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HomeMy WebLinkAboutR-79-0686RESOLUTION NO. 79-686 RESOLUTION APPROVING THE OCTOBER 15, 1979 OFFICIAL STATEMENT FOR THE $6,750,000 BONDS OF THE CITY OF MIAMI, FLORIDA DATED NOVEMBER 1, 1979. WHEREAS, the Finance Department of the City of Miami (the "City"), has prepared and submitted to the Commission of the City (the "Commission") an Official Statement, dated October 15, 1979, containing data and information respecting the City, Dade County and the bonds of the City in the principal amount of $6,750,000, dated November 1, 1979, consisting of $3,000,000 Sanitary Sewer Bonds, $1,750,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds and $2,000,000 Storm Sewer Improvement Bonds; and WHEREAS, the Commission has examined and considered said Official Statement; now, therefore, NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The Official Statement dated October 15, 1979 prepared by the City's Finance Department containing data and information respect- ing the City, Dade County and the bonds of the City in the principal amount of $6,750,000, dated November 1, 1979, consisting of $3,000,000 Sanitary Sewer Bonds, $1,750,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds and $2,000,000 Storm Sewer Improvement Bonds is hereby approved in the form presented to the Commission for its consideration and is ordered to be filed as part of the official records of the City. Section 2. The Mayor of the City is hereby authorized and directed to sign said Official Statement for and on behalf of the City in such form, with such minor changes, insertions and omissions as he may approve, and thereupon cause such Official Statement to be delivered by the Director of Finance for use by the prospective purchasers of said bonds in connection with the public sale of said bonds, and the signature of the Mayor on such Official Statement shall be conclusive evidence of his approval, as herein authorized, of any such changes, insertions and omissions in said Official Statement. "DOCUMENT INDEX ITS- i 1..0 11 PASSED AND ADOPTED this 17 th day of October , 1979. • CT r? / RALPH G. ONGIE CITY CLERK Maurice A. Ferre MAURICE A. FERRE MAYOR MEETING OF —CITY-COMMISSION OCT1 7 1979 aeOWT ION 9 - 6 8 ............ PREPARED AND APPROVED BY: kae-i,td ROBERT F. CLARK ASSISTANT CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: 11111111111111111111111111111111100 -2- 79-686 as CITY OF MIAMI. FLORIDA INTER•Or'FlCr MEMORANDUM TO: FROM: Joseph P . Grassie City Manager DATCt September 26, 1979. sunJECt R esolution Approving the Official Statement for the. $6, 750, 000 General Obligation Bond Sale, October 30, 1979 REFERENCE9t, Attached is a resolution approving the OfficialStatement regarding `the $6, 750, 000 General. Obligation Bond sale, scheduled for October 30, 19.79; consisting of: Sanitary Sewer Bonds Fire Fighting, Fire Prevention and Rescue Facilities Bonds Storm Sewer Improvement Bonds Please place the resolution on the agenda of the October Commission meeting: JEG:JP:mb Attachment (1) cc: George F. 686 NOTICE OF SALE $6,750,000 BONDS THE CITY OF MIAMI, FLORIDA $3,000,000 Sanitary Sewer Bonds $1,750,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds $2,000,000 Storm Sewer Improvement Bonds Sealed bids will be received by the Commission of the City of Miami, Florida, at its regular place of meeting in the City Hall, 3500 Pan American Drive; Dinner Key, Miami, Florida, until I I o'clock A.M. Miami time, on Tuesday, October 30, 1979, at which time and place all bids will be publicly opened and read, for the following bonds of the City of Miami, Florida, all dated November I, 1979: $3,000,000 SANITARY SEWER BONDS, maturing annually, November 1, without option of prior redemption, as follows: Year of Principal Maturity Amount 1981 $I60,000 1982 160,000 1983 160,000 1984 160,000 1985 160,000 1986 160,000 1987 ; 155,000 1988 155,000 1989 155,000 Year of Maturity Year of Principal Maturity Amount 1990 $155,000 1991 155,000 1992 155,000 1993 155,000 1994 155,000 1995 160,000 1996 160,000 1997 160,000 1998 160,000 1999 160,000 51,750,000 FIRE FIGHTING, FIRE PREVENTION AND RESCUE FACILITIES BONDS, maturing annually, November 1, without option of prior redemption, as follows: Principal Year of Prlaelpal Amosut Maturity Amount 1981 S 95,000 1990 S 95,000 1982 95,000 1991 95,000 1983 95,000 1992 95,000 1984 95,000 1993 90,000 1985 95,000 1994 90,000 1986 90,000 1995 90,000 1987 90,000 1996 90,000 1988 90,000 1997 90,000 1989 ; 90,000 1998 90,000 1999 90,000 S2,000,000 STORM SEWER IMPROVEMENT BONDS, maturing annually, November 1, without option of prior redemption, as follows: Year of Principal MIturIty Amami 1981 S 60,000 1982 65,000 1983 70,000 1984 70,000 1985 75,000 1986 ' 80,E 1987 85,000 1988 90,E 1989 95,000 Year of Pncd/al Maturity Amount 1990 S 100,000 1991 105,000 1992 110,000 1993 120,000 1994 125,000 1995 135,000 1996 140,000 1997 150,000 1998 160,000 1999 165,000 Denomination $5,000; coupon bonds registrable as to principal alone or as to both principal and interest; principal and semi-annual interest (November 1 and May I) payable at Chemical Bank, in the Borough of Manhattan, City and State of New York, or, at The First National Bank of Chicago, in the City of Chicago, Illinois or at Pan American Bank of Miami, in the City of Miami, Florida, at the option of the holder or registered owner; general obligations; unlimited tax upon all taxable property within the City (excluding homesteads). Said Sanitary Sewer Bonds and Fire Fighting, Fire Prevention and Rescue Facilities Bonds were validated by a judgment of the Circuit Court of Dade County, Florida, on February 22, 1977; and said Storm Sewer Improvement Bonds were validated by a judgment of the Circuit Court of Dade County on November 30, 1978. Bidders are requested to name the interest rate or rates, not exceeding 71/2% per annum, in multiples of 1/8 or 1/20 of 1 %. Each bidder must specify in his bid the amount and the maturities of the bonds of each rate, and all bonds maturing on the same date must bear interest at the same rate. Any number of interest rates may be named, but the interest rate named for the bonds of any maturity shall not be less than the interest rate named for the bonds of any earlier maturity. No rate may be more than two times the lowest rate named in the bid. The interest on any bond payable on any interest payment date shall be represented by a single coupon. No bid for less than all of the bonds offered or for Tess than par and accrued interest will be entertained. The Bonds will be awarded to the bidder offering to purchase the bonds at the lowest interest cost to the City, such cost to be determined by deducting the total amount of of any premium bid from the aggregate amount of interest on all of the bonds from their date until their respective maturities. Each bid must be submitted on a form to be furnished by the undersigned and must be enclosed in a sealed envelope marked "Bid for $6,750,000 Bonds", and must be accompanied by a certified or bank cashier's or treasurer's check for $135,000, drawn on an incorporated bank or trust company, payable unconditionally to the order of The City of Miami, Florida, on which no interest will be allowed. Award or rejection of bids will be made on the date above stated for the receipt of bids and the checks of unsuccessful bidders will be returned immediately. The check of the successful bidder will be cashed and the proceeds will be held as security for the performance of his bid, but, in the event that the successful bidder shall fail to comply with the terms of his bid, the proceeds will be retained as and for full liquidated damages. Whenever such terms have been complied with the proceeds may be applied towards payment of the bonds, or if it shall be found impossible to issue and deliver the bonds, the proceeds will be returned. The approving opinion of Brown, Wood, Ivey, Mitchell & Petty, will be furnished without cost to the purchasers of the bonds. There will also be furnished the usual closing papers. Delivery of the bonds will be made on or about November 20, 1979 in the Borough of Manhattan, City and State of New York, against payment therefor in Federal funds or other immediately available funds. Copies of the Notice of Sale, bid form and the Official Statement may be obtained by application to the undersigned at Miami City Hall, 3500 Pan American Drive, Dinner Key, Miami, Florida 33133 and from Brown, Wood, Ivey, Mitchell & Petty, One Liberty Plaza, New York, N.Y. 10006, Attention: Joseph Guandolo. The right to reject any or all bids is reserved. James E. Gunderson Director of Finance City of Miami, Florida Denomination $5,000; coupon bonds registrable as to principal alone or as to both principal and interest; principal and semi-annual interest (November 1 and May 1) payable at Chemical Bank, in the Borough of Manhattan, City and State of New York, or, at The First National Bank of Chicago, in the City of Chicago, Illinois or at Pan American Bank of Miami, in the City of Miami, Florida, at the option of the holder or registered owner; general obligations; unlimited tax upon all taxable property within the City (excluding homesteads). Said Sanitary Sewer Bonds and Fire Fighting, Fire Prevention and Rescue Facilities Bonds were validated by a judgment of the Circuit Court of Dade County, Florida, on February 22, 1977; and said Storm Sewer Improvement Bonds were validated by a judgment of the Circuit Court of Dade County on November 30, 1978. Bidders are requested to name the interest rate or rates, not exceeding 71% per annum, in multiples of 1/8 or 1/20 of 1%. Each bidder must specify in his bid the amount and the maturities of the bonds of each rate, and all bonds maturing on the same date must bear interest at the same rate. Any number of interest rates may be named, but the interest rate named for the bonds of any maturity shall not be less than the interest rate named for the bonds of any earlier maturity. No rate may be more than two times the lowest rate named in the bid. The interest on any bond payable on any interest payment date shall be represented by a single coupon. No bid for less than all of the bonds offered or for less than par and accrued interest will be entertained. The Bonds will be awarded to the bidder offering to purchase the bonds at the lowest interest cost to the City, such cost to be determined by deducting the total amount of of any premium bid from the aggregate amount of interest on all of the bonds from their date until their respective maturities. Each bid must be submitted on a form to be furnished by the undersigned and must be enclosed in a sealed envelope marked "Bid for $6,750,000 Bonds", and must be accompanied by a certified or bank cashier's or treasurer's check for $135,000, drawn on an incorporated bank or trust company, payable unconditionally to the order of The City of Miami, Florida, on which no interest will be allowed. Award or rejection of bids will be made on the date above stated for the receipt of bids and the checks of unsuccessful bidders will be returned immediately. The check of the successful bidder will be cashed and the proceeds will be held as security for the performance of his bid, but, in the event that the successful bidder shall fail to comply with the terms of his bid, the proceeds will be retained as and for full liquidated damages. Whenever such terms have been complied with the proceeds may be applied towards payment of the bonds, or if it shall be found impossible to issue and deliver the bonds, the proceeds will be returned. The approving opinion of Brown, Wood, Ivey, Mitchell & Petty, will be furnished without cost to the purchasers of the bonds. There will also be furnished the usual closing papers. Delivery of the bonds will be made on or about November 20, 1979 in the Borough of Manhattan, City and State of New York, against payment therefor in Federal funds or other immediately available funds. Copies of the Notice of Sale, bid form and the Official Statement may be obtained by application to the undersigned at Miami City Hall, 3500 Pan American Drive, Dinner Key, Miami, Florida 33133 and from Brown, Wood, Ivey, Mitchell & Petty, One Liberty Plaza, New York, N.Y. 10006, Attention: Joseph Guandolo. The right to reject any or all bids is reserved. James E. Gunderson Director of Finance City of Miami, Florida Commission of the City of Miami City Hall 3500 Pan American Drive Dinner Key Miami, Florida 33133 Sirs: We make the following offer for the bonds of The City of Miami, Florida, mentioned below and described in the Notice of Sale of said bonds, which Notice is hereby made a part of this bid, this offer being for all of said bonds and not for less than all: For $3,000,000 Sanitary Sewer Bonds, $1,750,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds and $2,000,000 Storm Sewer Improvement Bonds maturing and bearing interest as follows: Fire Fighting, Sanitary Fire Prevention and Storm Sewer Total Year of Sewer Rescue Facilities Improvement Principal Interest Maturity Bonds Bonds Bonds Amount Rate 1981 $160,000 $95,000 $ 60,000 $315,000 % 1982 160,000 95,000 65,000 320,000 % 1983 160,000 95,000 70,000 325,000 % 1984 160,000 95,000 70,000 325,000 % 1985 160,000 95,000 75,000 330,000 % 1986 160,000 90,000 80,000 330,000 % 1987 155,000 90,000 85,000 330,000 % 1988 155,000 90,000 90,000 335,000 % 1989 155,000 90,000 95,000 340,000 % 1990 155,000 95,000 100,000 350,000 % 1991 155,000 95,000 105,000 355,000 % 1992 155,000 95,000 110,000 360,000 % 1993 155,000 90,000 120,000 365,000 % 1994 155,000 90,000 125,000 370,000 % 1995 160,000 90,000 135,000 385,000 % 1996 160,000 90,000 140,000 •390,000 % 1997 160,000 90,000 150,000 400,000 % 1998 160,000 90,000 160,000 410,000 % 1999 160,000 90,000 165,000 415,000 % We enclose herewith a certified or bank cashier's or treasurer's check, drawn on an incorporated bank or trust company in the amount of $135,000 payable to the order of The City of Miami, Florida, which check is to be applied or returned in accordance with the Notice of Sale. The closing papers referred to in the Notice of Sale are to include a certificate, dated as of the date of the delivery of the bonds, with reference to the Official Statement, as provided therein, and stating that there is no litigation pending or, to the knowledge of the signer of such certificate, threatened affecting the validity of the bonds. (No addition or alteration, except as providedabove,. is to be made to this bid and it must not be detached from the attached Notice of Sale.) The following is for information only and is not partof this bid: Aggregate amount of interest from date of bonds to final maturity Less premiumbid, if any, Net interest cost Net effective interest_: rate • • • • , '• • The above good faith check has been returned and receipt thereof is duly acknowledged. In the opinion of Bond Counsel, interest on the Bonds is exempt under existing statutes, regulations, rulings and court decisions from Federal income taxes. OFFICIAL STATEMENT S6,750,000 THE CITY OF MIAMI, FLORIDA' GENERAL OBLIGATION BONDS $3,000,000 Sanitary Sewer Bonds 1,750,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds 2,000,000 Storm Sewer Improvement Bonds Dated: November 1, 1979 Due:In Annual Installments November 1, in the years 1981 to 1999, inclusive Denomination $5,000; Coupon Bonds, registrable as to principal alone and also as to both principal and interest; except as to fully registered Bonds, principal and semi-annual interest (May 1 and November 1, first interest May 1, 1980), payable, at the option of the holder, at Chemical Bank, New York, New York, at The First National Bank of Chicago, Chicago, Illinois, or at Pan American Bank of Miami, Miami, Florida. The Bonds will be general obligations of the City for which its full faith and credit are pledged, and are payable from unlimited ad valorem taxes levied on all taxable property in the City (excluding homesteads to the extent of the exemption). The Bonds are stated to mature, without option of prior redemption, on November 1 in each of the years, and in the principal amounts, respectively, as follows: Year of Rate or Year of Rate or Year of Rate or Maturity Amount Yield Maturity Amount Yield Maturity Amount Yield 1981 315,000 1982 320,000 1983 325,000 1984 325,000 1985 330,000. 1986 330,000 1987 330,000 1993 365,000 1988 335,000 1994 370,000 1989 340,000 1995 385,000 1990 350,000 1996 390,000 1991 355,000 1997 400,000 1992 360,000 1998 410,000 1999 415,000 Sealed, bids will be received by the Commission of The City of Miami, Florida, at its regular place of meeting in the City Hall, 3500 Pan American Drive, Dinner Key, Miami, Florida, until 11 o'clock, A.M., Miami Time, on Tuesday, October 30, 1979. The Bonds are offered when, as and if issued, and subject to the approving opinion of Brown, Wood, Ivey, Mitchell & Petty, New York, New York, Bond Counsel. A copy of such legal opinion will be printed on the Bonds. It is expected that the Bonds will be delivered in definitive form on or about November 20, 1979. Prepared by City of Miami Finance Department City Hall, 3500 Pan American Drive Miami, Florida 33133 October 15, 1979 l.79-686 In the opinion of Bond Counsel, interest on the Bonds is exempt under existing statutes, regulations, rulings and court decisions from Federal income taxes. OFFICIAL STATEMENT $3,000,000 Sanitary Sewer Bonds 1,750,000 Fire; Fighting, Fire Prevention and Rescue Facilities Bonds 2,000,000 Storm Sewer Improvement Bonds Dated: November 1, 1979 ue: In Annual Installments November 1, in the years 1981 to 1999, inclusive Denomination $5,000; Coupon Bonds, registrable as to principal alone and also as to both principal and interest; except as to fully registered Bonds, principal and semi-annual interest (May 1 and November 1, first interest May 1, 1980), payable, at the option of the holder, at Chemical Bank, New York, New York, at The First National Bank of Chicago, Chicago, Illinois, or at Pan American Bank of Miami, Miami, Florida. The Bonds will be general obligations of the City for which its full faith and credit are pledged, and are payable from unlimited ad valorem taxes levied on all taxable property in the City (excluding homesteads to the extent of the exemption). The Bonds are stated to mature, without option of prior redemption, on November 1 in each of the years, and in the principal amounts, respectively, as follows: Year of Rate or Year of Rate or Year of Rate or Maturity Amount Yield Maturity Amount Yield Maturity Amount Yield 1981 315,000 1982 320,000 1983 325,000 1984 325,000 1985 330,000 1986 330,000 1987 330,000 1993 365,000 1988 335,000 1994 370,000 1989 340,000 1995 385,000 1990 350,000 1996 390,000 1991 355,000 1997 400,000 1992 360,000 1998 410,000 1999 415,000 Seale bids will be received by the Commission of The City of Miami, Florida, at its regular place of meeting in the City Hall, 3500 Pan American Drive, Dinner Key, Miami, Florida, until 11 o'clock, A.M., Miami Time, on Tuesday, October 30, 1979. The Bonds are offered when, as and if issued, and subject to the approving opinion of Brown, Wood, Ivey, Mitchell & Petty, New York, New York, Bond Counsel. A copy of such legal opinion will be printed on the Bonds. It is expected that the Bonds will be delivered in definitive form on or about November 20, 1979. Prepared by City of Miami Finance Department City Hall, 3500 Pan American Drive Miami, Florida 33133 October 15, 1979 ' 79.686 r� � MST 110111AL t�t Miami — The Magic City. ()ne of the most beautiful cities in the world lies off Biscayne Bay. With its scenic Miamarina. Miami is the hub city of a metropolitan area of nearly two million people. 1 T.- THE CITY OF MIAMI MEMBERS OF BOARD OF CITY COMMISSIONERS MAURICE A, FERRE, Mayor THEODORE R. GIBSON J. L. PLUMMER, JR, ROSE GORDON ARMANDO.E. LACASA CITY OFFICIALS City Manager . J. R. GRASSIE City Attorney ..: .. G. F. KNOX, JR, Finance Director ..... J" E. GUNDERSON. City Clerk , R. G. ONGIE BOND COUNSEL BROWN,: WOOD, IVEY, MITCHELL & PETTY New York, New York Additional copies of this Official Statement, the Notice of Sale and Bid Form, may be obtained from J. E. Gunderson, Director of Finance, P.O. Box 330708, Miami, Florida 33133, Telephone (305) 579-6350, or from Brown, Wood, Ivey, Mitchell & Petty, 1 Liberty Plaza, New York, N.Y. 10006, Attention J. Guandolo, Telephone (212) 349-7500. This Official Statement does not constitute an offer to sell Bonds in any jurisdiction to any person to whom it is unlawful to make such offer in such jurisdiction. No dealer, salesman, or any other person has been authorized to give any information or make any representation, other than those contained herein, in connection with the offering of these Bonds, and if given or made, such information or representation must not be relied upon. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under no cir- cumstances, create any implication that there will be no change in the affairs of the City from the date hereof to the date of the delivery of the Bonds, TABLE OF CONTENTS Par Introduction ................................................................. Security, Authorization and Validation ................. • • • . • "' ..• • .. • • ..... • " ..„ . „ • , .. • 1 2-3 4 .. 4 Application of Proceeds of Bonds Government of Miami; • Background of Certain City Officials . • . • • EconomicFactors................................................................................................................................. Employee Relations . Debt Structure66666.6666 Outstanding Bonds; Debt Service ..66646 Statement of Direct and Overlapping Debt . . • .. 23 Authorized but Bonds not Issue . • • ..... 23 Ratio of Net Debt to Assessed Valuation and Per Capita Figures ...................... ....... 2425 Statement of Legal Debt Margin ....... 26 Tax Data ..... 27-30 Financial Information ....... 