HomeMy WebLinkAboutFY 2008 City of Miami Comprehensive Annual Financial ReportCITY OF MIAMI, h
COMPREHENSIVE ANNU
FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 3OTH, 2008
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COMPREHENSIVE ANNUAL
FINANCIAL REPORT
INCORP_=ORATED
18=96
City of Miami, Florida
For the Year Ended September 30, 2008
Prepared by the Finance Department
City of Miami, Florida
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2008
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
PRINCIPAL CITY OFFICIALS i
LETTER OF TRANSMITTAL iii
CERTIFICATE OF ACHIEVEMENT xi
ORGANIZATIONAL CHART xii
II. FINANCIAL SECTION
Independent Auditor's 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 79
Fire Rescue Services Fund 80
Emergency Services Fund 81
Notes to the Required Supplementary Information 82
Pension Schedules:
Schedule of Funding Progress 83
Combining and Individual Fund Statements and Schedules:
Non -major Governmental Funds:
Combining Balance Sheet 90
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances 96
Budgetary Comparison Schedules — Non -Major Governmental Funds:
Community Redevelopment Agency (OMNI CRA) Fund 102
Community Redevelopment Agency (Midtown CRA) Fund 103
Community Redevelopment Agency (SEOPW) Fund 104
Homeless Program 105
Community Development 106
Choice Housing Vouchers Program 107
SHIP 108
Convention Center Fund 109
Economic Development & Planning Services Fund 110
Net Offices Fund 111
Parks and Recreation Services Fund 112
Police Services Fund 113
Law Enforcement Trust Fund 114
Public Works Services Fund 115
City Clerk Services Fund 116
Local Option Gas Tax 117
Stormwater Utility Fund 118
General Special Revenue 119
Depaitinental Improvement Initiatives Fund 120
Transportation & Transit Fund 121
Public Services Tax 122
Liberty City Revitalization Trust 123
Virginia Key Beach Trust 124
Gusman and Olympia Fund 125
General Obligation Bonds Fund 126
Other Special Obligation Bonds Fund 127
SEOPW Other Special Obligation Bonds Fund 128
Fiduciary Funds
Combining Statement of Fiduciary Net Assets 129
Combining Statement of Changes in Fiduciary Net Assets 130
III. STATISTICAL SECTION (Unaudited)
Net Assets by Component 134
Changes in Net Assets 135
Governmental Activities Tax Revenues by Source 136
Fund Balances of Governmental Funds 137
Changes in Fund Balances of Governmental Funds 138
General Government Tax Revenues by Source 139
Net Assessed Value and Estimated Actual Value of Taxable Property 140
Property Tax Rates — Direct and Overlapping Governments 141
Principal Property Taxpayers 142
Property Tax Levies and Collections 143
Ratios of Outstanding Debt by Type 144
Ratios of General Bonded Debt Outstanding 145
Direct and Overlapping Governmental Activities Debt 146
Legal Debt Margin Information 147
Pledged Revenue Coverage 148
Demographics and Economic Statistics 149
Principal Employers 150
Full -Time Equivalent City Government Employees by Function 151
Operating Indicators by Function 152
Capital Assets Statistics by Function/Program 153
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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, 2008
MAYOR
Manuel A. Diaz
CITY COMMISSION
Joe M. Sanchez, Chairman
Michelle Spence -Jones, Vice — Chairman
Angel Gonzalez, Commissioner
Marc Sarnoff, Commissioner
Thomas P. Regalado, Commissioner
CITY MANAGER
Pedro G. Hernandez
CITY ATTORNEY
Julie O. Bru
1
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March 26, 2009
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, 2008 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 firm's 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, 2008 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 auditor's 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, 2008 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
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compliance with legal requirements, with special emphasis on internal controls and legal requirements
involving the administration of federal and state awards.
GAAP requires that management provides a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The City's MD&A can be found immediately following the report of the
independent auditor's. 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 362,000, according to the 2004 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
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, 2008.
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 departmental 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 1st 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
The City of Miami continues to maintain a stable economic base despite the negative impacts of
property tax reform and a slowing housing market being felt statewide. The City's tax base, currently
$39 billion, continues to grow as a result of continued new investment. 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 several Latin American countries, international trade has
been growing at double-digit rates in the Miami area.
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Airport/Seaport
In 2008, the Miami International Airport (MIA) served nearly 34 million passengers, with nearly 47% of
those being international passengers. MIA also shipped 2.1 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 2008, the Port of Miami handled over 4.1 million cruise passengers, an increase of 8% 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 7.4 million tons of cargo during the
current year, a 5% 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; Jazz, 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.
The City, Miami -Dade County, and the Florida Marlins Major League baseball team entered into an
Agreement in February of 2008, to build a stadium on the site of the former Orange Bowl Stadium, in
Little Havana. The Stadium is expected to cost approximately $600 million and will seat 37,000 people.
It is expected that the completion of the stadium along with the adjacent retail and commercial
development will have a significant positive economic impact on the City.
Public/Private Development Ventures.
The City continues to focus efforts on the development of its waterfront assets. In 2008, the Historic
Virginia Key Beach Trust completed its renovation and re -opened the historic black beach, on Virginia
Key. Additionally, the City is in the process of completing a master plan for the eventual
redevelopment of the entire Key. It is expected that recommendations to better utilize City -owned
commercial/recreational marina areas for more profitable public/private partnerships will be included in
the Master Plan.
The City 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.
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
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by President Barrack Obama on February 17, 2009. The ARRA provides $787 Billion in spending and
tax relief Projects. This sum is not necessarily reflective of the amount of funding the City will receive
from the ARRA. 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.
As of March 16, 2009, the grant funding rules or application timetables have not been written for these
programs, so the City is unable to estimate specific competitive grant funding for projects. Although the
formulas for the distribution and the rules for spending the funds have not been determined, the City and
our sister agencies hope to receive approximately $200 million in formula funding for our community.
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 six -year Capital Improvement Plan, covering the period from October 1, 2007 through
September 30, 2013, has earmarked funding estimated at $719.4 million for 505 projects throughout the
City. Streets and sidewalks projects account for the largest portion of the total Capital Plan funding at
$192.8 million or 26.8%. Parks and Recreation projects are the second largest, accounting for $153.2
million, or 21.3%, and Storm Sewer projects are the third largest accounting for $104.4 million, or
14.5% 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 43.5% of the value. Capital project revenues (impact fees, storm
water utilities, optional gas tax, etc.) account for 26.4%, received from Miami -Dade County accounts
for 16%, and the remaining14.1% of funding will come from 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
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
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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
represent trends that will continue, nor is it always possible to realize such amounts, especially in the
case of temporary changes in the fair value of investments that the City intends to hold to maturity.
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
With the improvement in the financial condition of the City, the emphasis has been 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. 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. While the external improvements
are critical to promote further economic development, the City has successfully implemented a City-
wide Enterprise Resource Planning system (Oracle) calling the project "iMiAMi" in order to address the
technology needs of the City's administration.
The New Markets Tax Credit (NMTC) program is nationally recognized for steering low interest,
private capital into distressed census areas to capitalize hard to fund commercial and residential projects.
In an effort to capture this opportunity for the City of Miami, the Economic Initiatives Division created
a Community Development Entity (CDE) called Miami Economic Development Fund (MEDF).
MEDF's purpose is to apply for and allocate NMTCs. The CDE has collaborated with industry experts
to educate and connect our local constituents to NMTC program opportunities. The MEDF is preparing
to apply for a Round VII allocation of NMTCs.
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, 2007. 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.
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The City's 2007 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 2008 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, 2007 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.
Pedro G. Hernandez
City Manager
Lar I�p�in
Chi inancial Officer
Diana M. G
Finance Di
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ix
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, 2007
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
deAttri-p
Executive Director
x
City Commission
Chairman: J. Sanchez
Vice -Chairman: M. Spence -Jones
Commissioner: A. Gonzalez
Commissioner:T. Regalado
Commissioner: M. Sarnoff
City Clerk
Priscilla A. Thompson
Auditor General
Victor Igwe
Virginia Key
Beach Park Trust
David Shorter
•
Liberty City Community
Revitalization Trust
Elaine Black
Miami Sports &
Exhibition Authority
Tim Schmand
Bayfront Park
Management Trust
Tim Schmand
•
Fire Fighter's & Police
Officer's Retirement
Trust
Robert H. Nagle
TABLE OF ORGANIZATION
Residents of Miami
City Attorney
Julie O. Bru
1•
Civil Service Board
Tishria Mindingall
•
Downtown
Development
Authority
Alyce Robertson
1•
Community
Redevelopment
Agency
James Villacorta*
Off -Street Parking
Authority
Arthur Noriega
Civilian
Investigative Panel
Shirley Richardson
1•
General Employees &
Sanitation Employees'
Retirement Trust
Sandra Elenberg
Pedro G. Hernandez
Chief Administrator / City Manager
City Agencies
Film, Arts & Cultural Affairs:
Robert Parente
Intergovernmental Affairs:
Agenda:
Elvi Alonso
Community Relations:
Ada Rojas
Hearing Boards:
Teresita Fernandez
Manuel A. Diaz
Executive Mayor
Mayor's International Council
Office of Faith -Based Initiatives and
Community Outreach
Peter Korinis
Chief Information
Officer
{
Information
Technology
Department
CitiStat
Don Riedel
Larry M. Spring
Chief Financial Officer
ti
•
4 Finance
Diana Gomez
•
4
Public Facilities `
Laura Billberry
Community
Development
George Mensah
4 Risk Management `
LeeAnn Brehm
j .
Office of Sustainable
Initiatives & Grants
Robert Ruano
.
Roger Hernstadt
Chief of Operations
Office of Strategic
Planning, Budgeting
& Performance
Michael Boudreaux
Solid Waste
Mario Soldevilla
j GSA
Kelly Barket, Jr.
Purchasing
Glenn Marcos
-{
Code Enforcement
Mariano Loret de Mola
1
John Timoney
Police Chief
•
William Bryson
Fire Chief
Employee Relations
Hector Mirabile
NET
David Rosemond
•
•
Communications
Kelly Penton
Bill Anido
Chief of Infrastructure
jCIP &Transportation
Ola Aluko
Public Works
Stephanie Grindell
Planning
Ana Gelabert
{
Building
Hector Lima
jZoning
Lourdes Slazyk
4
Parks & Recreation `
Ernest Burkeen
.
*Acti ng/I nterim
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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, 2008, 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 Employees' 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 & Pullen, LLP is a member firm of RSM International,
an affiliation of separate and independent legal entities.
Percentage of,
Total Assets Total Revenues
5%
89%
22%
4%
25%
1
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 governmental 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, 2008, 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.
As discussed in Note 11 to the financial statements, the City adopted the recognition and disclosure requirements of
Governmental Accounting Standards Board Statement No. 45, Accounting and Financial Reporting by Employers for
Post Employment Benefits Other than Pensions, as of October 1, 2007.
In accordance with Government Auditing Standards, we have also issued under separate cover our report dated
March 26, 2009 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 Government
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 by us and the other auditors 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 by us and the other auditors in the audit of the basic financial
statements and, accordingly, we express no opinion on them.
Miami -Dade County, Florida
March 26, 2009
2
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, 2008. 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.
FINANCIAL HIGHLIGHTS
• The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $710,180,831.
• The governmental activities revenue decreased by $8,515,294 (or 1.19%) and the net results from
activities decreased by $36,387,751. In 2008 and 2007, the results of activities produced a change in net
assets of $(28,981,895) and $7,405,856, respectively.
• The General Fund (the primary operating fund) reflected on a current financial resource basis, reflects a
decrease in fund balance of $6,872,696 or (6.84%).
• The City's total debt for bonds and loans increased by $110,815,264 (or 25.14%) during the current year.
New debt in the amount of $134,443,886 was issued in the current fiscal year.
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 fmancial statements themselves.
In light of the fact that this is a very different presentation of the City's general purpose financial statements
from previous years, the following graphic is provided for your review.
Basic Financial
Management's Discussion
and Analysis
(required supplementary information)
Government -wide Fund fmancial
financial statements H statements
(pages 13- 14) (pages 15 — 23)
Notes to the financial statements
(pages 25- 77)
/
/
Required supplementary information
(other than MD&A)
(pages 79 - 84)
/
/
The focus of the financial statements under the GASB 34 model (originally implemented by the City in
2001/2002) is on both the City as a whole (government -wide) and on the major individual funds. Both
perspectives (government -wide and major fund) allow the user to address relevant questions, broaden a basis
for comparison (year to year or government to government) and enhance the City's accountability.
3
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 fmancial resources (short-
term spendable resources) with capital assets and long-term obligations. The City does not have any
business -type activities for financial reporting purposes.
The Statement of Activities (see page 14) is focused on both the gross and net cost of various functions
(including governmental activities and component units), which are supported by the government's general
tax and other revenues. This is intended to summarize and simplify the user's analysis of the cost of various
governmental services and/or component units.
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.
Fund Financial Statements
Traditional users of governmental financial statements will find the Fund Financial Statements' presentation
more familiar. Their focus is on the City's major funds. The fund financial statements provide more
information about the City's most significant funds — not the City as a whole.
The City has two kinds of funds:
Governmental Funds — Most of the City's basic services are included in governmental funds, which focus
on (1) how cash and other fmancial 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 fmancial 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.
4
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 — 77 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 79 — 84 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 90 — 128 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In
the case of the City, assets exceed liabilities by $710,180,831 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., 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, 21.23%, represents resources that are subject to restrictions on
how they may be used.
The remaining unrestricted net assets deficit of $214,516,532 is primarily due to outstanding borrowings of
approximately $73.96 million for which there are no off -setting assets along with an increase in claims
payable 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
2008 2007
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
$ 574,502,615 $ 530,145,898
1,058,764,539 988,932,377
1,633,267,154 1,519,078,275
158,620,281
764,466,042
177,352,669
602,562,880
923,086,323
779,915,549
773,959,639
150,737,724
(214,516,532)
730,272,844
102,602,464
(93,712,582)
$ 710,180,831 $
739,162,726
5
The following table provides a summary of the City's changes in net assets for the fiscal years ended
September 30, 2008 and 2007.
