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FISCAL YEAR. ENDED
SEPTEMBER 30TH. 2004
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
City of Miami, Florida
For the Year Ended September 30, 2004
Prepared by the Finance Department
,:i�.1,�1i�,;r:gL'F`f'i✓�€,43
INTRODUCTORY SECTION
PRINCIPAL CITY OFFICIALS
TABLE OF CONTENTS
LETTER OF TRANSMITTAL
CERTIFICATE OF ACHIEVEMENT
ORGANIZATIONAL CHART
City of Miami, Florida
Principal City Officials
September 30, 2004
MAYOR
Manuel A. Diaz
CITY COMMISSION
Joe M. Sanchez, Chairman
Angel Gonzalez, Vice -Chairman
Jeffery L. Allen, Commissioner
Tomas Regalado, Commissioner
Johnny L. Winton, Commissioner
CITY MANAGER
Joe Arriola
CITY ATTORNEY
Jorge L. Fernandez
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City of Miami, Florida
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2004
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
PRINCIPAL CITY OFFICIALS i
TABLE OF CONTENTS iii
LE fl'ER OF TRANSMITTAL vii
CERTIFICATE OF ACHIEVEMENT xvi
ORGANIZATIONAL CHART xvii
II. FINANCIAL SECTION
Independent Auditors' Report 1
Management's Discussion and Analysis 3
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets 13
Statement of Activities 14
Fund Financial Statements:
Balance Sheet — Governmental Funds 15
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets 16
Statement of Revenues, Expenditures and Changes in
Fund Balances — Governmental Funds 17
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds to
the Statement of Activities 18
Statement of Fiduciary Net Assets — Fiduciary Funds 19
Statement of Changes in Fiduciary Net Assets — Fiduciary Funds 20
Statement of Net Assets - Discretely Presented Component Units 21
Statement of Activities - Discretely Presented Component Units 22
iii
Notes to the Financial Statements 25
Required Supplementary Information:
Budgetary Comparison Schedules —Major Funds (General and Special Revenue):
General Fund 59
Community Redevelopment Fund 60
Public Service Tax Fund 61
Notes to the Required Supplementary Information 62
Pension Schedules:
Schedule of Funding Progress 63
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet — Nonmajor Governmental Funds 70
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances — Nonmajor Governmental Funds 76
Budgetary Comparison Schedules — Nonmajor Governmental Funds:
Community Redevelopment Agency (ORA) Fund 82
Community Redevelopment Agency (SEOPW) Fund 83
Convention Center Fund 84
Economic Development & Planning Services Fund 85
Fire Rescue Services Fund 86
Net Offices Fund 87
Parks and Recreations Fund 88
Police Services Fund 89
Law Enforcement Trust Fund 90
Public Works Services Fund 91
City Clerk Services Fund 92
Local Option Gas Tax Fund 93
Stormwater Utility Fund 94
Department Improvement Initiatives Fund 95
Transportation & Transit Fund 96
Gusman and Olympia Fund 97
General Obligation Bonds Fund 98
Other Special Obligation Bonds Fund ....99
Community Redevelopment Other Special Obligation Bonds Fund....100
Combining Statement of Fiduciary Net Assets — Fiduciary Funds 102
Combining Statement of Changes in Fiduciary
Net Assets — Fiduciary Funds 103
iv
III. STATISTICAL SECTION (Unaudited)
Net Assets by Component ..106
Changes in Net Assets 107
General Governmental Tax Revenues by Source 108
Fund Balances of Governmental Funds 109
Changes in Fund Balances of Governmental Funds 110
General Government Tax Revenues by Source 111
Net Assessed Value and Estimated Actual Value of Taxable Property 112
Property Tax Rates — Direct and Overlapping Governments 113
Principal Property Taxpayers 114
Property Tax Levies and Collections 115
Ratios of Outstanding Debt by Type 116
Ratios of General Bonded Debt Outstanding ..... 117
Direct and Overlapping Governmental Activities Debt 118
Legal Debt Margin Information 119
Pledged Revenue Coverage 120
Demographics and Economic Statistics 121
Principal Employers 122
Full -Time Equivalent City Government Employees by Function 123
Operating Indicators by Function 124
Capital Assets Statistics by Function/Program 125
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Lit of trzmt
February 28, 2005
The Honorable Mayor,
Members of the City of Miami Commission,
and Citizens of the City of Miami, Florida
Ladies and Gentlemen:
The Comprehensive Annual Financial Report of the City of Miami, Florida (the "City")
for the fiscal year ended September 30, 2004, is hereby submitted. This report consists of
management's representations concerning the finances of the City. Consequently,
management assumes full responsibility for the completeness and reliability of all the
information presented in this report. To provide a reasonable basis for making these
representations, management of the City has established a comprehensive internal control
framework that is designed both to protect the City's assets from loss, theft or misuse and
to compile sufficient reliable information for preparation of the City's financial
statements in conformity with accounting principles generally accepted in the United
States of America (GAAP). Because the cost of internal controls should not outweigh
their benefits, the City's comprehensive framework of internal control has been designed
to provide reasonable, rather than absolute assurance that the financial statements will be
free of material misstatement. As management, we assert that, to the best of our
knowledge and belief, this financial report is complete and reliable in all material aspects.
Rachlin Cohen and Holtz LLP partnering with Harvey, Branker & Associates, Rodriguez,
Trueba & Co., CPA, P.A., and Susan M. Garcia, P.A., all of which are firms of licensed
certified public accountants, has audited the City's basic financial statements. The goal
of the independent audit was to provide reasonable assurance that the financial statements
of the City, for the fiscal year ended September 30, 2004, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures in the basic financial statements; assessing the
accounting principles used and significant estimates made by management; and
evaluating the overall financial statement presentation. The independent auditors
concluded, based upon the audit, that there was reasonable basis for rendering an
unqualified opinion that the City's basic financial statements for the fiscal year ended
September 30, 2004, were presented fairly in conformity with GAAP. The independent
auditors' report is presented as the first component of the financial section of this report.
The independent audit of the financial statements of the City was part of a broader,
federally and state mandated "Single Audit" designed to meet special needs of federal and
state grantor agencies. The standards governing Single Audit engagements require the
independent auditor to report not only on the fair presentation of the financial statements,
but also on the audited government's internal control and compliance with legal
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requirements, with special emphasis on internal controls and legal requirements involving
the administration of federal and state awards.
GAAP requires that management provides a narrative introduction, overview, and
analysis to accompany the basic financial statements in the form of Management's
Discussion and Analysis (MD&A). This letter of transmittal is designed to complement
MD&A and should be read in conjunction with it. The City's MD&A can be found
immediately following the report of the independent auditors.
PROFILE OF THE GOVERNMENT
The City of Miami, Florida (the "City"), in the County of Miami -Dade, was incorporated
in 1896, and has a population of approximately 362,000. The City is situated at the mouth
of the Miami River on the western shores of Biscayne Bay and is a main port of entry into
Florida and is the county seat of Miami -Dade County, Florida. The City comprises 34.3
square miles of land and 19.5 square miles of water.
The City Charter was adopted by the electors of the City of Miami at an election held
May 17, 1921 and legalized and validated by Chapter 9024 of the laws of the State of
Florida of 1921. During fiscal year 1997, the residents of the City voted on a referendum
that created single -member districts and an Executive Mayor form of government. The
City continues to operate under the Commission/City Manager form of government and
provides the following services: police and fire protection, public works activities, solid
waste collection, parks and recreational facilities, planning and development, community
development, financial services and general administrative services.
The Florida Legislature, in 1955, approved and submitted to a general election, a
constitutional amendment designed to give a new form of government to Miami -Dade
County, Florida (the "County"). The County is, in effect, a municipality with
governmental powers affecting thirty cities and unincorporated areas, including the City.
The County has not displaced nor replaced the cities' powers, but supplements them. The
County can take over particular activities of the City's operations if (1) the services fall
below minimum standards set by the County Commission, or (2) with the consent of the
governing body of the City. Accordingly, the County's financial statements are not
included in this report.
The annual budget serves as the foundation for the City's financial planning and control.
All departments and component units of the City are required to submit requests for
appropriation to City's Budget Department. Prior to August 31$`, the City Manager
submits to the City Commission a proposed operating budget by fund, except for the
General Fund which is at the departmental level, for the fiscal year commencing the
upcoming October 1S`. The Mayor shall prepare and deliver a budgetary address annually
to the people of the City between July ls` and. September 30t. Such report shall be
prepared after consultation with the City Manager. The City Commission is required to
hold public hearings on the proposed budget and to adopt the final budget no later than
September 30, the close of the City's fiscal year. The budget is legally enacted through
the passage of an ordinance and adoption of the budget report. Management may not
make changes to the adopted budget without the approval of a majority vote of the City
Commission. The City Commission may transfer among departments any part of an
unencumbered balance of an appropriation to a purpose for which an appropriation for the
current year has proved insufficient. At the close of each fiscal year, the unencumbered
balance of each appropriation reverts to the fund from which it was appropriated and is
subject to future appropriations. Budgets are monitored at varying levels of classification
detail; however, budgetary control is legally maintained at the fund level except for the
General Fund, which is maintained at the departmental level. Budget -to -actual
comparisons are provided in this report for each major individual governmental fund for
which an appropriated annual budget has been adopted. For all non -major governmental
funds with appropriated annual budgets, this comparison is presented in the governmental
fund section of this report, which starts on page 82.
ECONOMIC CONDITION AND OUTLOOK
The City's diversified economic base is comprised of wholesale and retail trade, light
manufacturing, commerce, and tourism. The City has made great gains in the areas of
international banking, business, real estate and trans -shipment, which has diversified the
economic base. Located in the center of a hemispheric market of more than 700 million
people, and easily accessible to South and Central America, the Caribbean, Europe and
Africa, Miami's strategic location and international commerce infrastructure make it the
ideal location for international trade. As a result of expanding economies in several Latin
American countries, international trade has been growing at double-digit rates in the
Miami area.
Airport. In 2004, the Miami International Airport served nearly 30 million passengers,
with nearly half of those being international passengers. It has flights to nearly 200 cities
on five continents with 90 scheduled and 32 non-scheduled carriers. The Miami
International Airport also shipped 3.9 billion pounds of domestic and international cargo
during the year_
Sea Port. In 2004, the Port of Miami handled 9 million tons of cargo and over 3.4 million
cruise passengers. Long considered the Cruise Capital of the World, boasting more home -
ported cruise ships than any other seaport, the Port of Miami received another distinction
in November 1999. It became the year-round home of Royal Caribbean International's
3,600-passenger Voyager of the Seas, the largest cruise liner ever built at that time. The
Port of Miami is also the base for Royal Caribbean's newest ship the 3,800 passenger
"Regency of the Seas".
Arenas. The American Airlines arena, home of the Miami Heat basketball team, is one of
the premier facilities that ushered in the City's Millennium celebration. The Miami Arena
serves as a venue for concerts, and special events.
Private Development. The City is experiencing a period of unprecedented private
development. Projects recently completed, under construction, or in design will add over
$17 billion in value to the property tax roll. Developments include four 5-star hotels, ten
high-rise condominiums and five new office towers. Of specific note, is the number of
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residential units currently planned or under construction in downtown Miami, furthering
the City's goal to transform its central business district to a 24 by 7 activity center.
Currently, in excess of 18,000 downtown residential units are in the planning or
construction phase.
Public/Private Development Ventures. The City will continue to focus efforts on its
waterfront properties. Projects such as the Dinner Key Marina, Virginia Key Beach, and
Bicentennial Park are major projects, which fit prominently into the City's long-term
economic growth and financial well being. A major change has begun on Watson Island;
Parrot Jungle and the Miami Children's Museum opened in 2003 and the planning for the
Island Gardens Development, which will contain two hotels, retail spaces and a mega -
yacht marina is well under way.
Major Initiatives. With the improvement in the financial condition of the City, the
emphasis has been redirected to improving the infrastructure within the City. The City
has begun a program of major renovations and improvements to City parks, streets,
sidewalks and drainage systems. Additionally, a major effort is underway to modify and
improve the City's sanitation services. While the external improvements are critical to
promote further economic development, the City has completed a strategic planning
process to identify and plan for technology improvements internally within the
administration. A major result of this study will be a shift in technology from a
mainframe environment to a distributed network. The City will also be moving much of
its services and information to the Internet.
DEBT MANAGEMENT
The City operates within an established formal debt management policy, which applies to
all new issuances of debt and all outstanding debt issues. During the fiscal year the City
received a certificate of excellence for its Debt Management Policy from the Association
of Public Treasurers of United States and Canada (APT US&C). The City is only one of
four organizations in the United States to have obtained this certification.
The City continues to obtain, in an efficient and innovative manner, long-term financing
for the construction or acquisitions of various long-term assets. The policy's objective is
to adequately plan and meet the City's comprehensive construction demands for essential
capital improvements and equipment, and, at the same time, ensure that the residents of
the City are not overburdened with general obligation long-term debt payable from ad
valorem taxes.
The City was active in the capital market during fiscal year 2004. In November 2000, the
citizens of the City approved the issuance of $255 million in Limited Ad -Valorem
General Obligation Bonds to be used for infrastructure improvements with approximately
fifty percent of the proceeds to be used to expand and improve the City's park system.
The City issued the first series of these bonds in July 2002, with an issuance of $153
million. The City was able to capitalize on the historic lows of both treasury and tax
exempt rates available to provide significant savings to the City. In November 2003, the
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City refunded approximately $4.18 million of General Obligation debt with a present
value savings of approximately $.52 million and a true interest cost of 3.51%.
The City's debt service millage from 2004 for all bonded indebtedness was 1.08 mills
representing an 11.3% decrease from the 2003 rate.
The following chart indicates the principal amortization of the City's general obligation
debt in five-year increments. As can be seen, approximately 45% of the City's outstanding
debt will be retired within the next ten years.
General Obligation Debt
Principal Amortization
For the Five Year Period Ending September 30, 2004
2009 $ 51,511,453
2014 50,515,250
2019 69,248,253
*2024 54,670,000
* The final maturity of GO debt will be retired in Fiscal Year 2022.
CASH MANAGEMENT AND PRACTICES
In order to achieve maximum financial return on all available funds, the Finance
Department pursues an aggressive cash management and investment program within the
constraints imposed by Florida Statutes and local policies adopted by resolution by the
City Commission.
The City operates within established formal investment policies, which applies to all
investment of public funds. Idle cash balances are invested on a daily basis at the best
interest rates available in the markets. Investments consist primarily of United States
treasury and agency securities, and commercial paper.
For purposes of maximizing the interest earning yield on short-term investments, cash
balances of all funds are pooled. The primary objective of the City's policy is preservation
of capital. It is the City's policy not to invest in highly leveraged derivatives. Investment
income reported in these financial statements includes appreciation in the fair value of
investments. Increases in fair value during the current year, however, do not necessarily
represent trends that will continue, nor is it always possible to realize such amounts,
especially in the case of temporary changes in the fair value of investments that the City
intends to hold to maturity.
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A summary and comparison of investment activity for the three fiscal years, are as follows:
2004 2003 2002
Average Portfolio $ 515,393,450 $ 508,369,707 $ 362,439,535
Balance (End of Year)
Average Investment Yield 2.64% 2.55% 3.77%
Interest Earned on
Investments managed
by the Finance Department $ 13,558,256 $ 12,985,760 $ 13,676,175
The following chart summarizes the City's investments, including cash equivalents, at September
30, 2004:
Cash Equivalents and Investment Types
U.S Treasuries
2%
Commercial Paper
7%
U.S. Government
Agencies
91%
RISK MANAGEMENT
The City administers a self-insurance program for workers' compensation, tort liability,
property, and group health and life insurance programs, subject to certain stop -loss
provisions. The health and life insurance programs are administered by an independent
administrator. The City funds the program on an annual payout basis. Insurance coverage
is maintained with independent carriers for property damage to City facilities. The City
maintains excess coverage with independent carriers for workers' compensation and
general liability.
At September 30, 2004, the estimated liability for insurance claims that are expected to be
paid with in one year totaled $32,539,863. The estimated long-term liability for insurance
claims, at September 30, 2004, is $78,716,641. The estimated liability for insurance
claims is discounted at an interest rate of 5%.
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PENSIONS
The City maintains three separate single -employer defined benefit pension plans for its
public safety employees, elected officials, and its general and sanitation employees. Each
year, an independent actuary, engaged by the pension plans, calculates the amount of the
annual contribution that the City must make to the pension plans to ensure that the plans
will he able to fully meet their obligations to retired employees on a timely basis. As a
matter of policy, the City is required to fully fund each year's annual required
contribution to the pension plans as determined by the actuary.
The City also provides to certain executive employees a single -employer, defined
contribution pension plan administered by ICMA Retirement Trust. The City is required
to contribute 8% of the employee's earnings to this plan. The City's contribution for the
City Manager, Independent Auditor General and City Attorney is not limited to the 8%
but is an amount stipulated per their respective contracts with the City.
The pension plans for the Fire and Police (FIFO) and General and Sanitation Employees
(GESE) experienced significant increases in the fair value of the plans assets in the fiscal
year ending September 30, 2004. These increases were caused by appreciation in the fair
value of the investments due to general market conditions. The City is continuing to work
with both Boards to explore possible actuary assumption changes that will serve to
minimize the large increases and decreases for the City's pension contribution from year
to year.
Additional information on the City's pension arrangements can be found in Note 11 in the
notes to the financial statements.
CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Miami, Florida for its Comprehensive Annual Financial Report (CAFR) for the fiscal
year ended September 30, 2003. The Certificate of Achievement is the highest form of
recognition in the area of governmental accounting and financial reporting. The
attainment of this award represents a significant accomplishment by a government and its
fi nanc i al management.
In order to be awarded a Certificate of Achievement, the City had to publish an easily
readable and efficiently organized CAFR, whose contents conform to established
program standards. Such comprehensive reports must satisfy both generally accepted
accounting principles and applicable legal requirements. To earn a Certificate of
Achievement, a government must demonstrate constructive spirit of full disclosure to
clearly communicate its financial story while enhancing the understanding of the logic
underlying the traditional governmental financial reporting model.
The City's 2003 Comprehensive Annual Financial Report has been evaluated by an
impartial Special Review Committee composed of other government officers,
independent certified public accountants, educators and others with particular expertise in
government accounting and financial reporting. We believe that the 2004 Comprehensive
Annual Financial Report continues to conform to the high standards of the Certificate of
Achievement Program and we are submitting it to the GFOA for consideration.
ACKNOWLEDGEMENTS
The Comprehensive Annual Financial Report's preparation was made possible through
the efficient, dedicated and professional efforts of the entire staff in the Finance
Department. The significant amount of year-end closing procedures required prior to the
audit, could not have been accomplished without much hard work and personal sacrifice.
Each member of the department has our sincere appreciation for the contributions made
to assist in the in-house preparation of this report.
The guidance and cooperation of the Mayor and City Commission in planning and
conducting the financial affairs of the City is greatly appreciated. We also wish to
express our appreciation to our Certified Public Accountants, Rachlin Cohen and Holtz
LLP in association with Harvey, Branker & Associates, Rodriguez, Trueba & Co., CPA,
P.A., and Susan M. Garcia, P.A., for their cooperation and assistance. Lastly we wish to
express our appreciation to the City's Office of Communication for the use of the
photographs and General Services Administration for the reproduction of this report.
Joe Arriola Linda M. Haskins, CPA Simpson,
City Manager Chief Financial Officer/ CPA, CPFO, CGFO, CGFM
Deputy Administrator Finance Director
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CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United Sates and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Miami, Florida for its Comprehensive Annual Financial Report for the fiscal year ended
September 30, 2003. The Certificate of Achievement is a prestigious national award
recognizing conformance with the highest standards for preparation of state and local
government financial reporting.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an
easily readable and efficiently organized Comprehensive Annual Financial Report, the
contents of which conform to program standards. Such report must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our
current report continues to conform to Certificate of Achievement Program requirements,
and we are submitting it to GFOA to determine its eligibility for another certificate.
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Miami,
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2003
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
heOdor
Executive Director
xvi
CITY OF MIAMI TABLE OF ORGANIZATION
CITY COMMISSION
CHAIRMAN J. SANCHEZ
VICE-CHAIRMAN A. GONZALEZ
COMIVIISSIONER J. WINTON
COMMISSIONER T. REGALADO
COMMISSIONER J. ALLEN
Residents of Miami
City Clerk
Priscilla A.
Thompson
Auditor General
Victor Igwe
City Attorney
Jorge L. Fernandez
Virginia Key Beach
Park Trust
David Shorter
Model City
Revitalization Trust
Marva Wiley
Miami Sports &
Exhibition
Authority
James Jenkins
Civil Service Board
Tishria Mindingall
Downtown
Development
Authority
Dana Nottingham
Community
Redevelopment
Agency
Frank Rollason
Bayfront Park
Management Trust
Tim Schmand
Fire Fighter's and
Police Officer's
Retirement Trust
Robert H. Nagle
Off Street Parking
Authority
Arthur Noriega
Chief Administrator / City Manager
(Joe Arriola)
• Grants (Robert Ruano)
• Agenda (Eli Alonso)
• Community Relations (Ada Rojas)
NET (Ricardo Gonzalez)
• Code Enforcement
(Mariano Loret de Mola)
• F.A.C.E.
EXECUTIVE MAYOR
Manuel A. Diaz
• Mayor's International Council
Police Chief
John Timoney
Fire Chief
William Bryson
Communications
Kelly Penton
Hearing Boards
Teresita Fernandez
Civilian Investigative Panel
Shirley Richardson
General Employees and
Sanitation Employees'
Retirement Trust
Sandra Elenberg
Deputy Chief Administrator
Chief Financial Officer
Linda Haskins
Finance
Scott Simpson
Purchasing
Glenn Marcos
Dept. of Economic
Development
Vacant
Dept of Employee
Relations
Rosalie Mark
Public Facilities
Christina Abrams
Community Development
Barbara Gomez -Rodriguez
Risk Management
Dania Carrillo
Chief of Operations
Alicia Cuervo Schreiber
Office of Transportation
Mary Conway
Capital Improvement
Program
Jorge Cano
Public Works
Stephanie Grindell
Solid Waste
(Acting)
Mario Soldevilla
GSA
Kelly Barket
Building
Hector Limn
Planning and Zoning
Ana Gelabert
Parks & Recreation
Ernest Burkeen
Chief Information Officer
(CIO)
Information Technology
Peter Korinis
Chief of Strategic Planning,
Budgeting & Performance
Larry Spring
CitiStat
Don Riedel
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xviii
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
MANAGEMENT'S DISCUSSION AND ANALYSIS
BASIC FINANCIAL STATEMENTS
(Government -wide Financial Statements)
(Fund Financial Statements)
NOTES TO THE FINANCIAL STATEMENTS
REQUIRED SUPPLEMENTARY INFORMATION
COMBINING AND INDIVIDUAL FUND STATEMENTS
AND SCHEDULES
Cohen
Accountants - Advisors
INDEPENDENT AUDITORS' REPORT
Honorable Mayor, City Commission and City Manager
City of Miami, Florida
We have audited the accompanying financial statements of the governmental activities, the aggregate
discretely presented component units, each major fund and the aggregate remaining fund information of
the City of Miami, Florida (the City) as of and for the fiscal year ended September 30, 2004, which,
collectively comprise the City's basic financial statements as listed in the table of contents. These
financial statements are the responsibility of the City's management. Our responsibility is to express
opinions on these financial statements based on our audit. We did not audit the financial statements of the
Southeast Overtown Park West Redevelopment Agency, the Omni Redevelopment Agency, the Gusman
and Olympia Special Revenue Fund, the Virginia Key Beach Park Trust, the Model City Community
Revitalization District Trust, the Firefighters' and Police Officers' Retirement Trust and the General
Employees' and Sanitation Employees' Retirement Trust, which represent 90% and 75%, respectively, of
the assets and revenues of the aggregate remaining fund information. We also did not audit the financial
statements of the Downtown Development Authority, the Department of Off -Street Parking, the Miami
Sports and Exhibition Authority and the Bayfront Park Management Trust discretely presented
component units. Those financial statements were audited by other auditors whose reports thereon have
been furnished to us, and our opinion, insofar as it relates to the amounts included for the aggregate
remaining fund information and discretely presented component units is based on the report of the other
auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the aggregate discretely presented component units, each major fund and the aggregate
remaining fund information of the City, as of September 30, 2004, and the respective changes in financial
position, thereof, for the year then ended in conformity with accounting principles generally accepted in
the United States.
-1-
Rachlin Cohen & Holtz up
One Southeast Third Avenue • Tenth Floor • Miami, Florida 33131 • Phone 305.377.4228 • Fax 305.377.8331 • www.rachlin.com
An Independent Member of Baker Tilly International
MIAMI ■ FORT LAUDERDALE • WEST PALM BEACH • STUART
Honorable Mayor, City Commission and City Manager
City of Miami, Florida
Page Two
In accordance with Government Auditing Standards, we have also issued a report dated February 8, 2005
on our consideration of the City's internal control over financial reporting and our tests of its compliance
with certain provisions of laws, regulations, contracts and grant agreements. The purpose of that report is
to describe the scope of testing of internal control over financial reporting and compliance and the results
of that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be read in conjunction with this report in considering the results of our
audit.
Management's Discussion and Analysis and the Required Supplementary Information on pages 3-12 and
pages 59-63, respectively, are not a required part of the basic financial statements, but are supplementary
information required by accounting principles generally accepted in the United States. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the methods
of measurement and presentation of the required supplementary information. However, we did not audit
the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining and individual fund
financial statements and schedules and statistical tables are presented for purposes of additional analysis
and are not a required part of the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements taken as a whole. The
information identified in the table of contents as the introductory and statistical sections have not been
subjected to the auditing procedures applied in the audit of the basic financial statements, and,
accordingly, we express no opinion thereon.
Miami, Florida
February 8, 2005
-2-
"hlirl Cohen
Accountants - Advisors.
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Miami, Florida (the "City"), we offer readers of the City's financial
statements this narrative overview and analysis of the financial activities of the City for the fiscal year
ended September 30, 2004. We encourage readers to consider the information presented here in
conjunction with additional information that we have furnished in our letter of transmittal, which can be
found on pages vii — xiv of this report.
FINANCIAL HIGHLIGHTS
• The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $671,501,732
(net assets).
• The governmental activities revenue increased $57,834,099 (or 11.5%) and the net results from
activities decreased by $27,999,273 (or 1,724.3%). In 2004 and 2003, the results of activities produced
a change in net assets of $(26,375,450) and $1,623,823, respectively.
• The General Fund (the primary operating fund) reflected on a current financial resource basis, reflects
a decrease in fiend balance of $5,009,574 (or 3.5%).
• The City's total debt decreased by $19,129,165 (or 4.2%) during the current year. The key factors of
this decrease were the refinancing of existing debt in favorable market conditions and making
outstanding debt service payments.
3
USING THIS ANNUAL REPORT
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements.
The City's basic financial statements are comprised of three components: 1) government -wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements themselves.
In light of the fact that this is a very different presentation of the City's general purpose financial
statements from previous years, the following graphic is provided for your review.
Basic Financial Statements
Management's Discussion
and Analysis
(required supplementary information)
Government -wide Fund financial
financial statements H statements
(new) (refocused)
(pages 13- 14) (pages 15 — 23)
Notes to the financial statements
(expanded / restructured)
(pages 25- 58)
•
Required supplementary information
(other than MD&A)
(expanded)
(pages 59 - 63)
The focus of the financial statements under the GASB 34 model (originally implemented by the City in
2001/2002) is on both the City as a whole (government -wide) and on the major individual fiends. Both
perspectives (government -wide and major fund) allow the user to address relevant questions, broaden a
basis for comparison (year to year or government to government) and enhance the City's accountability.
Government -Wide Financial Statements
The government -wide financial statements (see pages 13— 14) are designed to be corporate -like, in that all
governmental activities are presented in columns that add to a total for the Primary Government. The focus
of the Statement of Net Assets (the "Unrestricted Net Assets") is designed to be similar to bottom line
results for the City and its governmental activities. This statement reflects governmental fiund's current
fmancial resources (short-term spendable resources) with capital assets and long-term obligations. The
City does not have any business -type activities for financial reporting purposes.
The Statement of Activities (see page 14) is focused on both the gross and net cost of various functions
(including governmental activities and component units), which are supported by the government's general
tax and other revenues. This is intended to summarize and simplify the user's analysis of the cost of various
governmental services and/or component units.
4
Component Units, which are other governmental units over which the City can exercise influence and/or
may be obligated to provide financial subsidies, are presented as a separate column in the government -wide
financial statements. The focus of the statements is clearly on the Primary Government and the presentation
allows the user to address the relative relationship with the Component Units.