30 General Description of Financial Practices . ..... 30 Revenues and Expenditures • 31 Revenue Structure . 32-33 City Pension Funds . . 33-34 Risk. Management . . 35 Contingent Liabilities . ..... 35 Tax Exemptions . . ... 35 Financial Statements . 36 Closing Certificates .... ..................... 36 Approval of Legal Proceedings . 36 Miscellaneous ...... ........................ . .. 36 Appendix A, Audited Statements: 37 Letter of Certified Public Accountants ..... ....'.......:.... . 41 Appendix B, statistical PP Statistil Comparison • � .. `Expenditures � ..:.:` ....: ..... . -107 of Ten Years Revenes and u Description of ISSUer; ..... • ... • • • • • • • • . " " " 6 ' 46616116666.416 This Official Statement does not constitute an offer to sell Bonds in any jurisdiction to any person to whom it is unlawful to make such offer in such jurisdiction. No dealer, salesman, or any other person has been authorized to give any information or make any representation, other than those contained herein, in connection with the offering of these Bonds, and if given or made, such information or representation must not be relied upon. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under no cir- cumstances, create any implication that there will be no change in the affairs of the City from the date hereof to the date of the delivery of the Bonds. TABLE OF CONTENTS pale Introduction ..........•••••••••• _ Security, Authorization and. Validation 1 Application of Proceeds of Bonds . .. : .,,f .,. 4 4 4 I 4 .,. , ,. ... 1.... 2-3 Description of Issuer ..... • .. • • • , . • • • • 444464 Government of Miami . . • • • Background of Certain City Officials , .... • . , . 5 Economic Factors ...:....... Employee Relations.............................. Debt Structure .............. .. Outstanding Bonds; Debt Service . • Statement of Direct and Overlapping Debt ... . 23 Bonds Authorized but not Issued ..• • 23 p g Ratio of NetDebtto Assessed Valuation and Per Capita Figures ..: .... .:`:.:.......... 24.25 Statement of Legal Debt Margin 4 4 5.14 TaxData ......... .............. 15 15 17-22 .............. 26 ............. 27-30 Financial Information .......... 30 General Description of Financial Practices ... • ........ 30 Revenues and. Expenditures... 31 Revenue Structure . CityPension Funds...................................................................................................................................... Risk Management Contingent Liabilities °:........................... . Tax Exemptions . Financial. Statements'.. ........... 35 ........ ............. 35 36 Closing Certificates . 36 Approval of Legal Proceedings . 36 Miscellaneous ......................................... ... 36 Appendix A, Audited Statements . :..... :: . 37 Letter of Certified Public Accountants ............. . .:::......'. 41 Appendix B, Statistical Comparison of Ten Years Revenues and: Expenditures • .. • 107 OFFICIAL STATEMENT Relating to THE CITY OF MIAMI, FLORIDA $6,750,000 General Obligation Bonds Consisting of $3,000,000 Sanitary Sewer Bonds 1,750,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds 2,000,000 Storm Sewer Improvement Bonds INTRODUCTION The City of Miami, Florida (the "City") will offer for sale on Tuesday, October 30, its general obligation bonds in the total principal amount of $6,750,000 (the "Bonds"), being parts of three issues of general obligation bonds of the City authorized by the Commission of the City, approved by the electors and remaining unissued, as hereinbelow mentioned. The material in this Official Statement is presented in advance of the sale of the Bonds in order that those interested in the purchase of the Bonds may have 'available information with which ' investment judgments respecting the Bonds. The purpose of this Official Statement, which includes the cover page and appendices hereto, is to set forth information concerning the City and the Bonds offered for sale. SECURITY, AUTHORIZATION and VALIDATION The Bonds will be general obligations of the City for which its full faith and credit is pledged, and are payable from unlimited ad valorem taxes on all taxable property in the City (excluding homestead exemptions for certain persons who are aged, disabled or otherwise qualified therefor). The Bonds shall be issued under and pursuant to the laws of the State of Florida, the Charter of the City and ordinances and resolutions of the Commission of the City. The Bonds have been authorized under the provisions of the City Charter, including particularly Section 58 thereof, and certain ordinances and resolutions adopted by the Commission of the City. The Bonds have been approved by the electors and validated as follows: The Sanitary Sewer Bonds were authorized by Ordinance No. 8573, adopted July 22, 1976, were approved by the electors on September 28, 1976 and were validated by judgment of the Circuit Court of Dade County on February 22, 1977. No appeal was taken. The Fire Fighting, Fire Prevention and Rescue Facilities Bonds were authorized by Ordinance No. 8571, adopted July 22, 1976, were approved by the electors on September 28, 1976 and were validated, by judgment of the Circuit Court of Dade County on February 22, 1977. No appeal was taken. The Storm Sewer Improvement Bonds were authorized by Ordinance No, 8736, adopted January I,, 1978, were approved by the electors on M arch 7, 1978, and were, validated by judgement of th6 Circuit Court of Dade County on November. 30, 1978. No appeal was taken, APPLICATION OF PROCEEDS OF BONDS $3,0004000 Sanitary Sewer Bonds Ordinance No, 8573 authorized the issuance of $25,000,000 Sanitary Sewer Bonds for the Purpose of paying the cost of improvements and extensions to the sanitary sewer system of the City, including the construction, reconstruction and extension of sanitary sewers and other sanitary sewer improvements, intercepting sewers, force mains, trunk sewers, pumping stations, outlets and connections to the sewage disposal systern of the City, the relaying of any damaged street or sidewalks, and the acquisition of a necessary land. $16,000,000 principal amount of such bonds has been issued and an additional installment of $3,000,000 of such bonds is being offered hereunder. Ordinance No. 8573 provides that a part of the cost ofthe sanitary sewer improvements for which the munku,y sewer bonds authorized thereunder are to be issued may, if the Commission of the City ohoU mm determine, 6nspecially assessed and /[ any such special assessments *huUbn1*viedthuo:6mr,theunnuu\tao levy for the payment of such bonds may be reduced in any year by such amount as is held for such purpose in u special fund in which the proceeds of such opcoiu| uosmoamcni uhuU have been deposited, The Commission has not muJc any such determination with respect to any of such bonds including the $3.000,0008oniiury Sewer Bonds offered hereunder. � ~ The excavation for the expansion of the City of Nliami sanitary sewer system. 2 $1,750,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds Ordinance No. 8571 authorized the issuance of $10,000,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds for the purpose of' paying the cost of Fire Fighting, Fire Prevention and Rescue Facilities, including the construction, reconstruction and improving of fire stations, an administration building and a communication system related to the Fire Department and the acquisition of any necessary land and equipment. $8,250,000 principal amount of such bonds has been issued and the final installment of $1,750,000 of such bonds is being offered hereunder. The City of Miami's latest fire fighting equipment. $2,000,000 Storm Sewer Improvement Bonds Ordinance No. 8736 authorized the issuance of $15,000,000 of Storm Sewer Improvement Bonds for the purpose of paying the cost of the construction of permanent drainage facilities within the City. A portion of the proceeds will be used to construct drainage facilities in conjunction with street improvement projects in certain portions of the City. $5,000,000 principal amount of such bonds has been issued and an additional installment of $2,000,000 of such bonds is being offered hereunder. The construction of storm sewer improvements. 4-4 3- • An aerial view of Miami Cih Hall. DESCRIPTION OF ISSUER Government of Miami The City of Miami has operated under the Commission -City Manager form of government since 1921, The City Commission consists of five elected citizens, who are qualified voters in the City, one of whom serves as Mayor. The Commission acts as the governing body of the City with powers to pass ordinances, adopt regulations and appoint a chief administrative officer known as the City Manager. City elections are held in November every two years on a non -partisan basis. At each of these elections a mayor is elected for a two year term. Candidates for Mayor must run as such and not for the Commission in general. At each election two members of the Commission are elected for four year terms. Thus, the City Commissioners' terms are staggered so that there are always at least two experienced members on the Commission, The City Commission appoints the City Clerk, the City Attorney, the City Manager, the members of the Off -Street Parking Board and the members of the Planning and Zoning Board. The City Manager acts as the administrative head of the municipal government and is responsible for the proper administration of all affairs of the City. The Charter of the City of Miami places considerable responsibility upon the City Manager. He is authorized to appoint and remove all departmental directors, prepare the annual budget, investigate the affairs of the City or of any City department, reorganize the administrative structure and recommend to the City Commission any policies which will benefit the health, safety or welfare of the community. Background of Certain City Officials Maurice A. Ferre was elected Mayor in November 1973 and reelected in November 1975 and November 1977 for two-year terms respectively. Mayor Ferre is 44 years old, is a graduate of Lawrenceville School in New Jersey and holds a Bachelor of Science degree in Architectural Engineering from the University of Miami. He is a prominent businessman andcorporate consultant with interests in both the United States and the -Caribbean. Theodore R. Gibson was appointed a Commissioner in April 1972 and was elected in November 1973 and in November 1977 for four-year terms. Father Gibson is 64 years old. He was graduated from St. Augustine's College in Raleigh, North Carolina and from Bishop Payne Divinity School, now a part of the Virginia Theological Seminary, The Rev. Canon Gibson has been the Rector of the Christ Episcopal Church, Miami, for 32 years. Rose Gordon has served as a Commissioner since November 1971. Mrs. Gordon was educated in New Jersey and Florida Schools. She is a registered real estate broker, appraiser and consultant, She has been the owner of Rose Gordon Realty, Inc., Miami, for over twenty years. Mrs, Gordon is Treasurer of the South Florida Regional Planning Council and is on the Steering Committee of the National League of Cities and the Human Resources Committee, and is Vice Chairman of Health Systems Agency and Co- chairman of Florida Board of Realtors, Urban Revitalization Committee. Armando E. Lacasa was appointed a Commissioner on January 17, 1979. He is 43 years old and is a graduate from Villanueva University School of Law, Havana, Cuba and of Florida State University School of Law. He is presently a member of the law firm of High, Stack, Lazemby, Bender, Pallahach, and Lacasa. He belongs to the Florida Bar and is a member of the Dade County Bar Association. He is now Vice- President of the Latin Festival of the Orange Bowl Committee, J. L. Plummer, Jr. was appointed a Commissioner in October 1970, and was elected Commissioner in November 1971 and November 1975 for four-year terms. Commissioner Plummer is 42 years old and a graduate of Miami Senior High School and the Cincinnati College of Mortuary Science. He is Chairman of the Board of Ahern -Plummer Funeral Home, Miami. J. R. Grassie was appointed by the City Commission as City Manager on July 30, 1976. He served as City Manager of Grand Rapids, Michigan from 1970 to 1976 and as Deputy City Manager of Grand Rapids from 1968 to 1970. City Manager Grassie is 46 years old and a graduate of the University of Chicago with both a Bachelor of Arts degree and a Master's degree in Political Science/Economics. He is an active member of the International City Management Association. James E. Gunderson, the Director of Finance for the City of Miami, was graduated from the University of Illinois in Law and Accounting. He has extensive experience in both the private and governmental sectors of the economy. Prior employment includes the University of Washington, Boeing Airplane Company, Pierce County, Washington and the City of Grand Rapids. He has been associated with Kiwanis, Elks, Lions and the Boy Scouts. He was a former School Board Director in the State of Washington and also served as a Commissioner on the Governor's Crime Commission for the State of Michigan. George F. Knox, Jr., the City Attorney for the City of Miami, was graduated from the Michigan State University and University of Miami, Florida School of Law. Prior to becoming City Attorney, Mr. Knox was Assistant Professor of Law at the University of Arkansas. He is a member of the Association of American Law Schools. ECONOMIC FACTORS The City The City of Miami in the County of Dade (the "County"), the largest city in the State of Florida, was first settled in 1836 and was incorporated in 1896. It is located on the lower east coast of Florida along the western shore of Biscayne Bay and is the southernmost large city in the United States. It comprises 34.3 square miles of land and 19,5 square miles of water. The 1978 estimated census population of the City was 344,393, representing 22,5% of the total population of Dade County, The Climate The temperature of Miami is essentially subtropical marine, featured by long, warm summers, with abundant rainfall, followed by mild, dry winters. The average temperature in the summer is 81.4° and 69.1 in the winter, with a yearly average of 75.3°, Government of Dade County The following information and data concerning Dade County are significant in indicating factors which substantially affect the City of Miami by reason of its status as the largest, municipality in Dade County and the County's urban character. 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 of Dade. The amendment was approved in a state-wide general election in November of 1956, A Dade County Charter Board was constituted and in April, 1957 it completed a draft of a charter for the County. The proposed charter, which established a form of Metropolitan County government, was adopted in a county election in May of 1957, and became effective on July 20, 1957. The electors of Dade County are granted power to revise and amend the charter from time to time by county -wide vote, Since its adoption the charter•has been amended in 1961, 1962, 1963, 1966, 1967, 1969 and 1972. It now enjoys home rule subject only to the limitations of the Florida Constitution and General State Laws. The County is, in effect, a municipality with governmental powers effective upon the twenty-seven cities in the County and the unincorporated area. It has not displaced or replaced the cities but supplements them, The County can take over particular activities of a city's operations (I) if the services fall below minimum standards set by the County Commission, or (2) with the consent of the governing body of the city. Since its inception, the Metropolitan County Government has assumed responsibility on a County- wide service basis for a number of functions, including County -wide police services, complementing the municipal police services within the municipalities, with direct access to the National Crime Information Center in Washington, D.C. and the Florida Crime Information Center; uniform system of fire protection, complementing the municipal fire protection services within ten municipalities and providing full service fire protection for seventeen municipalities which have consolidated their lire departments with the County's fire department; consolidated two-tier court system conforming to the revision of Article V of the Florida Statutes which became effective on January 1, 1973; creation of the Miami -Dade County Water and Sewer Authority with the responsibility for developing and operating a County -wide water and sewer system under a single body composed of seven members appointed by the Board of County Commissioners; coordination of the various surface transportation programs and extending into the planning and development of a unified rapid transit system; installation of a central traffic control computer system which will computerize traffic management; merging all public transportation systems into a County system; regulation of all taxicabs within the County; effecting a combined public library system of the County and eighteen municipalities, which together operate the main library, seventeen branches and six mobile units serving forty-four County -wide locations; centralization of the property appraiser and tax collector functions; furnishing data to municipalities, Board of Public Instruction and several state agencies for the purpose of budget preparation and for their respective governmental operations; collection by the Dade County Tax Collector of all taxes and distribution directly to the respective governmental entities according to their respective tax levies; and prescribing minimum acceptable standards adopted by the Board of County Commissioners and enforceable throughout the County in such areas as environmental resources management, building and zoning, consumer protection, health, housing and welfare. Demographics of Dade County The U.S, Census figures for 1970 show that the working group from 20 years through age 64 niakes up 54,1% of Dade County's population, compared to 52,3% for the entire United States, The percent of pop- ulation 65 and over exceeds the national average by 3,8%. AGE GROUP AS A PERCENT OF TOTAL POPULATION 1970 Age Group 0-5 5-9 10.14 15.19. 20-24 25-29. 30-34 ." 35-39, 40-44 45-49 50-54 55=59 60-64 65-69 70-74. 75 and over Total Transportation The following table sets forth certain data concerning the movement of cargo and individuals into and from the City. United States Percentage Dade County . Percentage 17,154,337 8.4 86,172 6,8 19,956,247 9.8 107,062 8.4 20,789,468 10,2 113,205 8.9 19,070,348 9,4 103,050 8.1 16,371,021 8,1 89,329 7.0 13,476,993 6.6 75,785 6.0 11,430,436 5,6 . 71,059 5,6 11,106,851 5,5 73,200 ;5.8 11,980,954 5.9 83,372 6.6 12,115,939 6.0 82,701 6.5 11,104,018 5.5 75,701 6.0 9,973,028 4.9 69,635 5.5 8,616,784 4.2 64,804 5.1 6,991,625 3.4 62,213 4.9 5,443,831 2.7 50,155 4.0 7,630,046 3.8 60,349 4.8 203,211,926 100;0 1,267,792 100.0 PORT OF MIAMI MIAMI INTERNATIONAL AIRPORT Number Air Cargo Air Mail Cargo of (Ibs.) (Ibs.) Year Revenue Tonnage Passengers Passengers (000's) (WO's) 1950 $ 355,199 194,633 61,377 1,387,142 67,160 6,391 1957.:.`: 597,482 318,001 120,732 3,980,534 202,814 14,428 1960 601,936 352,154 136,275 4,180,556 188,657 20,597 1970'. :: 2,380,579 794,144 569,366 10,660,815 513,823 64,811 1971 2,755,088 841,185 685,990 11,176,739 579,071 66,194 1972 " 2,842,933 779,591 678,397 12,076,000 636,893. 71,449 1973 3,700,182 1,205,454 . 851,164 12,776,011 709,776 69,766 1974 3,850,232 ` 1,301,052 728,201 12,443,885 778,006 68,120 1975 ... 4,517,946. 1,257,608 804,926 12,068,118 745,453 68,233 1976 4,956,670. 1,525,095 1,029,687 12,884,153 807,791 69,218 1977 ` 5,374,978 1,711,535 947,093 13,736,500 907,390 69,856 1978 .::6,236,385 1,756,850 982,275 15,891,402 1,057,802 72,247 . Source: Economic Society of South Florida., ft The Port of Miami with a full house of cruise ships. Port of Miami Eight terminals accommodate the seven cruise lines which dock their 16 permanent and five seasonal ships. The Port's contribution to the community is not solely economic in nature. It also strengthens Miami's role as the Gateway of the Americas. As an international community, Miami is looking more and more to the shipping industry to advertise and promote commerce throughoutthe community. This is evident by multinational companies locating overseas offices in the area, supported by the foreign banking depart- ments of local banks and 14 Edge Act banks, thus establishing Miami as a major international center. Miami International Airport Miami International Airport experienced a 20 percent increase in passenger traffic during 1978, averaging more than 45,000 passengers per day through the terminal and its seven concourses. The Airport's facilities include three runways, a 5,000 car parking complex, approximately two million square feet of warehouse and office space, and maintenance shops. Approximately 30,000 individuals are employed at the airport. Business and Industry Dade County in recent years has begun to shift from a tourist -oriented economy to an economy with a more varied economic base. Industry and manufacturing are becoming stronger forces in Dade County. While the County's share of Florida's expanding tourist trade remains one of the major economic forces, its attractiveness as a residential area to skilled labor and its selection as the site for major and smaller light in- dustrial activities have combined with tourism to produce a more diversified economic base. Dade County, in addition to being Florida's tourist capital, is also the industrial center of the State, having more than twice as many employed in manufacturing as any other county in the State. The following chart gives the September 30, 1978 estimated employment in non-agricultural establish- ments in Dade County, Florida. These figures are compared with the corresponding figures for September 30, 1977, 1976, and 1975. 