HomeMy WebLinkAboutFinancial StatementCOMPREHENSIVE ANNUAL
FINANCIAL REPORT
City of Miami, Florida
For the Year Ended September 30, 2009
Prepared by the Finance Department
City of Miami, Florida
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2009
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
PRINCIPAL CITY OFFICIALS
LETTER OF TRANSMITTAL iii
CERTIFICA 1'E OF ACHIEVEMENT x
ORGANIZATIONAL CHART xi
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
Governmental Funds Financial Statements
Balance Sheet 15
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets 16
Statement of Revenues, Expenditures and Changes in
Fund Balances 17
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Statement of
Activities 18
Fiduciary Funds Financial Statements
Statement of Fiduciary Net Assets 19
Statement of Changes in Fiduciary Net Assets 20
Discretely Presented Component Units
Statement of Net Assets 21
Statement of Activities 22
Notes to the Financial Statements 25
Required Supplementary Information:
Budgetary Comparison Schedules —Major Funds (General and Special Revenue):
General Fund 81
Fire Rescue Services Fund 82
Emergency Services Fund 83
Notes to the Required Supplementary Information 84
Pension Schedules:
Schedule of Funding Progress 85
Combining and Individual Fund Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet 92
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances 98
Budgetary Comparison Schedules — Non -major Governmental Funds:
Community Redevelopment Agency (ORA) Fund 104
Community Redevelopment Agency (MRA) Fund 105
Community Redevelopment Agency (SEOPV17) Fund 106
Homeless Fund 107
Community Development Fund 108
Choice Housing Vouchers (Section 8) Fund 109
State Housing Initiatives Program (SHIP) Fund 110
Convention Center Fund 111
Economic Development & Planning Services Fund 112
Net Offices Fund 113
Parks and Recreations Fund 114
Police Services Fund 115
Law Enforcement Trust Fund 116
Public Works Services Fund 117
City Clerk Services Fund 118
Local Option Gas Tax Fund 119
General Special Revenue Fund 120
Stormwater Utility Fund 121
Depaitment Improvement Initiatives Fund 122
Transportation & Transit Fund 123
Public Services Tax Fund 124
Model City Revitalization Trust 125
Virginia Key Beach Trust 126
Gusman and Olympia Fund 127
General Obligation Bonds Fund 128
Other Special Obligation Bonds Fund 129
Community Redevelopment Other Special Obligation Bonds Fund 130
Fiduciary Funds
Combining Statement of Fiduciary Net Assets 132
Combining Statement of Changes in Fiduciary Net Assets 133
III. STATISTICAL SECTION (Unaudited)
Net Assets by Component 136
Changes in Net Assets 137
Governmental Activities Tax Revenues by Source 138
Fund Balances of Governmental Funds 139
Changes in Fund Balances of Governmental Funds 140
General Government Tax Revenues by Source 141
Net Assessed Value and Estimated Actual Value of Taxable Property 142
Property Tax Rates — Direct and Overlapping Governments 143
Principal Property Taxpayers 144
Property Tax Levies and Collections 145
Ratios of Outstanding Debt by Type 146
Ratios of General Bonded Debt Outstanding 147
Direct and Overlapping Governmental Activities Debt 148
Legal Debt Margin Information 149
Pledged Revenue Coverage 150
Demographics and Economic Statistics 151
Principal Employers 152
Full -Time Equivalent City Government Employees by Function 153
Operating Indicators by Function 154
Capital Assets Statistics by Function/Program 155
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INTRODUCTORY SECTION
PRINCIPAL CITY OFFICIALS
LETTER OF TRANSMITTAL
CERTIFICATE OF ACHIEVEMENT
ORGANIZATIONAL CHART
City of Miami, Florida
Principal City Officials
September 30, 2009
MAYOR
Tomas P. Regalado
CITY COMMISSION
Marc D. Sarnoff, Chaiiiiian
Frank X. Carollo, Vice — Chairman
Wilfredo (Willy) Gort, Commissioner
Francis X. Suarez, Commissioner
Richard P. Dunn II, Commissioner
CITY MANAGER
Carlos A. Migoya
CITY ATTORNEY
Julie O. Bru
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April 20, 2010
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, 2009 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.
McGladrey & Pullen, LLP partnering with Sanson, Kline, Jacomino & Co., LLP, 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, 2009 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, 2009 were presented fairly in conformity
with GAAP. The independent auditor's 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 requirements, with special emphasis on internal controls and legal requirements
involving the administration of federal and state awards.
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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. The remainder of this letter provides an overview of the City government as well
as local economic conditions and prospects for the future.
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 404,000, according to the 2006 Census Bureau estimates. 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 the
services fall below minimum standards set by the County Commission, or 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 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, the ability of the City to impose its will on that
organization, or 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 below have been included in the City's reporting entity as either blended or
discretely presented component units.
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BLENDED
Southeast Overtown Park West CRA
OMNI CRA
Midtown CRA
Virginia Key Beach Park Trust
Liberty City Revitalization District Trust
Neighborhood Improvement Districts
DISCRETELY PRESENTED
Miami Sports and Exhibition Authority
Downtown Development Authority
Department of Off -Street Parking
Bayfront Management Trust
Health Facility Authority
Civilian Investigative Panel
Coconut Grove Business Improvement District
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 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 year ended September 30, 2009.
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 the
City's Budget Department. 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 depai tinental level, for
the fiscal year commencing the upcoming October 1st. The Mayor shall prepare and deliver a budgetary
address annually to the people of the City between July lst and September 30th. 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 30th, 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 combining and individual fund section
of this report.
ECONOMIC CONDITION AND OUTLOOK
In fiscal year 2009 the City of Miami began to experience the negative impacts of property tax reform
and a slowing housing market being felt statewide. However, unlike other cities throughout the state
and nation, continued new investment has helped to stabilize the City's tax base, which was reduced to
$39.684 billion, this fiscal year. Additionally, our regional economic base remains diversified,
comprised of wholesale and retail trade, construction, light manufacturing, and tourism. The City has
made great strides in the areas of telecommunications and biomedical industries. 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
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several Latin American countries, international trade has been growing at double-digit rates in the
Miami area.
Airport/Seaport
In 2009, the Miami International Airport (MIA) served nearly 33.9 million passengers, with nearly 47%
of those being international passengers. MIA also shipped 1.7 million tons of domestic and international
cargo during the year. MIA ranks among the top 5 in domestic airports for international freight and
passenger volume. Currently, MIA has a $6.2 billion Capital Improvement Program being
implemented, including a new runway, terminal, and cargo facility.
In 2009, the Port of Miami handled over 4.1 million cruise passengers; there was no increase from the
prior year. This port is considered the Cruise Capital of the World, boasting more home -ported cruise
ships than any other seaport. On the commercial side, the Port handled 6.8 million tons of cargo during
the current year, an 8% reduction from last year. In an attempt to improve business to the Port, the City
of Miami, Miami -Dade County, and the Florida Department of Transportation entered into an interlocal
agreement that approved the financing for the construction of a tunnel into the Port of Miami. The Port
Tunnel Project is estimated to cost just over $600 million, and is expected to create an economic benefit
to the local economy of $1.3 billion and the creation and retention of 14,090 jobs. Currently, the Port of
Miami generates $2.2 billion and creates 17,300 jobs to benefit the local economy.
Arenas/Entertainment Venues
The Performance Arts Center (PAC) operated by Miami -Dade County, serves as the host venue for
many Off Broadway shows; Ja77, Opera, and Pop music concerts; and educational and cultural
programs. The PAC has also served as the catalytic project spawning several hundreds of millions
dollars in private investment in the surrounding communities of the Omni and Southeast Overtown Park
West redevelopment districts.
In February of 2008, the City, Miami -Dade County, and the Florida Marlins Major League baseball
team entered into an Agreement to build a stadium on the site of the former Orange Bowl Stadium, in
Little Havana. The Stadium, currently under construction is expected to cost approximately $600
million and will seat 37,000 people. The building and operation of the stadium, and City owned parking
which includes over 53,000 square feet of adjacent retail and commercial development will have a
significant positive economic impact on the City.
Public/Private Development Ventures.
The City continues to collaborate with its local partners. In 2009, the City along with the Miami -Dade
County School Board opened the College of Policing. Funded with Homeland Defense Bonds and a
contribution from Miami -Dade County Public Schools, the facility will house the City's Police
Academy Class, the School for Professional Development, and an International Training Institute. In
addition, building houses the MDCPS School for Law Studies, Homeland Security, and Forensic
Sciences, the first of its kind.
Additionally, the City is assessing the use and management of its public facilities and other assets. It is
currently engaged in the process of restructuring its agreement with Hyatt Hotel located on city -owned
property adjacent the James L Knight Miami Convention Center in downtown Miami. The restructuring
is expected to include a sale of Garage 4, liquidation of existing debt encumbered on the garage and the
convention center, and a renovation of the center to develop more usable convention space in the
downtown area.
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American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act (ARRA) is an unprecedented effort to jumpstart our
economy, preserve or create jobs, make investments in infrastructure, energy and science and provide
unemployment assistance, and state and local economic stabilization. The ARRA was signed into law
by President Barrack Obama on February 17, 2009. The ARRA provides $787 Billion in spending and
tax relief Projects. The federal legislation includes grant funds that are distributed in two ways: (1)
directly to states and cities by formula, and (2) by competitive grants for which applicants must apply.
Through April 2010, over $37 million has been allocated to the City of Miami, and over $1 billion
throughout Miami -Dade County in formulaic and competitive grant funding for projects. In addition to
the funds received for projects, the City has leveraged stimulus funding provided through other agencies
to provide over 200 temporary jobs to area residents.
LONG-TERM FINANCIAL PLANNING
In order to meet the service demands of residents and visitors, the City continues to address the long-
term financing necessary in order to fund the capital projects essential to the creation, improvement,
enhancement, and preservation of public facilities and infrastructure.
The City's fiscal year 2008-2009, six -year Capital Improvement Plan, covering the period from October
1, 2008 through September 30, 2014, has earmarked funding estimated at $737.2 million for 540
projects throughout the City. Streets and sidewalks projects account for the largest portion of the total
Capital Plan funding at $191.8 million or 26%. Parks and Recreation projects are the second largest,
accounting for $156.6 million, or 21%, and Storm Sewer projects are the third largest accounting for
$105 million, or 14% of the total Capital Improvement Plan.
Proceeds from the issuance of City bonds represent the largest share of funding for the Capital
Improvement Plan, accounting for 41.5% of the value. Capital project revenues (impact fees, storm
water utilities, optional gas tax, etc.) account for 28.6%, funding received from Miami -Dade County
accounts for 13%, and the remaining16.8% of funding will come from a combination of Federal, State,
and other private donations and grants.
RELEVANT FINANCIAL POLICIES
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. 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.
Cash Management Policies 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 apply to
all investments of public funds. Idle cash balances are invested on a daily basis at the best interest rates
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case or temporary cnanges m the rair value of investments that the city intends to hold to maturity.
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 a pay as you go 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.
MAJOR INITIATIVES
The City's emphasis continues to be on its plan to restore, maintain and beautify urban and residential
infrastructure through a program of major renovations and improvements to City parks, streets,
sidewalks, and drainage systems.
Additionally, Miami 21 — the comprehensive master plan for the City of Miami — has made great strides
since its launch in May of 2006. Approved by the City Commission in October of 2009, Miami 21 takes
a holistic approach to land use and urban planning, broadening the scope of a traditional master plan to
become a truly comprehensive plan. Miami 21 will provide a clear vision for the City that will be
supported by specific guidelines and regulations so that future generations will reap the benefits of well-
balanced neighborhoods and rich quality of life. The implementation of the Miami 21 plan is slated for
May of 2010.
While the external improvements are critical to promote further economic development, the City has
also made strides to address the technology needs of the City's administration. In October 2006 the City
launched a City-wide Enterprise Resource Planning system (ERP) calling the project "iMiAMi". In June
of 2009 the City successfully implemented Phase II of the ERP system consisting of modules for
payroll, human relations, and group benefits.
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, 2008. 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 financial 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.
viii
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 the adjustment to the fair value of the
investments. Increases or decreases in fair value during the current year, however, do not necessarily
renrecent trends that will continue nor is it alwavc nnccihle to saliva cnrh amnnntc PcnPoinlilt in flip
The City's 2008 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. A
Certificate of Achievement is valid for a period of one year. We believe that the 2009 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.
The City has also received the award for Outstanding Achievement in Popular Annual Reporting for the
September 30, 2008 Popular Annual Financial Report. This award is given for those reports whose
contents conform to program standards of creativity, presentation, understandability and reader appeal.
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 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, McGladrey & Pullen, LLP partnering with Sanson, Kline, Jacomino &
Co., LLP for their cooperation and assistance. Lastly, we wish to express our appreciation to the City's
General Services Administration for the reproduction of this report.
Sinc
Ca sNMigo}a
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La . Spfing'Jr.
Chit Financial Ofcer
-
ix
Diana M.
Finance L
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, 2008
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
•teAort
Executive Director
City Commission
Chairman: M. Sarnoff
Vice -Chairman: F. Carollo
Commissioner. R. Dunn,11
Commissioner. W Gort
Commissioner: F. Suarez
City Clerk
Priscilla A. Thompson
{
Civil Service Board
Tishria Mindingall
Auditor General
Victor Igwe
City Attorney
Julie O. Bru
Miami Sports &
Exhibition Authority
Tim Schmand
Miami Parking
Authority
Arthur Noriega
Bayfront Park
Management Trust
Tim Schmand
Civilian
_ Investigative Panel
Carol Abia *
General Employees &
Sanitation Employees'
Retirement Trust
Sandra Elenberg
Community
Redevelopment
Agency
James Villacorta
Downtown
Development
Authority
Alyce Robertson
Fire Fighter's & Police
Officer's Retirement
Trust
Robert H. Nagle
Carlos A. Migoya
Chief Administrator / City Manager
Office of Film, Arts, Culture &
Entertainment
Cultural Administrator
Agenda Coordinator
International Affairs Administrator
Tomas P. Regaiado
Executive Mayor
Larry M. Spring
Chief Financial
Officer
Finance
Diana Gomez
Risk Management
LeeAnn Brehm
Purchasing
Glenn Marcos
Peter Korinis
Chief information
Officer
Information
Technology
Department
Johnny Martinez
Chief of Infrastructure
f CIP & Transportation
Vacant
Public Works
Vacant
Planning
Ana Gelabert
Building / Zoning
Orlando Toledo
GSA
Vacant
Tony Crapp, Jr.
Chief of Operations
Community
Development
George Mensah
Grants
— Administration
Dorcas Perez*
iParks & Recreation
Ernest Burkeen
Solid Waste
_{ Barbara Pruitt
Public Facilities
Madeline Valdes
` Miguel Exposito
jl Police Chief
J. Maurice Kemp
Fire Chief
Employee Relations
Michelle Pina
Strategic Planning,
Budgeting &
Performance
Larry M. Spring
Code Enforcement
Sergio Guadix
Communications
Mario Riquelme
NET
Haydee Wheeler
`ArNngAntenm
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FINANCIAL SECTION
INDEPENDENT AUDITOR'S 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
McGladrey&Pullen
Certified Public Accountants
Independent Auditor's Report
The Honorable Mayor, Members of the
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 year ended September 30, 2009, 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:
Component Units / Funds Classification
• Southeast Overtown Park West Redevelopment Agency
• Omni Redevelopment Agency
• Miami Midtown Community Redevelopment Agency
• the Gusman and Olympia Special Revenue Fund
• Virginia Key Beach Park Trust
• Liberty City Community Revitalization District Trusts
• Firefighters' and Police Officers' Retirement Trust
• General Employ+ 5' and Sanitation Employees' Retirement Trust
and Other Managed Trusts
• Miami Sports and Exhibition Authority
• Downtown Development Authority
• Bayfront Park
• Civil Investigative Panel
nonmajor special revenue fund
nonmajor special revenue fund
nonmajor special revenue fund
nonmajor special revenue fund
nonmajor special revenue fund
nonmajor special revenue fund
aggregate remaining fund information
aggregate remaining fund information
discretely presented component unit
discretely presented component unit
discretely presented component unit
discretely presented component unit
Those component units and funds represent the percentage of assets and revenues, where applicable, of the
respective opinion units, as listed below:
Reporting Classification
• Governmental Activities
• Aggregate Remaining Fund Information
• Discretely Presented Component Units
McGladrey & PWlen, LLP is a member firm of RSM international,
an affilatlon of separate and independent legal entities.
Percentage of,
Total Assets Total Revenues
4% 5%
91% 11%
15% 28%
Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our
opinions, insofar as it relates to the amounts included for the component units and funds indicated above, are based
on the reports of the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained . in Government Auditing Standards, issued by the
Comptroller General of the United States. 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 and the reports of other auditors
provide 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 govemmental activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of the City of
Miami, Florida, as of September 30, 2009, and the respective changes in financial position, thereof for the year then
ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Govemment Auditing Standards, we have also issued under separate cover our report dated
April 20, 2010 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 and other matters. The
purpose of that report is to describe the scope of our 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 Govemment
Auditing Standards and should be considered in assessing the results of our audit.
The management's discussion and analysis, the budgetary comparison information, and the schedule of funding
progress are not a required part of the basic financial statements but are supplementary information required by
accounting principles generally accepted in the United States of America. We and the other auditors 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, the combining and individual fund financial statements
and schedules, and the statistical section, are presented for purposes of additional analysis and are not a required
part of the basic financial statements. The combining and individual fund financial statements and schedules have
been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion,
based on our audit and the reports of other auditors, are fairly stated in all material respects in relation to the basic
financial statements taken as a whole. 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 on
them.
Miami -Dade County, Florida
April 20, 2010
2
1Zse.e‘f.d7
/A.e.e.e.e.,,e_/
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, 2009. 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 iii — x of this report.
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.
FINANCIAL HIGHLIGHTS
• The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $625,628,226.
• The governmental activities revenue decreased by $24,622,991 (or 3.37%) and the net results from
activities decreased by $55,570,710 (or 191.74%). In 2009 and 2008, the results of activities produced
a change in net assets of $(84,552,605) and $(28,981,895), respectively.
• The General Fund (the primary operating fund) reflected on a current financial resource basis, reflects a
decrease in fund balance of $53,604,861 or (57.28%).
• The City's total debt for bonds and loans had a net increase of $60,498,023 (or 11.36%) as of the close
of the current fiscal year. New debt in the amount of $108,490,000 was issued in the current fiscal
year.
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 is designed to be similar to bottom line results for the City and its
governmental activities. This statement reflects the governmental funds' current financial resources (short-
term spendable resources) with capital assets and long-term obligations. The primary government of the
City does not report 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.
Discreetly presented 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 reflect the City's basic services, including police, fire, solid waste collection,
parks and cultural activities, and general administration. Property taxes, other local taxes, and grants finance
the majority of these activities.
3
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's fund types:
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 financial
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, a reconciliation is
provided to facilitate the comparison between governmental funds and governmental activities.
The City maintains forty-one 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, Fire Rescue Services Special Revenue Fund, Emergency
Services Special Revenue Fund, and the Streets and Sidewalks Capital Projects Fund, which are considered
to be major funds. Data from the other thirty-seven governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these non -major 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 — 18 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 — 80 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 81 — 86 of this report.
The combining statements referred to earlier in connection with non -major governmental funds are
presented immediately following the required supplementary information. Combining and individual fund
statements and schedules can be found on pages 92 —130 of this report.
4
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 $625,628,226 at the close of the most recent fiscal year.
The largest portion of the City's net assets reflects its investment in capital assets (e.g. infrastructure, 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, 11.48%, represents resources that are subject to restrictions on
how they may be used.
The remaining unrestricted net assets deficit of $237,191,255 is primarily due to outstanding borrowings of
approximately $80.46 million for which there are no off -setting assets along with an increase in claims
payable, pension obligation, and the recognition of the City's Other Post Employment Benefits resulting
from the implementation of GASB Statement No. 45. The following schedule reflects a summary of net
assets compared to the prior year:
Summary of Net Assets as of September 30,
Governmental Activities
Current and other assets
Capital 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
2009
2008
$ 536,292,436
1,110,188,318
$ 574,502,615
1,058,764,539
1,646,480,754
1,633,267,154
157,179,124
863,673,404
158,620,281
764,466,042
1,020,852,528
923,086,323
791,005,790
71,813,691
(237,191,255)
773,959,639
150,737,724
(214,516,532)
$ 625,628,226
$ 710,180,831
5
The following table provides a summary of the City's changes in net assets for the fiscal years ended
September 30, 2009 and 2008.
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Franchise taxes
State revenue sharing - unrestricted
Sales and other use taxes
Public services tax
Investment earnings - unrestricted
Other
Total revenues
Expenses:
General government
Planning and development
Community development
Community redevelopment areas
Public works
Public safety
Public facilities
Parks and recreation
Interest on long-term debt
Total expenses
Change in net assets
Net assets - Beginning
Net assets - Ending
Changes in Net Assets
Governmental Activities
2009 2008
$ 132,126,563 $ 140,816,112
64,645,980 63,179,016
33,964,265 54,174,136
304,893,731
42,823,572
10,791,455
22,566,791
64,010,537
7,718,282
377,558
291,113,298
42,298,452
12,187,197
24,860,795
62,257,072
17,655,647
683,918,734 708,541,725
155,197,585
15,465,304
37,126,171
20,565,676
72,003,282
375,402,446
13,179,074
43,440,769
36,091,032
140.680,932
16,217,858
42,029,139
13,904,297
72,572,813
370,007,019
15,354,423
39,550,244
27,206,895
768,471,339 737,523,620
(84,552,605) (28,981,895)
710,180,831 739,162,726
$ 625,628,226 $ 710,180,831
Governmental Activities — As noted earlier, governmental activities decreased the City's net assets by
$84,552,605. The major changes are as follows:
The decrease in charges for services of $8.7 million is primarily the result of the decrease in revenue in the
current year relative to the prior year for building permits and inspections related to a decrease in major
construction projects.
The increase in operating grants and contributions of $1.5 million is primarily the result of increases in
funding received in the current year relative to the prior year related to the State Housing Improvement
Program (SHIP) and Department Improvement Initiatives grant programs.
The decrease in capital grants and contributions of $20.2 million is primarily due to a decrease of $12
million in Parks grant funding and a decrease in Storm Sewers grant funding.
Property tax revenues increased by 4.35% or approximately $13.8 million over the prior year and were
3.45% or $9.5 million under the anticipated budget. The City's operating millage rate was increased by
5.12% from 7.2999 mills to 7.6740 mills. The City decreased the overall millage rate since fiscal year 2000
by 19.2%; during fiscal year 2009 the City increased the overall rate by 5.8%.
State Revenue Sharing and Sales and other use taxes decrease by $3.6 million because the State of Florida
adjusted their contribution during the fiscal year by that amount.
6
Public Services Tax increased by approximately $1.7 million due to increase communication and utility
services usage throughout the State of Florida.
Investment income decreased approximately $10 million due to the Federal Reserve decreased the Federal
Fund interest rate from 1.00% to .25% or 75% during fiscal year 2009 and also the City having lower cash
balances throughout the year.
General Government expenses experienced an increase of $14.5 million from the prior year primarily as a
result of an increase in Special Obligation Bond payments of $4 million due to the scheduled amortization
of existing debt and related interest charges and an increase in Claims liability of $12 million.
Community Development expenses decreased by $4.9 million due to decrease in program income generated
from the Community Development Block Grant program which therefore was not available to spend in the
current year.
Community Redevelopment Agency expenses increased by $6.7 million as a result of expenses incurred for
new projects started during the current year in the respective redevelopment districts.
Public Safety experienced an increase of approximately $5.4 million from the prior year due primarily to
increases in overtime and supplemental pay for both Fire and Police.
Public Facilities experienced a decrease of $2.2 million in expenses from the prior year due primarily to the
closure of Coconut Grove Exhibition Center and the reduction of expenses related to maintenance at the
Orange Bowl Site.
Interest expense on long-term debt increased by $8.9 million as a result of new debt issuances during the
fiscal year in the amount of approximately $108 million.
Expenses and Program Revenues - Governmental Activities
400,000,000
350,000,000
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0
G1
E
u
Comm Redev
Public Works
®Expenses ®Revenues
Public Facilities
Parks & Rec
7
Capital
Grants &
Contributions
4.97%
REVENUE BY SOURCE — GOVERNMENTAL ACTIVITIES
Sales and State
Other Use Revenue
Taxes Sharing
3.30% 1.58%
Franchise
Taxes
6.26%
Property Taxes
44.58%
Public
Services
Taxes
9.36%
Investment
Earnings
1.13%
Other
0.06%
Charges for
Services
19.33%
Operating
Grants &
Contributions
9.45%
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, there is no
balance in the unreserved un-designated fund balance of the General Fund and $24,851,397 in the
unreserved designated fund balance, while the total fund balance was $39,972,587. 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 4.34% of the total
expenditures and transfers -out for recurring operational costs reported in other funds, while total fund
balance represents 6.97% of that same total amount.
The General Fund's fund balance had a net decrease of $53,604,861 during the current fiscal year. Key
factors in the overall decrease are as follows:
• Lower than anticipated collections from State Shared Revenue and Sales and Use Taxes.
• Reduction of $4.8 million in building permits and inspection due to major construction slowdown
• Decrease in interest revenues of $4.7 million as a result of current market conditions
• Expenditures in Risk Management related to litigated claims and workman's compensation medical
payments over the original allocated budget of approximately $11.4 million
• The Parks Department exceeded their budget allocation by $4.5 million due to the delivery of summer
programs and additional costs associated with new facilities that were brought online during the fiscal
year.
• The Public Safety Departments had $12 million of overtime and supplemental pay expenditures over the
original allocated budget.
• Contributions to the capital projects funds in the amount of $20.2 million to cover capital project
expenditures and $8.2 million to replenish Impact Fee eligible capital project accounts for which
previous general fund contributions had been removed.
8
Financial highlights of the City's other major governmental funds are as follows:
The Fire Rescue Services Fund had a negative fund balance of $7,772,670. This deficit fund balance is
primarily due to deferred revenues resulting from the timing of receiving grant related reimbursements for
the Urban Areas Security Initiatives (UASI) and Urban Search and Rescue (USAR) programs.
The Emergency Services Fund had a deficit fund balance of $14,896,430. This deficit fund balance is due
primarily due to deferred revenues resulting from the timing of receiving grant related reimbursements for
hurricane and emergency services related expenditures.
The Street and Sidewalks Capital Projects Fund had a fund balance of $55,705,940, of which $5,101,495 is
reserved for encumbrances. The $17,689,568 decrease in fund balance from the prior year can be attributed
to the spend down of debt on ongoing projects.
GENERAL FUND BUDGETARY HIGHLIGHTS
The General Fund budget increased by $48,464,288 from the original budget including transfers (an
increase of 9.23%). The major components of this increase can be summarized as follows (please see
budget to actual comparison on page 81):
• $5,827,535 decreased allocation to the General Government Departments.
• $14,249,273 increased allocation to the Fire -Rescue Department.
• $7,143,642 increased allocation to the Police Department.
• $4,491,925 increased allocation to the Parks and Recreation Department.
• $7,175,452 increased allocation to the Risk Management Department including Organizational
Support (Group Benefits).
• $2,068,540 decreased allocation to the Solid Waste Department.
• $28,371,536 increased allocation to Transfers Out
Substantial portions of the net increase in allocations were funded by either revenue in excess of the original
budget estimates or with the use of fund balance.
• The budget for the Fire and Police Departments were increased to provide additional allocations for
overtime and supplemental pays as well as to record the pass -through expenditure related to the Florida
Statutes, Chapters 175 and 185 non-contributory money purchase benefit plans for fire fighters and
police officers, respectively.
• The budget for the Parks and Recreation Department was increased to provide additional allocations to
cover delivery of the summer programs as well as to allow for costs associated with the opening of
several new parks facilities brought on-line during the current fiscal year.
• The budget for the Risk Management Depai tiuent was increased to provide additional amounts
necessary to cover outstanding litigated claims and to cover workman's compensation medical payments
over the original allocated budget
• The budget for the Solid Waste Department was decreased to reflect the actual expenditures incurred
during the year.
• The budget for Transfers Out was increased to allow for contributions to the capital projects funds in the
amount of $20.2 million to cover capital project expenditures and $8.2 million to replenish Impact Fee
eligible capital project accounts for which previous general fund contributions had been removed.
9
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At September 30, 2009, the City had a total of $1,110,188,318, net of accumulated depreciation, invested in
a variety of capital assets as reflected in the following schedule, which represents a net increase (additions
less retirements and depreciation) of $51,423,779 or 4.9% from the end of the prior year.
Capital Assets at Year End
(Net of Depreciation)
Land
Construction -in -Progress
Buildings
Improvements
Machinery and Equipment
Infrastructure
Total
Governmental
Activities
2009 2008
$ 88,330,219
24 7,027, 693
72,704,779
121,430, 472
63,433,862
517,261,293
$ 87,587,991
255,670,214
58,477,469
71,083,188
66,216 ,323
519,729,354
$ 1,110,188,318 $ 1,058,764,539
Major capital asset events during the current fiscal year included the following:
• Construction in progress decreased approximately $10 million due to completion of various projects
offset by current year expenditures on the ongoing Capital projects.
• The increase in Buildings and Infrastructure is due to the Completion of the Grapeland Commercial
Recreation Center, The Little Haiti Cultural Campus, The Bicentennial Shoreline Project, The Dinner
Key Dock and Sea Wall Projects and the City Street Resurfacing Project.
• Improvements increased by $50 million primarily due to various projects completed in the current year
that were transitioned out of Construction in Progress.
• Machinery and Equipment decreased by approximately $3 million as a result of the disposal of police
and solid waste vehicles.
Additional information on the City's capital assets can be found in Note 1 on page 33 and Note 5 on page
47 in the notes to the financial statements.
Long -Term Debt
At the end of the current fiscal year, the City had total debt outstanding of $565,169,047. Of this amount,
$36,860,000 is backed by the full faith and credit of the City and $239,253,503 is backed the Limited Ad
Valorem Tax Revenue; 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
Revenue Bonds and Loans
Total
Governmental Activities
2009 2008
$ 276,113,503 $ 235,393,765
289,055,544 316,177,214
$ 565,169,047 $ 551,570,979
10
The City's total debt had a net increase of $58,771,934 (or 2.465%) during the current fiscal year. The City
issued new debt in the amount of $108,490,000 during the current fiscal year.
The City maintained its bond rating on its general obligation debt of A+ from Standard & Poor's, an A2
from Moody's, and an A- from Fitch Ratings.
Additional information on the City's long-term liabilities can be found in Note 8 on 54-61 in the notes to
the financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
The budget process begins with the preparation of the financial outlook; a comprehensive review of
allocation needs that are expected to be required by the City for its operations. These allocations include a
review of salaries and wages (growth as dictated by negotiated union contracts); pension requirement needs,
anticipated insurance premium increases, etc. These allocation needs are then compared to the City's
anticipated revenue inflows to determine whether these needs can be satisfied. It is with this analysis, along
with the Mayor and City Commissioners' feedback, and the City's comprehensive strategic plan, that the
guidelines for preparing the budget toolkit are determined and compiled into an all-inclusive instructional
booklet that is then distributed to departments for their use in preparing their budget submissions. The
City's elected and appointed officials considered many factors when adopting the fiscal year 2009 budget.
Included among these factors were uncertainties regarding pension costs, health insurance costs, other post
employment benefit costs, and various other economic indicators.