The governmental activities reflects the City's basic services, including Police, Fire, Solid Waste
Collection, Parks and Cultural Activities, and general administration. Property taxes, other local taxes, and
federal grants finance the majority of these activities.
Fund Financial Statements
Traditional users of governmental financial statements will find the Fund Financial Statements presentation
more familiar. Their focus is on the City's major funds. The fund financial statements provide more
information about the City's most significant funds — not the City as a whole.
The City has two kinds of funds:
Governmental Funds — Most of the City's basic services are included in governmental funds, which focus
on (1) how cash and other financial assets that can readily be converted to cash flow in and out, and (2) the
balances left at year end that are available for spending. Consequently, the governmental funds statements
provide a detailed short-term view that helps the reader determine whether there are more or fewer
fmancial resources that can be spent in the near future to finance the City's programs. Because this
information does not encompass the additional long-term focus of the government -wide statements,
additional information is provided at the bottom of the governmental funds statement that explains the
relationship (or differences) between them.
The City maintains thirty-two individual governmental funds. Information is presented separately in the
governmental fund Balance Sheets and in the governmental fund Statement of Revenues, Expenditures and
changes in fund balances for the General Fund, Community Development Fund, Public Services Taxes
Special Revenue Fund, General Government Capital Projects Fund, and the Streets and Sidewalks Capital
Projects Fund, which are considered to be major funds. Data from the other twenty-seven governmental
funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor
governmental funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund, Special Revenue Funds, and Debt
Service Funds. Budgetary comparison schedules have been provided for the General Fund and each major
Special Revenue Fund that adopts a budget to demonstrate compliance with the budget. Such information
is presented as required supplementary information.
The basic governmental fund financial statements can be found on pages 15 — 23 of this report.
Fiduciary Funds — These funds are used to account for resources held for the benefit of parties outside the
City. Fiduciary funds are not reflected in the government -wide financial statements because the resources
of these funds are not available to support the City's own programs.
The basic fiduciary fund financial statements can be found on pages 19 — 20 of this report.
Notes to the Financial Statements — The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. The notes to the
financial statements can be found on pages 25 — 58 of this report.
Other Information — In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning budgetary comparisons and the City's
progress in funding its obligations to provide pension benefits to its employees. Required supplementary
information can be found on pages 59 — 63 of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds are
presented immediately following the required supplementary information. Combining and individual fund
statements and schedules can be found on pages 70 — 100 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position.
In the case of the City, assets exceed liabilities by $671,501,732 at the close of the most recent fiscal year.
The largest portion of the City's net assets (87.34%) reflects its investment in capital assets (e.g., land
buildings, machinery and equipment), less any related debt used to acquire those assets that is still
outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets
are not available for future spending. Although the City's investment in capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City's net assets (22.21%) represents resources that are subject to external
restrictions on how they may be used.
The remaining unrestricted net assets deficit of $64,134,990 is primarily due to outstanding borrowings of
approximately $76 million for which there is no offsetting assets.
The deficit in unrestricted net assets in government activities increased by $28,900,642. The increase in the
deficit was primarily attributable to the accrual of certain claims.
The following schedule reflects a summary of net assets compared to prior year.
Current and other assets
Captial assets
Total assets
Other liabilities
Long-term liabilities
Total liabilities
Net assets:
Invested in capital assets,
net of debt
Restricted
Unrestricted (Deficit)
Total net assets
Summary of Net Assets
as of September 30
Governmental
Activities
2004
2003
$ 558,907,935 $ 572,120,755
804,769,718 807,941,738
1,363,677,653 1,380,062,493
71,223,521
620,952,400
76,205,441
605,979,870
692,175,921 682,185,311
586,493,178
149,143,544
(64,134,990)
618,784,135
114,327,395
(35,234,348)
$ 671.501.732 $
697.877.182
For more detailed information see the Statement of Net Assets (page 13).
6
The following schedule compares the revenues and expenses for the cunent and previous year.
Changes in Net Assets
Governmental Activities
2004 2003
Revenues:
Program revenues:
Charges for services $ 176,758,048 $ 159,152,165
Operating grants and contributions 42,967,708 34,441,899
Capital grants and contributions 19,952,074 9,646,560
General revenues:
Property taxes 182,988,575 166,770,291
Franchise fees and licensing fees 35,024,215 30,750,743
State revenue sharing 32,631,162 32,631,162
Public service taxes 60,024,832 58,900,480
Investment earnings 5,618,813 8,833,535
Other 4,072,796 1,077,289
Total revenues 560,038,223 502,204,124
Expenses:
General government 85,252,892 85,176,588
Planning and development 13,148,696 13,579,968
Community development 40,349,703 32,088,517
Community redevelopment areas 4,618,714 6,477,916
Public works 49,498,193 60,708,046
Public safety 282,427,868 226,580,865
Public facilities 17,458,726 10,561,373
Parks and recreation 44,275,606 20,152,074
Interest on long-term debt 23,235,705 19,489,387
Unallocated depreciation 26,147,570 25,765,567
Total expenses 586,413,673 500,580,301
Change in net assets
Net Assets - Beginning
Net Assets - Ending
(26,375,450)
697,877,182
1,623,823
696,253,359
$ 671.501.732 $ 697.877.182
For more detailed information see the Statement of Activities (page 14).
Governmental Activities — As noted earlier, governmental activities decreased the City's net assets by
$26,375,450. Key elements of this decrease are as follows:
The increase in charges for services in the current year was primarily due to an increase in impact fees and
private contributions.
The increase in operating and capital grants and contributions are primarily the result of a increase in U.S.
Department of Housing and Urban Development awards ($7.9 million) and an increase in grant awards
from the Free Trade Area of the Americas (FTAA) ($8.5 million).
Property taxes increased by 9.7% ($16.2 million) during the year. The increase was due to a 11.4% ($1.9
billion) increase of the net assessed value of taxable property. The City has decreased the overall millage
rate for the last five years to the cunent rate of 9.8425 (Operating: 8.7625, Debt Service: 1.08).
Investment earnings for fiscal year 2004 was reduced as a result of Citywide unrealised losses in
investments (GASB 31 Mark to Market) (excluding pension funds) of $2,581,436.
Community development expenses were impacted by increases in U.S. Housing and Urban Development
grant revenues resulting in increases in community development activities.
7
Public safety experienced an increase of $55.8 million in expenses. The primary reasons for the increase
was an increase of $20.8 million in the current year's pension plan contributions as well as an accrual for
pending litigation in the amount of $17.9 million.
Public facilities expenses increased by $6.8 million in fiscal 2004. This increase is primarily due to
operational and maintenance expenditures for the Orange Bowl ($1.5 million), marinas ($.3 million), and
affordable housing projects ($1.0 million).
Public works expense allocations are subject to annual classification of either maintenance (shown as
expenditures) or capital (capitalized and therefore not reflected as expenditures). There was a $20.3 million
increase in capital acquisitions resulting in a corresponding decrease in the operating expenditures for the
same amount. There was a $2.0 million increase in the operational expenses in the National Pollution
Discharge System activities.
Parks and recreation expense allocations are subject to annual classification of either maintenance (shown
as expenditures) or capital (capitalised and therefore not reflected as expenditures). There was a $23.5
million decrease in capital acquisitions resulting in a corresponding increase in the operating expenditures
for the same amount.
300,000
250,000
C
E■ 200,000
150,000
100,000
50.000
Expenses and Program Revenues - Governmental Activities
0
U
■ 1 1 1,I L,n ,n ,
7 age
8
Revenue by Source - Governmental Activities
Capital grants
and contributions
4%
Operating lets
and contributions
8%
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related
legal requirements.
Governmental Funds — The focus of the City's governmental funds is to provide information on near -term
inflows, outflows and balances of spendable resources. Such information is useful in assessing the City's
financing requirements. In particular, unreserved fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unreserved
fund balance of the General Fund was $133,413,642, while the total fund balance reached $136,852,762.
As a measure of the General Fund's liquidity, it may be helpful to compare both unreserved fund balance
and total fund balance to the fund's total operational expenditures. Unreserved fund balance represents
22.7% of the total expenditures and transfers -out for recurring operational costs reported in other funds,
while total fund balance represents 23.3% of that same total amount.
The General Fund's fund balance decreased by $5,009,574 during the current fiscal year. Key factors in
this decrease are as follows:
• An increase in taxable property values resulted in an additional $19,787,456 in property tax
revenue.
• Budgeted expenditures were less than actual amounts resulting in a $17,162,546 favorable
variance.
• Fund balance was reduced by $47 million of pension contributions which was an increase of
$28.5 million from the previous year.
9
Financial highlights of the City's other major governmental funds are as follows:
The Community Development Fund had a total fund balance of $8,656,528, of which $44,562 is reserved
for encumbrances. The increase in fund balance during the current year of $1,822,058 was attributable to
increased program activities as well as better grant management.
The Public Services Tax Fund had a total fund balance of $13,777,780, of which $8,916,249 is designated
for the payment of future settlements. The State of Florida modified the Public Services Tax (PST)
effective October 1, 2001, and it is now referred to as Communication Services Tax (CST).
The General Government Capital Projects Fund had a fund balance of $71,261,970, of which $4,486,337 is
reserved for encumbrances. The $19,055,605 decrease in fund balance from the prior year can be attributed
to the commencement of various capital projects in the current fiscal year.
The Street and Sidewalks Capital Projects Fund had a fund balance of $63,602,258, of which $14,267,046
is reserved for encumbrances. The $16,791,849 increase from the prior year can be attributed to the staging
of various capital projects to be started in the subsequent fiscal year.
GENERAL FUND BUDGETARY HIGHLIGHTS
The final General Fund budget was increased by $27,693,627 from the original budget (an increase of
6.59%). This increase can be summarized as follows (please see budget to actual comparison on page 59):
• $2,616,756 in miscellaneous increases in general government activities
• $43,146 in increases allocated to the Planning and Development department
• $687,149 in increases allocated to the Public Works department
• $18,967,443 in increases allocated to public safety
• $7,160 in decreases allocated to Public Facilities
• $34,947 in increases allocated to Parks and Recreation
• $5,337,026 in increases in transfers to other funds
All of the increases were funded by revenues in excess of the original budget estimates.
The budget for intergovernmental revenues was increased primarily due to recognition of $10,997,694
received under the provisions of Florida Statutes 175 and 185, to fund a separate non-contributory money
purchase benefit plan for the public safety employees of the City. Accordingly, the public safety function
experienced a $10,997,694 increase in the budget for personnel costs due to the recognition of the Chapter
175 and 185 pension trust plans payments. Additional information on the plan can be found in Note 11 on
page 48 in the notes to the financial statements.
10
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
As of year end, the City had $804,769,718, net of accumulated depreciation, invested in a variety of capital
assets, as reflected in the following schedule, which represents a net decrease (additions less retirements
and depreciation) of $3,172,020 or .40% from the end of prior year.
Capital Assets at Year End
(Net of Depreciation)
Land
Construction in Progress
Buildings
Improvements Other Than Buildings
Building Improvements
Machinery and Equipment
Infrastructure
Total
Governmental
Activities
2004 2003
$ 66,981,990
28,735,874
80,294,777
14,618,392
25,729,124
51,242,407
53 7,167,154
$ 64,372,140
52,458,462
84,190,700
5,429,933
1,866,036
47,833,422
551,791,045
$ 804.769,718 $ 807,941.738
Major capital asset events during the current fiscal year included the following:
• The City purchased various land in amount of $792,000 for the development of Little Haiti
Park. In addition, the City made land acquisitions for community and real estate development
in excess of $1.5 million dollars.
▪ Model city purchased Royalty Heights apartment building at a cost of approximately
$500,000.
• Also, $4 million was invested in the replacement of various City vehicles, police cars, and fire
and rescue apparatus. Additionally, the Police Department had a large purchase of a Freedom
Call recording system at a cost of approximately $556,000
Additional information on the City's capital assets can be found in Note 1 on page 30 and Note 6 on page
38 in the notes to the financial statements.
11
Long-term debt
At the end of the current fiscal year, the City had total bonded debt outstanding of $439,236,581. Of this
amount, $236,446,335 comprises debt backed by the full faith and credit of the City; the remainder
represents bonds and loans secured solely by specific revenue sources (i.e., revenue bonds).
Outstanding Debt
General Obligation Bonds, Special Obligations,
and Revenue Bonds and Loans
General Obligation Bonds
Special Obligation Bonds,
Revenue Bonds and Loans
Total
Governmental Activities
2004 2003
$ 236,446,335 $ 245,670,908
202,790,246 212,694,568
$ 439.236.581 $ 458,365.476
•
The City's total debt decreased $19,129,165 (or 4.2%) during the current fiscal year.
During the current fiscal year, the City refinanced a portion of its existing debt to take advantage of
prevailing market interest rates. This refinancing of the City's general obligation bonds resulted in a net
present value economic gain of $519,676.
The City maintained bond rating on its general obligation debt of A+ from Standard & Poor's and an
upgrade from Fitch Ratings from BBB+ to A- in February 2004.
Additional information on the City's long -team liabilities can be found in Note 9 on pages 42 - 47 in the
notes to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
The City's elected and appointed officials considered many factors when adopting the fiscal year 2004
budget. Included among these factors were uncertainties regarding the fire assessment fee, pension costs,
and health insurance costs, and various economic indicators.
Per the U.S. Department of Labor, the unemployment rate for South Florida is currently 5.7%, which is a
decreased from a rate of 7.5% a year ago. This rate is lower than the State's average unemployment rate of
5.1% and the national average rate of 6.0%. The region's inflation rate of 2.3% is comparable to the
national indices of 2.5%.
FINANCIAL CONTACT
The City's financial statements are designed to present users (citizens, taxpayers, customers, investors and
creditors) with a general overview of the City's finances and to demonstrate the City's accountability. If
users have questions about the report or need additional financial information, they should contact Scott
Simpson, Director of the City of Miami's Finance Department, 444 Southwest 2rd Avenue, 6th Floor
Finance, Miami, Florida 33130, or visit the City's web site at www.ci.miami.fl.us.
12
City of Miami, Florida
Statement of Net Assets
September 30, 2004
Governmental Component
Activities Units
Assets
Cash, Cash Equivalents and Investments $ 498,320,689 $ 27,615,119
Receivables - Net 38,290,002 2,347,059
Accrued Interest 2,448,182 8,480
Inventory - 5,000
Prepaids 754,271 509,492
Other Assets 606,224 182,742
Restricted Assets:
Cash, Cash Equivalents and Investments 14,539,511 726,420
Capital Assets:
Non -depreciable 95,717,864 21,039,562
Depreciable - Net 709,051,854 47,778,793
Deferred Charges - Bond Issuance Costs 3,949,056 331,346
Total Assets 1,363,677,653 100,544,013
Liabilities
Accounts Payable and Accrued Liabilities 47,090,235 2,471,081
Due to Other Governments 30,431 23,260
Deferred Revenue 11,426,509 676,781
Deposits 8,010,623 354,589
Accrued Interest Payable 4,665,723 1,262,026
Non -Current Liabilities
Due Within One Year:
Bonds and Loans Payable 18,770,229 33,505,000
Capital Lease 604,759
Compensated Absences 4,688,967 80,527
Claims Liability 32,539,863
Due In More Than One Year:
Bonds and Loans Payable 420,466,352 9,829,430
Capital Lease 1,921,177
Compensated Absences 63,244,412 23,918
Claims Liability 78,716,641
Total Liabilities 692,175,921 48,226,612
Net Assets
Invested in Capital Assets - Net of Related Debt 586,493,178 25,854,797
Restricted for:
Capital Projects 135,566,810 8,374,989
Debt Service 11,536,933 3,602,007
Law Enforcement 2,039,801 -
Unrestricted (Deficit) (64,134,990) 14,485,608
Total Net Assets $ 671,501,732 $ 52,317,401
13
The accompanying notes are an integral part of the fmancial statements.
Functions/Programs Activities:
Primary Government:
Governmental Activities:
General Government
Planning and Development
Curnnnmity Development
crxrmnmity Redevelopment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Interest on Long -Term Debt
Unallocated Depreciation
Total primary government
Component Units:
Miami Sports Exhibition Authority
Department of Off -Street Parking
Downtown Development Authority
Bayfront Park
Total component units
Expenses
$ 85,252,892
13,148,696
40,349,703
4,618,714
49,498,193
282,427,868
17,458,726
44,275,606
23,235,705
26,147,570
City of MiamFlorida
Statement of Activities
For the Year Ended September 30, 2004
Program Revenues
Charges for
Services
Operating
Grants and
Contributions
$ 48,955,278
14,352,919
2,069,068
220,517
42,608,182
48,507,121
16,736,649
3,308,314
$ 586,413,673 $ 176,758,048
39,820,229
605,428
947,564
1,594,487
$ 42,967,708
$ 7,124,119 $ 947,253 $ -
12,779,312 12,520,747 -
2,010,370 - 24,964
3,842,845 2,156,200 -
$ 25,756,616 $ 15,624,200 $ 24.964
General Revenues:
Taxes:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Convention Development Taxes
Franchise Fees and licensing Fees
State revenue sharing (sales tax and fuel tax)
Public Service Taxes
Investment Eammgs
Other
Total General Revenues
Change in Net Assets
Net assets - Beginning
Net assets - Furling
The accompanying notes are an integral part of the financial statements.
Capital
Grants and
Contributions
Net (Expenses) Revenue and Changes
in Net Assets
Primary- Government
Governmental
Activities
$ 738,032 $
494,609
237,945
14,738,617
33,375
3,709,496
19,952,074
Component
Units
(35,559,582) $
1,698,832
1,539,594
(4,398,197)
(6,046,638)
(218,234,566)
(688,702)
(35,663,309)
(23,235,705)
(26,147,570)
(346,735,843) $ -
$ (6,176,866)
(258,565)
(1,985,406)
(1,686,645)
$ (10,107,482)
163,056,413 2,422,101
19,932,162 -
9,046,022
35,024,215 620,750
32,631,162 -
60,024,832 -
5,618,813 202,794
4,072,796 1,279,281
320,360,393 13,5 70,948
(26,375,450) 3,463,466
697,877,182 48,853,935
671,501,732 $ 52,317,401
14
City of 14Frami, Florida
Balance Sheet
Governmental Funds
September 30, 2004
Assets
Cash, Cash Equivalents and Investments
Restricted Cash and Investments
Receivables
(Net of Allowances for Uncollectibles):
Accounts
Taxes
Special Assessments
Due from Other Funds
Due from Other Governments
Accrued Interest
Prepaids
Other Assets
Total Assets
Public Other Total
Community Services General Street & Governmental Governmental
General Development Tax Government Sidewalks Funds Funds
$ 162,921,516 $ 6,958,064 $ 4.043,058 $ 74,305,548 $ 65,404,257 $ 184,688,246 $ 498,320,689
190,958 - - - - 14,348,553 14,539,511
10,020,559
7,875,416
1,563,256
1,452,134
447,887
1,197,337 - - - 768,158 11,986,054
1,020,382 8,895,798
283,273 - - - 113,197 396,470
2,460,908 - - - 2,460,908
4,228,835 7,273,814 - - 3,945,775 17,011,680
19,806 - 182,938 218,167 575,137 2,448,182
306,384 754,271
306,224 300,000 606,224
$ 184,471,726 $ 12,687,315 $ 13,777,780 $ 74,488,486 $ 65,928,648 $ 206,065,832 $ 557,419,787
Liabilities and Fund Balances
Liabilities:
Accounts Payable and Accrued Liabilities $ 28,674,542 $ 3,069,222 $ - $ 3,113,150 $ 2,326,390 $ 7,246,876 $ 44,430,180
Due to Other Funds - - - - - 2,460,908 2,460,908
Due to Other Governments 28,406 - - - - 2,025 30,431
Deferred Revenue 12,129,667 890,382 - 113,366 - 2,453,036 15,586,451
Deposits 6,786,349 71,183 - - - 1,153,091 8,010,623
Total Liabilities 47,618,964 4,030,787 - 3,226,516 2,326,390 13,315,936 70,518,593
Fund Balances:
Reserved for:
Encumbrances 2,991,233 44,562 - 4,486,337 14,267,046 27,611,097 49,400,275
Debt Service - - - - - 10,386,933 10,386,933
Law Enforcement - - - - - 2,039,801 2,039,801
Prepaid Items 447,887 - - - - 306,384 754,271
Unreserved, Designated for, Reported in:
Subsequent Years Expenditures 39,157,336 - - - - 4,568,935 43,726,271
Future Settlements - - 8,916,249 - - - 8,916,249
Strategic Initiatives 1,648,710 - - - - - 1,648,710
Management Initiatives 53,264,960 - - - - - 53,264,960
Unreserved, Undesignated Reported in:
General Fund 39,342,636 - - - - - 39,342,636
Special Revenue Funds - 8,611,966 4,861,531 - - 22,093,006 35,566,503
Capital Projects Funds - - - 66,775,633 49,335,212 125,743,740 241,854,585
Total Fund Balances 136,852,762 8,656,528 13,777,780 71,261,970 63,602,258 192,749,896 486,901,194
Total Liabilities and Fund Balances $ 184,471,726 $ 12,687,315 $ 13,777,780 $ 74,488,486 $ 65,928,648 $ 206,065,832 $ 557,419,787
The accompanying notes are an integral part of the financial statements.
15
City of Miami, Florida
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets
September 30, 2004
Fund Balances - Total Governmental Funds $ 486,901,194
Amounts reported for governmental activities in the Statement of
Net Assets are different because:
Capital assets used in govermuental activities are not financial
resources and therefore are not reported in the govermuental funds.
Governmental Capital Assets
Less: Accumulated Depreciation
Other long-term assets are not available to pay for current period expenditures
and therefore are deferred in the funds.
Una:uortized bond issuance costs are not available to pay for current period
expenditures and therefore are not reported in the governmental funds.
Long-term liabilities are not due and payable in the cuurent period
and therefore are not reported in the governmental funds.
$ 1,446,092,354
(641,322,636) 804,769,718
4,159,942
3,949,056
Bonds and Loans Payable (439,236,581)
Capital Lease (2,525,936)
Compensated Absences (67,933,379)
Claims Liability (111,256,504)
Accrued interest Payable (4,665,723)
Accrued Liabilities (2,660,055) (628,278,178)
Net Assets of Governmental Activities $ 671,501,732
The accompanying notes are an integral part of the financial statements.
16
Revenues
Property Taxes
Franchise Fees and Other Taxes
Licenses and Permits
Fines and Forfeitures
Intergovernmental Revenues
Charges for Services
Interest
Impact Fees
Other
Total Revenues
Expenditures
Current Operating:
General Government
Planning and Development
Community Development
Community Redevelopment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Refunding Bonds Issued
Payments to Refunded Bond Escrow Agent
Capital Leases
Total Other Financing Sources (Uses)
Net Changes in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
City of Miami, Florida
Statement of Revenues, Expenditures, and Changes In Fund Balances
Governmental Funds
For The Year Ended September 30, 2004
General
Fund
Community
Development
Public
Services
Tax
General
Government
Street &
Sidewalks
Other
Governmental
Funds
$ 159,391,679 $ - $ - $
34,988,629 - 67,786,829
23,011,688 -
4,732,357 -
49,260,814 35,835,281
87,591,034 4,965,852
5,438,411 68,493
5,828,412 1,019,670 - 168,749 -
370,243,024 41,889,296 67,786,829 168,749 5,150,121
574,419
832,519
3,743,183
27,110,275
35,589
917,095
38,482,599
9,615,677
2,714,999
8,353,598
87,229.832
64,208,736
10,722,800
39,073,478
56,926,608
243,181,936
5,911,54
14,763,846
13,366,705
11,041,884
7,535,895
1,697,965
4,610,070
22,392,132
4,332,619
1,918,11
19,839,464
22,694,233
30,298,415
395,715,180
(25,472,156)
49,400,444
(32,142,211)
3,204,349
39,073,478
2,815,818
13,366,705 11,041,884
67,786,829 (13,197,956) (5,891,763)
672,550 - 58,010,454 33,095,291
(1,666,310) (60,812,983) (63,868,103) (10,411,679)
115,319,004
(28,089,172)
83,769,605
(56,047,058)
4,180,000
(4,062,502)
20,462,582
(5,009,574)
141,862,336
$ 136,852,762 $
Total
Governmental
Funds
$ 186,501,954
102,811,047
23,011,688
5,649,452
124,153,113
102,172,563
9,054,422
3,743,183
15,370,429
572,467,851
71,744,631
12,420,765
39,073,478
4,610,070
56,926,608
265,574,068
10,243,873
16,682,057
19,839,464
22,694,233
54,707,004
574,516,251
(2,048,466)
224,948,344
(224,948,344)
4,180,060
(4,062,502)
3,204,349
(993,760) (60,812,983) (5,857,649) 22,683,612 27,840,045 3,321,847
1,822,058 6,973,846 (19,055,605) 16,791,849 (249,127) 1,273,447
6,834,470 6,803,934 90,317,575 46,810,409 192,999,023 485,627,747
8,656,528 $ 13,777,780 $ 71,261,970 $ 63,602,258 $ 192,749,896 $ 486,901,194
The accompanying notes are an integral part of the financial statements.
17
City of Miami, Florida
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended September 30, 2004
Net Changes in Fund Balances - Total Governmental Funds $ 1,273,447
Amounts reported for governmental activities in the Statement of
Activities are different because:
Cumulative over funding of annual required pension contribution. (3,382,512)
Revenues in the statement of activities that do not provide current fmancial
resources are not reported as revenues in the funds.
Property Taxes (3,513,379)
Governmental funds report capital outlays as expenditures. However, in the Statement
of Activities, the costs of these assets are depreciated over their estimated useful lives.
This s amount is less than the total capital outlay since capital outlay includes amounts that
are under the capitalization threshold, and, therefore, were not capitalized.
Expenditures for Capital Assets
Less: Current Year Depreciation
The net effect of various miscellaneous transactions involving capital assets
(i.e., sales, trade-ins, and donations) is to decrease net assets.
Bond and lease proceeds provide current financial resources to governmental
funds. but issuing debt increases long-term liabilities in the
Statement of Net Assets. Repayment of bond loan and capital lease principal is a expenditure
in the governmental funds, but the repayment reduces long -teen
liabilities in the Statement of Net Assets. Also, governmental funds report the effect
of issuance costs, premiums, discounts and similar items when debt is first issued. where as
these amounts are deferred and amortized in the statement of activities.
$ 40,556,430
(41,657,284)
(1,100,854)
(2,071,166)
Refunding Bonds Issued (4,180,000)
Capital Lease (3,204,349)
Principal Paid on Bonds and Loans 19,839,464
Principal Paid on Capital Lease 678,413
Payment to Refunded Bond Escrow Agent 4,062,502
Refunding Bonds Issuance Costs 63,115
Amortization of Issuance Costs, Premiums, Discounts, and Accretion (2,013,121) 15,246,024
Some 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.
Compensated Absences (2,057,586)
Claims Liability (29,517,903)
Accrued Interest Payable 1,408,534
Accrued Liabilities (2,660,055) (32,827,010)
Change in Net Assets of Governmental Activities $ (26,375,450)
The accompanying notes are an integral part of the financial statements.
18
City of Miami, Florida
Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2004
Employee
Retirement
Funds
Assets
Cash and Short -Term Investments $ 39,871,290
Accounts Receivable 19,990,198
Capital Assets 4,344,932
64,206,420
Investments, at fair value
U.S. Government Obligations 268,238,933
Corporate Bonds 241,982,046
Corporate Stocks 1,083,579,875
Money Market Funds and Commercial Paper 17,072,002
Mutual Funds 58,003,816
Real Estate 30,263,649
Total Investments 1,699,140,321
Securities Lending Collateral 146,958,999
Total Assets 1,910,305,740
Liabilities
Obligations Under Security Lending 146,958,999
Accounts Payable 1,311,695
Accrued Liabilities 9,686,086
Payable for Securities Purchased 35,031,913
Total Liabilities 192,988,693
Net Assets
Held in Tntst for Pension Benefits $ 1,717,317,047
The accompanying notes are an integral part of the financial statements.
19
City of Miami, Florida
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30, 2004
Employee
Retirement
Funds
Additions
Contributions:
Employer $ 48,244,837
Plan Members 32,397,025
Total Contributions 80,641,862
Investment Earnings:
Net Increase in Fair
Value of Investments 149,872,508
Interest 25,470,262
Dividends 14,149,637
Other Income, net 3,281,096
Total Investment Earnings 192,773,503
Less Investment Expenses 6,248,780
Net Investment Earnings 186,524,723
Total Additions 267,166,585
Deductions
Benefits 95,042,669
Refunds upon Resignation, Death, etc. 1,191,082
Distribution to Retirees 9,916,255
Administrative and Other Expenses 2,419,336
Total Deductions 108,569,342
Change in Net Assets 158,597,243
Net Assets - Beginning of Year 1,558,719,804
Net Assets - End of Year $ 1.717.317,047
The accompanying notes are an integral part of the financial statements.