Changes in Net Assets
Governmental Activities
2008 2007
Revenues:
Program revenues:
Charges for services $ 140,816,112 $ 141,265,941
Operating grants and contributions 63,179,016 71,070,882
Capital grants and contributions 54,174,136 69,140,730
General revenues:
Property taxes 291,113,298 294,899,503
Franchise taxes 42,298,452 42,257,282
State revenue sharing - unrestricted 12,187,197 13,073,886
Sales and other use taxes 24,860,795 25,505,412
Public services tax 62,257,072 58,099,069
Investment earnings - unrestricted 17,655,647 23,837,450
Gain on sale of capital assets - 1,502,044
Total revenues 708,541,725 740,652,199
Expenses:
General government 140,680,932 121,694,219
Planning and development 16,217,858 16,923,477
Community development 42,029,139 35,486,773
Community redevelopment areas 13,904,297 7,011,132
Public works 72,572,813 75,073,321
Public safety 370,007,019 343,470,082
Public facilities 15,354,423 16,691,365
Parks and recreation 39,550,244 39,893,208
Interest on long-term debt 27,206,895 23,859,254
Unallocated depreciation - 29,548,332
Special item - Impairment loss on capital assets - 23,595,180
Total expenses 737,523,620 733,246,343
Change in net assets
Net assets - Beginning
Net assets - Ending
(28,981,895) 7,405,856
739,162,726 731,756,870
$ 710,180,831 $ 739,162,726
Governmental Activities — As noted earlier, governmental activities decreased the City' s net assets by
$28,981,895. Key elements of this decrease are as follows:
The decrease in operating grants and contributions is primarily the result of decreases in funding received in
the current year relative to the prior year related to the following grant programs: COPS More 98, FEMA
Disaster Recovery, Housing Opportunities for Persons with Aids, and Enterprise Resource Planning Project.
The decrease in capital grants and contributions is primarily due to a reduction in funding received from
Miami -Dade County General Obligation Bond referendum of 2004 and a decrease of $6.8 million in State of
Florida grant funding.
Property tax revenues decreased by 1.28% or approximately $3.9 million over the prior year and were 1.05%
or $2.7 million under the anticipated budget. Although there was a one-year increase in preliminary taxable
values of 14.5%, the City's operating millage rate was reduced by 12.8% from 8.3745 mills to 7.2999 mills.
The reduction in the City's millage rate was due to the passing of House Bill lb by the State of Florida,
which limited the increase in the operating millage rate above the rolled back rate. The City decreased the
overall millage rate since fiscal year 2000 by 38.3%; during fiscal year 2009 the City increased the overall
rate by 4.9%.
6
Public Services Tax increased by approximately $4.2 million due to increase communication and utility
services usage throughout the State of Florida.
Investment income decreased approximately $6 2 million due to the Federal Reserve decreasing short-term
interest rates during fiscal year 2008 by approximately 3.13% and the City having lower cash balances
throughout the year.
General Government expenses experienced an increase of $19 million from the prior year primarily as a
result of including unallocated depreciation in the general government function in the current year.
Community Development expenses increased by $6 5 million due to increase funding received from the
Community Development Block Grant and HOME grant in the current year as well as the ability for the City
to use surplus funding from the prior year.
Community Redevelopment Agency expenses increased by $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 $27 million from the prior year due primarily to (1)
increases in salaries, salary incentive overtime pay, and earned time payouts to Fire Rescue Department
resulting from changes in IAFF contracts for paramedic, advanced life safety, and emergency medical
technician certifications which resulted in $16 8 million of new expense; (2) increase in overtime, fuel costs
and an additional 10 new Police Officer positions in the Police Department in fiscal year 2008, which
increased expense by approximately $5 9 million; and (3) additional support of the FOP Health Trust as
required under the current Collective Bargaining Agreement between the City and FOP in the amount of
$4 1 million
Public Facilities experienced a decrease of $1 7 million in expenses from the prior year due primarily to the
closure of the Orange Bowl Facility.
Interest expense on long-term debt increased by $3 3 million as a result of new debt issuance during the
fiscal year in the amount of approximately $133 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
0
C7
N
Plan & Dev
Ca
E
0
Comm Redev
U_
0
P.
■ Expenses ■ Revenues
Public Safety
Parks & Rec
0
0
G
7
Capital
Grants &
Contributions
7.65%
REVENUE BY SOURCE — GOVERNMENTAL ACTIVITIES
Franchise
Taxes
5.97%
Property Taxes
41.09%
Sales and State Public
Other Use Revenue Services
Taxes Sharing Taxes
3.51% 1.72% 8.79%
Investment
Earnings
2.49% Charges for
Services
19.87%
Operating
Grants &
Contributions
8.92%
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related
legal requirements.
Governmental Funds — The focus of the City's governmental funds is to provide information on near -term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's
financing requirements. In particular, unreserved fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unreserved
designated and undesignated fund balance of the General Fund was $85,930,475, while the total fund
balance was $93,577,448. 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 15.45% of the total expenditures and transfers -out for recurring operational costs reported
in other funds, while total fund balance represents 16.83% of that same total amount.
The General Fund's fund balance had a net decrease of $6,872,696 during the current fiscal year. The
decrease in the General Fund's fund balance was off -set by approximately $21 3 million of transfers from
the capital projects funds which were unused appropriations that were initially funded from the general fund
in prior years. Key factors in the overall decrease are as follows:
• Lower than anticipated collections from State Shared Revenue, Charges for Services due to the closure of
the Orange Bowl, and additional Parking Surcharge revenues dedicated to the repayment of Street Bonds,
all which resulted in a decrease of revenue of $1.8 million.
• Expenditures related to litigated claims over the original allocated budget of approximately $4.1 million
• Additional funds expended in support of the FOP Health Trust as required under the current Collective
Bargaining Agreement between the City and the FOP in the amount of $3.6 million
• Decrease in property tax revenues collected in fiscal year 2008 in the amount of $2.7 million
• Decrease in FPL Franchise Fee collections due to previously anticipated contractual changes which did
not occur in the amount of $2.1 million.
8
• The Fire -Rescue department had increases in salaries, salary incentive overtime, and earned time payout
expenses due to the International Association of Fire Fighters (IAFF) contractual changes in paramedic,
advanced life safety, and emergency medical technician certifications accounted for increase expenses of
$6.4 million, $3.5 million, and $1 million, respectively.
• The Police Department had increases of $3.1 million in overtime pay expenditures.
Financial highlights of the City's other major governmental funds are as follows:
The Fire Rescue Services Fund had a negative fund balance of $7,125,907. 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 $15,006,723. 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 $73,395,508, of which $14,167,446 is
reserved for encumbrances. The $59,771,830 increase in fund balance can be attributed to issuance of new
debt during the year totaling $80 million
GENERAL FUND BUDGETARY HIGHLIGHTS
The General Fund budget increased by $32,410,645 from the original budget including transfers (an increase
of 6.19%). The major components of this increase can be summarized as follows (please see budget to
actual comparison on page 79):
• $19,510,107 increased allocation to the Fire -Rescue Department.
• $2,544,085 increased allocation to the Parks and Recreation Department.
• $14,678,799 increased allocation to the Police Department.
• $1,569,528 decreased allocation to the Public Works Department.
• $4,127,941 increased allocation to the Risk Management Department including Organizational
Support (Group Benefits).
• $1,194,698 decreased allocation to the Solid Waste Department.
• $9,746,624 decreased allocation to Non -Departmental Accounts.
• $37,550,759 increased allocation to Transfers In
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 Department was increased to provide additional allocations for increases in
salaries, salary incentive overtime, and earned time payouts due to IAFF contractual changes in
paramedic, advanced life safety, and emergency medical technician certifications.
• The budget for the Parks and Recreation Department was increased to provide additional allocations to
cover salary increases, vacation and compensatory time payouts, and shortfalls related to temporary and
part time expenses that exceeded the original budget.
• The budget for the Police Department was increased to provide additional allocations for increase in
overtime, vacation and compensatory time payouts, fuel costs, 10 additional Police Officer positions, and
additional support of the FOP Health Trust as required under the current Collective Bargaining
Agreement between the City and FOP.
• The budget for the Public Works Department was decreased to reflect the actual expenditures incurred
during the year. The amount was re -allocated to the Fire Department to cover its additional expenditures.
9
• The budget for the Risk Management Department was increased to provide additional amounts necessary
to cover outstanding litigated claims over the original allocated budget
• The budget for the Solid Waste Department was decreased to reflect the actual expenditures incurred
during the year. The amount was re -allocated to the Fire Department to cover its additional expenditures.
• The budget for the Non -Departmental Accounts was decreased to eliminate the use of General Fund
Balance for payment of Fire Assessment Settlement in fiscal year 2008. The expense related to this
settlement was recognized in fiscal year 2007.
• The budget for Transfers In was increased to off -set the expenditures in excess of original budgets.
Transfers in from other funds include approximately $21 3 million of capital projects funds which were
unused appropriations that were initially funded from the general fund in prior years; $6 1 million of
Public Service Tax from higher than anticipated utility service tax collections; and $6 6 million of direct
costs charged in the General Fund that were reimbursed from other Capital and Special Revenue funds.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At September 30, 2008, the City had a total of $1,058,764,539, 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 $69,832,162 or 7.1% 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
2008 2007
$ 87,5 87,991
255,6 70,214
58,4 77,469
71,083,188
66,216,323
519,729,354
$ 86,719,846
194 ,648,902
61,709,616
64,286,005
57 ,194,434
524,373,574
$ 1,058,764,539 $ 988,932,377
Major capital asset events during the current fiscal year included the following:
• Construction in progress increased approximately $61 0 million due to increased construction to improve
City-wide infrastructure as a result of the City's 5-year Capital Plan.
• The decrease in Buildings and Infrastructure was a result of current year depreciation expense which
reduced the carrying value of the assets.
• Machinery and Equipment increased by approximately $9 million as a result of upgrades in
communication equipment for Police and Fire departments as well as an increase in the City's fleet.
• Improvements increased by approximately $6.8 million primarily due to various projects completed in
the current year that were transitioned out of construction in progress.
Additional information on the City's capital assets can be found in Note 1 on page 32 and Note 5 on page 47
in the notes to the fmancial statements.
10
Long -Term Debt
At the end of the current fiscal year, the City had total debt outstanding of $551,570,979. Of this amount,
$235,393,766 comprises debt backed by the full faith and credit of the City; the remainder represents bonds
and loans secured solely by specific revenue sources (i.e., revenue bonds).
Outstanding Debt
General Obligation Bonds, Special Obligations
and Revenue Bonds and Loans
General Obligation Bonds
Special Obligation
Revenue Bonds and Loans
Total
Governmental Activities
2008 2007
$ 235,393,765 $ 245,689,409
316,177,214 195,066,373
$ 551,570,979 $ 440,755,782
The City's total debt had a net increase of $110,815,197 (or 25.14%) during the current fiscal year. The City
issued new debt in the amount of $134,443,886 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 pages 51 — 59 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 2008 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.
House Bill 1-B (HB1b), which was passed by the Florida Legislature on June 14, 2007, limited property tax
revenues collected by the City in fiscal year 2008. This bill contained two provisions: one which maximized
the City's ability to collect property tax revenues and another to limit its property tax revenue growth in
future years. HB1b basically limited the City's ability to collect property tax revenues to its rolled back rate
and required any increase in this rate to be approved by a majority, supermajority or unanimous vote by the
City Commission. As a result of HB1b, the City adopted an operating millage rate of 7.2999 mills with a
majority vote of the City Commission. This rate reduced the amount of property tax revenues collected in
fiscal year 2008 by $3.8 million over the prior fiscal year. Prior to HB1b, the City realized property tax
11
revenue growth of $19.6 million in fiscal year 2005, $35.3 million in fiscal year 2006, and $44.4 million in
fiscal year 2007.
In October 2007, the City was removed from the list of municipalities under special financial concerns as
contained in KB lb. This list was created to prevent the penalization of Florida municipalities who did not
realize extraordinary assessment growth between 2000 and 2005, or was otherwise under State fiscal
oversight. This removal changed the City's adopted millage rate with a majority vote from 7.2999 mills to
6.6429 mills for calculating the operating millage rate in fiscal year 2009. Additionally, HB lb limited the
growth in this millage rate to the statewide change in per capita Florida personal income at 4.15% with a
majority vote of the City Commission. However, HB lb also allowed the City to further increase this millage
rate by 10% with a two-thirds vote of the City Commission.
Additional relief to property owners was provided on January 29, 2008 when voters approved Amendment 1.
Amendment 1 in fiscal year 2009 provided homestead property owners with an additional $25,000 in
exemption on the 3rd $25,000 in assessed value. It also provided a $25,000 exemption on personal business
property and allows portability of Save Our Home savings up to $500,000. Starting in fiscal year 2010, a
10% assessment cap will be applied to non -homestead properties. Amendment 1 reduced the City's
preliminary gross taxable values by $1.2 billion, from $40.9 billion to $39.7 billion in fiscal year 2009. This
made the overall year-to-year change in the City's preliminary gross taxable values 1.6% compared to 14.5%
in fiscal year 2008.
To limit the impact Amendment 1 will have on the City's taxable values and calculation of its operating
millage rate, the Florida Legislature passed Senate Bill 1588 also known as the Glitch Bill. The Glitch Bill
removed the effects of Amendment 1 from the calculation of the City's rolled back rate and reduced the
majority vote operating millage rate by 0.2251 mills from 6.9764 mills to 6.7513 mills. 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 6.1%, which is an increase of 53.85% from the prior year.
This rate is lower than the State's average unemployment rate of 6.9% and lower than the national average
rate of 6.2%. The region's inflation rate of 5.8% is significantly higher than the national indices of 4.1%.
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 fmances and to demonstrate the City's accountability. If
users have questions about the report or need additional financial information, they should contact Diana M.
Gomez, Director of the City of Miami's Finance Department, 444 Southwest 2nd Avenue, 6th Floor Finance,
Miami, Florida 33130, or visit the City's web site at www.miamigov.com.
12
City of Miami, Florida
Statement of Net Assets
September 30, 2008
Governmental Component
Activities Units
Assets
Cash, Cash Equivalents, and Investments $ 431,043,578 $ 31,171,351
Receivables - Net 33,198,410 608,276
Accrued Interest 1,432,904 105,767
Due from Other Governments 58,330,135 326,896
Prepaids 973,788 187,513
Other Assets 183,098 1,720,315
Restricted Cash, Cash Equivalents, and Investments 41,014,805 24,946,799
Capital Assets:
Non -Depreciable 343,258,205 28,657,720
Depreciable - Net 715,506,334 25,296,579
Deferred Charges 8,325,897
Total Assets 1,633,267,154 113,021,216
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
Building Department
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.