The City of Miami, like many municipalities throughout the State, is experiencing the impact of a slowing
economy. Recently approved property tax legislation, rising fuel prices, and increases in utility costs
continue to impact every resident and business in the City. Recently approved State legislation along with a
constitutional amendment passed by Florida voters, lowered the City's taxable values while establishing
controls on its millage rate (discussed below). This legislation and amendment was also a clear indication
by the people of the State of Florida that not enough was done in the previous year to provide property
owners with tax relief.
In fiscal year 2009, the City adopted its operating millage rate at 7.6740 mills with a two-thirds vote and is
anticipated to collect $276.4 million in property tax revenues. The millage rate recommended in the fiscal
year 2009 budget required City officials to fully understand the impact property taxes were having on
Miami residents and to become more creative in managing government.
The economic downturn has not only affected property tax values. Per the U.S. Department of Labor, the
unemployment rate for South Florida is currently 11.2%, which is an increase of 83.61% from the prior
year. This rate is lower than the State's average unemployment rate of 12.2% and higher than the national
average rate of 9.7%. The region's inflation rate of 0.9% is significantly higher than the national indices of -
0.2%.
All of these factors indicate that local economic conditions are not expected to be as favorable for fiscal
year 2009 as compared to previous years. The continuing economic downturn further adds to the concern
and uncertainty as to the overall revenue impact on local governments.
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 Director
of the City of Miami's Finance Department, 444 Southwest 2nd Avenue, Suite 618, Miami, Florida 33130,
or visit the City's web site at www.miamigov.com.
11
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12
City of Miami, Florida
Statement of Net Assets
September 30, 2009
Assets
Cash, Cash Equivalents, and Investments
Receivables - Net
Accrued Interest
Due from Other Governments
Prepaids
Other Assets
Cash, Cash Equivalents, and Investments
Related to Bond Proceeds
Restricted Cash, Cash Equivalents, and Investments
Capital Assets:
Non -Depreciable
Depreciable - Net
Deferred Charges
Total Assets
Liabilities
Accounts Payable and Accrued Liabilities
Due to Other Governments
Unearned Revenue
Deposits
Accrued Interest Payable
Non -Current Liabilities
Due Within One Year:
Bonds and Loans Payable
Compensated Absences
Claims Payable
Due In More Than One Year:
Bonds and Loans Payable
Compensated Absences
Claims Payable
Other Post Employment Benefits
Net Pension Obligation
Total Liabilities
Net Assets
Invested in Capital Assets - Net of Related Debt
Restricted for:
Capital Projects
Debt Service
Law Enforcement
Community Redevelopment
Choice Housing Voucher Program
E-911
Unrestricted (Deficit)
Total Net Assets
The accompanying notes are an integral part of the financial statements.
Governmental
Activities
$ 253,248,437
40,599,525
895,078
46,024,428
2,421,978
17,692
156,812,730
23,659,184
335,357,912
774,830,406
12,613,384
1,646,480,754
62,074,796
4,072,736
32,599,233
5,352,078
5,392,153
26,901,540
5,126,671
17,659,917
583,441,372
82,941,806
137,455,257
53,543,609
4,291,360
1,020,852,528
791,005,790
12,942,763
3,495,960
47,410,790
338,522
7,625,656
(237,191,255)
$ 625,628,226
Component
Units
$ 23,338,225
539,127
14,405
134,648
358,560
1,617,461
4,644,348
55,658,469
24,193,994
110,499,237
6,452,519
2,998,444
553,763
159,160
1,009,235
985,000
49,103,854
316,646
61,578,621
32,646,923
107,463
408,048
15,758,182
$ 48,920,616
13
City of Miami, Florida
Statement of Activities
For the Year Ended September 30, 2009
Net (Expenses) Revenue and Changes
Program Revenues in Net Assets
Operating Capital Primary Government
Functions/Programs Activities: Charges for Grants and Grants and Governmental Component
Primary Government: Expenses Services Contributions Contributions Activities Units
Governmental Activities:
General Government $ 155,197,585 $ 35,586,957 $ 4,095,527 $ 21,836,022 $ (93,679,079) $
Planning and Development 15,465,304 9,611,336 775,981 - (5,077,987)
Community Development 37,126,171 - 34,050,222 - (3,075,949)
Community Redevelopment Areas 20,565,676 1,064,942 9,137,450 - (10,363,284)
Public Works 72,003,282 47,792,238 164,527 - (24,046,517)
Public Safety 375,402,446 17,785,328 15,406,532 3,872,646 (338,337,940)
Public Facilities 13,179,074 15,458,604 813,351 4,480,036 7,572,917
Parks and Recreation 43,440,769 4,827,158 202,390 3,775,561 (34,635,660)
Interest on Long -Term Debt 36,091,032 - - - (36,091,032)
Total primary government $ 768,471,339 $ 132,126,563 $ 64,645,980 $ 33,964,265 (537,734,531)
Component Units:
Miami Sports Exhibition Authority $ 9,288,001 $ - $ $ (9,288,001)
Department of Off -Street Parking 21,650,144 22,379,166 - 729,022
Downtown Development Authority 5,179,745 - - - - (5,179,745)
Bayfront Park 3,413,036 3,541,638 - 128,602
Coconut Grove BID 971,530 820,561 - (150,969)
Civilian Investagative Panel 869,205 - 928,000 58,795
Total component units $ 41,371,661 $ 26,741,365 $ 928,000 $ (13,702,296)
General Revenues:
Taxes:
Property Taxes, levied for general purposes 283,516,182 4,526,332
Property Taxes, levied for debt service 21,377,549
Franchise Taxes 42,823,572 -
State Revenue Sharing - Unrestricted 10,791,455
Sales and Other Use Taxes 22,566,791
Public Service Taxes 64,010,537
Investment Earnings - Unrestricted 7,718,282 878,952
Other 377,558 597,445
Total General Revenues 453,181,926 6,002,729
Change in Net Assets (84,552,605) (7,699,567)
Net assets - Beginning 710,180,831 56,620,183
Net assets - Ending $ 625,628,226 $ 48,920,616
The accompanying notes are an integral part of the financial statements.
14
City of Miami, Florida
Balance Sheet
Governmental Funds
September 30, 2009
Major Funds Other
Non -Major Total
Fire Rescue Emergency General Street & Governmental Governmental
General Services Services Government Sidewalks Funds Funds
Assets
Cash, Cash Equivalents and Investments $ 30,301,170 $ - $ 1,710,639 $ 107,525,910 $ 66,581,873 $ 203,941,575 $ 410,061,167
Restricted Cash, Cash Equivalents, and Investments - - - - 23,659,184 23,659,184
Receivables
(Net of Allowances for Uncollectibles):
Accounts 14,608,401 184 7,187 4,553,619 19,169,391
Taxes 19,873,780 - 1,556,354 21,430,134
Due from Other Funds 28,476,194 - - 28,476,194
Due from Other Governments 1,828,489 10,162,792 7,895,085 - 3,888,891 22,249,171 46,024,428
Accrued Interest 176,416 329 93,193 277,786 347,354 895,078
Prepaids 2,421,978 - - - 2,421,978
Other Assets - 17,692 17,692
Total Assets $ 97,686,428 $ 10,163,305 $ 9,612,911 $ 107,619,103 $ 70,748,550 $ 256,324,949 $ 552,155,246
Liabilities and Fund Balances
Liabilities:
Accounts Payable and Accrued Liabilities $ 30,019,683 $ 1,531,667 $ 720,369 $ 1,263,634 $ 10,977,719 $ 17,561,724 $ 62,074,796
Due to Other Funds 6,487,380 14,183,248 7,805,566 28,476,194
Due to Other Governments 2,301,552 - 1,771,184 4,072,736
Deferred Revenue or Unearned Revenues 20,475,308 9,916,928 9,605,724 10,908 4,064,891 31,381,909 75,455,668
Deposits 4,917,298 - - - 434,780 5,352,078
Total Liabilities 57,713,841 17,935,975 24,509,341 1,274,542 15,042,610 58,955,163 175,431 472
Fund Balances (Deficit):
Reserved for:
Encumbrances 627,754 88,756 2,369,251 5,101,495 29,230,413 37,417,669
Debt Service - - - 15,824,235 15,824,235
Prepaid Items 2,421,978 - - 2,421,978
Long-term Due from Other Funds 12,699,212 - - 12,699,212
Unreserved, Designated for
Subsequent Year's Expenditures, Reported in:
General Fund 5,000,000 - - 5,000,000
Future Settlements - - 3,785,601 3,785,601
Strategic Initiatives 1,648,710 - 1,648,710
Management Initiatives 18,202,687 - 18,202,687
Unreserved, Undesignated Reported in:
Special Revenue Funds - (8,400,424) (14,985,186) - 86,272,197 62,886,587
Capital Projects Funds - - - 103,975,310 50,604,445 62,257,340 216,837,095
Total Fund Balances (Deficit) 39,972,587 (7,772,670) (14,896,430) 106,344,561 55,705,940 197,369,786 376,723,774
Total Liabilities and Fund Balances (Deficit) $ 97,686,428 $ 10,163,305 $ 9,612,911 $ 107,619,103 $ 70,748,550 $ 256,324,949 $ 552,155,246
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, 2009
Fund Balances - Total Governmental Funds (Page 17) $ 376,723,774
Amounts reported for governmental activities in the Statement of
Net Assets are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the governmental funds.
Governmental Capital Assets $ 1,959,205,799
Less: Accumulated Depreciation (849,017,481) 1,110,188,318
Grant revenues are reported as deferred revenue in the fund financial
statements due to availability of funds; under full accrual accounting
they are reported as revenues. 31,234,596
Tax revenues are reported as deferred revenue in the fund financial
statements due to availability of funds; under full accrual accounting
they are reported as revenues. 11,621,839
Unamortized bond and loan issuance costs are not available to pay for
current period expenditures and therefore are not reported in
the governmental funds. 12,613,384
Long-term liabilities are not due and payable in the current period
and therefore are not reported in the governmental funds.
Bonds, Notes, and Loans Payable
Compensated Absences
Claims Liability
Other Post Employment Benefit
Net Pension Obligation
Accrued Interest Payable
(610,342,912)
(88,068,477)
(155,115,174)
(53,543,609)
(4,291,360)
(5,392,153)
(91 6,753,685)
Net Assets of Governmental Activities (Page 14) $ 625,628,226
The accompanying notes are an integral part of the financial statements.
16
Revenues
Property Taxes
Franchise 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
Risk Management
Pensions
Group Benefits
Debt Service:
Principal
Interest and Other Charges
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Proceeds Received From Long -Term Debt
Payment To Escrow Agent For Refunding
Premium (Discount) on Long -Term Debt
Total Other Financing Sources (Uses)
Net Changes in Fund Balances
Fund Balances (Deficit) - Beginning
Fund Balances (Deficit) - Ending
City of Miami, Florida
Statement of Revenues, Expenditures and Changes In Fund Balances (Deficit)
Governmental Funds
For The Year Ended September 30, 2009
Major Funds
General
$ 266,860,263
36,228,332
26,032,481
6,396,471
47,233,928
76,508,093
4,064,924
8,196,844
471,521,336
Fire Rescue
Services
$ - $
9,076,074
2,362
2,431
31,282
9,112,149
Emergency
Services
1,843,601
1,843,601
General Street &
Government Sidewalks
130,084 4,958,738
670,517 1,121,303
332,175 -
135,332 44
1,268.108 6,080,085
Other
Non -Major
Governmental
Funds
$ 38,033,468
70,605,777
72,730
1,044,949
78,011,833
9,416,180
1,859,107
2,393,575
201,437,619
56,699,386
10,843,924
54,938,534
249,478,070 9,186,706
5,003,138
28,300,738
13,107,068
66,906,558
41,314,516
697,489
1,733,308
7,439,553
315,441
8,881,987 30,618,733
14,433,792
505,646
36,413,108
20,144,229
234,337
5,886,753
6,657,272
4,910,264
23,566,021
31,928,202
66,664,692
526,591,932 9,884,195
(55,070,596) (772,046)
47,785,001 128,983
(46,319,266) (3,700)
Total
Governmental
Funds
$ 304,893,731
106, 834,109
26,105,211
7,441,420
141,254,258
85,926,635
7,718,282
332,175
10,757,077
691,262,898
78,888,172
11,349,570
36,413,108
20,144,229
55,172,871
266,284,837
11,660,410
33,211,002
13,107,068
66,906,558
41,314,516
23,566,021
31,928,202
106,862,901
1,733,308 16,321,540 30,934,174 211,344,316 796,809,465
110.293 (15,053,432) (24,854,089) (9,906,697) (105,546,567)
38,854,502
(30,459,280)
70,564,145
11,694,994 97,635,095 196,098,575
(4,530,473) (114,785,856) (196,098,575)
37,925,855 108,490,000
(32,366,235) (32,366,235)
(793,980) (793,980)
1,465,735
(53,604,861)
93,577,448
$ 39,972,587
125,283
(646,763)
(7,125,907)
$ (7,772,670)
The accompanying notes are an integral part of the financial statements.
78,959,367 7,164,521
110,293 63,905,935 (17,689,568)
(15,006,723) 42,438,626 73,395,508
$ (14,896,430) $ 106,344,561 $ 55,705,940
(12,385,121) 75,329,785
(22,291,818) (30,216,782)
219,661,604 406,940,556
$ 197,369,786 $ 376,723,774
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, 2009
Net Changes in Fund Balances - Total Governmental Funds (Page 17) $ (30,216,782)
Amounts reported for governmental activities in the Statement of Activities are different because:
Grant revenues are reported as deferred revenue in the fund financial statements due to availability
of funds; under full accrual accounting they are reported as revenues. 14,376,170
Revenues in the statement of activities for the previous year provided current financial resources and,
as such, are reported as revenues in the funds for the current year. (21,720,335)
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities
the cost of these assets is depreciated over their estimated useful lives.
Expenditures for Capital Assets $ 111,500,021
Less: Current Year Depreciation (54,765,311)
56,734,710
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins,
donations) that decrease net assets. (5,310,930)
Repayment of bond, loan, and capital lease principal is an expenditure in the governmental funds, but
the repayment reduces long-term 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.
Principal Paid on Bonds and Loans
Net effect of Deferring and Amortizing Issuance Costs, Premiums, Discounts, and Accretion
Proceeds from Long -Term Debt
Some items reported in the Statement of Activities do not require the use of curent financial
resources and therefore are not reported as expenditures in governmental funds.
Compensated Absences
Claims Liability
Other Post Employment Benefits
Net Pension Obligation
Accrued Interest Payable
50,856,021
3,149,532
(108,490,000) (54,484,447)
(3,589,211)
(12,523,004)
(26,350,872)
(25,757)
(1,442,147)
(43,930,991)
Change in Net Assets of Governmental Activities (Page 14) $ (84,552,605)
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, 2009
Employee
Retirement
Funds
Assets
Cash and Short -Term Investments $ 48,424,925
Accounts Receivable 14,045,806
Capital Assets 4,600,240
Prepaid Assets 39,596
67,110,567
Investments
U.S. Government Obligations 218,878,469
Corporate Bonds 300,610,781
Corporate Stocks 1,002,642,329
Money Market Funds and Commercial Paper 27,733,615
International Equity 72,968,950
Mutual Funds 62,210,518
Real Estate 114,030,005
Private Equity 23,027,115
Total Investments 1,822,101,782
Securities Lending Collateral 167,115,414
Total Assets 2,056,327,763
Liabilities
Obligations Under Security Lending 169,704,246
Accounts Payable 1,072,794
Accrued Liabilities 62,210,518
Payable for Securities Purchased 12,700,930
Total Liabilities 245,688,488
Net Assets
Held in Trust for Pension Benefits $ 1,810,639,275
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, 2009
Employee
Retirement
Funds
Additions
Contributions:
Employer $ 61,221,973
Plan Members 21,635,841
Total Contributions 82,857,814
Investment Earnings (Loss):
Net Increase (Decrease) in Fair
Value of Investments (63,305,008)
Interest 32,076,681
Dividends 15,534,413
Other 1,910,889
Total Investment Loss (13,783,025)
Less Investment Expenses 6,413,666
Net Investment Loss (20,196,691)
Reimbursement Income from City 2,940,931
Total 65,602,054
Deductions
Pension Benefits 139,859,846
Refunds upon Resignation, Death, etc. 1,209,695
Distribution to Retirees 16,925,422
Administrative and Other Expenses 3,036,878
Total 161,031,841
Change in Net Assets (95,429,787)
Net Assets - Beginning of Year 1,906,069,062
Net Assets - End of Year $ 1,810,639,275
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, 2009
Miami Sports Department Downtown Coconut Civilian
and Exhibition of Off -Street Development Bayfront Grove Investigative
Authority Parking Authority Park BID Panel
Total
Assets
Cash, Cash Equivalents and Investments $ 1,307,344 $ 7,526,364 $ 4,989,530 $ 5,073,522 $ 4,307,662 $ 133,803 $ 23,338,225
Receivables (Net)
Accounts 340,715 - 60,450 52,351 453,5I6
Taxes - 85,611 - 85,611
Accrued Interest 14,405 - 14,405
Due From Other Government 134,648 - 134,648
Prepaids 7,363 228,889 110,130 12,178 358,560
Other Assets 1,617,461 - 1,617,461
Restricted Assets:
Cash, Cash Equivalents, and Investments 4,644,348 4,644,348
Capital Assets:
Non -Depreciable 54,581,217 - 1,077,252 55,658,469
Depreciable, Net 20,220,294 179,238 3,794,462 24,193,994
Total Assets 1,314,707 89,308,341 5,364,509 10,017,864 4,360,013 133,803 110,499,237
Liabilities
Accounts Payable and Accrued Liabilities 5,491,641 730,896 51,345 122,631 56,006 6,452,519
Due to Other Govemments 2,966,702 31,742 - - 2,998,444
Unearned Revenue 387,406 - 166,357 - 553,763
Deposits 145,225 13,935 - 159,160
Accrued Interest Payable 1,009,235 1,009,235
Non -Current Liabilities
Due Within One Year:
Bonds and Loans Payable 985,000 - 985,000
Compensated Absences - - -
Due In More Than One Year:
Bonds and Loans Payable 49,103,854 - - 49,103,854
Compensated Absences 233,804 82,842 316,646
Total Liabilities - 60,322,867 845,480 231,637 122,631 56,006 61,578,621
Net Assets
Invested in Capital Assets, Net of Related Debt 27,191,412 179,238 4,871,714 404,559 32,646,923
Restricted for:
Debt Service - 408,048 - 408,048
Capital Projects 107,463 - - 107,463
Unrestricted 1,207,244 1,386,014 4,339,791 4,914,513 3,832,823 77,797 15,758,182
Total Net Assets $ 1,314,707 $ 28,985,474 $ 4,519,029 $ 9,786,227 $ 4,237,382 $ 77,797 $ 48,920,616
The accompanying notes are an integral part of the financial statements.
21
City of Miami, Florida
Statement of Activities
Discretely Presented Component Units
For the Year Ended September 30, 2009
Expenses
Program Revenues
Operating
Charges for Grants and
Services Contributions
Miami Sports
Exhibition Authority
Culture and Recreation $ 9,288,001 $ $
Total Miami Sports Exhibition Authority 9,288,001
Department
of Off -Street Parking
Transportation 21,650,144 22,379,166
Total Department of Off -Street Parking 21,650,144 22,379,166
Downtown
Development Authority
Economic Development
Total Downtown Development Authority
Bayfront Park
Parks and Recreation
Total Bayfront Park
Coconut Grove BID
General Government
Total Coconut Grove BID
5,179,745
5,179,745
3,413,036 3,541,638
3,413,036 3,541,638
971,530 820,561
971,530 820,561
Civilian Investigative Panel
General Government 869,205 928,000
Total Civilian Investigative Panel 869,205 - 928,000
Total Component Units
$ 41,371,661 $ 26,741,365 $ 928,000
General Revenues:
Taxes:
Property Taxes, levied for general purpose:
Investment Earnings
Other
Total General Revenues
Chance in Net Assets
Net assets - Beginning
Net assets - Ending
The accompanying notes are an integral part of the financial statements.
22
Net (Expense) Revenue and
Changes in Net Assets
Miami Sports Department Downtown Coconut Civilian
and Exhibition of Off -Street Development Bayfront Grove Investigative
Authority Parking Authority Park BID Panel
$ (9,288,001) $
(9,288,001) -
Totals
$ $ $ $ (9.288,001)
(9,288,001)
729.022 729,022
729,022 729,022
(5,179, 745) (5,179,745)
(5,179,745) (5,179,745)
128,602 128,602
128,602 128,602
(150,969) (150,969)
(150,969) (150,969)
58,795 58,795
58,795 58,795
$ (9,288,001) $ 729,022 $ (5,179,745) $ 128,602 $ (150,969) $ 58,795 (13,702,296)
28,598
4,526,332
410,513 83,500
519 104,690
28,598 411,032
27,610 328,731
292,236 200,000
4,714,522 319,846
4,526,332
878,952
597,445
528,731 6,002,729
(9,259,403) 1,140,054 (465,223) 448,448 377,762 58,795 (7,699,567)
10,574,110 27,845,420 4,984,252 9,337,779 3,859,620 19,002 56,620,183
$ 1,314,707 $ 28,985,474 $ 4,519,029 $ 9,786,227 $ 4,237,382 $ 77,797 $ 48,920,616
23
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24
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 1. — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the City of Miami, Florida (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. Reporting Entity
The City, which is located in the county of Miami -Dade, was incorporated in 1896, and has a population
of over 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's 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 "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 City's 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 and GASB Statement No. 39 -
Determining Whether Certain Organizations Are Component Units 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.
25
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Based upon the application of the criteria in GASB Statements No. 14 and 39, 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 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 year ended September 30,
2009.
Blended Component Units
SOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY ("SEOPW")-SEOPW is an
Agency established by the City in 1983 under the authority of Section 163.330, Florida Statutes and City
Resolution No. 82-755. The purpose of the Agency is to eliminate blight and slum conditions within the
redevelopment area of the agency pursuant to the redevelopment plans of the Agency for new residential
and commercial activity of the Southeast Overtown Park West area. 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 also the Board of Directors of the
SEOPW. The City has issued debt for the 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 Section 163.330, Florida Statutes and City Resolution No. 86-868. The purpose of
the Agency is to eliminate blight and slum conditions within the redevelopment area of the agency
pursuant to the redevelopment plans of the Agency for new residential and commercial activity of the
Omni area. 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. The
ORA is included within the reporting entity as a special revenue fund (Omni CRA).
MIDTOWN REDEVELOPMENT AGENCY ("MRA")-MRA is an Agency established by the City in
2005 under the provisions of Section 163.330, Florida Statutes and City Resolution No. 05-002. The
purpose of the Agency is to eliminate blight and slum conditions within the redevelopment area of the
agency pursuant to the redevelopment plans of the Agency for new residential and commercial activity of
the Midtown area. The MRA entered into an interlocal agreement with the City, Miami -Dade County,
and the Midtown Community Development District whereby tax increments would be deposited into the
Redevelopment Trust Fund. The members of the City Commission are the Board of Directors of the
MRA. The City is also responsible under the interlocal agreement for disbursement, accountability,
management, and proper application of all monies paid into the Trust. The MRA is included within the
reporting entity as a special revenue fund (Midtown CRA).
26
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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 VKBPT 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. The
City considers itself the exclusive recipient of the services provided by VKBPT and therefore its
operations are blended in the reporting entity as a special revenue fund.
LIBERTY CITY COMMUNITY REVITALIZATION DISTRICT TRUST ("Liberty City") — On July
10, 2001, via section 2-892 of Chapter 2 of the Code of the City of Miami ordinance 12082, Liberty City
was established and acts as a limited agency and instrumentality of the City and provides services
entirely or almost entirely to the primary government. Liberty City, in cooperation with the Department
of Community Development and other City departments, is responsible for oversight and facilitating the
City's revitalization efforts for the redevelopment of the Liberty 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. Liberty City's specific purpose is to purchase land and renovate
capital assets that belong to the City of Miami. The City Commission must approve Liberty City's board
membership and operating budget. The City considers itself the exclusive recipient of the services
provided by Liberty City and therefore its operations are blended in the reporting entity as a special
revenue fund.
NEIGHBORHOOD IMPROVEMENT DISTRICTS — There are four neighborhood improvement
districts. All four districts were inactive during fiscal year 2009.
Discretely Presented Component Units
MIAMI SPORTS AND EXHIBITION AUTHORITY ("MSEA") — The MSEA was created by the City
in 1983 pursuant to Chapter 212.0305, Florida Statutes and City Ordinance No. 9662 adopted by the City
Commission (as amended by City Ordinance No. 11155) and Section 213.0305 of the Florida Statutes to
promote the development of sports, convention and exhibition facilities within the City, and attracting
professional sports franchises and exhibitions to utilize the City's and/or Authorities' facilities. 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.
DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI, FLORIDA, d/b/a MIAMI
PARKING AUTHORITY ("DOSP") — The DOSP was originally created in 1955 by a special act of the
Florida State Legislature (Laws of Florida Chapter 30.997, as amended) and subsequently incorporated
into the City's Charter in 1968. The DOSP is an agency and instrumentality of the City which owns and
operates parking facilities within the City. The City Commission has reserved the right to confirm new
members of the DOSP Board, to establish and fix rates and charges for parking services, to approve the
DOSP's operating budget and to authorize the issuance of revenue bonds. Therefore, the City is
financially accountable and is discretely presenting the DOSP in the accompanying financial statements.
27
CITY OF MIAMI, FLORIDA
NOTES TO 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. The 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 by promoting economic growth in the region and
strengthening downtown's appeal as a livable city as well as a regional, national and international center
for commerce and culture. 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.
BAYFRONT PARK MANAGEMENT TRUST ("BFP") —The BFP was established by the City in 1987
under the authority of City of Miami Resolution No. 10348. The BFP was created for the purpose of
managing and 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 the 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. The BFP has appointed an executive director to
act as the chief executive officer, subject to policy directives. The 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 the BFP in the accompanying financial
statements.
HEALTH FACILITY AUTHORITY ("HFA") — 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 the HFA's board membership and operating
budget. Therefore, the City is financially accountable and is discretely presenting the 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 $149,355,000 at September 30, 2009. The HFA does not issue
stand-alone audited financial statements. The only activity during the fiscal year was to service the debt
outstanding. The debt service payments were made by Mercy Hospital and Miami Jewish Home.
The City of Miami Health Facilities Authority conduit debt outstanding as of September 30, 2009 is as
follows:
Miami
Mercy Hospital Jewish Home
Total
Series 1998A $ 11,725,000 $ - $ 11,725,000
Series 2002 35,000,000 35,000,000
Series 2003 14,605,000 14,605,000
Series 2008 35,195,000 35,195,000
Series 2009 29,870,000 - 29,870,000
Series 2005 - 22,960,000 22,960,000
Total $ 126,395,000 $ 22,960,000 $ 149,355,000
28
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Proceeds from these bond issues were used to finance construction of buildings and parking facilities;
land acquisitions; equipment purchases including beds and other medical apparatus; renovation of
existing facilities; and engineering costs.
CIVILIAN INVESTIGATIVE PANEL ("CIP") — The CIP was established by the City of Miami
Commission Ordinance Number 12188 on February 14, 2002 for the purpose of creating an independent
citizen's oversight panel to conduct investigations related to allegations of police misconduct, review
polices, practices and procedures of the police depar intent and perform community outreach programs.
The CIP consists of thirteen members who were originally appointed as follows: a) the Miami City
Commission selects and appoints nine members, b) the Mayor selects three members whose names are
ratified and appointed by the City Commission, and c) the Chief of Police of the City of Miami appoints
one member, who serves at the will of the Chief of Police. The CIP prepares and submits an annual
budget request to the City Commission for its approval for each fiscal year and is funded by the City of
Miami. Therefore, the City is financially accountable and is discretely presenting the CIP in the
accompanying financial statements.
COCONUT GROVE BUSINESS IMPROVEMENT DISTRICT ("BID") — In July 2004, pursuant to
Resolution No. 12564, the City of Miami approved the establishment of the Coconut Grove Business
Improvement Committee ("BIC"). The BIC was formed as an advisory committee to the City. During
November 2008, the City tabulated the results of a special election for the creation of the Coconut Grove
Business Improvement District ("BID"), where the BID was deemed to be approved a majority of the
affected property owners. During March 2009, under City Ordinance No. 13059, the City approved to
repeal the BIC and establish a new Coconut Grove Business Improvement District Board ("BID Board")
to stabilize and improve retail and other businesses in the BID area through promotion, management,
marketing and other similar services, including, but not limited to, coordination, funding and
implementation and maintenance of all infrastructure improvement, and other projects, utilizing BID
assessment proceeds and other funds identified. The BID 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 the BID in the accompanying financial statements.
Complete financial information of the individual component units may be obtained at the entity's
respective administrative offices as follows:
SEOPW / ORA/ MRA
49 NW 5th Street, Suite 100
Miami, Florida 33128-1811
VKBPT
4020 Virginia Beach Drive
Miami, Florida 33149
Liberty City
4800 NW 12th Avenue
Miami, Florida 33127-2218
MSEA
301 N. Biscayne Blvd.
Miami, Florida 33132-2226
DDA
200 South Biscayne Blvd.
Suite 2929
Miami, Florida 33131
DOSP
90 SW 1st Street
Miami, Florida 33130-1602
BFP
301 N. Biscayne Blvd.
Miami, Florida 33132-2226
CIP
155 South Miami Ave
Penthouse 1-B
Miami, FL 33130-1609
BID
3390 Mary Street, Suite 130
Coconut Grove, FL 33133
29
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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 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 is 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 that are not deemed to be
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 non -major 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 used to account for assets held by the City in a trustee capacity.
Since the governmental fund statements are presented on a different 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 accounted for
in this fund. General operating expenditures, fixed charges, and capital improvement costs not paid
through other funds are paid from this fund.
Fire Rescue Services — This Special Revenue Fund accounts for the grant revenues and expenditures
which supplement the City's emergency Fire Rescue operations.
Emergency Services Fund — This Special Revenue Fund accounts for grants and FEMA reimbursements
related to disasters. Additionally, this fund accounts for non -disaster related reimbursable expenditures.
30
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
General Government — This Capital Project Fund accounts for expenditures for capital expenditures
made for general government operations.
Streets and Sidewalks — This Capital Project Fund accounts for capital expenditures made for streets,
sidewalks, and other traffic -related projects.
Additionally, the City reports the following fiduciary fund type:
Pension Trust Funds - The pension trust funds account for 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 Other Managed Trusts (Members, Excess Plan and Staff Plan), and the
Elected Officers' Retirement Trust ("EORT"). The pension trust funds accumulate resources for pension
benefit payments.
D. Measurement Focus and the 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.
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, pensions,
pollution remediation obligations and other post employment benefits are recorded only when payment is
due or when City has made a decision to fund these obligations with current available resources.
Property taxes, when levied for, intergovernmental revenue, when eligibility requirements are met, sales
tax, franchise and utility taxes, licenses, charges for services, 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 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.
31
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
E. Assets, Liabilities, and Net Assets or Equity
Deposits and Investments
The City has defined "cash, cash equivalents and investments" to include cash on hand, demand deposits,
money market funds, debt securities, 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. In addition, the City considers all highly liquid
investments with a maturity of three months or less when purchased, to be a cash equivalent.
All investments, including those of the Pension Trust Funds, are stated at fair value, using quoted market
price or the best available estimate thereof. Investments that have a maturity of one year or less at the
time of purchase are reported at amortized cost. Alternative investments which include private equity,
private debt, venture capital and equity real estate investments where no readily ascertainable market
value exists, management, in consultation with the general partner and investment advisors, has
determined the fair values for the individual investments based upon the partnership's most recent
available financial information.