20
City of Miami, Florida
Statement of Net Assets
Discretely Presented Component Units
September 30, 2004
Miami Sports Department Downtown
and Exhibition of Off -Street Development Ba}front
Authority Parking Authority Park
Total
Assets
Cash, Cash Equivalents and Investments $ 16,081,780 $ 4,533,527 $ 3,122,874 $ 3,876,938 $ 27,615,119
Receivables (Net)
Accounts 75,338 1,317,791 - 729,575 1,615,704
Taxes 705,705 - 25,650 - 731,355
Accrued Interest 7,245 1,235 - - 8,480
Inventory - - - 5,000 5,000
Prepaids 261,595 243,076 - 4,821 509,492
Other Assets - 182,742 - - 182,742
Restricted Assets:
Cash Cash Equivalents and Investments - 626,420 - 100,000 726,420
Capital Assets:
Non -depreciable 7,080,662 13,442,771 - 516,129 21,039,562
Depreciable, Net 29,744,301 15,150,666 264,167 2,619,659 47,778,793
Deferred Charges - Bond Issuance Costs - 331,346 - - 331,346
Total Assets 53,956,626 35,829,574 3,412,691 7,345,122 100,544,013
Liabilities
Accounts Payable and Accrued Liabilities 186,346 2,095,457 92,013 97,265 2,471,081
Due to Other Governments - - 23,260 - 23,260
Deferred Revenue 21,389 411,414 4,771 239,207 676,781
Deposits - 205,268 - 149,321 354,589
Accrued lnterest Payable 1,016,673 245,353 - - 1,262,026
Non -Current Liabilities
Due Within One Year:
Bonds and Loans Payable 32,820,000 685,000 - - 33,505,000
Compensated Absences - - 80,527 - 80,527
Due In More Than One Year:
Bonds and Loans Payable - 9,829,430 - - 9,829,430
Compensated Absences - - 23,918 - 23,918
Total Liabilities 34,044,408 13,471,922 224,489 485,793 48,226,612
Net Assets
Invested in Capital Assets, Net of Related Debt 4,004,963 18,449,879 264,167 3,135,788 25,854,797
Restricted for:
Capital Projects 8,374,989 - - - 8,374,989
Debt Service 2,715,177 886,830 - - 3,602,007
Unrestricted 4,817,089 3,020,943 2,924,035 3,723,541 14,485,608
Total Net Assets $ 19,912,218 $ 22,357,652 $ 3,188,202 $ 6,859,329 $ 52,317,401
The accompanying notes are an integral part of the financial statements.
21
City of Miami, Florida
Statement of Acthities
Discretely Presented Component Units
For the Year Ended September 30, 2004
Expenses
Program Revenues
Operating Capital
Charges for Grants and Grants and
Services Conhibutions Contributions
Miami Sports
Exhibition Authority,
Culture and Recreation $ 7,124,119 $ 947,253 $
Total Miami Sports Exhibition Authority 7,124,119 947,253
Department
of Off -Street Parking
Transportation 12,779,312 12,520,747
Total Department of Off -Street Parking 12,779,312 12,520,747
Downtown
Development Authority
General Government 1 460,107 - 24,964
Community Development 550,263 - -
Total Downtown Development Authority 2,010,370 - 24,964
Bayfront Park
Parks and Recreation
Total Bayfront Park
Total Component Units
3,842,845 2,156,200
3,842,845 2,156,200
$ 25 756,646 $ 15,624,200 $ 24,964 $
The accompanying notes are an integral part of the financial statements.
General Revenues:
Taxes:
Property taxes, levied for general purposes
Convention Development Taxes
Licensing Fees
Investment Earnings
Other
Total General Revenues
Change in Net Assets
Net assets - Beginning
Net assets - Ending
22
Net (Expense) Revenue and
Changes in Net Assets
Miami Sports Department Downtown
and Exhibition of Off -Street Development Bayfront
ont
Authority- Parking Authority- Park
$ (6,176,866) $
(6,176,866)
(6,176,866)
(258,565)
(258,565)
(1,435,143)
(550,263)
(1,985,406)
(258,565) (1,985,406)
- 2,422,101
9,046,022
103,436 59,079 8,013
97
9,149,555
59,079 2,430,114
Totals
$ - $ (6,176,866)
(6,176,866)
(258,565)
(258,565)
(1,435,143)
(550,263)
(1,985,406)
(1,686,645) (1,686,645)
(1,686,645) (1,686,645)
(1,686,645) (10,107,482)
- 2,422,101
9,046,022
620,750 620,750
32,266 202,794
1,279,184 1,279,281
1,932,200 13,570,948
2,972,689 (199,486) 444,708 245,555 3,463,466
16,939,529 22,557,138 2,743,494 6,613,774 48,853,935
$ 19,912,218 $ 22,357,652 $ 3,188,202 $ 6,859,329 $ 52,317,401
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24
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2004
NOTE 1. - SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The accompanying financial statements of the City
have been prepared in accordance with accounting
principles generally accepted in the United States of
America ("GAAP") as applied to governmental units.
The Governmental Accounting Standards Board
("GASB") is the standard -setting body for
governmental accounting and financial reporting. The
GASB periodically updates its codification of the
existing Governmental Accounting and Financial
Reporting Standards which, along with subsequent
GASB pronouncements (Statements and
Interpretations), constitutes GAAP for governmental
units. The more significant of these accounting
policies are described below.
A. Repotting Entity
The City of Miami, Florida (the "City"), in the
County of Miami -Dade, was incorporated in 1896,
and has a population of approximately 362,000. The
City is situated at the mouth of the Miami River on
the western shores of Biscayne Bay and is a main
port of entry into Florida and is the county seat of
Miami -Dade County, Florida. The City comprises
34.3 square miles of land and 19.5 square miles of
water.
The City Charter was adopted by the electors of the
City of Miami at an election held on May 17, 1921
and was legalized and validated by Chapter 9024 of
the laws of the State of Florida of 1921. During
fiscal year 1997, the residents of the City voted on a
referendum that created single -member districts and
an Executive Mayor form of government. The City
continues to operate under the Commission/City
Manager form of government and provides the
following services: police and fire protection,
public works activities, solid waste collection, parks
and recreational facilities, planning and
development, community development, financial
services and general administrative services.
The Florida Legislature, in 1955, approved and
submitted to a general election, a constitutional
amendment designed to give a new form of
government to Miami -Dade County, Florida (the
"Comity"). The County is, in effect, a municipality
with governmental powers affecting thirty cities and
unincorporated areas, including the City. The
County has not displaced nor replaced the cities'
powers, but supplements them. The County can take
over particular activities of the City's operations if
(1) the services fall below minimum standards set
by the County Commission, or (2) with the consent
of the governing body of the City. Accordingly, the
County's financial statements are not included in
this report.
The accompanying financial statements include
those of the City (the primary government) and
those of its component units. Component units are
legally separate organizations for which the primary
government is financially accountable or
organizations which should be included in the
City's financial statements because of the nature
and significance of their relationship with the
primary government.
The decision to include a potential component unit
in the City's reporting entity is based on the criteria
stated in GASB Statement No. 14 - The Financial
Reporting Entity, which includes the ability to
appoint a voting majority of an organization's
governing body and (1) the ability of the City to
impose its will on that organization or (2) the
potential for the organization to provide specific
financial benefits to, or impose specific financial
burden on, the City.
Based upon the application of the criteria in GASB
Statement No. 14, the financial statements of the
component units listed on the following pages have
been included in the City's reporting entity as either
blended or discretely presented component units.
Blended component units, although legally separate
entities, are, in substance, part of the City's
operations. Accordingly, data from these
component units are included with data of the
25
CITY OF MTAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
primary government. Each discretely presented
component unit, on the other hand, is reported in a
separate column in the financial statements to
emphasize that they are legally separate from the
City. The financial activities and balances for each
blended and discretely presented component unit
are as of and for the period ended September 30,
2004.
Blended Component Units
SOUTHEAST OVERTOWN PARK WEST
REDEVELOPMENT AGENCY ("SEOPW")-
SEOPW is an Agency established by the City in
1982 under the authority of Chapter 163, Florida
Statutes and City Resolution No. 82-755. The City
has entered into an interlocal agreement with
Miami -Dade County approving the deposit of tax
increments into the Redevelopment Trust Fund.
The members of City Commission are also the
Board of Directors of the SEOPW. The City has
issued debt for SEOPW and is responsible under the
interlocal agreement for disbursement,
accountability, management and proper application
of all monies paid into the Trust. The funds of the
SEOPW included within the reporting entity are
special revenue fund (SEOPW CRA), a debt service
fund (CRA - Other Special Obligation), and a
capital projects fund (Community Redevelopment
Agency).
OMNI REDEVELOPMENT AGENCY ("ORA")-
ORA is an Agency established by the City in 1986
under the authority of Chapter 163, Florida Statutes
and City Resolution No. 86-868. The City has
entered into an interlocal agreement with Miami -
Dade County approving the deposit of tax
increments into the Redevelopment Trust Fund.
The members of the City Commission are the Board
of Directors of the ORA. The City is also
responsible under the interlocal agreement for
disbursement, accountability, management and
proper application of all monies paid into the Trust.
ORA is included within the reporting entity as a
special revenue fiend (Omni CRA).
VIRGINIA KEY BEACH PARK TRUST
("VKBPT") — On December 14, 2000 (and effective
January 2001), via sections 38-230 through 38-242
of Chapter 38 of the Code of the City of Miami
Ordinance 12003, the Trust was established and
acts as a limited agency and instrumentality of the
City of Miami. Its general purposes, in cooperation
with City of Miami, are to preserve, restore, and
maintain the Historic Virginia Key Beach Park in a
manner consistent with environmental health,
historical importance of the Park and the aspirations
of the African American Community; make it
accessible to the general public; propose policy,
planning, and design to ensure maximum
community utilization and enjoyment. The City
Commission must approve VKBPT's board
membership and operating budget. Therefore, the
City is financially accountable and is presenting
VKBPT in the reporting entity as a special revenue
fund within the Parks and Recreation Special
Revenue Fund.
MODEL CITY COMMUNITY
REVITALIZATION DISTRICT TRUST ("Model
City") — On July 10, 2001, via section 2-892 of
Chapter 2 of the Code of the City of Miami
ordinance 12082, the Trust was established and acts
as a limited agency and instrumentality of the City
and provides services entirely or almost entirely to
the primary government. The Trust, in cooperation
with Department of Community Development and
other City departments, is responsible for oversight
and facilitating the City's revitalization efforts for
the redevelopment of the Model City Community
Revitalization District in a manner consistent with
the strategy identified in the Five Year
Consolidated Plan, adopted by the City Commission
in August, 1999. The City Commission must
approve Model City's board membership and
operating budget. Therefore, the City is financially
accountable and is presenting Model City in the
reporting entity as a special revenue fund within the
Economic Development and Planning Services
Special Revenue Fund.
NEIGHBORHOOD IMPROVEMENT DISTRICTS
There are four neighborhood improvement districts.
All four districts were inactive during fiscal year
2004.
26
CITY OF MTAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Discretely Presented Component Units
MIAMI SPORTS AND EXHIBITION
AUTHORITY ("MESA") — The MSEA was created
by the City in 1983 pursuant to Chapter 212.0305,
Florida Statutes and City Ordinance No. 9662 to
promote the development of sports, convention and
exhibition facilities within the City using the 3%
Convention Development Tax collected by the
County. The City Commission must approve
MSEA's board membership and operating budget.
Therefore, the City is financially accountable and is
discretely presenting the MSEA in the
accompanying financial statements.
DOWNTOWN DEVELOPMENT AUTHORITY
("DDA") — The DDA was created by the City in
1965 pursuant to Chapter 65-1090 of the General
Laws of Florida and City Code Section 14-25. DDA
is governed by a board appointed by the City
Commission and was established for the purpose of
furthering the development of the Downtown
Miami area. The City Commission must approve
the DDA's operating budget and the millage levied
on the special taxing district established to fund the
DDA. Therefore, the City is financially accountable
and is discretely presenting the DDA in the
accompanying financial statements.
DEPARTMENT OF OFF-STREET PARKING
("DOSP") - DOSP was originally created in 1955
by a special act of the Florida State Legislature and
subsequently incorporated into the City's Charter in
1968. DOSP is an agency and instrumentality of the
City which owns and operates parking facilities
within the City. The City Commission has reserved
the right to confinn new members of the Off -Street
Parking Board, to establish and fix rates and
charges for parking services, to approve the DOSP
operating budget and to authorize the issuance of
revenue bonds. Therefore, the City is financially
accountable and is discretely presenting DOSP in
the accompanying financial statements.
BAYFRONT MANAGEMENT TRUST ("BFP") —
BFP was established by the City in 1987 under the
authority of City of Miami Resolution No. 10348.
BFP was created for the purpose of managing and
27
operating the events held at Bayfront and
Bicentennial Park and the daily maintenance and
upkeep of the grounds, its various amenities
including the amphitheater and the Mildred and
Claude Pepper Fountain. The governing body of
BFP consists of nine appointed members serving
initial terms of one to three years. Upon expiration
of an initial term, each successor member may be
appointed by the City Commission for terms of one
to three years. BFP has appointed an executive
director to act as the chief executive officer, subject
to policy directives. BFP prepares and submits an
annual budget request and master plan to the City
Commission for its approval for each fiscal year.
Therefore, the City is financially accountable and is
discretely presenting BFP in the accompanying
financial statements.
HEALTH FACILITY AUTHORITY ("FIFA") —
The HFA is an agency established by the City in
1979 under the authority of Chapter 154, Florida
Statutes and City Resolution No. 79-93 to serve as a
conduit to issue revenue bonds. The City
Commission must approve HFA's board
membership and operating budget. Therefore, the
City is financially accountable and is discretely
presenting HFA in the accompanying financial
statements. Debt obligations issued under the
purview of the HFA do not constitute an
indebtedness, liability or pledge of the faith or
credit of the HFA or the City. The aggregate
amount of conduit debt obligations totaled
$138,480,000 at September 30, 2004. HFA, does
not issue stand-alone audited financial statements.
The HFA was inactive during fiscal year 2004.
Complete financial information of the individual
component units may be obtained at the entity's
respective administrative offices as follows:
SEOPW
49 NW 5th Street, Suite 100
Miami, Florida 33128
ORA
49 NW 5th Street, Suite 100
Miami, Florida 33128
CITY OF MTAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
VKBPT
3550 Biscayne Blvd., Suite 510
Miami, Florida 33137-8311
Model City
4800 NW 12th Avenue
Miami, Florida 33142
MSEA
701 Arena Blvd.
Miami, Florida 33136
DOSP
190 NE 3t Street
Miami, Florida 33132
DDA
330 North Biscayne Blvd.
11th Floor
Miami, Florida 33132
BFP
301 N. Biscayne Blvd.
Miami, Florida 33132-2226
B. Government -Wide Financial Statements
The government -wide financial statements (i.e., the
Statement of Net Assets and the Statement of
Activities) report information on all of the non -
fiduciary activities of the City as a whole and its
component units. The primary government is
reported separately from the legally separate
component units. The Statement of Net Assets
presents the financial position of the City and its
component units at the end of its fiscal year. The
Statement of Activities demonstrates the degree to
which the direct expenses of a given function or
segment are offset by program revenues. Direct
expenses are those that are clearly identifiable with
a specific function or segment. Program revenues
include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods,
services, 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 a particular function or segment.
Taxes and other items not properly included among
program revenues are reported instead as general
revenues.
Separate financial statements are provided for
governmental funds and fiduciary funds, even
though the latter are excluded from the government -
wide financial statements. Major individual
governmental funds are reported as separate
columns in the fund financial statements. All
remaining non -major governmental funds are
aggregated and reported as other governmental
funds.
C. Fund Financial Statements
The accounts of the City are organized and operated
on the basis of funds. A fund is an independent
fiscal and accounting entity with a self -balancing
set of accounts which comprise its assets, liabilities,
fund balances/net assets, revenues and expenditures.
Fund accounting segregates funds according to their
intended purpose and it is used to aid management
in demonstrating compliance with finance related
legal and contractual provisions. The City
maintains the minimum number of funds consistent
with legal and managerial requirements. The focus
of governmental fund financial statements is on
major funds as that term is defined in professional
pronouncements. Each major fund is to be
presented in a separate column, with non -major
funds, aggregated and presented in a single column.
The City maintains fiduciary funds which are
reported by type. Since the governmental fluid
statements are presented on a different basis
measurement focus and basis of accounting than the
government -wide statements' governmental
activities column, a reconciliation is presented on
the statements or on the page following, which
briefly explains the adjustments necessary to
transform the fund based financial statements into
the governmental activities column of the
government -wide presentation. The City reports the
following major governmental funds.
General Fund — The General Fund is the general
operating fund of the City. General tax revenues
and other receipts that are not allocated by law or
contractual agreement to some other fund are
28
CITY OF MTAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
accounted for in this fund. General operating
expenditures, fixed charges, and capital
improvement costs not paid through other funds are
paid from this fund.
Community Development Fund — This Special
Revenue Fund accounts for the proceeds from the
Federal Government under the U. S. Department of
Housing and Urban Development.
Public Services Tax Fund — This Special Revenue
Fund accounts for the utility service tax levied on
purchases of public services.
General Government Fund — This Capital
Projects Fund accounts for capital expenditures
made for general government operations.
Streets and Sidewalks Fund — This Capital
Projects Fund accounts for capital expenditures
made for streets, sidewalks, and other traffic related
prof ects.
Additionally, the City reports the follow fund types:
Pension Trust Funds - The pension trust funds
divide the City of Miami Fire Fighters' and Police
Officers' Retirement Trust ("FIPO"), the City of
Miami General Employees' and Sanitation
Employees' Retirement Trust ("GESE") and the
Elected Officers' Retirement Trust ("EORT"). The
pension trust funds accumulate resources for
pension benefit payments.
D. 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 of accounting, as are the
fiduciary fund financial statements. Revenues are
recorded when earned and expenses are recorded
when a liability is incurred, regardless of the timing
of related cash flows. Property taxes are recognized
as revenues in the year for which they are levied.
Grants and similar items are recognized as revenue
as soon as all eligibility requirements imposed by
the provider have been met.
Governmental fund financial statements are
reported using the current financial resources
measurement focus and the modified accrual basis
of accounting. Revenues are recognized as soon as
they are both measurable and available. Revenues
are considered to be available when they are
collectible within the current period or soon enough
thereafter to pay liabilities of the current period.
For this purpose, the City considers revenues to be
available if they are collected within 60 days of the
end of the fiscal period. Revenues resulting from
expenditure driven transactions such as certain
grants are considered collectible at the time the
expenditure has been made. Expenditures generally
are recorded when a liability is incurred, as under
accrual accounting. However, debt service
expenditures, as well as expenditures related to
compensated absences and claims are recorded only
when payment is due.
Property taxes, sales tax, franchise and utility taxes,
licenses, and interest associated with the current
fiscal period are all considered to be susceptible to
accrual and so have been recognized as revenues of
the current fiscal period. All other revenue items
are considered to be measurable and available only
when cash is received by the City.
As a general rule, the effect of interfund activity has
been eliminated from the government -wide
financial statements.
Amounts reported as program revenues include 1)
charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants
and contributions, and 3) capital grants and
contributions, including special assessments.
Internally dedicated resources are reported as
general revenues rather than program revenues.
Likewise, general revenues include all taxes.
When both restricted and unrestricted resources are
available for use, it is the City's policy to use
restricted resources first, then unrestricted resources
as they are needed.
29
CITY OF MTAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
E. Assets, Liabilities and Net Assets or Equity
Deposits and Investments
The City has defined "cash and cash equivalents" to
include cash on hand, demand deposits, and cash
with fiscal agents. Each fund's equity in the City's
investment pool is considered to be a cash
equivalent since the funds can be deposited or
effectively withdrawn at any time without prior
notice or penalty.
All investments, including those of the Pension
Trust Funds, are stated at fair value, which is based
on quoted market price.
Interfund Receivables and Payables
Activity between funds that is representative of
lending/bon-owing arrangements outstanding at the
end of the fiscal year are referred to as "due to/from
other funds".
Receivables
Receivables include amounts due from other
governments and others for services provided by the
City. Receivables are recorded and revenues are
recognized as earned or specific program
expenditures are incurred. Allowances for
uncollectible receivables are based upon historical
trends and the periodic aging of receivables.
Prepaids
Prepaid items consist of certain costs which have
been paid prior to the end of the fiscal year, but
represent items which are applicable to future
accounting periods. Reported amounts in
governmental funds are equally offset by a
reservation of fund balance, in the fund financial
statements, which indicates that these amounts do
not constitute "available spendable resources" even
though they are a component of current assets.
Inventory
There are no inventory values presented in the
balance sheets of the respective governmental funds
of the City. Purchases of inventoriable items are
recorded as expenditures at the time of purchase
and year-end balances at these locations are not
material.
Restricted Assets
Certain proceeds from bonds and loans, as well as
resources for debt service payments, and law
enforcement trust monies, are classified as restricted
assets because their use is limited by applicable
bond convenants and restrictions.
Capital Assets
Capital assets, which include property, plant,
equipment and infrastructure (e.g. roads, sidewalks,
drainage and similar items), are reported in the
applicable governmental type activities column in
the government -wide financial statements. Capital
assets are defined by the City as assets with an
initial cost of $1,000 or more and an estimated life
in excess of one 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 on the
date of the donation.
Major outlays for capital assets and improvements
are capitalized as projects are constructed. The cost
of normal maintenance and repairs that do not add
to the value of the asset or materially extend asset
lives are not capitalized.
Property, plant, equipment and infrastructure of the
City, and its component units, are depreciated using
the straight-line method over the following use
lives.
Asset
Years
Buildings
Improvements other than buildings
Machinery and equipment
Vehicles (including heavy equipment)
Infrastructure
20-50
10-30
3-15
3-10
15-50
30
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Deferred Charges
Deferred charges in the government -wide financial
statements represent the unamortized portion of the
cost of issuance of bonds. These costs are being
amortized over term of the respective bond issue.
Deferred Revenue
Deferred revenue arises when assets are recognized
before revenue recognition criteria has been
satisfied. In the government -wide financial
statements, deferred revenues consist of unearned
revenue or revenue from grants received before the
eligibility requirements have been met.
Deferred revenues in the fund financial statements
are those assets where asset recognition criteria has
been met, but for which revenue recognition criteria
has not been met. Such amounts have been deemed
to measurable but not "available" pursuant to
accounting principles generally accepted in the
United States.
Compensated Absences
It is the City's policy to permit employees to
accumulate earned but unused vacation and sick
leave, which will be paid upon separation from
service. The liability for such accumulated leave is
reflected in the government -wide financial
statements as current and long-term liabilities. A
liability for these amounts is reported in the
governmental funds only if they have matured, for
example, as a result of employee resignations and
retirements. The liability for compensated absences
includes salary related payments, where applicable.
Long -Term Obligations
In the government -wide financial statements, long-
term debt and other long-term obligations are
reported as liabilities in the statement of net assets.
Bond premiums and discounts, as well as issuance
costs, are deferred and amortized over the life of the
bonds using the effective interest method. Bonds
payable are reported net of the applicable bond
premium or discount. Bond issuance costs are
reported as deferred charges and amortized over the
term of the related debt.
In the fund financial statements, governmental fund
types recognize bond premiums and discounts, as
well as bond issuance costs, during the current
period. The face amount of debt issued is reported
as other financing sources. Premiums received on
debt issuances are reported as other financing
sources, while discounts on debt issuances are
reported as other financing uses. Issuance costs,
whether or not withheld from the actual debt
proceeds received, are reported as debt service
expenditures.
Net Assets
Equity in the government -wide state of net assets is
displayed in three categories: 1) invested in capital
assets, net of related debt, 2) restricted, 3)
unrestricted. Net assets invested in capital assets
net of related debt consists of capital assets reduced
by accumulated depreciation and by any
outstanding debt incurred to acquire, construct, or
improve those assets, excluding unexpended
proceeds. Net assets are reported as restricted when
there are legal limitations imposed on their use by
City legislation or external restrictions by other
governments, creditors, or grantors. Unrestricted
net assets consist of all net assets that do not meet
the definition of either of the other two components.
Fund Equity
In the fund financial statements, governmental
funds report reservations of fund balance for
amounts that are not available for appropriation or
are legally restricted by outside parties for use for a
specific purpose. Designations of unreserved fund
balance in governmental funds indicate the
utilization of these resources in the ensuing year's
budget or tentative plans for future use. The
following is a description of the reserves and
designations used by the City.
Reserve for encumbrances - This amount is equal to
the outstanding purchase orders for goods and
services at year end. The subsequent year's
31
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
appropriations will be amended to provide the
authority to complete the transactions.
Reserve for debt service - This is the amount of
fund equity in the Debt Service Funds, which is set
aside for the repayment of outstanding debt.
Reserve for prepaid items - This reserve is provided
to account for payments made in advance. This
reserve indicates the funds are not "available" for
appropriation or expenditure even though they are a
component of cinrent assets.
Reserve for law enforcement trust fund - This is the
amount of the outstanding commitments of the Law
Enforcement Trust Fund.
Designated for subsequent year's expenditures —
These are amounts are to be appropriated in the
ensuing year's budget.
Designated for future settlements - These are
amounts that are to be appropriated in future years
for lawsuits and claims that management has
determined are probable and the amount of that loss
can be reasonably estimated.
Designated for strategic initiatives — These are
amounts that are to be appropriated in future years
for those projects that either enhance revenue
producing activities or reduce future expenditures.
Designated for management initiatives - These are
amounts that are to be appropriated in future years
for those specific projects that management has
approved and has set aside monies to pay for these
items in accordance with the City's Financial
Integrity Ordinance.
Use of Estimates
The preparation of the financial statements in
conformity with accounting principles generally
accepted in the United States requires management
to make estimates and assumptions that affect the
reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the
date of the financial statements. Estimates also
affect the reported amounts of revenues and
expenditures during the reporting period. Actual
results could differ from estimates.
NOTE 2. — STEWARDSHIP, COMPLIANCE
AND ACCOUNTABILITY
Excess of Expenditures over Appropriations
The expenditures of the Gusman and Olympia
Special Revenue Fund exceeded their budgetary
authorizations by $559,409.
Fund Deficits
The following funds had undesignated deficits in
the amounts indicated as of September 30, 2004:
Fund:
Special Revenue Funds:
Fire Rescue Services
Police Services
Capital Projects Fund:
Disaster Recovery
$ 205,039
2,015,806
2,161,039
These undesignated deficits are the result of
encumbrances exceeding available fund balances.
The City plans to eliminate these deficits in the
ensuing fiscal year.
NOTE 3. — DEPOSITS AND INVESTMENTS
Deposits
The City maintains a cash management pool for its
cash and cash equivalents in which each fund
and/or account or sub -account of a fund participates
on a dollar equivalent and daily transaction basis.
Interest income (which includes unrealized gains
and losses) is distributed monthly based on a
monthly average balance. The use of zero balance
accounts with daily sweeps allows for the City's
portfolio to be fully invested at all times.
In addition to insurance provided by the Federal
Depository Insurance Corporation, deposits are held
32
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
in banking institutions approved by the State
Treasurer of Florida to hold public funds. Under
Florida Statutes Chapter 280, Florida Security for
Public Deposits Act, the State Treasurer requires all
Florida qualified public depositories to deposit with
the Treasurer or another banking institution eligible
collateral. In the event of failure of a qualified
public depository, the remaining public depositories
would be responsible for covering any resulting
losses. Accordingly, the City's deposits, and all
discretely presented component unit deposits, at
year end are insured or collateralized with securities
held by the entity or by its agent in the entity's
name.
Investments
As required by Florida Statutes, the City has
adopted a written investment policy, which may,
from time to time, be amended by the City
Commission. The City Code authorizes the
Director of Finance to purchase and invest idle
funds prudently in U. S. Treasuries and obligations
of agencies of the United States, provided such are
guaranteed by the United States or by the issuing
agency; general obligations of states,
municipalities, school districts, or other political
subdivisions, revenue and excise tax bonds of the
various municipalities of the State of Florida,
provided none of such securities has been in default
within five years prior to date of purchase,
negotiable certificates of deposit, bankers
acceptance drafts, money market investments, and
prime commercial paper.
