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HomeMy WebLinkAbout10-00314 Submittal-Basic Financial StatementsCITY OF MIAMI SOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY (A Component Unit of the City of Miami, Florida) Basic Financial Statements September 30, 2009 (With Independent Auditor's Report Thereon) THE CITY OF MIAMI SOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY (A Component Unit of the City of Miami, Florida) Table of Contents Independent Auditor's Report Page 1 Management's Discussion and Analysis (Required Supplementary Information) 2-6 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Assets Statement of Activities Fund Financial Statements: Balance Sheet — Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds 7 8 9 10 Notes to Basic Financial Statements 11-18 Required Supplementary Information (Unaudited): Budgetary Comparison Schedule — General Fund 19 Budgetary Comparison Schedule — Special Revenue Fund 20 Note to Required Supplementary Information 21 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 22-23 Submitted into the public record in connection with items on 3-15-10 . Priscilla A. Thompson City Clerk Independent Auditor's Report Submitted into the public record in connection with items #2- on do.3 Priscilla A. Thompson City Clerk SKJ Independent Auditor's Report The Board of Directors City ofMiami Southeast Oxrtnwn Park West Redevelopment Agency: 5805 Blue lAgoon Drive Miami, Florida 3312,6 We have audited the accompanying basic financial statements of the governmental activities and each major fund of the City of Miami Southeast Ovmdown Park West Redevelopment Agency (the Agenqy), a component unit nfthe City of Miami, Florida (the City), as of and for the year ended September 30, 2009, which collectively comprise the Agency's basic financial statements. as listed inthe table of contents. These financial statements are the responsibility of the Agency's management. Our responsibility is to express opinions on these financial statements based onour audit. We conducted our audit inaccordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Go,ommo/tAuditing Standards, |ouuod by the Comptroller General of the United States. Those standards require that we plan and perform the audit to utda|n reasonable assurance about whether the financial statements are hem of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Annonding|y, we express no such opinion. An audit includes exomining, on e test baoio, evidence supporting the amounts and disclosures in the financial obsbamento, assessing the accounting principles used and significant estimates made by managwmont, as well ooevaluating the overall financial statement presentation. VVe believe that our audit provides reasonable basis for our opinions. In our opinion, the financial statements referred 1oabove present fairly, in all material respects, the respective financial position ofthe governmental activities and each majorfund ofthe Agency uoofSeptember 3S'2O08. and the eopmobve changes in financial position thereof for the year then ended in conformity with U.S. generally accepted accounting principles. In accordance with Government Auditing Standards, we have issued our report dated November 25.2009on our consideration of the Agency's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose cfthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the naau|to of that temtinQ, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral port of an audit performed in accordance with Government Auditing Standards and should beconsidered inassessing the results wfour audit. The management's discussion and analysis on pages 2thmugh 8 and the budgetary comparison information onpages 1Sthrough 21are not arequired part of the basic financial statements but are supplementary information required by U.S. generally accepted accounting principles. We have applied certain limited prooedurau, which consisted principally ofinquiries of management regarding the methods of measurement and presentation of the required supplementary information. Hmwover, we did not audit the information and express ooopinion onit, ,? Submitted into the public record ioconnection with items VLwn 3-15'10 . Priscilla A.Thompson City Clerk Management's Discussion and Analysis Submitted into the public record in connection with items tn, on 3-15-10 . Priscilla A. Thompson City Clerk CITY OFM8IAM|SOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY (AComponent Unit o[the City o[Miami, Florida) Submitted into the public record inconnection with items #9_ on 3'15-10 . Priscilla A'Thompson City Clerk Management's Discussion and Analysis Unaudited This section of the City of Miami Southeast OvertownPark West Redevelopment Agency (the Agency) financial statements presents management's analysis ofthe financial performance for the fiscal year ended September 3O.3O08. This discussion addresses whether or not the Agency as a whole is better off or worse off aomresult ofthis year's activities. Overview The purpose of the Agency is to eliminate blight and slum conditions within the redevelopment area of the Agenoy, pursuant to the redevelopment plans of the Agency for new residential and commercial activity in the Southeast 0vertownarea. The Agency's primary source of revenue istax'inonamen funds- This revenue is computed by applying the operating tax rate for the City and the County, multiplied by the increased value of property located within the boundaries of the redevelopment areas of the Agency, over the base property value, minus 5%. Both the City and the County are required to fund this amount annually without regard totax collections or other On August G. 2007. the City, County and The ChUdren'o Trust (the Trust) entered into on |nb»dooa| Agreement with the Agancy, whereby the Agency would receive from the Trust, on an annual basia, tax increment revenues derived from the imposition of half -mil tux levied by the Trust against real property located within the redevelopment district (referred toomTrust revenues). The agency agreed to use the Trust revenues for debt service on, and other obligations relating to, existing debts of the Agency only after all other available tax increment revenues have been exhausted for such purpona, and to remit bothe Trust on the last day of the Agency's fiscal year, all of the Trust revenues that are not