Interfund Receivables and Payables
Activity between funds that is representative of lending/borrowing arrangements outstanding at the end
of the fiscal year is referred to as "due to/from other funds".
Receivables
Receivables include amounts due from other governments and others for services provided by the City
and are recorded when the related revenue is earned. Allowances for uncollectible receivables are based
upon historical trends and the periodic aging of receivables. The City fully reserves for all receivables
greater than 60 days with the exception of grant receivables and other accounts that are in the collection
process.
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 governmental funds or government -wide financial
statements of the City. Purchases of inventoriable items are recorded as expenditures/expense at the time
of purchase and year-end balances are not material.
Restricted Assets
Certain proceeds from bonds, loans and deposits, as well as resources for debt service payments, are
classified as restricted assets because their use is limited by applicable bond indentures, contracts, and
agreements.
32
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure (e.g. roads, sidewalks,
drainage, and similar items), are reported in the governmental activities column in the government -wide
financial statements and fiduciary fund financial statements. Capital assets are defined by the City as
assets with an initial cost of $1,000 or more and an estimated useful life in excess of one year. Such
assets are recorded at 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 estimated useful lives:
Asset Years
Buildings 20 - 50
Improvements other than buildings 10 - 30
Machinery and equipment 3 - 15
Vehicles (including heavy equipment) 3 - 10
Infrastructure 15 - 75
In the governmental funds, capital assets are recorded as expenditures and no depreciation expense is
recorded.
Deferred Charges
Deferred charges in the government -wide financial statements represent the unamortized portion of the
cost incurred for the issuance of long-term debt and the difference between the reacquisition price and the
net carrying amount of the old debt, relating to current and advance refunding resulting in the defeasance
of debt. These costs are being amortized over the term of the respective bond issue or the shorter of the
amortization period remaining from the prior refunding or the life of the latest refunding debt. The costs
are amortized using the effective interest method. For governmental funds, these costs are considered to
be period costs.
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 City accrues a liability for compensated absences
as well as certain other salary related costs associated with the payment of compensated absences. 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.
Employee Benefit Plans and Net Pension Asset/Obligation - The City provides separate defined
benefit pension plans for general employees, sanitation employees and for uniformed police and fire
department personnel, as well as a defined contribution pension plan created in accordance with Internal
Revenue Code Section 401(a) for certain employees. The City also offers an optional deferred
compensation plan created in accordance with Internal Revenue Code Section 457.
33
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
At September 30, 2009 the City recorded a net pension obligation related to the General Employees
and Sanitation Employees (GESE) Excess Benefit Plan in its government -wide statement of net assets.
The net pension obligation is a function of annual required contributions, interest, adjustments to the
annual required contribution, annual pension costs and actual employers contributions made to the
plan. Please refer to Note 10 for further information.
Post Employment Benefits Other Than Pensions (OPEB) - Pursuant to Section 112.0801, Florida
Statues, the City is mandated to permit participation in the health insurance program by retirees and
their eligible dependents at a cost to the retiree that is no greater than the cost at which coverage is available
for active employees. Retirees pay 75% of the blended (active and retiree combined) equivalent premium
rates. The blended rates provide an implicit subsidy for retirees because, on an actuarial basis, their
current and future claims are expected to result in higher costs to the plan on average than those of active
employees. The City currently provides these benefits in accordance with the vesting and retirement
requirements for its General Employees and Sanitation Employees, Firefighters and Police.
The City is financing the post employee benefits on a pay -as -you go basis. As determined by an
actuarial valuation, the City records a net OPEB obligation in its government -wide financial
statements related to the implicit subsidy. Please refer to Note 11 for further information.
Unearned/Deferred Revenues
Resources that do not meet revenue recognition requirements (not earned) are recorded as unearned
revenue in the governmental wide and fund financial statements. In addition, amounts related to
government fund receivables that are measurable, but not available, are recorded as deferred revenue in
the governmental fund financial statements. Unearned revenues in the government -wide financial
statements at September 30, 2009 is as follows:
Source Balance
College of Policing $ 9,645,296
Burglar Alarms and Business Taxes Receipts 6,912,150
MESA 6,028,236
SHIP Program 4,375,876
Others 5,628,044
Total $ 32,589,602
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.
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, and debt principal payments are reported as debt service
expenditures.
34
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Risk Management — The City is self -insured for automobile liability, general liability, including public
official's liability and property damage claims pursuant to Florida Statute Section 768.28 (Waiver of
Statute of Limitations; Exclusions: Indemnifications; Risk Management Programs). Per Florida Statue
section 768.28, the City is self -insured up to $100,000 per person/$200,000 per occurrence. The City is
also self -insured for workers' compensation claims. The City is self -insured for health claims and uses a
commercial carrier as the administrator. The discounted accrued liability for estimated insurance claims
represents an estimate of the ultimate cost of settling claims arising prior to year end including claims
incurred but not yet reported.
Net Assets
Equity in the government -wide statement 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.
The government -wide statement of net assets reports $71,813,691 of restricted net assets, of which Law
Enforcement, Community Redevelopment, Choice Housing Voucher Program and E-911 totals
$58,870,928 is restricted by enabling legislation.
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 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 current assets.
Designated for subsequent year's expenditures — These are amounts that 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.
35
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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.
Excess of Expenditures over Appropriations
The following funds exceeded their budgetary authorization as of September 30, 2009:
Fund
Exceed Budget
Authorization
Special Revenue:
General Special Revenue $ 1,194,764
Departmental Improvement 764,000
Initiatives
Public Services Tax 422,946
Parks & Recreation Services 667,254
Economic Development & Planning Services 207,496
Fund Deficits
The following funds had deficits in the amounts indicated as of September 30, 2009:
Fund Deficit
Special Revenue:
Fire Services $ 7,772,671
Emergency Services 14,896,430
Homeless 106,113
Transportation & Transit 103,406
Capital Projects:
Disaster Recovery 680,904
These undesignated deficits are the result of encumbrances, other reserves exceeding available fund
balances or the deferral of revenue recognition. The City plans to eliminate these deficits by increasing
fees, revisiting user charges, collecting of outstanding receivables, identifying other funding sources,
operating transfers, etc. in the near future.
36
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
NOTE 2. — DEPOSITS AND INVESTMENTS
Deposits
The City, excluding the Pension Trust Funds, maintains a cash management pool for its cash, cash
equivalents, and investments 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.
Custodial Credit Risk — This is the risk that in the event of a bank failure, the City's deposits may not
be recoverable. In addition to insurance provided by the Federal Deposit Insurance Corporation, deposits
are held in banking institutions approved by the State Treasurer of Florida to hold public funds. The
City's adopted policy is governed by Florida Statutes Chapter 280, Florida Security for Public Deposits
Act, which 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.
Investments
Custodial Credit Risk — This is the risk that in the event of the failure of the counterparty, the City will
not be able to recover the value of its investments or collateral securities that are in the possession of an
outside party. The City's investment policy requires that securities be registered in the name of the City.
All safekeeping receipts for investment instruments are held in accounts in the City's name and all
securities are registered in the City's name. 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, the State Board of
Administration Investment Pool, and prime commercial paper.
The State Board of Administration is part of the Local Government Surplus Funds Trust Fund and is
governed by Ch. 19-7 of the Florida Administrative Code. 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. The Local Government Surplus
Funds Trust Fund is not a registrant with the Securities and Exchange Commission; however, the board
has adopted operating procedures consistent with the requirements for a 2a-7 fund. These investments
are valued using the pooled share price, which is based on amortized costs.
37
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
At September 30, 2009, the cash, cash equivalents and investments of the primary government, exclusive
of the Pension Trust Funds, consisted of the following:
Investment Type Fair Value
United States Treasury Notes and Bills $ 45,156,800
Federal National Mortgage Association 95,977,777
Federal Home Loan Mortgage Corporation 79,443,750
Federal Farm Credit Bank 65,519,754
Federal Home Loan Bank 82,041,954
Commercial Paper 28,999,450
Money Market Fund 28,663,571
Total Investments 425,803,056
Bank Deposits 7,917,295
Total Cash, Cash Equivalents and Investments $ 433,720,351
Interest Rate Risk - Interest rate risk is the risk that as market rates change, the fair value of an
investment will vary. Generally, the longer the maturity of an investment, the greater the sensitivity of its
fair value to changes in the market interest rate. The City's policy limits the maturity of an investment to
a maximum of 5 years. As of September 30, 2009, the City of Miami had the following investments with
the respective weighted average maturity in years. The respective weighted average maturities were
based on the securities call date, not the maturity date.
Weighted Average
Investment Type Maturity in Years
United States Treasury Notes and Bills
Federal National Mortgage Association
Federal Home Loan Mortgage Corporation
Federal Farm Credit Bank
Federal Home Loan Bank
Commercial Paper
Money Market
0.36
0.27
0.18
0.17
0.49
0.08
Less than 1 year
Credit Risk - The City's investment policy (the Policy), minimizes credit risk by restricting authorized
investments to the highest ratings of at least one of the nationally recognized statistical rating
organizations (NRSROs). Investments in the State Board of Administration and the Local Government
Surplus Funds Trust Fund do not have a rating from NRSRO. Commercial paper and bankers
acceptances must have the highest letter and numerical rating as provided for by at least one NRSRO.
The credit ratings below were consistent among the three major rating agencies (Moody's, Standard and
Poor's, and Fitch). Obligation of the U.S. Government or obligations explicitly guaranteed by U. S.
Government are not considered to have credit risk.
The table below summarizes the investments by credit rating at September 30, 2009:
Standards & Poors
Investment Type Credit Rating
Federal National Mortgage Association AAA
Federal Home Loan Mortgage Corporation AAA
Federal Farm Credit Bank AAA
Federal Home Loan Bank AAA
Commercial Paper A 1 /P I /F 1
Money Market Fund Not Rated
38
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Concentration of Credit Risk — The City's policy establishes limitations on portfolio composition by
investment type and by issuer to limit its exposure to concentration of credit risk. The policy provides
that a maximum of 20% of the portfolio may be invested in SEC registered money market funds with no
more than 10% to any single money market fund. A maximum of 100% of available funds may be
invested in the Local Governments Surplus Funds Trust Fund. A maximum of 100% of the total
portfolio may be invested in U.S. Government securities and federal instruments, with a limit of 25%
invested in any one issuer of federal instruments. A maximum of 35% of the portfolio may be invested in
prime commercial paper with a maximum of 10% with any one issuer. A maximum of 10% of the
portfolio may be invested in banker's acceptances with a maximum of 5% with any one issuer.
As of September 30, 2009, the following issuers held 5% or more of the investment portfolio:
Issuer
Federal Farm Credit Bank
Federal Home Loan Bank
Federal Home Loan Mortgage Corp.
Federal National Mortgage Association
United States Treasury Notes
Percentage
15%
19%
19%
23% •
11%
The above excludes investments in mutual funds and external investments pools.
City of Miami Firefighters and Police Officers Retirement Trust (FIPO)
FIPO's investment policy is determined by its Board of Trustees and is implemented by investment
managers. The policy has been identified by the Board as having the greatest expected investment return,
and the resulting positive impact on asset values, funded status and benefits, without exceeding a prudent
level of risk. The Trustees are authorized to acquire and retain property, real, personal or mixed and
investments specifically including, bonds, debentures and other corporate obligations, and stocks,
preferred or common.
Interest Rate Risk - Interest rate risk is the risk that changes in market interest rates will adversely affect
the fair value of an investment. Generally, the longer the maturity of an investment the greater the
sensitivity of its fair value to changes in market interest rates. As a means of limiting its exposure to
interest rate risk, the Plan's Investment Policy limits the maturities and diversifies its investments by
security type and institution, and limits holdings in any one type of investment with any one issuer to
control this risk. Information about the sensitivity of fair values of the Plan's investments to market
interest rate fluctuations is provided by the following table that shows the distribution of the Plan's
investments by maturity at September 30, 2009:
Fair Value
Investment Maturities:
Less than 1 year
1 to 5 years
6 to 10 years
More than 10 years
U.S. U.S.
Treasuries Agencies
Corporate
Bonds
$ 24,130,413 $ 131,614,299 $ 218,576,713
1,779.736
8,545,036
3,142,280
10,663,631
6,690,160
19,058,792
105,865,347
199,157
57,179,884
94,907,141
66,290,531
Total
$ 374.321,425
1,978,893
72,415,080
117,108.213
182,819,509
39
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Credit Risk - Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a
real or perceived change in the ability of the issuer to repay its debt. This risk is generally measured by
the assignment of a rating by a nationally recognized statistical rating organization. The Plan's
investment policy utilizes portfolio diversification in order to control this risk.
The following table discloses credit ratings by investment type, at September 30, 2009, as applicable:
Percentage
Investment Type/Rating Fair Value of Portfolio
U.S. Government guaranteed* $ 155,744,712 41.61%
Credit risk debt securities
AAA 44,996,042 12.02%
AA+ 5,131,672 1.37%
AA 7,667,174 2.05%
AA- 8,366,592 2.24%
A+ 7,714,917 2.06%
A 35,118,325 9.38%
A- 22,203,204 5.93%
BBB+ 14,570,948 3.89%
BBB 16,850,892 4.50%
BBB- 10,109,573 2.70%
BB and lower 6,106,855 1.63%
Bond Funds** 38,289,773 10.23%
Not Rated 1,450,746 0.39%
Total credit risk debt securities 218,576,713 58.39%
Total fixed income securities $ 374,321,425 100.00%
* Obligations of the U.S. government or obligations explicitly or implicitly guaranteed by the U.S. government are not
considered to have credit risk and do not have purchase limitations.
** At September 30, 2009, bond funds are comprised of securities rated AAA (34%), AA (6.6%), A (5.9%), BBB+ (0.3%),
BBB (8.1%), BB and lower (45.1%) per Barclays Capital Aggregate Index and Standard and Poors.
Custodial Credit Risk - This is the risk that in the event of the failure of the counterparty, the Plan will
not be able to recover the value of its investments that are in the possession of an outside party.
Consistent with the Plan's investment policy, the investments are held by the Plan's custodial bank and
registered in the Plan's name.
Concentration of Credit Risk - The investment policy of the Trust contains limitations on the amount
that can be invested in any one issuer as well as maximum portfolio allocation percentages. There were
no individual investments that represent 5% or more of plan net assets at September 30, 2009.
40
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Foreign Currency Risk - Foreign currency is the risk that changes in exchange rates will adversely
affect the fair value of the investment or a deposit. Each investment manager, through the purchase of
units in a commingled investment trust fund or international equity mutual fund, establishes investments
in international equities. FIPO has an indirect exposure to foreign currency fluctuation as follows:
Currency
Swiss franc
Canadian dollar
Norwegian krona
Euro
British pound sterling
Hong Kong dollar
Japanese yen
South Korean won
Swedish krona
New Zealand dollar
Danish krone
Australian dollar
Other
Holdings valued
in U.S. Dollars -
International Equities
$ 3,041,372
208,586
2,144,245
17,567,791
2,769,816
7,459
135,952
1,659,890
2,607,061
1,932,640
305,610
7,237,383
1,309,802
$ 40,927,607
Securities Lending Transactions - A retirement system is authorized by state statutes and board of
trustees' policies to lend its investment securities. The lending is managed by the Trust's custodial bank.
All loans can be terminated on demand by either the Trust or the borrowers, although the average term of
loans is approximately 59 days. The custodial bank and its affiliates are prohibited from borrowing the
system's securities.
The agent lends the Trust's U.S. government and agency securities and domestic corporate fixed -income
and equity securities for securities or cash collateral of 102% and international securities of 105% of the
securities plus any accrued interest. The securities lending contracts do not allow the Trust to pledge or
sell any collateral securities unless the borrower defaults. Cash collateral is invested in the agent's
collateral investment pool, whose share values are based on the amortized cost of the pool's investments.
Investments are restricted to issuers with a credit rating A3 or A- or higher by Moody's or Standard &
Poor's. At year-end, the pool has a weighted average term to maturity of 31 days.
The relationship between the maturities of the investment pool and the Trust's loans is affected by the
maturities of the securities' loans made by other entities that use the agent's pool, which the Trust cannot
determine. There are policy restrictions by the custodial bank that limits the amount of securities that can
be lent at one time or to one borrower.
41
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The following represents the balances relating to securities lending transactions at September 30, 2009:
Securities Lent:
Lent for cash collateral:
U.S. government and agency obligations
Domestic corporate stocks
Domestic corporate bonds
International corporate stocks
Total securities lent
Fair Value of
Underlying
Securities
$ 25,080,973
115,002,763
19,961,727
2,863,384
$ 162,908,847
Cash Collateral
Received/Securities
Collateral Value
$ 26,057,124
119,762,597
20,780,942
3,103,583
Cash Collateral
Investment
Value
$ 25,659,622
117,935,624
20,463,930
3,056,238
$ 169,704,246 $ 167,115,414
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 has no credit
risk exposure to borrowers because the amounts of collateral held by the Trust exceed 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. There
is no income distributions owing on securities lent.
In September 2008 when the market experienced a significant decline and there was a general lack of
liquidity in the credit market, certain assets held in the custodial agent's short-term investment cash
collateral pool were deemed to be impaired. The custodial agent re -valued many securities held by the
securities lending cash collateral pool resulting in a mark down of the assets and causing the value of the
pool to fall below the commitments owed to the borrowers. The amount of the collateral deficiency was
calculated based on the difference between the book value and vended prices (rather than liquidation) at
the time, and a liability was assigned to the Trust based on the Trust's ratable ownership of the pool. If
the Trust should elect to withdraw from the securities lending program, the liability would be realized.
The impaired assets have been segregated from the collateral pool into a liquidation account which is
valued daily. The Trust owns interest in the liquidation account rather than having a direct ownership in
the impaired securities. At September 30, 2009 the Trust's liability was $2,588,832. The deficiency is
reported as a securities lending collateral unrealized loss on the Statements of Changes in Plan Net Assets
and a reduction to the asset value of securities lending collateral reported on the Statements of Plan Net
Assets.
42
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
GESE Pension Trust Funds
Investments for the City of Miami Employees and Sanitation Employees Retirement Trust (GESE Trust)
and the City of Miami General Employees and Sanitation Employees Retirement Trust Staff Pension
Plan (Staff Trust), as of September 30, 2009, was as follows:
Investment Type
Fair Value
GESE Staff
Trust Trust
U.S. Government and Agency Securities $ 60,368,845 $
Corporate Stocks 339,429,153
Corporate Bonds 81,436,364
763,529
597,704
481,234,362 1,361,233
Real Estate Fund 27,038,652 -
Money Market Fund 26,413,736 -
Total Investments $ 534,686,750 $ 1,361,233
GESE Trust
The investment policy, approved by the Board of Trustees for the GESE Trust, stipulates the permissible
investments and the allowable long-range asset allocation, measured at market value at the end of each
quarter. The investment objectives are to achieve rates of return that equal or exceed actuarial interest
assumption rate, and performance results that rank in the top half of the investment consultants universe
database, over a rolling three-year period, without undue risk. Compliance with the investment policy is
monitored by the GESE Trust's investment consultant. The Board of Trustees for the GESE Trust has
engaged outside investment professionals to manage the assets of the Trust. The Trusts are potentially
exposed to various types of investment risk including credit risk, custodial credit risk, concentration of
credit risk, interest rate risk, and foreign currency risk.
Interest Rate Risk — The GESE Trust limits the maturities of investments to control this risk. The
GESE Trust investment policy requires that the average duration of the fixed -income asset class be
targeted within a range of three to ten years. In addition, each manager is expected to keep its duration at
+/- one year of the benchmark duration. The GESE Trust utilizes duration to assess its risk to changes in
interest rates.
43
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The following represents the investment's market value and duration of the securities at September 30,
2009:
Weighted Avg.
Investment Type Fair Value Maturity Years
Asset -Backed $ 12,386,000 2.13
Corporate -Bank 13,466,000 4.03
Corporate -Finance 7,085,000 4.28
Corporate -Industrial 25,619,000 6.68
Corporate-Misc 4,767,000 4.81
Corporate -Transportation 3,585,000 3.52
Corporate -Comm. Utility 3,668,000 5.59
Corporate -Electric Utility 2,121,000 5.24
Corporate -Gas Utility 4,492,000 6.83
US Treasury 16,868,000 6.12
US Agency 702,000 2.56
Mortgages 48,065,000 4.13
Total $ 142,824,000
Credit Risk - The GESE Trust's Investment Policy Statement limits credit risk by requiring all fixed -
income securities to be rated by Moody's as a Baa/BBB or better. The only exception is that a maximum
of 5% of each manager's portfolio may be invested in high yield securities rated Caa/CCC or better.
At September 30, 2009, the following table displays Moody's ratings and the market value of the total
fixed -income portfolio invested:
Investment Type/Rating Market Value Percent
US Treasury* $ 16,868,000 11.81%
US Agency* 702,000 0.49%
Asset -Backed** 12,377,000 8.67%
Mortgages** 48,065,000 33.65%
Aaa 739,000 0.52%
Aa 11,273,000 7.89%
A 31,327,000 21.93%
Baa 20,208,000 14.15%
Ba 464,000 0.32%
Caa 83,000 0.06%
Not Rated 718,000 0.50%
Total $ 142,824,000 100.00%
* Implied AAA rating
There is no rating classification for these investments
**
44
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Custodial Credit Risk - This is the risk that in the event of the failure of the counterparty, the Plan will
not be able to recover the value of its investments or collateral securities that are in the possession of an
outside party. The GESE Trust utilizes an independent custodial safekeeping agent for its investment
activity. Custodial credit risk is limited since its investments are held in independent custodial
safekeeping accounts, external investment pools, and/or open end mutual funds. All cash in each money
manager's portfolio is swept into a money market mutual fund on a daily basis.
Concentration of Credit Risk - The GESE Trust utilizes limitations on securities of a single issuer or
industry to manage this risk. Investments issued or explicitly guaranteed by the US Government and
investments in mutual funds, external investment pools, and other pooled investments are not subject to
any concentration of credit risk. The GESE Trust investment policy requires that corporate bond issues
must be diversified by industry and in number so that no investment in the securities of a single issue
shall exceed 5% (at cost) of the value of the portfolio. Single industry weightings will be a maximum of
25%, except U.S. government and agency securities. At September 30, 2009, the GESE Trust did not
have any investments with issuers greater than 5%.
Foreign Currency Risk - The GESE Trust Investment policy allows a maximum of 10% of each
manager's portfolio to be invested in aggregate to Yankee bonds, foreign credits, Eurodollar bonds, and
Rule 144A securities. At September 30, 2009, the GESE Trust did not have any foreign denominated
fixed income investments.
Staff Trust
The investment policy for the Staff Trust was determined by the Board of Trustees and is monitored by
the Staff Trust's investment consultant. The policy stipulates the permissible investments, and the
allowable long-range asset allocation, measured at market value, at the end of each quarter. The
investment objectives are to achieve rates of return that equal or exceed actuarial interest assumption rate,
and performance results that rank in the top half of the investment consultants universe database, over a
rolling three-year period, without undue risk. The Board of Trustees has engaged outside investment
professionals to manage the assets for the Staff Trust.
Interest Rate Risk — The Staff Trust limits the maturities of investments to control this risk. The Staff
Trust investment policy requires that the average duration of the fixed -income asset class be targeted
within a range of three to ten years. In addition, the manager is expected to keep its duration at +/- one
year of the benchmark duration. The effective duration of the passive mutual funds is 4.43 years.
Credit Risk — The Staff Plan utilizes portfolio diversification in order to limit this risk as well as limiting
investments to the highest rated securities as rated by nationally recognized rating agencies. The Staff
Plan Investment Policy limits credit risk by requiring all fixed income securities to be rated by
Moody's/S&P as a Baa/BBB or better.
The Board of Trustees for the GESE Trust has elected to hire outside investment professionals to manage
the assets for the Staff Pension Plan. As of September 30, 2009, the fixed income assets of the pension
plan were invested in a mutual fund managed passively by Vanguard.
45
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The value of the fixed income portfolio was $598,000. Vanguard manages the assets in accordance with
the investment policy statement approved by the trustees. The table below summarizes the investments
by credit rating at September 30, 2009:
Investment Type/Rating
Fair Value Percent
Government* $ 204,000 34.11 %
Aaa 246,000 41.14%
Aa 21,000 3.51%
A 61,000 10.20%
Baa 66,000 11.04%
598,000 100.00%
* Implied AAA rating
Custodial Credit Risk - This is the risk that in the event of the failure of the counterparty, the Plan will
not be able to recover the value of its investments or collateral securities that are in the possession of an
outside party. The Staff Trust utilizes an independent custodial safekeeping agent for its investment
activity. Custodial credit risk is limited since its investments are held in independent custodial
safekeeping accounts, external investment pools, and/or open-end mutual funds. All cash in each money
manager's portfolio is swept into a money market mutual fund on a daily basis.
Concentration of Credit Risk - The Staff Trust utilizes limitations on securities of a single issuer or
industry to manage this risk. Investments issued or explicitly guaranteed by the U.S. government and
investments in mutual funds, external investment pools and other pooled investments are excluded from
this requirement. The Staff Trust investment policy requires that corporate bond issues must be
diversified by industry and in number so that no investment in the securities of a single issue shall exceed
20% (at cost) of the value of the portfolio. Single industry weightings will be a maximum of 20%, except
U.S. government and agency securities. As of September 30, 2009, the Staff Trust did not have any
positions with issuers greater than 5%.
Foreign Currency Risk — The Staff Trust Investment policy prohibits investments in foreign currency
denominated securities and is therefore not exposed to foreign currency risk.
Elected Official Retirement Trust (FORT)
At September 30, 2009, the investments of EORT consisted of the following:
Investment Type Fair Value
Federal Home Loan Mortgage Corporation 998,930
Federal National Mortgage Association 1,002,035
Federal Home Loan Bank 763,946
Cash and Money Market Funds 1,319,880
Total $ 4,084,791
Interest Rate Risk - Interest rate risk is the risk that as market rate changes the fair value of an
investment will vary. Generally, the longer the maturity of an investment, the greater the sensitivity of its
fair value to changes in the market interest rate. The City's investment policy limits the maturity of an
46
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
investment to a maximum of 5 years. As of September 30, 2009, EORT had the following investments
with the respective weighted average maturity in years. The respective weighted average maturities were
based on the securities call date, not the maturity date.
Investment Type
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Federal Home Loan Bank
Money Market Funds
Weighted Avg.
Maturity
In Years
0.58
1.00
2.58
Less than 1 year
The investments at September 30, 2009 are in compliance with EORT's investment policy.
Credit Risk - The Plan's investment policy minimizes credit risk by restricting authorized investments to
the highest ratings of at least one of the nationally recognized statistical rating organizations (NRSROs).
Investments in the State Board of Administration, The Local Government Surplus Funds Trust Fund, do
not have a rating from the NRSRO. Commercial paper and bankers acceptances must have the highest
letter and numerical rating as provided for by at least one NRSRO. The credit ratings below for U.S.
Treasury and Agency were consistent among the three major rating agencies (Moody's, Standard and
Poor's, and Fitch). Money Market Funds are authorized by the City's investment policy, but are not rated
by the major rating agencies.
The table below summarizes the investments by credit rating at September 30, 2009:
Investment Type Credit Rating
U.S. Agency Obligations
Cash and Money Market Fund
AAA
Not Rated
Custodial Credit Risk - This is the risk that in the event of the failure of the counterparty, the Plan will
not be able to recover the value of its investments or collateral securities that are in the possession of an
outside party. The EORT Plan utilizes an independent custodial safekeeping agent for its investment
activity. Custodial credit risk is limited since its investments are held in independent custodial
safekeeping accounts, external investment pools, and/or open-end mutual funds. All cash in each money
manager's portfolio is swept into a money market mutual fund on a daily basis. All investments are held
by the plans custodial bank and registered in the City's name.
Concentration of Credit Risk - The Plan's policy establishes limitations on portfolio composition by
investment type and by issuer to limit its exposure to concentration of credit risk. The policy provides
that a maximum of 20% of the portfolio may be invested in SEC registered money market funds with no
more than 10% to any single money market fund. A maximum of 100% of available funds may be
invested in the Local Governments Surplus Funds Trust Fund. A maximum of 100% of the total
portfolio may be invested in U.S. Government securities and federal instruments, with a limit of 25%
invested in any one issuer of federal instruments. A maximum of 35% of the portfolio may be invested in
prime commercial paper with a maximum of 5% with any one issuer. A maximum of 10% of the
portfolio may be invested in banker's acceptances with a maximum of 5% with any one issuer.
47
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
As of September 30, 2009, the following issuers held 5% or more of the investment portfolio:
Issuer Percent
Federal Home Loan Mortgage Corporation 36%
Federal National Mortgage Association 37%
Federal Home Loan Bank 27%
100%
NOTE 3. — RECEIVABLES
Receivables at year-end for the City in individual major funds and non -major funds in the aggregate,
including the applicable allowance for uncollectible accounts, are as follows:
Fire Rescue Emergency Streets & Non -Major
Receivables General Services Services Sidewalks Govt Funds Total
Accounts $ 23,905,690 $ 16,156 $ 7,187 $ 322,260 $ 8,486,204 $ 32,737,497
Taxes 19,873,780 - - 1,556,354 21,430,134
Due from Other Govts 1,828,489 10,162,792 10,012,078 3,888,891 22,249,171 48,141,421
Loan to Component Unit - 2,400,000 2,400,000
Loan. Receivable - 11,358,430 11,358,430
Gross Receivables 45,607,959 10,178,948 10,019,265 4,211,151 46,050,159 116,067,482
Less: Allow for Uncollectable (9,297,289) (15,972) (2,116,993) (322,260) (17,691,015) (29,443,529)
Net Total Receivables $ 36,310,670 $ 10,162,976 $ 7,902,272 $ 3,888,891 $ 28,359,144 $ 86,623,953
As part of its Community Development Block Grant (CDBG) 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. The loan to the component unit represents a receivable from the DOSP in the amount of
$2,400,000, which is fully reserved for as of September 30, 2009 (see Note 8).
Loan receivable amount represents a loan to Parrot Jungle Island authorized under the loan participation
agreement with Miami -Dade County. The agreement required the City to assume 80% of the guarantee
of the loan. Balance at September 30, 2009 represents payments made on behalf of Parrot Jungle Island
to Miami -Dade County. Amounts are due to the City beginning in 2012.
Single -Family Homeownership and Rehabilitation Programs
Single-family home rehabilitation and homeownership programs funded under the Community
Development Block Grant (CDBG), HOME Investment Partnership Loan Program (HOME), American
Dream Down Payment Initiative (ADDI), State Housing Initiative Partnership Program (SHIP) or
Affordable Housing Trust Fund, generally are repaid when the related properties are transferred or sold.
If the property is transferred or sold before the end of the "loan" period, the proceeds from the repayment
including interest, if any, are then returned to the program to assist additional low-income families. If the
homeowners remain in their homes for the full term of the deferred loan, the loan is "forgiven" and
becomes a grant. A mortgage or a covenant is placed against the property to ensure the repayment of the
loan and interest. Given the nature of these "loans", collection on loans is not assured, consequently they
are not recognized in the financial statements.
48
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
A summary of single-family, deferred long-term loans that are not recognized in the financial statements
is as follows:
September 30, 2009
Program Loans Outstanding Amount
CDBG 79 loans $ 1,720,923
HOME 4691oans 16,765,113
SHIP 423 loans 9,372,331
Other 90 loans 1,644,146
Total 1,061 loans $ 29,502,513
Home Ownership and Rental Multi -Family Loans
As of September 30, 2009, there are 91 projects aggregating to $46,565,431 for new construction or
rehabilitation of multi -family units, which under the terms of the loan agreement are to be repaid if
program conditions are not met. Home ownership loans are usually "forgiven" to the developer and
transferred to the home buyer. The home buyer loans are usually amortizable or deferred during the life
of the affordability period. Such loans will be forgiven and become grants if the homeowners remain in
their homes during the full term of the loan. Given the nature of these "loans", collection on loans is not
assured, consequently they are not recognized in the financial statements.