The Local Government Surplus Funds Trust Fund is
governed by Ch. 19-7 of the Florida Administrative
Code, which identifies the Rules of the State Board
of Administration. These rules provide guidance
and establish the general operating procedures for
the administration of the Local Government Surplus
Funds Trust Fund. Additionally, the State of
Florida Office of the Auditor General performs the
operational audit of the activities and investments of
the State Board of Administration.
The fair value of the position in the external
investment pool is the same as the value of the pool
shares.
Investments are categorized to give an indication of
the level of risk assumed by the entity at year end.
The three categories of risk are as follows:
1 - Insured or collateralized with securities held
by the entity or by its agent in the entity's name;
2 - Collateralized with secrurities held by the
pledging financial institution's trust department or
agent in the entity's name; and
3 - Uncollateralized, including any bank balance
that is collateralized with securities held by the
pledging financial institution, or by its trust
department or agent but not in the entity's name.
33
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The City's non -pension investments consisted of the following at September 30, 2004 and are classified as
follows:
Primary Government
Investment Type:
U.S. Treasury Notes and Bills
U.S. Agencies Obligations
Short -Term Commercial Paper
Total
Credit Risk Category
1 2
Fair Value
$ 7,306,751 $
457,409,715 1,860,368
33,469,457
$ 498.185.923 $ 1.860.368
Investments Not Subject to Risk Categorization:
Money Market Mutual Fund
Total Investments
$ 7,279,160
456,715,705
33,469,025
497,463,890
14,657,082
$ 512.120.972
Investments in the money market mutual fund are not required to be categorized since the investments
are not evidenced by securities that exist in physical or book entry form.
Reconciliation of Deposits and Investments to the Statement of Net Assets:
By Category:
Deposits
Investments
Statement of Net Assets
Cash, Cash Equivalents and Investments
Restricted Assets - Cash, Cash Equivalents and Investments
$ 739,228
512,120,972
$ 512,860,200
$ 498,320,689
14,539,511
$ 512.860.200
34
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Component Units
DOSP Fair
MSEA Category 2 Total Value
Investment Type:
U.S. Government Securities $ - $ 1,761,243 $ 1,761,243 $ 1,761,243
Investments Not Subject to Risk Categorization:
Money Market Mutual Fund 13,510,396 13,510,396
Investment Pool - 863,428 863,428
Total Investments $ 13,510,396 $ 2,624,671 $ 16,135,067
Investments in the money market mutual fund and the investment pool are not required to be categorized
since the investments are not evidenced by securities that exist in physical or book entry form.
Reconciliation of Deposits and Investments to the Statement of Net Assets:
Deposits Investments Total
MSEA $ 2,571,384 $ 13,510,396 $ 16,081,780
DOSP 2,535,276 2,624,671 5,159,947
DDA 3,122,874 3,122,874
BFP 3,976,938 3,976,938
$ 12.206.472 S 16.135.067 $ 28.341.539
Statement of Net Assets
Cash, Cash Equivalents and Investments $ 27,615,119
Restricted Assets - Cash, Cash Equivalents and Investments 726,420
$ 28.341.539
PENSION TRUST FUNDS
Credit Risk
Category 1 Fair Value
U.S. Government and Agency $ 222,836,767 $ 222,836,767
Corporate Stocks 994,458,688 994,458,688
Corporate Bonds 232,855,204 232,855,204
Total $ 1.450.150.659 1,450,150,659
Investments Not Categorized:
Investments Held By Broker -Dealer Under Securities Loans With Cash Collateral
U.S. Government and Agency 45,402,166
Corporate Stocks 89,121,187
Corporate Bonds 9,126,842
Money Market Funds 17,072,002
Mutual Funds 58,003,816
Real Estate Fund 30,263,649
Total Pension Investments $ 1,699,140,321
Investments in money market funds, mutual funds and the real estate fund are not categorized to give an
indication of the level of risk assumed by the entity at year end because they are not evidenced by securities that
exist in physical or book entry form. Short-term investments totaling $39,871,290 in mutual funds and
investment pools are also not categorized.
35
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The following represents the balances relating to securities lending transactions at September 30, 2004:
Securities lent:
Lent for cash collateral:
U.S government and
agency obligations
Domestic corporate stocks
Domestic corporate bonds
International corporate stocks
Lent for securities collateral:
U.S government and
agency obligations
Domestic corporate stocks
Domestic corporate bonds
International corporate stocks
Total securities lent
Fair Value Cash Colleteral
Underlying ReceivedlSecurities Cash Collateral
Securities Collateral Value Investment Value
45,402,166 $ 46,257,034 $ 45,257,034
81,643,970 83,548,975 83,548,975
9,126,842 9,332,517 9,332,517
7,477,217 7,820,473 7,820,473
143,650,195
146,95 8,999 145,958,999
6,086,857
3,390,728
433,103
6,200,255
3,472,403
435,481
9,910,688 10,108,139
$ 153.560.883 $ 157.067.138 $ 145.958.999
The contract with the Trust's custodian requires the custodian to indemnify the Trust if the borrower fails to
return the securities, due to the insolvency of a borrower, and the custodian has failed to live up to its
contractual responsibilities relating to the lending of those securities. At year end, the Trust had no credit risk
exposure to borrowers because the amounts of collateral held by the Trust exceeded the amounts the borrowers
owe the Trust. There are no significant violations of legal or contractual provisions, no borrowers or lending
agent default losses, and no recoveries of prior period losses during the year. Additionally, there are no income
distributions owing on securities lent.
The City's pension plans (the Plans) have investments in a combination of stocks, bonds, governments
securities and other investment sectuties. Investment securities are exposed to various risks such as interest
rate, market, and credit risk. Due to a level of risk associated with certain investments securities and the level
of uncertainty related to changes in value of investment securities, it is least reasonably possible that changes in
risks in the near term would materially affect balances and the amounts reported in the Statement of Fiduciary
Net Assets and the Statement of Changes in Fiduciary Net Assets. The Plans, through their investment
advisors, monitor their investments and the risks associated therewith on a regular basis, which the City
believes minimizes these risks.
36
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
NOTE 4. - RECEIVABLES
Receivables at year end for the City is individual major funds and non -major funds in the aggregate, including
the applicable allowances for uncollectible accounts, are as follows:
Receivables
Accounts
Taxes
Special Assessments
Due from Other
Governments
Loans
Gross Receivables
Less: Allowance
for Uncollectibles
Net Total Receivables
General
$ 21,226,603
7,875,416
1,563,256
288,000
30,953,275
Community
Development
$ 2,790,638
283,273
4,228,835
56,948,944
64,251,690
Public
Services Tax
$ -
General
Government
$ 575,000
Nonmajor
Governmental
Funds
$ 845,366 $
1,020,382
113,197
7,273,814 - 3,945,775
7,273,814
575,000 5,924,720
Total
25,437,607
8,895,798
396,470
17,011,680
57,23 6,944
108,978,499
(11,494,044) (58,542,245) - (575,000) (77,208) (70,688,497)
$ 19,459,231 $ 5,709,445 $ 7,273,814 $ - $ 5,847,512 $ 38,290,002
As part of its Community Development Block Grant program, the City issues single and multi -family housing
rehabilitation loans to qualified residents. All repayments of the loans, which carry low interest rates, remain in
the loan program. As collection of the loans is not assured the loans are fully reserved. As of September 30,
2004, rehabilitation loans outstanding totaled approximately $56,948,944.
Component Units
MSEA DOSP DDA
BFP Total
Receivables
Accounts $ 75,338 $ 1,350,762 $
Taxes 705,705
Gross Receivables
Less: Allowance for
Uncollectibles
- $ 240,223 $ 1,666,323
25,650 - 731,355
781,043 1,350,762 25,650 240,223 2,397,678
(32,971)
- (17,648) (50,619)
Net Total Receivables $ 781.043 $ 1.317.791 $
25.650 $ 222.575 $ 2.347.059
NOTE 5. - PROPERTY TAXES
Property taxes are levied on January 1st and are
payable on November 14, with discounts of one to
four percent allowed if paid prior to March 1 of the
following calendar year. Taxpayers also have the
option of paying their taxes in advance in equal
quarterly payments based on the prior year's tax
assessment with quarterly discounts varying
between 2% and 6%. All unpaid taxes on real and
personal property become delinquent on April 14
and bear interest at 18% until a tax sale certificate is
sold at auction. The County bills and collects all
property taxes for the City, and sells tax certificates
for delinquent taxes.
The assessed value of property, as established by
the Miami -Dade County Property Appraiser, at
January 1, 2003, upon which the 2003-2004 levy
was based, was $18,923,356,299. The City is
permitted by Article 7, Section 8 of the Florida
Constitution to levy taxes up to $10 per $1,000 of
assessed valuation for general governmental
services other than the payment of principal and
interest on general obligation long-term debt. In
addition, unlimited amounts may be levied for the
37
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
payment of principal and interest on general
obligation long-term debt, subject to a limitation on
the amount of debt outstanding. The tax rate to
finance general governmental services (other than
the payment of principal and interest on general
obligation long-term debt) for the year ended
September 30, 2004, was $8.7625 per $1,000. The
debt service tax rate for the same period was $1.08
per $1,000.
Property taxes receivable reported in the
government -wide Statement of Net Assets and the
governmental funds Balance Sheet represent
amounts due for unpaid delinquent property taxes at
September 30, 2004. Property taxes that are not
considered "available" have been reported as
deferred revenues in the governmental funds
Balance Sheet.
NOTE 6. - CAPITAL ASSETS
The following is a summary of changes in capital assets during the year ended September 30, 2004:
Primary Government
Governmental Activities:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings
Improvements other than buildings
Building improvements
Machinery and equipment
Infrastncture
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Building improvements
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net
Governmental activities capital assets, net
Beginning
Balance
Ending
Additions Retirements Balance
64,372,140 $ 2,609,850 $
52,458 462 22,847,377
$
(46,569,965)
66,981,990
28,735,874
116,830,602 25,457,227
(46,569,965) 95,717,864
168,737,839
24,061,858
2,318,389
93,643,559
1,005,399,496
499,155
10,603,863
24,758,797
14,283,674
11,523,679
(5,455,819)
169,236,994
34,665,721
27,077,186
102,471,414
1,016,923,175
1,294,161,141 61,669,168
(5,455,819) 1,350,374,490
(84,547,139)
(18,631,925)
(452,353)
(45,810,137)
(453,608,451)
(4,395,078)
(1,415,404)
(895,709)
(8,803,523)
(26,147,570)
3,384,653
(88,942,217)
(20,047,329)
(1,348 062)
(51,229,007)
(479,756,021)
(603,050,005) (41,657,284)
3,384,653 (641,322,636)
691,111,136 20,011,884
(2,071,166) 709,051 854
$ 807,941,738 $
45,469,111 $
(48,641,131) $ 804,769 718
38
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Depreciation expense was charged to government functions as follows:
General Government $ 2,906,802
Planning and Development 73,227
Community Development 41,863
Public Works 3,824,033
Public Safety 5,063,127
Public Facilities 399,196
Parks and Recreation 3,201,466
Unallocated 26,147,570
Total depreciation expense $ 41,657,284
MSEA
Beginning Ending
Balance Additions Retirements Balance
Capital assets, not being depreciated:
Land $ 5,923,000 $ - $ $ 5,923,000
Parking lot/warehouse 1,157,662 1,157,662
Total capital assets, not being depreciated 7,080,662 - 7,080,662
Capital assets, being depreciated:
Miami Arena 49,118,304 46,317 49,164,621
Miami Arena equipment 2,135,317 6,969 2,142,286
Office equipment 253,343 10,241 263,584
Art in public places 187,587 - 187,587
Vehicles 10,184 - 10,184
Total capital assets, being depreciated 51,704,735 63,527 51,768 262
Less accumulated depreciation for:
Miami Arena
Miami Arena equipment
Office equipment
Art in public places
Vehicles
Total accumulated depreciation
Total capital assets, being depreciated, net
MSEA capital assets. net
(18,677,311)
(1,684,604)
(199,653)
(69,956)
(2,037)
(1,230,037)
(122,341)
(28,482)
(7,503)
(2,037)
(19,907,348)
(1,806,945)
(228,135)
(77,459)
(4,074)
(20,633,561) (1,390,400) (22,023,961)
31,071,174 (1,326,873) 29,744,301
$ 38.151.836 $ (1.326.873) $ $ 36.824.963
39
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
DOSP
Beginning Ending
Balance Additions Retirements Balance
Capital assets, not being depreciated:
Land $ 13,086,793 $ 26,668 $ - $ 13,113,461
Construction in progress 223,360 141,450 (35,500) 329,310
Total capital assets, not being depreciated 13,310,153 168,118
(35,500) 13,442,771
Capital assets, being depreciated:
Building and structures 23,456,349 21,956 23,478,305
Leasehold improvements 5,436,769 1,067,034 6,503,803
Furniture and fixtures 169,496 169,496
Equipment 9,529,724 631,430 (800) 10,160,354
Total capital assets, being depreciated 38,592,338 1,720,420 (800) 40,311,958
Less accumulated depreciation for:
Building and structures (11,987,206) (685,937) (12,673,143)
Leasehold improvements (4,390,661) (184,835) (4,575,496)
Furniture and fixtures (153,117) (4,661) (157,778)
Equipment (6,981,097) (773,778) (7,754,875)
Total accumulated depreciation (23,512 081) (1,649,211) (25,161,292)
Total capital assets, being depreciated, net 15,080,257 71,209 (800) 15,150,666
DOSP capital assets, net
Capital assets, being depreciated:
Furniture and equipment
Less accumulated depreciation for:
Furniture and equipment
S 28.390,410 S 239.327 $ (36,300) $ 28.593,437
DDA
Beginning Ending
Balance Additions Retirements Balance
$ 235,033 $ 239,610 $ (84,366) $ 390,277
(169,136) (41,340) 84,366 (126,110)
DDA capital assets, net $ 65,897 $ 198,270 $ $ 264,167
40
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Capital assets, not being depreciated:
Land
Capital assets, being depreciated:
Buildings
Public domain and system infrastructure
Machinery and equipment
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings
Public domain and system infrastructure
Machinery and equipment
Total accumulated depreciation
Total capital assets, being depreciated, net
BFP capital assets, net
BFP
Beginning
Balance
Additions
Ending
Retirements Balance
$ 516,129 $
- S
$ 516,129
2,609,840
1,651,527
508,723
130,946
25,956
(205,616)
2,609,840
1,782,473
329,063
4,770,090
156,902
(205,616) 4,721,376
(809,050)
(986,293)
(274,202)
(52,197)
(82,201)
(26,356)
(861,247)
(1,068,494)
128,582 (171,976)
(2,069,545) (160,754)
128,582 (2,101,717)
2,700,545
(3,852)
(77,034) 2,619,659
$ 3,216,674 $
(3.852) $ (77.034) $ 3.135.788
Depreciation expenses were charged to the discretely presented component units as follows:
$ 1,390,400
1,649,211
41,340
160,754
MSEA
DOSP
DDA
BFP
Total depredation expense
$ 3.241.705
NOTE 7. - Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities at September 30, 2004 consisted of the following:
Nonmajor
Governmental
Funds
362,159
7.246.876
Vendors
Salaries and Benefits
Total Payables
General
$ 19,538,169
9,136,373
$ 28.674.542
Community
Development
2,905,246
163,976
$ 3.069.222
General
Government
$ 3,023.930
89,220
$ 3.113.150
Street &
Sidewalks Total
$ 2,326,390 $ 6,884,717 $ 34,678,452
9,751,728
$ 2.326.390 $ $ 44.430.180
NOTE 8. - Interfund Receivables, Payables, and Transfers
The balances reflected as due from/due to other funds as of September 30, 2004 is as follows:
Receivable Fund
Public Services Tax
Special Revenue Fund
Payable Fund
General Obligations
Debt Service Fund
Amount
$ 2,460,908
41
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
These outstanding balances between funds result mainly from the time lag between the dates that (a) interfund
goods and services are provided or reimbursable expenditures occur, (b) transactions are recorded in the
accounting system, and (c) payments between funds are made.
The following is a summary of transfers for the year ended September 30, 2004:
Transfer In
Transfer Out
General Fund
Community
Development
Public Services Tax
General Government
Street & Sidewalks
Nonmajor
Governmental Funds
Total
General
Fund
Community
Development
General
Government
Street &
Sidewalks
Nonmajor
Governmental
Funds
Total
$ - $
47,417,828
125,000 $ 19,794,020 $ - $ 12,223,191 $ 32,142,211
97,550
1,982,616 450,000
36,006,842
1,048,661
13,151,788
7,945,453
1,160,931 11,998,050
1,568,760
13,395,155
14,709,473
1,417,565
40,455,461
1,666,310
60,812,983
63,868,103
10,411,679
56,047,058
$ 49,400,444 $ 672,550 $ 58,010,454 $ 33,095,291 $ 83,769,605 $ 224,948,344
Transfers are used to (a) move revenues from the fiend that statute or budget requires to collect them to the fund
that statute or budget requires to expend them, (b) move receipts restricted to debt service from the funds
collecting the receipts to the debt service fund as debt service payments become due, and (c) move unrestricted
revenues collected in the general fund to finance various programs accounted for in other funds in accordance
with budgetary authorizations.
NOTE 9. - LONG-TERM OBLIGATIONS
Changes in Long -Term Obligations
The following is a summary of changes in long-term obligations for the year ended September 30, 2004:
Primary Government
Beginning
Balance Additions Reductions
Ending
Balance
Due within
One Year
General obligation bonds
Special obligation and
revenue bonds, and loans
Accretion
Deferred amounts
Total bonds, notes, and loans
Other liabilities:
Capital Lease
Compensated absences
Claims payable
Total governmental activity
long-term liabilities
$ 236,549,956 $ 4,180,000 $ (14,785,000) $ 225,944,956 $ 10,215,000
179,797,088
34,290,866
7,727,566
(9,099,464)
1,132,817
(557,248)
170,697,624
35,423,683
7,170,318
8,555,229
458,365,476 4,180,000
65,875,793
81,738,601
3,204,349
6,518,465
47,745,666
(23,308,895) 439,236,581
(678,413)
(4,460,879)
(18,227,763)
2,525,936
67,933,379
111,256,504
18,770,229
604,759
4,688,967
32,539,863
$ 605,979,870 $ 61,648 480 $ (46,675,950) $ 620,952,400 $ 56,603,818
For governmental activities, claims and judgments and compensated absences are generally liquidated by the General Fund.
42
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Bonds and Loans Outstanding — Summarized below are the City's bond and loan issues, which are
outstanding at September 30, 2004:
Maximum
Purpose of Amount Outstanding Interest Rate Annual
DESCRIPTION Issue Issued Balance Range Debt Service
General Obligation Bonds:
General Obligations Refunding Bonds
Series 1992 Refunding $ 70,100,000 $ 21,580,000 5.7%6% $ 7,332,320
Homeland Defense/Neighborhood CIP
Series 2002A Homeland Defense 153,186,406 152,689,956 1.8%4.97% 19,720,375
General Obligation Refunding Bonds
Series 2002A Refunding 32,510,000 29,475,000 3.4%5.375% 6,682,281
General Obligation Bonds
Other Issues Housing 23,190,000 2,175,000 .5%4% 427,358
General Obligation Refunding Bonds
Series 2003 Refunding 18,680,000 15,845,000 3%-5% 3,630,475
General Obligation Refunding Bonds
Series 2003B Refunding 4,180,000 4,180,000 2%-3.5% 1,446,838
$ 301,846,406 $ 225,944,956
Special Obligation and Revenue Bonds and Loans:
Special Revenue Refunding Bonds
Series 1987 Refunding $ 65,271,325 $ 12,075,260 525%73% $ 5,900,000
Community Redevelopment Revenue Bonds
Series 1990 Redevelopment 11,500,000 2,615,000 7.15%-8.5% 358,975
Special Obligation Non -Ad Valorem MRC Building 22,000,000 3,380,000 5%-5.7% 665,830
Series 1995
Special Obligation Non -Ad Valorem Revenue
Series 1995 Pension 72,000,000 64,460,000 6.5510-7.25% 5,812,300
Special Revenue Refunding Bonds
Series 2002A Refunding 27,895,000 27,895,000 3.4%5375% 3,353,539
Special Revenue Refunding Bonds
Series 2002B Refunding 13,170,000 7,320,000 3%-325% 2,109,338
Special Revenue Refunding Bonds
Series 2002C Refunding 28,390,000 27,385,000 2%-4375% 2,695,606
Sunshine State Government Financing
Commission Loans Facility Improvements 27,630,900 13,568,500 (1) (2)
Sunshine State Government Financing
SEOPW - Section 108 HUD Loan Redevelopment 5,100,000 4,250,000 8.39%-9.03% 737,563
Wynwood - Section 108 HUD Loan Redevelopment 5,500,000 3,900,000 (3) (3)
Sunshine State Government Financing
Commission -Secondary Loan SCl, Mehieese 3,500,000 2,140,000 (1) (2)
Gran Central Corporation Loan Redevelopment 1,708,864 1,708,864 0.00% 1,708,864
283,666,089 170,697,624
Total $ 585,512,495 $ 396,642,580
(1) These variable rate loans are subject to a 15% interest rate cap_ The Commission loan had an average interest rate of 2.02%
on September 30, 2004.
(2) The amortization requirement of the covenant program (not the individual issues) variable rate obligation requires a minimum
amortization over the 1/3 (10 years) of the normal (30 years) maturity_
(3) These variable rate loans are subject to Libor plus 02%_ The interest is calculated monthly and paid to the trustee quarterly.
43
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Annual Debt Service Requirements To Maturity
The annual debt service requirements for all bonds and loans outstanding as of September 30, 2004, are as
follows:
Year
Ended
General
Obligation Bands
Special Obligation,
Revenue Bonds,
and Loans
Total
September 30, Principal
Interest Principal
Interest
Principal Interest
2005
2006
2007
2008
2009
2010 - 2014
2015 - 2019
2020 - 2024
2025 - 2029
$ 10,215,000 $ 9,309,399 $ 8,555,229 $ 12,498,532 $ 18,770,229 $ 21,807,931
10,423,024 9,107,030 8,795,770 12,359,295 19,218,794 21,466,325
10,372,523 9,157,173 9,713,753 12,186,284 20,086,276 21,343,457
10,295,643 9,236,563 11,726,363 11,961,517 22,022,006 21,198,080
10,205,263 9,326,490 10,335,759 11,734,297 20,541,022 21,060,787
50,515,250 46,997,115 49,971,343 52,877,575 100,486,593 99,874,690
69,248,253 29,342,175 31,609,407 22,750,048 100,857,660 52,092,223
54,670,000 4,488,554 27,660,000 9,300,088 82,330,000 13,788,642
12,330,000 868,800 12,330,000 868,800
$ 225,944,956 $ 126,964,499 $ 170,697,624 $
146,536,436 $ 396,642,580 $ 273,500,935
Advance Refunding
On December 2, 2003, the City issued $4,180,000
in General Obligation Refunding Bonds, Series
2003, with interest rates ranging from 2% to 3.5%,
depending on maturity. The proceeds were used to
advance refund $4,045,000 of the City's
$70,100,000 General Obligation Bonds, Series
1992, which had an interest rate of 5.5%. The net
proceeds of $4,062,502 (after payments of $117,498
in underwriting fees, issuance and other costs) were
deposited in an irrevocable trust with an escrow
agent to provide for all future debt service payments
on the refunded portion of the 1992 bonds. As a
result, $4,045,000 of the 1992 bonds are considered
to be defeased and the liability for those bonds has
been removed from the statement of net assets. The
City advance refunded a portion of the 1992 bonds
to reduce its total debt service over 10 years by
$626,150 and to obtain a net present value
economic gain of $519,676.
Synopsis of Bond Covenants
A summary of major provisions and significant debt
service requirements follows:
Debt service for general obligation bonds is
provided for by a tax levy on non-exempt property
value. The total general obligation debt outstanding
is limited by the City Charter to 15% of the
assessed non-exempt property value. At September
30, 2004, the statutory limitation for the City
amounted to $3,370,271,636 providing a debt
margin of $3,141,372,970 after consideration of
$225,944,956 of general obligation bonds
outstanding at September 30, 2004 and adjusted for
the fund balance of $966,126 in the related Debt
Service Fund.
The various special obligation and revenue bonds
are secured by pledges of specific revenue sources
in accordance with their bond indentures. Their
bond resolutions require that sufficient funds be
available in reserve accounts to meet the largest
debt service requirement in any ensuing fiscal year
or that a surety bond be obtained in lieu of the
reserve account.
Loans obtained from the Sunshine State
Governmental Financing Commission require a
particular revenue pledge or a covenant to budget
and appropriate non -ad valorem revenues. The City
44
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
must maintain certain debt ratio requirements as
specified under this loan requirement.
The City believes it is in material compliance with
its financial debt covenants.
Escrow Agreement
On March 17, 1997, an agreement was entered into
by and among an Escrow Agent, the Oversight
Board, acting through its committee's (Fiscal
Sufficiency Advisory Board), and the City. The
agreement directs the Escrow Agent to establish
two escrow accounts, and maintain appropriate
balances to ensure the timely payment of debt
service on outstanding General Obligation and
Revenue Bonds.
The City made an initial deposit of $9,700,000 with
the escrow agent on March 17, 1997 to cover its
debt service requirements on the General Obligation
Bonds. The City has agreed that certain ad valorem
tax revenues received will be deposited each month
into the escrow account in an amount specified by
the underlying agreement. If the ad valorem taxes
received in any month are inadequate to make the
required deposit, the City must use other sources of
funds to supplement the required deposits.
Also, the City made an initial deposit of
approximately $5,000,000 with the Escrow Agent
on March 17, 1997 to cover its debt service
requirements on the Special Obligation Bonds and
Loans. The City has agreed to deposit revenues
each month in amounts specified in the underlying
agreement.
Long -Term Debt Authorized But Not Issued
On November 13, 2001, a referendum election was
held and the voters approved the issuance of
$255,000,000 of Limited Ad Valorem Tax Bonds.
As of September 30, 2004, the City has issued
$153,186,405 of the approved bonds.
Prior Year Defeasance of Long -Term Debt
In prior years, the City defeased certain outstanding
general obligation, special obligation and revenue
bonds. For those defeasances involving advance
refundings, the proceeds of the new bonds were
placed in an irrevocable trust to provide for all
future debt service payments on the defeased bonds.
At September 30, 2004, the following outstanding
bonds are considered defeased:
Prior Years' Defeased Debt:
$6,500,000 Special Obligation Bonds, Series 1989:
Guarantee Entitlement Bonds ....$ 2,500,000
$4,290,000 Special Obligation Bonds, Series 1986-A:
Housing Bonds $ 735,000
$22,000,000 Special Obligation Non Ad Valorem Revenue Bonds, Series 1995:
City Administration Building $15,090,000
$18,000,000 Special Obligation Non -Ad Valorem Revenue Bonds, Series 1994
Risk Management $11,270,000
$16,135,000 General Obligation Bonds Refunding Bonds, Series 1991
Sanitary Sewer $ 565,000
$10,000,000 General Obligation Bonds Refunding Bonds, Series 1992
Storm Sewer $ 7,030,000
45
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
$31,860,000 General Obligation Bonds Refunding Bonds, Series 1993
Storm and Sanitary $21,800,000
$22,500,000 General Obligation Bonds Refunding Bonds, Series 1995
Sanitary Sewer $16,435,000
Grand Total Prior Defeased Debt: 575)5,000
Capital Lease
The City has entered into a lease agreement as lessee for financing the acquisition of computer equipment. The
lease agreement qualifies as a capital lease for accounting purposes and therefore, has been recorded at the
present value of the future minimum lease payments as of the inception date.
The assets acquired through the capital lease are as follows:
Asset:
Machinery and equipment $ 3,204,349
Less accumulated depreciation 320,369
Total $ 2.883.980
The future minimum lease obligations and the net present value of those minim lease payments as of September
30, 2004, were as follows:
Year Ending
September 30, Amount
2005 $ 677,758
2006 677,758
2007 677,758
2008 677,758
Total Minimum lease payments 2,711,032
Less: amount representing interest (185,096)
Present value of minimum lease payments $ 2.525.936
Discretely Presented Component Units Long -Term Debt
The changes in long-term debt activity of MSEA during 2004 were as follows:
Beginning Ending Due within
Balance Additions Reductions Balance One Year
Bonds Payable $ 34,655,000 $ - $ 1,835,000 $ 32,820,000 $ 32,820,000
The annual debt service requirements for all bonds outstanding are as follows:
Year Ending
September 30, Principal Interest
2005 $ 32,820,000 $ 2,350,596
46
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
As explained in Note 14, the MSEA land, building, and related equipment was sold on December 15, 2004.