569,800 82,600 32,500 3,600 2,600 6,100 7,900 2,800 9,500 50,100 7,100 18,000 6,500 18,500 21,000 584,000 84,800 34,600 4,000 2,800 7,800 8,000 3,400 8,600 50,200 7,100 21,400 6,600 15,100 37,400 57,300 55,100 1,500 6,100 25,600 7,300 16,800 145,000 42,700 102,300 3,200 20,900 16,700 2,300 6,300 23,000 6,400 17,100 148,900 41,800 107,100 3,900 25,100 15,500 11,500 11,800 7,100 8,100 5,800 25,600 11,500 5,400 25,500 11,800 43,500 45,600 ESTIMATED EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS DADE COUNTY, FLORIDA the. State of Florida Department of Commerce in Cooperation with the U.S. Bureau of Labor Statistics) TOTAL ............ i . . . . . . . . 44 „, .. . MANUFACTURING .. ....,, Durable Goods . Furniture & Fixtures.. Stone, Clay & Glass Products ... .. Fabricated Metal Products ...•... . Machinery (2) ....................:..... ;.. Transportation Equipment .. ... Other Durable Goods ....... Nondurable Goods .................. . Food & Kindred Products .......... Apparel & Other Textile Products Printing & Publishing Other Nondurable Goods ...... , CONTRACT CONSTRUCTION TRANSPORTATION, COMMUNICATION & PUBLIC UTILITIES .................... Local & Interurban Passenger Transit.................. . Trucking & Warehousing. ... Air Transportation ....... . Other Transportation .... . Communications & Public Utilities . TRADE ...............4008.40464. Wholesale Trade .......... Retail Trade ............ .........:.. Bldg. Materials & Farm Equipment .............. General Merchandise .. . . Food Stores ............. Automotive Dealers & Service Stations ................ Apparel & Accessory Stores Furniture, Home Furnishings Stores.................. Eating & Drinking Places Miscellaneous Retail Stores FINANCE, INSURANCE & REAL ESTATE .............. .... September 1978 Estimated Total Employment as of: September September September 1977 1976 1975 629,600 586,500 93,100 87,800 39,100 36,500 4,000 3,500 3,000 2,700 7,600 7,600 8,600 10,700 2,700 3,800 -0- -0- 54,000 51,300 5,900 6,700 19,100 18,500 7,600 7,200 -0- -0- 33,000 23,900 61,700 59,100 1,900 1,600 6,100 6,300 26,5013 25,900 -0- -0- 16,400 ` 16,100 160,700 149,700 48,700 45,700 112,000 104,000 3,900 16,800 14,300 12,500 8,900 ;, 7,200 4,100 30,200 13,600 46,200 43,300 20,200 3,500 21,200 17,000 4,500 26,700 11,400 (Continued) SERVICES & MISCELLANEOUS . , 145,600100 Hotels & Other Lodging Places ..... , . • , , . , . . 15, 8,200 Personal Services ............ .. " •• ' .... Miscellaneous Business Services . . ........... E..•. 24,500500 Motion Pictures ............... .. ' 7,200 Amusement & Recreation .......... . Medical & Other Health Services.. ., 37,600 Other Services & Miscellaneous - - -0- 45,200 Industries ................ 89,300 96,80084,400 Government (I) All industries are classified according to the Standard Industrial Classification Manual, 1967. All data are adjusted to first quarter 1975 benchmark levels, (2) Includes both electrical and non -electrical machinery, 38,900 136,000 137,800 15,800 15,800 7,900 7,400 21,200 22,200 1,100 1,400 6,000 7,800 36,700 36,200 20,800 9,100 21,900 1,400 7,700 34,000 42,900 74,400 The ten largest private employers in the County are: Eastern Air Lines . .. 12,500" Southern Bell Telephone Co. 10,158 National Air Lines Co.. 5,300 Southeast Banking Corp.. 5,285 t3urdines . 4,8f30 University of Miami 4,805 Florida Power & Light Co, . 4,398 Sears 3,059 Delta Air Lines ..................... 2,700' Mount Sinai Medical Center 2,407 Adding to the County's diversified economic base is its growth as the location for many national and international firms doing business in Latin America. Among firms having substantial properties in Dade County are such corporations as Dow Chemical, Gulf Oil Corp., Owens-Corning Fiberglass Corp., American Hospital Supply, Coca-Cola Interamerican Corp., and Ocean Chemicals, Inc., a subsidiary of Rohm Haas Co. Other national firms which established international operations or office locations in Dade County are Alcoa International, Ltd., Atlas Chemical Industries, Bemis International, Dymo, Inc., International Har- vester, Johns-ManvilleInternational, Minnesota (3-M) Export, Inc., Pfizer Latin American, Royal Export and United Fruit. per Capital Personal Income Dade County and Other Areas 19511 1965 1969 1970,, 1974 1975 1976 1977, U.S.A. ............. .$1,496 2,760 3,688 3,920 4,157 5,023 5,486 5,903 > 6,441 7,026 Sou theist ...........`$1,022 2,099 2,916 3,163 3,404 4,308", 4,740 5,054 5,544 6,057 Florida........... $1,281 2,442 3,525 3,584 4,034 5,041 5,406 .' 5,640 6,108 6,697 Miami' area ........ $1,650 2,790 4,054 4,428 4,706 5,862 6,375. 6,455 6,931 7,755 Miami/USA .`:....... 1.10% 1.01 1.10 1.13 1.13 1.17 1.16 1.09 1.08 1.10 Source: Dade County Planning Department. Average; Labor Force Summary (Greater Miami) 1976 Civilian Labor Force Employment .. Unemployment . Unemployment Rate *as of April 1979 Source: Florida Department of Labor and Employment Security. 1977 Agriculture A significant factor of the economy of Dade County is its agricultural production. Dade County leads Floridain the production of limes, avocados, mangos, tomatoes and pole beans for fresh market. The mild climate allows crops to be grown and harvested during winter months. An average of more than 100 million dollars of agriculture products are produced annually, and the total retail value of these products is estimated at approximately 300 million dollars. Millions of dollars are generated each year in the marketing and distribution of these products. It has been estimated that farmers purchase goods and services within the County in excess of 50 million dollars. 691000 613,000 78,000 11,370 672,000 681,700 609,000 621,100 63,000 60,600 9.47o 8.9% 1978 688,034 639,847 48,1s87 7,0% 1979* 697,500 650,800 46,700 6.77o Financial Institutions There are 71 banks located in Dade County which deposits. Source: Miami -Metro Publicity & Tourism togetherhave a total of over $7,000,000,000 in Demand` Deposits and Bank Debits Number o(. Total Total fear Banks Demand Deposits Rank Debits 1960 36 $1,150,924,000 $15,682,000 1965 63 1,744,453,000 21,869,000 1970 68 3,257,368,000 46,086,000 1971 71 3,614,491,000 55,129,000 1972 77 4,432,841,000 62,168,000 1973 83 5,193,728,000 80,030,401 1974 91 5,493,965,000 91,205,336 1975 93 5,296,569,000 90,037,666 1976 95 5,526,615,000 95,569,000 1977 98 6,489,006,000 * 1979 71** 7,008,649,000 * *Discontinued by Federal. Reserve Board System in 1977. **The current listing of banks merged all of Flagship Banks together and also. Banks. Source: Economic Society of South Florida. all of Pan American location Dade County is also increasing as an international as Bank of Americas Bank off, Bo one Bankers in the County of such major northern and western banks Trust Co,, Chase Manhattan Bank, Citizens and Southern Bank, First National City Bank, Irving Trust Co„ Northern Trust Co. and The Wells Fargo Bank. The inan cal transactionseral Reserve in n the Soustem has thated a Flor'daranch area. office in Dade County to assist the Atlanta of Such branch received full branch status on July 1, 1975. There are 13 major overseas Edge At banks banks that have moved to Miami. The Federal Reserve Edge Act amendment, adopted in 1919, permitted to open international banking subsidiaries outside their home states. Building Permits Building permits issued in Dade County and the City since 1971, are as follows: City of Miami Dade County Veer (off s) (000's) 1971 156,239 760,228 1972 241,967 1,296,235 1973 190,026 1,119,141 1974 113,619 786,760 1975 60,750 404,585 1976 80,744 506,798 1977 97,151 460,689 1978 105,064 651,482 Source: Economic Society of South :Florida. AMENITIES Education Dade County provides educational facilities on primary, secondary and Colleges anduniversities located within the area are: University of Miami Miami -Dade Community College Florida International University Barry College Biscayne College Public. School enrollment, including both primary and secondary School Enrollment Public School System 1971 1972 1973 1974 1975 1976`. 1977 1978" college levels. levels, since 1971 is follows: 245,275 242,190 244,565 246,548 243,444 239,806 235,123 228,592 Medical Facilities There are 42 hospitals located in Dade County. Recreation The Miami area is famous for its sailing, deep sea fishing and hunting in the Everglades National Park. Athleticsfor the spectator sportsmen include professional football, baseball and basketball competition, university competition in sports, open golf tournaments, and professional exhibition games. There are twenty public and eight private golf courses in Dade County. There are 297 public parks and playgrounds which have a total area of 408,710 acres in Dade County, Tourism Tourism is, and will be for the near future, an important economic force in both the County and the City. The combination of favorable climate, together with excellent recreational opportunities - theatres, ballet, symphony orchestras, famous entertainers, parks, public beaches, yacht basins, fishing, golf, outstanding restaurants, racing, all spectator sports, historic sites, and other land and water recreational facilities too numerous to detail - have made the area a tourist mecca, The City is also one of the major convention centers in the United States, Miscellaneous Data which reflects the growth of the economy of Dade County since 1950 is presented in the following table. DADE COUNTY, FLORIDA WATER ELECTRJC11TY : TELEPHONES Number Consumption K W H Number Motor Post Sales Tax of Millions of Sold Commercial Residential in Vehicle Office Collections Year Water Meters ''Gals. (000's) Customers Customers Service Registration Receipts (000's) 1950 59,613 18,081 780,295 19,233 144,902 200,687 222,839 $ 5,677,073 S 12,763 1955 77,637 26,070 1,714,338 23,919 220,003 325,853 377,093 9,868,686 22,622 1957 83,291 " 29,290 2,319,301 26,046 254,013 419,928 448,736 12,101,825 32,639 1960 86,918 32,440 3,344,041 28,993 288,987 516,715 492,999 17,396,609 41,666 1965 92,657 51,310 5,121,535 31,472 341,328 649,457 603,349 25,429,331 58,942 1966 94,516 45,957 5,676,151 31,937 354,300 689,937 633,402 27,091,324 63,703 1967 96,185 48,601 6,294,814 32,351 361,262 740,540 671,210 28,641,261 69,807 1968 97,170 50,127 7,153,631 35,296 383,455 792,654 730,922 34,553,865 99,703 1969 98,180 50,044 8,165,989 37,746 401,922 859,684 796,455 37,322,879 129,241 1970 100,035 55,879 9,134,181 39,452 419,957 918,131 823,442 39,404,520 140,227 1971 104,221 58,073 10,117,519 41,955 443,419 995,606 863,564 45,251,523 155,001 1972 105,166 59,558 11,237,948 43,882 466,814 1,092,960 925,881 51,304,014 178,565 1973 117,807 64,785 12,164,376 50,010 488,642 1,181,573 995,000 51,679,418 193,845 1974 120,936 69,020 12,162,021 52,594 501,040 1,216,761 1,009.855 59,889,081 233,487 1975 122,870 69,437 12,416,964 53,334 494,269 1,235,015 1,040,047 71,088,591 218,347 1976 126,500 70,770 12,388,600 55,200 511,900 1,251,390 1,200,212 78,807,661 224,801 1977 130,500 71,774 13,032,900 57,600 537,200 1,328,413 1,268,632 77,378,596 259,119 1978 145,000 72,409 13,060,000 59,500 546,000 1,368,634 1,081,224 99,873,395 298,386 Economic Society of South Florida rx.......... An aerial view of downtown Miami, including the Miamarina yacht basin. Principal Governmental Services Performed by the City of Miami The City's Fire Department, in addition to its traditional fire services, provides emergency medical and rescue services. The Department also provides training, enforcement of fire and building codes, and emergency communication services. The Police Department is the largest department of the City. In addition to law enforcement, it provides personnel training, developing of new information, computer systems, criminal investigations and improving relations between the Department and the community it serves. Other .services performed by the City are garbage collection; sanitary sewer, storm sewer, and highway construction; tourism, trade and commerce promotion; planning; and building and zoning inspection. Principal Facilities of the City The City maintains 87 parks having an area of 836 acres, and two golf courses. It operates and maintains the Orange Bowl Stadium; the Miami Baseball Stadium; four City -owned marina facilities providing 685 berthing facilities; the newly renovated Dinner. Key Exposition Building, and the Bayfront Park Auditorium. Capital Improvement Plan The 1978-1984 Capital Improvement Program of the City includes 175 projects totaling $243,704,000 in value. There has been an increase in programmed spending in the number of storm, sanitary sewer and street projects scheduled in the latter years of this program. In addition, the City has undertaken the construction of a Convention Center using the proceeds of its general obligation bonds in the principal amount of $4,500,000, which bonds were sold on April 10, 1969. The City contemplates using its revenue bonds to complete construction of the Convention Center and of an associated parking garage and connecting walkway. These revenue bonds will be secured by revenues derived from the Convention Center and the parking garage, including revenues derived from rent and other payments made pursuant to the provisions of a Lease and Agreement for Development with a developer of a hotel to be constructed through the use of air rights over part of the Convention Center, and by other revenues of the City exclusive of ad valorem tax revenues. Also, the City will receive as advance rent the sum of $2,500,000 plus certain earnings thereon from the University of Miami for space rented in the Convention Center as a conference center, Watson Island, 87 acres in size and located one mile from downtown Miami, is projected as a planned development which will include entertainment, cultural, marine, shopping and dining facilities. The Downtown Government Center is a 30-acre joint development among the City, State and Federal governments. Facilities at the Center include the City of Miami Administration building, presently being constructed, a County Administration building, a County Court building, a Central Library, a City Parking Garage and four State buildings. Space is reserved for future construction of a Federal Building, Employee Relations The City has negotiated multiple -year agreements with all its labor organizations. Three labor agreements expire on October 1, 1981 — one with the Fraternal Order of Police, Lodge No. 20; one with the International Association of Firefighters, Local 587; and the other with the American Federation of State, County & Municipal Employees, Local No. 1907. The Sanitation Employees Association and the City, have recently terminating October 1, 1982. entered into a 3-year'agreenient' All of these agreements provide for increases not to exceed 6% on the second and third years of the contract, and there are neither cost -of -living escalator clauses or any economic reopener clauses. Further negotiations are precluded by a waiver clause (the waiver precludes reopening the contract), and all the employee organizations enumerated above specifically waived the right to request negotiations until the termination of these contracts. The City Manager's Office has a professional labor relations staff dedicated solely to negotiations and contract administration during the term of these agreements. `. DEBT STRUCTURE Procedure for Tax Levy and Tax Collection Real and personal property valuations are determined each year as of January 1 by the Dade County Assessor of Property at just value. A notice is mailed to each property owner indicating the property valuation. The property owner has the right to file an appeal with the Dade County Clerk of the Board of Tax Adjustment if such property valuation as determined by the property appraiser is inconsistent with that as determined by the property owner. All appeals of such valuation determinations are heard by the Dade County Board of Equalization. The Board certifies the assessment roll upon completion of the hearing of all appeals so filed. All taxes are due and payable on November 1 of each year or as soon thereafter as the assessment roll is certified and delivered to the Dade County Tax Collector. The Dade County Tax Collector mails to each taxpayer on the assessment roll a notice of the taxes levied. Taxes may be paid upon receipt of such notice, with discounts at the rate of four percent if paid in the month of November, three percent if paid in the month of December, two percent if paid in the month of January and one percent if paid in the month of February. Taxes paid during the month of March are without discount. All unpaid taxes on real and personal property become delinquent on April 1 of the calendar year following the year in which the taxes were levied. All tax collections for the City are delivered to the City of Miami by Dade County. The delinquent real property taxes bear interest at the rate of eighteen percent per year from April 1 until a tax sale certificate is sold at auction from which time the interest rate shall be as bid by the buyer of the certificate. 15 - • A powerboat regatta at the City of Miami Marine Stadium. he Vita Course stations in the City of 1lam, Kennedy Park. kn Artist's rendition of the Convention Center presently under con- struction in downtown Nliami. The new 35 acre City of Miami Bicentennial Park. The annual Orange Bowi football game at the City of Miami Orange Bowi stadium. 16 TEN LARGEST TAXPAYERS IN THE CITY OF MIAMI Name of Taxpayer Southern Bell Telephone & Telegraph Co. Florida Power & Light Co, Equit. Life Assur. International Business Machine Co, First Federal Savings & Loan Co, Miami Herald One Biscayne Assoc, Massachusetts Mutual Ins. C St. Joe Paper Co, New York Life Insurance Co., Total Assessed Valuation of top 10.Taxpayers, which is of total 1978 Assessed" Valuation'` Nature of Activity Telephone Utility Electrical Utility Retail Sales Retail Sales Bank Newspaper Office Building Insurance Paper Manufacturer Insurance 13,67% COMPUTATION OF DEBT SERVICE TAX RATE Fiscal Year Ended September 30, 1979 Total principal & interest requirements ........ Less; Appropriation from prior year's fund balance* . Amount of appropriation required Plus costs and expenses of administration ..... . Total amount required $4.487 tax rate, per thousand dollars 95%collection produces . :, $17,180,470 *Amount available for meeting principal'. and . interest 'requirements derived from special assessments, investment earnings and miscellaneous sources. a $17,735,693. 653,223 $17,082,470 98,000 $17,180,470 1978 Assessed Value $220,145,510 69,765,376 65,485,195 39,081,036 37,348,613 34,022,494 25,609,191 20,685,541 20,523,946 18,486,532 $551,153,434 17 Fiscal fear Ending 9.3(1 City of Miami, Florida Principal and Interest Requirements on all outstanding bonds, including the $6,750,000 of Bonds Outstanding Bonds Principal Interest 'Total 1980 $ 8,299,000 $ 7,721,879 $ 16,020,879 1981 11,411,000 7,075,542 18,486,542 1982 11,240,000 6,419,690 17,659,690 1983 10,089,000 5,785,011 15,874,011 1984 9,651,000 5,184,552 14,835,552 1985 9,647,00(1 4,613,191 14,260,191 1986 9,527,000 4,066,794 13,593,794 1987 8,733,000 3,587,788 12,320,788 1988 8,340,000 3,158,207 11,498,207 1989 7,241,000 2,759,615 10,000,615 1990 7,057,000 2,419,325 9.476,325 1991 6,385,000 2,097,587 8,482,587 1992 5,700,000 1,782,884 7,482,884 1993 5,320,000 1,486,685 6,806,685 1994 5,01(1,000 1,215,853 6,225,853 19955,065,000 986,318 6,051,318 1996 4,545,000 775,506 5,320,506 1997 4,305,00(1 576,330 4,881.330 1998 3,135,0(10 380,965 3,515,965 1999 2,010,000 255,835 2,265,835 20(8) 970,000 181,481 1,151,481 2001 1,000,0(10 126,743 1,126,743 2002 795,000 70,356 865,356 2(8)3 555,000 30.100 585,100 2(04 75,0(0) 17.500 92,500 2005 95,000 14,100 109,100 2006 95,000 10,300 105,300 2007 100,000 6.400 106,400 20(18 110,000 2,2(10 112,200 $146,505,0(81 $62,808,737 $209,313,737 $6,750,000 $4,643,400 $11,393,400 $220,707,137 $13,193,911 $207,513,226 Note: Interest on the $6,750,000 Bonds being offered for sale has been calculated at the rate of 6% for purposes of illustration. Total Total Less Requirements Principal Self for and Supporting General This $6,750,000Issue Interest Debt Obligation Principal Interest' Total Requirements Requirements Bonds 202,500 $ 16,223,379 $ 1,046,649 $ 15,176,730 405,000 18,891,542 1,042,602 17,848,940 710,550 18,370,240 849,527 17,520,713 696,500 16,570,511 67 2, 327 15,898,184 682,150 15,517,702 654,955 14,862,747 662,650 14,922,841 651,512 14,271,329 648,000 14,241,794 646,432 13,595,362 628,200 12,948,988 641,785 12,307,203 608,400 12,106,607 637,320 11,469,287 593,450 10,594,065 483,837 10,110,228 578,200 10,054,525 482,370 9,572,155 567,500 9,050,087 458,115 8,591,972 551,350 8,034,234 461,105 7,573,129 534,900 7,341,585 458,325 6,883,260 518,150 6,744,003 460,075 6,283,928 501,100 6,552,418 460,925 6,091,493 493,450 5,813,956 464,150 5,349,806 475,200 5,356,530 466,275 4,890,255 461,500 3,977,465 472,300 3,505,165 447,200 2,713,035 471,950 2,241,085 427,450 1,578,931 475,500 1,103,431 1,126,743 482,675 644,068 865,356 253,200 612,156 585,100 585,100 92,500 92,500 109,100 109,100 105,300 105,300 106,400 106,400 112,200 112,200 $ 202,500 $ 405,000 $ 315,000 395,550 320,000 376,500 325,000 357,150 325,000 337,650 330,000 318,000 330,000 298,200 330,000 278,400 335,000 258,450 340,000 238,200 350,000 217,500 355,000 196,350 360,000 174,900 365,000 153,150 370,000 131,100 385,000 108,450 390,000 85,200 400,000 61,500 410,000 37,200 415,000 12,450 iuiuiii GENERAL OBLIGATION BONDS OUTSTANDING ON SEPTEMBER 30, 1979. General Obligation Issue Fire Fighting Facilities Coconut Grove Incinerator Refunding Sewage Disposal Bonds Dinner Key Marina Land Acquisition Bonds Bayfront Recreational Facilities Recreational Facilities Storm Sewer Improvements Recreational Facilities Storm Sewer Improvement Sanitary Sewer Convention Center Sanitary Sewer Fire Fighting Facilities Police Headquarters Pollution Control Facilities Sanitary Sewers Highway Improvement Storm Sewer Improvement Highway Improvement Sanitary Sewer Fire Fighting Sanitary Sewer Police Headquarters Storm Sewer Improvements Street & Highway Improvements Public Pk & Recreation Facilities Storm Sewer Improvements Police Headquarters Storm Sewer Improvements Sanitary Sewer Improvements Police Headquarters Street & Highway Improvements Sanitary Sewer Bonds Police Headquarters Sanitary Sewer Street & Highway Improvements Fire Fighting Police Headquarters Storm Sewer Improvement Fire Fighting Public Pk & Recreation Facilities Housing Street & Highway Improvements Sanitary Sewer Fire Fighting, Prevention & Rescue Storm Sewer Improvement Dated Find Maturity Year 3-1.