The URL can be used to link to this page

Home My WebLink AboutCC 2008-08-25 PresentationT-,- City of Miami Financial Statement Presentation September 30, 2007 ■ External Auditors — McGladrey & Pullen, LLP ■ Donnovan Maginley —Partner ■ Scott Montgomery - Manager Fiscal Year 2007 Audit Issues ■ Implementation of new Financial Management System - Oracle Went live with Oracle on October 1, 2006 First year closing books on new system . Difficult but successful implementation Implementation on going . Fixed Assets Module . HR and Payroll . Labor Distribution Fiscal Year 2007 Audit Issues ■ Delays encountered with Issuance of Financial Statements riNew system implementation Fieldwork started 2 months late Change in external auditors Dispute with prior year auditors Restatement of prior year Single Audit & Mgmt Letter pending September 30, 2007 ■ Introductory Section • Three Components Chart of Principal Officials Letter of Transmittal Organization Chart grillarillErarikW1--' Financial Section • Independent Auditors Report n Unqualified opinion • Management's Discussion and Analysis n Discussion of the City and the results of operations • Basic Financial Statement D Includes government wide statements on the full accrual basis of accounting as well as statements for the governmental funds on the modified accrual basis of accounting • Required Supplementary Information El includes budgetary comparison schedules and pension schedules • Combining Statements n individual fund financial statements of the non -major governmental and fiduciary funds • Statistical Section • Includes trend information of various financial and operating aspects of the City including Financial Trends Revenue Capacity Demographics and Economic Information Operating Information Statement of Revenues, Expenditures and Changes in Fund Balance (page 17) Focus is on General Fund (Fund Level): ■ Revenues for the Fiscal Year totaled $490 Million ■ Expenditures totaled $529 Million ■ Other Financing Sources (transfers in/out) $13.8 Million ■ Fund Balance decreased by $25.8 Million Decrease primarily a result of fire fee settlement, union contract payments and the net effect of various inflows and outflows during the fiscal year ■ Ending Fund Balance for General Fund totaled $100,450,144 Balance Sheet (page 15) Focus is on General Fund (Fund Level): • Assets for the year totaled $178.5 Million • Liabilities for the year totaled $78 Million a Fund Balance o Unreserved, designated includes the amounts designated In the subsequent years budget of $12.5 Million which represents the amount of surplus that was used to balance the 2008 budget for Strategic initiatives of $1.65 Million which are amounts appropriated in future years for certain projects for Management Initiatives of $41.9 Million: • Amounts set aside in accordance with the City's Financial Integrity Ordinance (10% of average of 3 years of revenues) • Unreserved, Undesignated Fund Balance totals $40.63 Million and is available to meet the future needs of the City. Statement of Net Assets (page 13) Presented on the Full Accrual Basis of Accounting: Includes significant long term obligations, such as claims payable and compensated absences, as well as the outstanding debt issued where there is no offsetting capital asset Reflects all liabilities that are not related to the governments capital assets and are not expected to be repaid from restricted assets Net Assets increased by S7.4 M to $739.1 Million $730.2 Million is invested in capital assets net of