needed for debt service on, orother obligations relating to, existing debts ofthe Agency. Further. the Agency's policy is set by a board of directors comprised of the five members of the City commission and are smpanate, distinct and independent from the governing body of the City; and it's management plan is executed by a small professional staff led by its executive director. Financial Hiohliqhhm The assets of the Agency exceeded its liabilities at the close of its most recent fiscal year by $25.814.829. Of this amount. $5.090.828 was invested in capital monots net of related debt, $782.270 was restricted for debt service, *3.130.886wos restricted for capital projects, and $16.483.835wos restricted by enabling legislation. This rcou|b:d in an mxoeoo of$318.i30 (unrestricted net assets) available to meet the Agency's obligations tncitizens inthe Southeast Overtownarea. At the close of the current fiscal year, the governmental funds reported combined ending fund balances of $20,851,149, an increase of $3,137,670 in comparison with the prior year. Overview to the Financial Statements This discussion and analysis is intended to eenm' as an introduction the Agency's basic financial statements. The Agency's basic financial statements are comprised ofthree components: • Government -wide financial statements • Fund financial statements • Notes to the basic financial statements In oddiLion, the Agency repods, as required supplementary infonnaUon, a budged to actual comparison and notes to the required supplementary information. CITY 0FKAIAM|SOUTHEAST QVERTOVVN PARK WEST REDEVELOPMENT AGENCY (AComponent Unit ofthe City ofMiami, Florida) Management's Discussion and Analysis Unaudited September 38.2UOS Government -wide Financial Statements The e financial statements are designed to provide readers with a broad overview of the Agency's finoncem, in a manner similar to o private -sector business (i.e. economic resources and measurement focus). The statement of not assets presents information on all of the Agency's assets and |iabUitien, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Agency is improving or deteriorating. The statement of activities presents information showing how the Agency's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon amthe underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thuo, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. The government -wide financial statements may be found on pages 8 and 9 of this report. Kurd Financial Statements Afund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Agency, like other state and local governments' uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. All of the funds ofthe Agency are categorized aagovernmental funds, Governmental funds are used to account for essentially the aomm functions reported as governmental activities in the government -wide financial statements. Howover, unlike the government -wide financial stabaments, governmental fund financial statements focus on near -term inflows and outflows ofexpendable naaouncea, as well an on bm|anoaa of expendable resources available at the end of the finoa| year. Such information may bmuseful |nevaluating agovernment's near -term finanoingrequirements, Because the focus cfgovernmental funds isnarrower than that cf the government -wide financial statements, it is useful bocompare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements, By doing ao, readers may better understand the long-term impact ofthe government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Agency maintains hour individual governmental funds, Information is presented separately in the governmental fund balance sheet and in the governmental fund statement ofrevenues, expenditumo, and changes in fund balances for the General Fund, Special Revenue Fund, Debt Service Fund and Capital Projects Fund. The basic governmental fund financial statements can be found on pages 10 and 11 of this report. Notes bothe Basic Financial Statements The notes provide additional information that ioessential hoofull understanding ofthe data provided in the governmonhwideand fund financial statements. The notes huthe basic financial statements can be found on pages 11ho18ofthis report. Submitted into the public record in connection with 3 items M on 3-15'10 . Priscilla A'Thompson City Clerk CITY OFA0|AM0|SOUTHEAST 0VERT0WN PARK WEST REDEVELOPMENT AGENCY (A Component Unit of the City of Miami, Florida) Management's Discussion and Analysis - Unaud1ed Budgetary Highlights The Agency adoptsmn annual budget on an individual fund basis. Budgetary comparison schedules have been provided for the General Fund and Special Revenue Fund hodemonstrate compliance with the budget onpages 1Qand 2O.respectively, nfthis report. The following is m brief review of the variances from the final budget to actual amounts for the General Fund (please see budget hoactual comparison onpage 1Q): " The change in final budget to actual for parking fees was o result ofno amounts budgeted for the use of the parking lots owned by the Agency and managed by the Miami Parking Authority. " The change in final budget to actual for general government expenditures was mainly a result of payroll expenditures budgeted higher than actually expended. The following is a brief review of the variances from the fimd budget to actual amounts for the Special Revenue Fund (please see budget hzactual comparison onpage 20): " The change in final budget to actual for community redevelopment was a result of redevelopment projects planned that either did not commence or were not completed as planned. FinancinAnmlvsis Analysis Our analysis ofthe financial statements ofthe Agency begins below. The Statement ofNet Assets and the Statement of Activities report information about the Agency's activities that will help answer questions about the position ofthe Agency. Acomparative analysis ioshown below. Asummary ofthe Agency's net assets ispresented hnTable A+1 and osummary nfchanges innet assets is presented in Table A-2. Table A-1 Summary of Net Assets Current assets Capital assets, net Total assets Current liabilities Non -current liabilities Total liabilities Investment incapital assets, net cfrelated debt Restricted Unrestricted Total net assets 4 Fiscal Year Fiscal Year 2009 2008 $21.547.504 $20.271.270 8.024.492 8.750.738 30.171.996 29.022.008 698.355 2.557,813 