEREST(4) TOTAL COVERAGE 1992 $18,175 $14,656 $3,519 $3,549 $7,866 $11,415 .31 1991 19,363 15,345 4,018 1,102 8,265 9,367 43 1990 22,908 15,018 7,890 5,957 8,249 14,206 56 1989 17,667 14,889 2,778 860 8,272 9,132 .31 1988 11,977 9,536 2,441 580 6,064 6,644 .37 1987 11,763 9,222 2,541 218 7,791 8,009 .32 1986 10,818 8,665 2,153 117 7,875 7,992 .27 1985 11,152 8,746 2,406 177 7,851 8,028 .30 1984 9,814 8,871 943 181 8,191 8,372 .11 1983 7,785 6,697 1,088 237 6,620 6,857 .16 (1) This schedule incorporates operations and debt service of enterprise funds in the fiscal years indicated below: FISCAL YEAR ENTERPRISE FUND 1983 Off Street Parking 1983 Convention Center 1984 Parking Garage 1989 Orange Bowl Stadium 1989 Marinas 1989 Exhibition Center j (2) Represents charges for services, and excludes interest revenues and transfers from other funds. I (3) Represents operating expenses exclusive of depreciation. (4) Excludes accretion on Capital Appreciation Bonds portion of Series 1987 Special Revenue Refunding Bonds and the Series 1990 Special Obligation Bonds. 140 93- 578 ) CITY OF MIAM1, FLORIDA TEN LARGEST TAX ASSESSMENTS !' 1992 ASSESSED VALUES NATURE ASSESSED NAME OF OF VALUE PERCENT TAXPAYER ACTIVITY (000) % 1. City National Bank Bank/Trustee $ 254,038 2.13% 2. Southern Bell Telephone Utility 213,455 1,79 3. Equitable Life Assurance Real Estate Investments 185,336 1 55 4. Florida Power & Light Utility 180,370 1.51 ( 5. SEFC Buildings Office Buildings 162,971 1.37 6. Bnckell Associates Office Building 68,960 .58 7. Inter -Continental Florida Hotel/Building 67,602 .57' j i 8. One Biscayne Tower Office Building 61,600 .52 j 9. Knight Ridder/Miami Herald Newspapers 55,598 47 10. Terremark, Inc. Real Estate Investments 51,532 .43 q All others Various 10,622,328 89.08 i3 Total $11,923,790 100.00% SOURCE: Metropolitan Dade County Property Appraiser's Office Y CITY OF MIAMI, FLORIDA BANK DEPOSITS LAST TEN YEARS FINANCIAL INSTITUTIONS Dade County is second only to New York in the greatest concentration of international and Edge Act Banks in North America with 46 foreign bank agencies operating in the community. Additionally, there are 15 Edge Act Banks that are located in the Miami area. These include: BankAmerica International, Bankers Trust International, Banco de Santander International, Chase y Bank International, Citibank International, Irving Trust, American Express Bank -International, Manufacturers Hanover International, and Morgan Guaranty International. The Federal Reserve Edge Act Amendment, adopted in 1979, permits ji banks to open international banking subsidiaries outside their home states The Federal Reserve System has established a branch office in Dade County to assist the Atlanta office with financial transactions in the South Florida area The ten year summary presented below is for Metropolitan Dade County which includes the City of Miami. These figures include national and state chartered banks which are FDIC insured. Non-insured state chartered banks are excluded. NUMBER JUNE 30 OF BANKS TOTAL DEPOSIT 1992 62 $22,581,503,000(1) t 1991 68 22,087,323,000(1) 1990 69 22,783,647,000 1989 73 21,695,337,000 1988 75 20,070, 795,000 1987 69 25,958,000,000 1986 73 23,042,378,000 4 1985 75 21,615,733,000 1984 76 21,770,028,000 1983 74 19,256,581,000 SOURCE: F.D.I.C., Atlanta, GA i (1) F.D.I.C, data was not available. This data was provided by Florida Bankers Assoc. I I CITY OF MIAMI, FLORIDA BUILDING PERMITS i LAST TEN FISCAL YEARS The dollar value of building permits issued in the City and in the unincorporated areas of Dade County since 1983 are as follows: UNINCORPORATED CITY OF MIAMI DADE COUNTY YEAR (000) (000) 1992 $2116.266 $ 1,186,644 1991 208,914 1,493,522 1990 237,039 1,046,389 1989 308,941 2,731,505 1988 288,771 2,702,387 1987 238,513 1,190,493 1986 192,418 1,023,858 1985 322,785 864,862 1984 345,562 953,055 1983 314,362 903,706 SOURCE: City of Miami and Dade County Budding & Zoning Departments CITY OF MIAMI, FLORIDA DEMOGRAPHIC STATISTICS CITY OF MIAMI AND METROPOLITAN DADE COUNTY POPULATION 1990 CENSUS COUNT CITY OF METRO-DADE YEARS MIAMI COUNTY 0-04 25,627 139,714 5-17 56,868 328,296 ! 