Economic Development Commercial Loans
As of September 30, 2009, there are 33 loans aggregating to $10,190,445 for Special Economic
Development projects under the CDBG program. Those projects are collateralized by placing a mortgage
against the property of the business or non-profit entity's assets to ensure repayment of the Ioan and
interest to the City. Some of these "loans" are written with no interest payment or deferred payments and
are "forgivable", if all program conditions are met. Given the nature of these "loans", collection on loans
is not assured, consequently they are not recognized in the financial statements.
NOTE 4. — PROPERTY TAXES
Property taxes are reassessed according to the fair market value on January 1st of each year and are due,
with discounts of one to four percent allowed if paid prior to March 1st 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 4%. All unpaid taxes on real
and personal property become delinquent on April 1st 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, 2007, upon which the 2008-2009 levy was based, was $37,149,190,992. 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 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, 2009, was $7.6740 per $1,000. The debt
service tax rate for the same period was $0.6595 per $1,000.
49
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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, 2009.
Property taxes that are not considered "available" have been reported as deferred revenues in the
governmental funds Balance Sheet.
NOTE 5. — CAPITAL ASSETS
The following is a summary of changes in capital assets during the year ended September 30, 2009:
Primary Government
Governmental Activities:
Non -Depreciable Assets:
Land
Construction in Progress
Total Capital Assets, not being depreciated
Depreciable Assets:
Buildings
Improvements
Machinery and Equipment
Infrastructure
Total Capital Assets being depreciated
Less Accumulated Depreciation for:
Buildings
Improvements
Machinery and Equipment
Infrastructure
Total accumulated depreciation
Total Capital Assets being depreciated, net
Governmental activities capital assets, net
Depreciation expense was charged to governmental
Function/Pro2ram Activities
General Government
Planning and Development
Community Development
Community Redevelopment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Total depreciation expense
Beginning
Balance
Additions/ Retirements/
Transfers In Transfers Out
Ending
Balance
$ 87,587,991 $ 921,710 $ 179,482 $ 88,330,219
255,670,214 97,207,892 105,850,413 247,027,693
343,258,205 98,129,602 106,029,895
335,357,912
136,638,045
110,498,179
161,078,515
1,109,549,481
17,496,773
55,581,582
16,264,857
25,214,685
8,474,230
154,134,818
166,079,761
168,869,142
1,134,764,166
1,517,764,220
114,557,897 8,474,230 1,623,847,887
78,160,576 3,269,463 81,430,039
39,414,991 5,234,297 - 44,649,288
94,862,192 18,578,804 8,005,716 105,435,280
589,820,127 27,682,747 - 617,502,874
802,257,886 54,765,311 8,005,716 849,017,481
715,506,334 59,792,586 468,514 774,830,406
$ 1,058,764,539 $ 157,922,188 $ 106,498,409 $ 1,110,188,318
functions as follows:
Depreciation
Expense
$ 34,429,247
106,175
66,639
421,447
5,205,822
9,614,180
525.495
4,396,306
$ 54,765,311
50
CITY OF MTAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Construction Commitments
At September 30, 2009, the City had in process various construction projects that were not completed
with a remaining balances totaling $33,469,710. Funding of these projects is to be made primarily
through the proceeds of the related bond issues, loans, and future taxes.
Discretely Presented Component Units Capital Assets
The following is a summary of changes in capital assets of the component units during the year ended
September 30, 2009:
MSEA and CIP did not have any capital asset balances at September 30, 2009.
A summary of the changes in capital assets for DOSP is as follows:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Building and structures
Leasehold improvements
Furniture and fixtures
Equipment
Total capital assets, being depreciated
Less accumulated depreciation for:
Building and structures
Leasehold improvements
Furniture and fixtures
Equipment
Total accumulated depreciation
Total capital assets, being depreciated, net
DOSP capital assets, net
DOSP
Beginning
Balance Addition Retirement
Ending
Balance
$ 14,152,054 $ - $
13,428,414 27,515,463
27,580,468 27,515,463
- $
(514, 714)
(514,714)
14,152,054
40,429,163
54,581,217
27,895,615 12,287
9,923,685 165,075
314,951 8,237
15,820,435 902,331
53,954,686 1,087,93 0
27,907,902
10,088,760
323,188
16,722,766
55,042.616
(14,291,577) (783,609)
(6,821,679) (694,764)
(226,176) (16,314)
(10,947,706) (1,040,497)
(32,287,138) (2,535,184)
21,667,548 (1,447,254)
(15,075,186)
(7,516,443)
(242,490)
(11,988,203)
(34,822,3 22)
20,220,294
$ 49,248,016 $ 26,068,209 $ (514,714) $ 74,801,511
A summary of the changes in capital assets for DDA is as follows:
Capital assets, being depreciated:
Furniture and equipment
Less accumulated depreciation for
Furniture and equipment
DDA capital assets, net
DDA
Beginning Ending
Balance Additions Retirements Balance
$ 577,505 $ 44,922 $ (99,618) $ 522,809
(386,673) (56,516)
99,618 (343,571)
$ 190,832 $ (11,594) $ - $ 179,238
51
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
A summary of changes in capital assets for BFP is as follows:
BFP
Beginning
Balance Ending
as restated Additions Retirements Balance
Capital assets, not being depreciated:
Land $ 516,129 $ - $ - $ 516,129
Construction in progress 561,123 561,123
Total capital assets, not being depreciated: 1,077,252 1,077,252
Capital assets, being depreciated:
Buildings 2,63 7,934 2,63 7,934
Public domain and system infrastructure 3,270,659 550,839 3,821,498
Machinery and equipment 421,618 3,896 425,514
Total capital assets, being depreciated 6,330,211 554,735 6,884,946
Less accumulated depreciation for:
Buildings (1,071,720) (52,759) (1,124,479)
Public domain and system infrastructure (1,550,536) (115,355) (1,665,891)
Machinery and equipment (269,756) (30,358) (300,114)
Total accumulated depreciation (2,892,012) (198,472) - (3,090,484)
Total capital assets, being depreciated, net 3,438,199 356,263 - 3,794,462
BFP capital assets, net $ 4,515,451 $ 356,263 $ - $ 4,871,714
Summary of discretely presented component unit capital assets is as follows:
DOSP DDA BFP Total
Capital Assets:
Non -depreciable $ 54,581,217 $ - $ 1,077,252 $ 55,658,469
Debreciable, Net 20,220,294 179,238 3,794,462 24,193,994
$ 74,801,511 $ 179,238 $ 4,871,714 $ 79,852,463
Depreciation expenses were charged to the discretely presented component units as follows:
Entity Depreciation Expense
DOSP $ 2,535,184
DDA 56,516
BFP 198,472
Total depreciation expense $ 2,790,172
52
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
NOTE 6. — Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities at September 30, 2009
Fire Rescue Emergency General
General Services Services Government
Vendors $ 11,049,524 $ 1,474,605
Salaries
and Benefits 18,970,159 57,062 2,735
Total $ 30,019,683 $ 1,531,667 $ 720,369 $ 1,263,634
consisted of the following:
Nonmajor
Street & Governmental
Sidewalks Funds Total
$ 720,369 $ 1,260,899 $ 10,945,556 $ 15,770,313 $ 41,221,266
32,163 1,791,411 20, 853, 530
$ 10,977,719 $ 17,561,724 $ 62,074,796
NOTE 7. — Interfund Receivables, Payables, and Transfers
The balances reflected as due from/due to other funds as of September 30, 2009 are as follows:
Receivable Fund Payable Fund
General Fund
General Fund
General Fund
Amount
Fire Rescue Services $ 6,487,380
Emergency Services 14,183,248
Other Non -Major 7,805,566
Governmental Funds
$ 28,476,194
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 interfund transfers for the year ended September 30, 2009:
Transfer In
Transfer Out
General $
Fire Rescue Service 3,700
Fire Rescue
General Service
$ 128,983
Gneral
Government
$ 26,420,358.00
Street &
Sidewalks
$ 2,684,999
General Government 2,926,367 27,532,913
Street & Sidewalks 2,624,569 1,905,904
Nonmajor
Governmental Funds 47,781,301 9,809,575 6,083,628 51,111,352 114,785,856
Total
Nonmajor
Governmental
Funds Total
$ 17,084,926 $ 46,319,266
3,700
30,459,280
4.530,473
$ 47,785,001 $ 128,983 $ 38,854,502 $ 11,694,994 $ 97,635,095 $ 196.098,575
Transfers are used to (a) move revenues from the fund 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 and public services tax funds to finance various
programs accounted for in other funds in accordance with budgetary authorizations.
53
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
In Fiscal Year 2009, $20.2 million was transferred from General Fund to Capital Project Fund to cover
capital project expenditures which continued to spend after funding had been removed, and $8.2 million
to replenish Impact Fee eligible capital project accounts for which previous general fund contributions
had been removed.
NOTE 8. — 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, 2009:
Primary Government
General Obligation bonds
Special obligation and revenue
bonds and loans
Accretion
Deferred amounts
Total bonds and loans
Other liabilities:
Compensated absences
Claims payable
Other Post Employment Benefits
Net pension obligation
Total governmental activities
long-term liabilities
Beginning
Balance
$ 235,393,765
272,141,303
34,880,434
9,155,477
551,570,979
84,479,266
142,592,170
27,192,737
4,265,603
Additions
$ 51,055,000
57,435,000
(793,980)
107,696,020
15,552,095
49,071,914
37,885,613
25,757
Reduction
$ (10,335,262)
(40,520,759)
2,864,043
(932,109)
(48,924,087)
(11,962,884)
(36,548,910)
(11,534,741)
Ending
Balance
$ 276,113,503
289,055,544
37,744,477
7,429,388
610,342,912
88,068,477
155,115,174
53,543,609
4,291,360
Due within
One Year
$ 10,309,048
16,592,492
26,901,540
5,126,671
17,659,917
$ 810,100,755 $ 210,231,399 $ (108,970,622) $ 911,361,532 $ 49,688,128
Claims and judgments, compensated absences, and the net pension obligations are generally liquidated by
the General Fund.
Claims payable balance of $155,115,174 includes $3,240,005 accrual for pollution remediation
obligations, which are obligations to address the current or potential detrimental effects of existing
pollution.
54
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, 2009:
DESCRIPTION
General Obligation Bonds:
General Obli gat ions Refunding Bonds
Series 1992
Homeland De seghbothood CiP
Series 2002 (Limited)
General Obli gat ion Refunding B onds
Series 2002A
General Obli gat ion Bond s
Other lss ues
General Obligation Refunding Bonds
Series 2003B
General Obligation Refunding Bonds
Series 2003
General Obli gat ion Refunding Bonds
Series 2007A (limited)
General Obligation Refunding Bonds
Series 2007E (Limited)
General Obli gation Refunding B onds
Series 2009 (Limited)
Total General Obligation Bonds
Special Obligation and Revers ue Bonds and Loans:
Special Revenue Refunding Bonds
Series 1987
Community Redevelopment Revenue B m ds
Series 1990
Special Obligation Non -Ad Valorem
Series 1995
Special Obligation Nan -Ad Valorem Revenue
Series 1995
Special Revenue Refunding Bonds
Series 2002A
Special Revenue Refunding Bonds
Series 2002C
Non -Ad Valorem Refunding Bonds
Series 2009
Sunshine St ate Government Fi nancing
Commission Loans
SEC W - Section 108 HUD Loan
Wymwod - Section 108 HUD Loan
Wagner Square Section 108 HUD Loan
Sunshine St ate Government Financing
Commission -Secondary Loan
Parrot Jungle
Sunshine State Government Financing
Commission Loans
Sunshine State Government Financing
Commission Loans
Sunshine State Government Financing
Commission Loans
Special Revenue Bonds Series 2007
Gran Central Corporation Loan
Total Special Obligation Bonds, Revenue Bonds,
Total Bonds and Loans
Purposeof
Issue
Amount
Issued
Outstanding
Balance
Interest Rate
Range
Refimding
Homeland Defense
Refunding
Housing
Refunding
Refund ing
Refund ing
Homeland Defense
Homeland Defense
Refund ing
Redevelopment
MRC Buil ding
Pension
Refund ing
Refund ing
Refund ing
Facnlity Improvements
Redevelopment
Redevelopment
Redevelopment
S CI, Melreese
Development
Facility Improvements
Facility Improvements
Facility improvements
Street &Sidewalks
Redevelopment
and Loans
$ 70,100, 000 $ 4,040,000 5.7%-6%
153,186,406 35,268,503 3.97% 4.97%
32,510,000 25,200,000 3.4 i 5.375%
23,190, 000 615,000 .5%-4%
4,180,000 4,080,000 2%-3.5%
18,680,000 2,925,000 3%-5%
103,060, 000 102,930,000 4%-5%
50,000,000 50,000,000 4.995%-5%
51,055,000 51,055,000 3%-5.5%
$ 505,961,406 $ 276,113,503
$ 65,271,325 $ 5,074,250 5.25%-7.3%
11,500,000 1,825,000 8.50%
22,000,000 640,000 5.70%
72,000,000 30,875,000 6.5%-7.25%
27,895,000 25,200,000 3.5%-5.375%
28,390, 000 19,940,000 3.1 %-4.375%
37,435, 000 3 7,435,000 3.4%-7.55%
27,630,900 5,851,500 (1)
5,100,000 2,750,000 8.47%-9.03%
5,500,000 2,285,000 (3)
3,999,000 3,999,000 (3)
3,500,000 920,000 (I)
6,112, 000 3,112,000
6,600,000 6,600,000 (1)
42,500,000 42,500,000 (1)
20,000, 000 19,700,000 (1)
80,000, 000 7 8,640,000 3.5%-5.0%
1,708, 864 1,708,794 0.00%
467,142,089 289,055,544
$ 973,103, 495 $ 56 5,169,047
(1) These variable rate loans are subject to a 12% interest rate cap. The Commission loans had an average interest rate of 3.396% on September 30, 2009.
(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)
(4) These variable rate loans are subject to LIBOR plus 0.2%. The interest is calculated and paid monthly.
These variable rate loans are subject to LIBOR plus 0.2%. The interest is calculated monthly and paid to the trustee quarterly.
55
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, 2009 are as
follows:
Year General
Ended Obligation Bonds
Special Obligation,
Revenue Bonds,
and Loans
Total
September 30, Principal Interest
Principal Interest
Principal Interest
2010
2011
2012
2013
2014
2015.2019
2020-2024
2025-2029
2030-2034
203 5-203 7
Total
$ 10,309,048
14,237,664
11,578,376
11,017,644
11,592,519
80,888,253
83,030,000
53,460,000
$ 13,865,476
13,761,941
13,673,035
13,731,697
13,780,673
49,45 7,681
22,346,767
6,186,066
$ 16,592,422
17,762,810
19,135,515
20,187,230
22,325,160
101,514,407
36,043,000
21,085,000
19,855,000
14,555,000
$ 21,448,318
21,029,205
18,985,719
18,045,321
16,900,227
44,202,707
18,883,049
11,351,561
6,266,219
1,115,875
$ 26,901,470
32,000,474
30,713,891
31,204,874
33,917,679
182,402,660
119,073,000
74,545,000
19,855,000
14,555,000
$ 35,313,795
34,791,145
32,65 8,754
31,777,019
30,680,899
93,660,388
41,229,816
17,537,627
6,266,219
1,115,875
$ 276,113,503
$ 146,803,335
$ 289,055,544 $ 178,228,202
$ 565,169,047 $ 325,031,537
Summary of New Debt Issuances
$20,000,000 Sunshine State Governmental Financing Commission Loan - On March 25, 2009, the
City obtained a $20,000,000 loan from the Sunshine State Governmental Financing Commission under
Loan Program Series 1986 for the purpose of financing various capital projects. This is a variable rate
loan maturing in 2016. The Sunshine State Governmental Financing Commission is a legal entity
through interlocal agreements among the State of Florida, counties, and local municipalities. The City
has covenanted to budget and appropriate in its annual budget and to pay when due non -ad valorem
revenues sufficient to satisfy the required annual debt service payments.
$51,055,000 Limited Ad Valorem Tax Bonds, Series 2009 - On May 29, 2009, the City issued
$51,055,000 in Limited Ad Valorem Tax Bonds Series 2009 (Homeland Defense/Neighborhood Capital
Improvement Projects). The bonds were issued with interest rates ranging from 3.000% to 5.375%
maturing during years 2011 through 2029. The bonds are to be repaid from limited ad valorem tax
revenues and a covenant of the City to budget and appropriate a limited portion of its non ad valorem
revenues. Limited Ad Valorem Tax which secures the Series 2009 Bonds may not be levied in excess of
a millage rate that, when added to the millage rate needed to meet the debt service on the City's
outstanding full faith and credit general obligation bonds, exceeds 1.218 mills. For Fiscal Year 2009-
2010 the debt service millage was 0.6595.
$37,435,000 Non Ad Valorem Revenue Refunding Bonds, Taxable Pension, Series 2009 - On July
10, 2009, the City issued $37,435,000 Non Ad Valorem Revenue Refunding Taxable Pension Bonds,
Series 2009 for the purpose of refunding the outstanding balance of the $30,615,000 Non AD Valorem
Variable Rate Refunding Revenue Bonds, Taxable Pension, Series 2006.
56
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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, 2009, the statutory limitation for the City amounted to
$5,372,349,771 providing a debt margin of $5,094,738,940 after consideration of $274,616,175 of
general obligation bonds outstanding at September 30, 2009 and adjusted for the fund balance of
$1,497,328 in the related Debt Service Fund.
Pledged Revenue
The City pledged future revenue proceeds of (i) 80% People Transportation Taxes, (ii) 100% new Local
Option Gas Taxes, and 20% of the City's Parking Surcharge to repay $80,000,000 in Special Obligation
Revenue Bonds, Series 2007. The proceeds from the bonds were used for the improvement of streets and
sidewalks within the City. The bonds are payable solely from the pledged revenues listed above through
January 1, 2027. Principal and interest paid for the current year were $1,360,000 and $3,865,656
respectively. The current year revenues were (i) $11,611,218, (ii) $6,595,240, and (iii) $14,015,597
respectively.
All other Special Obligation debt of the City is collateralized by pledges of non -ad valorem revenues in
accordance with their bond indentures. The bond indentures require that sufficient funds be available in
reserve accounts or a surety bond be obtained in lieu of the reserve account to meet the annual debt
service requirements. At September 30, 2009, the City had approximately $15.8 million reserved fund
balance available to meet this requirement.
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 must
maintain certain debt ratio requirements as specified under this loan requirement.
Escrow Agreement
On March 17, 1997, an agreement was entered into by and among an Escrow Agent, the Oversight
Board, acting through its committee (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 deposits of $1,497,328 with the escrow agent during fiscal year 2009 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. The City also
made deposits of $14,327,872 with the Escrow Agent during fiscal year 2009 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.
57
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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, 2009, the City has issued
$254,996,406 of the approved bonds.
Defeasance of Long -Term Debt
In prior years, the City had 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, 2009, the following outstanding bonds are considered defeased:
Defeased Debt:
$153,186,406 Limited Ad Valorem Tax Bonds, Series 2002:
Homeland Defense/Neighborhood Capital Improvement Projects $102,305,000
Balance
Purchase of Redemption Right
On November 10, 2004, Societe Generale, New York Branch, (the "Owner"), a beneficial owner of all
Non -Ad Valorem Revenue Bonds Taxable Pension Series 1995 (the "Bonds") of the City of Miami,
Florida (the "City) maturing in the years 2015 and 2020 (the "2015 and 2020 Maturities"), finalized an
Agreement with the City to pay $295,000, annually on each December 1, commencing on December 1,
2005 and ending on December 1, 2025, in exchange for the City's irrevocable agreement not to exercise
its option of redemption with respect to the 2015 and 2020 maturities.
Refunding and Termination of SWAP - On July 16, 2009, the City issued $37,435,000 in Taxable
Pension Non -Ad Valorem Refunding Revenue Bonds Series 2009. The proceeds of these taxable, fixed
rate revenue refunding bonds were used to: (1) refund all of the outstanding City of Miami Non -Ad
Valorem Variable Rate Refunding Revenue Bonds, taxable pension Series 2006, (2) pay costs of issuance
on the series 2009 bonds, (3) fund a deposit to the reserve fund (4) pay fees to terminate the existing
interest rate swap agreement in connection with Series 2006 bonds. The interest swap was terminated by
the City on July 8, 2009 in the amount of $4,984,000. The coupon rates on the taxable, fixed rate revenue
refunding pension bonds range from 3.40% to 7.55%.
58
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Discretely Presented Component Units Long -Term Debt
DOSP
The changes in DOSP's long-term debt during 2009 were as follows:
Bonds payable
Deferred amounts
Compensated absences
Loan from
primary government
Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
$ 48,510,000 $
(16,000)
770,000
2,550,000
$ 51,814,000
- $ 800,000 $ 47,710,000 $
3,000 8,000 (21,000)
532,000 594,000 708,000
150,000 2,400,000
835,000
475,000
150,000
$ 535.000 $ 1,552,000 $ 50,797,000 $ 1,460,000
The City has issued fixed rate 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 the DOSP.
The DOSP, on July 21, 2005, entered into a loan agreement with the City of Miami. The loan was
obtained through CDBG program funds up to a maximum of $3,000,000 to be used for the construction
of a parking garage facility. Funds are disbursed on a reimbursement basis. The loan bears no interest
and is payable in 40 semi-annual installments of $75,000 starting December 1, 2005. As of September
30, 2009, DOSP has drawn $3,000,000 of this loan. The balance as of September 30, 2009 is $2,400,000.
The following summarizes the debt service to maturity of outstanding DOSP debt at September 30, 2009:
Year Ending Bonds
September 30, Principal
2010 $ 835,000
2011 875,000
2012 910,000
2013 960,000
2014 1,005,000
2015-2019 5,880,000
2020-2024 7.540,000
2025-2029 9,430,000
2030-2034 11,770,000
2035-2037 8,505,000
Total $ 47,710,000
Range of Rates
Interest Total
$ 2,356,358
2,318,301
2,275,863
2,229,113
2,178,732
10,202,632
9,210,656
6,844,007
3,801,673
496,400
3,191,358
3,193,301
3,185,863
3,189,113
3,183,732
16,082,632
16,750,656
16,274,007
15,571,673
9,001,400
Loan
Principal
$ 150,000
150,000
150,000
150,000
150,000
1,650,000
$ 41,913,735 $ 89,623,735 $ 2,400,000
2.70%-6.55%
In prior years, the DOSP defeased, in substance, its 1993A Parking Facilities Revenue Bonds and at
September 30, 2009, the outstanding balance of defeased bonds was $1,305,000.
The DOSP Series 2008 bonds have been refunded subsequent to year end (see Note 14).
59
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Derivative Disclosure
Objective of the Interest Rate Swap — As a means to lowering its borrowing costs, when compared
against fixed-rate bonds at the time of issuance in March 2006, the DOSP entered into an interest rate
swap agreement in connection with a portion of its tax-exempt variable rate bonds ($34,740,000 of the
$37,070,000 tax-exempt bonds issued). The intention of the swap was to effectively change the
Authority's variable interest rate on the bonds to a synthetic fixed rate of 4.485%.
Terms — Under the swap, the DOSP pays the counterparty a fixed payment of 4.485% and receives a
variable payment computed as BMA Municipal Swap Index. The swap has a notional amount of $34.74
million and the associated variable -rate bonds have a $37.07 million principal amount. The swap was
entered into at the same time that the bonds were issued. Starting in fiscal year 2016, the notional value
of the swap and the principal amount of the associated debt will begin to decline. The BMA Municipal
Swap Index as of September 30, 2009 was .324%.
Fair Value — As of September 30, 2009, the swap agreement had a value of $6,819,469 which
represents, if terminated, an obligation of DOSP at that date. The fair value of the swap may be
countered by reductions in total interest payments required under the variable -rate bond, creating lower
synthetic rates. Because the coupons on the government's variable -rate bonds adjust to changing interest
rates, the bonds do not have a corresponding fair value increase. The fair value was developed by a
pricing service using the zero -coupon method. This method calculates the future net settlement payments
required by the swap, assuming that the current forward rates implied by the yield curve correctly
anticipate future spot interest rates. These payments are then discounted using the spot rates implied by
the current yield curve for hypothetical zero -coupon bonds due on the date of each future net settlement
of the swap.
Basis Risk — Municipal interest rate swaps are normally based on a fixed payment and an indexed
variable receipt instead of the actual variable debt payment. Any difference between the indexed variable
receipt and the accrual market -determined variable borrowing rate on bonds is called "basis -risk". Under
the swap, the DOSP will be paid the actual market -determined variable borrowing rate on the bonds is
called "basis -risk". Under the swap, the DOSP will be paid the actual market -determined variable
borrowing rate on the swap, as determined by the remarketing agent, which eliminates the basis risk.
Termination Risk — The derivative contract used the International Swap Dealers Association Master
Agreement "Master Agreement", which includes standard termination events, such as failure to pay and
bankruptcy. The schedule to the Master Agreement includes an "additional termination event". That is,
the DOSP may terminate the swap if the counterparty's credit quality falls to BBB- as issued by Fitch
Ratings or Standard & Poor's or Baa3 as issued by Moody's Investor Service. The DOSP or the counter
party may terminate the swap if the other party fails to perform under the terms of the contract. If the
swap were terminated, the variable rate bond would no longer carry a synthetic interest rate. In addition,
if at the time of the termination the swap has a negative fair value, the DOSP would be liable to the
counterparty for a payment equal to the swap's fair value.
The interest rate swap agreement does not affect the obligation of the DOSP under the indenture to repay
the principal and variable interest on the Series 2006 Parking Revenue Bonds. However, during the term
of the swap agreement, the DOSP effectively pays a fixed rate on the debt. The debt service
requirements to maturity for these bonds are based on that fixed rate. The DOSP will be exposed to
variable rates if the counter party to the swap defaults or if the swap agreement is terminated. A
termination of the swap agreement may also result in the DOSP making or receiving a termination
payment.
60
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Swap Payments and Associated Debt - Using rates at September 30, 2009, the debt service
requirements of the DOSP's tax-exempt variable -rate debt and net swap payments are as follows. As
rates vary, variable -rate bond interest payments and net swap payments will vary:
Fiscal Year Ending Interest Rate
September 30, Principal Interest Swap, Net Total
2010 $ $ 556,050 $ 1,445,253 $ 2,001,303
2011 556,050 1,445,253 2,001,303
2012 556,050 1,445,253 2,001,303
2013 556,050 1,445,253 2,001,303
2014 556,050 1,445,253 2,001,303
2015-2019 875,000 2,754,375 7,201,098 10,830,473
2020-2024 6,490,000 2,465,100 6,745,556 15,700,656
2025-2029 9,430,000 1,814,325 5,029,682 16,274,007
2030-2034 11,770,000 1,007,475 2,794,198 15,571,673
2035-2037 8,505,000 131,550 364,850 9,001,400
$ 37,070,000 $ 10,953,075 $ 29,361,649 $ 77,384,724
NOTE 9. — SELF-INSURANCE
A. Risk Management
The City is self -insured for various risk of loss as defined below 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. Certain employees and retirees of the City contribute, through payroll
deductions or deductions from pension payments, to the cost of health benefits.
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 using an independent actuarial valuation. Liabilities
include an amount for claims that have been incurred but not reported (IBNR). The process used in
computing claims liability is based on actuary and legal calculations and does not necessarily result in an
exact amount because actual claims liabilities depend on such complex factors as inflation, changes in
legal doctrines, and damage awards. Claims liabilities are re-evaluated 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 officials' liability, and general liability self-insurance programs.
Premiums are charged to the Risk Management Department and are determined 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% of
the total values at the time of loss at each location involved in the loss, subject to a minimum of $250,000
deductible for any one occurrence.
61
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
At September 30, 2009, the total estimated liability of $155,115,174 is discounted at an interest rate of
5% and recorded in the government -wide financial statements. Changes in the claims liability amount in
2008 to 2009 were as follows:
Fiscal Year
Ended
September 30,
Beginning of
Fiscal Year
Lia bility
2008 $ 141,603,838
2009 142,592,170
NOTE 10. — PENSIONS
Current Year
Claims and Changes
in estimates
$ 36,182,885
49,071,914
Claim
Payments
$ 35,194,553
36,548,910
Balance at
Fiscal Year End
$ 142,592,170
155,115,174
The City sponsors separate single -employer, defined benefit pension plans under the administration and
management of separate Boards of Trustees: 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 Other Managed Trusts, and the City of Miami Elected Officers Retirement Trust
(EORT).
Basis of Accounting
The financial statements for the Plans are prepared using the accrual basis of accounting. All plans are
reported as pension trust funds in the City's financial statements. Plan member contributions are
recognized in the period which the contributions are due. Employer contributions are recognized when
due and the employer has made a formal commitment to provide the contributions. Benefits and refunds
are recognized when due and payable in accordance with the terms of the Plans.
Method Used to Value Investments
Investments of the Plans are recorded at fair market value. Securities traded on a national exchange are
valued at the last reported sales price on the Last business day of the fiscal year. Securities traded in the
over-the-counter market and listed securities for which no sale was reported on that date are valued at the
last reported bid price. Commercial paper, time deposits, and short-term investment pools are valued at
fair market value and mortgages are valued based on current market yield which approximates fair value.
Net appreciation (depreciation) in fair value of investments includes realized and unrealized gains and
losses. Interest and dividends are reported as investment earnings. Realized gains and losses on the sale
of investments are based on average cost.
FIPO
Plan Description
FIPO is a single -employer, defined benefit plan established by the City pursuant to the provisions and
requirements of Ordinance No. 10002 as amended. Participants are contributing police officers and
firefighters with full-time employment status in the Police or Fire Department of the City.
62
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
At October 1, 2008, the date of the most recent actuarial valuation, membership in the FIPO consisted of
1,870 retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits
but not yet receiving them; current employees equaled 1,633 as of that date.
Separate audited financial statements are provided for FIPO and can be obtained from the pension board
at: FIPO, 1895 SW 3rd Avenue, Miami, Florida, 33129.
Pension Benefits
Effective October 1, 1998, members may elect to retire after 10 or more years of creditable service upon
attainment of normal retirement age. Normal retirement age for members shall be 50 years of age. A
member exercising normal service retirement or rule of 64 retirement (computation of service retirement
on the basis of his or her combined age and creditable service equaling 64) shall be entitled to receive a
retirement allowance equal to 3% of the member's average final compensation multiplied by the years of
creditable service for the first 15 years of such creditable service and 3.5% of average final compensation
for years of creditable service in excess of 15 years, payable in monthly installments. Early retirement
after twenty years of service is available. Benefits for disability and death are also provided under the
plan.
Cost of Living Adjustment (COLA)
Effective January 1, 1994, the FIPO Trust entered 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 I).
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).
Deferred Retirement Option Plan (DROP)
Members who are eligible for service retirement or Rule of 64 after September 1998 may elect to enter
the 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.
63
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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.
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.
Contributions and Funding Policies
Members of FIPO are required to contribute 8% of their salary on a bi-weekly basis. The City is required
to contribute such amounts annually as necessary to maintain the actuarial soundness of the plan and to
provide FIPO with assets sufficient to meet the benefits to be paid to participants. Contributions to FIPO
are authorized pursuant to City of Miami Code Sections 40.196 (a) and (b). Contributions to the FIPO
Cost of Living Adjustment Accounts are authorized pursuant to Section 40.204 of the City of Miami
Code. The City's contributions to FIPO provide for non -investment expenses and normal costs. The
yield on investments on FIPO serves to reduce future contributions that would otherwise be required to
provide for the defined level of benefits under the Trust.