8.680.812 3.775.109 4.357.167 6.332.900 5,090,628 20,406,071 318138 2 5,031,874 17,270,278 386,956 22­689.1D8 Submitted into the public record imconnection ~vith items h9L on 3-15-10. Priscilla A. Thompson CITY 8fMUAM|SOUTHEAST OVERTBVVN PARK WEST REDEVELOPMENT AGENCY (AComponent Unit ofthe City nfMiami, Florida) Management's Discussion and Analysis -Unaudited Government -wide Analysis (conbnumd) ° Current assets increased in the current year mainly as a result of an increase in equity in pooled 000h from the prior year. • Current liabilities decreased in the current year as a result ofthe decrease in construction costs accruals from the prior year. ° A portion ofthe Agency's not assets ($5.090.628) reflects its investment in capital assets (e.g. furniture and equipment, infrastructure and land), |emm any related outstanding debt used to acquire those assets. These assets are not available for future spending. = Another portion of the Agency's not assets ($20.406.071) represents resources that are subject to external restrictions onhow they may beused. • The remaining portion ofthe Agency's not 000eta ($318.130) represents veauurmaa that are unrestricted and available for any lawful use bythe Agency. Table A-2 Summary mfChanges in Net Assets Fiscal Year 2009 Revenues: Intergovernmental: Operating Charges for services: Parking fees General revenues: Tax increment revenue Sale cfproperty Interest revenue Other Total revenues Expenses: General government Community redevelopment Interest onlong-term debt Total expenses Change innet assets Net assets, beginning ufyear Net assets, end ofyear Fiscal Year 2008 717'723 $ 727.238 7.848.613 6.012,257 739.468 635,134 261.305 647.138 20.513 127.420 9.844.807 8.457.671 1,325,921 5,230,177 162,988 6,719,086 1,176,082 6,716,981 178,075 8\O71 138 3.125.721 386.533 22.689.108 22,302.575 $25,814823 $22689108 • The inone000 in tam increment revenue is o eouh of the increase in the payout from the City and the County. ° The decrease in community redevelopment expenses was a result ofthe bulk of project expenditures occurring during the prior year, mainly the NW 3r' Avenue 8toeetscape proienL Submitted into the public record kmconnection with 5 items #X on 3-15-10 . Priscilla /k.Thompson City Clerk CITY OFK8KAA8|SOUTHEAST OVERT0WN PARK WEST REDEVELOPMENT AGENCY (A Component Unit of the City nfMiami, Florida) Management's Discussion and Analysis - Unaudited Individual Fund Analysis Fund balance for the General Fund increased from $443.201 at September 30. 2008 to $445.078 at September 30. 2009. The fund balance for the Special Revenue Fund increased from $11.894.438 at September 30. 2008 to $16.483.885 at September 30` 2009. Fund balance for the Debt Service Fund decreased from $2,177,915 at Sepb*mbor3O. 2008hoa782.270 etSeptember 3D. 2009. Fund balance for the Capital Projects Fund increased from $3.OQ7.025atSeptember 30.2008Vn$3.13U.UGGatSeptember 3O. 2008. Since the Agency only has governmental funds/octivideo, the changes in fund balance also explain the increases innet assets. The following are key factors inthe changes infund balances for 20O8: = The increase in fund balance in the Special Revenue Fund was mainly due to the increase in tax increment revenues and the transfer from the debt service fund • The decrease in fund balance in the Debt Service Fund was o result ofthe one time transfer to the Special Revenue Fund. • The increase in fund balance in the Capital Projects Fund was o result of interest income earned during the year. Capital &momta As of m investment in capital asaets, not of accumulated depreciation, amounted to $8,624,492, decreasing from $8,750,738 as of September 30, 2008. Summary ofCapital Assets (Net of Depreciation) Fiscal Year Fiscal Year Land $ 3i944.507 8 3.688.307 Furniture and equipment 15.887 25.762 Infrastructure 4.604.208 5.036.009 Total capital assets $ ~��:���� $ 8.750'738 Additional capital asset information can befound onpage 14ofthis report. Debt Management As of September 30. 2009. the Agency had $3.533.864 of special obligation bonds and loans outstanding compared to $3.718.884 as of September 30. 2008. The bonds and loans are secured by o pledge of guaranteed entitlement revenue received from the State ofFlorida and the tax increment revenue amounts received from the City and County. Nuadditional debt was issued during fiscal year 2UUQ Additional long-term debt information can be found on pages 15 and 16 of this report. Requests for Information This financial report is designed to pnmkdm a general overview of the Agency's finances. Questions concerning any of the information provided in this reportor requests for additional information should be addressed to the Executive Dineutor, 49N.VV� 51h8treet. Gu/b: 100. Miami, Florida 33128. G Submitted into the public record in connection with items 0L on 3'15-10 . Priscilla A. Thompson City Clerk CITY OPNXIAM|SOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY (A Component Unit of the City of Miami, Florida) Statement ofNet Assets September 3O.2OU8 Governmental Activities Equity inpooled cash $ 20,677.370 Restricted cash 782.270 Other receivable 42.686 Interest receivable 45.178 Capital assets (net ofaccumulated dopnaciadon): Land 3.844.507 Furniture and equipment 15.887 Infrastructure 4.664.298 Total assets 30.171.996 Liabilities Accounts payable and accrued liabilities 411/434 Due buother governments 284.921 Non -current liabilities: Due within one year Bonds payable 200.000 Due inmore than one year: Bonds payable 1.625.800 Notes payable 1.708.864 Compensated absences 126.048 Total liabilities 4,357,167 Net Assets Invested in capital aosets, net cfrelated debt 5O90.828 Restricted 20.406.071 Unrestricted 318.130 Total net assets $ 25,814,829 Submitted into the Public record inconnection with items *- on Priscilla A. Thompson °"`"pnom The accompanying notes are an integral part of the basic financial statements. CITY OF MIAMI SOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY (A Component Unit of the City of Miami, Florida) Statement of Activities Year ended September 30, 2009 Governmental Activities Expenses: General government 1,325,921 Community redevelopment 5,230,177 Interest on long-term debt 162,988 Total program expenses 6,719,086 Program revenues: Intergovernmental revenue: Operating Charges for services: Parking fees 717,723 257,095 Net program expense (5,744,268) General revenues: Tax increment revenue Sale of property Other Interest revenue Total general revenues Increase in net assets Net assets - beginning of the year Net assets - end of the year 7,848,613 739,468 20,513 261,395 8,869,989 3,125,721 22,689,108 $ 25,814,829 Submitted into the public record in connection with items MI. on 3-15-10 . Priscilla A. Thompson City Clerk The accompanying notes are an integral part of the basic financial statements. 