The terms of the sale require the repayment of the bonds. Consequently the entire balance of the bonds is
deemed to be payable in one year.
DOSP
The City has issued revenue bonds on behalf of DOSP. The principal and interest of the revenue bonds are
payable solely from the revenues of the parking facilities and, accordingly, are included in the accounts of
DOSP.
The changes in DOSP's long-term debt during 2004 was as follows:
Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
Bonds payable $ 11,120,000 $ - $ 655,000 $ 10,465,000 $ 685,000
Deferred amounts 36,294 13,136 - 49,430 -
$ 11,156,294 $ 13,136 $ 655,000 $ 10,514,430 $ 685.000
The following summarizes the debt service to maturity of outstanding DOSP debt at September 30, 2004:
Year Ending
September 30,
2005
2006
2007
2008
2009
2010-2014
2015-2017
Total
Principal Interest
685.000 476,000
710,000 448,000
740,000 419,000
770,000 387,000
800,000 354,000
4,585,000 1,168,000
2,175,000 116,000
Total
1,161,000
1,158,000
1,159,000
1,157,000
1,154,000
5,753,000
2,291,000
$ 10,465.000 $ 3,368.000 $ 13,833,000
Range of Rates
3.75%-5.25%
In prior years, the DOSP defeased, in substance, its 1993AParking Facilities Revenue Bonds and at
September 30, 2004, the outstanding balance of defeased bonds was $5,865,000.
NOTE 10. — SELF-INSURANCE
A. Risk Management
The City is self insured for its liability program
subject to, and in accordance with, the limitations
set forth by Florida Statutes 768.28. The City has
in place a commercial property program providing
blanket real estate and personal property coverage
on all City owned properties. There has not been a
significant reduction in insurance coverage from the
previous year. Settled claims have not exceeded
reserves in the past three years. The General Fund
accounts for all risks of loss to which the City is
exposed, including public liability, workers'
compensation, property and casualty, and employee
health and accident related losses.
Claims expenditures and liabilities are reported
when it is probable that a loss has occurred and the
amount of that loss can be reasonably estimated
based on an independent actuarial valuation.
Liabilities include an amount for claims that have
been incurred but not reported. The process used in
computing claims liability does not necessarily
result in an exact amount because actual claims
47
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
liabilities depend on such complex factors as
inflation, changes in legal doctrines, and damage
awards. Claims liabilities are reevaluated
periodically to take into consideration recently
settled claims, frequency of claims, and other
economic and social factors.
The City maintains excess coverage with
independent insurance carriers for the worker's
compensation, police torts, auto liability, public
official's liability, and general liability self-
insurance programs. Premiums are charged to the
Risk Management Department and are determined
Fiscal Year Ended
September 30,
2003
2004
B. Group Accident and Heath
Beginning of
Fiscal Year
Liability
82,527,448
81,738,601
based on amounts necessary to provide funding for
current losses and to meet the required annual
payments during the fiscal year. The property
insurance program provides coverage for windstorm
and hail subject to a 5% deductible with no cap;
multiple loss limits apply.
At September 30, 2004, the total estimated liability
of $111,256,504 is discounted at an interest rate of
5% and recorded on the government -wide financial
statements. Changes in claims liability amount in
2003 and 2004 were as follows:
Current Year
Claims
and Changes
in estimates
$ 15,759,754
47,745,666
Certain employees and retirees of the City
contribute, through payroll deductions or
deductions from pension payments, to the cost of
group benefits. The remainder of the funds
necessary are contributed by the City based upon
the number of participants in the plan. As of
September 30, 2004, the plan covered
approximately 2,159 active employees, 1,047
retirees and 1,314 employee -retiree dependent units.
Costs of the plan for the 2004 fiscal year were
approximately $24,445,300. The liability for the
group accident and health program totaled
approximately $4,200,000 at September 30, 2004
and is included in claims payable in the
government -wide Statement of Net Assets.
NOTE 11. - PENSIONS
Pension Plans
The City sponsors two separate single employer
defined benefit pension plans under the
administration and management of separate Boards
of Trustees: The City of Miami Fire Fighters' and
Claims
Payments
$ 16,548,601
18,227,763
Balance at
Fiscal Year End
$ 81,738,601
111,256,504
Police Officers' Retirement Trust ("FIPO") and the
City of Miami General Employees and Sanitation
Employees' Retirement Trust ("GESE"). The plans
cover substantially all City employees who
contribute a percentage of their base salary or
wages on a bi-weekly basis.
The City's elected officials participate in a single
employer defined benefit pension plan under the
administration and management of a separate Board
of Trustees, the City of Miami Elected Officers'
Retirement Trust ("EORT"). This plan covers all
elected officials with 7 or more years of elected
service. This plan is non-contributory.
Separate audited financial statements are provided
for FIPO and GESE. The EORT does not issue
separate statements. The stand alone statement for
FIPO and GESE can be obtained from the
respective pension boards at the following
addresses: FIPO, 1895 SW 3t Avenue, Miami,
Florida 33129 and GESE, 2901 Bridgeport Avenue,
Coconut Grove, Florida 33133.
The financial statements for all three Pension Plans
are prepared using the accrual basis of accounting
48
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
and all three plans are reported as pension trust
funds. Trust member contributions for FIPO and
GESE are recognized in the period which the
contributions are due. Employer contributions are
recognized when due. Benefits and refunds are
recognized when due and payable in accordance
with the terms of the plans.
The payroll for employees covered by FIPO, GESE
and EORT for the year ended September 30, 2004
was approximately $100.5 million, $72.6 million
and $554 thousand, respectively; the City's total
payroll was $228,047,062.
At October 1, 2003, the date of the most recent
actuarial valuation, membership in the FIPO, GESE
and EORT consisted of the following:
r1NU CESF EORT
Retirees and beneficiaries aarenity
irceiving hhtlflts axltemnated
enployees entitled to benefits but not
yet receiveing then
Clout Envloyees
Total lies
1.495 1,896
1.622 1,555
5
6
3.117 3.451 11
On or after October 4, 1991, and before January 9,
1994, FIPO Plan benefits were 2.75% of average
final compensation for each year of creditable
service. Since January 9, 1994, benefits are based
on 3.0% of average final compensation for each
year of creditable service for the first 15 years of
creditable service and 3.5% of average final
compensation for years of creditable service in
excess of 15 years. Retirement benefits under the
GESE Plan are generally based on 3.0% of the
average final compensation for each year of
creditable service. Provision for additional benefits
for longevity are available. Early retirement after
twenty years of service is available. Benefits for
disability and death are also provided under the
plans.
Under the EORT Plan, eligibility requires 7 years of
total service as an elected official of the City of
Miami to be vested without requiring that such
service be continuous. Benefits accrue for City
Commissioners at the rate of 50% of the highest
annual W-2 wages in the last three years of
employment after 7 years of service as an elected
official of the City plus 5% for each additional year
up to 75% at 12 years of service. The Mayor's
salary for pension calculations is limited to the base
salary before additional taxable benefits (i.e.,
expense allowance, mobile phone allowance,
automobile allowance, and term life insurance
greater than $50,000). An active participant will be
fully vested upon death and a single sum death
benefit is payable.
City employees in the FIPO Plan are required to
contribute 7% of their salary and employees in the
GESE Plan are required to contribute 10% of their
salary. The EORT Plan is a non-contributory plan.
Contributions from employees are recorded in the
period the City makes payroll deductions from
participants. The City is required to contribute such
amounts annually as necessary on an actuarial basis
to provide FIPO and GESE with assets sufficient to
meet the benefits to be paid. Contributions to FIPO
and GESE are authorized pursuant to City of Miami
Code Sections 40.196 (a) and (b) and 40.241 (a) and
(b), respectively. Contributions to the FIPO Cost of
Living Adjustment Accounts are authorized
pursuant to Section 40.204 of the City of Miami
Code. Contributions to EORT are authorized
pursuant to Section 40.291 of the City of Miami
Code.
In Fiscal 2000, the City of Miami Commission,
pursuant to applicable Internal Revenue Code
provisions, established qualified governmental
excess benefit plans to continue to cover the
difference between the allowable pension to be
paid, and the amount of the defined benefit, so the
benefits for eligible members (GESE, FIPO and
EORT) are not diminished by changes in the
Internal Revenue Code. The Board of Trustees for
GESE and FIPO and the Plan EORT Fiduciary,
administers the excess benefit plan for each
respective pension group.
The FIPO plan also has a Cost of Living
Adjustment (COLA) program for its members.
Effective January 1, 1994, the FIPO Trust entered
49
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
into an agreement with the City with regards to the
funding methods, employee benefits, employee
contributions and retiree COLA. Members no
longer contribute to the original COLA account
(COLA I); a new COLA account (COLA II) was
established. The agreement included the following:
(a) the funding method was changed to an aggregate
cost method, (b) all accounts were combined for
investment purposes (membership and benefit,
COLA I, and COLA II), (c) retirees receive
additional COLA benefits, and (d) active members
no longer contribute 2% of pretax earnings to fund
the original retiree COLA account (COLA 1).
The COLA II account is funded annually by a
percentage of the excess investment return from the
COLA I account assets. The excess earnings
contributed to the COLA II account are used to fund
a minimum annual payment of $2.5 million,
increasing by 4% compounded annually. To the
extent necessary, the City will fund the portion of
the minimum annual payment not funded by the
annual excess earnings no later than January 1 of
the following year.
Benefits payable from the COLA accounts are
computed in accordance with an actuarially based
formula as defined in Section 40.204 of the City of
Miami Code. Benefits are subject to review and
modification in accordance with City of Miami
Code Section 40.204, which provides that all other
matters regarding the COLA accounts shall be
determined by negotiations between the City, the
Board of Trustees and the bargaining
representatives of the International Association of
Fire Fighters (IAFF) and the Fraternal Order of
Police (FOP).
FIPO members who are eligible for service
retirement of Rule of 64 after September 1998 may
elect to enter the Deferred Retirement Option Plan
(DROP) for a maximum of 36 months prior to
October 1, 2001. Effective October 1, 2001,
maximum participation in the DROP for firefighters
shall be 48 full months and for police officers who
elect the DROP on October 1, 2003, or thereafter,
maximum participation in the DROP shall be 48 full
months.
A member's creditable service, accrued benefit and
compensation calculation is frozen upon
commencement of participation in the DROP; the
participant's and City's contribution to the FIPO
Trust for that participant ceases as the participant
will not earn further creditable service for pension
purposes. Effective October 1, 2001, firefighter
DROP participants may also continue City
employment for up to 48 months (36 months prior
to October 1, 2001). Police officers who elect the
DROP on or after October 1, 2003, may continue
City employment for up to 48 full months (36 full
months prior to October 1, 2003). No payment is
made to or for the benefit of a DROP participant
beyond that period. For persons electing
participation in the DROP, an individual DROP
account is created. Payment is made by the FIPO
Trust into the employee's DROP account in an
amount equal to the regular monthly retirement
benefit, which the participant would have received
had the participant separated from service and
commenced receipt of pension benefits. Payments
received by participants in the DROP accounts are
tax deferred. A series of investment vehicles, as
established by FIPO's Board of Trustees, are made
available to DROP participants to choose from.
Any losses, charges, or expenses incurred by the
participant in his or her respective drop account are
borne solely by the participant. Upon termination
of employment, a member may receive distribution
from the DROP account in the following manner: 1)
lump sum, 2) periodic payments, 3) annuity, or 4)
rollover of the balance to another qualified
retirement plan.
Any member may defer distribution until the latest
date authorized by Section 401(a)(9) of the Internal
Revenue Code.
DROP participants are not entitled to receive an
ordinary or service disability retirement and in the
event of death of a DROP participant, there is no
accidental death benefit for pension purposes.
DROP participation does not affect any other death
or disability benefit provided to a member under
federal law, state law, City ordinance, or any rights
or benefits under any applicable collective
bargaining agreement.
50
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The DROP of the FIPO Trust also consists of a
Benefit Actuarially Calculated DROP
(BACDROP). A member may elect to BACDROP
to a date no further than the date of their retirement
eligibility date. The BACDROP period must be in
12 months increments, beginning at the start of a
pay period, not to exceed 48 full months for
firefighters (36 months prior to October 1, 2001)
and for police officers who elected DROP on
October 1, 2003 (36 months prior to October 1,
2003). Participation in the BACDROP does not
preclude participation in the forward DROP.
The City of Miami General Employees' and
Sanitation Employee's Retirement Trust made the
DROP available to all Retirement Trust members
effective May 1, 2002. The DROP is an
enhancement to the GESE Retirement Trust that can
The following table provides information concerning
FIPO:
Valuation date.
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Actuarial assumptions:
Investment rate of return
Salary increases:
Inflation
Merit, longevity, etc
Mortality table
Mortality, disability, retirements and turnover
GESE:
Valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Actuarial assumptions:
Investment rate of return
Projected salary increases
Includes inflation at
Cost of living adjustments
provide a trust member with another way to save for
retirement. It allows a participant to receive
pension payments by depositing them into the
DROP program while continuing to work and
receive pay and benefits as an active employee. At
the end of the DROP period, when the participant is
officially required to retire, the participant receives
monthly pension payments based on the years of
service and salary at the time that the participant
enrolled in the DROP. In addition, the participant
also receives the accumulated DROP account
balance. The DROP monies can also be rolled over
into a tax -qualified plan such as an Individual
Retirement Account (IRA) or 457(b) government
sponsored deferred compensation plan that agrees
to separately account for the rollover contribution.
funding policies for FIPO, GESE and EORT:
October 1, 2003
Aggregate Cost Method (this method does not identify or
separately amortize unfunded actuarial liabilities)
Not applicable under Aggregate Cost Method
Not applicable under Aggregate Cost Method
Average of ratios of market book values as of current and
most recent September 30's. Average ratio is applied to
book value at current September 30. The result cannot
be greater than 120% or less than 80% of market value
7.75%
4.00%
4.8% to 0% reducing by attained age
Ga94 - Mortality table changed for current year
Pension Benefit Guaranty Corporation
("PBGC") Non-OASDI basis rate tables
October 1, 2003
Modified entry age normal
Level dollar amount, closed
14-20 years
3 year smoothed market value of assets
8.1%
5.00% o
3.5%
4% per year with $54 per year minimum and
$400 per year maximum
51
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
EORT:
Valuation date.
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Actuarial assumptions:
Investment rate of return
Salary increases:
Inflation
Merit, longevity, etc
Mortality table
Disability, turnover and retirements
Actuarially Determined Contribution
Requirements and Contributions Made
The funding policy for FIPO, GESE and EORT
provides for periodic employer contributions at
actuarially determined rates that, expressed as
percentages of annual covered payroll, are sufficient
to maintain the actuarial soundness of the plans and
to accumulate sufficient assets to pay benefits when
due. Significant actuarial assumptions used to
compute the contribution requirements are
described in the funding policy above.
FIPO
Contributions are determined applying the
actuarially calculated aggregate cost method.
The actuarial valuation of the Trust at October 1,
2000, for the fiscal year ended September 30, 2001
utilized an assumed investment rate of return of
7.625%. This resulted in a minimum required
contribution of approximately $6,400,000. The
City disputed the aforementioned assumption and
had subjected it to arbitration. In compliance with
the Trust ordinance, the City had contributed
$5,400,784, the same amount as in the prior year,
which would satisfy the September 30, 2001
required contribution until the issue was resolved.
The contribution made to the trust pertaining to the
year ending September 30, 2002 was also
December 31, 2003
Individual Aggregate Cost Method (does not identify or
separately amortize unfunded actuarial liabilities)
Not applicable under Individual Aggregate Cost Method
Not applicable under Individual Aggregate Cost Method
Market Value
6.0%
NIA
N/A
Ga94 - no pre -retirement mortality was assumed
No disability or turnover assumed. Retirement is assumed at
the end of the current term or 100% vested
$5,400,784. The arbitration was subsequently
resolved and the revised actuary valuation reports at
October 1, 1999, 2000, 2001 were issued by the
Trust's actuary. The revised rate of return of 7.75%
resulted in an over funding of the City's annual
required contributions of $1,371,422 and
$4,907,022, for the fiscal years ended September
30, 2001 and 2002, respectively. Accordingly, a net
pension asset of $6,278,4114, $3,382,512, and $0 for
fiscal years ended September 30, 2002, 2003, and
2004 respectively, has been reported in the
government -wide Statement of Net Assets.
The annual required contribution for fiscal year
2004 of $36,341,515 was reduced by $3,382,512.
The interest earnings attributable to the NPO were
$0 (or 0.00%), which resulted in a net reduction to
the NPO of $3,382,512 and a balance of $0 at
September 30, 2004.
For the years ended September 30, 2004, 2003 and
2002 contributions totaling $36,659,614
($32,959,003 - FIPO Plan, $3,700,611 — COLA
Fund), $18,582,646 ($15,024,366 - FIPO Plan,
$3,558,280 — COLA Fund), and $5,400,784 (FIPO
PLAN) were made to FIPO in accordance with
actuarially determined contribution requirements,
based on an actuarial valuation performed for each
respective year.
52
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
GESE
GESE contributions are determined using the entry
age normal cost method with frozen actuarial
accrued liability.
For the years ended September 30, 2004, 2003 and
2002 contributions totaling $11,285,223
($10,669,846 — GESE Plan, $98,044 — Staff Plan,
$517,333 — Excess Plan), $3,985,926 ($3,602,457 —
GESE Plan, $83,234 — Staff Plan, $300,235 —
Excess Plan), and $2,499,618 ($2,090,701 — GESE
Plan, $57,500 — Staff Plan, $351,417 — Excess Plan)
were made to GESE in accordance with actuarially
determined contribution requirements, based on an
actuarial valuation performed for each respective
year.
EORT
Contributions are determined applying the
actuarially calculated aggregate cost method.
For the years ended September 30, 2004, 2003 and
2002 contributions totaling $300,000 ($255,871-
EORT Plan, $44,129 — Excess Plan), $265,287
($82,447 - EORT Plan, $182,840 — Excess Plan),
and $665,203 ($82,447 - EORT Plan, $582,756 —
Excess Plan) were made to EORT in accordance
with actuarially determined contribution
requirements, based on an actuarial valuation
performed for each respective year.
The EORT does not issue separate stand-alone financial statements,
Statement of Fiduciary Net Assets and the Statement of Changes in Fiduciary Net Assets for the year
September 30, 2004:
Assets
City of Miami, Florida - Elected Officers' Retirement Trust
Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2004
Cash and Short -Term Investments $
Investments, at fair value
U.S Government Obligations
Money Market Funds and Commerical Paper
Total Investments
Total Assets
Net Assets
Held in Test for Pension Benefits
175
1,838,268
192,649
2,030,917
2,031,092
$
2.031.092
and therefore, included below is the
ended
53
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
City of Miami, Florida - Elected Officer's Retirement Trust
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30, 2004
Additions
Contributions:
Employer $ 300,000
Investment Earnings:
Interest 25,889
Total Additions 325,889
Deductions
Benefits 13 7,05 5
Administrative and Other Expenses 5,300
Total Deductions 142,355
Change in Net Assets 183,534
Net Assets - Beginning of Year 1,847,558
Net Assets - End of Year $ 2.031.092
Trend Information
Trend information indicates the progress made in accumulating sufficient assets to pay benefits when due. An
analysis of funding progress for the fiscal ended September 30, 2004 is as follows:
Net Pension
Year Ended Annual Required Percentage Obligation
September 30, Contribution Contributed (Asset)
FTPO 2004 $ 36,341,515 90% $ -
2003 18,163,588 83 (3,382,512)
2002 1,051,629 514 (6,278,444)
2001 4,003,892 135 (1,371,422)
2000 5,400,784 100
1999 10,376,473 100
GESE 2004 10,669,846 100
2003 3,602,457 100
2002 2,090,701 100
2001 8,458,735 100
2000 8,216,415 100
1999 - 100
EORT 2004 255,871 100
2003 82,447 100 -
2002 82,447 100 -
2001 220,837 236 270,902
2000 449,086 111 451,159
1999 233,038 - 309,384
54
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Budget Advance From City
Certain administrative costs of the FIPO and GESE Trusts are paid directly by the Pension Trusts from budget
advance monies provided by the City. The Trusts provide the City with an accounting of how these funds are
expended during the period. Deficits are funded by the City with any excess applied towards the following year
together with the budget advance for that year. Funding for such administrative costs for the year ended
September 30, 2004 is as follows:
Funding provided by the City - current year
Budget advance (deficit)- beginning of year
Administrative costs incurred, including
custodian and consultants' fees,
personnel and other office expenses
Budget deficit - end of year
FIFO
$ 1,366,081
(90,378)
GESE
1,768,295
(634,756)
1,275,703 1,133,539
1,499,260 2,371,310
$ (223,557) $ (1,237,771)
Since the above administrative costs are fully funded by the City, they are not recorded in the administrative
expenses set forth in the fiduciary fund Statement of Changes in Fiduciary Net Assets.
Special Benefit Plans
Certain executive employees of the City are allowed
to join the ICMA Retirement Trust's 401(a) plan.
This defined contribution deferred compensation
plan, which covers governmental employees
throughout the country, is governed by a Board of
Directors responsible for carrying out the overall
management of the organisation, including
investment administration and regulatory
compliance. Membership for City employees is
limited by the City Code to specific members of the
City Clerk, City Manager, and City Attorney's
offices, Department Directors, Assistant Directors,
and other executives. To participate in the plan a
written trust agreement must be executed, which
requires the City to contribute 8% of the individual's
earnable compensation, and the employee to
contribute 10% of their salary. Participants may
withdraw funds at retirement or upon separation
based on a variety of payout options.
The following information relates to the City
participation in this plan:
Total current year's payroll for all employees
Current year's payroll
for participating employees
Current year employer contributions
$228,047,062
$5,342,571
$455,444
In addition to coverage under the FIPO Pension
Plan, City of Miami fire fighters and police officers
are members of two separate non-contributory
money purchase benefit plans established under the
provisions of Florida Statutes, Chapters 175 and 185,
respectively. These two plans are funded solely from
the proceeds of certain excise taxes levied by the
City and imposed upon property and casualty
insurance coverage within the City limits. This tax,
which is collected from insurers by the State of
Florida, is remitted directly to the plans' Boards of
Trustees. The City is entitled to levy such excise
taxes solely for the use of the money purchase
benefit plans as long as the minimum benefit
provisions of Florida Statutes, Chapters 175 and 185
55
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
are met by FIPO. The City is currently under no
obligation to make further contributions to the plans.
The total of such excise taxes received from the
State of Florida and remitted to the plans was
$10,997,694-for the year ended September 30, 2004.
Accordingly these monies are recorded as pass
through funds in the City's financial statements.
Benefits are allocated to the participants based upon
their service during the year and the level of funding
received during said year. Participants are fully
vested after nine years of service. Upon termination
of service, a participant may elect to receive one of
three options: 1) a lump sum payment, 2) five
substantially equal payments, or 3) 10% or more in
the first year and the remainder in any way over the
next four years. The total must be paid out within
five years.
NOTE 12. - POST -EMPLOYMENT HEALTH
CARE BENEFITS
In addition to providing pension benefits, the City
offers to its retiree's comprehensive medical
coverage and life benefits through the City's self-
insurance plan. This plan was established in
accordance with Florida State Statute Section
112.0801 "Group Insurance: Participation by Retired
Employees". Substantially all of the City's general
employees and firefighters may become eligible for
those benefits when they reach normal retirement
age while working for the City (approximately 1,047
of the 3,026 covered participants are retirees). The
City's cost of the post -employment health benefits,
funded on a pay-as-you-go basis, was approximately
$8,609,400 for the year ended September 30, 2004.
The Fraternal Order of Police (FOP) sponsors a
Health Insurance Trust that is partially self -insured,
which provides life, health, and accidental death and
dismemberment insurance to substantially all full-
time sworn members of the City of Miami Police
Department, eligible retirees, their families and
beneficiaries. The Trust receives a significant source
of its funding from the City, pursuant to the terms of
a collective bargaining agreement. The agreement
requires the City to reimburse the FOP Health Trust
an amount that is required to bring the Trust's
available fund balance to $2.35 million. The City
funded its contribution under terms of the agreement
in the amount of $2,653,334 for the current year.
NOTE 13. - SUMMARY DISCLOSURE OF
SIGNIFICANT CONTINGENCIES
Litigation
The City's claim administrator along with the City
attorney has reviewed the status of the City's claims
and has determined, except for the cases disclosed
below, the liability reflected for claims in the
government -wide statements are sufficient to satisfy
any resulting payment.
Eva Nagymihaly, etc. et. al. v. City of Miami is a
class action challenge to the City of Miami Fire
Assessment Ordinance which essentially contends
that the assessment is an unconstitutional tax on real
property. The Florida Supreme Court recently held
in City of North Lauderdale v. SMM Properties, Inc.,
that a similar ordinance was unconstitutional to the
extent it included a charge for emergency medical
services.
The City of Miami's assessment for fiscal years
1998-1999 and 1999-2000 included emergency
medical services. Subsequent assessments, however,
did not include emergency medical services.
Because of the City of North Lauderdale decision,
the litigation now concerns the question of whether
the City will be required to refund, or give a credit,
for the emergency medical services component of
the assessments for fiscal years 1988-1999 and 1999-
2000. Although the City attempted to settle the
claim, that settlement is being challenged.
There are three lawsuits involving Wynwood
Community Economic Development Corporation. In
case No. 94-12875 CA 25, Wynwood alleges that the
City breached a settlement agreement by, among
other things, failing to provide Community
Development Block Grant funding for the
development of a foreign trade zone, which alleged
caused Wynwood to sustain a financial injury.
The City filed a mortgage foreclosure action in Case
No. 99-13742 CA 25, as a result of the failure of
56
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Dade Foreign Trade Zone, Inc., to make payments
on the mortgage securing the Community
Development Block Grant funding. This action has
been consolidated with case No. 94-12875 CA 25.
In pretrial motions, the Court ruled the Plaintiff is
not entitled to monetary damages. The judge denied
the City the right to foreclose and granted the
Plaintiff $17,000 for architectural costs and an
undetermined amount of attorney's fees. This ruling
will be appealed.
In the federal action Case No. 00-4680-Civ-Lenard,
Wynwood alleges that the City discriminated against
it on the basis of national origin by denying
Community Development Block Grant funding,
delivering a defective property deed, and abridging
privileges and immunities secured by the federal
Constitution. A motion to dismiss the complaint is
pending. This matter has been stayed pending the
outcome of the state court litigation.
In Florida Paraplegic Association, Inc,. et. al. v. City
of Miami, the Association claiming to represent
Florida disabled individuals is suing the City to
make modifications to City parks and related
facilities and otherwise compel the City to comply
with provisions of the American's with Disabilities
Act. No damages are available but attorney's fees
and costs are awarded to prevailing Plaintiffs. The
case is in the final stages of settlement negotiations.
At September 30, 2004, the City had in process
various uncompleted construction projects with
remaining balances totaling $15,647,283. Funding
of these projects is to be made primarily through the
proceeds of the related bond issues, loans and future
taxes.
Some of the former BFP employees are under
investigation by the U.S. District Attorney's Office
and various law enforcement agencies for alleged
improprieties committed prior to February 15, 2000,
when the City of Miami took over BFP's managerial
responsibilities and decision -making and instituted a
new management group. As of the date of the
financial statements, the management of BFP and
legal counsel can not determine the outcome of the
investigation and the liability, if any, that will result
from the alleged improprieties.
An environmental claim is presently being asserted
by the United States of America involving an alleged
disposal by the City of Miami Fire Department's
service garage of 280 gallons of waste oil to
Petroleum Products Corporation (PPC) on November
25, 1972. PPC allegedly operated as a processor and
broker of waste oil at a site located in Hollywood,
Florida, and allegedly during its period of operation
disposed of sludges generated from the oil refining
process in unlined pits on the site. Contamination
assessment and initial remedial activities undertaken
by the United States Environmental Protection
Agency (EPA) and the State Department of
Environmental Regulation (DER) during the past ten
(10) years allegedly indicate that the soils and
groundwater at the site are significantly
contaminated by waste oil and other hazardous
wastes.
The EPA has indicated that it considers the City a
generator of hazardous wastes at the site and,
therefore, jointly and severally liable for the cleanup
and recovery costs at the site.
The City has joined the group of Potentially
Responsible Parties (PRPs), and has entered into a
Consent Decree with EPA on the first phase of a
three-phase approach to the clean-up of the site,
generally known as Operable Units 1, 2 and 3.
Following the execution of the Consent Decree by
all settling PRPs, and completion of the remedial
design at the site, the group of settling PRPs has
taken a very aggressive technical posture at the site.