-58 1988 3=1-58 1988 1-1-62 1990 6-1-65 1985 ' 6-1-65 1985 8-1-67 1987 8-1-67 1987 8-1-67 1987 7-1-68 1988 7-1-68 1988 7-1-68 1988 5-1-69 1989 5-1-69 1980 10-1-70 1990 10-1-70 1990 10-1-70 : 1990 10-1-701990 2-1-71 1982 2-1-71 1991 9-1-71 , 1991 - 9-1-71 1991 6-1-72 ` 1992 '6-1-72 1992 6-1-72 1992 6-1-72 1992 6-1-72 : 1992 1997 9-1-73 ' 1993 9-1-73 1993 3-1-75. 1995 3-1-75.` 1986 -3-1-75 1995 3-1-75 1986 10-I-75'- 1995 10- I"-75 1995 '5-1-77' 1997 5-1-77' :1988 5-1-77-r 1997 5-1-77 '1997 5-1-77"" . 1997 12-1-77 1998 12-1-77 2003 12-1-77 2008 �12-1-78 1998 12-1-78!; 1998 12-1-78 ..1998 12-1-78' 1998 Amount Issued $ 850,000 1,100,000 14,565,000 2,370,000 700,000 2,250,000 1,000,000 1,000,000 1,500,000 1,500,000 5,000,000 4,500,000 3,000,000 1,000,000 1,500,000 3,000,000 7,000,000 3,000,000 1,500,000 2,000,000 5,000,000 1,100,000 5,000,000 1,500,000 3,000,000 2,000,000 28,350,000 2,000,000 4,000,000 3,000,000 5,000,000 8,000,000 3,000,000 5,000,000 2,000,000 13,000,000 5,000,000 5,000,000 3,000,000 2,000,000 1,000,000 11,540,000 1,500,000 5,000,000 6,000,000 2,250,000 5,000,000 Amount Outstanding $ 370,000 485,000 6,490,000 745,000 210,000 930,000 400,000 400,000 720,000 720,000 1,050,000 2,350,000 300,000 560,000 860,000 1,720,000 2,440,000 900,000 945,000 1,230,000 2,235,000 760,000 2,450,000 1,020,000 2,040,000 1,070,000 21,260,000 1,475,000 2,950,000 2,520,000 3,500,000 6,710,000 2,100,000 3,935,000 1,680,000 12.260,000 4,500,000 4,735,000 2,855,000 1,895,000 1,000,000 11,540,000 1,500,000 5,000,000 6,000,000 2,250,000 5,000,000 $138,065,000 REVENUE AND SPECIAL OBLIGATION BONDS OUTSTANDING ON SEPTEMBER 30, 1979 Special Obligation and Revenue Bond Issue incinerator Revenue Utilities Service Tax Series A Orange Bowl Special Obligation Orange Bowl Warehouse Revenue Orange Bowl Warehouse Revenue Off Street Parking Revenue Series A&B Series C Fiscal Year Ending Sept. 30 1980 $ 14,974,230.$ 17,443,940 16,810,163 15,201,684 14,180,597 13,608,679 12,947,362 11,679,003 10,860,887 9,516,778 8,993,955 8,024,472 7,021,779 6,348,360 5,765,778 5,590,393 4,856,356 4,415,055 3,043,665 1,793,885 675,981 644,068 612,156 585,100 92,500 109,100 105,300 106,400 112,200 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 i Inal Date of MYe�rty issue 7-1-51 1981 2-1-63 1988 3-1-67. 1982 12-1-69 1982 12-20-74 1989 4-1-66 1994 4-1-73 2002 Amount Issued 3,330,000 3,125,000 1,900,000 105,000 225,000 4,800,000 3,150,000 Total General Obligation Bonded Indebtedness Principal and Interest September 30, 1979, exclusive of the Bonds offered hereunder Bayfront Coconut Dinner Requirements Recreation Grove Convention Key Land Principal Interest Facilities Incinerator Center Marina Firefighting Acquisition 7,650,000 $ 7,324,230 $I20,000 $ 45,000 $ 235,000 $125,000 $ 405,00p $ 35,000 10,740,000 6,703,940 120,000 50,000 235,000 125,000 585,000 35,000 10,735,000 6,075,163 115,000 50,000 235,000 125,000 585,000 35,000 9,740,000 5,461,684 115,000 50,000 235,000 125,000 580,000 35,000 9,305,000 4,875,597 115,000 55,000 235,000 125,000 585,000 35,000 9,290,000 4,318,679 115,000 55,000 235,000 120,000 585,000 35,000 9,160,000 3,787,362 115,000 60,000 235,000 590,000 8,355,000 3,324,003 115,000 60,000 235,000 590,000 7,950,000 2,910,887 60,000 235,000 590,000 6,990,000 2,526,778 235,000 550,000 6,795,000 2,198,955 540,000 6,135,000 1,889,472 535,000 5,435,000 1,586,779 485,000 5,045,000 1,303,360 435,000 4,720,000 1,045,778 435,000 4,760,000 830,393. 435,000 4,220,000 636,356 435,000 3,960,000 455,055 435,000 2,765,000 278,665 175,000 1,620,000 173,885 120,000 555,000 120,981 555,000 89,068 555,000 57,156 555,000 30,100 75,000 17,500 95,000 14,100 95,000 10,300 100,000 6,400 110,000 2,200 Amount Outstanding 346,000 1,350,000 485,000 44,000 185,000 2,295,000 3,105,000 $8,440,000 $196,119,826 $138,065,000 $58,054,826 20 $9,675,000 $210_000 General Obligation Bonded Indebtedness Principal and Interest September 30,1979, exclusive of the Bonds offered hereunder Fiscal Year Refunding Public Park & Ending . Recreation Sewage Sanitary Storm Highway Police Pollution Recreational Sept. 30 Facilities Disposal Sewers Sewers Improvements Headquarters Control Facilities Housing 1980 $ 130,000 $ 590,000 $ 2,480,000 $ 730,000 $ 1,365,000 $ 870,000 $ $ 500,000 $ 20,000 1981 130,000 590,000 3,430,000 880,000 1,660,000 1,055,000 160,000 1,665,000 20,000 1982 130,000 590,000 3,425,000 885,000 1,660,000 1,055,000 160,000 1,665,000 20,000 1983 130,000 590,000 2,735,000 900,000 1,350,000 1,050,000 160,000 1,665,000 20,000 1984 130,0(10 590,000 2,390,000 910,000 1,250,000 1,045,000 155,000 1,665,000 20,000 1985 130,000 590,000 2,370,000 915,000 1,250,000 1,040,000 155,000 1,665,000 30,000 1986 130,000 590,000 2,360,000 940,000 1,245,000 1,045,000 155,000 1,665,000 30,000 1987 130,0(10 590,000 1,850,000 950,000 945,000 1.040,000 155,000 1,665,000 30,000 1988 80,000 590,000 1,655,000 910,000 945,000 1.035,000 155,000 1,665,000 30,000 1989 590,000 1,440,000 840,000 445,000 1,1140,000 155,000 1,665,0W 30,000 1990 590,000 1,440,000 855,000 445,000 1,065,000 155,000 1,665,000 40,000 1991 1,435,000 870,000 370,000 1,065,000 155,000 1,665,000 40,000 1992 1,180,000 )105,000 270,000 990,000 1,665,000 40,000 1993 1,100,000 665,000 225,000 915,000 1,665,000 40,000 1994 1,105.000 575,000 225,000 675,000 1,665,000 40,000 1995 1,105,000 595,000 230,000 675,000 1,665,000 55,000 1996 1,115,000 460,000 230,000 260,000 1,665,000 55,000 1997 935,000 485,000 230,000 155,000 1,665,000 55,000 1998 310,000 400,000 230,000 1,595,000 55,000 1999 310,000 425,000 230,000 480,000 55,000 2000 480,000 75,000 2001 480,000 75,000 2002 480,000 75,000 • 2003 • 480,000 75,000 2004 75,000 2W5 95,000 2006 95,000 2007 100.000 2008 110,000 $32,800,000 $1,500,000 REVENUE BONDS AND SPECIAL OBLIGATION BONDS' PRINCIPAL AND INTEREST MATURITIES as of Sep Fiscal Year Ending Orange howl Special Obligation Sept.31) Principal Interest Total 1980 155,000 19,885 174,885 1981 165,000 13,530 178,530 1982 165,000 6,765 171,765 $485,000 $40,180 $525,180 Incinerator Principal Interest Total 173,000 12,975 185,975 173,000 6,488 179,488 $346,000 $19,463 $365,463 Fiscal Parking Facilities fear Parking Facilities Revenue Series C Utilities Service Tax Bonds Revenue Bonds Ending Refunding & Revenue Ser, A & B Sept, 30 Principal Interest Total Principal Interest Total principal Interest Total rinc pa Interest Total 1981) 140,000 136,050 276,050 10,000 172,125 182,125 150,0W 42,412 192,412 21,000 14,202 35,202 5 5 I SU,WU 37,537 187,537 23,000 12,772 35,172 1981 150,000 129,750 279,750 10,000 171,525 181,.2. 1982 155,000 123,OIX) 278,000 10,000 170,925 180,925 150,000 32,625 182,625 25,000 11,212 36,212 1883 16U,(HH) 115,870 275,870 10,000 170,325 180,325 I50,oW 27,675 177,675 29,OW 9,457 38,457 19114 170,000 108,510 278,510 10,000 169,725 179.725 ISU,oW 22,725 172,725 16,000 7,995 23,995 17,775 167,775 17,000 1985 175,IXH) IOQG90 275,690 15,000 169,125 184,125 168,225 183,225 150,000 150,000 12,750 162,750 17,000 5,817 22 817 c 277,640 15,000 1986 185,IX)U �_,640 20,000167,325 187,325 I SU,000 7,650 157,650 18,000 4,680 22,680 1987 190,000 84,130 74,130 1988 200,IXH) 75,2(H) 275,200 20,000 166,125 186,125 150,000 2,550 152,550 20,000 3,445 23,445 2 20,000 164,925 184,925 21,000 2,112 23,112 1989 10,000 65,8(H) 275,800 22,000 715 22,715 1990 220,000 55,930 275,930 20,000 163,725 183,725 1991 230,000 45,590 275,590 20,000 162,525 182,525 1992 240,00() 34,780 274,780 25,000 161,325 186,325 1993 250,000 23,500 273,5(0 25,000 159,825 184,825 1994 250,000 11,750 261,750 40,000 158,325 198,325 1995 305,000 155,925 460.925 1996 325,000 139,150 464,150 1997 345,000 121,275 466,275 1998 370,000 102,300 472,300 1999 390,000 81,950 471,950 2000 415,000 60,500 475,500 21811 445,000 37,675 482,675 2002 240,000 13,200 253,200 $2,295,000 $1,203,190 $4,128,190 $3,105,000 $3,208,050 56,313,050 $1,350,000 $203,699 $1,553,699 $229,000 $79,329 S308,329 Since the above facilities have been financed with revenue bonds, there is good authority for the City's practice of not providing depreciation on property, plant and equipment which is financed with revenue bonds. Orange Bowl Warehouse STATEMENT OF DIRECT AND OVERLAPPING DEBT Name Net Debt City of Miami, September 30, 1979 , , . , .. $138,065,000 Dade County, June 30, 1979 . , 416,280,000 $554,345,000 Percentage Applicable to City's Share City* of Debt 100,00% $138,065,000 22,39 93,205,092 $231,270,092 *Percentage applicable to City for Dade County based on January 1, 1979 assessed valuation. BONDS AUTHORIZED BUT NOT ISSUED Of the $81,475,000 bonds approved by the voters on June 30, 1970 all of such bonds have been issued except $7,375,000 of Streets and Highway Improvement Bonds and $4,000,000 of Pollution Control Bonds. The $35,000,000 bonds approved by the voters on September 28, 1976 herein listed and the amounts of such bonds unissued are as follows: Sanitary Fire Sewers Fighting Authorized $25,000,000 $10,000,000 Previously Issued 16,000,000 8,250,000 Proposed Issue 3,000,000 1,750,000 Balance Unissued 6,000,000 -0- At an election held on March 7, 1978, the electors approved the issuance of $I5,000,000 of Storm Sewer Improvement Bonds. $5,000,000 of said Storm Sewer Improvement Bonds were previously issued. $2,000,000 are offered hereunder. The principal amounts issued and unissued of the $25,000,000 General Obligation Housing Bonds approved by the electors on. March 9, 1976 and validated on February 17, 1977, are as follows: Previously Issued $ 1,500,000 Unissued ................. 23,500,000 Total Authorized .. ...... $25,000,000 RATIO OF NET DEBT TO ASSESSED VALUATION for fiscal year ended September 30, 1979 Inclusive of Bonds offered hereunder. 1978 Net Assessed Valuation* $4,030�,994 1978 Assessed Value* $3,415,306,566 Real Estate 806,793,605 Personal Property; 6,793,65 Railroad Property 4,227,175,027 Total196,708,033 Less Homestead Exemptions . , .. $4,036,78,033 Total 1978 Net Assessed Valuation .. Total Debt (including the $6,750,000 Bonds) $ (g4,i3 f 155,000 General Obligation Bonds ........... • Incinerator Revenue Bonds 346,0001,36,000 Utility Service Tax Bonds ................. Orange Bowl Revenue Bonds ...... • • 485,000285,000 Orange Bowl Warehouse Rental Bonds Off Street Parking Revenue Bonds ...... 6,030,000 $ 153,255,000 Less: self-supporting bonds including bonds payable from special assessments NETDEBT ........................ Ratio Net Debt, including the Bonds, to Net Assessed Valuation ....... 1979 Estimated Population - 345,000 Per Capita Assessed Valuation — $11,682.52 Per Capita Net Debt — $ 419.75 *Latest assessment valuation. RATIO OF NET GENERAL BONDED DEBT TO NET ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Fiscal Year Ended Assessed Homestead September 30 Population' Value Exemption 1979 345,000 4,227,175,02'7 196,708,033 1978 345,000 4,023,847,098 195,664,076 1977 342,000 3,938,270,393 198,558,652 1976 340,000 3,796,881,240 199,947,752 1975 338,000 2,541,205,760 196,797,718 1974 336,000 2,701,654,390 198,186,762 1973 334,000 2,424,469,847 201,750,942 1972 334,859 2,282,551,069 202,900,985 1971 331,000 2,107,791,481 203, 825, 857 1970 328,000 1,742,403,180 203,903,065 1969 325,000 1,711,327,596 204,653,075 1968 320,000 $1,638,177,177 $205,676,100 Net Assessed Value 4,030,466,994 3,828,183,022 3,739,711,741 3,596,933,488 3,344,408,042 2,503,467,628 2,222,718,905 2,079,650,084 1,903,965,624 1,538,500,115 1,506,674,521 $1,432,501,077 *Estimated on basis of added electric and water connections and those years for which a Federal census was available. **This figure for Fiscal 1978 is based upon the inclusion of the $6,750,000 Bonds. ***This percentage for Fiscal 1978 is based upon the inclusion of the $6,750,000 Bonds. Bonded Debt Ratio of Bonded Debt to Net Assessed Value Bonded Debt Per Capita 144,815,000" 3.59%*** 419.75" 129,675,000 3.39 375.87 103,826,694 2.78 303,59 94,523,990 2,63 278.01 83,933,263 2.51 248.32 86,844,273 3.46 258.47 51,164,790 2.31 153,19 48,341,208 2.32 144.30 33,154,654 1,74 100.16 35,681,842 2,32 100,51 30,790,295 2,04 87.73 $ 27,666,934 1.93 79.05 new dwelling units constructed, except in STATEMENT OF ASSESSED VALUATION AND LEGAL DEBT MARGIN Fiscal year ended September 30, 1979 AssessedValuations Total Assessed Valuation Homestead Exempt Valuation Net Assessed. Valuation ........ • . Debt Limitation. for Bonds (15% of $4,030,466,994)* Present Debt Applicable to Debt Limitation:: General Bonded Debt** Less: Sinking Fund . Legal Debt Margin..................................... $4,227 175,027,`. i 96,708,033 $4,030,466,994 $604,570,049 135,965,314 $468,604,735 *Section 58 of the City Charter limits voted bonds of the City to 15% of the assessed valuation of all real and personal property within the city limits as shown by the last preceding assessment roll of the City and provides that bonds for street, sewer, sidewalk and other public improvements which are paid from special assessments, shall not be subject to such limitation of amount nor be considered when computing the amount of general obligation bonds that may be issued, **Exclusive of the $6,750,000, Bonds. TAX DATA Fiscal Year Ended September 30, 1979 Assessed Value Total Net Assessed Value Tax Rates 1978-79 (Dollars per Thousand of Assessed Value) Ad Valorem Funds Tax Miliage Tax Ley General Operations** Debt Service Total Millage & Ad Valorem Tax Levy *See page 9 for breakdown of assessed value. **Ten Mill Limit 44030,466,994* 10,000.. $40,304,670 4.487 18,084,705 14.487 $58,389,375 RECORD OF TAX COLLECTIONS Outstanding Total ' Total Delinquent Fiscal Adjusted Collection Per Cent Collection Collections Taxes Year Tax of Current of of Total As Percent Outstanding As Percent Ended'. Levy Year's Levy Delinquent Tax of Current Delinquent of Current Sept, 30 All Funds 'taxes Collected Taxes Collections Levy Taxes Levy 1978 50,532,016 40,095,263 97. I6% 523,373 49,618,636 98.19% 3,195,919 6.49% 1977 43,854,070 42,969,232 97.99 650,775 43,620,007 99.47 2,282,539 5.20 1976 ' 38,508,055 37,280,660 96.81 633,860 37,914,520 98.46 2,048,476 5.32 1975 34,923,276 33,833,693 96,88 1,583,714 35,417,407 101.41 1,454,941 4.17 1974 " 33,637,575 32,736,227 97.32 881,853 33,618,080 99.94 1,949,072 5.79 1973 28,106,081 27,448,865 97.66 908,385 28,357,250 100.89 1,929,577 6.87 1972 28,809,445 29,043,734 97.43 277,691 29,321,425 99.36 2,180,746 7.32 1971.27,891,796 27,332,485 97.99 173,669 27,506,154 98.62 1,692,726 6.07 1970. 24,313,151 23,771,100 97.77 196,137 23,967,237 98.58 1,307,084 5.38 1969 23,678,971 23,246,912 9818 183,702 23,430,614 98.95 961,170 4.06 *Rates of delinquencies are based upon the cumulative amount of delinquent taxes for past years. Estimate of Ad Valorem Taxes levied e for the City of Miami County and the onr the average home ($24,000 assessed value for the 1978 tax year, exclusive Average Total Tax .. . , . ,, ""' ' "' Specific Purposes 7.79 9,84 .......... ....... Administration . • ... 12,73 16.08 Public Works.............. ,,,,,,,,,,,,,, 24.51 30.96 ,.. ..., ., ., .,.... Sanitation ......... 10.45 13.20 Parks and Recreation • , .. . „ , . "' . • .. 0.4< 96.00 Police and Fire Protection .,.. ,. .,,,,........ Miscellaneous ....... 20,71 26.16 Pensions. ' ' ' 29.2fi" 36.96 ..... ... • • • • „ Street Lighting .... • • . 5,$9 7.44 "' Publicity and Tourism . , , . 2.66 3.36 Debt Retirement........... ...... ............ . .,.. 85.25 107.69 Tax Limitation For Municipal Purposes Excludes Debt Service Article 7, Section 8 of the Florida Constitution provides that municipalities in the State may not levy ad valorem taxes in excess of ten mills upon the assessed value of real estate and tangible personal property having a situs within the taxing city, when the tax is being imposed to generate monies for municipal purposes. Taxes levied for the payment of bonds are not, however, limited by this ten mill maximum. For the fiscal years 1977-78 and 1978-79 the City's tax rate, exclusive of that attributable to bonded indebtedness, reached the ten mill maximum. Consequently, while the City is not limited in the taxes which it may impose to discharge its bonded indebtedness, including the Bonds, it may not generate additional revenues to meet increased annual operating expenses or to finance new construction by increasing the tax rate. Such additional revenues can only result from an increase in the aggregate assessed value of taxable real and tangible personal property situated within the City's borders. S24,000 S24,000 (WilhS5,000 (Without Home - Homestead Exemption) stead Exemption) $275.25 $347.69 ASSESSED VALUE OF ALL TAXABLE PROPERTY Fiscal Years Ended September 30, Fiscal . Real Personal Gross Homestead Net Year Properly Properly Total Exemptions Total 1979 3,420,381,422 .806,793,605 4,227,175,027 196,708,033 4,030,466,994 1978 3,279,667,236 744,179,862 4,023,847,098 195,664,076 3,828,183,022 1977 3,256,815,414 681,454,979 3,938,270,393 198,558,652 3,739,711,741 1976 3,123,657,035 672,697,054 3,796,354,089 199,420,601 3,596,933,488 1975 2,851,309,996 689,895,764 3,541,205,76(1 195,797,718 3,344,408,042 1974 2,168,158,819 533,495,571 2,701,654,390 198,186,763 2,503,467,628 1973 1,959,720,765 464,749,081 2,424,469,847 201,750,942 2,222,718,905 1972 1,866,182,202 416,368,867 2,282,551,069 202,900,985 2,079,650,084 1971 1,727,513,398 380,278,083 2,107,791,481 203,825,857 1,903,965,824 1970 1,417,823,945 324,579,235 1,742,403,180 203,903,065 1,538,500,115 Tax Rate Per $1,000 of Assessed Valuations Fiscal Years Ended September 30, Fiscal General Lighting Hydrant Year Operating City Service Publicity I'ensions 1979 10.000 -0- -0- -0- -0- I978*** 10.000 -0- -0- -0- 1977 5.683 .541 -0- .239 3.129 1976 5.553 .374 -0- .171 2,521': 1975 4.959 .242 -0- .304 3.064 1974 5.921 .503 -0- .439 2,892 1973 6.152 .665 0- .404 2.779 1972 8.658 .480 -0-* .420 2.661 1971 : 9.180 - .523 .114 .342 2.482 1970 9.418 .511 .174 > .405 2.400 eht Libraries Service -0- 4,487 0- 3,200 .2311 -0- 2.311 -0- 2.311 -0- 3.781. -0- 2.673 304**:: 2,232 865 - 1.319 .972 1.882 *Hydrant service function became the responsibility of the Metropolitan Dade County Water Division of the Department of Water and Sewers effective October 1, 1971. **Operation of the Library System was transferred to Metropolitan Dade County effective November 1, Total 14.487 13,200 11.903 10.830 10,880 13.436 12.673 14.755 14.825 15,762 ***The 1977-78'Millage Ordinance consolidated the Lighting City, Publicity and Pensions into the General Fund. TAX LEVIES Fiscal Years Ended September 30, Fiscal General Lighting Hydrant fear Operating City Service Publicity Pensions 0 -0- -0- -0- 0- -0- -0- 893,791 11,701,558 -0- 615,076 9,067,869 .0- 1,016,700 10,247,266 -0- 1,099,022 7,240,029 -0- 897,978 6,176,935 -0-* 873,453 5,533,948 217,052 651,156 4,725,642 267,699 623,092 3,692,400 1979 40,304,670 0- 1978*** 38,281,830 -0- 1977 21,252,782 2,023,184 1976 19,973,772 1,345,253 1975 16,584,919 809,347 1974 14,572,685 1,259,244 1973 13,674,166 1,478,108 1972 18,005,510 998,232 1971 17,478,404 995,774 1970 14,489,594 786,173 *Hydrant service function became the responsibility of the iweuul,�.« of the Department of Water and Sewers effective October 1, 1971. **Operation of the Library System was transferred to Metropolitan Dade County effective November 1971. Debt Libraries Service Total 18,084,705 12,250,186 8,642,474 8,312,513 7,728,927 9,465,611 -0- 5,941,327 632,213** 4,641,778 1,646,930 2,511,330 1,495,422 2,895,457 58,389,375 50,532,016 44,513,789 39,314,483 36,387,159 33,636,591 28,168,516 30,685,236 28,226,290 24,249,838 ***The 1977-78 Millage Ordinance consolidated the Lighting City, Publicity •Fundy General Description of Financial Practices Dade County Water Division Pensions into the General The City Charter requires the City Manager to submit a budget estimate not later than one month before September 30 of each fiscal year. Each department prepares its own budget request for review by the City Manager, The City Commission holds public hearings on the budget plan and must adopt the budget not later than October 1. The City's budgetary funds (General, Special Revenue, and Debt Service Funds) follow the modified accrual basis of accounting, under which expenditures, other than interest on long-term debt, are recorded when the liability is incurred and revenues are recorded when received in cash unless susceptible to accrual, i.e„ measurable and available to finance the City's operations, or of a material amount and not received at the normal time of receipt. The accrual basis is utilized (with minor exceptions) by all other funds. The accounts, books, records and, financial transactions of the City are audited annually by a firm of independent, certified public accountants. The opinions of the outside certified public accountants are included in the Annual Reports of the Director of Finance. The tables hereinbelow set forth present certain financial information, respecting the City and evidence the financial capacity of the City respecting the payment of its obligations, including the Bonds. REVENUES AND EXPENDITURES GENERAL FUND SPECIAL TAX LEVY FUNDS and BOND AND INTEREST RETIREMENT FUNDS Fiscal Year Ended September 30 Revenue: Ad Valorem Taxes (Net) General Operating Special Tax Levies . ; . Debt Service ....... ,.:.. Other Income Operating ........... Debt Service . Operating and Debt Service, Fund Balance Expenditures: General Operations .. Special Tax Levy Fund . , Debt Service Principal and Interest Other 1979 Budget $ 42,902,628 16,186,390 19711 11,819,882 61,904,770 58,689,883 864,698 1,278,840 $122,272,628 $108,371,254> $104,807,398 $93,712,007 17,465,230 14,870,252 95,320 $122,272,628 $108,677,579 $ 20,515,729 $19,428,843 14,076,087 10, 702, 793 8,321,806 8,064,784 54,073,641. 