8 Assets Equity in pooled cash Restricted cash Other receivable Interest receivable CITY OF MIAMI SOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY (A Component Unit of the City of Miami, Florida) Balance Sheet Governmental Funds September 30, 2009 I 01,31 Special Capital governmental General revenue Debt service projects funds $ 495,210 17,049,099 Total assets 495,210 Liabilities and Fund Balances Liabilities: Accounts payable and accrued liabilities Due to other governments Total liabilities Fund Balances: Reserved for encumbrances Reserved for debt service Reserved for capital projects Unreserved: Designated for redevelopment projects Undesignated Total fund balances Total liabilities and fund balances 17, 782,270 42,686 38,273 30,058 782,270 3,133,061 20,677,370 782,270 42,686 6,905 45,178 3,139,966 21,547,504 16,650 394,784 411,434 33,482 251,439 284,921 50,132 646,223 696,355 13,990,276 - 13,990,276 782,270 - 782,270 - 3,139,986 3,139,966 2,493,559 2,493,559 445,078 445,078 445,078 16,483,835 782,270 3,139,966 20,851,149 $ 495,210 17,130,058 782,270 3,139,966 Amounts reported for governmental activities in the statement of net assets consist of: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: Bonds and notes payable Compensated absences Net assets of governmental activities 8,624 492 (3,533,864) (126,948) (3,660,812) $ 25,814,829 Submitted into the public record in connection with items on 3-15-10 . Priscilla A. Thompson City Clerk The accompanying notes are an integral part of the basic financial statements. 9 Submitted into the public record in connection with items on 3-15-10 . Priscilla A. Thompson City Clerk CITY OF MIAMI SOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY (A Component Unit of the City of Miami, Florida) Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year ended September 30, 2009 Total Special Capital governmental General revenue Debt service projects funds Revenues: Tax increment revenues $ 582,277 7,266,336 - - 7,848,613 Intergovernmental 417,723 - 300,000 - 717,723 Parking fees 257,095 - - - 257,095 Other - 16,651 3,862 - 20,513 Interest 218,861 493 42,041 261,395 Total revenues 1,257,095 7,501,848 304,355 42,041 9,105,339 Expenditures: Current, General government 1,255,218 1,255,218 Community redevelopment 5,103,931 5,103,931 Debt service: Principal 185,000 185,000 Interest 162,988 162,988 Total expenditures 1,255,218 Excess (deficiency) of revenues over (under) expenditures 5,103,931 347,988 6,707,137 1,877 2,397,917 (43,633) 42,041 2,398,202 Other financing sources (uses): Transfers in 1,400,000 47,988 1,447,988 Transfers out (47,988) (1,400,000) - (1,447,988) Sale of property 739,468 - - 739,468 Total other financing sources (uses) 2,091,480 (1,352,012) 739,468 Net change in fund balances 1,877 4,489,397 (1,395,645) 42,041 3,137,670 Fund balances - beginning 443,201 11,994,438 2,177,915 3,097,925 17,713,479 Fund balances -ending $ 445,078 16,483,835 782,270 3,139,966 20,851,149 Net change in fund balances - total govemmental funds 3,137,670 Amounts reported for governmental activities in the statement of activities are different because: The issuance of long-term debt provides current financial resources to governmental funds, while repayments on long-term debt consumes the curent financial resources of governmental funds: Payment of principal on long-term debt 185,000 Items reported in the statement of activities do not require the use of current financial resources, and therefore, are not reported as expenditures in governmental funds: Increase in compensated absences (70,703) The governmental funds reported capital outlays as expenditures, however, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense: Expenditures for capital assets 550,000 Less: depreciation expense (676,246) (126,246) Change in net assets of governmental activities $ 3,125,721 The accompanying notes are an integral part of the basic financial statements. 10 CITY OFM8|AMUsoWTHEAST0VERTOWN PARK WEST REDEVELOPMENT AGENCY (AComponent Unit ofthe City oyMiami, Florida) Notes to Basic Financial Statements September 3O.2OOQ i' Summary oKSignificant Accounting Policies Submitted into the public record inconnection with items #A' on 3'15-80 . Priscilla A'Thompson City Clerk This summary ofthe City ofMiami Southeast OvertownPark West Redevelopment Agency (the Agency) significant accounting policies is presented to assist the reader in interpreting the basic financial statements. The policies are considered essential and should be read in conjunction with the basin financial statements. The accounting policies of the Agency cunfonn to accounting principles generally accepted in the United 8bahau of America applicable to governmental units. This report, the accounting systems and classification of accounts conform to standards of the Governmental Accounting Standards Board (GA8B), which is the accepted standard -setting body for establishing governmental accounting and financial reporting principles- The following iaasummary ofthe more significant policies: A. Reporting Entity The Agency was established in1Q83.by the City ofMiami, Florida (the City) under the provisions of Section 163 FloridaStatutes. The of the Agency is to eliminateblight the redevelopment area of the Agency pursuant to the redevelopment plans of the Agency for new residential and commercial activity in the Southeast Overtown area. The board of directors of the Agency is comprised of the five members of the City commission and are separate, distinct and independent from the governing body of the City. The City entered into Interlocal Cooperation Agreements, doted March31. 