The payroll for employees covered by FIPO for the year ended September 30, 2009 was approximately
$131.3 million; the City's total payroll was approximately $295.6 Million.
64
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Annual Pension Cost
The City's current year contribution was determined through an actuarial valuation performed as of
October 1, 2008. Significant actuarial assumptions used to compute the annual contribution requirement
are as follows:
Valuation date:
Actuarial cost method:
Amortization method:
Remaining amortization period:
Asset valuation method:
Actuarial assumptions
Investment rate of return:
Projected salary increases due to inflation:
Seniority/merit
Promotion/other
Mortality table:
Mortality, disability, retirement and turnover:
October 1, 2008
Aggregate Cost Method
Not Applicable
Not Applicable
20% Write -Up Method: Expected value is based on the Interest
Discount/Investment Return rate applied to the acturial asset
value as of previous valuation date and cash flow during the
year. 20% of the difference between Expected Value and the
Market Value (net of pending transfers to the COLA Fund) is
added to the Expected Value. The result cannot be greater than
120% of market value or less than 80% of market value (net of
pending COLA transfers).
7.75%, compounded annually
3.50%
5.00% to 0% reducing by attained age
1.50%
Ga94 - Mortality table
Pension Benefit Guaranty Corporation (PBGC)
Non-OASDI basis rate tables
FIPO contributions are determined using the aggregate cost method. The aggregate cost method does not
identify and separately amortize the unfunded actuarial liabilities. The annual pension cost is equal to the
annual required contribution each year.
Year Ended
September 30
2007
2008
2009
GESE
Three Year Trend Information
Annual Pension
Cost (APC)
$ 40,542,078
36,040,251
36,993,395
Percentage of Net Pension
APC Contributed Obligation
100%
100%
100% -
The Board of Trustees of the City of Miami General Employees and Sanitation Employees (GESE)
Retirement Trust administers three defined benefit pension plans - (1) City of Miami General Employees
and Sanitation Employees Retirement Trust ("GESE Trust"), (2) an Excess Benefit Plan for the City of
Miami and (3) City of Miami General Employees and Sanitation Employees Retirement Trust Staff
Pension Plan ("Staff Trust"). Each plan's assets may be used only for the payment of benefits to the
members of that plan, in accordance with the terms of the plan.
Separate audited financial statements are provided for the GESE Plans and can be obtained from the
pension board at: GESE, 2901 Bridgeport Avenue, Coconut Grove, Florida 33133.
65
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
City of Miami General Employees and Sanitation Employees Retirement Trust (GESE Trust)
Plan Description
The GESE Trust is a single -employer defined benefit plan. The GESE Trust was established pursuant to
the City of Miami Ordinance No. 10002 and subsequently revised under City of Miami Ordinance No.
12111. The GESE Trust covers all City of Miami general and sanitation employees except certain
employees eligible to decline membership. Participation in the GESE Trust is a mandatory condition of
employment for all regular and permanent employees other than fire fighters, police officers, and those
eligible to decline membership, as defined by the Ordinance.
At October 1, 2008, the date of the most recent actuarial valuation, membership in the GESE Trust
consisted of 1,992 retirees and beneficiaries currently receiving benefits and terminated employees
entitled to benefits but not yet receiving them; current employees equaled 1,703 as of that date.
Pension Benefits
The minimum normal retirement age is 55. A member who has completed a combination of at least 10 or
more years of creditable service plus attained age equaling 70 points may elect a rule of 70 retirement.
Any member in service who has 10 or more years of continuous creditable service may elect to retire
upon the attainment of normal retirement age. Retirement benefits are generally based on 3% of the
average final compensation multiplied by years of creditable service, which is paid annually in monthly
installments. Early retirement, disability, death, and other benefits are also provided as defined in City of
Miami Ordinance No. 12111.
Members eligible to receive accumulated sick and vacation leave from the City of Miami are able to
transfer the amount to an eligible retirement plan. The GESE Trust facilitates the transfer of the
accumulated sick and vacation leave to any eligible retirement plan and is pursuant to City of Miami
Code Section 40-266.
Cost of Living Adjustment (COLA)
Effective October 1, 1998, the Plan was amended to provide for an increase in the COLA paid to retirees
to 4% with a $400 annual maximum increase, provided the retiree's first anniversary of retirement has
been reached. The amendment also provided for retirees electing the return of contribution option to
receive a minimum COLA benefit of $27 per year and a maximum COLA benefit of $200 added to the
previous COLA benefit, provided the retiree's first anniversary of retirement has been reached.
Deferred Retirement Option Plan (DROP)
The City of Miami General Employees and Sanitation Employees Retirement Trust made the DROP
available to all GESE Trust members effective May 1, 2002. The DROP is an enhancement to the GESE
Retirement Trust that can provide a trust member with another way to save for retirement. It allows a
participant to receive pension payments by depositing in 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.
66
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Contributions and Funding Policies
Members of the GESE Trust are required to contribute 10% of their salary on a bi-weekly basis. The
Trusts' funding policies provide for periodic contributions at actuarially determined rates that, expressed
as percentages of annual covered payroll, are sufficient to maintain the actuarial soundness of the Trust
and to accumulate sufficient assets to pay benefits when due. The City is required to contribute an
actuarially determined amount that, when combined with participants' contributions, will fully provide
all benefits as they become payable. Contributions to the GESE Trust are authorized pursuant to City of
Miami Code Section 40-241 (a) and (b). Contributions from the City are designed to fund the GESE
Trust's non -investment expenses and normal costs and to fund the unfunded actuarial accrued liability.
The yield (interest, dividends, and net realized and unrealized gains and losses) on investments of the
Trust serves to reduce or increase future contributions that would otherwise be required to provide for the
defined level of benefits under the GESE Trust.
The payroll for employees covered by the GESE Trust for the year ended September 30, 2009 was
approximately $97.3 million; the City's total payroll was approximately $295.6 Million.
Annual Pension Cost
The City's current year contribution was determined through an actuarial valuation performed as of
October 1, 2008. Significant actuarial assumptions used to compute the annual contribution requirement
are as follows:
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:
October 1, 2008
Modified entry age normal
Level dollar amount, closed
9 - 20 years
5-Year Smoothed Market
8.10%
5.25%
3.50%
4% per year, with $54 per year minimum and $400 per year maximum.
GESE Trust contributions are determined using the entry age normal cost method with frozen actuarial
accrued liability. The annual pension cost is equal to the annual required contribution each year.
Year Ended
September 30
2007
2008
2009
Three Year Trend Information
Annual Pension
Cost (APC)
$ 24,229,028
22,762,902
23,191,828
Percentage of Net Pension
APC Contributed Obligation
100%
100%
100%
67
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
GESE Excess Benefit Plan
Plan Description
The City of Miami Commission, in July 2000, pursuant to applicable Internal Revenue Code provisions,
established a qualified governmental excess benefit plan 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
are not diminished by changes in the Internal Revenue Code. The Board of Trustees of the Trust
administers the excess benefit plan. Plan members are not required to contribute to the Excess Benefit
Plan. Members of the GESE Trust participate in this Plan.
At October 1, 2008, the date of the most recent actuarial valuation, membership in the Excess Benefit
Plan, consisted of 21 retirees and beneficiaries currently receiving benefits and terminated employees
entitled to benefits but not yet receiving them and there are no current employees in the plan.
Contributions and Funding Policies
The payment of the City's contribution of excess retirement benefits for eligible members of the Plan
above the limits permitted by the Internal Revenue Code is: (a) funded from the City's General Fund, (b)
paid annually concurrently with the City's annual contribution to normal pension costs which causes the
City to realize a reduction in normal pension costs in the same amount, and (c) deposited in a separate
account established specifically for the GESE Trust to receive the City's excess retirement benefit
contributions. This account is separate and apart from the accounts established to receive the City's
normal pension contributions for the GESE Trust. The City is required to contribute amounts as benefits
become payable.
The payroll for employees covered by the Excess Benefit Plan for the year ended September 30, 2009
was approximately $97.3 million; the City's total payroll was approximately $295.6 Million.
Annual Pension Cost and Net Pension Obligation
The City's current year contribution was determined through an actuarial valuation performed as of
October 1, 2009. Significant actuarial assumptions used to compute the annual contribution requirement
are as follows:
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 adjustment
October 1, 2008
Modified entry age normal
Level dollar amount, closed
22 years
Not Applicable
8.10%
5.25%
3.50%
None
68
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
GESE Excess Plan contributions are determined using the entry age normal cost method with frozen
actuarial accrued liability.
Year Ended
September 30
2007
2008
2009
Three Year Trend Information
Annual Required
Contribution (ARC)
$ 823,371
898,149
566,046
Percentage of
ARC Contributed
58%
50%
82%
Net Pension
Obligation
$ 3,877,208
4,265,603
4,291,360
The City's annual pension cost and net pension obligation to the GESE Excess Plan for the current fiscal
year was as follows:
Annual required contribution
Interest on net pension obligation
Adjustment to annual required contribution
Annual pension cost
Contributions made
$ 566,046
345,514
(421,478)
490,082
(464,325)
Increase in net pension obligation 25,757
Net pension obligation, beginning of year 4,265,603
Net pension obligation, end of year $ 4,291,360
City of Miami General Employees and Sanitation Employees Retirement Trust (Staff Trust)
Plan Description
The Staff Trust is a single -employer, defined benefit plan. The Staff Trust was established by the rule -
making authority of the GESE Retirement Trust, pursuant to Chapter 40 of the Miami City Code. The
Staff Trust covers all administrative full-time employees and other positions as may be named by the
Board of Trustees. Participation in the Staff Trust is a mandatory condition of employment for all full-
time employees, other than those eligible to decline membership, as defined by the Plan document.
At October 1, 2009, the date of the most recent actuarial valuation, membership in the Staff Trust had no
retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but
not yet receiving them; current employees equaled 13 as of that date.
Pension Benefits
Any member who has 10 or more years of continuous creditable service may elect to retire, regardless of
age. Retirement benefits are generally based on 3% of the average final compensation multiplied by
years of creditable service, which is paid annually in monthly installments.
Contributions and Funding Policies
Members of the Plan are required to contribute 10% of their salary on a bi-weekly basis. The funding
policies of the Plan provide for periodic contributions at actuarially determined rates that, expressed as
percentages of annual covered payroll, are sufficient to maintain the actuarial soundness of the Trust and
to accumulate sufficient assets to pay benefits when due. The City is required to contribute an actuarially
determined amount that, when combined with participants' contributions, will fully provide all benefits
69
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
as they become payable. The yield (interest, dividends, and net realized and unrealized gains and losses)
on investments of the Staff Trust serves to reduce or increase future contributions that would otherwise
be required to provide for the defined level of benefits under the Staff Trust.
The payroll for employees covered by the Staff Trust for the year ended September 30, 2009 was
approximately $632,000; the City's total payroll was approximately $295.6 Million.
Annual Pension Cost
The City's current year contribution was determined through an actuarial valuation performed as of
October 1, 2009. Significant actuarial assumptions used to compute the contribution requirements are as
follows:
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:
October 1, 2008
Modified entry age normal
Level dollar amount, closed
8 - 22 years
3-year smoothed market
8.10%
6.00%
3.50%
None
Staff Trust contributions are determined using the entry age normal cost method with frozen actuarial
accrued liability. The annual pension cost is equal to the annual required contribution each year.
Year Ended
September 30
2009
2008
2007
Three Year Trend Information
Annual Pension
Cost (APC)
$ 159,837
109,163
57,995
Elected Officers Retirement Trust (FORT)
Percentage of
APC Contributed
100%
100%
100%
Net Pension
Obligation
8
Plan Description
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"). Under the EORT Plan, eligibility requires 7 years of total service as an
elected official of the City to be vested without requiring that such service be continuous. This plan is
non-contributory.
The City of Miami Commission, in July 2000, 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
are not diminished by changes in the Internal Revenue Code. EORT's fiduciary administers the excess
benefit plan.
70
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
At December 31, 2008, the date of the most recent actuarial valuation, membership in the EORT
consisted of 5 retirees and beneficiaries currently receiving benefits and terminated employees entitled to
benefits but not yet receiving them; current employees equaled 6 as of that date.
The EORT does not issue separate financial statements.
Pension Benefits
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 100% at 17 or more years of service. An active participant will be fully vested upon
death and a single sum death benefit is payable.
Contributions and Funding Policies
Funding is in level payments under the individual aggregate cost method. Assets are allocated first to the
non -active participants, then to the active participants based on their accrued liability. The unfunded
present value of future benefits is determined for each individual and spread over their expected future
working lifetime with the City. All funding is provided by the City. There are no participant
contributions to the Trust.
The payroll for employees covered by EORT for the year ended September 30, 2009 was approximately
$718,000; the City's total payroll was approximately $295.6 Million.
Annual Pension Cost
The City's current year contribution was determined through an actuarial valuation determined as of
December 31, 2008. Significant actuarial assumptions used to compute the annual contribution
requirement are as follows:
Valuation date: December 31, 2008
Actuarial cost method: Individual Aggregate Cost Method
Amortization method: Not Applicable
Remaining amortization period: Not Applicable
Asset valuation method: December 31 market values
Actuarial assumptions
Investment rate of return: 3.75%
Projected salary increases:
Inflation: N/A
Merit, longevity, etc: N/A
Mortality table: RP-2000 White Collar Active/Retiree, Healthy Mortality
table without setback
Disability, turnover and retirements: No disability or turnover assumed. Retirement is assumed
at the end of the current term or 100% vested.
EORT contributions are determined using the aggregate cost method. This method does not separately
identify and amortize unfunded actuarial liabilities. The following contributions were made to EORT in
accordance with actuarially determined contribution requirements, based on the actuarial valuation
performed for each respective year: The annual pension cost is equal to the annual required contribution
71
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
each year. As such, the three year trend information is combined with the six year required
supplementary information as follows:
Annual Pension Cost
Year Ended (APC) and Annual Percentage Net Pension
September 30 Required Contribution Contributed Obligation
2009 $ 412,588 100% $
2008 711,209 100%
2007 285,408 100%
2006 1,043,209 100%
2005 300,000 100% 2004 300,000 100%
2002 220,837 100%
Separate stand-alone financial statements are not issue for EORT therefore, presented below is the
Statement of Fiduciary Net Assets and the Statement of Changes in Fiduciary Net Assets for the, year
ended September 30, 2009:
Statement of Fiduciary Net Assets
Assets
Investments, at fair value
U.S. Agency Obligations
Money Market Funds
Total Investments
Total Assets
Net Assets
$ 2,764,912
1,319,879
4,084,791
4,084,791
Held in Trust for Pension Benefits $ 4,084,791
Statement of Changes in Fiduciary Net Assets
Additions
Contributions:
Employer
Investment Earnings:
Interest
Total Additions
Deductions
Benefits
Total Deductions
Change in Net Assets
Net Assets - Beginning of Year
Net Assets - End of Year
$ 412,588
124,695
537,283
139,032
139,032
398,251
3,686,540
$ 4,084,791
72
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The following table presents the Pension Trust Funds schedule of funding progress:
Pension
Trust
Fund
GESE Retirement Trust
GESE Staff Plan
GESE Excess Plan
FIPO
Actuarial
Valuation
Date
10/1/2008 $
10/1/2008
10/1/2008
10/1/2008 1, 018, 900, 000
(1)
Actuarial
Value of
Assets
691,791,000
1,313,407
(2)
Actuarial Unfunded
Accrued (Overfunded) Funded (3)
Liability AAL Ratio Covered
(AAL) (2) - (1) (1)/(2) Payroll
$ 808,618,183 $ 116,827,183 85.55% $ 90,974,647
1,748,147 434,740 75.13% 632,259
5,151,124 5,151,124 0.00% 90,974,647
1,452,500,000 433,600,000 70.15% 129,400,000
Unfunded
(Overfunded)
as a Percentage
of Covered Payroll
((2) - (1))/(3)
128.42%
68.76%
5.66%
335.09%
The actuary used the aggregate actuarial cost method for valuation. This method does not identify or
separately amortize unfunded actuarial liabilities, information about funded status and funding progress
has been prepared using the entry age actuarial cost method for that purpose and that the information
presented is intended to serve as a surrogate for the funded status and funding progress of the plan.
The required schedule of funding progress disclosed above presents multiyear trend information about
whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liability for benefits.
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 organization, 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, 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 City does not
have any fiduciary responsibility relating to the plan, consequently amount accrued for benefits are not
recorded in the fiduciary funds.
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
$ 295,613,401
7,074,794
690,163
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 are met by FIPO. The City does not have any fiduciary responsibility
73
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
relating to the plan, consequently amount accrued for benefits are not recorded in the fiduciary funds.
The total of such excise taxes received from the State of Florida and remitted to the plans was $9,840,501
for the year ended September 30, 2009. 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 11. — POST -EMPLOYMENT HEALTH CARE BENEFITS
Pursuant to Section 112.0801 of the Florida Statutes, the City is required to permit participation in the
health insurance program by retirees and their eligible dependents at a cost to the retiree that is no greater
than the cost at which coverage is available for active employees. Retired Police Officers are offered
coverage at a discounted premium. For Non -Police retirees (Fire Fighters, General Employees, Sanitation
Employees, and Elected Officials) and their dependents, the City has a stated policy of providing health
coverage and life insurance at a discounted premium equal to 75% of the blended group rate.
The City's annual Other Post Employment Benefit (OPEB) liability was calculated using the Entry Age
Normal Cost Method. In Fiscal Year 2009, the City had an actuary roll -forward the results of the
valuation previously performed as of October 1, 2006 to make various adjustments to the results of the
valuation to determine the September 30, 2009 OPEB liability.
GASB Statement No. 45 allows flexibility to governmental employers in the use of various actuarial cost
methods. Several such acceptable actuarial cost methods were investigated, including the Entry Age
Normal Cost Method, the Frozen Entry Age Normal Cost Method, the Aggregate Cost Method, and the
Projected Unit Credit Normal Cost Method. The goal was to recommend to the City an Actuarial cost
method which is acceptable, appropriate, and commonly used. The City has elected to implement the
provisions of GASB 45 prospectively.
Plan Description
The City of Miami has two separate single -employer OPEB plans for its retirees. One plan is for retiring
Police Officers and the other plan is for all other retiring employees (Non -Police retirees). The benefits
afforded to all retirees include lifetime medical, prescription, vision, dental, and certain life insurance
coverage for retiree and dependents. Non -Police retirees receive the same benefits as similarly situated
active employees of the City, while retired Police Officers receive the same benefits as provided through
the Fraternal Order of Police (FOP).
The City offers to its' retirees comprehensive medical coverage and life insurance benefits through its
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,
sanitation employees, police, and firefighters may become eligible for these benefits when they reach
normal retirement age while working for the City (approximately 1,848 of the 5,407 covered participants
are retirees).
74
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Funding Policy
The City Commission is authorized to establish benefit levels and approve the actuarial assumptions used
in the determination of contributions levels. The City Commission establishes the contributions
requirements of plan members and the City. These contributions are neither mandated nor guaranteed.
The retiree contributes the premium cost each month. Spouses and other dependents are also eligible for
coverage, although the retiree pays the premium cost.
The 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 annually.
Currently, the City's subsidy to OPEB benefits is unfunded. There are no separate Trust Funds or
equivalent arrangements into which the City makes contributions to advance -fund the OPEB obligations,
as it does for its retiree pension plans. The City's cost of the OPEB benefits, funded on a pay-as-you-go
basis, was $3,246,734 for the ycar ended September 30, 2009.
The ultimate implicit subsidies which are provided over time are financed directly by general assets of
the City, which are invested in short-term fixed income instruments according to its current investment
policy. The City selected an interest discount rate of 4.25%, which is the Long-range expected return on
such short-term fixed income instruments, to calculate the present values and costs of the OPEB. This is
consistent with GASB Statement 45 guidance.
Significant Actuarial Assumptions and methods used to estimate the OPEB liability are as follows:
Valuation date
Actuarial cost method
Amortization method
Amortization Period
Actuarial assumptions:
Assumed rate of return on investments
Assumed health care cost trend rates:
2006 - 11.5%
2007 - 11.0%
2008 - 10.5%
2009 - 10.0%
2010 - 9.5%
2011 - Thereafter - 9.0% - 5.0%
October 1, 2006
Entry Age Normal Cost Method
Level Percent of Payroll
30 years
4.25%
75
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The following table is the Other Post Employment Benefits schedule of funding progress:
Non -Police
Police
Total
Actuarial
Value of
Actuarial Assets*
Valuation Date (a)
10/1/2006 $ -
10/1/2006 -
$ -
Actuarial Accrued
Liability (AAL) -
Entry Age
(b)
$ 146,802,156
333,517,656
$ 480,319,812
UAAL as a
Percentage of
Unfunded AAL Funded Covered Covererd
(UAAL) Ratio Payroll Payroll
(b - a) (a / b) (c) (lb- al / c)
$ 146,802,156 0.00% $ 129,892,623 113.02%
333,517,656 0.00% 57,596,525 579.06%
$ 480,319,812 0.00% $ 187,489,148 256.19%
* Amounts based on actuarial valuation. No assets existed in the plan at September 30, 2009
Actuarial Methods
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Actuarially determined
amounts are subject to continual revision as actual results are compared to past expectations and new
estimates are made about the future. Although the valuation results are based on values the actuarial
consultant believes are reasonable assumptions, the valuation result is only an estimate of what future
costs may actually be and reflect a long-term perspective. Deviations in any of the several factors, such as
future interest rates, discounts, medical cost inflation, Medicare coverage risk, and changes in marital
status, could result in actual costs being greater or less than estimated.
Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time
off each valuation and the historical pattern of sharing of benefit costs between the employer plan
members to that point. The actuarial methods and assumptions used include techniques that are designed
to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of the
assets, consistent with the Long-term perspective of the calculations.
Annual OPEB Cost and Net OPEB Obligation
The City's annual OPEB cost (expense) is calculated based on the annual required contribution of the
employer (ARC), an amount actuarially determined in accordance with the parameters of GASB
Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to
cover normal cost each year and amortize the actuarial liabilities (or funding excess) over a period not to
exceed thirty years. The City's annual OPEB cost for the fiscal year was $26,959,115 for Police retirees
and $10,926,498 for the Non -Police retirees. The City's annual OPEB cost and the net OPEB obligation
for the fiscal year ended September 30, 2009 for both Non -Police and Police retirees are as follows:
Annual required contribution (ARC)
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense)
Contributions made
Increase in net OPEB obligation
Net OPEB obligation - beginning of year
Net OPEB obligation - end of year
Non -Police Police
Retirees Retirees Total
$ 10,888,680 $ 26,810,782 $ 37,699,462
234,787 920,904 1,155,691
(196,969) (772,571) (969,540)
10,926,498 26,959,115 37,885,613
(5,220,141) (6,314,600) (11,534,741)
5,706,357 20,644,515 26,350,872
5,524,398 21,668,339 27,192,737
$ 11,230,755 $ 42,312,854 $ 53,543,609
76
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The City's percentage of annual OPEB cost contributed to the plans, and the net OPEB obligations for
the fiscal year ended September 30, 2009 are as follows:
Fiscal
Year
Ending
Beginning
Balance
Net OPEB
Obligation
Police 9/30/2009
Non -Police 9/30/2009
Total
Annual
OPEB
Cost
$ 21,668,339 $ 26,959,115
5,524,398 10,926,498
$ 27,192,737 $ 37,885,613
Amount
Contributed
$ 6,314,600
5,220,141
$ 11,534,741
Percentage of
of Annual
OPEB Cost
Contributed
23.42%
47.78%
30.45%
Ending
Balance
Net OPEB
Obligation
$ 42,312,854
11,230,755
$ 53,543,609
The 2009 contributions for the Police and non -Police retiree plans represented 23.42% and 47.78%
respectively, of the annual required contributions.
NOTE 12. — COMMITMENTS AND CONTINGENCIES
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 and Chapter 10.650, Rules of the Auditor General.
The City anticipates no material adverse findings.
Throughout the fiscal year 2009, the City continued to experience the significant negative economic
developments surrounding the overall market liquidity, credit availability, and market collateral levels
which have resulted in declines in the value of the investment securities held by the GESE, FIPO and
EORT plans, collectively the Plans. Consequently, the City's required contribution amount to the Plans,
which are necessary to maintain the actuarial soundness and to provide the level of assets sufficient to
meet participant benefits, could significantly increase in future periods. It is management's opinion that
future contribution to the Plans will not have a material adverse effect on the City's financial position.
Global Agreement: In December 2007, the City, the County, the OMNI CRA, and the Southeast
Overtown Park West CRA, entered into an inter -local agreement that establishes the funding framework
for the several major facilities and infrastructure improvement projects. Those projects include the Arsht
Performing Arts Center, Miami Port Tunnel, Museum Park improvements, and a Major League Baseball
Stadium.
The agreement specifically calls for the OMNI CRA to increase its contribution to the County to service
debt and other loans on the Arsht Performing Art Center. Further, the agreement established parameters
by which the City, County, and CRAs would move forward with the legal process of extending the lives
and expanding the geographic boundaries of both CRAs, and utilizing the additional tax increment
revenues to fmance affordable housing, infrastructure, and redevelopment projects consistent with the
CRAs' redevelopment plans. The additional OMNI CRA tax increment revenues could also be used to
finance the City's contributions to the Miami Port Tunnel project and the Museum Park improvements.
Finally, the agreement documents the City's and County's intentions to move forward with the
development of a binding baseball stadium agreement, for a stadium to be built on the former Orange
Bowl location site. To date, the total contributions required to be made by the City for the Miami Port
Tunnel and Museum Park Improvement projects have not been determined. Commitments related to the
baseball stadium project are detailed below.
International Police Training Facility and Law Enforcement High School: On November 9, 2007,
the City Commission adopted Resolution No. R-07-0650 to authorize the design, construction, funding
77
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
and contingencies of a co -located International Police Training Facility and Law Enforcement High
School on City -owned property located at 405 Northwest 3rd Avenue (known as the "College of Policing
and Forensic High School") with The School Board of Miami -Dade County (the "School Board") in an
amount not to exceed $37,470,000, and authorized the City Manager to execute an Interlocal Agreement
with the School Board and all other necessary agreements. On December 19, 2007, the School Board
approved a contribution cost for the School Board of an amount not to exceed $14,300,000 and
authorized a Guaranteed Maximum Price Agreement for construction of the College of Policing and
Forensic High School in the total amount of $35,400,000.
As of April 14th, 2008, the City and the School Board executed the Interlocal Agreement, which provides
that if either party requests any change order(s) that increase the price of the construction of the College
of Policing and Forensic High School, that the party requesting the change is responsible for covering the
increased costs. As of April 14th, 2008, the City, the School Board, and SunTrust Bank as Escrow
Agent, and as acknowledged and agreed by Pirtle Construction Company entered into an Escrow Deposit
Agreement whereby the City funded $23,510,000 and the School Board funded $11,890,000 into the
construction escrow sub -accounts for the construction costs of the College of Policing and Forensic High
School. As of September 30, 2009, the outstanding balances of the escrow accounts are $4,438,436 and
$2,244,704 respectively. The construction of the College of Policing and Forensic High School is
ongoing; opening of the facility is anticipated for Winter 2009 — 2010.
The City and the School Board entered into an Operating Agreement in the form of a lease agreement
whereby the School Board leases its portion of the facility from the City for an initial term forty (40)
years for the cost of $1.00 per year with the $40 payable in advance of occupancy. At the end of the
initial term, the School Board will have four (4) ten-year options to renew the lease. The School Board
may exercise this option upon six (6) months prior written notice to the City, provided that the School
Board is not otherwise in default under the Operating Agreement and provided the Parties come to a
mutual agreement regarding any capital expenditures that may be required to continue the useful life of
the facility during the option period(s). The parties will share the operating/maintenance costs in
proportion to their occupancy percentages (59% for the City and 41% for the School Board).
Port of Miami Tunnel and Access Improvement Project/Wachovia Bank, National Association
S50,000,000 Letter of Credit: By Resolution 07-0697, adopted by the City Commission on December
13, 2007, the City Manager was authorized to execute a Master Agreement ("Master Agreement") for the
Port of Miami Tunnel and Access Improvement Project ("Project") among Florida Department of
Transportation ("FDOT"), Miami -Dade County, and the City of Miami, providing for a financial
contribution from the city of $55 million, consisting of a $5 million contribution in land rights -of -way
and a cash contribution in the principal sum of $50 million.
Under the Master Agreement, the City has the option to make its cash contribution in annual installments
during the 35 year term of the agreement between FDOT and the firm that will design, construct and
finance the Project, or in a lump sum. To secure the City's payment obligations, the Master Agreement
requires the City to provide an irrevocable letter of credit in the amount of $50,000,000 to FDOT.
The City requested that Wachovia Bank, National Association ("Wachovia") issue an irrevocable
standby letter of credit in the face amount of $50,000,000 (the "Letter of Credit") to satisfy that
requirement. Wachovia's issuance of the Letter of Credit calls for the payment of fees and costs in
connection with the issuance and maintenance of the Letter of Credit and reimbursement to Wachovia in
the event of a draw(s) by FDOT upon the Letter of Credit.
78
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Litigation
The City is involved in various lawsuits arising in the ordinary course of operations. Although the
outcome of these matters is not presently determinable, it is the opinion of management of the City based
upon consultation with legal counsel, that the outcome of these matters will not have an adverse material
effect on the financial position of the City beyond the amounts accrued for its self -insured liability.
NOTE 13. — SUBSEQUENT EVENTS
$65,000,000 Special Obligation Bonds, (Street and Sidewalks), Series 2009 - On December 2, 2009,
the City issued $65,000,000 in Special Obligation Bonds, (Street and Sidewalks), Series 2009 for the
purpose of financing various street and sidewalk capital improvement projects. The bonds were issued
with interest rates ranging from 2.500% to 5.625% maturing from year 2010 through 2039. The bonds
are to be repaid by certain designated revenues derived from ad valorem taxes.
Marlins Baseball Stadium Garage Construction Funding - The City entered into a construction
agreement to fund the construction of a 2,000+ spaces parking garage in the Marlins Baseball Stadium
site. The cost is $97 million plus incidental costs. In October 2009, the Commission has authorized the
Administration to issue special revenue bond up to $120 million to fund such commitment.
$60,110,000 Refunding Revenue Refunding Tax Exempt Bonds Series 2008 and $6,485,000 Taxable
Revenue Bond Series 2009 (Department of Off -Street Parking) - On September 24, 2009, the City
Commission adopted ordinance 13092 authorizing the Department of Off -Street Parking (DOSP) to issue
up to $70.0 million in new revenue bonds for the purpose of refunding the Series 2008 bonds. On
November 5, 2009, the Authority issued $60,110,000 in of tax-exempt, fixed-rate revenue and revenue
refunding bonds and $6,485,000 in taxable, fixed-rate revenue and revenue refunding bonds ("Series
2009 Revenue Bonds"). The proceeds of these bonds were used to: (1) fully redeem and refund the Series
2008 bonds, (2) pay for costs of issuance on the Series 2009 revenue bonds, (3) pay for additional
construction costs on the Courthouse Center Garage, and (4) pay fees to terminate the existing interest
rate swap agreement in connection with the Series 2008 bonds. The interest rate swap was terminated by
DOSP on November 19, 2009, for the amount of $5.9 million. The Series 2009 Revenue Bonds are
secured by the net revenues of DOSP. The coupon rates for the tax-exempt fixed-rate revenue bonds
range from 4.25% to 5.35%. The coupon rates on the taxable, fixed-rate bonds range from 5.11% to
5.66%.