The just completed remedial design addresses not
only free product recovery and aims to achieve
significant flushing of impacted soils. Both the EPA
and the State of Florida Department of
Environmental Protection have enthusiastically
responded to this progressive effort, which will
result in a cost of cleanup estimated at $1.5 million
for this stage of the process. This claim is being
handled by outside counsel.
57
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The City participates in a number of Federal and
State assisted programs. These programs are subject
to audit under the requirements of the Single Audit
Act Amendment of 1996 and Chapter 10.650, Rules
of the Auditor General. The City anticipates no
material adverse fmdings.
NOTE 14. — SUBSEQUENT EVENTS
On October 12, 2004 the DOSP entered into an 18-
month forward starting interest -rate swap agreement
with Bear Stearns Capital Markets, Inc. Under the
terms of this agreement, the DOSP can issue up to
$25 million dollars of 30 year bonds and pay a fixed
interest rate of 4.533%. Under the terms of the
agreement, the DOSP could be liable for certain
termination payments, if it fails to issue said bonds
by April 1, 2006 or if it decides it does not want to
issue the bonds. The actual amount of said
termination payments in not determinable at this
time because they are dependent on the interest rates
at the time of termination.
In March 2004, the MSEA Board of Directors voted
and approved the proposed sale of the Miami Arena
for $25 million to Green Acres, LLC. The sale was
subject to the completion of two appraisals and
approval from Miami -Dade County. In the event
that the appraisals indicated that Miami Arena to
have a value greater than $25 million the Arena
would be sold to the highest bidder in a public
auction which was held August 10, 2004. The
winning bidder was Glenn Straub of the Palm Beach
Polo Club for $28,010,000. The sale was closed on
December 15, 2004.
The contract for the sale provides for the retirement
or redemption all series 1992 bonds (see Note 9
within 90 days of the sale date and the establishment
of the defeasance escrow for all series 1992 bonds
that is sufficient to pay for all the required principal,
interest and call premiums for the bonds. Any
remaining sale proceeds will be spent on Orange
Bowl improvements by December 14, 2006.
The sale required a new inter -local agreement
between the City of Miami and Miami -Dade County
that provides for the future use of the convention
development tax revenues.
The sale of the Arena released certain restrictions
and reserves of the funds set aside for amounts in
public places and capital projects. These revenues
have been transferred or reclassified from the MSEA
Board and the City of Miami Commission.
58
Resources (inflows):
Property Taxes
Franchise Fees and Other Taxes
Licenses and Permits
Fines and Forfeitures
Intergovernmental Revenues
Charges for Services
Interest
Other
Transfers In
Capital Lease
Amounts Available for Appropriation
Charges To Appropriations (outflows):
General Government
Planning and Development
Public Works
Public Safety
Public Facilities
Parks and Recreation
Transfers Out
Total Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
General Fund
For The Year Ended September 30, 2004
Budgeted Amounts
Original Final
$ 157,961,936
32,142,969
21,238,517
4,197,600
34,400,939
80,224,371
8,107,000
1,552,510
47,636,792
$ 157,961,936 $
34,962,778
21,288,517
4,197,600
46,966,514
80,344,371
8,107,000
9,127,540
48,939,479
387,462,634 411,895,735
67,193,768 69,810,524
11,624,735 11,667,881
59,769,042 60,456,191
229,644,647 248,612,090
6,648,799 6,655,959
14,866,417 14,901,364
30,449,196 35,786,222
420,196,604 447,890,231
Excess (Deficiency) of Resources Cher
Charges to Appropriations (32,733,970) (35,994,496)
Fund Balance Allocation 32,733,970
Excess (Deficiency) of Resources Over
Charges to Appropriations
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule.
Differences- budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes.
Thefund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes.
Transfersfrom other funds are inflows of budgetary resources
but are not revenues for financial reporting purpose&
Total revenues as wpm tnl on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds-
tlsesloutflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences- budget to GAAP:
Encumbrances for supplies and equipment ment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes.
Transfersto other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Totalexpenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
35,994,496
The accompanying notes are an integ al part of the required supplementary information_
ActualAmounts
(Budgetary Basis)
159,391,679 $
34,988,629
23,011,688
4,732,357
49,260,814
87,591,034
5,438,411
41,822,908
49,400,444
3,204,349
458,842,313
64,649,218
10,761,657
58,721,690
243,680,286
5,969,786
14,802,837
32,142,211
430,727,685
28,114,628
Variance with
Final Budget
Positive (Negative)
1,429,743
25,851
1,723,171
534,757
2,294,300
7,246,663
(2,668,589)
32,695,368
460,965
3,204,34-9
46,946,578
5,161,306
906,224
1,734,501
4,931,804
686,173
98,527
3,644,011
17,162,546
64,109,124
(35,994,496)
28,114,628 $
458,842,313
(3,204,349)
(35,994,496)
(49,400,444)
370,243,024
430,727,685
(2,870,294)
(32,142,211)
395,715,180
28,114,628
City of Miami, Florida
Budgetary Comparison Schedule
Community Development
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
Resources (inflows):
Intergovernmental Revenues $ 37,224,984 $ 75,188,581 $ 35,835,281 $ (39,353,300)
Charges for Services - 4,965,852 4,965,852
Interest - 68,493 68,493
Other - 428,386 1,103,828 675,442
Transfers In - 547,551 672,550 124,999
Amounts Available for Appropriation 37,224,984 76,164,518 42,646,004 (33,518,514)
Charges To Appropriations (outflows):
Community Development 36,018,984 74,556,676 39,073,478 35,483,198
Transfers Out 1,206,000 1,692,000 1,666,310 25,690
Total Charges to Appropriations 37,224,984 76,248,676 40,739,788 35,508,888
Excess (Deficiency) of Resources Os er
Charges to Appropriations - (84,158) 1,906,216 1,990,374
Fund Balance Allocation - 84,158 - (84,158)
Excess (Deficiency) of Resources Os er
Charges to Appropriations $ - $ - $ 1,906,216 $ 1,906,216
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sourceslinflows of resources
Actual amounts (budgetary basis) "available for appropriation' from
the budgetary comparison schedule. $ 42,646,004
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. (84,158)
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (672,550)
Total revenues as reported en the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 41,889,296
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 40,739,788
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (1,666,310)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 39,073,478
The accompanying notes are an integral part of the required supplementary information_
60
Resources (inflows):
Franchise Fees and Other Taxes
Amounts Available for Appropriation
City of Miami, Florida
Budgetary Comparison Schedule
Public Services Tax
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
$ 60,812,983 $ 64,465,670 $ 67,786,829 $ 3,321,159
60,812,983 64,465,670 67,786,829 3,321,159
Charges To Appropriations (outflows):
Transfers Out 60,812,983 64,465,670 60,812,983 3,652,687
Total Charges to Appropriations 60,812,983 64,465,670 60,812,983 3,652,687
Excess (Deficiency) of Resources Over
Charges to Appropriations - - 6,973,846 6,973,846
Fund Balance Allocation - - - -
Excess (Deficiency) of Resources Over
Charges to Appropriations $ - $ - $ 6,973,846 $ 6,973,846
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation' from
the budgetary comparison schedule. $ 67,786,829
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. -
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. -
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 67,786,829
Usesloutflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule_ $ 60,812,983
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for finanrial reporting purposes. (60,812,983)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ -
The accompanying notes are an integral part of the required supplementary information.
61
CITY OF MIAMI, FLORIDA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2004
NOTE 1. - BUDGETARY POLICY
A. BUDGET POLICY
The City Commission annually adopts an
operating budget ordinance for all governmental
funds of the City, except for the Capital Projects
Funds.
The Capital Projects Funds are budgeted on a
total project basis for which annual budgets are
not available.
For governmental funds, budgets are prepared
on a basis consistent with accounting principles
generally accepted in the United States of
America.
B. BUDGET -LEGAL COMPLIANCE
The City follows these procedures in establishing
the budgetary data reflected in the accompanying
financial statements:
- Prior to August 31st, the City Manager submits
to the City Commission a proposed operating
budget by fund, except for the General Fund,
which is at the departmental level, for the
fiscal year commencing the upcoming October
1st. The operating budget includes proposed
expenditures and the means of financing them.
- The Mayor prepares and delivers a budgetary
address annually to the people of the City
between July 1st and September 30tts.
Such report is prepared after consultation with
the City Manager.
- Public hearings are
taxpayer comments.
conducted to obtain
- Prior to October 1st, the budget is legally
enacted through the passage of an ordinance
and adoption of the budget report.
- Management may not make changes to the
adopted budget without the approval of a
majority vote of the Commission.
- The Commission may transfer among
departments any part of an unencumbered
balance of an appropriation to a purpose for
which an appropriation for the current year
has proved insufficient. At the close of each
fiscal year, the unencumbered balance of each
appropriation reverts to the fund from which it
was appropriated and is subject to future
appropriations.
- Budgets are monitored at varying levels of
classification detail, however, budgetary
control is legally maintained at the fund level
except for the General Fund, which is
maintained at the departmental level.
All budget amendments require City Commission
approval. During fiscal 2004, supplemental
appropriations totaling $27,693,627, $39,023,692,
and $3,652,687 in the General Fund, Community
Development and Public Services Tax,
respectively, were required to recognize
unanticipated revenue including the award of
federal and state grants and to provide funding for
unanticipated program requirements.
62
City of Miami, Florida
Pension Trust Funds
Schedule of Funding Progress (a)
(Dollar Amounts in Thousands)
Actuarial
Valuation
Date
GESE(b):
10/01/03
10/01/02
10/01/01
10/01/00
10/01/99
10/01/98
(2)
(1) Actuarial
Actuarial Accrued
Value of Liability
Assets (AAL)
555,480 682,360
561,300 617,800
597,100 579,400
594,800 577,700
539,000 571,100
522,900 557,300
Unfunded
(Overfunded)
AAL
(2) - (1)
Funded
Ratio
(1)/(2)
(3)
Covered
Payroll
126,880 81 70,718
56,500 91 70,400
(17,700) 103 66,700
(17,100) 103 63,800
32,100 94 59,100
34,400 94 55,100
Unfunded
(Overfirnded)
as a
Percentage of
Covered
Payroll
((2)-(1))/(3)
179
80
(27)
(27)
54
62
a. For information regarding pension contribution percentage rates, assumptions, amortization,
method (See Note 11).
b. Entry Age Normal Actuarial Accrued Liability
c. FIPQ and EORT are not reflected on this schedule since they use the aggregate method
which does not separately identify an actuarial accrued liability.
63
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64
Nonmajor Governmental Funds
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for special revenues that are
legally restricted to expenditures for particular purposes.
Community Redevelopment Agency (ORA) - To account for revenues
and expenditures to be used for general operations in the defined
Community Redevelopment Area.
Community Redevelopment Agency (SEOPW) - To account for
revenues and expenditures to be used for special operations in the defined
Community Redevelopment Area.
Convention Center - To account for the operations of the City of Miami/
University of Miami James L. Knight International Center and Parking
Garage.
Economic Development & Planning Services - To account for the
operations of the Economic Development &. Planning Services.
Fire Rescue Services - To account for the proceeds of an excise tax that
is restricted to expenditures which supplement the City's emergency Fire
Rescue Operations.
Net Offices - To account for the operations of the City of Miami's
Neighborhood Enhancement Teams (Net Offices).
Parks & Recreation Services - To account for the operations of the Parks
& Recreation Services.
Police Services - To account for the proceeds of various grants from
Local, State, and Federal Agencies.
65
Nonmajor Governmental Funds (continued)
SPECIAL REVENUE FUNDS
Law Enforcement Trust - To account for confiscated monies awarded to
the City for law enforcement related expenditures as stipulated by State
Statutes.
Public Works Services - To account for the proceeds granted from Local
and State Agencies.
City Clerk Services - To account for the operations of the Passport
Facility, Municipal Archives & Records, and related Program.
Local Option Gas Tax - To account for the local option gas tax levied
on the purchases of gasoline.
Stormwater Utility - To account for the fees and charges collected for the
operation and maintenance of the stormwater management system and the
funding of pollution abatement devices of said system.
Department Improvement Initiatives - To account for the fund()
designated for City of Miami initiatives related to quality of life and
technology.
Transportation and Transit - To account for the operations of the City
of Miami's transit and transportation projects.
Gusman and Olympia - To account for the activities of the Gusman and
Olympia Facilities.
66
Nonmajor Governmental Funds (continued)
DEBT SERVICE
Debt Service Funds are used to account for the accumulation of resources,
payment of general obligation bond principal, interest from government
resources, special obligation bond principal and interest from pledged
revenues when the government is obligated in some manner for the
payment.
General Obligation Bonds - To account for monies for payment of
principal, interest, and other costs related to various issues of long-term
general obligation bonds. Debt Service is financed primarily by an ad
valorem tax.
Other Special Obligation Bonds — To account for monies for payment of
principal, interest, and other costs related to various special obligation and
revenue bonds and loans.
CRA Other Special Obligation Bonds — To account for monies for
payment of principal, interest, and other costs related to various special
obligation bonds and loans.
67
Nonmajor Governmental Funds (continued)
CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the acquisition and
construction of major capital facilities.
Community Redevelopment Agency - To account for the acquisition or
construction of major capital facilities for community redevelopment in the
defined Community Redevelopment Area.
Public Safety - To account for the acquisition or construction of major
capital facilities that support the City of Miami's Police and Fire operations.
Sanitary Sewers - To account for expenditures for the construction of
sanitary sewers.
Storm Sewers - To account for expenditures for the construction of storm
sewers.
Solid Waste - To account for the acquisition of equipment or facility
maintenance associated with the collection and removal of solid waste.
Public Facilities - To account for the acquisition or construction of major
capital facilities for public use such as marinas and stadiums.
Parks and Recreation - To account for the acquisition, rehabilitation, or
construction of major capital facilities for cultural and recreational activities
such parks, elderly and youth day care centers.
Disaster Recovery - To account for revenue received from the Federal
Emergency Management Agency, insurance and other agencies as
reimbursements for citywide disasters in the areas of debris removal,
roads and bridges, buildings and equipment, parks, marinas, stadiums and
other measures of relief.
68
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69
City of Miami, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2004
Special Revenue Funds
Economic
Development
Convention & Planning Fire Rescue
Omni CRA SEOPW CRA Center Services Services
Assets
Cash, Cash Equivalents and Investments $ 3,583,259 $ 3,836,883 $ 309,022 $ 6,028,172 $ 2,444,311
Restricted Cash and Investments - - 452,885 - -
Receivables
(Net of Allowances for Uncollectibles):
Accounts - 41,600 69,721 14,792 645
Taxes - - - - -
Special Assessments - - - - -
Due from Other Governments - - - 195,137 -
Accrued Interest 3,754 4,718 - 11,818 6,011
Prepaids
Other Assets
Total Assets $ 3,587,013 $ 3,883,201 $ 831,628 $ 6,249,919 $ 2,450,967
Liabilities and Fund Balances
Liabilities:
Accounts Payable and Accrued Liabilities $ 111,457 $ 214,293 $ 14,619 $ 191,394 $ 506,505
Due to Other Funds
Due to Other Governments
Deferred Revenue - 361,239 - - 769,871
Deposits - - - 459,278 108,476
Total Liabilities 111,457 575,532 14,619 650,672 1,384,852
Fund Balances (Deficits):
Reserved for:
Encumbrances 389,868 304,615 2,664 1,098,319 1,271,154
Debt Service - - - - -
Law Enforcement - - - - -
Prepaid Items - - - - -
Unreserved, Designated for,
Subsequent Years Expenditures - - - 660,167 -
Unreserved, Undesignated 3,085,688 3,003,054 814,345 3,840,761 (205,039)
Total Fund Balances 3,475,556 3,307,669 817,009 5,599,247 1,066,115
Total Liabilities and Fund Balances $ 3,587,013 $ 3,883,201 $ 831,628 $ 6,249,919 $ 2,450,967
70
Special Revenue Funds
Parks & Lan -
Net Recreation Police Enforcement
Offices Services Services Trust
$ 1,038,214
15
$ 1,038,229
$ 225,300
Local
Public Works City Clerk Option
Services Services Gas Tax
$ 2,598,302 $ 5,279,558 $ 2,665,965 S 1,498,720 $ 155,926 $ 1,252,546
487,497 - - - - -
2,694 392,402
38,599 321,205
1,798 9,860
11,567 233,732
16,151 5,460
3,140,457 $ 6,236,757 $ 2,682,116 $ 1,504,180 $ 155,926 $ 1,252,546
$ 140,573 $ 747,578 $ 377,912 $ - $ 4,431 $
1,336 574,826 -
300,445 - - 120,717
525,745 141,909 1,322,404 498,629 - 4,431
6,988 47,123
6,696,427 143,686
2,039,801
11,567 233,732
624,195 - - - - -
505,496 2,315,663 (2,015,806) - 1,504,180 151,495 1,252,546
512,484 2,998,548 4,914,353 2,183,487 1,504,180 151,495 1,252,546
$ 1,038,229 $ 3,140,457 $ 6,236,757 $ 2,682,116 $ 1,504,180 $ 155,926 $ 1,252,546
(continued)
City of Miami, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2004
Special Revenue Funds
Department Gusman
Stormwater Improvement Transportation and
Utility Initiatives & Transit Olympia
Total
Assets
Cash, Cash Equivalents and Investments $ 774,127 $ 3,595,096 $ 3,231,937 $ 62,705 $ 38,354,743
Restricted Cash and Investments - - - - 940,382
Receivables
(Net of Allowances for Uncollectibles):
Accounts - - - 237,568 759,422
Taxes
Special Assessments
Due from Other Governments 20,105 - 2,563,836 - 3,138,882
Accrued Interest - - - - 59,585
Prepaids - - - 9,125 254,424
Other Assets - - - - -
Total Assets $ 794,232 $ 3,595,096 $ 5,795,773 $ 309,398 $ 43,507,438
Liabilities and Fund Balances
Liabilities:
Accounts Payable and Accrued Liabilities $ - $ 110,314 $ 21,213 $ 94,000 $ 2,759,589
Due to Other Funds - - - - -
Due to Other Governments - - - - -
Deferred Revenue - - - - 1,707,272
Deposits - - - 144,337 1,133,253
Total Liabilities - 110,314 21,213 238,337 5,600,114
Fund Balances (Deficits):
Reserved for:
Encumbrances - 140,314 - - 10,101,158
Debt Service
Law Enforcement - - - - 2,039,801
Prepaid Items - - - 9,125 254,424
Unreserved, Designated for,
Subsequent Years Expenditures - 2,134,573 - - 3,418,935
Unreserved, Undesignated 794,232 1,209,895 5,774,560 61,936 22,093,006
Total Fund Balances 794,232 3,484,782 5,774,560 71,061 37,907,324
Total Liabilities and Fund Balances $ 794,232 $ 3,595,096 $ 5,795,773 $ 309,398 $ 43,507,438
72
Debt Service Funds
General Other Special CRA
Obligation Obligation Other Special
Bonds Bonds Obligation
Total
$ - $ 9,014 $ 448,953 $ 457,967
3,042,079 9,506,198 606,642 13,154,919
1,020,382 - - 1,020,382
$ 4,062,461 $ 9,515,212 $ 1,055,595 $ 14,633,268
$ 106 $
2,460,908
632,567
2,754
$ 106
2,460,908
632,567
2,754
3,096,335 - - 3,096,335
966,126
8,365,212 1,055,595
1,150,000
966,126 9,515,212
10,386,933
1,150,000
1,055,595 11,536,933
$ 4,062,461 $ 9,515,212 $ 1,055,595 $ 14,633,268
(continued)
73
City of Miami, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2004
Capital Projects Funds
Community
Redevelopment Sanitary Storm Solid
Agency Public Safety Sewers Sewers Waste
Assets
Cash, Cash Equivalents and Investments $ 2,695,930 $ 26,902,354 $ 25,590;154 $ 28,082,133 $ 1,979,436
Restricted Cash and Investments
Receivables
(Net of Allowances for Uncollectibles):
Accounts - - - - 301
Taxes - - - - -
Special Assessments - - - - 113,197
Due from Other Governments - - - - -
Accrued Interest 2,426 77,337 116,251 54,519 -
Prepaids - - - - -
Other Assets - - - - -
Total Assets $ 2,698,356 $ 26,979,691 $ 25,706,405 $ 28,136,652 $ 2,092,934
Liabilities and Fund Balances
Liabilities:
Accounts Payable and Accrued Liabilities $
Due to Other Funds
Due to Other Governments
Deferred Revenue
Deposits
Total Liabilities
1,356
$ 165,522 $ 44,478 $ 855,607 $
2,025 - -
15,728 - -
113,197
1,356 183,275 44,478 855,607 113,197
Fund Balances (Deficits):
Reserved for:
Encumbrances - 2,960,127 317,581 2,271,358 206,660
Debt Service - - - - -
Law Enforcement - - - - -
Prepaid Items - - - - -
Unreserved, Designated for,
Subsequent Years Expenditures - - - - -
Unreserved, Undesignated 2,697,000 23,836,289 25,344,346 25,009,687 1,773,077
Total Fund Balances 2,697,000 26,796,416 25,661,927 27,281,045 1,979,737
Total Liabilities and Fund Balances $ 2,698,356 $ 26,979,691 $ 25,706,405 $ 28,136,652 $ 2,092,934
Capital Projects Funds
Public Parks & Disaster
Facilities Recreation Recovery
Total
Total
Nonmajor
Governmental
Funds
$ 22,379,107 $ 36,594,862 $ 1,651,560 $ 145,875,536 $ 184,688,246
253,252 - 253,252 14,348,553
8,435 - - 8,736 768,158
1,020,382
113,197 113,197
686,244 120,649 806,893 3,945,775
82,302 182,717 - 515,552 575,137
51,960 - 51,960 306,384
300,000 - 300,000 300,000
$ 22,469,844 $ 38,069,035 $ 1,772,209 $ 147,925,126 $ 206,065,832
$ 543,674
$ 1,870,011 $ 1,007,889 $ 4,487,181 $ 7,246,876
2,460,908
2,025 2,025
113,197 2,453,036
17,084 1,153,091
543,674 1,870,011
1,213,032 7,615,822
1,007,889 4,619,487 13,315,936
2,925,359 17,509,939
51,960 - 51,960
27,611,097
10,386,933
2,039,801
306,384
4,568,935
20,713,138 28,531,242 (2,161,039) 125,743,740 147,836,746
21,926,170 36,199,024 764,320 143,305,639 192,749,896
$ 22,469,844 $ 38,069,035 $ 1,772,209 $ 147,925,126 $ 206,065,832
75
City of Miami, Florida
Combining Statement of Revenues, Expenditures, and Changes In Fund Balances
Nonmajor Governmental Funds
For The Year Ended September 30, 2004
Special Revenue Funds
Economic
Development
Convection & Planning Fire Rescue
Oinni CRA SEOPW CRA Center Services Services
Revenues
Property Taxes $ 4,498,041 $ 2,417,956 $ - $ - $ -
Franchise Fees and Other Taxes - - - - -
Fines and Forfeitures - - - - -
Intergovernmental Revenues - - 1,215,812 494,609 3,734,418
Charges for Services 21,500 3,669,451 1,086,347 4,272,243
Interest 76,044 70,549 2,888 41,062 22,886
Other - 154,209 481,325 558,281 122
Total Revenues 4,574,085 2,664,214 5,369,476 2,180,299 8,029,669
Expenditures
Current Operating:
General Government
Planning and Development - - 1,697,965
Community Redevelopment Areas 2,163,256 2,446,814
Public Safety - - - 4,411,800
Public Facilities - 2,938,005 - -
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges
Capital Outlay
Total Expenditures 2,163,256 2,446,814 2,938,005 1,697,965 4,411,800
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,410,829 217,400 2,431,471 482,334 3,617,869
Other Financing Sources (Uses)
Transfers In
Transfers Out
Refunding Bonds Issued
Payments to Refunded Bond Escrow Agent
Total Other Financing Sources (Uses)
1,344,597 1,628,908
(456,643) (699,392) (4,081,055)
695,777
40,497
(8,294,366)
(456,643) 645,205 (2,452,147) 695,777 (8,253,869)
Net Changes in Fund Balances 1,954,186 862,605 (20,676) 1,178,111 (4,636,000)
Fund Balances - Beginning 1,521,370 2,445,064 837,685 4,421,136 5,702,115
Fund Balances - Ending $ 3,475,556 $ 3,307,669 $ 817,009 $ 5,599,247 $ 1,066,115
76
Special Rev enue Funds
Parks & Law Local
Net Recreation Police Enforcement Public Works City Clerk Option
Offices Services Seri ices Trust Services Services Gas Tax
$ - S
157
1,831,169
6,510
14,069
4,398
13,191,195
46,525
11,100
157 1,856,146 13,248,820
5,825,318
1,918,211
917,095
63,534 20,116
142,292
980,629
14,804,180 3,176,152
5,825,318 1,918,211 14,804,180 3,176,152
(5,825,161)
(62,065) (1,555,360) (2,195,523)
6,334,426 1,235,500 177,050 113,630
S - $
128,219
162,408 128,219
150,090
150,090
162,408 (21,871)
31,000
(97,551) - (177,050) - - (632,082)
6,334,426 1,13 7,949 177,050
509,265 1,075,884 (1,378,310)
3,219 1,922,664 6,292,663
$ 512.484 S 2,998,548 $ 4,914,353
(63,420)
31,000 (632,082)
(2,258,943) 162,408 9,129 (632,082)
4,442,430 1,341, 772 142,366 1,884,628
2,183,487 $ 1,504,180 S 151,495 $ 1,252,546
(continued)
City of Miami, Florida
Combining Statement of Revenues, Expenditures, and Changes In Fund Balances
Nonmajor Governmental Funds
For The Year Ended September 30, 2004
Special Revenue Funds
Department Gusman
Stormwater Improvement Transportation and
Iltility Initiatives & Transit Olympia
Total
Revenues
Property Taxes $ - $ - $ - $ - $ 6,915,997
Franchise Fees and Other Taxes 35,589 - - - 35,589
Fines and Forfeitures - - - 917,095
Intergovernmental Revenues - - 12,891,306 615,046 33,973,555
Charges for Services - - - 431,407 9,615,677
Interest - - - - 357,673
Other - - 166,266 1,518,150
Total Revenues 35,589 - 12,891,306 1,212,719 53,333,736
Expenditures
Current Operating:
General Government - 1,217,635 342,852 - 7,535,895
Planning and Development - - - - 1,697,965
Community Redevelopment Areas - - - - 4,610,070
Public Safety - - - - 22,392,132
Public Facilities - - - 1,394,614 4,332,619
Parks and Recreation - - - - 1,918,211
Debt Service:
Principal
Interest and Other Charges
Capital Outlay
Total Expenditures - 1,217,635 342,852 1,394,614 42,486,892
Excess (Deficiency) of Revenues
Over (Under) Expenditures 35,589 (1,217,635) 12,548,454 (181,895) 10,846,844
Other Financing Sources (Uses)
Transfers In - 2,160,486 589,765 14,351,636
Transfers Out (968,064) (794,125) (11,365,093) - (27,565,421)
Refunding Bonds Issued - - - -
Payments to Refunded Bond Escrow Agent - - -
Total Other Financing Sources (Uses) (968,064) 1,366,361 (11,365,093) 589,765 (13,213,785)
Net Changes in Fund Balances (932,475) 148,726 1,183,361 407,870 (2,366,941)
Fund Balances - Beginning 1,726,707 3,336,056 4,591,199 (336,809) 40,274,265
Fuucl Balances - Ending $ 794,232 $ 3,484,782 $ 5,774,560 $ 71,061 $ 37,907,324
78
Debt Service Funds
General Other Special CRA
Obligation Obligation Other Special
Bonds Bonds Obligation
$ 20,194,278 $
51,743 49,179
Total
$ $ 20,194,278
300,000 300,000
1,495 102,417
20,246,021 49,179 301,495 20,596,695
10,740,000 8,974,464 125,000 19,839,464
10,068,259 12,304,430 321,544 22,694,233
20,808,259 21,278,894 446,544 42,533,697
(562,238) (21,229,715) (145,049) (21,937,002)
5,504,344
(5,504,344)
4,180,000
(4,062,502)
19,196,469
(1,367,420)
457,860
(222,219)
25,158,673
(7,093,983)
4,180,000
(4,062,502)
117,498 17,829,049 235,641 18,182,188
(444,740) (3,400,666) 90,592 (3,754,814)
1,410,866 12,915,878 965,003 15,291,747
$ 966,126 $ 9,515,212 $ 1,055,595 $ 11,536,933
(continued)
79
City of Miami, Florida
Combining Statement of Revenues, Expenditures, and Changes In Fund Balances
Nonmajor Governmental Funds
For The Year Ended September 30, 2004
Capital Projects Funds
Community
Redevelopment
Agency
Public Safety
Sanitary Storm Solid
Sewers Sewers Waste
Revenues
Property Taxes $ - $ - $ - S - $ -
Franchise Fees and Other Taxes - - - - -
Fines and Forfeitures - - - -
Intergovernmental Revenues - 105,252 - 237,935 -
Charges for Services - - - -
Interest 44,810 478,888 471,003 158,281
Other - 9,323 - - 71,201
Total Revenues 44,810 593,463 471,003 396,216 71,201
Expenditures
Current Operating:
General Government
Planning and Development
Community Redevelopment Areas
Public Safety
Public Facilities
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges
Capital Outlay - 2,966,530 62,012 3,239,327 296,634
Total Expenditures - 2,966,530 62,012 3,239,327 296,634
Excess (Deficiency) of Revenues
Over (Under) Expenditures 44,810 (2,373,067) 408,991 (2,843,111) (225,433)
Other Financing Sources (Uses)
Transfers In - 17,830,531 151,819 3,417,335 80,049
Transfers Out - (3,663,300) (179,319) (1,810,385) (445,392)
Refunding Bonds Issued
Payments to Refiurded Bond Escrow Agent
Total Other Financing Sources (Uses) - 14,167,231 (27,500) 1,606,950 (365,343)
Net Changes in Fund Balances 44,810 11,794,164 381,491 (1,236,161) (590,776)
Fund Balances - Beginning 2,652,190 15,002,252 25,280,436 28,517,206 2,570,513
Fund Balances - Ending $ 2,697,000 $ 26,796,416 $ 25,661,927 $ 27,281,045 $ 1,979,737
80
Total
Nonmajar
Public Parks & Disaster Governmental
Facilities Recreation Recovery Total Funds
$ - $ - $ - $ - $ 27,110,275
35,589
917,095
33,375 3,709,496 122,986 4,209,044 38,482,599
9,615,677
305,666 796,261 - 2,254,909 2,714,999
2,966,850 497,591 3,290,483 6,835,448 8,353,598
3,305,891 5,003,348 3,413,469 13,299,401 87,229,832
7,535,895
1,697,965
4,610,070
22,392,132
4,332,619
1,918,211
19,839,464
22,694,233
6,996,211 12,707,092 4,030,609 30,298,415 30,298,415
6,996,211 12,707,092 4,030,609 30,298,415 115,319,004
(3,690,320)
7,064,106
(3,601,077)
(7,703,744) (617,140)
15,180,160
(11,343,459)
535,296
(344,722)
(16,999,014) (28,089,172)
44,259,296
(21,387,654)
83,769,605
(56,047,058)
4,180,000
(4,062,502)
3,463,029 3,836,701 190,574 22,871,642 27,840,045
(227,291) (3,867,043) (426,566) 5,872,628 (249,127)
22,153,461 40,066,067 1,190,886 137,433,011 192,999,023
$ 21,926,170 $ 36,199,024 $ 764,320 $ 143,305,639 $ 192,749,896
81
City of Miami, Florida
Budgetary Comparison Schedule
Omni CRA
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
Resources (inflows):
Property Taxes $ 2,451,649 $ 2,451,649 $ 4,498,041 $ 2,046,392
Intergovernmental Revenues 1,774,495 1,774,495 - (1,774,495)