46,827,489 238,496 3,576,608 $ 97,225,759 $88,600,517 $ 72,946,790 $67,308,499 15,959,621 11,410,663 13,516,195 437,473 $102,860,079 12,007,329 515,923 $91,242,414 Surplus or (Deficiency) of Revenue over Expenditures $ — $ (306,325) $ (5,634,320) $ (2,641,897)** * 1979 Budget consolidated the General Operating Budget and the Special Tax Levies Budget. **The deficiencies of revenue over expenditures. in 1978, 1977 and. 1976 were offset by fund balance appropriations. All 1978, 1977 and 1976 debt service payments were met as scheduled. REVENUE STRUCTURE The following is a description of the City's revenue structure. See Appendix A for a detailed statement of revenues for the fiscal year ended September 30, 1978, General and Special Tax Levy Funds Ad Valorem Taxes — Described elsewhere in this Official Statement, (Business License & Permits — The City levies a license tax for business privilege licenses which is collected by the City's Treasury Management Division, License taxes vary according to the type of business, The exception to this are the contractors' licenses, which are collected only by the Dade County Tax Collector. There is a set contractor's fee for all contractors within the County. After collection, Dade County returns to the cities its pro rata share of revenue collected. The pro rata share due each City de- pends on the number of contractors doing business within each City's limits. Utilities Service Tax — The City imposes a 10% tax on each purchase of electricity, metered gas, bottle gas, water and local telephone and telegraph services. Revenue is pledged for debt service on Utilities Ser- vice Tax bonds. The excess over the debt service reverts to the general fund. Federal Revenue Sharing — The revenues derived from the Federal government are appropriated by the Commission for various social service programs throughout the City as well as the City's improvements to the fire rescue service, recreation programs and the continuation of the City's pay plan. The City's receipts', of federal revenue sharing funds since fiscal year ended September 30, 1973 are as follows: Federal Revenue Sharing Receipts Fiscal' Year Ended September 30 1979* 1978 1977 1976 1975 1974 1973 Total receivedto date . *Budgeted $ 7,993,394 8,351,251 8,893,709 8,775,313 8,935,551 8,075,539 10,360,577 $53,969,117 State Revenue Sharing - The revenues distributed to the municipalities by the State of Florida under the. State's revenue sharing program are derived from a percentage of its collection of the State cigarette tax, the State motor fuel tax, and the State road tax. The Cityhas received the following revenue sharing funds from the State: Fiscal. Year Ended September 30 1979* 1978 1977 1976 32 $11,194,988 11,005,477 11,070,719 10,880,405 Fines and Forfeitures — The City receives a pro rata share of fine and forfeiture revenue from Dade County, Since Fiscal 1976 the City has received the following amounts from the County: FhicrlYear Ended September 30 1979* 1978 1977 1976 *Budgeted $ 945,000 1,299,509 1,125,302 1,162,587 Intergovernmental — There are five intergovernmental funds that are self-supporting because their revenues are derived from charges for services to other City Departments, These funds are City Garage Fund: For purchases and maintenance of all heavy equipment used by the City. Motor Pool Fund: For purchases and maintenance of the automobile fleet, Maintenance Property Fund: For regular building maintenance, and a limited amount of building alterations and additions, Print Shop Fund: For all of the City's printing needs. Stationery Stock Fund: For purchases and storing of office supply items consumed in quantity in the City's operations. Enterprise Funds — Monies for these funds are generated by self-supporting activities which render services on a user charge basis to the general public. These activities include operation of the Orange Bowl Stadium, the Marine Stadium, the Miami Baseball Stadium, various marinas, Dinner Key Auditorium, golf ranges, and warehouse property in which floats for the annual Orange Bowl parade are built and stored. City Pension Funds The City has two separate pension funds, the Retirement System (Police and Firemen) which went into effect on February I, 1940 (the "System" or "Retirement System") and the Retirement Plan (General Employees) which went into effect on July 1, 1956 (the "Plan" or "Retirement Plan"). The actuary for the Retirement Plan is E. H. Friend & Co., Washington, D.C. For the Retirement System, the actuary is. Alexander & Alexander, Atlanta, Georgia. With respect to the System and Plan, the principal actuarial assumptions are: (1) As to funding method: System —Entry Age Normal Cost Method with Frozen Initial Liability modification. Plan —Entry Age Normal Cost Method, modified to result in level funding by City as a percentage of payroll, taking into account lower City costs for employees hired after October 1, 1974. (2) As to interest rate: System and Plan-7% (3) As to assets: System and Plan —Market Value taken into account to some degree (5-year average) (4) As to retirement age: The System and Plan have adopted, as of October 31, 1979, the use of probabilities by age, rather than a single retirement assumption. Prior to October 31, 1979, the system used age 53 and the Plan used age 62. Membership in the System and Plan is compulsoryfor classified employees, optional for unclassified employees and not open to temporary employees. The City's contribution is determined annually by the actuaries, The two actuaries determine pension benefits to reflect cost of living adjustments for all retirees. Also, they calculate separate cost studies whenever new benefits are being considered. Through December 1976, the Retirement System and Plan were reported on a calendar year basis, The City's required contribution was made on a fiscal year basis, commencing October 1st. Subsequent to January 1977, the Retirement System and Plan began reporting on a fiscal year basis. The following table sets forth in summary form certain essential data respecting both the Retirement Plan and the Retirement System for the calendar years 1973 through 1976 inclusive, and for the fiscal year. ending September 30, 1977 and 1978: The unfunded liability reflected was determined upon the basis of data as of January 1st of each year. The year 1979-1980, the unfunded liablity was determined with data as of January 1,:1979 for the System, and October I, 1978 for the Plan. CITY PENSION FUNDS FINANCIAL DATA FOR PENSION PLANS Fiscal fear Ending September 30, 1978 ***MiamiEmployees' l etirementSystem ***Miami Lniployces',Retirement Plan.;. September 30, 1977** Miami Employees'. Retirement, System Miami Employees' Retirement Plan Total Calendar Year Ending December 31, 1976 Miami Employees' Retirement System $ 6,527,501 $ 90,554,826 $4,876,775 $2,339,785. $2,974,713 Miami Employees' Retirement Plan...... $ 3,097,787 $ 54,652,564 $4,706,876 $2,563,735 $2,215,597 Total . ...............• .......... $ 9,625,288 $145,207.390 $9,583,651 $4,903,520 $5,190,310 December 31, 1975 Miami Employees' Retirement System .. $ 5,184,668 $ 89,276,761 $4,468,664 $2,192,304 $2,555,907 Miami Employees' Retirement Plan $ 2,936,983 $ 56,203,346 $3,862,404 $2,463,447 $2,018,482 Total t .......''.......:......... $ 8,121,651 $145,480,107 $8,331,068 $4,655,751 $4,574,389 December 31, 1974 Miami Employees' Retirement System .. $ 4,271,823 $ 99,000,000 $4,483,326 $2,187,051 Miami Employees' Retirement Plan $ ` 1,786,752 $2,667,295 $2,027,594 Total :.................. $ 6,058,575 $ 99,000,000 $7,150,621 $4,214,645 $4,571,531 City's Benefits Pmts. Contribution Unfunded including (Accrued Liability Withd •als Accrued Employee Contribution Interest Earnings* $10,400,013 $ 81,000,000 $6,364,922 $2,346,232 $3,007,515 $ 3,309,064 $ 56,000,000 $6,198,957 $2,462,769 $1,885,234 $13,709,077 $137,000,000 $12,563,879 $4,809,001 4,892,749 $ 6,229,299 $ 81,177,566 $4,182,323 $1,791,842 $ 2,465,716 $ 46,290,391 $4,377,429 $1,888,139 $ 8,695,015 $127,467,957 $8,559,752 $3,679,981 $3,033,058 $2,344,190 $5,377,248 S4,571,531 December 31, 1973 Miami Employee Retirement System $ 2,800,408 $ 65,000,000 $3,914,596 $1,789,515 S3,212,809 Miami Employees' Retirement Plan $_1,842,092 $2,749,837 $1,705,526 Total "........................... $ 4,642,500 $ 65,000,000 $6,664,433 $3,495,041 $3,212,809 *Earnings for Plan & System transferred to Plan.: **For the nine months thereafter. ***Figures adjusted to include Cost • were combined prior to _ 1975. In 1975 all General Employees were ended September 30, 1977. The fiscal year was changed to end September 30, of Living increase to retirees. RISK MANAGEMENT It became apparent through past experience that measures had to be taken to halt the spiraling costs of insurance premiums. A charter amendment was successfully voted on by the electorate in 1971 (7,964 for, 4,687 against), allowing the City to set up a Self -Insurance and Insurance Trust Fund. The City Commission created, by ordinance, a Board of Trustees composed of the City Manager, the Director of Finance and the Insurance Manager to handle the security investments of the fund. Also created is a Self- insurance Committee, appointed by the City Manager, to administer the plan. The City is self -insured for all vehicular accidents, Police Torts and Premises Liability up to $50,000 per accident and $100,000 per occurrence in accordance with Florida Statutes, Section 768.28, waiving sovereign immunity in tort claims. The City of Miami is self -insured for all other exposures with the exception that coverage by outside insurance purchase is made where it is found available at acceptable rates. Coverages currently purchased include accidental death and property damage, excluding burglary. Group Life and Accidental Disability and Death benefits have been purchased, with group benefits being self -funded. CONTINGENT LIABILITIES Pending Legal`Proceedings With respect to pending tort actions for which the City may have liability, reserves have been set aside as follows: Rosen v. City of Miami ..... .............................. Auto accident with Police vehicle, in which City is awaiting Plaintiff Attorney to act by entering a stipulation or obtaining a summary judgment. Without this initial activity, the City cannot proceed with the appeal. There are presently 112 claim files, involving 149 potential claimants, pending involving various types of automobile accidents, including all Departments of the City. These claims have been recorded and reserved in the Self -Insurance Fund The City is involved in 51 police civil liability matters which have been recorded and reserved in the Self -Insurance Fund The City is involved in 130 general liability matters of various types which have been recorded and reserved in the Self -Insurance Fund .:.....'....:..`r..:. 754,994.00 357,701.00 371,330.00 TOTAL ...................... ..... $1,884,025.00 In the opinion of the City Attorney, there is n.o pending litigation that may have any materially adverse effect on the financial condition of the City of Miami, other than the claims and actions above, all of which have been booked by the City. In the opinion of Brown, Wood, Ivey, Mitchell and Petty, New York, N.Y., Bond Counsel, interest on the Bonds is exempt from all present Federal income taxes under existing statues, regulations, rulings and court decisions. FINANCIAL STATEMENTS The financial statements of the City of Miami set forth in Appendix A to this Official Statement have been examined by Peat, Marwick. letterto 8t Co,, independent the City Commission dated Juled yc 31 accountants, Iggfor the periods and to the extent stated in t CLOSING CERTIFICATES Certificate of City Manager and Finance Director Concerning Official Statement Concurrently with the delivery of the Bonds, the City Manager and the Director of Finance will furnish their certificate to the effect that, to the best of their knowledge, this Official Statement, as of its date and as of the date of delivery of the Bonds, did not and does not contain an untrue statement of a material fact or omit to state a material fact which should be included therein for the purpose for which the Official Statement is to be used, or which is necessary to make the statements contained therein, in the light of the circumstances under which they were made, not misleading. APPROVAL OF LEGAL PROCEEDINGS Certain legal matters incident to the authorization and issuance of the $6,750,000 Bonds are subject to the approval. of Brown, Wood, Ivey, Mitchell & Petty, New York, N,Y., Bond Counsel, whose legal opinion will be available to the underwriters, at no cost to them, at the time of the delivery of the Bonds and will be printed on the Bonds. MISCELLANEOUS Any statements in this Official Statement involving matters of opinion or estimates, whether or not expressly so stated, are intended as such and not as representations of fact. No representation is made that any of the statements will be realized. References herein to the Constitution, state laws, the City Charter, ordinances and resolutions are only brief outlines of certain provisions thereof and do not purport to summarize or describe all provisions thereof. The information contained in this Official Statement has been compiled by the Finance Department of the City of Miami from official and other sources deemed to be reliable, and while not guaranteed as to completeness or accuracy, is believed to be correct as of this date. The execution of this Official Statement has been duly authorized by the Commission of the City of Miami. City of Miami, Florida by s/s;MAURICE A. FERRE Mayor. THIS PAGE INTENTIONALLY LEFT BLANK AccountantsReport Part I Financial -Statements: Combined Balance Account Groups CITY OF MIAMI, FLORIDA Financial Report Sheet - All Fund Types" and Combined Statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balances - All Governmental Fund Types Combined Statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balances - Budget and Actual General and Special Revenue Fund Types Combined Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings/Fund Balances - All Proprietary Fund Types and Similiar Trust Funds Combined Statement of Changes in Financial Position - Enterprise Funds Notes to Financial Statements Part II - Supplementary Data General Fund: I 72 Balance Sheet Statement of Revenues, Expenditures, Encumbrances II 74-77 and Transfers - Budget and Actual Statement of Changes in Fund Balance I11 78 Pages 41-42 44-47 48-49 50-51 52-53 54 55-71 Schedules Pages Special Revenue Funds: Combining Balance Sheet Combining Statement of Revenues and Transfers Combining Statement of Changes in Fund Balances Debt Service Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances 39 V: 80-81 82-83 VI 84-85 VI°I 86-87 VIII 88-89 Capital Projects: Combining Balance Sheet Combining Statement of. Revenues, and Changes in Fund Balances Enterprise Funds: Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings Intragovernmental Service Funds: XIII 98-99 Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes XIV 100-101 in Contributed Capital and Retained Earnings Trust and Agency Funds: Combining Balance Sheet Combining Statement of Revenues, Expenses and in Fund Balances PEAT, MARWICK, MITCIIELL SC Co, CERTIFIED PUIBLIC ACCOUNTANTS 1000'I3RICKELL AVENUE MIAMI, FLORIDA 33131 The Honorable Mayor, City Commissioners and City Manager City of Miami, Florida We have examined the financial statements of the various funds and account groups of the City of Miami, Florida as of September 30, 1978 and for the year then ended, as listed on the accompanying Table of Contents. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Department of Off Street Parking, the City of Miami Retirement Plan and System and the Downtown Development Authority are entities independent of the City of Miami, Florida. The financial statements of these entities for the year ended September 30, 1978, are not included in the accompanying financial statements. As described more fully in note 14 to the financial statements, the City is experiencing difficulty in maintaining the current level of services with existing available resources. The City has levied the maximum property tax millage for operating purposes and has determined that future intergovernmental revenues will be decreasing and that anticipated contributions in support of the pension plan will be increasing significantly over the next few years. The ability of the City to continue to maintain the level of current services in the future will depend on the City's ability to maintain or expand existing revenue sources while containing costs. As described more fully in note 1 to the financial statements, the City does not provide depreciation on property, plant and equipment of the Enterprise and Inteagovernmental Service Funds as required by generally accepted accounting principles. Also, as described more fully in note 6 to the financial statements, the City, which is self -insured for a variety of risks, does not record claims payable in the Self Insurance Fund for all losses incurred as required by generally accepted accounting principles. The Honorable Mayor, City Commissioners and City Manager City of Miami, Florida Page Two As described more fully in note 12 to the financialstatements the City participates in several Federally -assisted grant programs which . are subject to financial and compliance audits by the grantors or their repre- sentatives. The amount of reimbursement, if any, which may berequired as the result of such audits is subject to final determination by the granting agencies and cannot be determined at this time. In our opinion, except for the effects on the financial statements of the failure to provide depreciation on property, plant and equipment of the Enterprise and Intragovernmental Service Funds and the failure to provide for all losses incurred in the Self Insurance Fund and, subject to the effect, if any, on the financial statements resulting from the financial and compliance audits required by certain grantor agencies, all as discussed in the two preceding paragraphs, the financial statements present fairly the financial position of the various funds and account groups of the City of Miami, Florida at September 30, 1978, and the results of operations of such funds and the changes in financial position of the Enterprise Funds for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. The examination referred to above was directed primarily toward formulating an opinion on the financial statements of the various funds and account groups of the City of Miami, Florida. The supplementary data included in the schedules listed in the Table of Contents are presented for supplementary analysis purposes and are not necessary for a fair presenta- tion of the financial position and results of operations of the various funds and account groups, and changes in financial position of the Enterprise Funds of the City of Miami, Florida. The supplementary data have been subjected to the auditing procedures applied in the examination of the basic financial statements and, in our opinion, except for the effects of the failure to provide depreciation on property, plant and equipment in the Enterprise and Intragovernmental Service Funds and the failure to provide for all losses incurred in the Self Insurance Fund, and subject to the effect, if any, on the financial statements resulting from the financial and compliance audits required by certain grantor agencies all as discussed in the preceding paragraphs above, are stated fairly in all material respects only when considered in conjunction with the basic financial statements taken as a whole. Peat- 721 $2.u.t.) 7,11:1-citee Co CITY OF MIAMI, FLORIDA Combined Balance. Sheet - All Fund Types and Account Groups September 30, 1978 Assets and Other Debits Equity in pooled (note 1) Receivables: Taxes receivable - delinquent, (less allowance for estimated, uncollectible amounts of $2,136,408) General accounts receivable (net of allowance for doubtful accounts of $77,662) Assessment liens receivable (note l Other governments (net of allowance for doubtful accounts of $110,000);, Deposits and prepaid insurance Inventories, and other (note 1) Property, plant and equipment (note Land Buildings and improvements Machinery and equipment Improvements other than buildings (note Contruction-in-progress (note 10) Amount available for retirement General obligation Special obligation Amount to be provided for retirement bonds and judgment payable: General obligation bonds Special obligation bonds Judgment and other payables, (note 7) 1 941,675 50,973,378 • Capital projects 242, 806 615 ,186 19,120 Oa SID MO 3186,282 50,992,498 Exhibit A Proprietary Fund Types Intra- Enterprise governmental 773,848 484,889 1,820,107 21,121,652 785,439 4,104,915 29,090,850 FiduciaryFund Types Self. Trust and Insurance agency Fund Account Groups General General fixed long-term assets debt 16,667,666 15,007,005 6,763,986 90,381,312 49,686,504 1,585,738 1,522,514 Total (Memorandum only) 67706,230 059,516 398,189 20,306 424,137 148,092 330,684 18,487,773 36,853,146 16,642,981 90,381,312 55,630,333 1,585,738 1,522,514 128,089,262 128,089,262 1,124,486 1,124,486 1,107,201 12107,201 133,429,201 03.511,900 CITY OF MIAMI, FLORIDA Combined Balance Sheet - Alt Fund Types and Account Groups Deficit in pooled (note 1) Accrued liabilities' salaries) Accounts payable, Deferred income (note Revenue bonds payable Deposits refundable Due to other governments Claims payable (notes 6 and. 7) General obligation bonds 'payable (note 4) Special obligation bonds payable (note 4) Judgment and other payables (note 7) Total liabilities Encumbrances outstanding (note 1) Reserve for noncurrent delinquent taxes receivable Fund Balance, Contributed Capital and Retained Earnings Fund balances - appropriated (note 1) Fund balances - unappropriated Contributed capital and retained earnings - appropriated Contributed capital and retained earnings - unappropriated Investment in general fixed assets Contingencies and commitments (notes 9 and 13) See accompanying notes to financial statements. 