83,846,147
3,763,964
16,304,375
5,121,076
3,950,006
23,266,012
5,430,784
16,937,917
528,304,967
79,048,482
125,654,253
27,192,737
4,265,603
4,606,727
2,071,555
418,044
208,499
1,131,144
950,000
384,380
50,094,210
396,094
923,086,323 60,260,653
773,959,639 28,034,769
87,153,882 -
8,756,858 358,323
3,654,134 -
3,964,103
38,579,646
198,967
5,399,241
(211,485,639) 24,260,017
$ 710,180,831 $ 52,653,109
13
Functions/Programs Activities:
Primary Government:
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
Total primary government
Component Units:
Miami Sports Exhibition Authority
Department of Off -Street Parking
Downtown Development Authority
Bayfront Park
Civilian Investagative Panel
Total component units
City of Miami, Florida
Statement of Activities
For the Year Ended September 30, 2008
Program Revenues
Charges for
Expenses Services
Operating
Grants and
Contributions
$ 140,680,932 $ 40,062,337 $ 1,660,916
16,217,858 13,076,692 110,706
42,029,139 702,888 34,494,253
13,904,297 1,140,923 5,804,490
72,572,813 48,488,699 162,309
370,007,019 16,577,772 20,088,346
15,354,423 16,660,099 473,484
39,550,244 4,106,702 384,512
27,206,895 - -
$ 737,523,620 $ 140,816,112 $ 63,179,016
Capital
Grants and
Contributions
Net (Expenses) Revenue and Changes
in Net Assets
Primary Government
Governmental
Activities
Component
Units
$ 1,177,667 $ (97,780,012) $
(3,030,460)
(6,831,998)
2,432,802 (4,526,082)
20,766,849 (3,154,956)
13,240,196 (320,100,705)
3,305,494 5,084,654
13,251,128 (21,807,902)
(27,206,895)
$ 54,174,136 (479,354,356)
$ 42,855 $ 1,969 $ - $
22,350,980 23,064,384
4,047,620 - -
3,369,139 3,381,574
1,037,559 - 1,056,561
$ 30,848,153 $ 26,447,927 $ 1,056,561 $
General Revenues:
Taxes:
Property Taxes, levied for general purposes
Property Taxes, levied for debt service
Franchise Taxes
State Revenue Sharing - Unrestricted
Sales and Other Use Taxes
Public Service Taxes
Investment Earnings - Unrestricted
Other
Total General Revenues
Change in Net Assets
Net assets - Beginning
Net assets - Ending
The accompanying notes are an integral part of the financial statements.
269,785,445
21,327,853
42,298,452
12,187,197
24,860,795
62,257,072
17,655,647
(40,886)
713,404
(4,047,620)
12,435
19,002
(3,343,665)
4,445,672
1,714,060
(777,881)
450,372,461 5,381,851
(28,981,895)
739,162,726
2,038,186
50,722,377
$ 710,180,831 $ 52,760,563
14
Assets
Cash, Cash Equivalents and Investments
Restricted Cash, Cash Equivalents, and Investments
Receivables
(Net of Allowances for Uncollectibles):
Accounts
Taxes
Due from Other Funds
Due from Other Governments
Accrued Interest
Prepaids
Other Assets
Total Assets
Liabilities and Fund Balances
Liabilities:
Accounts Payable and Accrued Liabilities
Due to Other Funds
Due to Other Governments
Deferred Revenue or Unearned Revenues
Deposits
Total Liabilities
Fund Balances (Deficit):
Reserved for:
Encumbrances
Debt Service
Building Department
Prepaid Items
Unreserved, Designated for
Subsequent Year's Expenditures, Reported in:
General Fund
Future Settlements
Strategic Initiatives
Management Initiatives
Unreserved, Undesignated Reported in:
General Fund
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Total Fund Balances (Deficit)
Total Liabilities and Fund Balances (Deficit)
City of Miami, Florida
Balance Sheet
Governmental Funds
September 30, 2008
Major Funds
General
Fire Rescue
Services
Emergency
Services
Street &
Sidewalks
Other
Non -Major
Governmental
Funds
Total
Governmental
Funds
$ 91,932,815 $
54,708
- $ 1,703,451 $ 84,028,807 $ 253,378,505 $ 431,043,578
40,960,097 41,014,805
9,620,619 23,700 21,952
16,234,738
39,870,872 - -
2,387,217 16,168,533 9,561,334 3,992,437
686,263 1,187 - 301,142
961,946 -
183,095
$ 161,932,273 $ 16,193,420 $ 11,264,785 $ 88,344,338 $ 328,312,771 $ 606,047,587
5,928,434
1,368,967
26,220,614
444,312
11,842
15,594,705
17,603,705
39,870,872
58,330,135
1,432,904
973,788
183,095
$ 44,243,063 $ 2,363,080
9,137,870
2,301,552
17,049, 992 11, 818,377
4,760,218
68,354,825 23,319,327
$ 921,749 $ 10,263,612 $ 26,054,643 $ 83,846,147
14,084,974 16,648,028 39,870,872
- 1,462,412 3,763,964
11,264,785 4,685,218 21,686,600 66,504,972
- - 360,858 5,121,076
26,271,508 14,948,830 66,212,541 199,107,031
3,654,134
961,946
5,000,000
1,648,710
37,687,219
44,625,439
(7,125,907)
(15,006,723)
14,167,446
59,228,062
23,418,005
9,228,173
11,842
4,027,253
82,575,762
140,977,921
1,861,274
37,585,451
9,228,173
3,654,134
973,788
5,000,000
4,027,253
1,648,710
37,687,219
44,625,439
60,443,132
200,205,983
1,861,274
93,577,448 (7,125,907)
$ 161,932,273 $ 16,193,420 $
(15,006,723) 73,395,508 262,100,230 406,940,556
11,264,785 $ 88,344,338 $ 328,312,771 $ 606,047,587
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, 2008
Fund Balances - Total Govemmental Funds (Page 15) $ 406,940,556
Amounts reported for govemmental 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 $ 1,861,022,425
Less: Accumulated Depreciation (802,257,886) 1,058,764,539
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. 40,439,971
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. 9,760,629
Unamortized bond and loan issuance costs are not available to pay for
current period expenditures and therefore are not reported in
the governmental funds. 8,325,897
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
(551,570,979)
(84,479,266)
(142,592,170)
(27,192,737)
(4,265,603)
(3,950,006) (814,050,761)
Net Assets of Governmental Activities (Page 13) $ 710,180,831
The accompanying notes are an integral part of the financial statements.
16
City of Miami, Florida
Statement of Revenues, Expenditures and Changes In Fund Balances (Deficit)
Governmental Funds
For The Year Ended September 30, 2008
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
Premium Long -Term Debt
Total Other Financing Sources (Uses)
Net Changes in Fund Balances
Fund Balances (Deficit) - Beginning
Fund Balances (Deficit) - Ending
Major Funds
General
Fire Rescue
Services
Emergency
Services
Street &
Sidewalks
Other
Non -Major Total
Governmental Governmental
Funds Funds
$ 258,294,391 $
35,319,051
29,788,818
6,031,799
51,320,942 6,806,528
74,998,172 39,366
10,086,415 7,425
6,594,312 102,564
472,433,900 6,955,883
2,484,442
2,484,442
2,278,500
2,367,582
4,615
4,650,697
$ 32,818,908 $ 291,113,299
69,23 6,473 104,555,524
56,050 29,844,868
945,989 6,977,788
94,378,198 157,268,610
11,349,183 86,386,721
5,194,348 17,655,770
4,674,385 4,679,000
3,405,933 10,102,809
222,059,467 708,584,389
57,525,471
10,788,224
54,858,769
249,881,480
6,248,557
24,276,993
28,796,859
65,116,477
27,751,691
10,208,998
3,185,991
923,299
6,058
660,648
32,551,214
18,940,953
447,912
41,036,697
15,946,941
209,610
4,483,882
6,771,161
4,779,144
21,343,143
28,920,735
78,833,648
525,244, 521 13,394,989
(52,810,621)
76,817,851
(30,879,926)
929,357 33,211,862
(6,439,106) 1,555,085 (28,561,165)
16,901,691 - 12,676,447
(43,300) (16,561,808) (4,507,262)
80,163,810
221,713,826
345,641
121,166,841
(175,570,534)
52,935,120
1,344,956
45,937,925 16,858,391 (16,561,808) 88,332,995
(6,872,696) 10,419,285 (15,006,723) 59,771,830
100,450,144 (17,545,192)
13,623,678
(123,617)
222,024
261,878,206
$ 93,577,448 $ (7,125,907) $
77,127,072
11,236,136
41,036,697
15,946,941
55,068,379
265,497,659
13,019,718
29,056,137
28,796,859
65,116,477
27,751,691
21,343,143
28,920,735
114,576,911
794,494,555
(85,910,166)
227,562,830
(227,562,830)
133,098,930
1,344,956
134,443,886
48,533,720
358,406,836
(15,006,723) $ 73,395,508 $ 262,100,230 $ 406,940,556
The accompanying notes are an integral part of the financial statements.
17
City of Miami, Florida
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended September 30, 2008
Net Changes in Fund Balances - Total Governmental Funds (Page 17) $ 48,533,720
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. 24,732,819
Revenues in the statement of activities for the previous year provided current financial resources and, (24,775,483)
as such, are reported as revenues in the funds for the current year.
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
Less: Current Year Depreciation
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins,
donations) that decrease net assets.
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.
$ 121,762,826
(50,785,604)
Principal Paid on Bonds and Loans 21,343,143
Principal Paid on Capital Lease 658,722
Net effect of Deferring and Amortizing Issuance Costs, Premiums, Discounts, and Accretion 1,658,787
Proceeds from Long -Term Debt (134,443,886)
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
(8,007,470)
(988,332)
(27,192,737)
(388,395)
55,051
70,977,222
(1,145,056)
(110,783,234)
(36,521,883)
Change in Net Assets of Governmental Activities (Page 14) $ (28,981,895)
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, 2008
Assets
Cash and Short -Term Investments
Accounts Receivable
Capital Assets
Prepaid Assets
Employee
Retirement
Funds
$ 61,993,490
15,836,041
4,798,046
49,166
82,676,743
Investments
U.S. Government Obligations 292,393,635
Corporate Bonds 275,882,955
Corporate Stocks 1,010,136,956
Money Market Funds and Commercial Paper 24,695,838
International Equity 73,933,123
Mutual Funds 44,479,142
Real Estate 159,853,823
Private Equity 19,747,148
Total Investments 1,901,122,620
Securities Lending Collateral 187,540,846
Total Assets 2,171,340,209
Liabilities
Obligations Under Security Lending 190,141,047
Accounts Payable 1,011,430
Accrued Liabilities 44,479,142
Payable for Securities Purchased 29,639,528
Total Liabilities 265,271,147
Net Assets
Held in Trust for Pension Benefits $ 1,906,069,062
The accompanying notes are an integral part of the financial statements.
City of Miami, Florida
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30, 2008
Employee
Retirement
Funds
Additions
Contributions:
Employer $ 60,070,441
Plan Members 19,303,676
Total Contributions 79,374,117
Investment Earnings (Loss):
Net Increase (Decrease) in Fair
Value of Investments (369,580,443)
Interest 33,347,822
Dividends 20,063,863
Other (254,464)
Total Investment Earnings (Loss) (316,423,222)
Less Investment Expenses 8,576,197
Net Investment Earnings (Loss) (324,999,419)
Reimbursement Income from City 2,543,133
Total (243,082,169)
Deductions
Pension Benefits
Refunds upon Resignation, Death, etc.
Distribution to Retirees
Administrative and Other Expenses
Total
Change in Net Assets
Net Assets - Beginning of Year
Net Assets - End of Year
130,559,134
1,700,099
15,666,175
2,729,063
150,654,471
(393,736,640)
2,299,805,702
$ 1,906,069,062
The accompanying notes are an integral part of the financial statements.
20
Assets
Cash, Cash Equivalents and Investments
Receivables (Net)
Accounts
Taxes
Accrued Interest
Due From Other Government
Prepaids
Other Assets
Restricted Assets:
Cash, Cash Equivalents, and Investments
Capital Assets:
Non -Depreciable
Depreciable, Net
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
Due In More Than One Year:
Bonds and Loans Payable
Compensated Absences
Total Liabilities
Net Assets
Invested in Capital Assets, Net of Related Debt
Restricted for:
Debt Service
Watson Island
Unrestricted
Total Net Assets
City of Miami, Florida
Statement of Net Assets
Discretely Presented Component Units
September 30, 2008
Miami Sports
and Exhibition
Authority
Department
of Off -Street
Parking
Downtown
Development
Authority
Bayfront
Park
Civilian
Investigative
Panel
Total
$ 10,566,296 $ 10,729,706 $ 4,884,490 $ 4,928,210 $ 62,649 $ 31,171,351
7,814
585,766
105,767
326,896
108,323
1,720,315
24,946,799
27,580,468
21,667,548
10,574,110 87,771,588
107,454
10,466,656
$ 10,574,110
4,361,812
2,039,813
407,936
171,608
1,131,144
950,000
384,380
50,094,210
385,265
59,926,168
23,328,486
358,323
4,158,611
$ 27,845,420
The accompanying notes are an integral part of the financial statements.