NOTE 14. — PRONOUNCEMENTS ISSUED, BUT NOT YET ADOPTED
GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets, was issued June
2007. This Statement establishes accounting and financial reporting requirements for intangible assets to
reduce these inconsistencies, thereby enhancing the comparability of the accounting and financial
reporting of such assets among state and local governments. The provisions of this Statement will be
effective for the City beginning with its year ending September 30, 2010.
GASB Statement No. 52, Land and Other Real Estate Held as Investments by Endowments, was
issued November 2007. This Statement establishes consistent standards for the reporting of land and
other real estate held as investments by essentially similar entities. It requires endowments to report their
land and other real estate investments at fair value. Governments also are required to report the changes
79
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
in fair value as investment income and to disclose the methods and significant assumptions employed to
determine fair value, and other information that they currently present for other investments reported at
fair value. The provisions of this Statement will be effective for the City beginning with its year ending
September 30, 2010.
GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, was issued
in June 2008. This Statement addresses the recognition, measurement, and disclosure of information
regarding derivative instruments entered into by state and local governments. The provisions of this
Statement will be effective for the City beginning with its year ending September 30, 2010.
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, was
issued in March 2009. The objective of this Statement is to enhance the usefulness of fund balance
information by providing clearer fund balance classifications that can be more consistently applied and
by clarifying the existing governmental fund type defmitions. This Statement establishes fund balance
classifications that comprise a hierarchy based primarily on the extent to which a government is bound to
observe constraints imposed upon the use of the resources reported in governmental funds. The
provisions of this Statement will be effective for the City beginning with its year ending September 30,
2011.
GASB Statement No. 57, OPEB Measurements by Agent Employers and Agent Multiple -Employer
Plans, was issued in December 2009. The objective of this Statement is to address issues related to the
use of the alternative measurement method and the frequency and timing of measurements by employers
that participate in agent multiple -employer other postemployment benefit (OPEB) plans (That is, agent
employers). This Statement amends Statement No. 45, Accounting and Financial reporting by
Employers for Postemployment Benefits Other Than Pensions, to permit certain OPEB plans to use an
alternative measurement method. Consistent with this change to the employer -reporting requirements,
this Statement also amends Statement No. 43, Financial Reporting for Postemployment Benefit Plans
Other Than Pension Plans, which requires that a defined benefit OPEB plan obtain an actuarial agent
multiple -employer OPEB plan and its participating employers, those measures should be determined as
of a common date and at a minimum frequency to satisfy the agent multiple -employer OPEB plan's
financial reporting requirements. The provisions of this Statement will be effective for the City
beginning with its year ending September 30, 2012.
GASB Statement No. 58, Accounting and Financial Reporting for Chapter 9 Bankruptcies, was
issued in December 2009. The objective of this Statement is to provide accounting and financial
reporting guidance for governments that have petitioned for protection from creditors by filing for
bankruptcy under Chapter 9 of the United States Bankruptcy Code. It requires governments to re -
measure liabilities that are adjusted in bankruptcy when the bankruptcy court confirms (that is, approves)
a new payment plan. The provisions of this Statement will be effective for the City beginning with its
year ending September 30, 2010.
The City's management has not yet determined the effect these Statements will have on the City's
financial statements.
80
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - General Fund
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Property Taxes $ 276,396,874 $ 266,860,263 $ 266,860,263 $
Franchise and Other Taxes 37,053,231 36,228,332 36,228,332
Licenses and Permits 30,784,757 26,032,481 26,032,481
Fines and Forfeitures 5,967,326 6,396,471 6,396,471
Intergovernmental Revenues 39,584,950 47,233,928 47,233,928
Charges for Services 83,182,214 76,508,093 76,508,093
Interest 8,800,000 4,064,924 4,064,924
Other 7,129,188 8,196,844 8,196,844
Total Revenues 488,898,540 471,521,336 471,521,336
Expenditures:
General Government
Mayor 851,187 788,788 788,788
Board of Commissioners 2,000,000 1,849,288 1,837,288
Office of City Manager 2,901,736 2,681,274 2,681,274
Office of City Clerk 1,665,789 1,469,296 1,469,296
Office of Civil Service 372,346 387,231 387,231
Office of Auditor General 942,571 806,101 806,101
Office of Communications 1,286,211 1,237,976 1,237,976
Employee Relations 5,093,064 4,667,917 4,667,917
Information Technology 14,245,750 12,571,496 12,571,496
Office of the City Attorney 6,582,604 6,704,180 6,704,180
Office of Strategic Planning & Budgeting 1,589,446 1,469,309 1,469,309
Purchasing 1,527,985 1,483,685 1,483,685
Office of Hearing Boards 1,101,550 1,063,470 1,063,470
Finance 6,719,137 5,903,259 5,903,259
Capital Improvement Administration 2,666,463 2,543,839 2,543,839
Non -Departmental (4,305,940) (6,214,745) 11,084,277
Total General Government 45,239,899 39,412,364 56,699,386
12,000
(17,299,022)
(17,287,022)
Planning and Development
Building 8,047,285 7,436,168 7,436,167 1
Department of Planning 2,820,394 2,471,852 2,471,851 1
Office of Zoning 1,002,782 935,906 935,906 -
Total Planning and Development 11,870,461 10,843,926 10,843,924 2
Public Works
Solid Waste
General Service Administration
Public Works
Total Public Works
Public Safety
Fire- Rescue
Police
Total Public Safety
Pensions
G.E.S.E. Pension
F.I.P.O. Pension
Elected Officials & Administrators Pension
Total Pension
Public Facilities
Parks and Recreation
Risk Management
Organizational Support
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
23,981,270
19,412,551
18,361,828
21,912,730
17,856,716
16,519,090
61,755,649 56,288,536
86,086,877
142,298,385
228,385,262
21,912,730
17,856,716
15,169,088
1,350,002
54,938,534 1,350,002
I00,336,150 100,207,168
149,442,027 149,270,902
249,778,177 249,478,070
29,393,792 29,774,132 29,774,131
36,993,395 36,993,395 36,993,395
427,745 139,032 139,032
66,814,932 66,906,559 66,906,558
5,741,123 5,033,139 5,003,138
23,808,813 28,300,738 28,300,738
17,666,368 13,107,068 13,107,068
29,579,770 41,314,522 41,314,516
490,862,277 510,955,029 526,591,932
(1,963,737) (39,433,693) (55,070,596)
36,210,390 48,447,001
(34,246,653)
128,982
171,125
300,107
1
6
(15,636,903)
(15,636,903)
47,785,001 (662,000)
(62,618,189) (46,319,266) 16,298,923
1,963,737 (14,171,188)
1,465,735 15,636,923
Net Change in Fund Balance - (53,604,881) (53,604,861) 20
Fund Balance - Beginning of Year - 53,604,881 93,577,448 39,972,567
Fund Balance - End of Year $ $ - $ 39,972,587 $ 39,972,587
The accompanying notes are an integral part of the required supplementary information.
81
City of Miami, Florida
Schedule of Revenues, Expenditures, and Changes In Fund Balance
Budget and Actual - Fire Rescue Services Fund
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Intergovernmental Revenues $ 482,815 $ 13,133,321 $ 9,076,074 $ (4,057,247)
Charges for Services - 2,362 2,362
Interest - 2,431 2,431
Other 17,045,401 23,675,313 31,282 (23,644,031)
Total Revenues 17,528,216 36,813,427 9,112,149 (27,701,278)
Expenditures:
Current Operating:
Public Safety 14,637,065 12,000,723 9,186,706 2,814,017
Capital Outlay 2,891,151 24,937,987 697,489 24,240,498
Total Expenditures 17,528,216 36,938,710 9,884,195 27,054,515
Excess (Deficiency) of Revenues Over Expenditures - (125,283) (772,046) (646,763)
Other Financing Sources (Uses):
Transfers In - 128,983 128,983
Transfers Out (3,700) (3,700)
Total Other Financing Sources (Uses) 125,283 125,283
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
(646,763)
(7,125,907)
(646,763)
(7,125,907)
$ $ (7,772,670) $ (7,772,670)
The accompanying notes are an integral part of the required supplementary information.
82
City of Miami, Florida
Schedule of Revenues, Expenditures, and Changes In Fund Balance
Budget and Actual - Emergency Services
For The Year Ended September 30, 2009
Revenues:
Intergovernmental Revenues
Total Revenues
Expenditures:
Current Operating:
Public Safety
Total Expenditures
Excess of Revenues Over Expenditures
Budgeted Amounts
Original Final
Actual Amounts
Variance with
Final Budget
Positive (Negative)
$ 1,843,601 $ 1,843,601 $
1,843,601 1,843,601
1,843,601
1,843,601
1,733,308 110,293
1,733,308 110,293
110,293 110,293
Net Change in Fund Balance - 110,293 110,293
Fund Balance - Beginning of Year (15,006,723) (15,006,723)
Fund Balance - End of Year $ $ $ (14,896,430) $ (14,896,430)
The accompanying notes are an integral part of the required supplementary information.
83
CITY OF MIAMI, FLORIDA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
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 lst. 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 30th.
- Such report is prepared after consultation with the City Manager.
- Public hearings are conducted to obtain taxpayer comments.
- 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 2009, supplemental appropriations
totaling $48,464,288 in the General Fund, $19,414,194 in the Fire Rescue Services Fund, $1,843,601 in the
Emergency Services (Disaster Recovery), and $100,398,649 in Other Non -Major Funds was required to fund
expenditures for unanticipated program requirements.
84
City of Miami, Florida
Pension Trust Funds and Other Post Employment Benefits
Schedule of Funding Progress (a)
(Unaudited)
Actuarial
Valuation
Date
(1)
Actuarial
Value of
Assets
Actuarial
Accrued
Liability
(AAL)
Unfunded
(Overfunded)
AAL
(2)-(1)
Funded
Ratio
(1)/(2)
(3)
Covered
Payroll
Unfunded
(Overfunded)
as a Percentage
of Covered
Payroll
((2) - (1))/(3)
GESE Retirement Trust
10/1/2008
10/1/2007
10/1/2006
10/1/2005
10/1/2004
10/1/2003
10/1/2002
10/1/2001
(b)
$ 691,791,000
664,145,175
618,482,563
588,495,706
564,591,815
555,480,276
561,270,090
597,112,330
GESE Staff Plan (b)
10/1/2008
10/1/2007
10/1/2006
10/1/2005
10/1/2004
10/1/2003
10/1/2002
10/1/2001
$ 1,313,407
1,138,655
939,698
768,336
615,132
446,666
303,728
206,578
GESE Excess Plan (b)
10/1/2008 $
10/1/2007
10/1/2006
10/1/2005
10/1/2004
10/1/2003
10/1/2002
10/1/2001
FIPO (c)
10/1/2008
10/1/2007
10/1/2006
10/1/2005
10/1/2004
10/1/2003
10/1/2002
$ 1,018,900,000
1,268,900,000
1,147,900,000
1,091,900,000
957,900,000
844,900,000
753,200,000
$ 808,618,183
770,218,984
732,016,189
746,324,834
709,944,085
682,360,385
617,806,665
579,385,162
$ 116,827,183 85.55% $
106,073,809 86.23%
113,533,626 84.49%
157,829,128 78.85%
145,352,270 79.53%
126,880,109 81.41%
56,536,575 90.85%
(17,727,168) 103.06%
$ 1,748,147 $ 434,740 75.13% $
1,622,719 484,064 70.17%
1,129,276 189,578 83.21%
1,084,275 315,939 70.86%
1,005,846 390,714 61.16%
1,057,295 610,629 42.25%
900,721 596,993 33.72%
714,036 507,458 28.93%
$ 5,151,124 $ 5,151,124 0.00% $
8,600, 801 8,600,801 0.00%
7,999,872 7,999,872 0.00%
8,402,3 51 8,402,3 51 0.00%
8,434,597 8,434,597 0.00%
9,926,810 9,926,810 0.00%
8,642,414 8,642,414 0.00%
9,281,796 9,281,796 0.00%
$ 1,452,500,000
1,318,400,000
1,260,500,000
1,221,600,000
1,152,800,000
1,067,900,000
999,800,000
$ 433,600,000 70.15% $
49,500,000 96.25%
112,600,000 91.07%
129,700,000 89.38%
194,900,000 83.09%
223,000,000 79.12%
246,600,000 75.34%
City of Miami Other Post Employment Benefits (d)
10/1/2006 $ - $ 480,319,812 $ 480,319,812 0.00%
90,974,647
82,052,702
75,609,062
71,485,284
72,521,132
70,717.807
70,393,730
66,650,450
632,259
734,116
643,770
455,220
487,639
448,457
411,278
363,176
90,974,647
82,052,702
75,609,062
71,485,284
72,521,132
70,717,807
70,393,730
66,650,450
129,400,000
103,600,000
90,400,000
91,500,000
89,200,000
98,900,000
96,900,000
128.42%
129.28%
150.16%
220.79%
200.43%
179.42%
80.31%
-26.60%
68.76%
65.94%
29.45%
69.40%
80.12%
136.16%
145.16%
139.73%
5.66%
10.48%
10.58%
11.75%
11.63%
14.04%
12.28%
13.93%
335.09%
47.78%
124.56%
141.75%
218.50%
225.48%
254.49%
$ 187,489,148 256.19%
a. For information regarding pension contribution percentage rates, assumptions, amortization method, see Note 10.
b. Calculated using Entry Age Normal Actuarial Accrued Liability
c. Calculated using the Aggregate Cost Method.
d. Amounts based on actuarial valuation. No assets existed in the plan at September 30, 2009
e. EORT is not reflected on this schedule since it uses the aggregate method which does not separately
identify an actuarial accrued liability.
85
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86
Non -major 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 (OMNI CRA) — To account for
revenues and expenditures to be used for general operations in the defined
OMNI Community Redevelopment Area.
Community Redevelopment Agency (Midtown CRA) — To account for
revenues and expenditures to be used for special operations in the defined
Midtown Community Redevelopment Area.
Community Redevelopment Agency (SEOPW) — To account for revenues
and expenditures to be used for special operations in the defined Southeast
Overtown Park West Community Redevelopment Area.
Homeless Program — To account for the activities of the City's homeless
program.
Community Development — To account for the proceeds from the Federal
government under the U.S. Department of Housing and Urban Development.
Choice Housing Vouchers — To account for the monies received for
administration and assistance to be provided in accordance with Section 8 of
the U.S. Housing Act of 1937, as amended, under the Choice Housing
Voucher Program.
State Housing Initiatives Program (SHIP) — To account for the monies
received from the State of Florida Housing Finance Corporation to used to
provide home ownership and rental housing programs at the local level.
Convention Center — To account for the operations of the City of Miami/
University of Miami James L. Knight International Center and Parking
Garage.
87
Non -major Governmental Funds
SPECIAL REVENUE FUNDS
Economic Development & Planning Services — To account for the
operations of the Economic Development and Planning Services.
Net Offices — To account for the operations of the City's Neighborhood
Enhancement Teams (Net Offices).
Parks & Recreation Services — To account for the operations of the Parks
and Recreation Services.
Police Services — To account for the proceeds of various grants from Local,
State, and Federal Agencies that are expended for police activities.
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 to be used for maintenance of streets, highways, sidewalks and
infrastructure.
City Clerk Services — To account for the operations of the Passport Facility,
Municipal Archives and Records, and related programs.
Local Option Gas Tax (LOGT) — To account for the Local Option Gas Tax
levied on the purchases of gasoline to be used for street improvements.
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.
General Special Revenue— To account for activities that are designated as
special revenue which do not fall into one of the previous special revenue
categories.
88
Non -major Governmental Funds
SPECIAL REVENUE FUNDS
Departmental Improvement Initiatives — To account for the funds
designated for the City of Miami initiatives related to quality of life and
technology.
Transportation and Transit — To account for the operations of the City's
transit and transportation projects.
Public Services Tax — To accounts for the utility service tax levied on
purchases of communication and other utility services.
Liberty City Revitalization Trust — To account for the revitalization efforts
for the redevelopment of the Liberty City Community Revitalization District.
Virginia Key Beach Trust — To account for the activities to preserve, restore,
and maintain the Historic Virginia Key Beach Park.
Gusman and Olympia — To account for the activities of Gusman and
Olympia Facilities.
89
Non -major Governmental Funds
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources,
payments 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.
SEOPW CRA Other Special Obligation Bonds — To account for monies for
payment of principal, interest, and other costs related to various CRA special
obligation bonds and loans.
90
Non -major Governmental Funds
CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the acquisition and construction
of major capital facilities.
SEOPW 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 as parks, elderly and youth day care centers.
Disaster Recovery — To account for revenue received from the Federal
Emergency Management Agency (FEMA), insurance and other agencies as
reimbursement for city-wide disasters in the areas of debris removal, roads
and bridges, buildings and equipment, parks, marinas, stadiums and other
measures of relief.
Mass Transit — To account for the expenditures related to mass transit.
91
Assets
Cash, Cash Equivalents and Investments
Restricted Cash and Investments
Receivables
(Net of Allowances for Uncollectibles):
Accounts
Taxes
Due from Other Governments
Accrued Interest
Other Assets
Total Assets
City of Miami, Florida
Combining Balance Sheet
Non -major Governmental Funds
September 30, 2009
Special Revenue Funds
Homeless Community
Omni CRA Midtown CRA SEOPW CRA Program Development
$ 32,486,115 $ - $ 17,544,160 $ $ 5,803,059
4,004,527
62,042
42,686 453 216,170
320,700 5,096,040
38,273 9,044
$ 32,548,157 $ - $ 17,625,119 $ 321,153 $ 15,128,840
Liabilities and Fund Balances
Liabilities:
Accounts Payable and Accrued Liabilities $ 1,535,205 $ $ 411,425 $ 99,728 $ 2,466,099
Due to Other Funds - - 294,667 -
Due to Other Governments 530,935 - 284,921 - 123,369
Deferred Revenue or Uneamed Revenue - - 32,871 1,374,622
Deposits - - 204,048
Total Liabilities 2,066,140 696,346 427,266 4,168,138
Fund Balances (Deficits):
Reserved for:
Encumbrances 496,690 314,021 64,364
Debt Service
Prepaid Items
Future Settlements -
Unreserved, Undesignated 29,985,327 16,614,752 (106,113) 10,896,338
Total Fund Balances 30,482,017 16,928,773 (106,113) 10,960,702
Total Liabilities and Fund Balances $ 32,548,157 $ - $ 17,625,119 $ 321,153 $ 15,128,840
Special Revenue Funds
Economic
Choice Development Parks & Law
Housing Convention & Planning Net Recreation Police Enforcement
Vouchers SHIP Center Services Offices Services Services Trust
$ 1,458,820 $ 4,012,731 $ 2,642,160 $ 5,616,487 $ 822,622 $ 1,433,044 $ 7,102,688 $ 3,704,905
177,124 - -
318,904 15,674 6,802 738,970
472,417 783,534 - 244,575 20,000 367,716 181,652 -
- 13,127 - 11,816 10,223
$ 1,931,237 $ 4,809,392 $ 3,138,188 $ 5,861,062 $ 858,296 $ 1,807,562 $ 8,035,126 $ 3,715,128
$ 9,725 $ 104,252 $ 555,974 $ 749,837 $ 567,983 $ 216,283 $ 998,775 $ 106,755
1,582,990
4,375,876
1,592,715
4,480,128 555,974
61,037 20,000
3,810
810,874 591,793
7,823
332,102 -
112,413
224,106
1,330,877 219,168
1,905 96 271 20,000 167,027 65,672 108,693 144,073
336,617 329,168 2,581,943 5,030,188 99,476 1,517,784 6,595,556 3,351,887
338,522 329,264 2,582,214 5,050,188 266,503 1,583,456 6,704,249 3,495,960
$ 1,931,237 $ 4,809,392 $ 3,138,188 $ 5,861,062 $ 858,296 $ 1,807,562 $ 8,035,126 $ 3,715,128
(continued)
City of Miami, Florida
Combining Balance Sheet
Non -major Governmental Funds
September 30, 2009
Special Revenue Funds
Local General Departmental
Public Works City Clerk Option Stormwater Special Improvement
Services Services Gas Tax Utility Revenues Initiatives
Assets
Cash, Cash Equivalents and Investments $ 2,143,891 $ 488,495 $ $ - $ 3,771,746 $ 1,659,663
Restricted Cash and Investments -
Receivables
(Net of Allowances for Uncollectibles):
Accounts 1,239 -
Taxes - -
Due from Other Governments - 521,128 - 3,945 403,379
Accrued Interest 2,761 - - - -
Other Assets - -
Total Assets $ 2,146,652 $ 488,495 $ 522,367 $ - $ 3,775,691 $ 2,063,042
Liabilities and Fund Balances
Liabilities:
Accounts Payable and Accrued Liabilities $ $ 1,635 $ - $ $ 821 $ 343,998
Due to Other Funds - 522,367
Due to Other Governments -
Deferred Revenue or Unearned Revenue - 248,990
Deposits - -
Total Liabilities - 1,635 522,367 - 821 592,988
Fund Balances (Deficits):
Reserved for:
Encumbrances
Debt Service
Prepaid Items
Future Settlements
Unreserved, Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
18,632
44 91,017
2,128,020 486,860 3,774,826 1,379,037
2,146,652 486,860 3,774,870 1,470,054
$ 2,146,652 $ 488,495 $ 522,367 $ $ 3,775,691 $ 2,063,042
94
Special Revenue Funds Debt Service Funds
Liberty
Public City Gusman Total General Other Special
Transportation Services Revitalization Virginia Key and Special Obligation Obligation
& Transit Tax Trust Beach Trust Olympia Revenue Bonds Bonds
$ - $ - $ 983,743 $ 404,396 $ 1,734,927 $ 93,813,652 $ - $
153,411 - 4,335,062 840,502 13,408,647
2,770,042 1,000 - 419,664 4,531,604 -
- 1,556,354
2,649,950 6,026,810 36,550 - 17,128,396
120 1,505 148,911 136,956
- - 17,692 17,692 -
$ 2,649,950 $ 8,796,852 $ 1,021,413 $ 559,312 $ 2,172,283 $ 119,975,317 $ 2,396,856 $ 13,545,603
$ 22,546 $ - $ 41,163 $ 14,141 $ 461,482 $ 8,707,827 $ 53 $
1,782,810 5,011,251 - - - 7,611,095
- 173,969 - 657,990 1,771,184
948,000 6,250 2,000 888,997 9,881,558 900,440
- - 114,509 434,780 -
2,753,356 5,011,251 221,382 19,641 2,122,978 28,409,944 900,493
1,690 - 12,006 1,374 - 1,507,575
- - - 1,496,363 13,545,603
3,785,601 - - - 3,785,601
(105,096) - 788,025 538,297 49,305 86,272,197
(103,406) 3,785,601 800,031 539,671 49,305 91,565,373 1,496,363 13,545,603
$ 2,649,950 $ 8,796,852 $ 1,021,413 $ 559,312 $ 2,172,283 $ 119,975,317 $ 2,396,856 $ 13,545,603
(continued)
95
City of Miami, Florida
Combining Balance Sheet
Non -major Governmental Funds
September 30, 2009
Debt Service Funds Capital Projects Funds
SEOPW CRA SEOPW
Other Special Total Community
Obligation Debt Redevelopment Sanitary
Bonds Service Agency Public Safety Sewers
Assets
Cash, Cash Equivalents and Investments $ 145,732 $ 145,732 $ 3,133,061 $ 14,832,801 $ 27,464,289
Restricted Cash and Investments 636,537 14,885,686 - 4,438,436 -
Receivables
(Net of Allowances for Uncollectibles).