1982.vith Miami -Dade County. Florida (the County) and na|ahad ordinances of the City and County whereby tax increment revenue collected by the parties would be paid to the Agency and used in accordance with the approved budgets of the redevelopment plans and terms and conditions of the |ntedoco| Agreements for the benefit of the Agency. For financial reporting purposes, the Agency is component unit ofthe City and is thus included in the City's comprehensive annual financial report as a blended component unit. B. Government -wide and Fund Financial Statements The government -wide financial statements (i.e., the abatement of net assets and the statement of activities) report information onall the nonfiduciaryactivities of the Agency. For the most part, the effect of\n*»rfbnd activity has been removed from these statements. Governmental activities, which normally are supported bytaxes and intergovernmental revenums, are reported separately from business —type aotivdYoa, which rely to a significant extent on fees and charges for support. The Agency does not have any business -type activities. The statement nfactivities demonstrates the degree to which the direct expenses of given function or segment are offset by program revenues. Direct expenses are those that are daedy identifiable with m specific function or segment. Program revenues include 1) charges bocustomers orapplicants who pun:hmse, use, or directly benefit from goods, smmicen, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of particular function or segment. Taxes and other items not pnopedy included among program revenues are reported instead angeneral revenues. Separate financial statements are provided for the governmental funds. Major individual governmental funds are reported as separate columns inthe fund financial statements. 11 Submitted into the public record in connection with items #1 on 3'15-10 . Priscilla A'Thompson City Clerk CITY OF MhAM|SOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY (A Component Unit of the City of Miami, Florida) Notes toBasic Financial Statements C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis oyaccounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Governmental fund financial statements are reported using the current financial resource measurement focus and the modified accrual basis ofaccounting. Revenues are recognized eosoon asthey are both measurable and available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Agency considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally one recorded when a |ieh(||h/ is inuurred, as under accrual accounting. How/ever, debt service oxpenditunso, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment isdue, Taxes and interest associated with the current fiscal period are all considered to be susceptible to aocme| and so have been recognized as revenues of the current fiscal period. Only the portion due within the current fiscal period is considered to be susceptible to aooma| as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received bythe government. The Agency reports the following major governmental funds: � The General Fund is the Agency's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund; � The Special Revenue Fund accounts for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted for specified purposes-, � The Debt Service Fund accounts for the accumulation of resources for and the payment of, bond principal and interest; and ° The Capital Projects Fund accounts for the acquisition and/or construction of major capital facilities. When both restricted and unrestricted resources are available for use, it is the Agency's policy to use restricted resources first, then unrestricted resources osthey are needed. D. Equity imPooled Cash The Agency's cosh, other than daoohbod below, is pooled together with the City's cash, All such cash is reflected as equity in pooled cash on the Agency's statement ofnet assets and governmental funds balance sheet. ERestricted Net Assets The government -wide statement cfnet assets reports $20,406.071 of restricted net assets, of which $782.270 is restricted for debt service payments because their use is limited by applicable bond covenants and restrictions, $3.139.166 is restricted for capital projects, and $10.483.835 is restricted by enabling legislation (i.e. the use of tax increment funding for specific activities). 12 Basic Financial Statements Submitted into the public record in connection with items fr.. on 3-15-10 . Priscilla A. Thompson City Clerk CITY OFMUNNMISOUTHEAST 0VERTOWN PARK WEST REDEVELOPMENT AGENCY (AComponent Unit ofthe City ofMiami, Florida) Notes UoBasic Financial Statements Submitted into the public ��.�����������~�����.� Gepbember3O.2OOQ ^"c°^="�^°�"=^^""��^E� items A�- on 3-15-10 ' Priscilla /k.Thompson F. Capital Assets ° City Clerk Copho| aoaets, which include pnopeMy, plant, and equipment are reported in the applicable governmental type activities column in the government -wide financial statements. Capital assets are defined by the Agency as assets with an iniha|, individual cost cfmore than $1.000 and an amUmohed useful |iha in excess cfone year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs ofnormal maintenance and repairs that donot add tothe value of the asset ormaterially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Capital assets of the Agency are depreciated using the straight-line method over the following estimated useful lives: Assets Years Fun`dunoand equipment 5 Infrastructure 5-35 G. Obligations In the government -wide financial statements long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities. H. Fund Equity In the fund financial statements, governmental funds report reservations offund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. The deonhpdun of each reserve indicates the purpose for which each was intended. Unreserved fund balance is the portion of fund equity available for any lawful use. 1. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted inthe United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management's knowledge cfcurrent events and actions it may undertake in the future, they may ultimately differ from actual results. 2. Cash Deposits At September 30. 2008. the consisted of equity in pooled mash of$2O.677.37O and restricted cash oy$782.27O. The Agency's funds participate in the City's pool on a dollar equivalent and daily transaction basis. |nbaoaet income (which includes unrealized gains and losses) is distributed monthly based onamonthly average balance. Custodial Credit Risk is the risk that in the event of bank failure, the Agency's deposits may not be returned to it. In addition to insurance provided by the Federal Deposit Insurance Corporation (FD|C), deposits are held in banking institutions approved by the State of Florida, State Treasurer to hold public funds. 