2,645
55,266
190,832
5,133,233
106,410
31,742
10,829
148,981
190,832
19,865
16,110
1,077,252
3,438,199
9,479,636
94,858
10,108
36,891
141,857
4,515,451
4,793,420 4,822,328
$ 4,984,252 $ 9,337,779 $ 19,002 $ 52,653,109
605,631
2,645
105,767
326,896
187,513
1,720,315
24,946,799
28,657,720
25,296,579
62,649 113,021,216
43,647
43,647
4,606,727
2,071,555
418,044
208,499
1,131,144
950,000
384,380
50,094,210
396,094
60,260,653
28,034,769
358,323
19,002 24,260,017
21
City of Miami, Florida
Statement of Activities
Discretely Presented Component Units
For the Year Ended September 30, 2008
Expenses
Program Revenues
Operating Capital
Charges for Grants and Grants and
Services Contributions Contributions
Miami Sports
Exhibition Authority
Culture and Recreation $ 42,855 $ 1,969 $
Total Miami Sports Exhibition Authority 42,855 1,969
Department
of Off -Street Parking
Transportation 22,350,980 23,064,384
Total Department of Off -Street Parking 22,350,980 23,064,384
Downtown
Development Authority
Economic Development
Total Downtown Development Authority
Bayfront Park
Parks and Recreation
Total Bayfront Park
Civilian Investigative Panel
General Government
Total Civilian Investigative Panel
Total Component Units
4,047,620
4,047,620
3,369,139 3,381,574
3,369,139 3,381,574
1,037,559 - 1,056,561
1,037,559 - 1,056,561
$ 30,848,153 $ 26,447,927 $ 1,056,561 $
General Revenues:
Taxes:
Property Taxes, levied for general purposes
Investment Eamings
Other
Total General Revenues
Change 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 Civilian
and Exhibition of Off -Street Development Bayfront Investigative
Authority Parking Authority Park Panel
Totals
$ (40,886) $ - $ - $ - $ - $ (40,886)
(40,886) - - - - (40,886)
713,404 - - - 713,404
713,404 - - - 713,404
(4,047,620) - - (4,047,620)
(4,047,620) - - (4,047,620)
12,435 - 12,435
12,435 - 12,435
19,002 19,002
19,002 19,002
(40,886) 713,404 (4,047,620) 12,435 19,002 (3,343,665)
- - 4,445,672 - - 4,445,672
240,467 1,312,945 72,756 87,892 - 1,714,060
(935,288) - 56,244 101,163 - (777,881)
(694,821) 1,312,945
(735,707)
11,309,817
2,026,349
25,819,071
4,574,672 189,055 - 5,381,851
527,052 201,490 19,002 2,038,186
4,457,200 9,136,289 - 50,722,377
$ 10,574,110 $ 27,845,420 $ 4,984,252 $ 9,337,779 $ 19,002 $ 52,760,563
23
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24
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
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 standards 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.
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.
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CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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,
2008.
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 (CRA).
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).
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,
26
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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 2008.
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.
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.
27
CITY OF MIAMI, FLORIDA
NOTES TO 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 $121,830,000 at September 30, 2008. 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, 2008 is as
follows:
Mercy Hospital Miami Jewish Home Total
Series 1998A $ 13,360,000 $ $ 13,360,000
Series 2002 35,000,000 35,000,000
Series 2003 14,605,000 - 14,605,000
Series 2006 35,195,000 - 35,195,000
Series 2005 - 23,670,000 23,670,000
Total $ 98,160,000 $ 23,670,000 $ 121,830,000
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's 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 department 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.
28
CITY OF MIAMI, FLORIDA
NOTES TO 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 12t1i 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 lst Street
Miami, Florida 33130-1602
B. Government -Wide Financial Statements
BFP
301 N. Biscayne Blvd.
Miami, Florida 33132-2226
CIP
155 South Miami Ave
Penthouse 1-B
Miami, FL 33130-1609
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 discreetly presented 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 which briefly explains the adjustments necessary to transform the fund -based financial
29
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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 proceeds of an excise tax that is
restricted to expenditures which supplement the City's emergency Fire Rescue operations.
Emergency Services Fund — This Special Revenue Fund accounts for grants and reimbursements related
to disasters. Additionally, this fund accounts for non -disaster related reimbursable expenditures.
Streets and Sidewalks — This Capital Projects 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 - 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 and
judgments are recorded only when payment is due. Expenditures related to pensions and other post
employment benefits are recognized when the City has made a decision to fund those 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.
30
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
As a general rule, the effect of interfund activity has been eliminated from the government -wide financial
statements; however, interfund services provided and used are not eliminated in the process of
consolidation. 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.
E. Assets, Liabilities, and Net Assets or Fund 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 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.
31
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
depaittnent 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.
At September 30, 2008 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 for further information.
32
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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 proprietary and 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.
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.
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, in accordance with Florida Statute Section 440. The
City is self -insured for health claims and uses a commercial carrier as the administrator. The 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 $150,737,724 of restricted net assets, of which
$54,826,984 is restricted by enabling legislation.
33
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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.
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 Midtown CRA Special Revenue Fund exceeded
their budgetary authorization by $1,112,084.
Fund Deficits
The following funds had undesignated deficits in the amounts indicated as of September 30, 2008:
Fund Deficit
Special Revenue:
Fire Services $ 7,125,907
Emergency Services 15,006,723
Homeless 289,970
34
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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 in the ensuing
fiscal year.
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.
At September 30, 2008, the investments of the primary government, exclusive of the Pension Trust
Funds, consisted of the following:
35
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Investment Type Fair Value
United States Treasury Notes $ 35,217,250
Federal National Mortgage Association 57,350,700
Federal Home Loan Mortgage Corporation 63,104,080
Federal Farm Credit Bank 97,289,046
Federal Home Loan Bank 92,450,704
Commercial Paper 84,057,749
Money Market Fund 41,014,805
Total Investments 470,484,334
Bank Deposits 1,574,049
Total Cash, Cash Equivalents and Investments $ 472,058,383
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, 2008, 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
Federal National Mortgage Association
Federal Home Loan Mortgage Corporation
Federal Farm Credit Bank
Federal Home Loan Bank
Commercial Paper
Money Market
0.40
0.21
0.32
0.23
0.46
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).
The table below summarizes the investments by credit rating at September 30, 2008:
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 Al/P 1/F 1
Money Market Fund Not Rated
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
36
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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, 2008, the following issuers held 5% or more of the investment portfolio:
Issuer Percentage
Federal Farm Credit Bank 21%
Federal Home Loan Bank 20%
Federal Home Loan Mortgage Corp. 13%
Federal National Mortgage Association 12%
United States Treasury Notes 7%
The above excludes investments issued or explicitly guaranteed by the U.S. government and 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 of its investments. 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,
2008:
Fair Value ($000)
Investment Maturities:
Less than 1 year
1 to 5 years
6 to 10 years
More than 10 years
U.S. U.S. Corporate
Treasuries Agencies Bonds
Total
$ 43,789 $ 179,615 $ 197,919 $ 421,323
6,596 1,746 7,378 15,720
13,164 5,704 24,700 43,568
12,133 18,549 122,788 153,470
11,896 153,615 43,053 208,564
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.
37
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The following table discloses credit ratings by investment type, at September 30, 2008, as applicable:
Percentage
Investment Type/Rating Fair Value of Portfolio
U.S. Government guaranteed* $ 223,403,484 53.02%
Credit risk debt securities:
AAA 23,370,309 5.55%
AA+ 1,548,587 0.37%
AA 3,682,741 0.87%
AA- 6,283,727 1.49%
A+ 11,232,091 2.67%
A 14,551,459 3.45%
A- 12,309,689 2.92%
BBB+ 15,037,777 3.57%
BBB 8,800,307 2.09%
BBB- 5,494,902 1.30%
BB and lower 542,845 0.13%
Bond Funds** 85,543,133 20.30%
Not Rated 9,521,641 2.26%
Total credit risk debt securities 197,919,208 46.98%
Total fixed income securities $ 421,322,692 100.00%
* 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, 2008, bond funds are comprised of securities rated AAA (76%), AA (4%), A (8%), BBB (7%), BB and
lower (5%) per Lehman Brothers Aggregate Bond 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 Plan 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, 2008.
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:
38
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Holdings valued
in U.S. Dollars -
Currency International Equities
Euro $ 25,375,718
Swedish krona 2,616,959
Norwegian krona 2,356,805
Canadian dollar 1,972,778
Swiss franc 1,643,139
South Korean won 1,583,211
Japanese yen 1,280,225
Hong Kong dollar 760,789
Other 543,668
British pound sterling 113,863
$ 38,247,155
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 89 days. The custodial bank and its affiliates are prohibited from borrowing the
system's securities. The agent lends the Trust 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.
The following represents the balances relating to securities lending transactions at September 30, 2008:
Securities Lent:
Fair Value of Cash Collateral Cash Collateral
Underlying Received/Securities Investment
Securities Collateral Value Value
Lent for cash collateral:
U.S. government and agency obligations $ 49,988,535 $ 51,311,456 $ 50,609,766
Domestic corporate stocks 128,298,187 130,021,567 128,243,507
Domestic corporate bonds 7,645,957 7,843,533 7,736,272
International corporate stocks 880,196 964,491 951,301
Total securities lent $ 186,812,875 $ 190,141,047 $ 187,540,846
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
39
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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.
During the fiscal year 2008, the value of certain underlying securities became impaired because of the
credit failure of the issuer. Accordingly, the carrying amount of the collateral reported in the Trust's
statement of plan net assets for FY 2008 was reduced by $2.6 million to reflect this impairment and
reflect the net realizable value of the securities purchased with collateral from securities lending
transactions.
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, 2008, were as follows:
Investment Type
Fair Value
GESE Staff
Trust Trust
U.S. Government and Agency Securities
Corporate Stocks
Corporate Bonds
Real Estate Fund
Money Market Fund
Total Investments
GESE Trust
$ 65,451,840 $ -
362,740,215 627,831
77,503,821 459,926
505,695,876
45,012,487
24,547,610
1,087,757
$ 575,255,973 $ 1,087,757
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 duration at +/-
one year of the benchmark duration. The GESE Trust utilizes duration to assess its risk to changes in
interest rates.
The following represents the investments' market value and duration of the securities at September 30,
2008:
40
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Investment Type Fair Value
Weighted Avg.
Maturity Years
Asset -Backed $ 12,157,000 2.94
Corporate -Bank 10,876,000 3.33
Corporate -Finance 10,812,000 3.66
Corporate -Industrial 18,272,000 6.54
Corporate-Misc 1,474,000 2.59
Corporate -Transportation 3,300,000 3.07
Corporate -Comm. Utility 8,617,000 4.49
Corporate -Electric Utility 2,050,000 4.86
Corporate -Gas Utility 1,013,000 6.11
US Treasury 13,428,000 6.98
US Agency 1,019,000 6.88
Yankee -Industrial 1,307,000 7.05
Yankee -Utility 369,000 10.43
Yankee -Finance 41,000 9.84
Municipal 2,045,000 3.19
Mortgages 55,976,000 3.70
Cash 3,503,000 0.02
Total $ 146,259,000
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, 2008, the following table displays Moody's ratings and the market value of the total
fixed -income portfolio invested:
Investment Type/Rating Market Value Percent
Treasury* $ 13,428,000 9.18%
Agency* 1,019,000 0.70%
Asset -Backed* * 12,157,000 8.31%
Mortgages** 55,976,000 38.27%
Aaa 2,505,000 1.71%
Aa 11,239,000 7.68%
A 29,863,000 20.42%
Baa 16,448,000 11.25%
Ba 121,000 0.08%
Cash 3,503,000 2.40%
Total $ 146,259,000 100.00%
* Implied AAA rating
** There is no rating classification for these investments
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.
41
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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 U.S. 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, 2008, the GESE Trust did not
have any investments with issuers greater than 5%.
Foreign Currency Risk - At September 30, 2008, 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 4.46 years.
Credit Risk - The Staff Trust Investment Policy Statement limits credit risk by requiring all fixed -
income securities to be rated by Moody's as a Baa/BBB or better. At September 30, 2008, the Staff Plan
did not have investments in fixed -income securities.
Investment Type/ Rating Fair Value Effective Duration
Government* $ 149,000 32.39%
Aaa 219,000 47.61%
Aa 22,000 4.78%
A 38,000 8.26%
Baa 32,000 6.96%
$ 460,000 100.00%
* 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
42
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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, 2008, the Staff Trust did not have any
positions with issuers greater than 5%.
Foreign Currency Risk - At September 30, 2008, the GESE Staff Trust did not have any foreign fixed -
income investments and is therefore, not exposed to foreign currency risk. The Staff Trust prohibits
investments in foreign currency denominated securities.
Elected Officers' Retirement Trust (EORT)
At September 30, 2008, the investments of EORT consisted of the following:
Investment Type Fair Value
Unted States Treasury Notes $ 552,321
Federal Home Loan Mortgage Corporation 746,303
Federal Farm Credit Bank 747,893
Federal National Mortgage Association 748,357
Federal Home Loan Bank 743,437
Cash and Money Market Funds 148,229
Total $ 3,686,540
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
investment to a maximum of 5 years. As of September 30, 2008, 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 In Years
United States Treasury Notes
Federal Home Loan Mortgage Corporation
Federal Farm Credit Bank
Federal National Mortgage Association
Federal Home Loan Bank
Money Market Funds
0.17
0.58
2.08
2.58
3.58
Less than 1 year
The investments at September 30, 2008 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, and 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.
43
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The table below summarizes the investments by credit rating at September 30, 2008:
Investment Type Credit Rating
United States Treasury Notes
U.S. Agency Obligations
Cash and Money Market Funds
AAA
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 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 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.
As of September 30, 2008, the following issuers held 5% or more of the investment portfolio:
Issuer
United States Treasury Notes
Federal Home Loan Mortgage Corporation
Federal Farm Credit Bank
Federal National Mortgage Association
Federal Home Loan Bank
Cash and Money Market Funds
NOTE 3. — RECEIVABLES
Receivables at year-end for the City in individual
including the applicable allowance for uncollectible
Receivables
General
Fire Rescue
Services
Percent
15%
20%
20%
20%
20%
5%
100%
major funds and non -major funds in the aggregate,
accounts, are as follows:
Emergency
Services
Streets &
Sidewalks
Other
Non -Major
Govt Funds Total
Accounts
Taxes
Due from Other Governments
Loan to Component Unit
Loans Receivable
Gross Receivables
Less: Allow for Uncollectable
Net Total Receivables
$ 20,694,345 $
16,234,738
2,387,217
39,479 $
16,168,533
$ 375,185
11,678,327 3,992,437
$ 7,571,970
1,368,967
28,770,240
2,550,000
8,283,761
$ 28,680,979
17,603,705
62,996,754
2,550,000
8,283,761
39,316,300 16,208,012
(11,073,726) (15,779)
$ 28,242,574 $ 16,192,233
11,678,327
(2,116,993)
$ 9,561,334
4,367,622
(353,233)
$ 4,014,389
48,544,938 120,115,199
(15,026,923) (28,586,654)
$ 33,518,015 $ 91,528,545
44
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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 Department of Off -Street
Parking (DOSP) in the amount of $2,550,000, which is fully reserved for as of September 30, 2008 (see
Note 8).