1,019,73.9 2,094,269 2,202,797. 46 Governmental -Fund '-Types.• Capital Projects 1,076,826 1,134,795 48,295,394 566,347 1,973,457 Exhibit A, Cont. Proprietary Fund Types. Intra- Enterprise governmental 30,772 65,248 277,337 249,000 622.357 327,889 28,140,604 Fiduciary Fund TypesAccount Groups Self"`' General Trust and InsuranceGeneral, fixed long-term agency. Fund assets debt. 6,746,132 - 52,283 212,6141,503 69,290 1,759,731 123,274 29,090,850 13,158,850 178,506,473 Total (Memorandum only) 7,197,207 1,322,435 6,803,448 2,480,134 249,000 226,693 30,810 3,949,752 000 129,675,000 2,647,000 2,647,000 1,_107,201 1,1 07=201 133,429,201 155,688,680 1,050,450 339,047 52,787,540 3,633,940 327,889 41,177,881 178,506,473 133,429,201 433,511,900 CITY OF MIAMI, FLORIDA Ex enditures, Encumbrances and Combined Statement of Revenues�AllpGovernmental Fund Types Changes in Fund, Balances Year ended`: September 30 Revenues: Taxes (notes 2 and 10) Licenses and permits Intergovernmental revenue Intragovernmental revenue Charges for services Sale of bonds (note 4) Assessment lien collections (note. Franchise and utility service tax revenue Interest Other Total revenues; Transfers from other funds Total revenues and transfers Expenditures and encumbrances General government Public improvements Public safety Sanitation Pension (note 3) Parks and recreation Intragovernmental charges Other Project expenditures Debt service (note 4): Bond principal Bond interest Fiscal agents' fees and administrative charges Total expenditures Transfers to other funds Total expenditures, encumbrances and transfers Excess (deficiency) of revenues and transfers over expenditures, encumbrances and transfers Fund balances (deficit), October 1, 1977 Reclassification of encumbrance outstanding (note 8) (Increase) decrease in reserve for noncurrent delinquent taxes receivable Transfer of current portion of judgment payable (note 7) Fund balances, September 30, 1978 See accompanying notes to financ.te statements. 48 General $ 37,937,203 4,476,690 18,784,170 1,525,513 718,514 1,049,282 1,198,635 65,690,007 29,996,667 95,686,674 8,359,550 Special revenue 8.037.906 8,494,669 9,149,199 36,891,170 12,022,064 14,410,208 5,103,662 1,546,357 4,290,990 228,467 93,177 8,359,550 Deb t service 1, 819',882 358,917 15,442,625 505,781 28,127,205 191,700 28,318,905 Capital projects 618,505 14,040 000 4,853,025 3,654,854 14,966 24,181,350 24,181,350 Exhibit B Total (Memorandum only) 49,757,085 4,476,690 28,440,581 1,525,513 718,514 14,040,000 358,917 20,295,650 5,438,384 1,306,778 126,358,112 30,188,367 156,546,479 8,494,669 9,149,199 36,891,170 12,022,064 14,410,208 5,103,662 1,546,357 4,290,990 26,923,332 8,726,000 - 8,726,000 - - 6,709,502 - 6,709,502 96,179 - 96,179 91,908,319 - 15,531,681 26,923,332 134,363,332 1,803,688 11,037,215 15,240,175 3,506,537 31_,587,615 93,712,007 11,037,215 30,771,856 30,429,869 165,950,947 1,974,667 (2,677,665) (2,452,951) (6,248,519) (61,377) 3,776,980 5,575,618 54,543,913 500,000 (63,'765) 43,858 (14,415) 000) (9,404,468) 63,835,134 500,000 (34,322) (375,000) CITY OF MIAMI, FLORIDA Combined Statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balances - Budget and Actual General and Special Revenue Fund Types Year ended September'30, 1918 Revenues Taxes:(note'2) License"s, permits and service. taxes Intergovernmental revenue (note:l2) Intragovernment'al revenue Charges for services Interest Other`(including.General Fund budget :item of`$1,SOO,OOO;for anticipated salary savings) Transfers Total revenues from other funds Total revenues .and ,transfers • Expenditures and encumbrances (note 6). General government Public improvements Public safety Sanitation Pension (note 3) Parks and recreation; Inteagovernmental charges` Other Total expenditures Transfers .to other funds Total expenditures and transfers Excess (deficiency) of revenues and transfers over expenditures and transfers Fund balances (deficit) October (Increase). decrease in reserve for taxes. receivable Reclassification of encumbrances outstanding Transfer of current portion` of long-term judgment payable (note 7) 1977 noncurrent delinquent (note 8) Fund balance, September 30, 1978 See accompanying notes to financial statements. 50 General Budget $ 37,845,091;, 4,043,941 21,654,433. 1,626,312 890,763� 900,000' 1,969,767 68,930,307 28,274,413 97,204,720 9,478,813 9,954,468 38,117,734 12,551,290 14,621,841 5,239,978 1,692,891 4,908,497 96,565,512 1,543,472 98,108,984 $ (904,264). Fund" Actual 37,937,203 4,476,690 18, 784,170 1,525,513 718,514 1,049,282 29, 996,667. 95,686674` 8,494,669 9,149,199 36,891,170 12,022,064 14,410,208 5,103,662 1,546,357 4,290,990 91,908,319 1,803,688 93,712,007 Special Revenue Funds Budget Actual Exhibit C Total (Memorandum Only) Budget Actual 37,845,091 - 4,043,941 8,037,906 21,654,433 1,626,312 890,763 900,000 969,767 478,813 9,954,468 38,117,734 12,551,290 14,621,841 5,239,978 1,692,891 4,908,497 96,565,512 1,543,472 98,108,984 37,937,203 4,476,690 26,822,076 1,525,513 718,514 1,277,749 1,291,812 104,046,224 8,494,669 9,149,199 36,891,170 12,022,064 14,410,208 5,103,662 1,546,357 4,290,990 91,908,319 12,840,903 104,749,222 7,665) (904,264) (702,998) 3,715,603 (19,907) 500,000 (375,000) 3,117,698 CITY OF MIAMI, FLORIDA Combined Statement of Revenues, Expenses and Changes in'Contributed Capital and Retained Earnings/Fund Balances Proprietary Fund Types and Similiar Trust Funds Year`Ended September 30, 1978 Revenues: Revenue from operations Inteagovernmental charges Intergovernmental grants (note 12 Contributions from employees and retirees Interest Other Total revenues. Transfersfrom other funds Total revenues and transfers Expenses: Operating expenses Grant expenditures (note 12 Total expenses Transfers to other funds Total expenses and transfers Net income Excess of revenues and transfers over expenses and transfers Contributed capital and retained earnings, fund balances, October 1, 1977, Reclassification of Self Insurance Fund (note 10) Contributions from other funds Contributed capital and retained earnings, fund balances, September 30, 1978 See accompanying notes to financial statements.` 52 Proprietary;- Fund Types Enterprise 3,701,319 Fiduciary. Fund:Types. 'Self ...,Intra7 Trust Insurance.' governmental & Agency, Puna: `6,364,097 - 4,011,626 - 26,074,069 - - 2,498,559 58,638' 80',765 - 56,417 191,310 3,7.59'957 6,444,862 26,07.4 069 6,757,912 1., 657., 248 _213 000 - 3,759,957 8,102,110 26,287,069 6,757,912 3,073,538 6,187,850 - 6,465,714. 25,713,271 - 3, 073,538 6,187,850 25,713,271 6,465,714 44,644 435,000- 3,073,538 6,232,494 26,148,271 6,465,714 686,419 1,869,616 - - 24 491,574 3`, 290, 500 $ 28,468,493. 138,798 292,198: 10,434,847; 299,882 (1,169,258) - 1,169,258 1'902,072' 13,037,277 438,680': 1,461,456; 53= Exhibit D Exhibit E CITY OF"MIAMI FLORIDA Enterprise Funds Combined Statement of Changes in Financial Position Year ended September 30, 1978 Funds provided: Net income Item not: using and equipment. funds -`disposition, machinery Funds provided from operations Contributions froin other funds Increase in accounts payable and other liabilities?. Funds used: Retirement of` Increase in. receivables Additions to property, plant Decrease in accrued liabilities Increase in revenue bonds and equipment equity: in pooled cash and Investments See accompanying notes. o financial 'statements. 54 686,419 55,485 741,904 3,290,500 40,435 4,072,839 18,000 87,644 3,622,044 9,206 335,945 $ 4,072,839 CITY OF MIAMI, FLORIDA Notes to Financial Statements September 30, 1978 (1) Summary of Significant Accounting Policies The City of Miami in the County of Dade was incorporated in 1896 and comprises approximately 34 square miles of land and 20 square miles of water. The City operates under a Commission - City Manager form of government and provides the following services as authorized by its charter: public safety, public works, sanitation, recreation and community development. The County is a separate governmental entity and its financial statements are not included in this report. (see note 11) The accounting policies of the City of Miami, Florida conform to generally accepted accounting principles as applicable to governmental units except for the nonrecognition of depreciation on fixed assets of the Enterprise and Intragovernmental Service Funds and except for the failure to provide for all losses incurred in the Self Insurance Fund. The following is a summary of the more significant policies: (a) Basis of Presentation - Fund Accounting The accounts of the City are organized on the basis of funds or groups of accounts, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, reserves, fund balance, revenues and expenditures. The Department of Off -Street Parking, the City of Miami Retirement Plan and System and the Downtown Development Authority are entities independent of the City. The financial statements of these entities are not included herein. The various funds are grouped by type in the financial statements. The following fund types and account groups are used by the City: GENERAL GOVERNMENTAL FUNDS General Fund - The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to another fund are acounted for in this fund. From the fund are paid the general operating expenses and the fixed charges that are not paid through other funds. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments or major capital projects) requiring separate accounting because of legal or regulatory provisions or administrative action. Budget information has not been presented since all resources are appropriated in the General Fund. (See note 10) 55 (Continued) 79•686 CITY OF MIAMI, FLORIDA Notes to Financial Statements Debt Service Funds - Debt Service Funds are used to account for the annual payment of principal, interest and expenditures on long-term general obligation debt, other than bonds payable from the operations of an enterprise. Capital Project Funds Capital Project Funds are used to account for financial resources segregated for the acquisition or construction and financing of public improvements. PROPRIETARY FUNDS Enterprise Funds - Enterprise Funds are used to account for operations that provide a service to citizens financed primarily by a user charge for the provision of that service, and activities where the periodic measurement of net income is deemed appropriate for capital maintenance, public policy, management control, accountability or other purposes. Intragovernmental Service Funds - Intragovernmental Service Funds are used to account for the financing of goods or services by a department of the City on a cost reimbursement basis. FUDICIARY FUNDS Trust and Agency Funds - Trust and Agency Funds are used to account for assets held in trust or as an agent by the City for others. These funds are used to account for revenues and expenditures relating to most Federal and State grants. For the year ended September 30, 1978 approximately $13,600,000 of expenditures were reported in the Trust and Agency Funds which benefit other funds. The amount of benefit provided to other funds is not individually readily accessible, although the majority is in support of general governmental services. Self Insurance Fund - Self Insurance Fund is used to account for losses incurred by the City for a variety of risks for which it is self insured. The Fund also accounts for employee and employer contributions for certain health coverages. GROUPS OF ACCOUNTS General Fixed Assets Group of Accounts - This group of accounts is established to account for all fixed assets of the City, other than those accounted for in the Enterprise and Intragovernmental Service Funds. General Long -Term Debt Group of Accounts - This group of accounts is established to account for all long-term debt not accounted for in the Enterprise Funds. (b) Basis of Accounting The modified accrual basis of accounting is followed by the General Governmental Funds. Under the modified accrual basis of accounting, revenues are recorded when received in cash unless susceptible to accrual, i.e. measurable and available to finance the City's operations or of a -material amount and not received at the normal time of receipt. 56 (Continued) Expenditures, other than interest on long-term debt, are recorded when the liability is incurred.: The accrual basis of accounting is utilized by Proprietary and Fiduciary Fund. Types. (c) Encumbrances' Encumbrance accounting,under which purchase orders, contracts an other commitments < for the expenditure of funds : are .recorded in order to reserve that portion of the applicable appropriation, -is employed in the;: general governmental funds. Includedin encumbrances outstanding in the General Fund is $120,854 to prior years. (d) Investments-- Investments arestated at cost, which approximates market. Investments consist of U. S. government obligations and time deposits with financial institutions. relating (e) Inventories" Inventories are priced at cost on a first -in, first -out basis. Inventory in the Intragovernmental Service Funds consists of expendable supplies held for consumption. (f) Property, Plant and Equipment -Enterprise and Intragovernmental Service Funds Property, plant and equipment owned by the Enterprise and Intragovernmental Service Funds is stated at cost. Depreciation has not been provided as required by generally accepted accounting principles. The amount of accumulated depreciation at September 30, 1978 and the related depreciation expense for the year then ended is not susceptible to determination at this time. (g) General Fixed Assets General Fixed Assets have been acquired for general governmental purposes. Assets purchased are recorded as expenditures in the general governmental funds and capitalized at cost in the General Fixed Assets Group of Accounts. In the case of gifts or contributions, such assets are recorded in General Fixed Assets at fair market value at the time received, except for the Olympia building which houses the Maurice Gusman Cultural Center for the Performing Arts which was donated in 1975 but for which a fair value has not yet been determined. General Fixed Assets include certain improvements, including roads, bridges, curbs and gutters, streets and sidewalks, and lighting systems. (Continued) 57 CITY OF MIAMI, FLORIDA Notes to Financial Statements No depreciation has been, provided on general fixed assets. (h) VacationEarned Time and Sick Leave Under terms of Civil` Service regulations and administrative policy, City employees are granted vacation and sick leave in varying amounts. Additionally, certain overtime hours can be accrued and carried forward as earned time -off. Due to the uncertainties relating to the timing and amount of payment to be made, the above liabilities are not recorded (see note 13). (i) Pooled Cash and Investments During 1977, the City implemented a new accounting system in which all cash, investments and accrued interest are recorded and maintained in a separate group of accounts. All cash and investments, including accrued interest and interfund transfers, are reflected in the equity or deficit in pooled cash and investments. Interest income is allocated based upon the approximate proportionate balances of each fund's equity in pooled cash and investments. A summary of pooled cash and investments and equity in pooled cash and investments follows: Short term investments, including accrued interest Petty cash and other $ 65,026,389 32,182 $ 65,058,571 Bank overdrafts $ 3,127,097 Liability for payroll deductions: 1,272,273 Other 150,178 Equity (deficit) of Funds: General Fund 7,204,548 Special Revenue Funds (451,075) Debt Service Funds 2,941,675 Capital Projects Funds 50,973,378 Enterprise Funds 773,848 Intragovernmental Funds 1,197,802 Trust and Agency Funds (6,746,132) Self Insurance Fund 4,614,979 $ 65,058,571 The liability for payroll deductions shown above represents employee salary deductions for FICA, credit union, bond purchasers etc. This liability is not reflected in the accompanying financial statements since each funds' equity in pooled cash and investments amount has been reduced for its respective portion. 58 (Continued) CITY OF MIAMI. FLORIDA Notes to Financial Statements The General' Fund incurs certain administrative expenses' for other funds, including accounting, legal and engineering services An administrative charge is levied against these funds to defray a portion of these expenses. he General. Fund also contributes toward certain costs of the Intragovernmental Service Funds, including pension cost, social security and group insurance charges. These costsare recordedin the Intragovernmental Service Funds, with the General Fund transfering sufficient funds to cover the expenses. (k) Appropriation of"Fund-;Balances'' he 1978-79'budget for the General and Special Revenue Funds include appropria- tion of the September 30, 1978 fund balances of $2,427,000 and $1,077,000 respectively for purposes of funding general operating expenses. Deferred. Income Deferred. income at for which` the use September 30, 1978 represents collections made in advance or service will not be provided until the subsequent year. Included in the General Fund amount is a $580,000 payment received in 1978 pursuant to an agreement made in 1975 for the sale of certain assets to the Dade County Water and Sewer Authority. The payment was received in advance of the scheduled date and is being deferred until the next fiscal year to coincide with the period in which it is appropriated. (m) Debt Service Funds Activities Included in the operations of the debt service funds are collections of utilities service taxes and collections of assessment liens. These revenues have been reported in the Debt Service Funds because they are restricted for the payment of principal and interest on certain bond issues. Excess receipts over current debt service and reserve requirements are transferred to the General Fund for general operating purposes. (2) Real and Personal Property Tax The City's real and personal property tax is levied each January 1 on the assessed value listed as of the prior September 30, for all property located in the City. Assessed values are established by the Dade County Assessor of Property at just values. The assessed value of property at September 30, 1977, upon which the 1977-78 levy was based was $3,828,200,000. 59 (Continued) CITY OF MIAMI, FLORIDA Notes to Financial Statements The City is limited, under. Article 7, Section 8 of the Florida Constitution to a maximum tax levy of 10mills per $100 ($10 per $1000) of assessed valuation for general governmental services. Taxes levied for the payment of principal and interest on long-term debt are not subject to this limitation. The tax rate to finance general government services, other than the payment of principal and interest on long-term debt, for the year ended September 30, 1978 was $10 per $1000 of assessed valuation which means that the City exhausted its taxing capability to finance general government services. An additional $3.20 per $1000 of assessed valuation was levied for the purpose of debt service. Total taxes levied, therefore, for the year ended September 30, 1978 aggregated $50,532,000 of which $38,282,000 was designated for general government service and $12,250,000 for debt service. All taxes are due and payable on November 1 of each year or as soon thereafter as the assessment roll is certified and delivered to the Dade County Tax Collector. The Dade County Tax Collector mails to each taxpayer on the assessment roll a notice of the taxes levied. Taxes may be paid upon receipt of such notice, with discounts at the rate of four percent if paid in the month of November, three percent if paid in the month of December, two percent if paid in the month of January and one percent if paid in the month of February. Taxes paid during the month of March are without discount. All unpaid taxes on real and personal property become delinquent on April 1 of the calendar year following the year in which the taxes were levied. All tax collections for the City are delivered to the City of Miami by Dade County. The delinquent real property taxes bear interest at the rate of eighteen percent per year from April 1 until a tax sale certificate is sold at auction from which time the interest rate shall be as bid by the buyer of the certificate. (3) Retirement Plana The City has contributory pension plans covering substantially all employees. Total pension expense for the current fiscal year, including amortization of prior service costs over 35 years was approximately $14,650,000. Of this amount $14,410,000 was funded by the General Fund, and the remainder by various other funds, principally Enterprise. The actuarially computed value of vested benefits under the plans exceeded the pension funds' net assets by approximately $76,211,000 at September 30, 1978, the date of the last valuation. The pension expense and the excess of vested benefits over fund assets, for the year ended September 30, 1978 increased substantially from the amounts reported for the year ended September 30, 1977 (approximately $11,200,000 and $69,700,000, respectively). This increase was principally due to changes in actuarial assumptions, the moat significant being anticipated future salary increases. The anticipated aggregate contribution for the fiscal year ending September 30, 1979 is approximately $16,100,000. 