Accounts
Taxes - 1,556,354 -
Due From Other Governments - - 11,527 -
Accrued Interest 136,956 6,905 - 54,582
Other Assets - - - -
Total Assets $ 782,269 $ 16,724,728 8 3,139,966 $ 19,282,764 $ 27,518,871
Liabilities and Fund Balances
Liabilities:
Accounts Payable and Accrued Liabilities $ $ 53 $ - $ 1,083,997 $
Due to Other Funds - -
Due to Other Governments - -
Deferred Revenue or Unearned Revenue - 900,440 - 9,656,822
Deposits - -
Total Liabilities 900,493 - 10,740,819
Fund Balances (Deficits):
Reserved for:
Encumbrances - - - 2,603,830
Debt Service 782,269 15,824,235 - -
Prepaid Items - -
Future Settlements - - -
Unreserved, Undesignated - 3,139,966 5,938,115 27,518,871
Total Fund Balances 782,269 15,824,235 3,139,966 8,541,945 27,518,871
Total Liabilities and Fund Balances $ 782,269 $ 16,724,728 $ 3,139,966 $ 19,282,764 $ 27,518,871
Capital Projects Funds
Total
Total Non -Major
Storm Solid Public Parks & Disaster Mass Capital Governmental
Sewers Waste Facilities Recreation Recovery Transit Projects Funds
$ 7,570,721 $ 589,691 $ 18,811,055 $ 32,445,509 $ - $ 5,135,064 $ 109,982,191 $ 203,941,575
4,438,436 23,659,184
22,015 - - - 22,015 4,553,619
- - - - - - - 1,556,354
2,861,186 205,124 1,204,846 248,167 589,925 5,120,775 22,249,171
- - - 61,487 347,354
- 17,692
$ 10,431,907 $ 611,706 $ 19,016,179 $ 33,650,355 $ 248,167 $ 5,724,989 $ 119,624,904 $ 256,324,949
$ 2,233,688 $
3,206,427
- $ 1,221,936 $ 3,805,062 $ 486,433 $ 22,728 $ 8,853,844 $ 17,561,724
- - 194,471 - 194,471 7,805,566
- - - - - 1,771,184
75,000 6,233,358 761,165 248,167 415,472 20,596,411 31,381,909
- - - - - - 434,780
5,440,115 75,000 7,455,294 4,566,227 929,071 438,200 29,644,726 58,955,163
2,584,398
536,705 8,196,358
11,961,997
308,652 1,530,898 27,722,838 29,230,413
15,824,235
- - - - - - 3,785,601
2,407,394 1 3,364,527 17,122,131 (989,556) 3,755,891 62,257,340 148,529,537
4,991,792 536,706 11,560,885 29,084,128 (680,904) 5,286,789 89,980,178 197,369,786
$ 10,431,907 $ 611,706 $ 19,016,179 $ 33,650,355 $ 248,167 $ 5,724,989 $ 119,624,904 $ 256,324,949
City of Miami, Florida
Combining Statement of Revenues, Expenditures, and Changes In Fund Balances
Non -major Governmental Funds
For The Year Ended September 30, 2009
Special Revenue Funds
Choice
Homeless Community Housing
Omni CRA Midtown CRA SEOPW CRA Program Development Vouchers
Revenues
Property Taxes $ 8,925,576 $ 3,421,268 $ 4,309,075 $ - $ - $
Franchise Fees and Other Taxes - - - -
Licenses and Permits - - - -
Fines and Forfeitures - -
Intergovernmental Revenues 6,128,262 2,605,075 618,768 29,816,862 1,668,545
Charges for Services - 236,723 -
Interest 417,398 218,861 10,891 16,762
Impact Fees - - -
Other 767,287 11,465 182,725 8,378
Total Revenues 15,471,236 3,421,268 8,137,021 630,233 30,010,478 1,693,685
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 Expenditures
10,381,852 3,391,730 5,659,953
10,381,852 3,391,730
1,250,593
5,659,953 1,250,593
30,523,816
1,554,130
30,523,816 1,554,130
5,089,384 29,538 2,477,068 (620,360) (513,338) 139,555
Other Financing Sources (Uses)
Transfers In - 1,429,538 804,217 300,000
Transfers Out (388,185) (29,538) 223,339 (1,074,843)
Proceeds Received From Long -Term Debt -
Payment To Escrow Agent For Refunding - -
Premium (Discount) Long -Term Debt
Total Other Financing Sources (Uses) (388,185) (29,538) 1,652,877 804,217 (774,843)
Net Changes in Fund Balances 4,701,199 4,129,945 183,857 (1,288,181) 139,555
Fund Balances- Beginning 25,780,818 - 12,798,828 (289,970) 12,248,883 198,967
Fund Balances- Ending $ 30,482,017 $ $ 16,928,773 $ (106,113) $ 10,960,702 $ 338,522
98
Special Revenue Funds
SHIP
Economic
Development Parks & Law
Convention & Planning Net Recreation Police Enforcement
Center Services Offices Services Services Trust
$ $ $ - $ $ - $ $
13,750 58,980
- 36,236 - - - -
3,169,072 2,082,312 314,579 59,914 1,843,050 3,849,506
6,556,921 3,865 177,896 892,717 541,351
58,306 319 11,029 3,313 739 94,325
186,455 65 3,682 386,413
3,413,833 8,675,788 343,288 244,805 3,181,899
3,084,569
998,434
50.258
3,563
4,485,182 1,052,255
3,797,155
3,084,569 3,797,155
505,646
9;235,227
505,646 9,235,227
2,587,518
2,587,518
4,147,713 1,520,398
4,147,713 1,520,398
329,264 4,878,633 (162,358) (8,990,422) 594,381 337,469 (468,143)
2,816,018 82,099
(5,562,511) (289,595)
8,333,613 11,919
(667,254)
(2,746,493) (207,496) 8,333,613 (667,254) 11,919 -
329,264 2,132,140 (369,854) (656,809) (72,873) 349,388 (468,143)
450,074 5,420,042 923,312 1,656,329 6,354,861 3,964,103
$ 329,264 $ 2,582,214 $ 5,050,188 $ 266,503 $ 1,583,456 $ 6,704,249 $ 3,495,960
(continued)
City of Miami, Florida
Combining Statement of Revenues, Expenditures, and Changes In Fund Balances
Non -major Governmental Funds
For The Year Ended September 30, 2009
Special Revenue Funds
Local General Departmental
Public Works City Clerk Option Stormwater Special Improvement
Services Services Gas Tax Utility Revenue Initiatives
Revenues
Property Taxes $ $ - $ - $ $ - $
Franchise Fees and Other Taxes - 6,595,240 -
Licenses and Permits - - - - -
Fines and Forfeitures -
Intergovernmental Revenues - - 43,945 2,348,564
Charges for Services 228,061 104,982 -
Interest 16,365 - -
Impact Fees - -
Other 1,516 55,225
Total Revenues 244,426 106,498 6,595,240 43,945 2,403,789
Expenditures
Current Operating:
General Government 43,559 - 66,474 3,284,954
Planning and Development - - - - -
Community Development - -
Community Redevelopment Areas - - -
Public Works 97,419 - -
Public Safety - - -
Public Facilities - - -
Parks and Recreation - - -
Debt Service:
Principal - - -
Interest and Other Charges - - - -
Capital Outlay
Total Expenditures 97,419 43,559 - 66,474 3,284,954
Excess (Deficiency) of Revenues
Over Expenditures 147,007 62,939 6,595,240 (22,529) (881,165)
Other Financing Sources (Uses)
Transfers In 35,000 - 5,344,257 865,400
Transfers Out (1,324,000) (2,381) (6,595,240) (262,122) (6,539,021) (868,379)
Proceeds Received From Long -Term Debt - - -
Payment To Escrow Agent For Refunding
Premium (Discount) Long -Term Debt
Total Other Financing Sources (Uses) (1,324,000) 32,619 (6,595,240) (262,122) (1,194,764) (2,979)
Net Changes in Fund Balances (1,176,993) 95,558 - (262,122) (1,217,293) (884,144)
Fund Balances - Beginning 3,323,645 391,302 - 262,122 4,992,163 2,354,198
Fund Balances - Ending $ 2,146,652 $ 486,860 $ - $ - $ 3,774,870 $ 1,470,054
100
Special Revenue Funds Debt Service Funds
Liberty
Public City Gusman Total General Other Special
Transportation Services Revitalization Virginia Key and Special Obligation Obligation
& Transit Tax Trust Beach Trust Olympia Revenue Bonds Bonds
$ - $ - $ $ - $ $ 16,655,919 $ 21,377,549 $
64,010,537 70,605,777 -
- - 72,730 - - - 1,034,670
11,611,218 123,877 44,004 801,701 67,129,254 - - 92,059 412,864 9,247,439 -
1,561 5,857 - 905,984 6,262 599,508
157,238 620,616 2,384,628
11,611,218 64,010,537 125,438 299,158 1,835,181 168,036,401 21,383,811 599,508
432,492 - - 13,062,706
505,646
36,413,108
710,694 20,144,229
97,419
5,668,111
1,213,135 5,010,290
1,749,226 - 4,336,744
10,3 35,262 13,045,7 59
12,228,340 19,536,875
697,909 697,909 - -
432,492 710,694 1,749,226 1,911,044 85,936,162 22,563,602 32,582,634
11,178,726 64,010,537 (585,256) (1,450,068) (75,863) 82,100,239 (1,179,791) (31,983,126)
530,000 1,300,000 21,852,061 - 34,531,571
(11,282,132) (64,339,922) - - (99,001,784) -
455,355 37,470,500
(32,366,235)
82,287 (876,267)
(11,282,132) (64,339,922) 530,000 1,300,000 (77,149,723) 537,642' 38,759,569
(103,406) (329,385) (55,256) (150,068) (75,863) 4,950,516 (642,149) 6,776,443
4,114,986 855,287 689,739 125,168 86,614,857 2,138,512 6,769,160
(103,406) $ 3,785,601 $ 800,031 $ 539,671 $ 49,305 $ 91,565,373 $ 1,496,363 $ 13,545,603
(continued)
101
City of Miami, Florida
Combining Statement of Revenues, Expenditures, and Changes In Fund Balances
Non -major Governmental Funds
For The Year Ended September 30, 2009
Debt Service Funds Capital Projects Funds
SEOPW CRA SEOPW
Other Special Total Community
Obligation Debt Redevelopment
Bonds Service Agency
Public Safety
Sanitary
Sewers
Revenues
Property Taxes $ - $ 21,377,549 $ - $ $
Franchise Fees and Other Taxes -
Licenses and Permits -
Fines and Forfeitures -
Intergovemmental Revenues 300,000 300,000 27,990
Charges for Services - - 42,041 -
Interest 493 606,263 331,766
Impact Fees -
Other
Total Revenues 300,493 22,283,812 42,041 27,990 331,766
Expenditures
Current Operating:
General Government
Planning and Development
Community Development - - -
Community Redevelopment Areas
Public Works
Public Safety - 218,642
Public Facilities - -
Parks and Recreation -
Debt Service: -
Principal 185,000 23,566,021 -
Interest and Other Charges 162,987 31,928,202 - Capital Outlay - - 29,863,361 -
Total Expenditures 347,987 55,494,223 30,082,003
Excess (Deficiency) of Revenues
Over Expenditures (47,494) (33,210,411) 42,041 (30,054,013) 331,766
Other Financing Sources (Uses)
Transfers In 47,988 34,579,559 9,421,913
Transfers Out (1,400,000) (1,400,000) - (1,356,355)
Proceeds Received From Long -Term Debt 37,925,855
Payment To Escrow Agent For Refunding (32,366,235)
Premium (Discount) Long -Term Debt (793,980)
Total Other Financing Sources (Uses) (1,352,012) 37,945,199 - 8,065,558
Net Changes in Fund Balances (1,399,506) 4,734,788 42,041 (21,988,455) 331,766
Fund Balances - Beginning 2,181,775 11,089,447 3,097,925 30,530,400 27,187,105
Fund Balances- Ending $ 782,269 $ 15,824,235 $ 3,139,966 $ 8,541,945 $ 27,518,871
102
Capital Projects Funds
Total
Total Non -Major
Storm Solid Public Parks & Disaster Mass Capital Governmental
Sewers Waste Facilities Recreation Recovery Transit Projects Funds
1,914,512
1,914,512
$ - $ - $ $ - $ $ - $ 38,033,468
70,605,777
- - - 72,730
10,279 - - 10,279 1,044,949
- 2,494,641 5,461,206 - 684,230 10,582,579 78,011,833
126,700 - - 168,741 9,416,180
- 15,094 346,860 1,859,107
2,697 • 6,250 - 8,947 2,393,575
12,976 2,627,591 5,476,300 684,230 11,117,406 201,437,619
37,106 - 4,223 1,329,757 1,371,086 14,433,792
- 505,646
36,413,108
20,144,229
136,918 - - 136,918 234,337
- - 218,642 5,886,753
1,646,982 - 1,646,982 6,657,272
- 573,520 - 573,520 4,910,264
11,820,269 2,018,741
11,857,375 2,155,659
(9,942,863) (2,142,683)
23,566,021
31,928,202
5,487,639 15,867,766 877,542 31,465 65,966,783 66,664,692
7,134,621 16,441,286 881,765 1,361,222 69,913,931 211,344,316
(4,507,030) (10,964,986) (881,765) (676,992) (58,796,525) (9,906,697)
6,233,428 2,948,421 3,292,076 16,913,485 18,966 2,375,186 41,203,475 97,635,095
(1,628,869) (819,000) (3,113,703) (7,466,145) (14,384,072) (114,785,856)
- - 37,925,855
(32,366,235)
(793,980)
4,604,559 2,129,421 178,373 9,447,340 18,966 2,375,186 26,819,403 (12,385,121)
(5,338,304) (13,262) (4,328,657) (1,517,646) (862,799) 1,698,194 (31,977,122) (22,291,818)
10,330,096 549,968 15,889,542 30,601,774 181,895 3,588,595 121,957,300 219,661,604
$ 4,991,792 $ 536,706 $ 11,560,885 $ 29,084,128 $ (680,904) $ 5,286,789 $ 89,980,178 $ 197,369,786
103
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - OMNI CRA
For The Year Ended September 30, 2009
Budgeted Amounts
Original Final
Actual Amounts
Variance with
Final Budget
Positive (Negative)
Revenues:
Property Taxes $ 14,567,486 $ 14,522,904 $ 15,053,838 $ 530,934
Interest - - 417,398 417,398
Total Revenues 14,567,486 14,522,904 15,471,236 948,332
Expenditures:
Current Operating:
Community Redevelopment Areas
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
39,643,127 39,903,712
39,643,127 39,903,712
(25,075,641) (25,380,808)
10,381,852 29,521,860
10,381,852 29,521,860
5,089,384 30,470,192
Other Financing Uses:
Transfers Out (757,405) (756,359) (388,185) 368,174
Total Other Financing Uses (757,405) (756,359) (388,185) 368,174
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
(25,833,046) (26,137,167)
4,701,199
25,780,818
30,838,366
25,780,818
$ (25,833,046) $ (26,137,167) $ 30,482,017 $ 56,619,184
104
Revenues:
Property Taxes
Total Revenues
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Midtown CRA
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
$ 3,430,948
3,430,948
$ 3,421,268 $ 3,421,268 $
3,421,268 3,421,268
Expenditures:
Current Operating:
Community Redevelopment Areas - 4,494,464 3,391,730 1,102,734
Total Expenditures - 4,494,464 3,391,730 1,102,734
Excess of Revenues Over Expenditures
3,430,948 (1,073,196)
29,538 1,102,734
Other Financing Uses:
Transfers Out (41,309) (41,213) (29,538) 11,675
Total Other Financing Uses (41,309) (41,213) (29,538) 11,675
Net Change in Fund Balance 3,389,639 (1,114,409) - 1,114,409
Fund Balance - Beginning of Year - - -
Fund Balance - End of Year $ 3,389,639 $ (1,114,409) $ $ 1,114,409
105
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - SEOPW CRA
For The Year Ended September 30, 2009
Revenues:
Property Taxes
Intergovernmental Revenues
Charges for Services
Interest
Other
Total Revenues
Expenditures:
Current Operating:
General Govemment
Community Redevelopment Areas
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Budgeted Amounts
Original Final
$ 7,736,011
849,119
8,585,130
$ 7,714,897
847,009
8,561,906
1,427,354 1,556,067
8,497,776 7,994,600
9,925,130 9,550,667
(1,340,000) (988,761)
Other Financing Sources (Uses):
Transfers In 1,400,000 1,400,000
Transfers Out (60,000)
Total Other Financing Sources (Uses) 1,340,000 988,761
(411,239)
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
Actual Amounts
$ 4,309,075
2,605,075
236,723
218,861
767,287
8,137,021
5,659,953
5,659,953
2,477,068
1,429,538
223,339
1,652,877
4,129,945
Variance with
Final Budget
Positive (Negative)
$ (3,405,822)
1,758,066
236,723
218,861
767,287
(424,885)
1,556,067
2,334,647
3,890,714
3,465,829
29,538
634,578
664,116
4,129,945
12,798,828 12,798, 828
16,928,773 $ 16,928,773
106
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Homeless Program
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Intergovernmental Revenues $ 357,667 $ 943,981 $ 618,768 $ (325,213)
Other - 26,309 11,465 (14,844)
Total Revenues 357,667 970,290 630,233 (340,057)
Expenditures:
Current Operating:
Community Development
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources:
Transfers In
Total Other Financing Sources
1,078,111 1,774,507
1,078,111 1,774,507
1,250,593 523,914
1,250,593 523,914
(720,444) (804,217) (620,360) 183,857
720,444
720,444
804,217 804.217
804,217 804,217
Net Change in Fund Balance - - 183,857 183,857
Fund Balance - Beginning of Year - - (289,970) (289,970)
Fund Balance - End of Year $ - $ $ (106,113) $ (106,113)
107
City of Miami, Florida
Schedule of Revenues, Expenditures, and Changes In Fund Balance
Budget and Actual - Community Development Fund
For The Year Ended September 30, 2009
Budgeted Amounts
Original Final
Actual Amounts
Revenues:
Charges for Services $ 30,361,327 $ 77,313,394 $
Interest 10,891
Other 182,725
Total Revenues 30,361,327 77,507,010
10,891
182,725
Variance with
Final Budget
Positive (Negative)
$ (77,313,394)
30,010,478 (47,496,532)
Expenditures:
Current Operating:
Community Development 30,361,327 76,589,688 30,523,816 46,065,872
Total Expenditures 30,361,327 76,589,688 30,523,816 46,065,872
Excess (Deficiency) of Revenues Over Expenditures 917,322 (513,338) (1,430,660)
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
382,678 300,000 (82,678)
(1,300,000) (1,074,843) 225,157
(917,322)
(774,843) 142,479
Net Change in Fund Balance - (1,288,181) (1,288,181)
Fund Balance - Beginning of Year 12,248,883 12,248,883
Fund Balance - End of Year $ $ $ 10,960,702 $ 10,960,702
108
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Choice Housing Vouchers Program
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Intergovernmental Revenues $ 1,939,738 $ 1,914,598 $ 1,668,545 $ (246,053)
Interest 16,762 16,762
Other 8,378 8,378
Total Revenues 1,939,738 1,939,738 1,693,685 (246,053)
Expenditures:
Current Operating:
Community Development
Total Expenditures
Excess of Revenues Over Expenditures
1,939,738 1,939,738
1,939,738 1,939,738
1,554,130 385,608
1,554,130 385,608
139,555 139,555
Net Change in Fund Balance - 139,555 139.555
Fund Balance - Beginning of Year - - 198,967 198,967
Fund Balance - End of Year $ $ $ 338,522 $ 338,522
109
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - SHIP
For The Year Ended September 30, 2009
Budgeted Amounts
Original Final
Revenues:
Intergovernmental Revenues $ 2,216,228
Interest -
Other
$ 5,148,920
58,306
186,455
Total Revenues 2,216,228 5,393,681
Expenditures:
Current Operating:
Community Development 2,216,228 5,393,681
Total Expenditures 2,216,228 5,393,681
Excess (Deficiency) of Revenues Over Expenditures
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
Actual Amounts
$ 3,169,072
58,306
186,455
3,413,833
3,084,569
3,084,569
329,264
329,264
Variance with
Final Budget
Positive (Negative)
$ (1,979,848)
(1,979,848)
2,309,112
2,309,112
329,264
329,264
$ $ $ 329,264 $ 329,264
110
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Convention Center
For The Year Ended September 30, 2009
Revenues:
Fines and Forfeitures
Intergovernmental Revenues
Charges for Services
Interest
Total Revenues
Expenditures:
Current Operating:
Public Facilities
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year $ $
Budgeted Amounts
Original Final
2,056,176
6,767,134
6,000
8,829,310
$ 36,236
2,277,999
6,767,134
6,000
9,087,369
5,767,920 4,325,979
5,767,920 4,325,979
3,061,390 4,761,390
2,834,815
(5,896,205)
2,551,120
(7,312,510)
(3,061,390) (4,761,390)
111
Variance with
Final Budget
Actual Amounts Positive (Negative)
$ 36,236 $
2,082,312 (195,687)
6,556,921 (210,213)
319 (5,681)
8,675,788
3,797,155
3,797,155
4,878,633
(411,581)
528,824
528,824
117,243
2,816,018 264,898
(5,562,511) 1,749,999
(2,746,493) 2,014,897
2,132,140 2,132,140
450,074 450,074
$ 2,582,214 $ 2,582,214
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Economic Development & Planning Services
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Licenses and Permits $ $ 13,750 $ 13,750 $
Intergovernmental Revenues 970,000 970,000 314,579 (655,421)
Charges for Services 3,865 3,865
Interest 11,029 11,029
Other 4,568,674 5,070,616 65 (5,070,551)
Total Revenues 5,538,674 6,069,260 343,288 (5,725,972)
Expenditures:
Current Operating:
Planning and Development
Total Expenditures
5,538,674 6,379,974
5,538,674 6,379,974
505,646 5,874,328
505,646 5,874,328
Excess (Deficiency) of Revenues Over Expenditures (310,714) (162,358) 148,356
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
82,099
(289,595)
(207,496)
(310,714) (369,854)
5,420,042
82,099
(289,595)
(207,496)
(59,140)
5,420,042
$ (310,714) $ 5,050,188 $
5,360,902
112
Revenues:
Intergovernmental Revenues
Charges for Services
Interest
Other
Total Revenues
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - NET Offices Fund
For The Year Ended September 30, 2009
Budgeted Amounts
Original Final
Actual Amounts
Variance with
Final Budget
Positive (Negative)
$ - $ 112,243 $ 59,914 $ (52,329)
285,000 858,549 177,896 (680,653)
3,313 3,313 -
1,007,788 239,001 3,682 (235,319)
1,292,788 1,213,106 244,805 (968,301)
Expenditures:
Current Operating:
General Government 9,626,401 9,546,719 9,235,227 311,492
Total Expenditures 9,626,401 9,546,719 9,235,227 311,492
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources:
Transfers In
Total Other Financing Sources
(8,333,613) (8,333,613)
8,333,613
8,333,613
(8,990,422) (656,809)
8,333,613 8,333,613
8,333,613 8,333,613
Net Change in Fund Balance (656,809) (656,809)
Fund Balance - Beginning of Year 923,312 923,312
Fund Balance - End of Year $ $ $ 266,503 $ 266,503
113
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Parks & Recreation Services Fund
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenue:
Licenses and Permits $ $ 58,980 $ 58,980 $ -
Intergovernmental Revenues 1,674,579 1,843,050 168,471
Charges for Services 2,291,462 1,693,420 892,717 (800,703)
Interest - 739 739
Other 386,413 386,413
Total Revenues 2,291,462 3,814,131 3,181,899 (632,232)
Expenditures:
Current Operating:
Parks and Recreation
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
2,291,462 3,814,131
2,291,462 3,814,131
2,587,518 1,226,613
2,587,518 1,226,613
594,381 594,381
Other Financing Sources (Uses):
Transfers Out - (667,254) (667,254)
Total Other Financing Sources (Uses) - (667,254) (667,254)
Net Change in Fund Balance - - (72,873) (72,873)
Fund Balance - Beginning of Year - 1,656,329 1,656,329
Fund Balance - End of Year $ - $ - $ 1,583,456 $ 1,583,456
114
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Police Services Fund
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Intergovernmental Revenues $ 16,855,683 $ 3,336,409 $ 3,849,506 $ 513,097
Charges for Services - 65,680 541,351 475,671
Interest 94,325 94,325
Other - 5,355,765 - (5,355,765)
Total Revenues 16,855,683 8,852,179 4,485,182 (4,366,997)
Expenditures:
Current Operating:
Public Safety 16,855,683 6,990,762 4,147,713 2,843,049
Capital Outlay - 2,238,713 - 2,238,713
Total Expenditures 16,855,683 9,229,475 4,147,713 5,081,762
Excess (Deficiency) of Revenues Over Expenditures - (377,296) 337,469 714,765
Other Financing Sources:
Transfers In
Total Other Financing Sources
377,296
377,296
11,919 (365,377)
11,919 (365,377)
Net Change in Fund Balance 349,388 349,388
Fund Balance - Beginning of Year - - 6,354,861 6,354,861
Fund Balance - End of Year $ $ - $ 6,704,249 $ 6,704,249
115
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Law Enforcement Trust Fund
For The Year Ended September 30, 2009
Budgeted Amounts
Original Final
Actual Amounts
Variance with
Final Budget
Positive (Negative)
Revenues:
Fines and Forfeitures $ 866,018 $ 866,018 $ 998,434 $ 132,416
Interest 10,636 10,636 50,258 39,622
Other 2,130,679 4,064,274 3,563 (4,060,711)
Total Revenues 3,007,333 4,940,928 1,052,255 (3,888,673)
Expenditures:
Current Operating:
Public Safety 3,007,333 4,112,405 1,520,398 2,592,007
Capital Outlay - 828,523 - 828,523
Total Expenditures 3,007,333 4,940,928 1,520,398 3,420,530
Excess (Deficiency) of Revenues Over Expenditures - - (468,143) (468,143)
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
(468,143) (468,143)
3,964,103 3,964,103
$ $ 3,495,960 $ 3,495,960
116
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Public Works Services Fund
For The Year Ended September 30, 2009
Budgeted Amounts
Original Final
Actual Amounts
Variance with
Final Budget
Positive (Negative)
Revenues:
Charges for Services $ $ 750,000 $ 228,061 $ (521,939)
Interest - 16,365 16,365
Other 1,294,889 2,313,458 - (2,313,458)
Total Revenues 1,294,889 3,079,823 244,426 (2,835,397)
Expenditures:
Current Operating:
Public Works 1,294,889 1,755,823 97,419 1,658,404
Total Expenditures 1,294,889 1,755,823 97,419 1,658,404
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources:
Transfers Out
Total Other Financing Sources
1,324,000 147,007 (1,176,993)
(1,324,000) (1,324,000)
(1,324,000) (1,324,000)
Net Change in Fund Balance (1,176,993) (1,176,993)
Fund Balance - Beginning of Year - 3,323,645 3,323,645
Fund Balance - End of Year $ $ $ 2,146,652 $ 2,146,652
117
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - City Clerk Services Fund
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Charges for Services $ 228,387 $ 391,301 $ 104,982 $ (286,319)
Other 25,000 1,516 (23,484)
Total Revenues 228,387 416,301 106,498 (309,803)
Expenditures:
Current Operating:
General Government
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
35,000 448,920 43,559 405,361
35,000 448,920
193,387 (32,619)
43,559 405,361
62,939 95,558
35,000 35,000 35,000
(228,387) (2,381) (2,381)
(193,387) 32,619 32,619
95,558
95,558
391,302 391,302
$ $ 486,860 $ 486,860
118
Revenues:
Franchise Fees and Other Taxes
Total Revenues
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Local Option Gas Tax
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
$ 7,254,152
7,254,152
$ 6,595,241 $ 6,595,241 $
6,595,241 6,595,241
Other Financing Sources (Uses):
Transfers In
Transfers Out (7,254,152) (6,595,241) (6,595,241)
Total Other Financing Sources (Uses) (7,254,152) (6,595,241) (6,595,241)
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year $ $ - $ - $
119
Revenues:
Intergovernmental Revenues
Total Revenues
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - General Special Revenue
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
$ 3,201,859 $ 5,064,159 $ 43,945 $ (5,020,214)
3,201,859 5,064,159 43,945 (5,020,214)
Expenditures:
Current Operating:
General Government 3,201,859 5,064,159 66,474 4,997,685
Total Expenditures 3,201,859 5,064,159 66,474 4,997,685
Excess (Deficiency) of Revenues Over Expenditures
(22,529) (22,529)
Other Financing Sources (Uses):
Transfers In 5,225,657 5,225,657 5,344,257 118,600
Transfers Out (5,225,657) (5,225,657) (6,539,021) (1,313,364)
Total Other Financing Sources (Uses) - - (1,194,764) (1,194,764)
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
120
(1,217,293) (1,217,293)
4,992,163 4,992,163
$ 3,774,870 $ 3,774,870
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Stormwater Utility Fund
For The Year Ended September 30, 2009
Revenues:
Franchise and Other Taxes
Total Revenues
Other Financing Sources (Uses):
Transfers Out
Total Other Financing Sources (Uses)
Budgeted Amounts
Original Final
$
- $ 262,122
Actual Amounts
$
Variance with
Final Budget
Positive (Negative)
$ (262,122)
262,122 (262,122)
(262,122) (262,122)
(262,122) (262,122)
Net Change in Fund Balance - (262,122) (262,122)
Fund Balance - Beginning of Year - - 262,122 262,122
Fund Balance - End of Year $ $ $ - $ -
121
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Departmental Improvement Initiatives Fund
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Intergovernmental Revenues $ $ 2,557,397 $ 2,348,564 $ (208,833)
Other 2,238,327 5,286,953 55,225 (5,231,728)
Total Revenues 2,238,327 7,844,350 2,403,789 (5,440,561)
Expenditures:
Current Operating:
General Government 3,221,884 8,356,207 3,284,954 5,071,253
Capital Outlay 367,321 - 367,321
Total Expenditures 3,221,884 8,723,528 3,284,954 5,438,574
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
(983,557) (879,178)
983,557 983,557
(104,379)
983,557 879,178
(881,165) (1,987)
865,400 (118,157)
(868,379) (764,000)
(2,979) (882,157)
Net Change in Fund Balance - (884,144) (884,144)
Fund Balance - Beginning of Year 2,354,198 2,354,198
Fund Balance - End of Year $ - $ $ 1,470,054 $ 1,470,054
122
Revenues:
Intergovernmental Revenues
Total Revenues
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Transportation & Transit Fund
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
$ 11,875,929 $ 11,875,929 $ 11,611,218 $ (264,711)
11,875,929 11,875,929 11,611,218 (264,711)
Expenditures:
Current Operating:
General Government 593,797 593,797 432,492 161,305
Total Expenditures 593,797 593,797 432,492 161,305
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses):
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
11,282,132 11,282,132
(11,282,132)
(11,282,132)
123
11,178,726 (103,406)
(11,282,132) (11,282,132)
(11,282,132) (11,282,132)
(103,406) (103,406)
$ $ (103,406) $ (103,406)
Revenues:
Franchise and Other Taxes
Total Revenues
City of Miami, Florida
Schedule of Revenues, Expenditures, and Changes In Fund Balance
Budget and Actual - Public Services Tax Fund
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
$ 61,287,667 $ 63,916,976 $ 64,010,537 $ 93,561
61,287,667 63,916,976 64,010,537 93,561
Other Financing Uses:
Transfers Out (61,287,667) (63,916,976) (64,339,922) (422,946)
Total Other Financing Uses (61,287,667) (63,916,976) (64,339,922) (422,946)
Net Change in Fund Balance (329,385) (329,385)
Fund Balance - Beginning of Year - 4,114,986 4,114,986
Fund Balance - End of Year $ - $ $ 3,785,601 $ 3,785,601
124
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Liberty City Revitalization Trust
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Intergovernmental Revenues $ 206,482 $ 206,482 $ 123,877 $ (82,605)
Interest 56,817 56,817 1,561 (55,256)
Other (82,605) (82,605) - 82,605
Total Revenues 180,694 180,694 125,438 (55,256)
Expenditures:
Current Operating:
Community Redevelopment Areas
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources:
Transfers In
Total Other Financing Sources
710,694
710,694
710,694 710,694
710,694 710,694
(530,000) (530,000) (585,256) (55,256)
530,000
530,000
530,000 530,000
530,000 530,000
Net Change in Fund Balance - - (55,256) (55,256)
Fund Balance - Beginning of Year - - 855,287 855,287
Fund Balance - End of Year $ $ - $ 800,031 $ 800,031
125
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Virginia Key Beach Trust
For The Year Ended September 30, 2009
Revenues:
Intergovernmental Revenues
Charges for Services
Interest
Other
Total Revenues
Expenditures:
Current Operating:
Parks and Recreation
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources:
Transfers In
Total Other Financing Sources
Net Change in Fund Balance
Fund Balance - Beginning of Year
Budgeted Amounts
Original Final Actual Amounts
$ 44,004 $ 44,004 $ 44,004
92,059 92,059 92,059
5,857 5,857 5,857
307,306 307,306 157,238
449,226 449,226 299,158
1,749,226 1,749,226
1,749,226 1,749,226
(1,300,000) (1,300,000)
1,300,000 1,300,000
1,300,000 1,300,000
Fund Balance - End of Year $ $
126
1,749,226
1,749,226
(1,450,068)
1,300,000
1,300,000
(150,068)
Variance with
Final Budget
Positive (Negative)
(150,068)
(150,068)
(150,068)
(150,068)
689,739 689,739
$ 539,671
$ 539,671
Revenues:
Intergovernmental Revenues
Charges for Services
Other
Total Revenues
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Gusman and Olympia Fund
For The Year Ended September 30, 2009
Budgeted Amounts
Original Final
$ 801,701
412,864
696,479
$ 801,701
412,864
696,479
1,911,044 1,911,044
Expenditures:
Current Operating:
Public Facilities 1,213,135 1,213,135
Capital Outlay 697,909 697,909
Total Expenditures 1,911,044 1,911,044
Excess (Deficiency) of Revenues Over Expenditures
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year $ $
127
Actual Amounts
Variance with
Final Budget
Positive (Negative)
$ 801,701 $
412,864
620,616
1,835,181
1,213,135
697,909
1,911,044
(75,863)
(75,863)
(75,863)
(75,863)
(75,863)
(75,863)
125,168 125,168
$ 49,305 $
49,305
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - General Obligation Bonds Fund
For The Year Ended September 30, 2009
Budgeted Amounts
Original Final
Actual Amounts
Variance with
Final Budget
Positive (Negative)
Revenues:
Property Taxes $ 21,825,297 $ 21,594,890 $ 21,377,549 $ (217,341)
Interest - 6,264 6,262 (2)
Other - 962,448 - (962,448)
Total Revenues 21,825,297 22,563,602 21,383,811 (1,179,791)
Expenditures:
Principal 10,335,262 10,335,262 10,335,262 -
Interest and Other Charges 11,490,035 12,228,340 12,228,340
Total Expenditures 21,825,297 22,563,602 22,563,602 -
Excess (Deficiency) of Revenues Over Expenditures
(1,179,791) (1,179,791)
Other Financing Sources (Uses):
Proceeds Receved from Long -Term Debi - 455,355 455,355
Premium (Discount) Long -Term Debt - - 82,287 82,287
Total Other Financing Sources (Uses) - 537,642 537,642
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
(642,149) (642,149)
2,138,512 2,138,512
$ $ 1,496,363 $ 1,496,363
128
Revenues:
Interest
Total Revenues
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Other Special Obligation Bonds Fund
For The Year Ended September 30, 2009
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
$ 615,159 $ 599,508 $ (15,651)
615,159 599,508 (15,651)
Expenditures:
Debt Service:
Principal 12,746,060 13,045,759 13,045,759 -
Interest and Other Charges 19,925,757 26,328,969 19,536,875 6,792,094
Total Expenditures 32,671,817 39,374,728 32,582,634 6,792,094
Excess (Deficiency) of Revenues Over Expenditures (32,671,817) (38,759,569) (31,983,126) 6,776,443
Other Financing Sources (Uses):
Transfers In 32,671,817 34,531,571 34,531,571
Proceeds Received From Long -Term Debt - 37,470,500 37,470,500
Payment To Escrow Agent For Refimding - (32,366,235) (32,366,235)
Premium (Discount) on Long -Term Debt (876,267) (876,267)
Total Other Financing Sources (Uses) 32,671,817 38,759,569 38,759,569
Net Change in Fund Balance 6,776,443 6,776,443
Fund Balance - Beginning of Year - - 6,769,160 6,769,160
Fund Balance - End of Year $ $ $ 13,545,603 $ 13,545,603
129
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - SEOPW CRA Other Special Obligation Bonds Fund
For The Year Ended September 30, 2009
Budgeted Amounts
Original Final
Actual Amounts
Variance with
Final Budget
Positive (Negative)
Revenues:
Intergovernmental Revenues $ 302,475 $ 300,000 $ 300,000 $
Interest - - 494 494
Other - 1,400,000 (1,400,000)
Total Revenues 302,475 1,700,000 300,494 (1,399,506)
Expenditures:
Debt Service:
Principal 185,000 185,000 185,000
Interest and Other Charges 165,463 162,988 162,988
Total Expenditures 350,463 347,988 347,988
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources:
Transfers In
Transfers Out
Total Other Financing Sources:
(47,988) 1,352,012 (47,494) (1,399,506)
47,988
47,988
47,988
(1,400,000)
47,988
(1,400,000)
(1,352,012) (1,352,012)
Net Change in Fund Balance (1,399,506) (1,399,506)
Fund Balance - Beginning of Year 2,181,775 2,181,775
Fund Balance - End of Year $ $ $ 782,269 $ 782,269
130
FIDUCIARY FUNDS
Fiduciary Funds are used to account for assets held by the City in a
trustee capacity.
Firefighters and Police Officers (FIPO) — This Pension Trust Fund is
used to account for the accumulation of resources to be used for
retirement benefits to Police and Firefighters. Resources are
contributed by employees at rates fixed by law and by the City at
amounts determined by annual actuarial valuations.
General Employees and Sanitation Employees (GESE) — These
Pension Trust Funds are used to account for the three separate GESE
Plans (GESE Members, Excess Plan and Staff Plan). The funds are
used to account for the accumulation of resources to be used for
retirement benefits to City employees, other than police and firefighters.
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 (EORT) — 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.