related debt (not available for spending) Other Restricted Assets (not readily available for use) totaled $102 Million ■ inumminummima Statement of Activities (page 14) ■ Charges for Services totaled $141.2 Million ■ Operating Grants totaled $71 Million ■ Capital Grants totaled $69 Million ■ Investment Earnings totaled $23.8 Million ■ Impairment loss on Capital Assets realized from demolition of Orange Bowl Stadium totaling $23.6 Million ■ ■ GASB 45 — Other Post Employment Benefits (OPEB) ■ Financial reporting provision requiring government employers to measure and report the liabilities associated with other post employment benefits (or OPEB) including post -retirement medical, pharmacy, dental, vision, life, long-term disability and long-term care benefits that are not associated with a pension plan. SAS 112 — Communicating Internal Control Related Matters Identified in an Audit • Affects the nature, timing and extent of audit procedures performed by the auditor • Establishes standards, responsibilities and guidance for auditors during a financial statement audit for identifying and evaluating a government's internal control over financial reporting • Change in the way control deficiencies are evaluated and communicated by the auditors City of Miami BUDGET WORKS Op Fiscal Year 2009 Economic Foreca Fuel Prices Gasoline prices are projected to average 53.82 per gallon compared to $2.81 per gallon atthe startOf FY'08 Diesel prices are p ejected to average 54.27 per gallon compared '• 52.88 per gallon at the StartOF FY'08 overall, fuel expenses are forecasted increase by 40% from 55.lm to 57.1 m in FY'09 Source: Depa Enem, August 8 S c TermEn 0 look Utilttv Costs On July 1, 2008 e PSC approved an adjustmentto FPLs pass rough fuel surcharge On average, electiicity prices are anticipated to increase from 58.6 cents per kilo hour in FYI08 to 510.1 in FYJ09 utility costs are forecasted to increase 20% in FY'09 Forecast may vary Source: fil1 mDc a En Energy Io, h -Term End'"' Outlook -August 2008 Housing Prices Average Homestead Residential Taxable Values doM1 6.2°,'b from 5152,075 5142,618 Average Residential Market Values di 6.3% 'Orfl 5349,776 to 5329,1 Overall, Gross Taxable value increased by 4.7%from 539.1 billion to $40.9 billion New Construction = Si .8 billion Sour laini-Da IeCo'ntv Pr Appnis" . i Services DMson 5 Total Revenues and Fiscal Years 2003 to 2008 General Fund Financing Sources $600 $500 $400 c 0 $ 00 $200 $100 - • - FY 2003 FY 2004 FY 2005 Source: City of Miami C isive nual An.incial Repots -14.08% s NNXI $52 1sh.k r • 5.73% FY 2006 FY 2007 FY 2008 Five Year Projected Average Tra nsfe rs- N Revenues 5-Year Average Revenues and Other Sources by Source Fiscal Years 2004 to 2008 General Fund Intergovernmentali Revenues $51,304,221 10% .o.444.04• .414,004,0,90.04-- 004.044..04,40..00.. r. &&&&& ........... .......e.....0 ....44,04o00.4,044....4.4•4141 4,0.4.4.1.406.0416414,4,44,4.41 4444,1444.6.4.4,004141,041.44.4141 -..tada.ostkoremottrotiods 6*96175 VOZS$ aSeiaAv paparoid W8LS$ eatc, anH 200? Ai LOOZ Ai sainivuadx3 Si ue.u. sliodad icoucqj icnulry aAswLg,cL1OJ!Luc! 01 Z't76t7$ 0I19t, LIOEtr$ L.T6ES 900Z Ad SON Ai VOOZ AJ E00? Ad 00E 00 (JOSS 1 009$ 0 Lin sasn bui punk ialaueo 800Z OEg 200z sJeaA insid Jaw pue sampu3dx3 jaoj 5-Year Average Expenditures and Other Uses by Function Fiscal Years 2004 to 2008 General Fund 14.0v1 I iNui i 1 1 1 1 s1 1U J 1 'LA vs. Total Expenditures and Other Uses Fiscal Years 2003 to 2008 114.011 4.40' 1 $5788 $575 c 0 494.2 54253 $ 92.0 FY 2003 FY 2004 FY 2005 FY 2006 54412 Source: MiamiCmpretielsive Annual Finandal Rem $520.1 1.2 FY zoos FY 2008 Projected -Expenditures Revenue Comparison of T. I Revenue and Other Sources vs. Total Expenditures and Other Uses Fiscal Years 2003 to 2008 General Fund $575 $525 up) c 0 $475 $425 $375 $0.3 - $25.8 19.7 9.2 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Projected u Miami Comprehensive Annual Financial Reports -Expenditures Revenue 11 Impacts to City of Miami in FY" • HouseBiIi1B endment 1 and Glitch Bill Union Contracts Health Care Costs State Revenue Sh gyring 12 House Bill 1 B Passed by the State Legislature in 2007 Limits the increase in e City's rolled back millage rate from year-to-year - Adjustrnentfor change in per capita Florida personal income. Passed with a majorityvote - Can be increased up to 10% with a 4I5 vote - Can be increased greater than 10% with a unanimous vote or voter referendum 13 House Bili IB City removed • list oFmuncIpaIites under special financial concern in 2007 Adjusted the Cites prior year maximum millage rate from 7.2999 mills to 6.6429 mills 6.9764 maximLrnmillage ratewThiijorty vote 7.6740 maximum millage rate w/415th vote Arnendment Approved by the v• ers on January 29, 2008. Provid -• an additional 525 k exemption on the 3rd 525k of assessed value on homestead properties Provided a personal prop 25k exemption on tangible on businesses 15 Amendment 1 Provided 5500k of Save Our Homes up Reduc. Current Year Gross Taxable values by $1,2 billion in Tax Year 2008 City's Current Year Gross Taxable Values increased by 1,6% in Tax Year 2008 compared to 14.5% in Tax Year 2007 16 SB 1588 -Glitch Bill Changed the calculation oflile rnaximixn millage rate w a major vote Takes out' e «ctsofAmendnienti Does not eftectiiie calculation of the maximum millage rate with a 4/5th vote Dropped maximum millage rate with a majority vote from 6.9764 to 6.7513 17 SB 1588 -Glitch Bill At e C ity's prosedmHIrateoF7.674O mills and with SB 1588, City prope taxpayers will receive a savings of more than S9m in FY'09. union Con Across e-board increase efte October 1, 2008: — AFSCME 1907 OF 3% AFSCME 871 OF 3% — IAFF Of 5% — FOP Of 4% — All Others 3% Other Impacts 14.2% increase in overall health plan costs estimated in calendar year 2009 7.3% decrease in State Revenue Sharing and Half Cent Sales Tax Annual co bution � OPEB of S20 million 20 General Fund Revenues finflows) Property Taxes Franchise Fees and Other Taxes interest Transfer -in Fines and Forfeitures Intergovernmental Revenues Licenses and Pen -nits Other Revenues Fund Balance Allocation Charges for Services Actual Budciet FY'08 9/30/07 Change Adopted Change 258,756,957 201% 261,026,148 Budget FY'09 Projected Change 2.2% 268,217 693 42,257,282 2.2% 37,005,000 2.6% 16,248,307 61,125 632 5,283,695 53,659,937 33,046,334 3 734,189 45.8V 17.3% 2.1% 0,7 16.1 32.9% 25,023,206 -23.80/ 78,896 704 -14.20/0 Total Revenues (Inflows) 578 0 8 115,000 39,492 737 5 208,555 41 151,996 29,658,555 3,655,100 15,550,000 82,850,712 2,244 7.8% 52 0.2% 7.5% 13.3cY 1.1% 3.1% 5 8,800,000 43 989,572 5,967 326 39 159,539 28,784,757 2 037 742 5,000,000 80 531 000 2. 