60 (Continued) CITY Motes (4) Bonds Payable (a) Bond Issuances OF MIAMI, FLORIDA o Financial Statements During 1978 the City issued;$14,040,000 of General Obligation Bonds. The proceeds are restricted as to use as follows: Parks and recreational facilities Fire facilities Housing (b) General Long -Term Debt General obligation bonds, 1/102 to 7-1/2X, maturing in various years through 2008, current principal maturities of approximately $9,860,000 backed by the full faith and credit of the City and its taxing power. Special obligation bonds, 3% to 4-1/102, maturing in various years through 1988, current principal maturities of approximately $466,000. (c) Enterprise Funds Revenue bonds, 6.5%, maturing in various years through 1989, current principal maturities of approximately $20,000. (d) Debt Service Requirements General Oligation Bonds Debt service is provided by an unlimited tax levy on nonexempt property value and collections on assessment liens from projects financed by proceeds of such bonds. 11,540,000 1,000,000 1,500,000 14,040,000 129.675.000 2.647.000 $ 249,000 Special Obligation Bonds (1) Incinerator revenue bonds - Debt service is being provided by General Fund transfers. A reserve of $250,000 must be maintained. (2) Utilities service tax bonds - Debt service is provided by utilities service taxes imposed by the City on each purchase of electricity, g , water local telephone and telegraph service. A reserve must be maintained equal to the maximum annual debt service requirement. Utilities service tax revenues exceeding debt service and reserve requirements can be used for any lawful purpose. 61 (Continued) CITY OF MIAMI, FLORIDA Notes to Financial Statements (3) Orange Bowl Special Obligation Bonds - Debt service is provided by electric franchise revenues. A reserve equal to the maximum annual debt service requirement must be maintained. At September 30, 1978 there were sufficient funds reserved to fully pay the amount outstanding. Enterprise Revenue Bonds Rental income from the lease of the debt service on these bonds. (5) Land Transactions During 1974 the Inter -American Center Authority purchased a parcel of land from the City known as the Graves Tract for $8,500,000. The Authority had agreed to pay the amount of the indebtedness, together with 5% annual interest, in equal semiannual installments of $300,000 beginning January 1, 1977. In 1.975 the Authority was dissolved. Negotiations as to the payment of indebtedness are in process. The State of Florida budget for 1979-80 fiscal year contains a line item that gives the State the opportunity to buy the City's interest in the property for $8,000,000. The $8,000,000 would be restricted for projects related to tourist development. The City has not yet accepted the terms of the State's proposal and due to uncertainty as to timing and ultimate collection of this amount, no receivable has been recorded at the balance sheet date. At September 30, 1978 Dade County was indebted to the City for approximately $830,000 relating to the sale of the Dodge Island site. Pursuant to terms of the original agreement, the aggregate purchase price of $1,330,000 was to be received by the City after payment and cancellation of the County's Seaport Revenue Bonds. During 1977, the original agreement was amended to provide for earlier payment. Included in revenue for 1978 is a receipt for approximately $580,000 including accrued interest. The remaining $830,000 is not considered available to finance 1978 operations, and therefore has not been recorded at the balance sheet date. (6) Self insurance On October 1975 the City established a Self Insurance Fund to provide insurance against certain liability risks. The City has continued to purchase outside coverage for certain exposures where the premium is small in relation to the coverage provided. In prior years these self insured risks were limited to automobile liability an property damage, and general liability for slips, falls and torts (hereinafter referred to as general coverage). During 1978 the City expanded the types of risk for which it is self insured to include group accident and health and also modified its accounting for workers compensation. The City's accounting policy and amount of unpaid claims at September 30, 1978 for the various coverage is explained below: u1I1u1li1111 uu� CITY OF MIAMI, FLORIDA Notes to Financial Statements General Coverage - Departments of the City are assessed a charge for each risk based upon the number of automobiles, square footage of space utilized, etc. As claims are reported, claims personnel investigate each claim and estimate a liability on a case by case basis. No provision is made for claims incurred but not reported. The amount of this liability is not susceptible to determination at this time. Amount included in claims payable 1, 884,025 B. Group Accident and Health - 1,690727 Employees participating in the City's group coverage contribute through payroll deduction and departments of the City fund the remaining cost based upon their respective number of participating employees. Retired employees also participate and contribute to the plan. During 1978, when the City assumed the liability for this coverage, the insurance carrier returned to the City an amount representing the unpaid claims at that date. This amount was established as a claim liability. All claims paid subsequent to this date have been expensed as paid. C.`=Workers Compensation - n prior years, workers compensation claims were recorded on a pay-as-you-go basis in the General Fund. In 1978, all departments of the City were charged for their respective share of claims paid. Effective October 1, 1979 all workers compensation costs will be included in the Self Insurance Fund with all departments of the City being assessed a charge for this coverage. At September 30, 1978 there is no claim liability for workers compensation recorded. The amount of this liability is not susceptible to determination at this time. Total claims payable 63 $ 3,574,752 (Continued) CITY OF MIAMI, FLORIDA Notes to Financial Statements The charges made by the Self Insurance Fund to other funds are not determined on an actuarially sound basis due to the lack of adequate data. The accuracy of expenditures recorded in other funds for insurance coverage depends on the ability of the Self Insurance Fund to accurately estimate the claim losses incurred by the insured departments. To the extent the claim liabiilty recorded in the Self Insurance Fund is understated, or to the extent the fund balance represents charges to other funds in excess of actual losses, the expenditures of other funds would differ accordingly. The City does not believe such a refinement in the claim liability amount would have a material impact on any fund's expenditures for the year ended September 30, 1978. (7) Claims, Judgment and Other Payables Claims Payable - General Fund In April 1978, the City, as defendant, settled an outstanding suit which alleged certain irregularities in pay increases granted to certain City employees in prior years. The City agreed to pay the plaintiffs $1,100,000 covering all back wages, attorney's fees, court costs and auditor costs. Of this amount, $187,500 was charged to expenditures during 1976, and $912,500 was charged to expenditures in 1977, both in the General Fund. The City disbursed $350,000 during 1978 from the General Fund and has accrued as part of claims payable the fiscal 1978-79 payment of $375,000. A corresponding charge to fund balance in the General Fund has been recorded for the fiscal 1978-79 accrual. The remaining $375,000 payment is scheduled to be made during fiscal 1979-80 and is reported as part of judgments and other payables in the General Long Term Debt Account Group (see below). Judgments and Other Payables - General Long Term Debt Account Group During the fiscal year ended September 30, 1977 the City purchased a parcel of land and agreed to compensate the owner $1,293,500. At September 30, 1978 the unpaid balance of the indebtedness is $732,201 and is scheduled to be paid in varying amounts through 1986. The remaining $375,000 in judgments and other payables represent the fiscal 1979- 80 payment on the judgment described above. (Continued) f i CITY OF MIAMI, FLORIDA Notes'to Financial Statements (8) Federal Revenue Sharing ;Fund - Reclassification of Encumbrance Outstanding During 1978 the City cancelled an encumbrance outstanding in the Federal Revenue Sharing Fund for $500,000 and appropriated the monies for the 1978-79 operating budget. Due to the significance of the amount involved and the fact that the original encumbrance was never supported by an executed purchase order the amount is being shown as an addition to fund balance for the year ended September 30, 1978. (9) Litigation (a) City of Miami vs. FEC The City is involved in a "quick take" eminent domain action to acquire 32.64 acres of bayfront land owned by the Florida East Coast Railway Company.(FEC) The property is located in downtown Miami between NW 6th and NW 9th Street and bounded in the west by Biscayne Boulevard. In March, 1978 a trial court entered an Order of Taking and an Order of Necessity, vesting title to said property in the City subject to a Stipulation entered between the parties. In accordance with the Order of Taking and the stipulation, the City deposited $14,500,000 of certificates of deposit with a local depository. On March 30, 1978, FEC and certain other defendants appealed. In June 12, 1979 the Third District Court of Appeal issued its opinion affirming the Order of the trial court. The FEC has asked for a rehearing before the Third District Court of Appeal. If the City continues to be successful in upholding the Order of the trial court, this case will be returned to the Circuit Court for a jury trial to determine the ultimate amount which the City must pay FEC and other defendants for the property and damages they may have sustained including defendant's attorney's fees and court costs. This amount, however, cannot be determined at this time. (b) Gates et al vs The City of Miami The City of Miami is involved in a lawsuit filed by several contributors and retired members of the Miami City Employees' Retirement System primarily challenging the legality of certain expenditures made by the City from revenue raised pursuant to a Special Act which authorized the City to levy ad valorem real property taxes for the relief and pension of City employees. The alleged improper expenditures are as follows: • City's Social Security contributions $ 8,771,929 ▪ City's required portion of premiums on Group Health and Life Insurance Policies 8,627,239 . Payment of Judgments on pension related cases 1,660,182 ▪ City's Workers' Compensation obligations 566,810 • Reimbursement to City of expenses for City Departments' services rendered to pensions 2,460,233 $ 22.086.393 65 (Continued) CITY OF MIAMI, FLORIDA Notes to Financial Statements In the, opinion of the. City Attorney, the lawsuit will not ultimately the City of Miami having to actually pay any money judgment. (c ) Other result in The City is currentlyappealing a $400,000'judgment that arose`. out, of an automobile accident involving a police 'vehicle. In the opinion of the City Attorney the City liability is either $100,'000 or $400,000 depending on the outcome of the appeal. The City is defendant in a case which arose out of an alleged police brutality incident. A verbal demand for $300,000.has been submitted and in the opinion of City counsel the case will be settled. There are a number of claims and lawsuits against the City resulting principally from personal injuries incurred on City property. In the opinion of City officials and the City attorney, these claims together with those mentioned above could result in a liability to the City of approximately $1,900,000. The liability for outstanding claims is recorded in the Self Insurance Fund (see note 6). The City of Miami relies primarily on their legal department acting under the direction of the City Attorney for legal advice. The foregoing opinions are based solely on the opinion of the City Attorney. (10) Changes Affecting Comparability (a) Reclassification of Self Insurance Fund As discussed in note 6, the Self Insurance Fund was reported as an Intragovernmental Service Fund for the year ended September 30, 1977 but has been reclassified and is being reported as a Fiduciary Fund Type for the year ended September 30, 1978. This reclassification, in managements' opinion, more properly presents the activity of the Fund. The amount reclassified of $1,169,258 represents fund balance at October 1, 1977. (b) Special Tax Levy Funds For the year ended September 30, 1977 general property taxes aggregating $14,099,000 were levied and reported as revenue in the Special Revenue Funds in support of Pension, Publicity and Tourism and Street Lighting. Total expenditures reported in the Fund were $15,959,000. Pursuant to City Commission action, these activities and the related revenue and expenditures are reported in the General Fund for the year ended September 30, 1978. (Continued). 66 IIII III I■111IIIIIIIIIIIII (c) CITY OF MIAMI, FLORIDA Notes to Financial Statements Group Insurance and Workers° Compensation Costs Prior to June 1, 1978 the General Fund absorbed certain costs relating to Group Insurance and Workers' Compensation costs. Subsequent to that date, each department is charged their respective portion of actual claims coverage. Aggregate costs charged for the year ended September 30, 1978 was $5,012,000 of which $4,341,000 was recorded in the General Fund and $671,000 was recorded in other funds, principally Intragovernmental, Enterprise and Trust and Agency Funds. The aggregate costs recorded in the General Fund for the year ended September 30, 1977 were $4,927,000. (d) Federal Revenue Sharing Fund Prior to 1978 certain expenditures were budgeted and paid for directly by the Federal Revenue Sharing Fund. For the year ended September 30, 1978 all disbursements previously reported in this Fund were budgeted and disbursed by the General Fund. Total expenditures reported for the year ended September 30, 1977 for activities currently reported in the General Fund were $2,747,000. (e) Transfer of General Fixed Assets to Dade County Water and Sewer Authority As of September 30, 1978 the City recorded the transfer of approximately $49,000,000 of sanitary sewers to the Miami -Dade Water and Sewer Authority in accordance with an agreement dated March 1975 between the City, Dade County and the Miami -Dade Water and Sewer Authority. The transfer was recorded, although most of the assets were being used by the Miami -Dade Water and Sewer Authority since 1976, by reducing improvements other then buildings by $48,842,186 with a corresponding decrease in investment in general fixed assets. There is an additional $8,896,690 of similar assets recorded as part of construction -in -process that will be transferred when the respective projects are completed. (11) Relationship with Metropolitan Dade County 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 of Dade. The Amendment was approved in a state-wide general election in 1956. A Dade County Charter Board was constituted and in 1957 and drafted a charter which established a form of Metropolitan County government. The charter was adopted in a county election on July 20, 1957. The electors of Dade County are granted power to revise and amend the charter from time -to -time by county -wide vote. The County is in effect, a municipality with governmental powers effective upon twenty-seven cities and unincorporated areas including the City of Miami. It has not displaced or replaced the cities but supplements them. The County can take over particular activities of a city's operations (1) if the services fall below minimum standards set by the County Commission, or (2) with the consent of the governing body of the City. 67 (Continued) CITY OF MIAMI, FLORIDA Notes to Financial Statements Since its inception, the . Metropolitan County Government has assumed responsibility on a County -wide service' basis for a ,number of functions, including County -wide police services, complementing the municipal'police service; uniform system of fire protection complementing the muncipal fire protection; consolidated two-tier court.system;. creation of the Miami -Dade County Water and Sewer Authority; 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. (12) Federally Assisted Grant Programs The City participates in a number of Federally -assisted grant programs, principally of which are General Revenue Sharing, Community Development Block Grant, Comprehensive Employment and Training Act (CETA) and Local Public Works programs. These programs are subject to financial and compliance audits by grantors or their representatives. In December of 1978 an audit report was issued by the Dade County Internal Audit Department representing the South Florida CETA Consortium. This report covered the financial and compliance activities of the City as subgrantee for CETA funds from June 1, 1974 to September 30, 1977 and questioned $1,717,000 of costs disbursed by the City during that period. Although the City has responded defending specific items of questioned costs, a final determination of the amount, if any, of monies to be reimbursed to the South Florida CETA Consortium cannot be determined at this time. At September 30, 1978, the audits of certain other programs including the Comprehensive Employment Training Act for the period since October 1, 1977 have not been conducted. Accordingly, the City's compliance with applicable grant requirements will be established at some future date. The amount, if any, of expenditures which may be disallowed by the different granting agencies cannot be determined at this time. (13) Commitments and Contingencies At December 31, 1978, the City had certain contingent liabilities relating to earned employee benefits. The amount of benefits earned and accumulated is governed by Civil Service regulations and administrative policy. These earned benefits are summarized below: MM MM CITY OF MIAMI, FLORIDA Notes to Financial Statements Description Normal vacation earned Additional time -off earned by hourly employees for over- time hours worked Normal sick leave accumulated Amount 1,223,405 1,812,100 12,438,021 The full amount of vacation time, if not used by the employee, is payable upon separation of service subject to the following limitations: for employees in service at December 31, 1973 - all accumulations to that date plus a maximum of 160 additional hours. .-for employees employed since December 31, 1973 - a maximum of 160 hours. Earned time payable at separation is limited to 200 hours. Sick leave payable upon separation is limited to a maximum of 960 hours and is paid only if the employee has ten or more years of service, or in the case of sanitation workers, fifteen years service is required and limited to $3,000 or twenty-five years service and limited to $5,000, or forty years of service and limited to 960 hours at the pay rate at separation date. Due to uncertainties relating to the timing and amount of payments to be made, the above liabilities are not recorded. In February 1976 the Commission passed an ordinance which approved the issuance of $25,000,000 General Obligation Housing Bonds of the City for the purpose of providing housing for families and persons, including the elderly, of low or moderate income. In addition, and pursuant to agreements between the City and Dade County, the proceeds of such bonds, as they are issued from time to time, will be deposited in trust in a reserve fund to provide additional security for certain housing revenue bonds to be issued by Dade County. In the event the housing projects do not generate sufficient funds to service the County's debt, the proceeds of the City's Housing Bonds will be used to pay principal and interest. If, however, the Dade County Housing Bonds are self-liquidating, all amounts remaining in the trust account will be returned to the City for purposes set forth above. At September 30, 1978, $1,500,000 of such City Housing Bonds were sold and approximately $213,000 has been transferred to the trust account. Due to the uncertainty as to timing or ultimate return of the amount transferred to the trust account, no receivable was recorded at the balance sheet date. (14) Maintaining the Current Level of Service The City is experiencing difficulty in providing the current level of services with existing available resources. Revenue curtailments and operating cost increases have resulted from many conditions. Some of the more significant conditions affecting the City's resources are: . Property taxes for general operating purposes have reached their maximum allowable millage (see note 2). . Limitations have been placed on the maximum increase allowed in assessed valuation from year to year. 69 (Continued) CITY OF MIAMI, FLORIDA Notes to Financial Statements ▪ Anti -Recession Fiscal. Assistance Funds have been discontinued. ▪ Federal Revenue decreasing. Sharing Funds available • Comprehensive Employment Training decreasing (see note 12). . Anticipated pension contributions note 3). for general operating Act Funds and other purposes sustaining and related expenses General operating costs are suffering inflation. from the continuation; grants are increasing f double . The amount of vested benefits under the, City of Miami System exceeding fund assets is increasing (see note 3).