Loans receivables amount represents a loan to Parrot Jungle Island authorized under a 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, 2008 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) and
Affordable Housing Trust Fund, are required to be repaid by the homeowner if the related properties are
transferred or sold prior to the established timeframe of the program. 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. The City's
reasonable assumption is that the homeowner will reside at the home for the stipulated period. 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.
A summary of single-family, deferred long-term loans that are not recognized in the financial statements
is as follows:
September 30, 2008
Program Loans Outstanding Amount
CDBG 103 loans $ 1,931,346
HOME 402loans 13,236,230
SHIP 409 loans 8,540,848
Other 44loans 1,169,294
Total 958 loans $ 24,877,718
Home Ownership and Rental Multi -Family Loans
As of September 30, 2008, there are 85 projects aggregating to $42,580,568 of loans 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.
45
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Economic Development Commercial Loans
As of September 30, 2008, there are 38 loans aggregating to $10,376,165 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 to the City in the
event that the property is sold or transferred. 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 6%. 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 2007-2008 levy was based, was $37,755,839,094. 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, 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, 2008, was $7.2999 per $1,000. The debt
service tax rate for the same period was $0.5776 per $1,000.
Property taxes receivable reported in the government -wide Statement of Net Assets and the governmental
funds Balance Sheet represent amounts due for unpaid property taxes at September 30, 2008. Property
taxes that are not considered "available" have been reported as deferred revenues in the governmental
funds Balance Sheet.
46
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
NOTE 5. — CAPITAL ASSETS
The following is a summary of changes in capital assets during the year ended September 30, 2008:
Primary Government
Beginning Additions/ Retirements/ Ending
Balance Transfers In Transfers Out Adjustments- Balance
Governmental Activities:
Non -Depreciable Assets:
Land $ 86,719,846 $ 1,196,728 $ 328,583 $ - $ 87,587,991
Construction in Progress 194,648,902 98,969,532 37,948,220 - 255,670,214
Total Capital Assets, not being depreciated 281,368,748 100,166,260 38,276,803 - 343,258,205
Depreciable Assets:
Buildings 136,638,045 - - 136,638,045
Improvements 95,989,672 11,289,259 3,219,248 110,498,179
Machinery and Equipment 138,137,049 25,506,019 3,091,599 527,046 161,078,515
Infrastructure 1,087,515,720 22,033,761 - - 1,109,549,481
Total Capital Assets being depreciated 1,458,280,486 58,829,039 3,091,599 3,746,294 1,517,764,220
Less Accumulated Depreciation for:
Buildings 74,928,429 3,232,147 - 78,160,576
Improvements 31,703,667 4,569,039 3,142,285 39,414,991
Machinery and Equipment 80,942,615 16,306,437 2,911,226 524,366 94,862,192
Infrastructure 563,142,146 26,677,981 - - 589,820,127
Total accumulated depreciation 750,716,857 50,785,604 2,911,226 3,666,651 802,257,886
Total Capital Assets being depreciated, net 707,563,629 8,043,435 180,373 79,643 715,506,334
Governmental activities capital assets, net $ 988,932,377 $ 108,209,695 $ 38,457,176 $ 79,643 $ 1,058,764,539
* Adjustment necessary to record gross historical cost and gross accumulated depreciation of certain assets from Gusman and Olympia
that were recorded at net book value in prior years.
Depreciation expense was charged to governmental functions as follows:
Function/Program Activities Depreciation Expense
General Government $ 31,945,867
Planning and Development 98,292
Community Development 61,692
Community Redevelopment Areas 390,158
Public Works 4,819,333
Public Safety 8,900,407
Public Facilities 499,938
Parks and Recreation 4,069,917
Total depreciation expense $ 50,785,604
Construction Commitments
At September 30, 2008, the City had in process various construction projects that were not completed
with a remaining balances totaling $29,439,242. Funding of these projects is to be made primarily
through the proceeds of the related bond issues, loans, and future tax, revenues and grants.
Discretely Presented Component Units Capital Assets
The following is a summary of changes in capital assets of the discretely presented component units
during the year ended September 30, 2008:
MSEA and CIP did not have capital asset balances at September 30, 2008.
47
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
A summary of the changes in capital assets for DOSP is as follows:
DOSP
Beginning Ending
Balance Additions Retirements Balance
Capital assets, not being depreciated:
Land $ 14,152,054 $ - $ - $ 14,152,054
Construction in progress 3,793,154 9,698,776 (63,516) 13,428,414
Total capital assets, not being depreciated 17,945,208 9,698,776 (63,516) 27,580,468
Capital assets, being depreciated:
Building and structures 29,229,457 154,966 (1,488,808) 27,895,615
Leasehold improvements 8,835,351 1,101,066 (12,732) 9,923,685
Furniture and fixtures 307,326 7,625 - 314,951
Equipment 14,587,735 1,345,849 (113,149) 15,820,435
Total capital assets, being depreciated 52,959,869 2,609,506 (1,614,689) 53,954,686
Less accumulated depreciation for:
Building and structures (14,996,086) (793,722) 1,498,231 (14,291,577)
Leasehold improvements (6,196,047) (624,917) (715) (6,821,679)
Furniture and fixtures (208,629) (17,547) - (226,176)
Equipment (9,780,538) (1,054,019) (113,149) (10,947,706)
Total accumulated depreciation (31,181,300) (2,490,205) 1,384,367 (32,287,138)
Total capital assets, being depreciated, net 21,778,569 119,301 (230,322) 21,667,548
DOSP capital assets, net
$ 39,723,777 $ 9,818,077 $ (293,838) $ 49,248,016
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 Balan ce
$ 566,722 $ 10,783 $ - $ 577,505
(322,240) (64,433)
(386,673)
$ 244,482 $ (53,650) $ - $ 190,832
48
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
BFP
Beginning Ending
Balance Additions Retirements Balance
Capital assets, not being depreciated:
Land $ 516,129 $ - $ - $ 516,129
Construction in progress 350,543 210,580 - 561,123
Total capital assets, not being depreciated: 866,672 210,580 - 1,077,252
Capital assets, being depreciated:
Buildings 2,637,934 - - 2,637,934
Public domain and system infrastructure 3,108,122 162,537 - 3,270,659
Machinery and equipment 371,118 50,500 - 421,618
Total capital assets, being depreciated 6,117,174 213,037 - 6,330,211
Less accumulated depreciation for:
Buildings (1,018, 962)
Public domain and system infrastructure (1,417,954)
Machinery and equipment (243,946)
(52,759)
(132,581)
(25,810)
(1,071,721)
(1,550,535)
(269,7 56)
Total accumulated depreciation (2,680,862)
Total capital assets, being depreciated, net 3,436,312
BFP capital assets, net
(211,150)
1,887
(2,892,012)
3,438,199
$ 4,302,984 $ 212,467 $ - $ 4,515,451
Summary of discretely presented component unit capital asset balances is as follows:
DOSP DDA BFP Total
Capital Assets:
Non -depreciable $ 27,580,468 $ - $ 1,077,252 $ 28,657,720
Depreciable, Net 21,667,548 190,832 3,438,199 25,296,579
$ 49,248,016 $ 190,832 $ 4,515,451 $ 53,954,299
Depreciation expenses were charged to the discretely presented component units as follows:
Depreciation
Entity Expense
DOSP $ 2,490,205
DDA 64,433
BFP 211,150
Total depreciation expense $ 2,765,788
49
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
NOTE 6. — ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities at September 30, 2008 consisted of the following:
Other
Non -Major
Fire Rescue Emergency Street & Governmental
General Services Services Sidewalks Funds Total
Vendors $ 27,902,646 $ 2,101,270 $ 921,749 $ 10,263,612 $ 24,856,984 $ 66,046,261
Salaries
and Benefits 16,340,417 261,810 - 1,197,659 17,799,886
Total $ 44,243,063 $ 2,363,080 $ 921,749 $ 10,263,612 $ 26,054,643 $ 83,846,147
NOTE 7. — INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The balances reflected as due from/due to other funds as of September 30, 2008 are as follows:
Receivable Fund Payable Fund Amount
General Fund
General Fund
General Fund
Fire Rescue Services
Emergency Services
Other Non -Major Governmental Funds
$ 9,137,870
14,084,974
16,648,028
$ 39,870,872
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, 2008:
Transfer Out
General
Fire Rescue Service
Emergency Services
Street & Sidewalks
Other Non -Major
Governmental Funds
Total
Transfer In
General
$ 300,000
400,000
30,179,926
$ 30,879,926
Fire Rescue Emergency
Service Services
$ 43,300 $ - 16,561,808
Street &
Sidewalks
$ 2,022,213
2,485,049
$ 43,300 $ 16,561,808 $ 4,507,262
Other
Nonmajor
Governmental
Funds
$ 74,752,338
39,883
12,276,447
88,501,866
$ 175,570,534
Total
$ 76,817,851
16,901,691
12,676,447
121,166,841
$ 227,562,830
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.
50
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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, 2008:
Primary Government
General Obligation bonds
Special obligation revenue
bonds and loans
Accretion
Deferred amounts
Total bonds and loans
Other liabilities:
Capital lease
Compensated absences
Claims payable
Other Post Employment Benefits
Net pension obligation
Total governmental activities
and long-term liabilities
Beginning
Balance
$ 245,689,409 $
150,089,872
36,177,509
8,798,992
440,755,782
658,722
76,471,796
141,603,838
3,877,208
Additions Reduction
$ (10,295,644)
133,098,930 (11,047,499)
- (1,297,075)
1,344,956 (988,471)
134,443,886 (23,628,689)
- (658,722)
20,527,261 (12,519,791)
36,182,885 (35,194,553)
27,192,737 -
388,395
Ending
Balance
$ 235,393,765
Due within
One Year
$ 10,335,262
272,141,303 12,930,750
34,880,434 -
9,155,477 -
551,570,979 23,266,012
84,479,266
142,592,170
27,192,737
4,265,603
5,430,784
16,937,917
$ 663,367,346 $ 218,735,164 $ (72,001,755) $ 810,100,755 $ 45,634,713
Claims and judgments, compensated absences, net pension obligation, and other post employment
benefits are generally liquidated by the General Fund.
51
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, 2008:
DESCRIPTION
General Obligation Bonds:
General Obligations Refunding Bonds
Series 1992
Homeland Defense/Neighborhood CIP
Series 2002 (Limited)
General Obligation Refunding Bonds
Series 2002A
General Obligation Bonds
Other Issues
General Obligation Refunding Bonds
Series 2003B
General Obligation Refunding Bonds
Series 2003
General Obligation Refunding Bonds
Series 2007A (Limited)
General Obligation Refunding Bonds
Series 2007B (Limited)
Total General Obligation Bonds
Special Obligation and Revenue Bonds and Loans:
Special Revenue Refunding Bonds
Series 1987
Community Redevelopment Revenue Bonds
Series 1990
Special Obligation Non -Ad Valorem
Series 1995
Special Obligation Non -Ad Valorem Revenue
Series 1995
Special Revenue Refunding Bonds
Series 2002A
Special Revenue Refunding Bonds
Series 2002C
Non Ad Valorem Variable Rate Refunding Bonds
Series 2006
Sunshine State Government Financing
Commission Loans
SEOPW - Section 108 HUD Loan
Wynwood - Section 108 HUD Loan
Wagner Square Section 108 HUD Loan
Sunshine State Government Financing
Commission -Secondary Loan
Pan-ot Jungle
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
Purpose of
Issue
Amount
Issued
Outstanding
Balance
Interest Rate
Range
Refunding
Homeland Defense
Refunding
Housing
Refunding
Refunding
Refunding
Homeland Defense
Refunding
Redevelopment
MRC Building
Pension
Refunding
Refunding
Refunding
Facility Improvements
Redevelopment
Redevelopment
Redevelopment
SCI, Melreese
Development
Facility Improvements
Facility Improvements
Street & Highway
Redevelopment
and Loans
$ 70,100,000 $
153,186,406
32, 510,000
23,190,000
4,180,000
18, 680,000
103,060,000
50, 000,000
6,385,000 5.9%-6%
40,058,765 1.8 %-4.97 %
26,795,000 3.7%-5.375%
880,000
4,100,000
4,115,000
103,060,000
.5%-4%
2%-3.5%
3%-5%
4%-5%
50,000,000 4.995%-5%
454,906,406
235,393,765
$ 65,271,325 $ 6,224,539 5.25%-7.3%
11,500,000 2,010,000 8.50%
22,000,000 1,245,000 5.4%-5.7%
72,000,000 30,875,000 6.5%-7.25%
27,895,000 27,330,000 3.7%-5.375%
28,390,000 21,790,000 3%-4.375%
30,615,000 29,010,000 (4)
27, 630,900
5,100,000
5,500,000
3,999,000
7,581,900
3,150,000
2,610,000
3,999,000
(1)
8.47%-9.03%
(3)
(3)
3,500,000 1,195,000 (1)
6,112,000 4,312,000
6,600,000 6,600,000
42, 500,000
80, 000,000
1,708,864
42,500,000
80,000,000
1,708,864
440,322,089 272,141,303
$ 895,228,495 $ 507,535,068
(1) These variable rate loans are subject to a 12% interest rate cap. The Commission loans had an average interest rate of 3.98% on September 30, 2008.
(1)
(1)
3.5%-5.0%
0.00%
(2) The amortization requirement of the covenant program (not the individual issues) variable rate obligation requires a minimum amortization over the 1/3 (10 years) of the normal (30 years)
maturity.
(3) These variable rate loans are subject to LIBOR plus 0.2%. The interest is calculated monthly and paid to the trustee quarterly.
(4) These variable rate loans are subject to LIBOR plus 0.2%. The interes
s calculated and paid monthly.