8 % -4.8% -2.9% 44.2% 67.8% 2.8% 711 O. General Fund Expenditures (Outflows) General Government Planning & Deveioprr Public Works Public Safety Public Facilities Parks & Recreation Risk Management Pensions Non Departmental Capital improvement Administration (Transfers -OUT) Actual Budget PC08 9/30/07 Change Ad 43,910,699 18.3% 10,814,727 14.6% 56,376,607 11.5% 235,497,950 25.3% 7,419,797 0.9% 20,201,873 33.7% 53,238,388 108.4% 70,708,285 -113% 28,490,229 104.1% 3,104,627 100.00/0 49,052,224 16.2% 11: • % Budget Chang FY'09 Chang e Projected 45,570,476 -0.7% 11,771,871 56,820,488 215,692,574 7,478,665 21,732,908 52 420,609 65 945,032 8.9% 0.8% -8.4% 0.8% 7.6% -1.5% -6.7% 13 058,141 -54.2% 3 294,574 6.1% 29,928,465 -39.01/0 Total Expendih i.res (OUtinaNS) 578,815,407 17.1% 523,713,803 -9.59/ (Less): Fund Balance Allocation (25 023,206) Revenues (Inflows) Over(Under) Expenditures (Outflows) (25 806 368) 48,588 292 12,298 070 61,821 383 232,164 863 7,010 555 24,649 605 52,788 467 66,898 111 6.6% 4.5% 8.8% 7.6% -6.3% 1 314% 0.7% I .4 % (4 118,018) 131.5% 3,242,235 -1.6% 49,165 524 64.3% 54 509 088 5.9% (34,965 377) 22 Que ons 23 (Transfers -OUT) $44,130,853 11% Pension $26,337,939 7% Risk Management $44,495,198 12% Expenditures (Outflows) -General Fund FY 2003 Other $32,687,302 8% Planning & Development $7,148,402 / Parks & Recreation $12,601,390 3% General Government $28,665,103 101101111..11111.11011 OM A. Mk MI6 MOON* wall* 111116.Yo MI,1915 J. me •111,14.111Nt RR .16. mime aft ow am 1.1111.110 MP MIN MN MP Me*. 1..111. WC limo IOW* IANNIXO IMP 0111111111." WO Other 1 Public Facilities $5,253,989 7% 1 Non - Departmental $20,284,911 Public Works $46,446,061 12% Public Safety $156,298,384 40% City of Miami -Office of Strategic Planning, Budgeting, and Performance (Transfers -OUT) $32,142,211 7% Pension $54,744,809 13% Risk Management $48,751,523 11% Expenditures (Outflows) -General Fund FY 2004 Other $27,650,803 6% Parks & Recreation $11,928,996 3% General Government $37,074,406 9% oww.raw>r...wa.w..w*row ... O 010101011. MR AM M. MAIM 01.0111 ON OM Mt NM ON WM M11.111.1. egree von, not wit maw.. MMA.111110 eirsik Miff MONO "MOWN, OM NY.. oho riela ® M. r': —" -awry Other Planning & Development $8,050,912 t Public Facilities $4,943,652 1 Non - Departmental $14,656,239 Public Works $50,705,503 12% Public Safety $167,729,434 39% City of Miami -Office of Strategic Planning, Budgeting, and Performance (Transfers -OUT) $23,862,197 5% Pension $73,862,309 16% Risk Management $51,164,719 11% Expenditures (Outflows) -General Fund FY 2005 Other $29,176,476 6% 1 Parks & Recreation $16,183,928 4% Other General Government $36,471,297 8% Planning & Development $9,263,666 Public Facilities $5,053,927 1 Non - Departmental $14,858,883 Public Works $48,280,900 10% Public Safety $181,982,938 40% City of Miami -Office of Strategic Planning, Budgeting, and Performance Expenditures (Outflows) -General Fund FY 2006 Other $30,756,355 6% (Transfers -OUT) $42,209,286 9% Pension $78,864,757 16% Risk Management $49,952,316 10% Planning & Development $9,440,759 Parks & Recreation $15,111,916 3% MM.! MIN UN MUM • AMA&®.:— te Msa KNw*Rilw 411. General Government $38,809,266 8% Other Public Facilities $7,355,457 Non - Departmental $13,960,139 Public Works $50,573,908 10% Public Safety $187,938,096 38% City of Miami -Office of Strategic Planning, Budgeting, and Performance Expenditures (Outflows) -General Fund FY 2007 Other $46,724,755 8% (Transfers -OUT) $49,052,224 8% Pension $70,708,285 12% Risk Management $53,238,388 9% Planning & Development $10,814, 727 1 Parks & Recreation $20,201,873 4% General Government $47,015,325 IMP 0.1.11•1 Mt NM Me yine MN • V* Alf•' - egp 11011111111111111../a MINA* $11.11•10 MO IN Other Public Facilities $7,419,797 8% 1 Non - Departmental $28,490,231 Public Works $56,376,607 10% Public Safety $235,497,950 41% City