13 CITY OfMIAMI S0UTHEASTOVERTOWN PARK WEST REDEVELOPMENT AGENCY (AComponent Unit cfthe City cfMiami, Florida) Notes to Basic Financial Statements 2. Cash Deposits (continued) Under the Florida Statutes Chopter2DO. ^Flohda Security for Public Deposits Act", the State Treasurer requires all qualified public depositories to deposit with the Treasurer or another banking institution eligible collateral. In the event of a failure of e qualified public depooitory. the remaining public depositories would beresponsible for covering any resulting losses. 3. Sale ofProperty On April 13, 2005, the Agency sold certain property to Bayview Towers Associates, LLC (Bayview) for a total purchase price of $2.800.000. of which $500,000 was paid upon closing. The remaining amount of $2,100,000 was due within two years from the date of closing, and was paid by Bayview upon the closing of each condominium unit sold by 0ayview. vvhonuby 7% of the gross purchase phoa of each condominium unit sold was paid tothe Agency, uptothe $2 100.000, Bayview is required to continue to pay the Agency 794 of the gross purchase price of each condominium unit sold thereafter. The total amount paid by Bayview during the fiscal year ended September 30, 2009 is $739,468. 4. Capital Assets Capital asset activity for the fiscal year ended September 30.20Qwas as follows: Balance Balance September September 30.2008 Additions Deletions 30.2009 Capital assets, not being depreciated: Land $ 3.688.307 250200 3.844.507 Total capital assets, not being depreciated 3,688.307 256.200 3.9*4.507 Capital assets, being depreciated: Furniture and equipment 87,657 87,657 Infrastructure 8.758.800 293.800 9052.630 Total capital assets, being depreciated 8,846,457 293,800 9,140,257 Less accumulated depreciation for: Furniture and equipment 61,885 10.075 71.870 Infrastructure 3.722131 6e6.171 4.388.302 Total accumulated depreciation 3.784,026 076.246 4,460,272 Total capital assets, being depreciated, net 5.062,431 (382,446) 4.679985 Total capital assets (net of accumulated During fiscal year 2OOS.depreciation expense inthe amount cf $878.246was charged toCommunity Submitted into the public record ioconnection with .,xmn #2' on 3'15-10 . Priscilla ,k.Thompson CITY 0FK8CA&8USOUTHEAST OVERTOWUN PARK WEST REDEVELOPMENT AGENCY (\ Component Unit o[the City ofMiami, Florida) Notes hoBasic Financial Statements September 3O.2OOA 5. Long -Term Obligations The changes in the long-term obligations for the year ended September 30. %OOO are summarized an Community Redevelopment Revenue Bonds, Series 1990 Gran Central Loan Compensated absences Total long-term obligations Balance Balance Amount due September September within one * 2D1O/000 1,708,864 56,245 - (185,000) 1.82500 1,708,864 ' 70.703 126.940 ' Adescription ofeach obligation isanfollows: (a) On November 8. 1990' the City issued s11.500.000 aggregate principal amount of Community Redevelopment Revenue Bondn, Series 1990. maturing through 2015. with interest rates ranging from 7.15% to 8.5%. These bonds are secured by a pledge o/ guaranteed entitlement revenue received from the State of Florida and the tax increment revenue amounts received from the City and County on the Southeast Overtovvn/Park West Redevelopment area. The proceeds of the bonds were used mainly to refinance a $5.958.000 SuoUnn 108 HUD promissory note, to reimburse the City for moneys advanced hzthe Agency bythe City inmnamount not hoexceed $75O.UUU.and tofinance the acquisition and clearing of certain real property and the construction of certain infrastructure improvements within the Southeast Overtown/Park West Redevelopment Area defined in the Phase I Development Programs of the Agency's Interlocal Agreement and related resolutions of the City and County, The bonds are secured by a pledge of$300'80O per year by the City from the proceeds of its Guaranteed Entitlement Revenue, in addition tothe tax increment revenue received by the City and County. As m result, the City deposits $300.000 per year with the trustees ofthe bond indenture' which represents its portion of the state of Florida's shared revenue for the payment of principal and interest onthe bonds. The principal and interest requirements on the special obligation bonds and loans are as follows: 2010 2011 2012 2013 2014 2O15'2O1S Total Principal Interest Total 200.000 146.825 346.625 220.000 128.775 348.775 235.000 100.438 344.438 255.000 88.813 343.613 280.000 65.875 345.875 636.000 55.037 690.037 15 2,419,363 Submitted into the public record imconnection with m� '^� —A�on CITY OF88UkM|SOUTHEAST OVGRTOWN PARK WEST REDEVELOPMENT AGENCY (\ Component Unit ofthe City cfMiami, Florida) Notes to Basic Financial Statements S. Long -Term Obligations (comtinumd) (b) On January2O. 1988. the City entered into loan agreement with the Gen Central Corporation (GCC) to finance 50% of the cost to acquire a parcel of property within the SBJPVV CRAAnya and na|ooabm and widen Northwest First Avenue between Northwest First Street and Northwest Eighth Street. The loan, /n the amount uf$1.7O8.884. does not bear interest and is payable from tax increment funds received from the City and County within a donk]nabad area defined in the loan documents on a junior and subordinate basis to the lien granted to holders of the $11'500.000 Community Redevelopment Revenue Bondo, Series 1990. GCC is to be fully repaid bythe year 2008with annual payments to be mode to the extent funds are generated by tax increment revenue within the designated area, as defined inthe loan douument, ioavailable after required payments for the Series 1990 Bonds debt service and any requirement ofthe reserve fund or reserve pnoduot, an defined in the Series 1800 Bond indenture. GCC has subsequently been acquired by another company (referred to as the "predecessor company"), which has taken over the loan. The loan became duo during fiscal yemr2UO8. Howevar, management believes that since no tax increment funds have been generated within the designated area, as defined in the loan documents, no payment on the loan is naquired, and will only become due when any such tax increment funds have been generated within the designated area Management cfthe Agency is in the process of clarifying these terms with the predecessor company. (c) Related to the issuance of the Community Redevelopment Revenue Bonds, Series 1090above, a reserve amount was required for the maximum debt nanioe payment in the amount of$5S4.148. Huwever, as the debt was being id by the City through to metuhh/. the Agency believed that the naaeme amount of $554.148 should be released from restriction and to fund the amounts to the Agoncy, as approved by Resolution No. 01'586. dated June 14, 2001. The advance of the debt naaen/e was recorded as a liability of the Agency at the government -wide level. During fiscal year 2004. the liability to the City was reduced by$1Q2.QOQ. to $361.239. The remaining advance of $361,239 was accrued during fiscal year 2008 at the fund level and paid during fiscal year 2009. 