52
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, 2008 are as
follows:
Special Obligation
Year General Revenue Bonds
Ended Obligation Bonds and Loans Total
September 30, Principal Interest Principal Interest Principal Interest
2009 $ 10,335,262 $ 11,390,034 $ 14,639,622 $ 20,337,353 $ 24,974,884 $ 31,727,387
2010 10,309,048 11,420,388 15,223,629 19,818,927 25,532,677 31,239,315
2011 10,357,664 11,375,053 15,032,810 19,144,746 25,390,474 30,519,799
2012 10,373,376 11,374,472 16,920,515 17,228,050 27,293,891 28,602,522
2013 9,932,644 11,482,535 17,677,230 16,426,795 27,609,874 27,909,330
2014-2018 63,650,771 45,869,755 81,815,497 51,454,569 145,466,268 97,324,324
2019-2023 77,760,000 19,536,504 39,376,000 25,641,617 117,136,000 45,178,121
2024-2028 42,675,000 5,545,684 33,661,000 13,435,231 76,336,000 18,980,915
2029-2033 - - 18,855,000 7,266,438 18,855,000 7,266,438
2033-2037 - - 18,940,000 1,953,250 18,940,000 1,953,250
$ 235,393,765 $ 127,994,425 $ 272,141,303 $ 192,706,976 $ 507,535,068 $ 320,701,401
Summary of New Debt Issuances
$6,600,000 Sunshine State Governmental Financing Commission Loan - On October 3, 2007, the
City obtained a $6,600,000 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.
$80,000,000 Special Obligation Revenue Bonds, Series 2007 - On December 5, 2007, the City issued
$80,000,000 in Special Obligation Bonds, Series 2007 for the purpose of financing various street and
sidewalk capital improvement projects. The bonds were issued with interest rates ranging from 3.500%
to 5.25% maturing during years 2008 through 2031. The bonds are to be repaid by ad valorem tax
revenues.
$42,500,000 Sunshine State Governmental Financing Commission Loan - On August 14, 2008, the
City obtained a $42,500,000 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 non -ad valorem revenues sufficient to satisfy
the required annual debt service payments.
$3,999,000 WAGNER SQUARE — HUD Section 108 Loan - On September 19, 2008, the City obtained
a $3,999,000 loan under the Department of Housing and Urban Development Section 108 Program. The
loan proceeds will be used to fund the Wagner Square Project. The Wagner Square Project is an
arrangement between the City of Miami, (the "City"), and Wagner Square LLC ("Wagner"), a developer,
to build a mixed -use development consisting of two residential towers each to include 99 units of which
52 are to be affordable housing units. Under the Section 108 loan, the $4,000,000 was received by the
53
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
City and was put in escrow on September 19, 2008. Proceeds will be provided to the developer as
construction on the Wagner Square Project progresses. This loan has a final maturity of August 1, 2024,
and bears an interest rate which is based on the one month LIBOR + .20% (20 basis points). See note 12
for disclosure of agreement with developer.
Parrot Jungle Island & Gardens Loan
In September 1998, the City of Miami entered into a joint participation agreement with Miami -Dade
County regarding a $25 million United States Housing and Urban Development Section 108 loan for the
construction of Parrot Jungle Island & Gardens. The agreement required the City to assume 80% of the
guarantee of the loan contingent upon certain conditions precedent. The conditions precedent, among
other things, included provisions that the Parrot Jungle Island & Gardens loan be both current and not in
default at the time the City assumes its guarantee and that Miami -Dade County deliver to the City of
Miami loan documents that have been properly assigned, endorsed, and transferred without recourse to
the City.
During the current fiscal year, the City made a payment representing eighty percent (80%) of the Section
108 Loan payment due by the County to U.S. HUD on August 1, 2008. The City paid $1,364,923 in
interest and $1,000,000 in principal payments in fiscal year 2008. The City has entered into a loan
participation agreement with Miami -Dade County whereby the City assumed 80% of the loan obligation.
Final maturity on this loan is in 2019. As of September 30, 2008, the City is obligated to make principal
payments totaling $4,312,000 thru 2011.
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, 2008, the statutory limitation for the City amounted to
$5,400,939,950 providing a debt margin of $5,167,684,697 after consideration of $233,255,253 of
general obligation bonds outstanding at September 30, 2008 and adjusted for the fund balance of
$2,138,512 in the related Debt Service Fund.
Pledged Revenue
The City pledged future revenue proceeds of (i) 80% People Transportation Taxes, (ii) 100% 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 $0 and $2,227,579, respectively.
The current year revenues were (i) $12,654,846, (ii) $6,979,401, and (iii) $14,539,482, 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.
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.
54
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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 $2,138,512 with the escrow agent during fiscal year 2008 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 $8,950,935 with the Escrow Agent during fiscal year 2008 to cover its debt service
requirements on the Special Obligation Bonds and Loans. The City has agreed to deposit revenues each
month in amounts specified in the underlying agreement.
Long -Term Debt Authorized But Not Issued
On November 13, 2001, a referendum election was held and the voters approved the issuance of
$255,000,000 of Limited Ad Valorem Tax Bonds. As of September 30, 2008, the City has issued
$203,186,406 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, 2008, the following outstanding bonds are considered defeased:
Defeased Debt:
Balance
$153,186,406 Limited Ad Valorem Tax Bonds, Series 2002:
Homeland Defense/Neighborhood Capital Improvement Projects $102,305,000
Derivative Disclosure — Swaption Agreement
Objective of the Swaption — As a means to lowering its borrowing costs, when compared against fixed-
rate bonds at the time of issuance in December 2006, the City entered into a $30,615,000 swaption with
Morgan Stanley Capital Services Inc. ("Morgan Stanley" or "Counterparty") as a means to refund a
portion of the outstanding Series 1995 Non -Ad Valorem Revenue, Taxable Pension Bonds in order to
reduce interest costs. The Series 1995 Non -Ad Valorem Revenue, Taxable Pension Bonds were
originally issued to provide funds to fund the General Employees and Sanitation Employees (GESE) and
Police and Fire (FIPO) retirement funds.
Terms - On November 27, 2006, the City issued $30,615,000, City of Miami, Florida Non -Ad Valorem
Variable Rate Refunding Revenue Bonds, Taxable Pension Series 2006 Bonds. The Series 2006 Bonds
were issued for the purpose of refunding a portion of the outstanding $72,000,000 City of Miami, Florida
Non -Ad Valorem Revenue Taxable Pension Bonds Series 1995. The reason for the issuance of the bonds
was because the City entered into swaption agreement on November 15, 2004 with Morgan Stanley
55
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
whereby they had the option to refinance the above portion of the Series 1995 bonds with floating rate
debt. The City would then pay a fixed rate and receive a floating rate. On November 27, 2006, Morgan
Stanley exercised the option. The LIBOR rate as of September 30, 2008 is 3.926%.
Fair Value - As of September 30, 2008, the swaption had a negative fair market value of $2,405,788.
The negative balance signifies the amount the City would have to pay to the counterparty (Morgan
Stanley) if the City chose to terminate the swaption at that date. Morgan Stanley exercised their option on
November 27, 2006 and entered into an interest rate swap with the City. The structure of the swaption
was such that the City would pay a specified fixed rate of 6.43% and receive a floating rate based on the
one month LIBOR in exchange for annual option premium payments of $250,000 from December 1,
2006 through December 1, 2025 from Morgan Stanley.
Credit Risk - As of September 30, 2008, the City was not exposed to credit risk because the swaption
had a negative fair value. However, should interest rates change and the value of the swaption become
positive, the City could be exposed to credit risk in the amount of the swaption's fair value. The
provisions of the swaption agreement contain certain counterparty requirements that mitigate the
potential for credit risk to the City. For the swaption, if the Counterparty guarantor's long-term
unsecured unsubordinated debt ratings are suspended by either Moody's or Standard & Poor's or ratings
fall below "Baa3" or "BBB" -by Moody's and Standard & Poor's, respectively, the fair value of the
associated swap will be fully collateralized with cash or securities. Collateral would be posted with an
independent third party custodian. As of September 30, 2008, Morgan Stanley's ratings have not fallen
below these levels; therefore, the counterparty was not required to collateralize the swaption. The City is
not required to collateralize the swaption.
Basis Risk - The execution of the swap on November 27, 2006 by Morgan Stanley exposed the City to
Basis and Termination risk. Basis risk, under the swap agreement is based on payments the City received
(% of the one -month LIBOR) compared to the payments the City pays to the bondholders. If the City
pays out more than it receives in this exercise, the City is then subject to Basis Risk. With Termination
Risk under the swap agreement, the City or the counterparty has the right to optionally terminate the
agreement at any time. The termination amount owed by either the City or the counterparty is determined
by market quotation at the time of termination; if the swap has a negative fair value the City is liable to
the counterparty for a payment equal to the swap's fair value.
Termination Risk - The swaption provides for certain events that could cause the counterparty of the
City to terminate the swap. The swap may be terminated by the counterparty or the City if the other party
fails to perform under the terms of the swap agreement. The City has the right to optionally terminate the
swaption agreement at any time. The termination amount owed by either the City or the counterparty is
determined by market quotation. If at the time of termination, the swap has a negative fair value, the City
would be liable to the counterparty for a payment equal to the swap's fair value.
Swap Payments and Associated Debt - Using rates at September 30, 2008, the Net Debt Service
requirements of the City's taxable variable -rate debt payments are as follows. As rates vary, variable -rate
bond interest payments will vary:
56
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Fiscal Year Fixed Total Interest Net
Ending Rate Principal Rate Debt
September 30, Principal Bonds Interest and Interest Swap, Net Service
2009 $ 1,720,000 6.430% $ 1,804,863 $ 3,524,863 $ 78,503 $ 3,603,366
2010 1,840,000 6.430% 1,695,591 3,535,591 56,354 3,591,945
2011 45,000 6.430% 1,634,988 1,679,988 55,814 1,735,802
2012 50,000 6.430% 1,631,934 1,681,934 55,212 1,737,146
2013 55,000 6.430% 1,637,616 1,692,616 54,549 1,747,165
2014-2018 325,000 6.430% 8,075,893 8,400,893 261,612 8,662,505
2019-2023 9,155,000 6.430% 7,410,136 16,565,136 82,131 16,647,267
2024-2026 15,820,000 6.430% 1,572,754 17,392,754 (304,777) 17,087,977
Total $ 29,010,000 $ 25,463,775 $ 54,473,775 $ 339,398 $ 54,813,173
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.
Discretely Presented Component Units Long -Term Debt
DOSP
The changes in DOSP's long-term debt during 2008 were as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Bonds payable $ 48,985,000 $ 40,950,000 $ 41,425,000 $ 48,510,000 $ 800,000
Deferred amounts 68,000 - 84,000 (16,000)
Compensated absences 650,000 504,000 384,000 770,000 384,380
Loan from
primary government 2,700,000 - 150,000 2,550,000 150,000
$ 52,403,000 $ 41,454,000 $ 42,043,000 $ 51,814,000 $ 1,334,380
The City 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, 2008, DOSP has drawn $3,000,000 of this loan. The balance as of September 30, 2008 is $2,550,000.
The following summarizes the debt service to maturity of outstanding DOSP debt at September 30, 2008:
57
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Year Ending
September 30,
2009
2010
2011
2012
2013
2014-2018
2019-2023
2024-2028
2029-2033
2034-2037
Total
Bonds
Principal
$ 800,000
835,000
875,000
910,000
960,000
5,585,000
7,180,000
9,045,000
11,235,000
11,085,000
$ 48,510,000
Range of Rates
Interest Total Bonds
Total
Loan
Principal
$ 3,759,674 $ 4,559,674 $ 150,000
3,724,104 4,559,104 150,000
3,686,047 4,561,047 150,000
3,643,609 4,553,609 150,000
3,596,859 4,556,859 150,000
17,038,181 22,623,181 1,800,000
14,637,358 21,817,358
11,137,241 20,182,241
6,743,101 17,978,101
1,475,734 12,560,734
$ 69,441,908 $ 117,951,908 $ 2,550,000
2.70%-6.55%
In prior years, the DOSP defeased, in substance, its 1993A Parking Facilities Revenue Bonds and at
September 30, 2008, the outstanding balance of defeased bonds was $1,305,000.
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 SIMFA Municipal
Swap Index as of September 30, 2008 was 3.842%.
Fair Value — As of September 30, 2008, the swap had a value of $3,453,151, which represents if
terminated, an obligation of the Authority 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 rate. 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.
Credit Risk — As of September 30, 2008, the DOSP is exposed to credit risk in the amount of the
derivative's fair value. As of September 30, 2008, the counterparty was rated A by Moody's Investor
Service, A by Standard & Poor's, and A+ by Fitch Ratings. To mitigate the potential for credit risk, if the
counterparty's credit quality falls below BBB- as issued by Fitch or Standard & Poor's or Baa3, it will
collateralize the swap liability to the Authority with securities, consisting of obligations of the United
States government, mortgage participation certificates of the Federal Home Mortgage Corporation, or the
58
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Federal National Mortgage Association, or such other securities as the parties mutually agree to.
Collateral would be deposited with a third -party custodian.
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.
Swap Payments and Associated Debt - Using rates at September 30, 2008, 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
2009 $ $ 2,928,530 $ 223,239 $ 3,151,769
2010 2,928,530 223,239 3,151,769
2011 2,928,530 223,239 3,151,769
2012 - 2,928,530 223,239 3,151,769
2013 - 2,928,530 223,239 3,151,769
2014-2018 570,000 14,575,500 1,114,268 16,259,768
2019-2023 5,135,000 13,495,570 1,073,013 19,703,583
2024-2028 9,045,000 10,300,415 836,826 20,182,241
2029-2033 11,235,000 6,235,865 507,236 17,978,101
2034-2037 11,085,000 1,364,725 111,009 12,560,734
$ 37,070,000 $ 60,614,725 $ 4,758,547 $ 102,443,272
59
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
NOTE 9. — SELF-INSURANCE
A. Risk Management
The City is self insured for its liability program subject to, and in accordance with, the limitations set
forth by Florida Statutes 768.28. The City has in place a commercial property program providing blanket
real estate and personal property coverage on all City -owned properties. There has not been a significant
reduction in insurance coverage from the previous year. Settled claims have not exceeded reserves in the
past three years. The General Fund accounts for all risks of loss to which the City is exposed, including
public liability, workers' compensation, property and casualty, and employee health and accident -related
losses. Certain employees and retirees of the City contribute, through payroll deductions or deductions
from pension payments, to the cost of group 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 based on 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.
At September 30, 2008, the total estimated liability of $142,592,170 is discounted at an interest rate of
5% and recorded in the government -wide financial statements. Changes in the claims liability amount in
2007 and 2008 were as follows:
Fiscal Year
Ended
September 30,
Beginning of
Fiscal Year
Liability
2007 $ 122,676,113
2008 141,603,838
NOTE 10. — PENSIONS
Current Year
Claims and Changes
in estimates
Claims
Payments
$ 48,177,991 $ 29,250,266
36,182,885 35,194,553
Balance at
Fiscal Year End
$ 141,603,838
142,592,170
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).