18-20 13,804 82,000 21-24 19,811 111,876 25-44 105,524 609,719 45-54 38,898 212,098 55-59 19,004 91,769 60-64 19,665 90,816 65-74 32,460 146,131 75-84 20,603 94,556 - 85 + 6,284 30,119 Total 358,548 1,937,094 SOURCE: U.S. Bureau of Census I l I I 142 i 93- 578 I 1 ij CITY OF MIAM11, .IORIDA GENERAL STATISTICAL DATA GEOGRAPHY The City of Miami encompasses 34 square miles of land and 20 square miles of water and is the County seat of Dade County, which encompasses 2,000 square miles of Florida's southeastern reg!on Miami is situated at the mouth of the Miami River on the western shore of Biscayne Bay, the main port of entry in Florida. Miami is the southernmost major City and seaport in the continental United States The nearest foreign territory is the Bahamian Island of Bimini, 50 miles from the Miarni coast Miami's climate is sub -tropical -marine., characterized by long summers with abundant rainfall and mild, dry winters. The average temperature in the summer is 81.4 degrees fahrenheit and 69.1 degrees fahrenheit in the winter, with an average annual temperature of 75.3 degrees. ECONOMY The economic base of Greater Miami has diversified in recent years, shifting from a reliance on the tourism industry to a combination of manufacturing, services industries and international trade. The area's advantages in terms of climate, geography, low taxes and skilled labor have combined to make the Miami area a prime relocation area for major manufacturing firms and international corporate headquarters. PORT OF MIAMI The Port of Miami is operated by the Seaport Department of Metropolitan Dade County. From 1983 to 1992, the number of passengers sailing from the Port increased from 2,002,654 to 3,095,487, an increase of 55%. The Port of Miami is currently the world's most active port in numbers of passengers and frequency of sailings. Cargo movement through the Port has increased by 46% in the last ten years of operation. The Port of Miami has almost doubled in size, from 325 acres to 600 acres, through a $250 million expansion program began in 1980 designed to move 16 million tons of cargo and four million cruise passengers by the year 2000. The additional space is needed to accommodate the increasing number of shippers, buyers, importers, exporters, freight forwarders, and cruise passengers who wish to conduct business through the Port. A ten year immary of the growth in revenues, passengers, and cargo handled follows' Total Cargo Year Revenues Passengers Tonnage 1992 $35,754,515 3,095,487 4,959,648 1991 32.733.262 2,928,532 3.882,284 1990 25,736,465(1) 2,734.816 3,590,937 1989 '10.035,859 3,100,055 3,206,417 1988 26,489,275 2,502,4111 2,602.556 1987 19,933.197 2.633.041 2,425,937 1986 17.973,522 2.520.511 2.406,084 1985 17.135,048 2,326,685 2,333,026 1984 15,943.548 2,217,065 2.287,281 1983 14,201,008 2,002.654 2.305.645 SOURCE Dade County Seaport Department (1 ) Previous data included internal service revenue and transfers. Actual revenue for 1990 increased 7% over prior year 143 MIAMI INTERNATIONAL AIRPORT Metropolitan Dade County owns and operates six airports in the Miami area. Miami International Airport ranks eighth in the nation and tenth in the world in passenger traffic through the airport The airport ranks fourth in the nation and seventh in the world in tonnage of domestic and international cargo movement In 1992 over 26 million air travelers were serviced by Miami International Airport, and over 2.0 billion pounds of cargo were handled. Miami International Airport is in the midst of a one billion dollar expansion planned to service over 45 million passengers by the year 2000. A ten year summary of the growth of both passengers served and cargo handled follows: Total Total Cargo Passengers (Thousand Year (thousands) Pounds) 1992 26,484 2,075,198 1991 26,591 1,815.534 1990 25,837 1,815,374 1989 25,408 1,730,850 1988 24,224 1,429,944 1987 23,801 1,374,380 1986 21,357 1,200,270 1985 19,853 1,031, 700 1984 19,328 1,130,184 1983 19,322 1,184,526 SOURCE: Miami International Airport 93- 578 CITY OF MIAMI, FLORILA GROWTH FACTORS Data reflecting the growth of the economy of the Metropolitan Dade County (including the City of Miami), are presented in the ten year summaries below: CITY OF MIAMI, FLORIDA GROWTH FACTORS RELATIVE TO DADE COUNTY, FLORIDA ELECTRICITY CUSTOMERS AND SALES Commercial Total KWH Residential Customers Sales Customers Average Year 1000) Average Number Number 1992 19,101 ,001 720,037 98,653 1991 19,837,632 713,309 97,731 1990 19,307,998 701,994 88,140 1989 19,031,695 688,981 90,556 1988 16,740,000 672,429 88,082 1987 17, 500.000 655,000 88.000 1986 16,621,410 640,000 85,200 1985 15,479,000 623,000 81,100 1984 15,092,653 620,000 80,100 1983 15,203.147 606,000 74,700 WATER CUSTOMERS AND SALES Consumption Number (Billions Of Year Water Meters Gallons) 1992 331,701 99,127 1991 330,356 95,118 1990 323,622 90,989 1989 316,202 101,294 1988 307,959 96,592 1987 300,117 94,698 1986 290,806 90,249 1985 282,552 87,032 1964 274,805 99,415 1983 259,932 78,828 MOTOR VEHICLE REGISTRATION AND SALES TAX COLLECTION Sales Tax Motor Vehicle Collections Year Registrations (000) 1992 2,272,812 $1,095,339 1991 1,978,169 1,104,537 1990 1,804,221 1,096,703 1989 1,753,322 1,081,422 1988 1,758,674 1,040,079 1987 1,714,684 787,674 1986 1,608,982 742,533 1985 1,589,173 686,399 1984 1,470,024 654,014 1983 1,453,991 575,065 SOURCE: Appropriate utility or responsible government agency. 