6. Tax Increment Revenue The Agency's primary source of revenue is hax'inonsmertfundo. This revenue in computed by applying the operating tax rate for the City and the Cuunb/, multiplied by the increased value of property |nnahad within the boundaries of the redevelopment areas of the Agenoy, over the base property value, minus 5%. Both the City and the County are required to fund this amount annually without regard to tax collections orother obligations. On AugustG. 2OO7. the City, County and The ChUdnsn'oTrun (the Trust) entered into an |ntedooal Agreement with the Agency, whereby the Agency would receive from the Tiuot, on an annual bamu, bm increment revenues derived from the imposition of a half -mil tax levied by the Trust against real property located within the redevelopment district (referred to as Trust revenues). The Agency agreed to use the Trust revenues for debt service on, and other obligations relating to, existing debts of the Agency only after all other available tax increment revenues have been exhausted for such puryooe, and to remit to the Trust on the |ont day ofthe Agency's fiscal year, all of the Trust revenues that are not needed for debt service on, or other obligations relating to, existing debts of the Agency. AaofSeptember 3U.2OOQ. the Agency recorded anamount due tothe Trust tota/ings251.43A. 16 Submitted into the public record inconnection with items #2. on 3-15-10 ' Priscilla A.Thompson City Clerk 7. Parking Lease Revenue CITY OFyNiAK8|SOUTHEAST OWE0TOWN PARK WEST REDEVELOPMENT AGENCY (\ Component Unit cfthe City ofMiami, Florida) Notes hoBasic Financial Statements Submitted into the public record ioconnection with September 3O.2OOQ items OL on 3-15-80 ' Priscilla A'Thompson City Clerk OnFebruary 23. 1988, the City and the Department of Off -Street Parking (DOSP), a discretely presented component unit of the Cih/, amhamd into an agreement whereby DOSP leased certain lots surrounding the Miami Arena. The berm of the lease agreement was for a period of five yeano, which commenced on June 1, 1988 and expired on June 1, 1993. DOSP paid the City $500.000 upon signing the lease agreement and agreed to pay annually as rentpercent (85Y6) of gross revenue earned not of operating expenses incurred on the operations of the leased lots for each respective lease year. On October 20. 1983, the City and DOSP entered into an agreement to extend the lease hann of the original agreement, which expired on June 1, 2000. Currently, the City and DOSP have extended the lease agreement to an undetermined amount of time. All of the lots leased to DOSP are within the limits o[the Southeast Overtown distric1, therefore, the City allocates all moneys received from DOSP tothe Southeast Owartmmndistrict. During 2009there was atransfer cf $47.988 from the special revenue fund huthe debt service fund to cover debt service expenddurea, and a transfer ofs1.400,OOO from the debt service fund to the npedo| revenue fund for use on the affordable housing program. 9. Special Benefit Plans (a) 401(a) Deferred Compensation Plan All employees, including executives and general employees, of the Agency are e|igitJe, after one year of service, to join the |CyNA Retirement Trust 401(o) Deferred Compensation Plan (the Man). The Plan agreement naquinam the Agency to contribute 8% of each executive employee's eamab|a compensation, and 5% of each general *mp/nyon'n earnab|e compensation. Contributions by executive and general employees are not required- Participants may withdraw funds atretirement or upon separation based on a variety of payout options. The following information relates to the Agency's participation in the 4D1(o) Deferred Compensation Plan: Current year's payroll for executive employees o 91.000 Current year's payroll for general employees 356.355 Current year's employer contributions for: Executive employees (8Y6rate) 7.280 General employees (5Y6rate) 9.079 (b) 457(b)Deferred Compensation Plan All employeeo, including executives and general employees, of the Agency are e|kJibka to join the United States Conference of Mayors 457(b) Deferred Compensation Plan (the Plan). The Man agreement requires the Agency to contribute 696 of each executive employee's eornab|a compennaUon, and is not required 0ocontribute hogeneral employee participants. Contributions by executive and general employees are not required. Participants may widhdoaw/fbnduotretirement nr upon separation based on a variety you options. The following information relates to the Agency's participation inthe 457(b)Deferred Compensation Plan: Current year's payroll for executive employees $ 91.000 Current year's employer contributions for: Executive employees (596rate) 4.550 17 CITY OFK8IAMISOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY (AComponent Unit ofthe City ofMiami, Florida) Notes bzBasic Financial Statements September 3O.2UOS 10L Commitment and Contingencies The Agency is contractually obligated for approximately $7.5 million at September 30. 