of Miami -Office of Strategic Planning, Budgeting, and Performance Expenditures (Outflows) -General Fund FY 2008 Other $24,006,003 4% (Transfers -OUT) $14,136,049 3% Pension $65,917,207 13% Risk Management $52,268,481 10% Parks & Recreation $22,215,936 4% Other General Government $40,801,015 8% Planning & Development $11,161,982 Public Facilities $6,262,296 1 Non - Departmental $6,581,725 Public Works $56,354,936 11% Public Safety $244,394,487 47% City of Miami -Office of Strategic Planning, Budgeting, and Performance Revenues (Inflows) -General Fund FY 2003 Other $17,828,902 5% Charges for Services $86,182,827 22% Licenses and Permits $21,469,973 5% Property Taxes $139,604,223 36% Franchise Fees and Intergovernmenta{ Other Taxes Revenues $31,556,387 $44,071,524 8% 11% (Transfers -IN) $51,282,877 13°Jo Other Interest $7,280,372 Fines and Forfeitures $5,049,412 Other Revenues (Inflows) $5,499,118 City of Miami -Office of Strategic Planning, Budgeting, and Performance Charges for Services $87,591,034 21% Licenses and Permits $23,011,688 5% Intergovernmental Revenues $49,260,814 12% Revenues (Inflows) -General Fund FY 2004 1 i�.isfh�il+ Other $22,073,820 _5% (Transfers -IN) $49,400,444 12% Other Interest $5,438,411 Fines and Forfeitures $4,732,357 1 • Other Revenues (Inflows) $11,903,052 Property Taxes $159,391,679 37% Franchise Fees and Other Taxes $34,988,629 8% City of Miami -Office of Strategic Planning, Budgeting, and Performance Charges for Services $91,979,456 21% Licenses and Permit $27,394,427 6% Intergovernmental Revenues $49,790,494 11% Revenues (Inflows) -General Fund FY 2005 Other $13,689,896 3% (Transfers -IN) $43,484,074 10% Other Interest $4,404,529 Fines and Forfeitures $4,980,002 Property Taxes $178,979,987 41% Franchise Fees and Other Taxes $35,918,724 8% Other Revenues (Inflows) $4,305,365 City of Miami -Office of Strategic Planning, Budgeting, and Performance Revenues (Inflows) -General Fund FY 2006 Other $21,882,946 _4% Charges for Services $91,980,596 18% Ii�i'►i"i��i'i"i'��i'r i'ir Licenses and Permi $28,468,593 6% Intergovernmental Revenues $53,266,529 11% ++.++i ++++++ .4..44.. +.++f#i+......** ++++++++F+ ♦+++++�► ... N++++i►+Ir+ +Ni♦+N++++ +++i+++++++++ •+++*++.+•++♦+' }+++++.+++}++►+ 1 ++++.+.1'... . ++++++++++++++ ++R++++...... AF++++*+• +++It+++ „, (Transfers -IN) $52,097,226 10% r Franchise Fees and Other Taxes $41,342,214 8% Other Interest $11,144,320 Fines and Forfeitures $5,175,457 Other Revenues (Inflows) $5,563,169 • Property Taxes $214,329,257 43% City of Miami -Office of Strategic Planning, Budgeting, and Performance Charges for Services $78,896,704 14% Licenses and Per $33,046,334 6% Intergovernmental Revenues $53,659,938 10% Revenues (Inflows) -General Fund FY 2007 (Transfers -IN) $61,125,632 11% Other $25,266,191 4% aA*�'►i!a��!s!a�� Franchise Fees and Other Taxes $42,257,282 8% Other Interest $16,248,307 f Fines and Forfeitures $5,283,695 t (Other Revenues (Inflows) $3,734,189 Property Taxes $258,756,957 47% City of Miami -Office of Strategic Planning, Budgeting, and Performance Revenues (Inflows) -General Fund FY 2008 Charges for Services $78,267,522 15% Licenses and Permits $27,450,000 5% Intergovernmental Revenues $50,543,332 10% (Transfers -IN) $43,448,855 9% Interest $8,115,000 Other $19,391,562 4% Franchise Fees and Other Taxes $35,380,059 7% Other Fines and Forfeitures $6,184,955 Other Revenues (Inflows) $5,091,607 _ Property Taxes $256,723,432 50% City of Miami -Office of Strategic Planning, Budgeting, and Performance