� Retirement are are (see digit Plan and The City is continually assessing alternatives to alleviate the above conditions and has successfully avoided any reduction in services. Its ability to continue to provide the current level of services in the future is dependent upon expanding existing revenue sources while containing costs. (15) Subsequent Events and Other Matters Bond Issuance In November 1978, the City offered for sale $18,250,00 of General Obligation Bonds as follows: $6,000,000 $5,000,000 $2,250,000 Reserve $5,000,000 Sanitary Sewer Bonds Street and Highway Improvement Bonds Fire Fighting, Fire Prevention and Facilities Bonds Storm Sewer Improvement Bonds Ordinances authorizing the issuance of these bonds were previously adopted by the Commission and approved by the electors. The bonds bear interest at rates between 4% and 7.5% and were sold at a small premium. Bond Resolution In May of 1979 the Commission passed a resolution authorizing the City Manager to execute an investment banking agreement with certain underwriters for the sale and issuance of $55,000,000 of revenue bonds to finance the development of Watson Island as an amusement and recreation complex (the Project). In June 1979 an Investment Banking Agreement was executed whereby the 70 (Continued) CITY OF MIAMI, FLORIDA o Financial Statements underwriters agreed to underwrite the $55,000,000 principal amount of the revenue bonds. Of such bonds, $20,000,000 will be secured by revenues from the' Project together with a pledge of the City's franchise fees and non - ad valorem taxes or revenues not otherwise pledged, and $35,000,000 of revenue bonds will be secured only by Project revenues. State Reporting Requirements On June 15, 1979, the Governor of the State of Florida approved the "Local Government Financial Emergency and Accountability Act." The Act is effective October 1, 1979, and requires local governmental entities to complete their financial statements within 90 days after the close of their fiscal year. Additionally, financial statements are to be included in a financial report examined by a certified public accountant and submitted to the State Department of Community Affairs within 180 days after the close of the entities' fiscal year. Failure to comply with these requirements may result in the witholding by the state of funds payable to the entity until the required report is received. CITY OF MIAMI,.FLORIDA General Fund Balance Sheet September 30, 1978 Equity` in pooled cash and Taxes receivable - delinquent (leas allowance for estimated. 642748 uncollectible amounts of $1,292,407); General accounts receivable (net of allowance 502 246 for doubtful accounts of $18,677) Other 39,120 $ 8,388,662 Schedule I 548 Liabilities, Reserves, and Fund Balance Accrued liabilities (principally salaries) $ 1,019,739 Accounts payable 2,094,269 Deferred income 2,202,797 Claims payable �� ` 375,000 Total liabilities 5,691,805 Encumbrances outstanding 1,015,512 Reserve for noncurrent delinquent taxes receivable 206,820 Fund balance - appropriated 1,474,525 $ 8,388,662 CITY OF MIAMI General Fund Statement of Revenues, Expenditures, Encumbrances ':and -Transfers, Budget and Actual Year ended September 30, 1978 Revenues:: Taxes: General property tax Penalties and interest Business and excise taxes Licenses and permits:;:, Business licenses and permits4 Construction permits Intergovernmental revenue: Federal. grants State grants Other Inteagovernmental revenue: Engineering services Charges for services: Public safety Recreation Other Miscellaneous revenues: Interest" Rents Other (including General Fund budget Item o anticipated salary savings) Total revenues Transfers from other funds Total revenues and transfers 74 $ 500,000 for Revised budget 37,202,692 200 642,199 37,845,091 3,571,441 472,500 4,043,941 4,432,383 12,885,052 4,336,998 21,654,433 1,626,312 515,905 246,650 128,208 890,763 900,000 112,574 1,857,193 2,869,767 75 36,996,791 226,257 714,155 37,937,203 3,545,153 931,537 4,476,690 3,052,684 12,101,588 3,629,898 18,784,170 1,525,513 414,879 154,065 149, 570 718,514 1,049,282 310,658 887,977 2,247,917 65,690,007 29,996 667 95 686,674 Schedule II CITY OF MIAMI, FLORIDA General Fund Statement of Revenues, Expenditures, Encumbrances and Transfers, Budget and Actual Expenditures and encumbrances: General government: Mayor and commission City manager City clerk Management services Finance Legal Civil service Human resources Citizen services Conferences and conventions Tourism and promotion Computers and communications` Public improvements: Public works Building Planning and zoning boards,. Public -safety: Police Fire Sanitation Pension Parks and recreation Intragovernmental charges: Property maintenance Self insurance Print Shop Other: Employee benefits Special programs Miscellaneous encumbrances, Total expenditures and Transfers to other funds Total expenditures encumbrances and transfers Excess of,revenues and transfers, over expenditures, encumbrances and transfers 76 a 240,341 555,682 295,321 543,347 1,260,883 745,783 161,255 852,363 148,757 675,934 1,214,331 2,784,816 9,478,813 7,946,812 1,435,412 572,244 9,954,468 22,113,187 16,004,547 38,117,734 12,551,290 14,621,841 5,239,978 701,085 877,714 114,092 1,692,891 2,297,564 182,700 2,428,233 4,908,497 96,565,512 1,543,472 98,108,984 $ (904,264) Expen- ditures transfers'; .Encum brances Actual 230,486 '1,031 231,517 545,794 1,113 546,907 298,507 10,096 308,603 478,013 57,634 535,647 1,168,629 10,102 1,178,731 716,949 222 717,171 140,542 10,225 150,767 630,700 161,228 791,928 238,887 6,039 244,926 110,661 - 110,661 1,038,791 101,539 1,140,330 2,537,481 - 2,537,481 8,135,440 359,229 8,494,669 7,357,610 8,898 7,366,508 1,264,856 8,158 1,273,014 483,040 26,637 509,677 9,105,506 43,693 9,149,199 21,489,148 170,465 21,659,613 15,139,353 92,204 15,231,557 36,628,501 262,669 36,891,170 12,019,413 2,651 12,022,064 14,410,208 - 14,410,208 5,036,650 67,012 5,103,662 646,985 - 646,985 826,686 - 826,686 72,686 - 72,686 1,5_ - 1,546,357 1,489,015 - 1,489,015 100,859 - 100,859 2,541,712 159,404 2,701,116 4,131,586 159,404 4,290,990 91,013,661 894,658 91,908,319 1,803,688 - 1,803,688 92,817,349 894,658 93,712,007 1,974,667 77 Schedule III CITY OF MIAMI, FLORIDA General Fund Statement` of Changes in Fund Balance Year ended September 30, 1978 (61,377) Excess of revenues and;_transfers; over expenditures, encumbrances and transfers ,974,667 (Increase) in reserve for noncurrent (63,765) delinquent taxes receivable Transfer of current portion of long-term judgment payable (375,000) Fund balance, September 30, 1978 $ 1,474,525 D79-365€ CITY OF MIAMI, FLORIDA Special Revenue Funds Combining Balance Sheet September'30, 1978'. Assets Taxes receivable - delinquent (less allowance uncollectible"amounts of $370,868)" Receivables from other governments for estimated Liabilities, Encumbrances Outstanding, Reserves and" Fund Balances Deficit (equity) in pooled cash and investments Accounts payable Encumbrances outstanding Reserve for noncurrent delinquent taxes receivable Fund balances - appropriate Fund balances - unappropriated 0 Total Special Tax Levy Funds Publicity and Street Pension Tourism `Lighting Federal Revenue Sharing Fund $ 173,962 148,280 13,203 12,479 2,009,477 - - 2,009477 $ 2,183,439 " 148,280 13,203 12,'479 2 009477 $ 451,075 6 34,938 54,247. (6,773) 1226" >(532,602)" 987,224. �6,110069 4,068 1,076,826 2,725 527,015 566,347 108,943 3183 13998 148,280 13,203 12,479 2,009,477 34,938 547,086 440.223 $ 81 Schedule IV CITY OF MIAMI, FLORIDA Special Revenue Funds Combining Statement;. of Revenues and Transfers Year ended September 30, 1978 Revenues: Intergovernmental revenue entitlement payments of revenues over transfers 1 Federal Publicity Revenue and Street Sharing Total Pension Tourism Lighting Fund $ 8,037906 93,177 8,298 8,351,252 418,474 10,618,741 (410,176) (2,267,489) CITY OF MIAMI, FLORIDA Special Revenue Funds (Deficiency) of revenues over transfers Reclassification of encumbrances outstanding for noncurrent delinquent taxes receivable Federal Publicity Revenue and Street Sharing Total Pension Tourism Lighting Fund $ 3,776,980 73,970 2,725 945,487 2,754,798 (2,677,665) - - (410,176) (2,267,489) 500,000 - - 500,000 43,858 34,973 3,183 $ 1,643,173 108,943 85 Schedule VI CITY OF MIAMI, FLORIDA Debt Service Funds Combining Balance Sheet September.30 Receivables`: Taxes receivable - delinquent (less allowance' for estimated uncollectible amounts.of.$473,133) Assessment liens receivable General, accounts receivable (less allowance.;;for doubtful accounts of $37,720) Accounts payable Reserve for non -current delinquent taxes Fund balances : Appropriated; Unappropriated Total=fund balances receivable Schedule VII General Orange Utilities obligation Bowl Incinerator service Total bonds bonds bonds tax bonds 2,941675 1,419,748 648,095 249,957 623,875 615. $ 3,186,282 1,663,740 648,095 250,305 624,142' 77,980`. 1,134,795 1,973,457` 3,108,252' $ 3,186,282 648,095 250000 236,700. 1,585,738 - 305 387,414 1,585,738 648,095 250',305 624 ,114 1,663,.740 648,095 250,305 624,142 87 CITY OF MIAMI, FLORIDA Debt Service Funds Combining Statement of Revenues,. Expenditures, Transfers and Changes in Fund Balance General property taxes Interest Assessment liens collections Franchise and utilities service Total revenues Transfers from other funds Total revenues and transfers Expenditures: Bond principal Bond interest tax Fiscal agents' fees and administrative charges Total expenditures Transfers to other funds Total expenditures and transfers Excess (deficiency) of revenues and transfers over expenditures and transfers Fund balances, October 1, 1977 (Increase) in reserve for noncurrent delinquent taxes receivable Fund balances, September 30 1978 Total $ 11,819,882 505,781 358,917 15,442,625 28,127,205 191,700 28,318,905 8,726,000 6,709,502 96.179 15,531,681 15,240,175 30,771,856 (2,452,951) 5,575,618 (14,415); $ 3,108,252 11,819,882' 505,781 358,917 12,684580- 8,270,000 6, 600,252 Orange Utilities bowl Incinerator bonds bonds 191,700 191,700 15,442,625 166,000 150,000 25,425 52,050 50 232 577 171,825 191,657 202,627 15,240,175 14,965,572 171,825 191,657 15,442,802 (2:,280 250305 624,114 89 CITY OF MIAMI, FLORIDA Capital Projects Funds Equity in pooled 'cash .and ,'.investments $ 50,973,378 3,675, 864- Assessment liens receivable 19120" Liabilities and Fund Balances Accounts payable Accrued liabilities salaries) Fund balances anitary:, sewers Pollution control 2,470,349 General Police facilities 3,796,771 470,,349 3,796,771 2,534 5,524 — — — 2,080 48,295,394 1 3,59,960 12,550,068 2,470",349 3,792,157, 14,182,.1"17 2,:470,349 3,796,771 Obligation Parks and recreation Highway Convention Fire facilities improvements center facilities Sidewalks Housing-- 7,492,631 3,474,301 3,705,476 6,038,733 68,616 1,296 492 282,694 1,321 7,208,616 3,2033 270,974 127,246 286,918 7,492,631 3,474,301 Schedule IX. Special Obligation Revolving Capital fund improvements 374,337 4,416,477 374,332 4,416,816 CITY OF MIAMI, FLORIDA Capital Projects Funds Combining Statement of Revenues. and Expenditures and Changes in Fund Balances Year ended September 30, 1978 Revenues: Sale of bonds Franchise revenues Interest Grants Other Project expenditures' Transfers to other funds Total project expenditures transfers Excess (deficiency) of revenues over expen- ditures and transfers? Fund balances, October 1, 1977 Fund balances, September 30 Pollution control 134' 177,134 374,518 374518 (187, 384 ) 2667,733 2470,349 General Police facilities 268,199 268,199 304,005 304.005 (35,806) 3,827,963 3,792,157 Total $-14,040,000 4',853,025 3,654,854 1,618,505 14,966 24,181,350 26,923,332 3,506,537 095,937.. 5,976,740 (814,360) (4,857,611) 4406320 17,407679 3 591960 12,550068 Obligation Parks and recreation Highway Convention facilities improvements center 11,540,000 566,476 435,000 12,541,476 13,591,006 (1,049,530) ( 7,208,616 3,203,327 23,870 Special Obligation Capital improvement 4,85i,025 2 22v 934 g 23,870\j, 5,07.959 ,215,426 3 506 L537 3,721,963 492 23,870 1,353,996 350,462 1062,481 63,694,1296,492, 374,332 4,41 6,477 CITY OF MIAMI, FLORIDA Enterprise Funds Combining. Balance Sheet September`30, 1978 Assets Equity (deficit) in pooled cash and investments Accounts receivable (net of allowance for doubt-., ful accounts of $21,265) Property, plant and equipment: Land Buildings and improvements Machinery and equip- ment Construction in progress Marine Miami Total Stadium Stadium 773,848 (100,386),> 41,442 484,889 4,561'' S8,583 1,820,107 4,836: 375,000 21,121,652' 2,254,020'' 689,097 785,439 116,985' 34,853 4'104 , 915 264 185 $ 2909.0850 2,290,280 1,199160 Orange Bowl Stadium 214,238 170,070 709,981 8,014,835 252,823 351,056 9,713,003 Liabilities, Contributed Capital and Retained Earnings Accounts payable 65,248 3,222 33,386 Accrued liabilities (principally salaries) 30,772 1,508 Deferred income 277,337 6,000 Revenue bonds payable 249000. - Total liabilities 622'357 Contributed capital and retained earnings - unappropriated 28,140,604 2,279,550 1,191',331 9,449,694 Contributed capital and retained earnings - appropriated 327,889 - - 29,090,850 2,290,280 1,199',160 9,713,003 10,730 5,120 709 10,777 2,000 219,146 94 7,829 263,309 Schedule XI Warehouse Special Marinas Auditoriums Golf property properties 142,981 208,195 120,290 3,339,972 46,714 3,738 3,861,890 9,308. 9,403 16,436 500,000 5 , 000 - 95, 000 '> 3,802,928 ;:1,156,406 444,394 1,420,000` 100,156 230,454 - 3,454 3,749,672 - 8`465,535 1,490,703 499294 1,570985 20 215''',; 3,508,576 8,445 3,861,890 8,465,535 1,490,703 20,000 249,000 269.000 220,572 1,570,900 9.722 - 499,294 1,570,985 95 CITY OF MIAMI, FLORIDA Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Contributed Capital and Retained. Earnings For the year ended September 30, 1978 Revenues: Revenue from°operations Interest Total revenues Operating expenses Net income (loss) Contributed capital and retained earning October 1, 1977 Contributions from other funds Contributed capital and retained earnings, September 30, 1978 96 Total 3,7.01,319 58,638 3 759,957 3,073,538 686,419 Marine Miami Stadium Stadium 236,032 253,163 - 4,370 236,032 257,533 275,556 248,488 (39,524) 9,045 24,491,574 2,319,074 1,182,286 3,290,500 - $ 28,468,493 2,279,550 1,191,331 Orange Bowl Stadium 961,978 14,550 976,528 811,243 165,285 Schedule XII Warehouse Special Marinas Auditoriums Golf property properties 901,695 14633'' 916,328 680,900 235,428 9,280,399 3,591 4.010. 9,449,694 3,826,743 472,550 14 224 486',774 .711,187 39,425 136,150 280`591 614,580 17,560 144,620 206,183 96,607 21,865 (8,470)? CITY OF MIAMI, FLORIDA Intragovernmental Service Funds Combining Balance Sheet eptember 30, 1978 Assets Equity (deficit) in pooled cash and<investments Accounts receivable Inventor-ies Property, plant and equipment: Buildings and improvements Machinery and equipment,. Construction in progress Liabilities .and ;Retained =Earnings Accrued liabilities salaries) ccounts payable principally' Contributed capital,, and retained earnings (deficit).- unappropriated Total ,197,802 12,525 291564 724,489 9,093,556 1,838,914 $ 13,158,850 2° 283 69,290 Public properties 24,109 16,003 40.112 2,780 683 13,037,277 36,649 $'13,158 850 40,112 MotorProperty Print pool maintenance Shop 390,545 244,934 6,154,805 2,768,800 1,838,914 - - 9;645,348 3349,801 (63,804) 9,676,575 3,37.6,062 (23425) 48769 Schedule XIII 4179-648€ Public properties 159,066 159.066 CITY OF MIAMI, FLORIDA Intragovernmental Service Funds Comb• ining_ Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnin For the year ended September 30, 1978 Transfers from other funds Total revenues and transfers Operating expenses Transfers to other funds Total expenses and transfers Net income (loss) Contributed capital and retained earnings (deficit), October 1, 1977 Contributions from other funds Contributed capital and retained earnings (deficit), September 30, 1978 Total' 6,444,862 1,657,248 8,102,110 6,187,850 44,644 6,232,494 1,869,616 1'.902' 07.2 277 161,864 40,827 202,691 (43,625) 80,274 36.649 City Mgt 3,031,140 498,501 3, 5 9 641 2,392,440 3,817 2, 3_ 96_257 1,133,384 Property Print Stationery maintenance shop stock 1,880,899 1,062,463 122,611 188,683 622,418 4,017 693 2,412 518 1,684.881 126`628 189376 ,464 1,436,227 141,580 151,275 531 619 1,904 1,904,464 1,436,'227 141,580 151,275' 054 248,654 (14,952) 38,101 508, 6,609,892 2,841,747 1,902,072 9,645,348 3,349 Motor pool CITY OF MIAMI, FLORIDA Trust and Agency Funds Combining BalanceSheet September 30 Receivables from other governments (net of allowance for doubtful accounts of $110,000 Liabilities and Fund Balances Deficit..(equity) in pooled cash and investments Accrued liabilities. Accounts. payable Deposits refundable Due to other governments rincipally salaries) Total 9,414,660 9,414,660 6,746,132 212,614 1,759,731 226,693 30,810 438,680 9,414,660 Community Development 1,533,255 1,533,255 6,767,163`. 810,008 - 304234 6,767,163 810,008 - 304,234: 766,127 6,301,140;` 6,724 742,680 17,724 1,533,255 195, 511 — 5, 283" 5, 096, ,254 780,008 1,153 26",636 186,212 30,810 20,777` 1,'825 1,327 397,027 6,767,163. 810,008 304234 209 40,481 103 CITY OF MIAMI, FLORIDA Trust and Agency Funds Comb"fining Statement of Revenues, Expenses and:Changes in Fund Balances September 30, 1978 October' Revenues - intergov,ernmental,"grants Transfers°from other funds Grant expenditures Total 299,882 26,074,069 213,000 25,713,271 4_ 438.680 Schedule XVI 6,970,388 435,000 17.724 THIS PAGE INTENTIONALLY. LEFT BLANK A statistical comparison of ten years revenues and expenditures. CITY OF MIAMI, FLORIDA GENERAL REVENUE BY SOURCE LAST TEN FISCAL YEARS City State Taxes Licenses tines yised Year end Property and and September 30, Taxes • Grants • permits Forfeitures 1978 66.66666666 37,223,048 12,101,588 4,476,690 ` 1,299,509 34,848,936 12,271,365 3,911,212 1,125,302 1976 .. ; 30,315,577 11,919,764 3,879,956 1,162,586 1975 , ; , , 26,239,664 12,456,546 3,761,602 1,225,870 1974. 22,915,782 12,524,075 4,012,672 1,243,704 1973;, , .. 21,011,368 11,452,073 4,250,789 1,090,420 1972:. .. ; , .. 24,742,993 7,961,047 3,939,992 1,141,205 1971 , . ;... , , 23,967,489 4,674,990 3,431,840 1,103,873 1970 . , 1166166 20,062,060 4,638,556 2,924,669 1,269,328 1969 .. :.:. ,164. 19,852,790 4,573,603 2,517,922 1,390,439 1978 . . 1977 . 1974 1973 . 1972 . 1971 1970 . 1969 ........... 38.9% 39.3 39.4 39.4 37.8, 38.6 49.8 52.2 50.2 51.5 Percentage of Total Revenues 12.7% 4,77o 13.8 4.4 15.5 "50. 18.7 5.5 20,6 6.6., 21.0 7.8 16,0 8.0 10.2 7.5 11.6 7.3 11'.9 6.5 108 1,4% 1.3 1.5 1.8 2,0: 2.0 2.3 3.2,::. 3,6 Contributions Use:of. Charges • From Other Federal money and Other for Funds and Revenue Prey Agencies Services Miscellaneous Sharing Total 1,359,940 5,383,073 2,244,027 23,560,894 8,037,905 95,686,674 798,920 5,111,683 2,436,838 19,398,298 8,762,903 88,665,457 1,232,227 1,732,458 2,140,251 18,012,183 6,563,430 76,958,432 1,543687 574,739 1,566,713 13,698,361 5,600,000 66,577,182 2,124,235 477,342 1,335,666 13,029,582 3,000,000 60,670,058 789,773 614,818 1,244,837 10,113,533 3,907,364 54,474,975 815158 447,754 1,096,615 9,546,588 49,691,352 739,436 84,789 1,648,692 10,219,226 45,870,605 948934 68,302 1,072,311 8,983,120 39,967,280 817,715 83,790 992,050 8,346,545 38,574,854 1.4% 5,67o . 2.3% 24.6%, g.. 5.8 2,7 21,9 1.6 2.3 2,8 23.4 23 .9 2.4 20.6.`. 3.5. .8 22 21,5 15 . 1.1 . 2.3 18.5 1.6, ,9 :` 2.2 19.2 1.6 2' 3.6 22.3 2.4 27 22.4 2.1 2 2.6 21.6 %Increase of Revenues Over Prior Year 8 4% 7.9% 9.915.2 85 15.6 8.4 9.7 50. 11.4 9.6 8,3 14.8 3.6 13,6 CITY OF MIAMI, FLORIDA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION LAST TEN YEARS Parks Fiscal Fiscal Year End Public Public and and September 30, Safety Improvements Recreation Sanitation Administrative 1978 38,122,421 6,234,468 5,103,662 12,022,064 6,012,427 1977 37,155,825 5,805,270 4,106,840 10,375,192 6,833,585 1976........ 33,592,159 5,677,643 4,117,516 10,400,131 5,536,357 197530,226,057 5,797,969 3,831,500 9,630,421 4,795,299 1974 25,444,701 5,176,162 3,347,083 8,507,417 3,979,445 1973 23,146,577 4,713,406 3,059,575 7,785,445 3,201,220 1972 .... 20,717,608 3,947,743 3,045,680 7,125,771 2,736,056 1971 20,220,729 3,717,559 2,821,648 6,970,912. 2,688,011 1970.. ........ 17,942,085 3,327,178 2,451,524 4,732,024 2,505,331 1969 16,472,030 3,209,982 2,465,029 4,001,667 2,298,287 *General Purpose Accounts include Building Costs, Fringe Benefits and Other General Expenditures. **The operations of the Libraries and the Hydrant Service were transferred to Metropolitan Dade County. ***Prior to, and including 1975, the costs of the Group Insurance and Social Security are included in Pensions. Percentage of Total Revenues 1978 ....`......: 40.7% 6.7% 5.5% I2.8% 6.470 1977 ....,..... 41.8 6.5 4.6 11.7 7.7 1976 ... ....... 42.7 7.2 5.3 13.2 7.0 1975 ........ 41.3 8.0 5.2 13.2 6.6 1974 .... 42.0 8.6 5.5 14,1 6.6 1973 . . 43.2 8.8 5.714.5 6.0 1972 43.3 8.2 6.3 15.0 6.0 1971 .:.......... 43.0 8.0 6.0 14.8 5.7 1970 .......... 43.7; 8.1 6.0 11.5 6.1 1969 ..... 42.3 8 2 6.3 10.3 5.9 110 :. r Pensions 14,410,208 1,250,991 11,003,921 1,292,173 8,741,067 1,288,725 10,266,025*** 1,483,296 7,277,231 1,398,783 5,875,635 4,897,069 4,537,380 3,612,402 3,645,687 Publicity 1,204,927 1,151,801 924,406 901,222 974,901 Lighting 2,914,731 2,739,047 1,380,178 1,188,716 378,754 1,216,546 1,060,828 892,995 812,251 758,339 Libraries 478,191** 2,635,865 2,218,435 2,208,053 Hydrant senice 350,193** Gummi Pew* Accounts 7,641,035 9,594,558 7,984,693 5,873,041 5,015,178 3,386,870 2,576,508 1,540,664 2,531,804 2,538,655 Total 93,712,007 88,906,411 78,718,469 73,092,324 60,524,754 53,590,201 47,737,255 46,950,169 41,034,256 38,922,823 % Increase Decrease of Expenditures Over Prior Year I5.4% 1.3• 8.1% 10.8 12.9 70 33:11% 1.4 12.4 11.0 1.7 1.8 8.0 20.8 10.1 7.7 13.0 1.6 8.3 12.0 2 11,0 2.2 • 2.3 6.3 5.4 12.3 10.22,0 114.4 2.49,6 Iu 5.4 1.0 5'4 7 2.8 2.2 2.0 2,0 65 0 2.2 2.0 5 7 6' 12 0 3 5.4% • . op?. 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