144 93- 578 CITY OF MIAMI, FLORIDA 12 INTER -OFFICE MEMORANDUM a '. 1p Honorable Mayor and Members DATE .yL FILE of the City Commission SUBJECT Agenda item - Audit Reports. FROM REFERENCES Cesar H. Odio City Manager ENCLOSURES I I ' RECOMMENDATION: It is respectfully recommended that the attached resolution be adopted accepting the Audit Reports for the Fiscal Year ended September 30, 1992 as required by the Rules of the Auditor General of the State of Florida, Section 10.558. 4 BACKGROUND: The Comprehensive Annual Financial Report for the Fiscal Year ended 1992 and related management letter and management responses are presented herewith as required by State Law for your acceptance. The annual report prepared by the Finance Department presents the City's financial position as of September 30, 1992 and the results of its operations for the year then ended, as audited by the City's external auditors, Deloitte and Touche, in association with Sharpton, Brunson & Co., P.A.; Verdeja, Iriondo & Gravier; and Watson & Company, P.A. The management letter contains the external auditors recommendations concerning certain matters related to the internal control structure and certain j administrative and operating matters. The management responses address the recommendations of the management letter. i 0 Page 2 of 4 Management Response:_ As stated in the auditor's recommendation #3, the City's existing accounting system has outlived its usefulness making the year-end closing process quite cumbersome. To alleviate this situation the previous auditing team prepared the City's financial statements from the trial balances provided by the City. Deloitte & Touche became cognizant of this situation during the auditing selection process and agreed in continuing to provide those services. It has been the City's intention to internalize the financial statement preparation process, to that effect the City purchased a microsoftware system three years ago and has been preparing the draft of the financial statements ever since. Unfortunately, the city's is still too dependent on the external auditing team due to the lack of support from the existing accounting system. tion #3: The_$ccountj_n_ __S,Ys em The City should replace the FAMIS general ledger system and implement a state-of-the-art fund accounting software system, including a fixed asset module which will interface with the general ledger system. In the selection of such a system, the City should determine its informational needs and reporting requirements (both internal and external) and make sure the new system is responsive, efficient, effective and user friendly. Manaaement Respp, The City has completed a study that included representatives from all major user departments. Based on the study a system was selected for implementation after the Payroll, Personnel and Receivable Systems were implemented. The system selected was specifically developed for governmental users and appeared to include most of the advances made in the computer industry as mentioned in the auditor's recommendation. The City has been waiting for an upgraded version of the system to be debugged as it was recently installed in the Denver, Colorado Public School System. Since the debugging process in this system is taking much longer than anticipated, the City, committed to replacing FAMIS, is currently reviewing other state-of- the-art fund accounting systems. Two of such systems that are now under review appear to have some promise, but the review evaluation process is inconclusive at this time. 93- 578 Page ] of 4 • i � � e .i : ' r � recommendation #1: Contrpls over__PoQj_e Cash. Management should: * Conduct training on the proper reconciliation procedures of bank accounts, vis-a-vis balancing cash. * Review reconciliations prepared by its staff monthly to ensure the