60
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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.
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 1,634 as of that date.
Separate audited financial statements are provided for FIPO and can be obtained from the pension board
at: FIPO, 1895 SW 3th 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.
61
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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 other than
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.
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.
62
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The DROP of the FIPO Trust also consists of a Benefit Actuarially Calculated DROP (BACDROP). A
member may elect to BACDROP to a date no further than the date of their retirement eligibility date. The
BACDROP period must be in 12 months increments, beginning at the start of a pay period, not to exceed
48 full months for firefighters (36 months prior to October 1, 2001) and for police officers who elected
DROP on October 1, 2003 (36 months prior to October 1, 2003). Participation in the BACDROP does
not preclude participation in the forward DROP.
Contributions and Funding Policies
Members of FIPO are required to contribute 7% 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, 2008 was approximately
$133.2 million; the City's total payroll was approximately $319.7 Million.
Annual Pension Cost
The City's current year contribution was determined through an actuarial valuation performed as of
October 1, 2007. Significant actuarial assumptions used to compute the annual contribution requirement
are as follows:
Valuation date: October 1, 2007
Actuarial cost method: Aggregate Cost Method
Amortization method: Not Applicable
Remaining amortization period: Not Applicable
Asset valuation method: 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).
Actuarial assumptions
Investment rate of return: 7.75%
Projected salary increases due to inflation: 4.00%
Seniority/merit 5.00% to 0% reducing by attained age
Promotion/other 1.00%
Mortality table: Ga94 - Mortality table
Mortality, disability, retirement and turnover: 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.
63
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Year Ended
September 30
2006
2007
2008
GESE
Three Year Trend Information
Annual Pension
Cost (APC)
$ 50,635,213
40,542,078
36,040,251
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.
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.
64
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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 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 they receive 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.
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, 2008 was
approximately $90.5 million; the City's total payroll was approximately $319.7 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:
65
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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
3-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
2006
2007
2008
Three Year Trend Information
Annual Pension
Cost (APC)
$ 22,018,443
24,229,028
22,762,902
Percentage of Net Pension
APC Contributed Obligation
100%
100%
100%
City of Miami General Employees and Sanitation Employees 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 40 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.
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CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The payroll for employees covered by the Excess Benefit Plan for the year ended September 30, 2008
was approximately $90.5 million; the City's total payroll was approximately $319.7 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, 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 adjustment
October 1, 2008
Modified entry age normal
Level dollar amount, closed
22 years
Not Applicable
8.10%
5.25%
3.50%
None
GESE Excess Plan contributions are determined using the entry age normal cost method with frozen
actuarial accrued liability.
Year Ended
September 30
2006
2007
2008
Three Year Trend Information
Annual Required
Contribution (ARC)
$ 824,766
823,371
898,149
Percentage of
ARC Contributed
56%
58%
50%
Net Pension
Obligation
$ 3,583,015
3,877,208
4,265,603
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
Increase in net pension obligation
Net pension obligation, beginning of year
Net pension obligation, end of year
$ 898,149
314,054
(376,892)
835,311
(446,916)
388,395
3,877,208
$ 4,265,603
67
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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, 2008, 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 12 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
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, 2008 was
approximately $632,000; the City's total payroll was approximately $319.7 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 contribution requirements are as
follows:
Valuation date: October 1, 2008
Actuarial cost method: Modified entry age normal
Amortization method: Level dollar amount, closed
Remaining amortization period: 8 - 22 years
Asset valuation method: 3-year smoothed market
Actuarial assumptions
Investment rate of return: 8.10%
Projected salary increases: 6.00%
Includes inflation at: 3.50%
Cost of living adjustments: 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.
68
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Year Ended
September 30
2008
2007
2006
Three Year Trend Information
Annual Pension
Cost (APC)
$ 109,163
57,995
72,380
Elected Officers Retirement Trust (EORT)
Percentage of
APC Contributed
100%
100%
100%
Net Pension
Obligation
$
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. The Plan EORT Fiduciary administers the
excess benefit plan.
At December 31, 2007, 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
nonactive 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, 2008 was approximately
$718,000; the City's total payroll was approximately $319.7 Million.
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CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Annual Pension Cost
The City's current year contribution was determined through an actuarial valuation determined as of
December 31, 2007. Significant actuarial assumptions used to compute the annual contribution
requirement are as follows:
Valuation date: December 31, 2007
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: 6.00%
Projected salary increases:
Inflation: N/A
Merit, longevity, etc: N/A
Mortality table: 1983 male group annuity 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
each year. As such, the three year trend information is combined with the seven year required
supplementary information as follows:
Annual Pension Cost
Year Ended (APC) and Annual Percentage Net Pension
September 30 Required Contribution Contributed Obligation
2008 $ 711,209 100%
2007 285,408 100% $
2006 1,043,209 100%
2005 300,000 100%
2004 300,000 100%
2003 265,287 100%
2002 220,837 100%
The EORT does not issue separate stand-alone financial statements, and therefore, included below is the
Statement of Fiduciary Net Assets and the Statement of Changes in Fiduciary Net Assets for the year
ended September 30, 2008:
70
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Statement of Fiduciary Net Assets
Assets
Cash and Short -Term Investments $
Investments, at fair value
U.S. Government Obligations
U.S. Agency Obligations
Money Market Funds
Total Investments
Total Assets
Net Assets
Held in Trust for Pension Benefits
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
552,321
2,985,990
148,229
3,686,540
3,686,540
$ 3,686,540
$ 711,209
106,771
817,980
683,101
683,101
134,879
3,551,661
$ 3,686,540
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
10/1/2007 $
10/1/2007
10/1/2007
10/1/2007
(1)
Actuarial
Value of
Assets
664,145,175
1,138,655
1,268,900,000
(2)
Actuarial Unfunded
Accrued (Overfunded) Funded (3)
Liability AAL Ratio Covered
(AAL) (2) - (1) (1)/(2) Payroll
$ 770,218,984 $ 106,073,809 86.23% $ 82,052,702
1,622,719 484,064 70.17% 734,116
8,600,801 8,600,801 0.00% 82,052,702
1,318,400,000 49,500,000 0.00% 103,600,000
Unfunded
(Overfunded)
as a Percentage
of Covered Payroll
((2) - (1))/(3)
129.28%
65.94%
10.48%
47.78%
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, and City
Attorney's offices, Department Directors, Assistant Directors, and other executives. To participate in the
71
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
plan a written trust agreement must be executed, which requires the City to contribute 8% of the
individual's earnable compensation, and the employee to contribute 10% of their salary. Participants may
withdraw funds at retirement or upon separation based on a variety of payout options.
The following information relates to the City participation in this plan:
Total current year's payroll for all employees
Current year's payroll for participating employees
Current year employer contributions
$ 319,684,592
7,105,918
694,308
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
relating to the plans and is currently under no obligation to make further contributions to the plans. The
total of such excise taxes received from the State of Florida and remitted to the plans was $11,588,823
for the year ended September 30, 2008. 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.
Based on GASB approval of Statements 43 and 45 which set forth the guidelines and a future
implementation timetable for reporting and disclosure of Other Post -Employment Benefits ("OPEB"), the
City had an actuary calculate future funding requirements during fiscal year 2008. The valuation was
performed as of October 1, 2006 and covers the subsidies for medical and life insurance benefits. 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. The OPEB liability was calculated using the Entry Age Normal
Cost Method.
72
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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 1,816 of the 5,047 covered participants
are retirees).
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. The City contributed $4,031,723 in
the current year under the terms of the agreement.
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 $4,542,598 for the year ended September 30, 2008.
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.
73
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Significant Actuarial Assumptions and methods used to estimate the OPEB liability are as follows:
Valuation date October 1, 2006
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level Percent of Payroll
Amortization Period 30 years
Actuarial assumptions:
Assumed rate of return on investments 4.25%
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%
The following table is the Other Post Employment Benefits schedule of Funding Progress:
Non -Police
Police
Total
Actuarial
Valuation Date
Actuarial
Value of
Assets*
(a)
Actuarial Accrued
Liability (AAL) -
Entry Age
(b)
10/1/2006 $ - $ 146,802,156
10/1/2006 - 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) ([b - a] / c)
$ 146,802,156 0.00% $ 129,892,623 113.02%
333,517,656 0.00% 57,596,525 579.06%
$ 480319812 0.00% $ 187,489,148 256.19%
* Amounts based on actuarial valuation. No assets existed in the plan at September 30, 2008
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
74
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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 $26,578,385 for Police retirees
and $10,786,386 for the Non -Police retirees. The City's annual OPEB cost and the net OPEB obligation
for the fiscal year ended September 30, 2008 for both Non -Police and Police retirees are as follows:
Non -Police Police
Retirees Retirees
Total
Annual required contribution (ARC) $ 10,786,386 $ 26,578,385 $ 37,364,771
Interest on net OPEB obligation - -
Adjustment to annual required contribution - - -
Annual OPEB cost (expense) 10,786,386 26,578,385 37,364,771
Contributions made (5,261,988) (4,910,046) (10,172,034)
Increase in net OPEB obligation 5,524,398 21,668,339 27,192,737
Net OPEB obligation - beginning of year - - -
Net OPEB obligation - end of year $ 5,524,398 $ 21,668,339 $ 27,192,737
The City's percentage of annual OPEB cost contributed to the plans, and the net OPEB obligations for
the fiscal year ended September 30, 2008 are as follows:
Percentage of
Fiscal Annual of Annual
Year OPEB Amount OPEB Cost Net OPEB
Ending Cost Contributed Contributed Obligation
Police 9/30/2008 $ 26,578,385 $ 4,910,046 18.47% $ 21,668,339
Non -Police 9/30/2008 10,786,386 5,261,988 48.78% 5,524,398
Total $ 37,364,771 $ 10,172,034 27.22% $ 27,192,737
The 2008 contribution for the Police retirees plan represented 18.47% of the annual required
contribution, and 48.78% of the annual contribution for the Non -Police retirees plan. The actuarial
valuation for the plans was done as of October 1, 2006. Thereafter, valuations will be done bi-annually.
NOTE 12. — SUMMARY DISCLOSURE OF SIGNIFICANT CONTINGENCIES
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.
Subsequent to September 30, 2008 there have been 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 SEOPW 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.
75
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
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 finance 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.
Miami Marlins Baseball Stadium Agreement: On March 19, 2009, the City Commission passed a
resolution authorizing the City Manager to execute agreements related to the development, construction,
and operation of a baseball stadium. The agreement requires the City to make the following
contributions: (1) donate the Orange Bowl site to the County, (2) fund infrastructure improvements at the
site which is expected to approximate $12.5 million, (3) contribute $13 million towards the construction
of the baseball stadium, and (4) construct a parking facility which is expected to approximate $94
million. The City's contributions will be funded by proceeds provided by Miami Sports & Exhibition
Authority (a discreetly presented component unit of the City), Sanitary Sewer Bond funds, Street
Improvement Bond funds, and Convention Development Tax revenues.
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
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 Inter -local 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 deposited $23,510,000 and the School Board deposited
$11,890,000 into the construction escrow sub -accounts for the construction costs of the College of
Policing and Forensic High School. The City's contributions were funded with Homeland Defense
General Obligation Refunding Bonds Series 2007B (Limited). The construction of the College of
Policing and Forensic High School is ongoing; opening of the facility is anticipated for fiscal year 2010.
The facility will be wholly owned by the City upon completion.
Port of Miami Tunnel and Access Improvement Project/Wachovia Bank, National Association
$50,000,000 Letter of Credit: By Resolution 07-0697, adopted by the City Commission on December
13, 2007, the City of Miami executed a Master Agreement ("Master Agreement") for the construction of
76
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
the Port of Miami Tunnel and Access Improvement Project ("Project") with the Florida Department of
Transportation ("FDOT") and Miami -Dade County, which provided 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 obtained an irrevocable standby letter of credit in the face amount of $50,000,000 (the "Letter
of Credit") from Wachovia Bank, National Association ("Wachovia") to satisfy this 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.
Wagner Square Agreement: On September 19, 2008, the City obtained a $3,999,000 loan under the
Depaitinent of Housing and Urban Development (HUD) Section 108 Loan Program. The loan, the
$3,999,000 was received by the City and was deposited in an escrow account on September 19, 2008.
The loan proceeds will be used to fund the Wagner Square Project. The Wagner Square Project is an
arrangement between the City of Miami, (the "City"), and Wagner Square LLC ("developer"), to build a
mixed -use development. Proceeds will be provided to the developer as construction on the Wagner
Square Project progresses. The City is responsible for making principal and interest payments directly to
HUD starting in January 2009. The City entered into a loan agreement with the developer whereby the
developer will repay the City principal and interest amounts as the payments are due. This loan has a
final maturity of August 1, 2024, and bears an interest rate which is based on the one month LIBOR +
.20% (20 basis points).
Litigation
The City has been notified that it, along with several other municipalities and several other parties, has
been named as a Potential Responsible Party by the Environmental Protection Agency (EPA). Such
notification states that the City may be jointly and severally liable for certain environmental cleanup
costs, to date of approximately $51.5 million, related to underground water and soil contamination in
Broward County, Florida. As of the date of these financial statements, the City has not completed an
assessment of its exposure to loss as a result of this action. However; should the EPA prevail in this
matter and the other potentially responsible parties are unable to bear their proportionate cost of cleanup,
management believes such action could have a material adverse effect on the City's financial statements.
The City is also involved in other 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 affect on the financial position of the City.
NOTE 13. — SUBSEQUENT EVENTS
$20,000,000 Sunshine State Governmental Financing Commission Loan — The City was approved for
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. On March 25, 2009, the City closed
this loan. This is a variable rate loan maturing in 2016. The Sunshine State Governmental Financing
77
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Commission is a legal entity through inter -local agreements among the State of Florida, counties, and
local municipalities. The City has covenanted to budget and appropriate in its annual budget non -ad
valorem revenues sufficient to satisfy the required annual debt service payments.
NOTE 14. — PRONOUNCEMENTS ISSUED, BUT NOT YET ADOPTED
GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations
issued November 2006, is effective for the City beginning with its fiscal year ending September 30,
2009. This Statement addresses accounting and financial reporting standards for pollution (including
contamination) remediation obligations, which are obligations to address the current or potential
detrimental effects of existing pollution by participating in pollution remediation activities such as site
assessments and clean-ups.