131
City of Miami, Florida
Combining Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2009
Employee Retirement Funds. Totals
General and General and General and Elected Officers' Employee
Firefighters and Sanitation (GESE) Sanitation (GESE) Sanitation (GESE) Retirement Trust Retirement
Police (FIPO) (Members) (Excess Plan) (Staff Plan) (EORT) Funds
Assets
Cash and Short -Tenn Investments $ 47,933,840 $ 409,246 $ 29,509 $
Accounts Receivable 7,985,130 6,021,956 38,720
Capital Assets 2,128,089 2,472,151 -
Prepaid Assets - 39,596 -
58,047,059 8,942,949 68,229
52,330 $
$ 48,424,925
14,045 806
4,600,240
39,596
52,330 - 67,110,567
Investments
U.S. Government Obligations 155,744,712 60,368,845 - 2,764,912 218,878,469
Corporate Bonds 218,576,713 81,436,364 597,704 - 300,610,781
Corporate Stocks 662,449,647 339,429,153 763,529 1,002,642,329
Money Market Funds and Commercial Paper 26,413,736 - 1,319,879 27,733,615
International Equity 72,968,950 - 72,968,950
Mutual Funds 62,210,518 - 62,210,518
Real Estate 86,991,353 27,038,652 114,030,005
Private Equity 23,027,115 - 23,027,115
Total Investments 1,281,969,008 534,686,750 1,361,233 4,084,791 1,822,101,782
Securities Lending Collateral
Total Assets
167,115,414 167,115,414
1,507,131,481 543,629,699 68,229 1,413,563 4,084,791 2,056,327,763
Liabilities
Obligations Under Security Lending 169,704,246 - - 169,704,246
Accounts Payable 268,013 736,552 68,229 1,072,794
Accrued Liabilities 62,210 518 - - 62,210,518
Payable for Securities Purchased 7,819,984 4,880,946 - 12,700,930
Total Liabilities 240,002,761 5,617,498 68,229 245,688,488
Net Assets
Held in Trust for Pension Benefits $ 1,267,128,720 $ 538,012,201 $ - $ 1,413,563 $ 4,084,791 $ 1,810,639,275
132
City of Miami, Florida
Combining Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30, 2009
Employee Retirement Funds Totals
General and General and General and Elected Officers' Employee
Firefighters and Sanitation (GESE) Sanitation (GESE) Sanitation (GESE) Retirement Trust Retirement
Police (FIFO) (Members) (Excess Plan) (Staff Plan) (EORT) Funds
Additions
Contributions:
Employer $ 36,993,395 $ 23,191,828 $ 464,325 $ 159,837 $ 412,588 $ 61,221,973
Plan Members 9,769,139 11,791,902 - 74,800 - 21,635,841
Total Contributions 46,762,534 34,983,730 464,325 234,637 412,588 82,857,814
Investment Earnings (Loss):
Net Increase (Decrease) in Fair
Value of Investments (33,354,980) (29,948,775)
Interest 24,003,374 7,948,557
Dividends 10,201,375 5,292,946
Other 1,676,922 233,967
Total Investment Earnings (Loss) 2,526,691 (16,473,305)
(1,253)
55
40,092
38,894
124,695
(63,305,008)
32,076,681
15,534,413
1,910,889
124,695 (13,783,025)
Less Investment Expenses 4,511,492 1,902,174 6,413,666
Net Investment Earnings (Loss)
(1,984,801) (18,375,479)
Reimbursement Income from City 2,836,790
Total 44,777,733 19,445,041
38,894
124,695 (20,196,691)
104,141 2,940,931
568,466 273,531 537,283 65,602,054
Deductions
Benefits 85,064,508 54,191,981 464,325 139,032 139,859,846
Refunds upon Resignation, Death, etc. 366,601 843,094 1,209,695
Distribution to Retirees 16,925,422 16,925,422
Administrative and Other Expenses 42,726 2,890,011 104,141 3,036,878
Total 102,399,257 57,925,086 568,466 139,032 161,031,841
Change in Net Assets (57,621,524) (38,480,045) - 273,531 398,251 (95,429,787)
Net Assets- Beginning of Year 1,324,750,244 576,492,246 1,140,032 3,686,540 1,906,069,062
Net Assets - End of Year $ 1,267,128,720 $ 538,012,201 $ $ 1,413,563 $ 4,084,791 $ 1,810,639,275
133
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134
STATISTICAL SECTION
FINANCIAL TRENDS
REVENUE CAPACITY
DEBT CAPACITY
DEMOGRAPHIC AND
ECONOMIC INFORMATION
OPERATING INFORMATION
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 otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
135
136
142
146
151
152
CITY OF MIAMI, FLORIDA
NET ASSETS BY COMPONENT
LAST FIVE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2005 2006 2007 2008 2009
Primary Government
Invested in Capital Assets, Net of Related Debt $ 608,958,407 $ 640,931,069 $ 730,272,844 $ 773,959,639 $ 791,005,790
Restricted 153,641,905 188,895,278 102,602,464 147,706,831 71,813,691
Unrestricted (82,047,220) (98,069,477) (93,712,582) (211,485,639) (237,191,255)
Total Primary Government Net Assets $ 680,553,092 $ 731,756,870 $ 739,162,726 $ 710,180,831 $ 625,628,226
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.
136
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
CITY OF MIAMI, FLORIDA
CHANGES IN NET ASSETS
LAST FIVE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2005 2006
2007
2008
2009
$ 78,336,822 $ 85,315,437
16.259,651 16,911,621
55,264,647 41,054,245
4,968,422 6,331,328
70,987,541 65,958,181
325,533,600 347,976,631
12, 949,751 14,917,431
24,293,055 25,718,056
22,201,669 21,560,094
26,147,088 26,690,642
636,942,246 652,433,666
$ 121,694,219
16,923,477
35,486,773
7,011,132
75,073,321
343,470,082
16,691,365
39,893,208
23,859,254
29,548,332
709,651,163
$ 140.680,932
16,217,858
42,029,139
13,904,297
72,572,813
370,007,019
15,354,423
39,550,244
27,206,895
$ 155,197,585
15.465,304
37,126,171
20,565,676
72.003,282
375,402,446
13,179,074
43,440,769
36,091,032
737,523,620 768,471,339
41,775,235 51,161,759
23,964,447 22,799,725
777,291 4,053,520
45,163 214.142
47,278,720 51,888,525
47,488,375 39,193,653
22,792,948 25,137,318
1,901,403 2,406,099
59,414,862 34,889,443
38,161,382 72,067,622
283.599,826 303,811,806
33,403,595 40,062,337
24,558,217 13, 076,692
2,301,538 702,888
1,414,979 1,140,923
46,587,956 48,488,699
22,952,364 16,577, 772
6,558,800 16,660,099
3,488,492 4,106,702
71,070,882 63,179,016
69,140,730 54,174,136
281,477,553 258,169,264
35,586,957
9,611,336
1,064,942
47,792.238
17,785,328
15,458,604
4,827,158
64,645,980
33,964,265
230,736,808
Net (Expense)/Revenue
Total Primary Government Net Expense $ (353,342,420)
$ (348,621,860) $ (428,173,610) $ (479,354,356)
$ (537,734,531)
General Revenues and Other Changes in Net Assets
Governmental Activities:
Taxes
Property Taxes, Levied for General Purposes $
Property Taxes, Levied for Debt Service
Franchise Taxes
State Revenue Sharing - Unrestricted
Sales and Other Use Tax
Public Service Taxes
Investment Earnings - Unrestricted
Gain (Loss) on Disposal of Capital Assets
Other
Special Item - Impairment Loss on Capital Assets
Total Primary Government
Change in Net Assets
Total Primary Government
191,640,650
20,368,722
35,918,724
12,581,352
23,422,160
61,114,292
5,866,114
(3,387,124)
1,891,124
349,416,014
$ 226,508,118
19,966,467
41,342,214
12,947,019
25,800,341
57,991,178
14,477,950
768,767
399,802,054
$ 275,012,727
19,886,776
42,257,282
13,073,886
25,505,412
58,099,069
23,837,450
1,502,044
(23,595,180)
435,579.466
$ 269,785,445
21,327,853
42,298,452
12,187,197
24,860,795
62,257,072
17,655,647
$ 283,516,182
21,377,549
42,823,572
10,791,455
22,566,791
64,010,537
7,718,282
377,558
450,372,461 453,181.926
$ (3,926,406) $ 51,180,194 $ 7,405,856 $ (28,981,895) $ (84,552,605)
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 fmancial reporting purposes.
137
Fiscal
Year
2005
2006
2007
2008
2009
CITY OF MIAMI, FLORIDA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST FIVE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Ad Valorem
Taxes
General Purpose
191,640,650
226,508,118
275,012,727
269,785,445
283,516,182
Ad Valorem
Taxes
Debt Service
20,368,722
19,966,467
19,886,776
21,327,853
21,377,549
Franchise
Taxes
35,918,724
41,342,214
42,257,282
42,298,452
42,823,572
Sales
and Other
Use Taxes
23,422,160
25,800,341
25,505,412
24,860,795
22,566,791
Communication
Service
Taxes
61,114,292
57,991,178
58,099,069
62,257,072
64,010,537
Total
332,464,548
371,608,318
420,761,266
420,529,617
434,294,631
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.
138
CITY OF MIAMI, FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST FIVE FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
General Fund
Reserved
Unreserved
Total General Fund
All Other Governmental Funds
Reserved
Unreserved designated
Unreserved, reported in:
Special Revenue Funds
Debt Service Funds
Capital Projects Funds
Total All Other Governmental Funds
2005
2006 2007
2008
2009
$ 3,224,542 $ 894,059 $ 3,768,826 $ 4,616,080 $ 2,421,978
113,880,513 125,362,454 96,681,318 88,961,368 37,550,609
$117,105,055 $ 126,256,513 $ 100,450,144 $ 93,577,448 $ 39,972,587
$ 78,343,670 $ 96,569,917
49,180, 840
2,691,656
175,505,411
$ 305,721,577
43,934,094
131,018,373
$ 271,522,384
$ 110,160,478 $
12,859,516
7,995,266
3,443,149
123,498,283
$ 257,956,692 $
46,825,466 $ 53,241,904
4,027,253
60,443,132 66,672,188
1,861,274 -
200,205,983 216,837,095
313,363,108 $ 336,751,187
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.
139
CITY OF MIAMI, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST FIVE FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Revenues
Property Taxes
Franchise 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 Developmeni
Community Redevelopment Area
Public Works
Public Safety
Public Facilities
Parks and Recreation
Risk Management (2)
Pensions (2)
Organizational Support (2)
Non -Departmental (2)
Debt Service:
Principal
Interest and Other Charges
Debt Issuance Costs
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Sale of Property
Proceeds Received From Refunding
Payment To Escrow Agent For Refunding
Proceeds Received From Long -Term Debt
Premium (Discount) Long -Term Debt
Loan
Capital Leases
Sale of Capital Assets
Total Other Financing Sources
Net Change In Fund Balances
Debt Service as a Percentage
of Non -Capital Expenditures
2005 2006 2007 2008 2009
$ 208,091,814
92,714,383
27,394,427
5,777,697
161,745,250
110,483,424
8,715,234
9,256,637
5,721,312
629,900,178
$ 246,337,333
98,243,722
28,468,593
5,912,300
174,074,303
106,682,451
18,979,204
9,388,192
15,376,683
703,462,781
$ 294,251,152 $ 291,113,299 $ 304,893,731
100,356,351 104,555,524 106,834,109
32,848,055 29,844,868 26,105,211
7,541,812 6,977,788 7,441,420
150,040,391 157,268,610 141,254,258
89,589,154 86,386,721 85,926,635
23,837,450 17,655,770 7,718,282
4,017,110 4,679,000 332,175
9,369,810 10,102,809 10,757,077
711,851,285 708,584,389 691,262,898
44,713,551
12,858,675
57,803,782
4,608,027
48,266,766
222,377,919
11,426,487
17,261,022
29,162,254
73,862,309
23,917,033
12,926,933
18,770,229
21,822,857
94,680,930
694,458,774
49,995,402
12,740,678
40,978,910
5,982,541
50,579,908
251,914,610
11,795,688
17,896,247
25,546,486
78,864,757
25,161,646
13,204,324
57,669,544 77,127,072 78,888,172
11,862,685 11,236,136 11,349,570
35,325,497 41,036,697 36,413,108
5,314,468 15,946,941 20,144,229
56,484,364 55,068,379 55,172,871
256,691,572 265,497,659 266,284,837
13,455,945 13,019,718 11,660,410
30,637,506 29,056,137 33,211,002
18,115,929 28,796,859 13,107,068
70,708,285 65,116,477 66,906,558
35,122,459 27,751,691 41,314,516
28,490,230 - -
19,218,795 20,887,276 21,343,143 23,566,021
21,650,889 24,346,064 28,920,735 31,928,202
6,988,908 -
103, 894,188 124,264,229 114, 576,911 106, 862, 901
729,425,069 796,364,961 794,494,555 796,809,465
(64,558,596)
(25,962,288) (84,513,676) (85,910,166) (105,546,567)
204,247,939
(204,247,939)
229,700,739
(229,700,739)
1,000
500,000 889,969
500,000 890,969 59,538,238 134,443,886 75,329,785
$ (64,058,596) $ (25,071,319) $ (24,975,438) $ 48,533,720 $ (30,216,782)
278,006,434 227,562,830 196,098,575
(278,006,434) (227,562,830) (196,098,575)
1,502,044 -
138,841,992 133,098,930
(131,775,000) -
50,969,202
1,344,956
(32,366,235)
108,490,000
(793,980)
6.76% 6.53% 6.91% 7.71%
Notes:
(I) Data not available prior to fisca12002 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, in the 2005 fiscal year, revised the reporting for these functions in the governmental funds. Previously, these amounts
were included in other functions.
(3) Expenditures for capital assets on page 18 is $142,176,246 instead of $124,264,229 above because $17,912,017 of capital
assets were charged to the various functions as expenditures instead of through the Capital Project Funds. These amounts
are included in the reconciliation of capital assets on page 49.
8.04%
140
Fiscal
Year
2005
2006
2007
2008
2,009
CITY OF MIAMI, FLORIDA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST FIVE FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Ad Valorem
Taxes
General Purpose
187,998,820
226,304,681
275,012,727
269,785,445
283,516,182
Ad Valorem Sales
Taxes Franchise and Other
Debt Service Taxes Use Taxes
20,092,994 35,918,724 23,422,160
20,032,652 41,342,214 25,800,341
19,886,776 42,257,282 25,505,412
21,327,853 42,298,452 24,860,795
21,377,549 42,823,572 22,566,791
Communication
Services
Taxes
56,795,255
56,900,497
58,099,069
62,257,072
64,010,537
Total
324,227,953
370,380,385
420,761,266
420,529,617
434,294,631
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.
141
CITY OF MIAMI, FLORIDA
NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Net Assessed
Real Property Total Value as a
Fiscal Year Net Direct Estimated Percentage of
Ended Residential Commercial Personal Assessed Tax Actual Estimated Actual
September 30, Property Property Property Value Rate Value Value (1)
2000 5,796,864,025 5,835,981,002 1,480,211,283 13,113,056,310 10.90 18,857,553,034 69.54%
2001 6,000,474,083 6,113,340,757 1,657,551,519 13,771,366,359 10.28 20,061,032,742 68.65%
2002 6,612,151,524 6,730,517,606 1,770,392,311 15,113,061,441 10.21 22,035,829,555 68.58%
2003 7,679,048,886 7,380,571,799 1,878,266,085 16,937,886,770 10.07 24,759,964,620 68.41%
2004 8,789,474,779 8,369,950,851 1,711,697,688 18,871,123,318 9.84 27,717,908,682 68.08%
2005 10,364,157,774 9,870,433,741 1,695,110,542 21,929,702,057 9.67 32,133,104,422 68.25%
2006 12,959,276,770 12,341,927,389 1,676,173,129 26,977,377,288 9.26 39,120,899,711 68.96%
2007 20,320,801,612 11,038,460,135 1,673,647,599 33,032,909,346 9.00 47,925,276,742 68.93%
2008 24,279,025,389 11,727,240,945 1,749,572,760 37,755,839,094 7.88 55,249,891,635 68.34%
2009 23,572,178,928 11,890,691,413 1,686,320,651 37,149,190,992 8.33 52,185,972,858 71.19%
Source: Miami -Dade County Property Appraiser's Office.
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.
142
CITY OF MIAMI, FLORIDA
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
City of Miami, Florida Overlapping Rates (1)
Miami -Dade Miami -Dade South Florida Florida Total
County Miami -Dade County Water Inland Direct and
Fiscal Tax Roll General Debt Total School Miami -Dade Children's Library Management Environmental Navigation Overlapping
Year Year Operations Service City Board County Trust System District Projects District Rates
2000 1999 9.5000 1.4000 10.9000 9.7440 6.6250 - 0.3210 0.5970 - 0.0440 28.2310
2001 2000 8.9950 1.2800 10.2750 9.7170 6.4030 0.3510 0.5970 0.0410 27.3840
2002 2001 8.9950 1.2180 10.2130 9.4760 6.2650 - 0.4510 0.5970 0.0385 27.0405
2003 2002 8.8500 1.2180 10.0680 9.3520 6.2790 - 0.4860 0.5970 - 0.0385 26.8205
2004 2003 8.7625 1.0800 9.8425 9.2000 6.2540 0.5000 0.4860 0.5970 - 0.0385 26.9180
2005 2004 8.71625 0.9500 9.6663 8.6870 6.2200 0.4442 0.4860 0.5970 0.1000 0.0385 26.23895
2006 2005 8.49950 0.7650 9.2645 8.4380 6.1200 0.4288 0.4860 0.5970 0.1000 0.0385 25.47280
2007 2006 8.37450 0.6210 8.9955 8.1050 5.9000 0.4223 0.4860 0.5970 0.1000 0.0385 24.64430
2008 2007 7.29990 0.5776 7.8775 7.9480 4.8646 0.4223 0.3842 0.5346 0.0894 0.0345 22.15510
2009 2008 7.67400 0.6595 8.3335 7.9950 5.1229 0.5000 0.3822 0.5346 0.0894 0.0345 22.99210
Sources: City of Miami, Florida Finance Department and Miami -Dade County Property Appraiser's Office.
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 govemment's property owners
whose property is located within the geographic boundaries of the special district).
143
CITY OF MIAMI, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2009 2000
Percent of Percent of
Total Total
Net City Net Net City Net
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Taxpayer Value Rank Value
Florida Power & Light $ 334,097,704 1 0.90% Florida Power & Light 163,444,442 2 1.27%
200 S Biscayne TIC 1 LLC 304,500,000 2 0.82%
Teachers Ins & Annuity Assoc 293,600,000 3 0.79%
Bellsouth Telecommuniations 223,413,742 4 0.60% Bellsouth 158,404,249 3 1.50%
Crescent Miami Center 186,100,000 5 0.50%
1111 Brickell Office LLC 154,700,000 6 0.42%
Trustees of L&B 123,900,000 7 0.33%
1450 Brickell LLC 115,064,000 8 0.31%
SHC Chopin Plaza LLC 110,000,000 9 0.30%
Estoril Incorporated 107,400,000 10 0.29%
$ 1,952,775,446 5.26%
144
SRI Aetna Life Insurance 178,100,000 1 1.44%
Metropolitan Life Ins. Co. 135,950,000 4 1.10%
Prudential Insurance Co. 115,500,000 5 0.93%
Brickell Associates 81,000,000 6 0.65%
Brickell Square 62,000,000 7 0.50%
NOP LLC 60,100,000 8 0.49%
Inter -Continental 58,100,000 9 0.49%
Brickell Equities Corp 55,000,000 10 0.47%
$ 1,067,598,691 8.84%
CITY OF MIAMI, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected within
Total Taxes the Fiscal Year
Fiscal Year Levied for of the Levy Collections in
Ended Fiscal Percent Subsequent
September 30, Year Amount of Levy Year's
Total Collections
to Date
Amount
Percent
of Levy
2000 142,932,314 136,028,063 95.17% 6,174,244 142,202,307 99.49%
2001 141,425,410 134,535,715 95.13% 5,959,373 140,495,088 99.34%
2002 152,339,301 146,185,141 95.96% 4,079,641 150,264,782 98.64%
2003 167,490,551 157,339,038 93.94% 7,735,274 165,074,312 98.56%
2004 186,253,134 183,845,937 98.71% 1,640,252 185,486,189 99.59%
2005 208,091,814 199,072,981 95.67% 2,379,977 201,452,958 96.81%
2006 242,077,783 234,361,909 96.82% 3,801,414 238,163,323 98.38%
2007 285,049,684 278,643,733 97.76% 7,111,337 285,755,070 100.25%
2008 304,540,649 292,307,274 95.98% 8,489,434 300,796,708 98.77%
2009 312,053,204 301,816,929 96.72% 301,816,929 96.72%
Source: City of Miami, Finance Department and Miami -Dade County Tax Collector's Office
145
CITY OF MIAMI, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Fiscal Year General Percent of
Ended Obligation Revenue Loans Capital Personal Per
September 30, Bonds Bonds Payable Leases Total Income (1) Capita (1)
2000 119,150,000 142,061,325 65,357,964 593,800 327,163,089 2.92% 895
2001 107,620,000 134,531,325 62,040,564 - 304,191,889 3.17% 839
2002 252,615,822 128,861,019 58,877,164 440,354,005 2.20% 1,215
2003 236,549,956 151,566,324 28,230,764 416,347,044 2.40% 1,149
2004 225,944,956 145,130,260 25,567,364 2,525,936 399,168,516 2.64% 1,101
2005 215,729,956 138,676,431 23,465,964 1,921,177 379,793,528 2.99% 1,048
2006 205,306,932 132,131,060 21,216,564 1,298,941 359,953,497 3.39% 993
2007 245,689,409 125,969,708 24,120,164 658,722 396,438,003 3.30% 1,094
2008 235,393,765 198,484,539 73,656,764 507,535,068 N/A 1,400
2009 276,113,503 199,629,250 89,426,363 565,169,117 N/A 1,559
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 147 for personal income and population data.
N/A: Information not available
146
Fiscal Year
Ended
September 30,
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
CITY OF MIAMI, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
General
Obligation
Bonds
119,150,000
107,620,000
249,711,406
236,549,956
225,944,956
215,729,956
205,306,932
245,689,409
235,393,765
276,113,503
Less Amounts
Available in
Debt Service
Fund
4,314.466
3,795,503
5,140,714
1,410,866
966,126
1,512,591
1,994,991
2,304,217
2,138,512
1,496,363
Percentage of
Estimated Actual
Taxable
Value of Per
Total Property (1) Capita (2)
114,835,534 0.609% 314.15
103,824,497 0.518% 286.44
244,570,692 1.110% 674.73
235,139,090 0.950% 648.71
224,978,830 0.812% 620.68
214,217,365 0.667% 590.99
203,311,941 0.520% 560.91
243,385,192 0.508% 671.46
233,255,253 0.422% 643.52
274,617,140 0.526% 757.63
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 138
for property value data.
(2) See the Schedule of Demographic and Economic Statistics on page 147 for population data.
147
CITY OF MIAMI, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2009
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 $ 822,227,343 19.00% $ 156,223,195
Miami -Dade County School Board 356,992,000 19.00% 67,828,480
Subtotal, Overlapping Debt 224,051,675
City of Miami, Florida Direct Debt
(excludes special obligation, revenue bonds, loans and capital leases) 276,113,503
Total Direct and Overlapping Debt $ 500,165,178
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.
148
Debt Limit
Total Net Debt Applicable to Limit
Legal Debt Margin
Total Net Debt Applicable to the
Limit as a Percentage of Debt Limit
CITY OF MIAMI, FLORIDA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
$ 1,966,958,447 $ 2,065,704,949 $ 2,266,959,216 $ 2,540,683,016 $ 2,830,668,498 $ 3,289,455,309 $ 4,046,606,593 $ 4,954,936,402 $ 5,400,939,950 $ 5,372,349,771
114,914,079 103,824,851 249,711,407 236,549,956 224,978,830 214,217,365 203,311,941 243,385,192 233,255,253 274,617,140
$ 1,852,044,368 $ 1,961,880,098 $ 2,017,247,809 $ 2,304,133,060 $ 2,605,689,668 $ 3,075,237,944 $ 3,843,294,652 $ 4,711,551,210 $ 5,167,684,697 $ 5,097,732,631
5.84%
5.03%
11.02% 9.31%
Legal Debt Margin Calculation for Fiscal Year 2009
Assessed value
Less: Homestead Exempt Valuation
Total Assessed Value
Debt Limit for Bonds
(15% of Total Assessed Value)
Present Debt Application to Debt Limitation
General Obligation Debt
Less: Amount Available in Debt Service Fund
Total Net Debt Applicable to Limit
Legal Debt Margin
149
7.95%
6.51 %
5.02%
4.9 1 %
4.32%
5.11%
$ 37,149,190,992
(1,333,525,854)
35,815,665,138
5,372,349,771
276,113,503
(1,496,363)
274,617,140
$ 5,097,732,631
CITY OF MIAMI, FLORIDA
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Fiscal Year
Ended Ad -Valorem Debt Service 2x Annual
September 30, Revenues (1) Principal Interest Debt Service Coverage (2)
2000 211,641,947 9,602,400 11,924,590 43,053,980 4.92
2001 226,040,821 10,243,400 10,524,127 41,535,054 5.44
2002 240,074,038 8,546,400 13,652,298 44,397,396 5.41
2003 250,581,519 7,809,464 13,997,817 43,614,562 5.75
2004 260,251,789 9,099,464 12,625,974 43,450.876 5.99
2005 261,901,194 8,555,229 12,491,326 42,093.110 6.22
2006 289,038,101 8,795,771 12.519,779 42.631,100 6.78
2007 294,252,080 10,514,753 14,627.989 50,285,484 5.85
2008 291,113,298 10,465,644 11,379.849 43,690,986 6.80
2009 304.893,731 10,335,262 12,228,340 45,127,204 6.51
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
be two times the annual projected debt service for all debt other than general obligation debt of the City.
150
Year Population (1)
CITY OF MIAMI, 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)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
365,548
362,470
362,470
362,470
362,470
362,470
362,470
362,470
362,470
362,470
9,538,244
9,639,527
9,706,947
10,001,635
10,539,177
11,362,347
12,219,589
13,074,655
N/A
N/A
26,093
26,594
26,780
27,593
29,076
31,437
33,712
36,701
N/A
N/A
35.60
35.90
36.90
37.00
36.60
37.40
37.00
38.00
N/A
N/A
360,202 5.30
368,453 6.90
374,725 7.70
371,482 7.50
369,578 5.70
365,784 4.70
361,550 3.40
346,629 4.10
344,806 6.10
345,570 11.10
Sources:
(1) United States Census Bureau
(2) Miami -Dade County Finance Department
(3) Miami -Dade County School Board Budget Office
(4) Florida Agency for Workplace Innovation, Office of Workforce Information Services,
Labor Market Statistics
N/A Information not available
151
CITY OF MIAMI, FLORIDA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Employer
Miami -Dade County Public Schools
Miami -Dade County
U.S. Federal Government
State of Florida
Publix Supermarkets
Baptist Health Systems of South Florida
Public Health Trust/Jackson Memorial Hospit
University of Miami
American Airlines
Miami -Dade College
Precision Response Corp
BellSouth/AT&T
Total
2009
Percentage of
Total County
Employees Rank Employment
2.11%
1.35%
0.86%
0.72%
0.47%
0.46%
0.44%
0.42%
0.38%
0.27%
50,000 1
32,000 2
20,400 3
17,000 4
11,000 5
10,826 6
10,500 7
9,874 8
9,000 9
6,500 10
177,100
Source: The Beacon Council/Miami-Dade County, Florida
152
7.49%
2000
Percentage of
Total County
Employees Rank Employment
1.50%
1.27%
0.77%
0.77%
35,469 1
30,000 2
18,276 3
18,100 4
7,500 9
8,191 6
7,800 8
9,000 5
8,000 7
4,240 10
146,576
0.32%
0.35%
0.33%
0.38%
0.34%
0.18%
6.19%
CITY OF MIAMI, FLORIDA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Number of Employees:
General Government 488 511 523 587 594 617 641 644 641 511
Planning and Development 109 127 141 140 138 147 141 142 128 123
Community Development 140 172 170 91 77 73 61 52 61 55
Public Works 479 500 507 498 497 505 542 526 525 521
Public Safety 2,388 2,346 2,275 2,248 2,140 2,138 2,222 2,288 2,310 2,390
Public Facilities 34 37 37 33 43 45 55 56 54 41
Culture and Recreation 129 136 136 141 148 188 190 191 207 265
Total Number of Employees 3,767 3,829 3,789 3,738 3,637 3,713 3,852 3,899 3,926 3,906
Source: City of Miami, Budget Department
153
CITY OF MIAMI, FLORIDA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Community Development:
Entitlements/Grants Received $ 35,755,804 $ 53,634,346 $ 38,337,736 $ 35,569,042 $ 32,351,101 $ 37,191,063 $ 30,816,293 $ 29,943,482 $ 30,267,482 26,275,445
Public Safety:
Police:
Part 1 Crimes - (1) 39,759 35,291 33,952 33,527 30,966 29,455 26,219 27,302 27,907 25,761
Part 1 Arrests - (1) 7,521 8,812 8,368 6,729 6,662 5,728 4,359 4,635 4,741 4,536
Part 2 Arrests - (2) 42,236 41,089 31,077 26,786 38,467 33,385 33,408 32,738 31,211 32,826
Fire:
Number of Fire Calls 13,310 12,945 12,228 15,571 17,889 19,017 12,694 14,472 18,191 10,411
Number of EMS Calls 60,166 63,104 63,041 62,784 64,500 67,300 70,423 72,757 69,870 73,017
Number of Alarms 73,476 76,049 75,269 78,355 82,389 86,318 83,117 87,227 88,061 88,847
Planning and Development:
Certificate of Use Permits Issued 19,682 19,483 20,366 20,625 20,422 21,123 21,142 22,000 21,482 22,724
Occupational Licenses Issued 36,867 38,207 37,524 39,040 39,422 40,371 34,197 42,000 22,498 22,092
Culture and Recreation:
Summer Food Program - Meals Served (Lunches) 67,589 83,515 96,249 124,701 122,749 89,324 55,126 104,472 N/A N/A
Summer Food Program - Meals Served (Snacks) 96,128 116,899 132,481 146,786 115,837 100,870 61,000 114,670 N/A N/A
Solid Waste:
Refuse Collected (Tons/Day) 748 725 805 768 793 578 713 629 717 N/A
Recyclables Collected (Tons/Day) N/A 28 28 24 21 72 10 13 16 N/A
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.
N/A Information not available.
154
CITY OF MIAMI, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
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 3 3
Fire:
Fire Stations 12 12 12 12 12 14 14 14 14 14
Solid Waste:
Collection Trucks 117 132 153 172 176 152 151 175 181 N/A
Public Works:
Streets (Miles- Paved) 660.5 659.2 659.0 658.9 658.9 660.0 667.4 662.2 662.2 662.1
Streets (Miles - Unpaved) 1.5 1.4 1.4 1.4 1.4 1.4 3.1 1.2 N/A 1.12
Transportation:
Street Resurfacing (Miles) N/A N/A N/A 25.0 33.5 33.5 17.9 23.3 21.6 N/A
Culture and Recreation:
Parks Acreage 800 800 800 800 800 800 800 894 894 894
Parks 110 110 110 110 111 111 112 112 112 112
Swimming Pools 10 10 10 10 10 10 12 11 11 15
Tennis Courts 53 53 53 53 53 53 53 55 55 61
Community Centers 26 26 30 30 31 30 32 32 32 34
Basketball Courts 63 63 63 63 63 61 63 63 63 71
Water Playgrounds - - - 1 1 1 2 2 2
Soccer Fields 6 6 6 6 7 7 7 11 11 13
Football Fields 12 12 12 12 12 12 12 10 10 9
Baseball Fields 25 25 25 25 25 21 25 27 27 30
Open Practice Fields - - - - - - 2 2 2
Cricket Field 1 1 1
Sources: Various City Departments
Note: No capital asset indicators are available for the general government function.
N/A Information not available.
155
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156
City of Miami, Florida
Management Letter in Accordance with
the Rules of the Auditor General of the State of Florida
Year Ended September 30, 2009
Table of Contents
Management Letter Required By Chapter 10.550 of the Rules of the
Auditor General of the State of Florida
Index of Current Year Findings
Appendix A — Current Year's Recommendations to Improve Financial Management,
Accounting Procedures and Internal Controls
Appendix B — Status of Prior Year's Recommendations to Improve Financial Management,
Accounting Procedures and Internal Controls
1-3
4
5-21
22 — 23