Interest 60,840 60,840 76,044 15,204
Other 652,224 726,283 726,283
Transfers In 785,209 - -
Amounts Available for Appropriation 5,724,417 4,286,984 5,300,368 1,013,384
Charges To Appropriations (outflows):
Community Redevelopment Areas 5,285,274 4,556,624 2,163,256 2,393,368
Transfers Out 439,143 456,643 456,643 -
Total Charges to Appropriations 5,724,417 5,013,267 2,619,899 2,393,368
Excess (Deficiency) of Resources Os er
Charges to Appropriations - (726283) 2,680,469 3,406,752
Fund Balance Allocation
726,283 - (726,2,83)
Excess (Deficiency) of Resources at er
Charges to Appropriations $ - $ - $ 2,680,469 $ 2,680,469
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sourceslinflows of resources
Actual amounts (budgetary basis) "available for appropriation' from
the budgetary comparison schedule. $ 5,300,368
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. (726,283)
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. -
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 4,574,085
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 2,619,899
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (456,643)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 2,163,256
82
Resources (inflows):
Property Taxes
Intergovernmental Revenues
Charges for Services
Interest
Other
Transfers In
Amounts Available for Appropriation
City of Miami, Florida
Budgetary Comparison Schedule
SEOPW CRA
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
$ 1,474,398 $ 1,474,398 1 2,417,956 $ 943,558
1,008,564 1,008,564 - (1,008,564)
30,000 30,000 21,500 (8,500)
91,904 91,904 70,549 (21,355)
5,060,590 5,060,590
895,388 1,680,597 1,344,597 (336,000)
3,500,254 4,285,463 8,915,192 4,629,729
Charges To Appropriations (outflows):
Community Redevelopment Areas 7,104,188 8,482,627 2,446,814 6,035,813
Transfers Out 696,066 709,217 699,392 9,825
Total Charges to Appropriations 7,800,254 9,191,844 3,146,206 6,045,638
Excess (Deficiency) of Resources Os er
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Gs er
Charges to Appropriations
(4,300.000) (4,906,381) 5,768,986 10,675,367
4,300,000 4,906,381 - (4,906,381)
$ $ $ 5,768,986 $ 5,768,986
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation' from
the budgetary comparison schedule. $ 8,915,192
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. (4,906,381)
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (1,344,597)
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 2,664,214
Csesloutflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 3,146,206
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Transfers to other finds are outflows of budgetary resources
but are not expenditures for financial reporting poses. (699,392)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 2,446,814
83
City of Miami, Florida
Budgetary Comparison Schedule
Coiw ention Center
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
Resources (inflows):
Intergovernmental Revenues $ 1,040,810 $ 1,040,810 $ 1,215,812 $ 175,002
Charges for Services 4,343,422 4,648,877 3,669,451 (979,426)
Interest 52,000 52,000 2,888 (49,112)
Other 5,362 5,362 481,325 475,963
Transfers In 1,628,908 1,628,908 1,628,908 -
Amounts Available for Appropriation 7,070,502 7,375,957 6,998,384 (377,573)
Charges To Appropriations (outflows):
Public Facilities 3,021,119 3,026,574 2,943,367 83,207
Transfers Out 4,049,383 4,349,383 4,081,055 268,328
Total Charges to Appropriations 7,070,502 7,375,957 7,024,422 351,535
Excess (Deficiency) of Resources Os er
Charges to Appropriations - - (26,038) (26,038)
Fund Balance Allocation - - - -
Excess (Deficiency) of Resources at er
Charges to Appropriations $ - $ - $ (26,038) $ (26,038)
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sourceslinflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 6,998,384
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes -
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (1,628,908)
Total revenues as reported en the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 5,369,476
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 7,024,422
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes_ (5,362)
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (4,081,055)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 2,938,005
84
Resources (inflows):
Intergovernmental Revenues
Charges for Services
Interest
Other
Transfers In
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Planning and Development
Transfers Out
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
Economic Development & Planning Services
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
$ - $ 1,381,204 $ 494,609 S (886,595)
243,798 414,498 1,086,347 671,849
41,062 41,062
24,720 24,720 4,461,514 4,436,794
695,777 695,777
268,518 1,820,422 6,779,309 4,958,887
268,518 4,891,420 1,722,685 3,168,735
832,235 - 832,235
268,518 5,723,655 1,722,685 4,000,970
(3,903233)
5,056,624 8,959,857
3,903,233 - (3,903233)
$ - $
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
5,056,624 $ 5,056,624
Sourceslinflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 6,779,309
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. (3,903,233)
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (695,777)
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 2,180,299
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"'
from the budgetary comparison schedule. $ 1,722,685
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. (24,720)
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. -
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 1,697,965
85
Resources (inflows):
Intergovernmental Revenues
Charges for Services
Interest
Other
Transfers In
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Public Safety
Transfers Out
Total Charges to Appropriations
Excess (Deficiency) of Resources Oa er
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Os er
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
Fire Rescue Services
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
$ 11,430,087 $ 14,721,832 $ 3,734,418 $ (10,987,414)
4,382,176 4,272,183 4,272,243 60
22,886 22,886
4 997,183 1,735,298 (2,486,885)
108,600 149,097 40,497 (108,600)
15,920,863 23,365,295 9,805,342 (13,559,953)
12,493,593 16,806,105
4,411,800 12,394,305
4,072,183 8,294,366 8,294,366
16,565,776 25,100,471 12,706,166 12,394,305
(644,913) (1,735,176) (2,900,824) (1,165,648)
644,913 1,735,176 - (1,735,176)
$ $ $ (2,900,824) $ (2,900,824)
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sourceslinflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 9,805,342
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. (1,735,176)
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (40,497)
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 8,029,669
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 12,706,166
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (8,294,366)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 4,411,800
86
City of Miami, Florida
Budgetary Comparison Schedule
NET Offices
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
Resources (inflows):
Other $ - $ - $ 157 $ 157
Transfers In 6,065,301 6,334,426 6,334,426
Amounts Available for Appropriation 6,065,301 6,334,426 6,334,583 157
Charges To Appropriations (outflows):
General Government 6,065,301 6,334,426 5,825,318 509,108
Total Charges to Appropriations 6,065,301 6,334,426 5,825,318 509,108
Excess (Deficiency) of Resources Over
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
509,265 509,265
509,265 $ 509,265
Sources/inflows of resources
Actual amounts (budgetary basis) 'available for appropriation' from
the budgetary comparison schedule- $ 6,334,583
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes- The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes- -
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes- (6,334,426)
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds- $ 157
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule- $ 5,825,318
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes- -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes- -
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds- $ 5,825,318
87
City of Miami, Florida
Budgetary Comparison Schedule
Parks & Recreation Services
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
Resources (inflows):
Intergovernmental Revenues $ 518,299 $ 2,827,212 $ 1,831,169 S (996,043)
Charges for Services - 60,000 6,510 (53,490)
Interest - - 14,069 14,069
Other - 539,760 4,398 (535,362)
Transfers In - - 1,235,500 1,235,500
Amounts Available for Appropriation 518,299 3,426,972 3,091,646 (335326)
Charges To Appropriations (outflows):
Parks and Recreation 518,299 3,329,421 1,918,211 1,411,210
Transfers Out - 97,551 97,551 -
Total Charges to Appropriations 518,299 3,426,972 2,015,762 1,411,210
Excess (Deficiency) of Resources Os er
Charges to Appropriations - - 1,075,884 1,075,884
Fund Balance Allocation - - - -
Excess (Deficiency) of Resources Os er
Charges to Appropriations $ - $ - $ 1,075,884 $ 1,075,884
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sourceslinflows of resources
Actual amounts (budgetary basis) "available for appropriation' from
the budgetary comparison schedule. $ 3,091,646
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes -
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (1,235,500)
Total revenues as reported en the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 1,856,146
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"'
from the budgetary comparison schedule. $ 2,015,762
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (97,551)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 1,918,211
88
City of Miami, Florida
Budgetary Comparison Schedule
Police Services
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
Resources (inflows):
Intergovernmental $ 18,146,166 $ 25,055,557 $ 13,191,195 $ (11,864,362)
Charges for Services - 69,487 - (69,487)
Interest - 37,282 46,525 9,243
Other 517,711 5,311,399 11,100 (5,300,299)
Transfers In 108,600 294,116 177,050 (117,066)
Amounts Available for Appropriation 18,772,477 30,767,841 13,425,870 (17,341,971)
Charges To Appropriations (outflows):
Public Safety 18,772,477 30,767,841 14,804,180 15,963,661
Total Charges to Appropriations 18,772,477 30,767,841 14,804,180 15,963,661
Excess (Deficiency) of Resources Over
Charges to Appropriations - - (1,378,310) (1,378,310)
Fund Balance Allocation - - - -
Excess (Deficiency) of Resources Oc er
Charges to Appropriations $ - $ - $ (1,378,310) $ (1,378,310)
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 13,425,870
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. -
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (177,050)
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 13,248,820
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 14,804,180
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. -
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 14,804,180
89
Resources (inflows):
Fines and Forfeitures
Interest
Other
Transfers In
Amounts Available for Appropriation
City of Miami, Florida
Budgetary Comparison Schedule
Law Enforcement Trust
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
113,630
917,095 $
63,534
5,703,668
113,630
917,095
63,534
5,703,668
113,630 6,797,927 6,684,297
Charges To Appropriations (outflows):
Public Safety 6,302,588 5,640,248 3,176,152 2,464,096
Transfers Out - 177,050 177,050 -
Total Charges to Appropriations 6,302,588 5,817,298 3,353,202 2,464,096
Excess (Deficiency) of Resources Over
Charges to Appropriations (6,302,588) (5,703,668) 3,444,725 9,148,393
Fund Balance Allocation 6,302,588 5,703,668 - (5,703,668)
Excess (Deficiency) of Resources Over
Charges to Appropriations $ - $ - $ 3,444,725 $ 3,444,725
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 6,797,927
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. (5,703,668)
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (113,630)
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 980,629
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 3,353,202
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (177,050)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 3,176,152
90
City of Miami, Florida
Budgetary Comparison Schedule
Public Works Services
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
Resources (inflows):
Intergovernmental Revenues $ - $ 180,000 $ $ (180,000)
Interest 1,115,120 1,115,120 20,116 (1,095,004)
Other - - 142,292 142,292
Amounts Available for Appropriation 1,115,120 1,295,120 162,408 (1,132,712)
Charges To Appropriations (outflows):
Public Works
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
1,115,120 1,295,120 - 1,295,120
1,115,120 1,295,120 - 1,295,120
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
162,408 162,408
162,408 $ 162,408
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation' from
the budgetary comparison schedule. $ 162,408
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. -
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial rep0rt+ngg purposes. -
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 162,408
Csesloutflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule.
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting pulses.
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds.
91
Resources (inflows):
Charges for Services
Other
Transfers In
Amounts Available for Appropriation
Charges To Appropriations (outflows):
General Government
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
City Clerk Services
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
$ 150,430 $ 150,430 $ 128,219 $ (22,211)
5,000 5,000
35,000 35,000 31,000 (4,000)
185,430 185,430 164,219 (21,211)
190,430 190,430 150,090 40,340
190,430 190,430 150,090 40,340
(5,000) (5,000)
14,129 19,129
5,000 5,000 - (5,000)
$ - $
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
14,129 $ 14,129
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 164,219
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. (5,000)
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (31,000)
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 128,219
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 150,090
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. -
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 150,090
92
Resources (inflows):
Other
Amounts Available for Appropriation
City of Miami, Florida
Budgetary Comparison Schedule
Local Option Gas Tax
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
$
632,082 $ 632,082
632,082 632,082
Charges To Appropriations (outflows):
Transfers Out - 632,082 632,082
Total Charges to Appropriations - 632,082 632,082
Excess (Deficiency) of Resources Oc er
Charges to Appropriations
Fund Balance Allocation
Excess (Deficiency) of Resources Over
Charges to Appropriations
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
(632,082) - 632,082
632,082 - (632,082)
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation' from
the budgetary comparison schedule. $ 632,082
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. (632,082)
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. -
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds $ -
Usesloutflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule_ $ 632,082
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for finanrial reporting purposes. (632,082)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds $ -
93
City of Miami, Florida
Budgetary Comparison Schedule
Stormwater Utility
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
Resources (inflows):
Franchise Fees and Other Taxes $ - $ - $ 35,589 $ 35,589
Other - - 968,064 968,064-
Amounts Available for Appropriation - - 1,003,653 1,003,653
Charges To Appropriations (outflows):
Transfers Out - 968,064 968,064
Total Charges to Appropriations - 968,064 968,064
Excess (Deficiency) of Resources Over
Charges to Appropriations - (968,064) 35,589 1,003,653
Fund Balance Allocation
Excess (Deficiency) of Resources Os er
Charges to Appropriations
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
968,064 - (968,064)
$ $ 35,589 $ 35,589
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 1,003,653
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. (968,064)
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. -
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 35,589
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 968,064
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for finanrial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for finanrial reporting purposes. (968,064)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ -
94
Resources (inflows):
Other
Transfers In
Amounts Available for Appropriation
City- of Miami, Florida
Budgetary Comparison Schedule
Department Improvement Initiatives
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
$
$ $ 3,199,439 S 3,199,439
2,650,713 2,160,486 (490,227)
2,650,713 5,359,925 2,709,212
Charges To Appropriations (outflows):
General Government 1,777,577 4,526,723 1,611,731 2,914,992
Transfers Out - 1,323,429 794,125 529,304
Total Charges to Appropriations 1,777,577 5,850,152 2,405,856 3,444,296
Excess (Deficiency) of Resources Oyer
Charges to Appropriations (1,777,577) (3,199,439) 2,954,069 6,153,508
Fund Balance Allocation 1,777,577 3,199,439 - (3,199,439)
Excess (Deficiency) of Resources Over
Charges to Appropriations $
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
2,954,069 $ 2,954,069
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 5,359,925
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes- The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. (3,199,439)
Transfers from other funds are inflows of budgetary resources
but are not revenues for finanrial reporting purposes. (2,160,486)
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ -
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 2,405,856
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. (394,096)
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (794,125)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 1,217,635
95
Resources (inflows):
Intergovernmental Revenues
Amounts Available for Appropriation
City of Miami, Florida
Budgetary Comparison Schedule
Transportation & Transit
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
$ 13,025,000 $ 13,025,000 $ 12,891,306 $ (133,694)
13,025,000 13,025,000 12,891,306 (133,694)
Charges To Appropriations (outflows):
General Government 1,659,907 1,659,907 342,852 1,317,055
Transfers Out 11,365,093 11,365,093 11,365,093 -
Total Charges to Appropriations 13,025,000 13,025,000 11,707,945 1,317,055
Excess (Deficiency) of Resources Over
Charges to Appropriations - -
Fund Balance Allocation - -
Excess (Deficiency) of Resources Over
Charges to Appropriations
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
1,183,361 1,183,361
1,183,361 $ 1,183,361
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 12,891,306
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes- The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. -
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes- -
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 12,891,306
Uses/outflows of resources
Actual amounts (budgetary basis) 'total charges to appropriations"
from the budgetary comparison schedule. $ 11,707,945
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (11,365,093)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 342,852
96
City of Miami, Florida
Budgetary Comparison Schedule
Gusman & Olympia
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
Resources (inflows):
Intergovernmental Revenues $ - $ - $ 615,046 $ 615,046
Charges for Services 321,000 321,000 431,407 110,407
Other 514,205 514,205 166,266 (347,939)
Transfers In - - 589,765 589,765
Amounts Available for Appropriation 835,205 835,205 1,802,484 967,279
Charges To Appropriations (outflows):
Public Facilities
Total Charges to Appropriations
835,205 835,205 1,394,614 (559,409)
835,205 835,205 1,394,614 (559,409)
Excess (Deficiency) of Resources Over
Charges to Appropriations - - 407,870 407,870
Fund Balance Allocation - - - -
Excess (Deficiency) of Resources Over
Charges to Appropriations $ - $ - $ 407,870 $ 407,870
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 1,802,484
Differences - budget to GAAP:
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. -
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (589,765)
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 1,212,719
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 1,394,614
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. -
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 1,394,614
97
Resources (inflows):
Property Taxes
Interest
Other
Transfers In
Refunding Bonds Issued
Amounts Available for Appropriation
Charges To Appropriations (outflows):
Debt Service:
Principal
Interest and Other Charges
Transfers Out
Payments To Refunded Bond Escrow Agent
Total Charges to Appropriations
Excess (Deficiency) of Resources Over
Charges to Appropriations
City of Miami, Florida
Budgetary Comparison Schedule
General Obligation Bonds
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
$ 19,689,164 $ 19,689,164 $
1,214,053
5,504,344
4,180,000
19,689,164 30,587,561
10,740,000
9,987,881
10,740,000
11,319,432
5,504,344
4,062,502
20,727,881 31,626,278
(1,038,717) (1.038,717)
Fund Balance Allocation 1,038,717
Excess (Deficiency) of Resources Over
Charges to Appropriations
Explanation of Differences between Budgetary Inflows and Outflows
and GASP Revenues and Expenditures
20,194,278 $
51,743
1,038,717
5,504,344
4,180,000
505,114
51,743
(175,336)
30,969,082 381,521
10,740,000
10,068,259
5,504,344
4,062,502
1,251,173
30,375,105 1,251,173
593,977 1,632,694
1,038,717 - (1,038,717)
593,977 $ 593,977
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 30,969,082
Differences - budget to GAAP:
Loan proceeds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (4,180,000)
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. (1,038,717)
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (5,504,344)
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 20,246,021
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 30,375,105
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Payments to escrow agents are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (4,062,502)
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (5,504,344)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 20,808,259
98
City of Miami, Florida
Budgetary Comparison Schedule
Other Special Obligation Bonds
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
Resources (inflows):
Interest $ - $ - $ 49,179 S 49,179
Other - 1,500,000 1,500,000
Transfers In 19,808,457 24,681,320 19,196,469 (5,484,851)
Amounts Available for Appropriation 19,808,457 24,681,320 20,745,648 (3,935,672)
Charges To Appropriations (outflows):
Debt Service:
Principal
Interest and Other Charges
Transfers Out
Total Charges to Appropriations
17,157,336
4,151,121
8,974,464
12,333,993
4,872,863
8,974,464
12,304,430
1,367,420
29,563
3,505,443
21,308,457 26,181,320 22,646,314 3,535,006
Excess (Deficiency) of Resources Os er
Charges to Appropriations (1,500,060) (1,500,060) (1,900,666) (400,666)
Fund Balance Allocation 1,500,000 1,500,000 - (1500000)
Excess (Deficiency) of Resources Os er
Charges to Appropriations $ - $ - $ (1,900,666) $ (1,900.666)
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sourceslinflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 20,745,648
Differences - budget to GAAP:
Loan proceeds are inflows of budgetary resources
but are not revenues for financial reporting purposes. -
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. (1,500,000)
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (19,196,469)
Total revenues as reported en the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 49,179
L'sesloutflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 22,646,314
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Payments to escrow agents are outflows of budgetary resources
but are not expenditures for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (1,367,420)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 21,278,894
99
Resources (inflows):
Intergovernmental Revenues
Interest
Transfers In
Amounts Available for Appropriation
City of Miami, Florida
Budgetary Comparison Schedule
CRA Other Special Obligation Bonds
For The Year Ended September 30, 2004
Variance with
Budgeted Amounts Actual Amounts Final Budget
Original Final (Budgetary Basis) Positive (Negative)
$ 302,475 $ 524,694 S 300,000 $ (224,694)
1,495 1,495
57,275 157,275 457,860 300,585
359,750 681,969 759,355 77,386
Charges To Appropriations (outflows):
Debt Service:
Principal 135,000 135,000 125,000 10,000
Interest and Other Charges 224,750 324,750 321,544 3,206
Transfers Out - 222,219 222,219 -
Total Charges to Appropriations 359,750 681,969 668,763 13,206
Excess (Deficiency) of Resources Os er
Charges to Appropriations - - 90,592 90,592
Fund Balance Allocation - - - -
Excess (Deficiency) of Resources Os er
Charges to Appropriations $ - $ - $ 90,592 $ 90,592
Explanation of Differences between Budgetary Inflows and Outflows
and GAAP Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule. $ 759,355
Differences -'budget to GAAP:
Loan proceeds are inflows of budgetary resources
but are not revenues for financial reporting purposes. -
Equipment purchased with a capital lease is a budgetary resource
but is not a current -year revenue for financial reporting purposes. The fund balance at the beginning of the year is a budgetary
resource but is not a current -year revenue for financial
reporting purposes. -
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (457,860)
Total revenues as reported en the statement of revenues,
expenditures, and changes in fund balances - governmental
funds. $ 301,495
L'sesloutflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule. $ 668,763
Differences - budget to GAAP:
Encumbrances for supplies and equipment ordered but not received is reported
in the year the order is placed for budgetary purposes, but in the year
supplies are received for financial reporting purposes. -
Payments to escrow agents are outflows of budgetary resources
but are not expenditures for financial reporting purposes. -
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (222,219)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -governmental
funds. $ 446,544
100
FIDUCIARY FUNDS
Fiduciary Funds are used to account for assets held by the City in a trustee
capacity.
General Employees' and Sanitation Employees' (GESE) and
Firefighters' and Police Officers' (FIPO) — Both funds are used to
account for the accumulation of resources to be used for retirement
benefits to City employees. Resources are contributed by employees at
rates fixed by law and by the City at amounts determined by annual
actuarial valuations.
City of Miami Elected Officers' Retirement Trust (FORT) — Funds
are used to account for the accumulation of resources to be used for
retirement benefits to elected officials. Resources are contributed by the
City in amounts determined by actuarial valuations.
101
City of Miami, Florida
Combining Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2004
Employee Retirement Funds Totals
Elected Officer's Employee
Firefighter and General and Retirement Trust Retirement
Police (FIPO) Sanitation (GESE) (EMU) Funds
Assets
Cash and Short -Term Investments $ 39,458,822 $ 412,293 $ 175 $ 39,871,290
Accounts Receivable 12,143,073 7,847,125 19,990,198
Capital Assets 2,341,720 2,003,212 4,344,932
53,943,615 10,262,630 175 64,206,420
Investments, at fair value
U.S. Government Obligations 195,061,435 71,339,230 1,838,268 268,238,933
Corporate Bonds 164,596,730 77,385,316 241,982,046
Corporate Stocks 734,044,817 349,535,058 1,083,579,875
Money Market Funds and Commercial Pape] - 16,879,353 192,649 17,072,002
Mutual Finds 58,003,816 58,003,816
Real Estate - 30,263,649 30,263,649
Total Investments 1,151,706,798 545,402,606 2,030,917 1,699,140,321
Securities Lending Collateral
Total Assets
Liabilities
Obligations Under Security Lending
Accounts Payable
Accrued Liabilities
Payable for Securities Purchased
Total Liabilities
146,958,999 146,958,999
1,352,609,412 555,665,236
146,958,999
406,532
9,686,086
27,313,761
184,365,378
905,163
7,718,152
2,031,092 1,910,305,740
146,958,999
1,311,695
9,686,086
35.031,913
8,623,315 192.988.693
Net Assets
Held in Trust for Pension Benefits $ 1.168.244.034 $ 547.041.921 $ 2.031.092 $ 1.717.317.047
102
City of Miami, Florida
Combining Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30, 2004
Employee Retirement Funds Totals
Elected Officer's Employee
Firefighter and General and Retirement Trust Retirement
Police (FIPO) Sanitation (GESE) (EORT) Funds
Additions
Contributions:
Employer $ 36,659,614 $ 11,285,223 $ 300,000 $ 48,244,837
Plan Members 24,415,150 7,981,875 - 32,397,025
Total Contributions 61,074,764 19,267,098 300,000 80,641,862
Investment Earnings:
Net Increase m Fair
Value of Investments 106,824,154 43,048,354 149,872,508
Interest 18,158,906 7,285,467 25,889 25,470,262
Dividends 9,147,251 5,002,386 - 14,149,637
Other Income, net 835,291 2,445,805 3,281,096
Total Investment Earnings 134,965,602 57,782,012 25,889 192,773,503
Less Investment Expenses 3,901,006 2,347,774 6,248,780
Net Investment Earnings 131,064,596 55,434,238 25,889 186,524,723
Total Additions 192,139,360 74,701,336 325,889 267,166,585
Deductions
Benefits
Refunds upon Resignation, Death, etc_
Distribution to Retirees
Administrative and Other Expenses
Total Deductions
Change in Net Assets
Net Assets - Beginning of Year
Net Assets - End of Year
53,249,449
307,893
9,916,255
42,726
41,656,165 137,055 95,042,669
883,189 1,191,082
9,916,255
2,371,310 5,300 2,419,336
63,516,323 44,910,664 142,355 108,569,342
128,623,037 29,790,672 183,534 158,597,243
1,039,620,997 517,251,249 1,847,558 1,558,719,804
$ 1,168,244,034 $ 547.041,921 $ 2,031,092 $ 1,717,317,047
103
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104
STATISTICAL SECTION
This part of the City of Miami, Florida's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the City's overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial
performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the City's most significant local revenue
source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current
levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the City provides and the activities it
performs.