2009. for construction projects. The Agency isadefendant in several legal actions. Thwoutcome ofthese actions cannot bedetermined atthis time. Management believes that any liability from these actions will not have a mobaha| effect on the Agency's financial condition. Submitted into the public record imconnection with items Al- on 3'15-10 ' Priscilla A. Thompson City Clerk 18 Required Supplementary Information Submitted into the public record in connection with items #¢ on 3-15-10 . Priscilla A. Thompson City Clerk CITY OF MIAMI SOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY (A Component Unit of the City of Miami, Florida) Budgetary Comparison Schedule - General Fund (Required Supplementary Information - Unaudited) Year ended September 30, 2009 Revenues: Tax increment revenues Intergovernmental Parking fees Total revenues Expenditures: Current: General govemment Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Net (budget reserve) carryover fund balance Total other financing sources (uses) Net change in fund balance Fund balances - beginning Fund balances - ending Budgeted amounts Original Final 700,000 700,000 849,119 847,009 1,549,119 1,547,009 1,427,354 1,556,067 1,427,354 1,556,067 121,765 (9,058) (121,765) 9,058 (121,765) 9,058 Variance with final budget - positive Actual (negative) 582,277 417,723 257,095 (117,723) (429,286) 257,095 1,257,095 (289,914) 1,255,218 300,849 1,255,218 300,849 1,877 10,935 1,877 443,201 $ 445,078 (9,058) (9,058) 1 877 Submitted into the public record in connection with items ta.. on 3-15-10 . Priscilla A. Thompson City Clerk The note to the required supplementary information is an integral part of this schedule. 19 CITY 0fhNW\M|SOUTHEAST OVER70VVN PARK WEST REDEVELOPMENT AGENCY (A Component Unit of the City ofMiami, Florida) Budgetary Comparison Schedule ' Special Revenue Fund (Required Supplementary Information -Unaudited) Year ended September 3O.20OQ Budgeted amounts Original Final Revenues: Tax increment revenues n 7.036.011 Intergovernmental ' Other Interest Total revenues 7,086/011 Expenditures: Community redevelopment Total expenditures Excess (deficiency) vfrevenues over (under) expenditures Other financin8sources (uoeo: Transfers in Transfers out Proceeds from sale of land Net carryover fund balance Total other financing sources (uses Net change infund balance Fund balances beginning Fund balances - ending 7,014.897 7.206.336 - Variance with final budget ' positive (negative) 16,651 10,651 218,861 22.567.528 20,475148 5,103,931 (15,531.517) (13,460.251) 2,387,917 1.400,000 1,400.000 14`1e1.517 12,471,490 15.531.517 13,460,251 1,400,000 (47.g0O 739,468 2,091,480 *.*VS.3m7 /1.g94.438 $ 16.483.835 218,861 486,951 15,371,217 15,371,217 15,858,168 (11,388J71) 4,489,397 Submitted into the public record imconnection with items I on_3'15-10 ' Priscilla /k.Thompson City Clerk The note to the required supplementary information is an integral part of this schedule. 20 CRY OF MIAM|SOUTHEAST OVERTO00N PARK WEST REDEVELOPMENT AGENCY (\ Component Unit ofthe City ofMiami, Florida) Note to Required Supplementary Information 1' Budgetary Policy The Agency adopts an annual budget for the operations of the General Fund, Special Revenue Fund and Debt Service Fund, Capital Project funds are budgeted on o total project basis for which annual budgets are not available. In accordance with generally accepted accounting phnoip|oo, budgetary comparison information is disclosed only for the General Fund and the Special Revenue Fund. The budgets are adopted on a basis consistent with U.8. generally accepted accounting principles. Budgetary control is maintained at the fund level. 21 Submitted into the public record in connection with items #1t- on 3-15-10 ' Priscilla A.Thompson Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Submitted into the public record in connection with items on 3-15-10 . Priscilla A. Thompson City Clerk 5805Nue Lagoon Drtvc Independent Auditor's Report amInternal Control Over Financial Reporting and omCompliance and Other Matters Based omanAudit ofFinancial Statements Performed inAccordance With Government Auditing Standards The Board of Directors City ofMiami Southeast Overtown Park West Redevelopment Agency: We have audited the basic financial statements of the City of Miami Southeast Overtnwn Park VVms Redevelopment Agency (the Agency) as of and for the year ended Sephamber3O. 2009. and have issued our report thereon dated November 25. 2009. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Agency's internal control over financial reporting as o basis for designing our auditing procedures for the purpose of expressing our opinion on the financial sbatememte, but not for the purpose ofexpressing mnopinion onthe effectiveness of the Agency's internal control over financial reporting. Aoconjing|y, we do not express an opinion on the effectiveness of the Agency's internal control over financial reporting. A control deficiency exists when the design or operation of control does not allow management or emp|oyean, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis, A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to inhiato, authohze, nannn1, pnonoom, or report financial data reliably in accordance with generally accepted accounting principles such that there iomore than a remote likelihood that o misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. AmaUahm| weakness ism significant deficiency, or combination ofsignificant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily identify all deficiencies ininternal control that might be significant -defioienoien or mnobaho| weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Agency's basic financial statements are free of material miootatement, we performed bante of its compliance with certain provisions of laws, nagu|odone, oontrante, and grant agreements, noncompliance with which could have direct and material effect on the determination of financial statement amounts. Hmwever, providing an opinion on compliance with those provisions was not on objective of our oudit, and uouording|y, we do not express such an opinion. The results of our tests diyubond no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Submitted into the public record imconnection with 22 items 4% on 3-15'10 _ Priscilla A.Thompson City Clerk In addition, we issued a management letter to management of the Agency dated November 25, 2009, as required by the Rules of the Auditor General of the State of Florida. This report is intended solely for the information and use of the board of directors, management of the Agency, the State of Florida Office of the Auditor General, and federal and state awarding agencies and pass -through entities, and is not intended to be and should not be used by anyone other than these specified parties. November 25, 2009 Submitted into the public record in connection with items #1. on 3-15-10 . 23 Priscilla A. Thompson City Clerk