reconciliations are performed timely and correctly. * Review its outstanding check listing semianually to ensure any possible errors as well as outstanding items greater than six months old, are investigated for propriety. es onse: We agree with this recommendation. A staff change has already been made in this area and the Finance Department is in the process of implementing all aspects of this recommendation. tion #Financia,_RepP_r_tincL Finance Department management should prepare and adhere to a strict schedule for the preparation of the CAFR, and the general purpose financial statements. This schedule should include, at a minimum, the review and analysis of the financial statements of the City's fund types prior to the start of the audit in order to alleviate the excessive post closing client and audit adjustments. This schedule should be designed such that an adequate length of time is given for the review of the City's CAFR. In addition, supervision and review needs to be strengthened to ensure this process is redesigned and implemented efficiently and effectively. Is 93— 578 Page 3 of 4 Recommendation #4L Car?ita-. Ou-tlAy_ In order to ensure that all capitalizable expenditures are properly recorded in the general fixed assets account group, capital outlay expenditures should be reconciled to the general fixed asset additions. Ma,nageinent Re- e_;_ The City agrees with this recommendation and implementation will be included in the year-end reconciliation process. � Ii€commendat�n # 5 ; �gl f Instl�a�c� In order to properly analyze the City's negative trend of its liability for self-insurance claims, management should have a claims audit performed of the City's self-insurance programs. A claims audit will enable management to identify claims which have a negative impact on the C�ty's financial results. A claims audit will also provide the City with the necessary assurance that its internal personnel are properly adjusting, reserving and settling cases and will also identify the weaknessess and strengths in the current claims handling practices. Managemen es6onse_ The City agrees with this recommendation and will begin making the preparations necessary for such an audit within the constraints of current budget parameters. Recommendation #6: Grant Mon. ori.ng_ The City should dedicate resources and establish a system within the Finance Department which will centralize the accounting for grants as it is the department responsible for the annual financial statements and reports filed with the City's cognizant federal audit agency. These actions will minimize the possibility of the ocurrence of the City's noncompliance with laws and regulations governing federal and state financial assistance. Management Response: The Department of Finance recognizes the need for a Grants Coordinator to monitor compliance with federal reporting requirements. The newly established Asset and Grant Management office will be performing the majority of these functions. The Finance Department will continue to provide supportive financial services and reviews. 93- 5' 8 Page q of 4 e Re c_omme.ndati4n_ 7 Dates_ ec��i_ty�Qlic e �xLd_Er�c slur�� Management should develop and implement comprehensive formal data security policies and procedures for the City. The implementation of comprehensive formal data security policies and procedures will enhance the effectiveness of security controls and procedures employed by the City, resulting in improved security administration, documentation and review. Mana_g-eme_n-t-Resp o-s e This is the first time this recommendation has been addressed to departments other than the Department of Computers. We agree that departmental policies should have such security procedures and will implement the recommendation. Recommendation #a: $e_yj dIyiduai�e� Dance Management should consider either cross -training an existing programmer for FAMIS support or hiring an additional programmer to fill the position. Management Resaonse The City's Computer Division agrees with this recommendation and will implement when budget parameters permit. Recomme3]datian. #9: Date. Glass' 'cation Management should evaluate the accounting classifications and descriptions of solid waste residential and commercial accounts to determine if adjustments are warranted. Management RespJlSe_ Our preliminary review did indicate some inconsistency in rate classification. The City is currently in the process of correcting the rate tables. 93- 578