Sources: Unless other wise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
106
112
116
121
123
105
CITY OF MIAMI, FLORIDA
NET ASSETS BY COMPONENT
LAST THREE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
2002
2003 2004
Primary Government
Invested in Capital Assets, Net of Related Debt $ 598,154,380 $ 618,784,135 $ 586,493,178
Restricted 115,031,965 114,327,395 149,143,544
Unrestricted (16,932,986) (35,234,348) (64,134,990)
Total Primary Government Net Assets $ 696,253,359 $ 697,877,182 $ 671,501,732
Notes:
(1) Data not available prior to fiscal 2002 implementation of Governmental Accounting Standards
Board Statement No. 34, Basic Financial Statements and Managements Discussion
and Analysis for State and Local Governments .
(2) The City does not have any business type activities for financial reporting purposes.
106
CITY OF MIAMI, FLORIDA
CHANGES IN NET ASSETS
LAST THREE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Expenses
Governmental Activities:
General Government
Planning and Development
Community Development
Community Redevelopment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Interest on Long -Term Debt
Unallocated Depreciation
Total Primary Government Expenses
Program Revenues
Governmental Activities:
Charges for Services:
General Government
Planning and Development
Community Development
Community Redevelopment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Operating Grants and Contributions
Capital Grants and Contributions
Total Primary Government Program Revenues
Net (Expense)IRevenue
Total Primary Government Net Expense
General Revenues and Other Changes in Net Assets
Governmental Activities:
Taxes
Property Taxes, Levied for General Purposes
Property Taxes, Levied for Debt Service
Franchise Fees and Licensing Fees
State Revenue Sharing (Sales Tax and Fuel Tax)
Public Service Taxes
Investment Earnings
Other
Total Prnnary Government
Change in Net Assets
Total Primary Government
Fiscal Year
2002
2003
2004
$ 94,349,348
13,289,988
47,186,103
6,125,242
53,950,238
200,727,361
9,832,601
19,550,960
17,252,301
25,765,566
$ 85,176,588
13,579,968
32,088,517
6,477,916
60,708,046
226,580,865
10,561,373
20,152,074
19,489,387
25,765,567
$ 85,252,892
13,148,696
40,349,703
4,618,714
49,498,193
282,427,868
17,458,726
44,275,606
23,235,705
26,147,570
$ 488,029,708 $
500,580,301 $ 586,413,673
$ 25,145,862 $
16,639,268
3,121,251
2,848,509
45,174,858
46,840,040
13,605,750
2,416,563
51,137,825
23,053,287
38,112,181
12,192,540
2,058,660
310,182
39,697,353
48,061,754
16,273,110
2,446,385
34,441,899
9,646,560
$ 48,955,278
14,352,919
2,069,068
220,517
42,608,182
48,507,121
16,736,649
3,308,314
42,967,708
19,952,074
$ 229,983,213
$ 203,240,624 $ 239,677,830
$ (258.046,495) $ (297,339,677) $ (346.735,843)
$ 133,633,077
17,981,523
28,390,470
36,6.44,840
58,314,804
10,6.45,639
4,035,765
$ 146,828,411
19,941,880
31,556,387
31,825,518
58,900,480
8,833,535
1,077,289
$ 163,056,413
19,932,162
35,024,215
32,631,162
60,024,832
5,618,813
4,072,796
289,6.46,118
298,963,500
320,360,393
$ 31.599.623 $ 1.623.823 $ (26.375.450)
Notes:
(1) Data not available prior to fiscal 2002 implementation of Governmental Accounting
Standards Board Statement No. 34, Basic Financial Statements and
Management's Discussion and Analysis for State and Local Governments .
(2) The City does not have any business type activities for financial reporting purposes.
107
Fiscal
Year
2002
2003
2004
Ad Valorem
Taxes
General Purpose
$ 133,633,077
146,828,411
163,056,413
CITY OF MIAMI, FLORIDA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST THREE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Ad Valorem
Taxes
Debt Service
$ 17,981,523
19,941,880
19,932,162
Franchise Fees
and
Licensing Fees
$ 28,290,470
31,556,387
35,024,215
State
Revenue
Sharing
$ 36,644,840
31,825,518
32,631,162
Public
Service
Taxes
Total
$ 58 314,804 $
58,900,480
60,024,832
Note: Data not available prior to fisca12002 'implementation of Governmental Accounting Standards Board Statement No. 34. Basic Financial
Statements' and Managements Discussion and Analysis. for State and Local Governments .
274,864,714
289,052,676
310,668,784
108
CITY OF MIANII, FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST THREE FISCAL YEARS
(MODIELED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
2002 2003 2004
General Fund
Reserved $ 3,205,250 $ 4,957,194 $ 3,439,120
Unreserved 138,322,603 136,905,142 133,413,642
Total General Fund $ 141.527.853 $ 141.862.336 $ 136.852.762
All Other Governmental Funds
Reserved $ 50,030,424 $ 47,462,015 $ 59,142,160
Unreserved, reported in:
Special Revenue Fluids 37,641,587 42,890,394 47,901,687
Debt Service Funds - 1,150,000
Capital Projects Funds 248,291,182 253,413,002 241,854,585
Total All Other Governmental Funds $ 335.963.193 $ 343.765.411 $ 350.048.432
Notes:
(1) Data not available prior to fiscal 2002 implementation of Governmental Accounting Standards
Board Statement No. 34, Basic Financial Statements and Management's Discussion
and Analysis for State and Local Governments .
CITY OF MIAMI, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST THREE FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Revenues
Property Taxes
Franchise Fees and Other Taxes
Licenses and Permits
Fines and Forfeitures
Intergovernmental Revenues
Charges for Services
Interest
Impact Fees
Other
Total Revenues
Expenditures
General Government
Planning and Development
Community Development
Community Redevelopment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Debt Service
Principal
Interest and Other Charges
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Fiscal Year
2002
2003
2004
$ 151,466,110
82,420,792
21,375,993
7,873,608
119,200,594
112,810,566
14,361,868
2,518,983
11,819,604
$ 165,276,692
90,536,519
21,469,973
6,171,539
95,596,305
98,801,168
12,869,537
1,016,942
9,518,349
$ 186,501,954
102,811,047
23,011,688
5,649,452
124,153,113
102,172,563
9,054,422
3,743,183
15,370,429
523,848,118
501,257,024 572,467,851
90,559,876
8,697,063
47,497,163
6,055,846
46,334,524
181,544,596
7,926,285
12,920,245
23,073,400
19,336,603
45,276,403
79,149,782
10,060,699
32,025,868
6,935,388
50,591,533
209,518,537
7,867,401
14,987,253
22,056,400
17,834,229
42,570,640
71,744,631
12,420,765
39,073,478
4,610,070
56,926,608
265,574,068
10,243,873
16,682,057
19,839,464
22,694,233
54,707,004
489,222,004
493,597,730 574,516,251
34,626,114 7,659,294
(2.048.400)
Other Financing Sources (Uses)
Transfers In 142,497,540 162,945,393 224,948,344
Transfers Out (142,497,540) (162,945,393) (224,948,344)
Refunding Bonds Issued 73,575,000 47,070,000 4,180,000
Payments to Refunded Bond Escrow Agent (69,980,000) (46,592,593) (4,062,502)
Proceeds of Long -Term Capital -Related Debt 155,130,087
Capital Leases 3,204,349
Total Other Financing Sources 158,725,087 477,407
Net Change In Fund Balances
Debt Service as a Percentage of Non -Capital Expenditures
3,321,847
$ 193,351,201 $ 8,136,701 $ 1,273,447
9.55% 8.84%
Notes:
(1) Data not available prior to fiscal 2002 implementation of Governmental Accounting Standards
Board Statement No. 34, Basic Financial Statements and Management's Discussion
and Analvsis for State and Local Governments
8.18%
110
Fiscal
Year
2002
2003
2004
Ad Valorem
Taxes
General Purpose
$ 133,398,797
145,520,698
166,121,214
CITY OF MIAMI, FLORIDA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST THREE FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Ad Valorem
Taxes
Debt Service
$ 18,067,313
19,755,994
20,380,740
Franchise
Taxes
$ 28,290,470
31,556,387
35,024,215
State
Revenue
Sharing
Note: Data not available prior to fiscal 2002 implementation of Governmental Accounting
Standards Board Statement No. 34, Basic Financial Statements and
Management's Discussion and Analysis for State and Local Governments.
$ 36,644,840
31,825,518
32,631,162
Public
Service
Taxes
$ 58,314,804
58,900,480
67,786,829
Total
274,716,224
287,559,077
321,944,160
111
Fiscal Year
Ended
September 30,
CITY OF MIAMI, FLORIDA
NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Real Property
Residential
Property
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
$ 4,481,680,377
4,667,399,202
4,935,864,809
5,183,731,875
5,476,130,675
5,796,864,025
6,000,474,083
6,612,151,524
7,679,048,886
8,789,474,779
Commercial
Property
$4,743,333,226
5,022,893,973
5,089,651,3 85
5,183,760,882
5,564,886,455
5,835,981,002
6,113,340,757
6,730,517,606
7,380,571,799
8,369,950,851
Personal
Property
$ 1,264,806,533
1,301,197,462
1,323,876,600
1,329,476,797
1,334,992,653
1,480,211,283
1,657,551,519
1,770,392,311
1,878,266,085
1,711,697,688
Source: Miami -Dade County Property Appraiser's Office.
Net
Assessed
Value
Total
Direct
Tax
Rate
$ 10,489,820,136
10,991,490,637
11,349,392,794
11,696,969,554
12,376,009,783
13,113,056,310
13,771,366,359
15,113,061,441
16,937,886,770
18,871,123,318
11.71
11.71
11.71
11.52
11.79
10.90
10.28
10.21
10.07
9.84
Estimated
Actual
Value
$ 15,339,834,878
16,123,104,241
16,578,047,476
17,112,988,091
17,901,918,921
18,857,553,034
20,061,032,742
22,035,829,555
24,759,964,620
27,717,908,682
Net Assessed
Value as a
Percentage of
Estimated Actual
Value (1)
Note: Property in the City is reassessed each year. State law requires the Property Appraiser to appraise property at 100% of market value.
The Florida Constitution was amended, effective January 1, 1995, to limit annual increases in assessed value of property with homestead
exemption to 3 percent per year or the amount of the Consumer Price Index, whichever is lower. The increase is not automatic since no
assessed value shall exceed market value. Tax rates are per $1,000 of assessed value.
(1) Includes tax-exempt property.
68.38%
68.17%
68.46%
68.35%
69.13%
69.54%
68.65%
68.58%
68.41 %
68.08%
112
CITY OF MIAMI, FLORIDA
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
City of Miami, Florida Overlapping Rates (1)
Miami -Dade
County
Fiscal Tax Roll General Debt Total School Miami -Dade
Year Year Operations Service City Board County
Miami -Dade
Children's
Trust
1995 1994 $ 9.5995 $ 2.1060 $ 11.7055 $ 10.4450 $ 8.0700 $
1996 1995 $ 9.5995 $ 2.1060 $ 11.7055 10.4890 7.6170
1997 1996 $ 9.5995 $ 2.1060 $ 11.7055 10.4660 7.2430
1998 1997 $ 9.5995 $ 1.9200 $ 11.5195 10.5620 6.9520
1999 1998 $ 10,0000 $ 1.7900 $ 11,7900 10,2600 6.8600
2000 1999 $ 9.5000 $ 1.4000 $ 10.9000 9.7440 6.6250
2001 2000 $ 8.9950 $ 1.2800 $ 10.2750 9.7170 6.4030
2002 2001 $ 8.9950 $ 1.2180 $ 10.2130 9.4760 6.2650
2003 2002 $ 8.8500 $ 1.2180 $ 10.0680 9.3520 6.2790
2004 2003 $ 8.7625 $ 1.0800 $ 9.8425 9.2000 6.2540
0.5000
Sources: City of Miami, Florida Finance Department and Miami -Dade County Property Appraiser's Office.
Miami -Dade
County
Library
System
South Florida
Water
Management
District
Florida
Inland
Navigation
District
$ 0.3430 $ 0.4970 $ 0.0490 $
0.3290 0.5470 0.0400
0.3390 0.5720 0.0380
0.3160 0.5970 0.0500
0.3340 0,5970 0,0470
0.3210 0.5970 0.0440
0.3510 0.5970 0.0410
0.4510 0.5970 0.0385
0.4860 0.5970 0.0385
0.4860 0.5970 0.0385
Total
Direct and
Overlapping.
Rates
31.1095
30.7275
30.3635
29.9965
29,8880
28.2310
27.3 840
27.0405
26.8205
26.9180
Note: All millage rates are based on $1 for every $1,000 of assessed value.
(1) Overlapping rates are those of local and county governments that apply to property owners within the City of Miami, Florida. Not all overlapping rates apply to all
City of Miami, Florida property owners (i.e. the rates for special districts apply only to the proportion of the government's property owners whose property is located
within the geographic boundaries of the special district).
CITY OF MIAMI, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2004
Taxpayer
SRI Miami Ventures, LP
Florida Power & Light
Teachers Ins & Annuity Assoc of America
Terremark
Prudential Insurance Co.
Swire Properties
1111 Brickell Office LLC
1000 Brickell LTD
Biscayne Tower Group
Bellsouth
Net
Assessed
Value
$ 250,000,000
229,863,398
228,000,000
173,192,356
135,000,000
119,329,542
112,500,000
98,715,075
87,300,000
83,560,461
S 1,517,460,832
Rank
Percent of
Total
City Net
Assessed
Value
1 1.32%
2 1.22%
3 1.21%
4 0.92%
5 0.72%
6 0.63%
7 0.60%
8 0.52%
9 0.46%
10 0.44%
Source: Tax roll provided by Miami -Dade County Property Appraisers Office
8.04%
1995
Taxpayer
Florida Power & Light
Prudential Insurance Co.
Southern Bell Telephone
Aetna Life Insurance
Metropolitan Life Insurance Co.
Brickell Associates
Equitable Life Assurance
Inter -Continental Florida
One Biscayne Tower
Knight Rider/Miami Herald
Net
Assessed
Value
184,509,000
75,111,000
Rank
2
7
195,468,000 1
145,000,000 3
124,368,000 4
107,248,000 5
103,496,000 6
67,666,000 8
63,515,000 9
53,120,000 10
$ 1,119,501,000
Percent of
Total
City Net
Assessed
Value
1.76%
0.72%
1.86%
1.38%
1.19%
1.02%
0.99%
0.65%
0.61%
0.51%
10.69%
114
Fiscal Year
Ended
September 30,
Total Taxes
Levied for
Fiscal
Year
CITY OF MIAMI, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
$ 120,805,000
128,661,000
132,850,000
134,743,241
145,913,155
142,932,314
141,425,410
152,339,301
167,490, 551
186,253,134
Collected within
the Fiscal Year
of the Levy
Collections in
Percent Subsequent
Amount of Levy
$115,936,000
120,519,000
128,783,000
127,911,000
143,515,000
136,028,063
134,535,715
146,185,141
157,339,038
183,845,937
Year's
95.97% $ 4,544,000
93,67% 7,777,558
96.94% 3,479,776
94.93% 6,330,294
98.36% 1,405,841
95.17% 6,174,244
95.13% 5,959,373
95,96% 4,079,641
93.94% 7,735,274
98,71%
Source: City of Miami, Finance Department and Miami -Dade County Tax Collector's Office
Total Collections
to Date
Amount
Percent
of Levy
$120,480,000
128,296,558
132,262,776
134,241,294
144,920,841
142,202,307
140,495,088
150,264,782
165,074,312
183,845,937
99.73%
99.72%
99.56%
99.63%
99.32%
99.49%
99.34%
98.64%
98.56%
98.71%
115
Fiscal Year
Ended
September 30,
CITY OF MIAMI, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
General
Obligation
Bonds
Revenue Loans
Bonds Payable
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
$ 183,180,000
170,650,000
157,020,000
142,755,000
130,205,000
119,150,000
107,620,000
252,615,822
236,549,956
225,944,956
144,086,325 $ 80,862,000
199,531,325 75,868,000
162,726,368 71,724,000
156,146,325 72,689,364
149,331,325 67,923,364
142,061,325 65,357,964
134,531,325 62,040,564
128,861,019 58,877,164
151,566,324 28,230,764
145,130,260 25,567,364
Percent of
Personal Per
Total Income (1,2) Capita (1)
408,128,325
446,049,325
391,470,368
371,590,689
347,459,689
326,569,289
304,191,889
440,354,005
416,347,044
396,642,580
2.01 %
1.89%
2.12%
2.35%
2.62%
2.92%
3.17%
2.20%
N/A
N/A
Notes: Details regarding the City"s outstanding debt can be found in the notes to the financial statements.
(1) See the Schedule of Demographic and Economic Statistics on page 123 for personal income and population data.
(2) Information not available at time of publication.
$ 1,064
1,163
1,071
1,017
951
893
839
1,215
1,149
1,094
116
Fiscal Year
Ended
September 30,
CITY OF MIAMI, FLORIDA
RATIQS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
General
Obligation
Bonds
Less Amounts
Available in
Debt Service
Fund
Percentage of
Estimated Actual
Taxable
Value of Per
Total Property (1) Capita (2)
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
$ 183,100,000
170,650,000
15 7,020,000
142,75 5,000
130,205,000
119,150,000
107,620,000
249,711,406
236,549,956
225,944,956
$ 2,301,000
2,489,000
4,730, 000
2,645,000
4,280,363
4,314,466
3,795,503
5,140,714
1,410,866
966,126
$ 180,799,000
168,161,000
152,290,000
140,110,000
125,924,637
114,835,534
103,824,497
244,570,692
235,139,090
224,978,830
L179% $ 471.57
1.096% 438.60
0.993% 416.61
0.913% 383.29
0.821% 344.48
0.749% 314.15
0.677% 286.44
1.594% 674.73
1.533% 648.71
1.467% 620.68
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements
(1) See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property on page 114 for property value data.
(2) See the Schedule of Demographic and Economic Statistics on page 123 for population data.
117
CITY OF MIAMI, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2004
Government Unit
Percentage Amount
Net Applicable to Applicable to
Debt the City of the City of
Outstanding Miami (1) Miami
Debt Repaid With Property Taxes:
Miami -Dade County $ 221,553,560 19.00% $ 42,095,176
Miami -Dade County School Board 1,160,289,001 19.00% 220,454,910
Subtotal, Overlapping Debt 262,550,087
City of Miami, Florida Direct Debt 225,944,956
Total Direct and Overlapping Debt $ 488,495,043
Sources: Data provided by the Miami -Dade County Finance Department and the Miami -Dade County School Board.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City.
This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the
residents and businesses of the City of Miami. This process recognizes that, when considering the City's ability to
issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into
account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the
debt, of each overlapping government.
(1) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable
assessed property values. Value that is within the City's boundaries and dividing it by the County's and School
Board's total taxable assessed value. This approach was also used for the other debt.
118
CITY OF MIAMI, FLORIDA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Fiscal Year
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Debt Limit $ 1,573,473,000 $ 1,648,724,000 $ 1,702,409,000 $ 1,754,545,433 $ 1,856,401,467 $ 1,966,958,447 $ 2,065,704,949 $ 2,266,959,216 $ 2,540,683,016 $ 2,830,668,498
Total Net Debt Applicable to Limit 180,879,000 168,161,000 153,629,000 139,360,000 127,927,234 114,914,079 103,824,851 249,71 1,407 236,549,956 224,978,830
Legal Debt Margin 8 1,392,594,000 $ 1,480,563,000 $ 1,548,780,000 $ 1,615,185,433 $ 1,728,474,233 $ 1,852,04 4,3 68 8 1,961,880,098 8 2,017,247,809 8 2,304,13 3,0 60 $ 2,605,689,668
Total Net Debt Applicable to the 1 1.50% 10.20% 9.02% 7.94% 6.89% 5.84% 5.03% 11.02% 9.31% 7.95%
Limit as a Percentage of Debt Limit
Legal Debt +.1rgin Calculation for Fiscal Year 2014
Assessed value
Less: Homestead Exempt Valuation
Total Assessed Value
Note: Section 58 of the City Charter limits the general obligation bonded debt of the City to 15% of the assessed valuation of al
real and personal property within the City limits as determined by the preceding assessment roll of the City
119
$ 19,944,740,269
$ (1,073,616,951)
$ 18,871,123,318
Debt Limit for Bonds
(15% of Total Assessed Value) 2,830,668,498
Present Debt Application to Debt Lim itatior
General Obligation Debt 225,944,956
Less: Amount Available in Debt Service Func (966,126)
Total Net Debt Applicable to Limit 224,978,830
Legal Debt Margin $ 2,605,689,668
Fiscal Year
Ended
September 30,
CITY OF MIAMI, FLORIDA
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Non -Ad
Valorem
Revenues (1)
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
$119,197,000
141,906,000
187,672,000
205,663,020
170,186,403
211,641,947
226,040,821
240,074,038
250,581,519
260,251,789
Debt Service 2x Annual
Principal Interest Debt Service Coverage (2)
$8,818,400 $11,228,295 $40,093,390 2.97
10,709,400 13,933,727 49,286,254 2.88
11,121,400 17,000,831 56,244,462 3.34
11,241,400 12,677,883 47,838,566 4.30
9,240,400 11,886,971 42,254,742 4.03
9,602,400 11,924,590 43,053,980 4.92
10,243,400 10,524,127 41,535,054 5.44
8,546,400 13,652,298 44,397,396 5.41
7,809,464 13,997,817 43,614,562 5.75
9,099,464 12,625,974 43,450,876 5.99
Note:
(1) Non ad valorem revenues shall mean all legally available revenues and taxes of the governmental unit
in the Funds (defined as the general fund, special revenue funds, the capital project funds,
the special assessment funds, and the expandable trust fund(s) derived from any source
whatever other than ad valorem taxation on real and personal property, including appropriated fund
balances in the funds and applicable operating transfers (in).
Non Ad Valorem Revenues are required to be two times greater than projected debt service.
(2) The Sunshine State Government Financing Loans require that available non -ad valorem revenues
to be two times the annual projected debt service for all debt other general obligation debt of the City.
Year Population (1)
CITY OF MIANII, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Personal
Income
(Amounts
Expressed in
Thousands) (2)
Per Capital
Personal Median School Unemployment
Income (2) Age (2) Enrollment (3) Rate (4)
1995 383,402 $ 8,189,850 $ 21,361 35.0 321,955 7.40%
1996 383,402 8,443,662 22,023 35.0 333,444 7.30
1997 365,548 8,312,562 22,740 35.0 340,904 7.10
1998 365,548 8,749,391 23,935 35.0 345,861 6.40
1999 365,548 9,087,523 24,860 35.0 352,595 5.80
2000 365,548 9,538,244 26,093 35.6 360,202 5.30
2001 362,470 9,639,527 26,594 35.9 368,453 6.90
2002 362,470 9,706,947 26,780 36.9 374,725 7.70
2003 362,470 (5) (5) 37.0 371,482 7.50
2004 362,470 (5) (5) (5) 369,578 5.70
Sources:
(1)
(2)
(3)
(4)
(5)
United States Census Bureau
Miami -Dade County Finance Department
Miami -Dade County School Board Budget Office
Florida Agency for Workplace Innovation, Office of Workforce Information Services, Labor Market Statistics
Information not available at time of publication.
CITY OF MIAMI, FLORIDA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2004 1995
Percentage of Percentage of
Total County Total County
Employer Employees Rank Employment Employees Rank Employment
Miami -Dade County Public Schools 54,387 1 5.22% 29,720 1 3.10%
Miami -Dade County 32,265 2 3.10% 28,000 2 2.92%
U.S. Federal Government 20,100 3 1.93% 18,300 3 1.91%
State of Florida 18,900 4 1.81% 16,000 4 1.67%
Public Health Trust/Jackson Memorial Hospital 11,700 5 1.12% 7,216 7 0.75%
Baptist Health Systems of South Florida 10,300 6 0.99% - -
University of Miami 9,367 7 0.90% 7,219 6 0.75%
American Airlines 9,000 8 0.86% 8,200 5 0.86%
Miami -Dade Community College 7,500 9 0.72% - -
Florida International University 5,000 10 0.48%
United Parcel Service 5,000 10 0.48% -
Bell South Telecommunications, Inc. - 5,798 8 0.61%
Winn Dixie Stores - - 4,972 9 0.52%
Florida Power & Light 3,978 10 0.42%
Total 183,519 17.61% 129,403 13.50%
Source: The Beacon Council/Miami-Dade County, Florida
122
CITY OF MIAMI, FLORIDA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST YEN FISCAL YEARS
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Number of Employees:
General Government 436 382 487 390 460 488 511 523 587 594
Planning and Development 91 80 114 192 109 109 127 141 140 138
Community Development 56 28 73 23 140 140 172 170 91 77
Public Works 609 396 554 447 477 479 500 507 498 497
Public Safety 2,287 2,149 1,624 1,655 2,345 2,388 2,346 2,275 2,248 2,140
Public Facilities 65 49 48 44 34 34 37 37 33 43
Culture and Recreation 151 165 67 126 128 129 136 136 141 148
Total Number of Employees 3,695 3,249 2,967 2,877 3,693 3,767 3,829 3,789 3,738 3,637
Source: City of Miami, Budget Department
123
CITY OF MIAMI, FLORIDA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Function/Program 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Community Development
Entitlements/Grants Received $ 38,721,300 $ 30,973,205 $ 30242,954 $ 30,238,553 $ 44,278,455 $ 35,755,804 $ 53,634,346 $ 38,337,736 $ 35,569,042 $ 32,351,101
Public Safety:
Police:
Part 1 Crimes - (1) 59,170 52,922 50,271 44,930 40,048 39,759 35,291 33,952 33,527 30,966
Part 1 Arrests - (1) 10,615 9,244 9,242 8,154 8,320 7,521 8,812 8,368 6,729 6,662
Part 2 Arrests - (2) 24,889 24,159 23,440 27,461 42,198 42,236 41,089 31,077 26,786 38,467
Fire:
Number of Fire Calls 11,859 11,597 11,567 12,239 11,897 13,310 12,945 12,228 15,571 17,889
Number of EMS Calls 59,421 59,707 58,716 57,930 58,507 60,166 63,104 63,041 62,784 64,500
Number ofAlarms 71,280 71,304 70,283 70,169 70,404 73,476 76,049 75,269 78,355 82,389
Planning and Development:
Certificate of Use Permits Issued 20,093 20,085 20,362 19,351 19,394 19,682 19,483 20,366 20,625 20,422
Occupational Licenses Issued 35,462 33,954 37,488 37,116 36,250 36,867 38,207 37,524 39,040 39,422
Culture and Recreation:
Summer Food Program - Meals Served (Lunches' 103,729 115,108 92,619 97,276 68,603 67,589 83,515 96,249 124,701 122,749
Summer Food Program - Meals Served (Snacks) 122,144 130,439 103,558 117,363 92,285 96,128 116,899 132,481 146,786 115,837
Summer Reading Program - Children Reached - - - - 1,000 1,200
Solid Waste:
Refuse Collected (Tons/Day) N/A N/A N/A 706 735 748 725 805 768 793
Recyclables Collected (Tons/Day: N/A N/A N/A N/A N/A N/A 28 28 24 21
Sources: Various City Departments
Note: Indicators are not available for the general government function
(1) Part 1 crimes and arrests include murder, rape, robbery, aggravated assault, burglary, larceny, and motor vehicle theft
(2) Part 2 arrests include all other arrests that are not Part 1 crimes.
124
Function/Program
CITY OF MIAM1, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Public Safety:
Police:
Police Stations 1 1 1 1 1 1 1 1 1 1
Police Sub -Stations 2 2 2 2 2 2 2 2 2 2
Fire:
Fire Stations 12 12 12 12 12 12 12 12 12 12
Solid Waste:
Collection Trucks N/A N/A N/A N/A N/A 117 132 153 172 176
Public Works:
Streets Niles- Paved) 661.0 661.0 661.0 660.8 660.8 660.5 659.2 659.1) 658.9 658.9
Streets (Miles - Unpaved) 1.5 1.5 1.5 1.5 1.5 1.5 1.4 1.4 1.4 1.4
Transportation:
Sheet Resurfacing (Miles) N/A N/A N/A N/A N/A N/A N/A N/A 25.0 33.5
Culture and Recreation:
Parks Acreage 800 800 800 800 800 800 800 800 800 800
Parks 110 110 110 110 110 110 110 110 110 111
Swimming Pools 10 10 10 10 10 10 10 10 10 10
Tennis Courts N/A 53 53 53 53 53 53 53 53 53
Community Centers N/A 25 25 25 25 26 26 30 30 31
Basketball Courts N/A 63 63 63 63 63 63 63 63 63
Water Playgrounds - - - - 1
Soccer Fields N/A 6 6 6 6 6 6 6 6 7
Football Fields N/A 12 12 12 12 12 12 12 12 12
Baseball Fields N/A 25 25 25 25 25 25 25 25 25
Sources: Various City Departments
Note: No capital asset indicators are available for the general government function
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