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
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 definitions. 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
The City's management has not yet determined the effect these Statements will have on the City's
financial statements.
78
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - General Fund
For The Year Ended September 30, 2008
Budgeted Amounts
Original Final
Actual Amounts
Variance with
Final Budget
Positive (Negative)
Revenues:
Property Taxes $ 261,026,148 $ 258,294,391 $ 258,294,391 $
Franchise and Other Taxes 37,005,000 35,414,428 35,319,051 (95,377)
Licenses and Permits 29,658,555 29,558,555 29,788,818 230,263
Fines and Forfeitures 5,208,555 5,208,555 6,031,799 823,244
Intergovernmental Revenues 41,151,996 51,245,788 51,320,942 75,154
Charges for Services 82,850,712 74,826,773 74,998,172 171,399
Interest 8,115,000 9,691,044 10,086,415 395,371
Other 19,205,100 14,841,421 6,594,312 (8,247,109)
Total Revenues 484,221,066 479,080,955 472,433,900 (6,647,055)
Expenditures:
General Government
Mayor 891,232 838,278 838,278
Board of Commissioners 2,000,000 1,829,564 1,829,564
Office of City Manager 2,599,315 3,611,620 3,611,620
Office of City Clerk 2,530,585 1,867,540 1,867,540
Office of Civil Service 318,405 336,915 336,915
Office of Auditor General 914,842 829,318 829,318
Office of Communications 1,381,366 1,201,678 1,201,678
Employee Relations 5,454,914 5,013,806 5,013,806
Information Technology 13,071,500 12,930,235 12,930,235
Office of the City Attorney 6,650,725 6,070,137 6,070,137
Office of Strategic Planning & Budgeting 1,578,379 1,433,690 1,433,690
Purchasing 1,486,020 1,417,151 1,417,151
Office of Hearing Boards 1,014,601 964,875 964,875
Finance 5,678,592 5,724,175 5,724,175
Capital Improvement Administration 3,294,574 3,700,758 3,700,758
Non -Departmental 19,502,355 9,755,731 9,755,731
Total General Government 68,367,405 57,525,471 57,525,471
Planning and Development
Building 7,774,638 7,389,609 7,389,608
Department of Planning 2,782,950 2,560,700 2,560,700
Office of Zoning 1,214,283 837,916 837,916
Total Planning and Development 11,771,871 10,788,225 10,788,224
Public Works
Solid Waste 21,695,336
General Service Administration 17,985,430
Public Works 16,399,722
Total Public Works 56,080,488
20,500,638
19,527,937
14, 830,194
20,500,638
19,527,937
14, 830,194
54,858,769 54,858,769
Public Safety
Fire- Rescue 80,087,399 99,597,506 99,597,506
Police 135,605,175 150,283,974 150,283,974
Total Public Safety 215,692,574 249,881,480 249,881,480
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)
28,809,917 28,393,690 28,393,690
36,445,993 36,040,261 36,040,261
689,122 682,526 682,526
65,945,032 65,116,477 65,116,477
7,478,665 6,248,557 6,248,557
21,732,908 24,276,993 24,276,993
26,528,527 28,796,859 28,796,859
25,892,082 27,751,691 27,751,691
499,489,552 525,244,522 525,244,521
(115 268,486) (46,16 567) (52,810,621)
1
1
1
(6,647,056)
39,492,737 77,043,493 76,817,851 225,642
(24,224,251) (30,879,926) (30,879,926) -
15,268,486 46,163,567 45,937,925 225,642
Net Change in Fund Balance - - (6,872,696) (6,421,414)
Fund Balance - Beginning of Year - - 100,450,144 100,450,144
Fund Balance - End of Year $ - $ - $ 93,577,448 $ 94,028,730
The accompanying notes are an integral part of the required supplementary information.
79
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, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Intergovernmental Revenues $ 7,585,387 $ 13,438,289 $ 6,806,528 (6,631,761)
Charges for Services - 39,366 39,366
Interest - 7,425 7,425
Other 407,240 102,564 102,564
Total Revenues 7,992,627 13,438,289 6,955,883 (6,482,406)
Expenditures:
Current Operating:
Public Safety
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
3,818,549 10,252,298
4,174,078
10,208,998 43,300
3,185,991 3,185,991
7,992,627 13,438,289
13,394,989 43,300
(6,439,106) (6,439,106)
16,901,691
(43,300)
16,901,691
43,300
16,858,391 16,944,991
Net Change in Fund Balance 10,419,285 10,505,885
Fund Balance - Beginning of Year (17,545,192) (17,545,192)
Fund Balance - End of Year $ $ $ (7,125,907) $ (7,039,307)
The accompanying notes are an integral part of the required supplementary information.
80
City of Miami, Florida
Schedule of Revenues, Expenditures, and Changes In Fund Balance
Budget and Actual - Emergency Services
For The Year Ended September 30, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Intergovernmental Revenues 3,710,887 $ 2,484,442 (1,226,445)
Other - - -
Total Revenues 3,710,887 2,484,442 (1,226,445)
Expenditures:
Current Operating:
Public Safety
Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Other Financing Sources (Uses):
Transfers Out
Total Other Financing Sources (Uses)
3,662,491
923,299 2,739,192
48,396 6,058 42,338
3,710,887
929,357 2,781,530
1,555,085 1,555,085
(16,561,808) (16,561,808)
(16,561,808) (16,561,808)
Net Change in Fund Balance (15,006,723) (15,006,723)
Fund Balance - Beginning of Year - -
Fund Balance - End of Year $ $ $ (15,006,723) $ (15,006,723)
The accompanying notes are an integral part of the required supplementary
nformat
on.
81
CITY OF MIAMI, FLORIDA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2008
(UNAUDITED)
NOTE 1. - BUDGETARY POLICY
A. BUDGET POLICY
The City Commission annually adopts an operating budget or dinance for all governmental funds of the City,
except for the Capital Projects Funds. The Capital Pr ojects Funds are budgeted on a total project basis for
which annual budgets are not available. For governm ental 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 th e budgetary data reflected in the accom panying financial
statements:
- Prior to August 31 st, the City Manager subm its to the C ity Commission a proposed operating budget by
fund, except for the General Fund, which is at the departmental level, for the fiscal year com mencing the
upcoming October 1 st. The operating budget includes proposed expenditures and the m eans of financing
them.
- The Mayor prepares and delivers a budgetary address a nnually to the people of the City between July 1 st
and September 30tn
- 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
budget report.
and adoption of the
- Management may not make changes to the adopted budget without the approval of a m ajority vote of the
Commission.
- The Com mission m ay transfer am ong departm ents any part of an unencum bered balance of an
appropriation to a purpose for which an appropriation fo r the current year has proved insufficient. At the
close of each fiscal year, the unencum bered balance of each appropriation reverts to the fund from which
it was appropriated and is subject to future appropriations.
- Budgets are m onitored at varying levels of classi fication 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 2008, supplemental appropriations
totaling $32,410,645 in the General Fund, $5,445,662 in the Fire Rescue Services Fund, $3,710,887 in the
Emergency Services (Disaster Recovery), and $70,268,545 in Other Non -Major Funds was required to fund
expenditures for unanticipated program requirements.
82
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 (3)
Ratio Covered
(1)/(2) Payroll
Unfunded
(Overfunded)
as a Percentage
of Covered
Payroll
((2) - (1))/(3)
GESE Retirement Trust (b)
10/1/2007 $ 664,145,175 $ 770,218,984
10/1/2006 618,482,563 732,016,189
10/1/2005 588,495,706 746,324,834
10/1/2004 564,591,815 709,944,085
10/1/2003 555,480,276 682,360,385
10/1/2002 561,270,090 617,806,665
10/1/2001 597,112,330 579,385,162
GESE Staff Plan (b)
10/1/2007
10/1/2006
10/1/2005
10/1/2004
10/1/2003
10/1/2002
10/1/2001
$ 1,138,655 $
939,698
768,336
615,132
446,666
303,728
206,578
GESE Excess Plan (b)
10/1/2007 $
10/1/2006
10/1/2005
10/1/2004
10/1/2003
10/1/2002
10/1/2001
FIPO (c)
10/1/2007
10/1/2006
10/1/2005
10/1/2004
10/1/2003
10/1/2002
$ 106,073,809 86.23% $ 82,052,702 129.28%
113,533,626 84.49% 75,609,062 150.16%
157,829,128 78.85% 71,485,284 220.79%
145,352,270 79.53% 72,521,132 200.43%
126,880,109 81.41% 70,717,807 179.42%
56,536,575 90.85% 70,393,730 80.31%
(17,727,168) 103.06% 66,650,450 -26.60%
1,622,719 $ 484,064 70.17% $ 734,116 65.94%
1,129,276 189,578 83.21% 643,770 29.45%
1,084,275 315,939 70.86% 455,220 69.40%
1,005,846 390,714 61.16% 487,639 80.12%
1,057,295 610,629 42.25% 448,457 136.16%
900,721 596,993 33.72% 411,278 145.16%
714,036 507,458 28.93% 363,176 139.73%
- $ 8,600,801 $ 8,600,801 0.00% $ 82,052,702 10.48%
- 7,999,872 7,999,872 0.00% 75,609,062 10.58%
- 8,402,351 8,402,351 0.00% 71,485,284 11.75%
- 8,434,597 8,434,597 0.00% 72,521,132 11.63%
- 9,926,810 9,926,810 0.00% 70,717,807 14.04%
- 8,642,414 8,642,414 0.00% 70,393,730 12.28%
- 9,281,796 9,281,796 0.00% 66,650,450 13.93%
$ 1,268,900,000
1,147,900,000
1,091,900,000
957,900,000
844,900,000
753,200,000
$ 1,318,400,000
1,260,500,000
1,221,600,000
1,152,800,000
1,067,900,000
999,800,000
$ 49,500,000 96.25% $ 103,600,000 47.78%
112,600,000 91.07% 90,400,000 124.56%
129,700,000 89.38% 91,500,000 141.75%
194,900,000 83.09% 89,200,000 218.50%
223,000,000 79.12% 98,900,000 225.48%
246,600,000 75.34% 96,900,000 254.49%
City of Miami Other Post Employment Benefits (d)
10/1/2006 $ - $ 480,319,812 $ 480,319,812
0.00% $ 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, 2008
e. EORT is not reflected on this schedule since it uses the aggregate method which does not separately
identify an actuarial accrued liability.
83
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* MIS! IIATEr
rrr
C0g�
84
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. Depaitiiient 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.
85
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.
86
Non -major Governmental Funds
SPECIAL REVENUE FUNDS
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.
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.
87
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.
88
•
Non -major Governmental Funds
CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the acquisition and construction
of major capital facilities.
General Government — To account for expenditures for capital expenditures
made for general government operations.
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.
89
Assets
Cash, Cash Equivalents and Investments
Restricted Cash and Investments
Receivables
(Net of Allowances for Uncollectibles):
Accounts
Taxes
Due from Other Governments
Accrued Interest
Prepaids
Total Assets
City of Miami, Florida
Combining Balance Sheet
Non -major Governmental Funds
September 30, 2008
Special Revenue Funds
Community
Omni CRA Midtown CRA SEOPW CRA Homeless Development
$ 26,149,946 $ 1,114,409 $ 14,725,226 $ - $ 8,059,441
3,999,860
87,220
221,684
48,471
140,457 844,315
44,546 6,160,807
5,320
$ 26,237,166 $ 1,114,409 $ 14,995,381 $ 185,003 $ 19,069,743
Liabilities and Fund Balances
Liabilities:
Accounts Payable and Accrued Liabilities $ 10,017 $ 1,114,409 $ 1,980,740 $ 86,122 $ 5,455,251
Due to Other Funds - 347,104 -
Due to Other Governments 446,331 215,813 - 123,369
Deferred Revenue or Unearned Revenue - 41,747 1,036,458
Deposits - 205,782
Total Liabilities 456,348 1,114,409 2,196,553 474,973 6,820,860
Fund Balances (Deficits):
Reserved for:
Encumbrances
Debt Service
Prepaid Items
Future Settlements -
Unreserved, Undesignated 25,780,818 12,798,828 (289,970) 12,248,883
Total Fund Balances 25,780,818 12,798,828 (289,970) 12,248,883
Total Liabilities and Fund Balances $ 26,237,166 $ 1,114,409 $ 14,995,381 $ 185,003 $ 19,069,743
90
Special Revenue Funds
Choice
Housing
Vouchers
SHIP
Economic
Development Parks & Law
Convention & Planning Net Recreation Police Enforcement
Center Services Offices Services Services Trust
$ 1,964,283 $ 4,518,668 $ 172,024 $ 5,571,590 $ 1,502,237 $ 2,125,350 $ 6,318,971 $ 4,123,216
- - 176,805 - -
212,021 21,087 814,493
- 18,993 637 653,314 610,377
5,000 14,826 3,125 - 306 19,633
13,770
$ 1,969,283 $ 4,533,494 $ 560,850 $ 5,593,708 $ 1,523,961 $ 2,778,970 $ 7,763,474 $ 4,136,986
$ 273,289 $ 64,442 $ 104,526 $ 156,087 $ 573,597 $ 845,264 $ 458,339 $ 39,315
1,497,027 4,469,052 - 17,579 20,637 277,377 950,274 21,155
- - 6,250 - 6,415 - - 112,413
1,770,316 4,533,494 110,776 173,666 600,649 1,122,641 1,408,613 172,883
198,967 450,074 5,420,042 923,312 1,656,329 6,354,861 3,964,103
198,967 450,074 5,420,042 923,312 1,656,329 6,354,861 3,964,103
$ 1,969,283 $ 4,533,494 $ 560,850 $ 5,593,708 $ 1,523,961 $ 2,778,970 $ 7,763,474 $ 4,136,986
City of Miami, Florida
Combining Balance Sheet
Non -major Governmental Funds
September 30, 2008
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 $ 3,380,465 $ 400,058 $ - $ 163,280 $ 4,992,163 $ 3,092,480
Restricted Cash and Investments - - -
Receivables
(Net of Allowances for Uncollectibles):
Accounts 600 1,239 98,842 249,495
Taxes - - -
Due from Other Governments 618,496 87,232
Accrued Interest 4,049 -
Prepaids Total Assets $ 3,384,514 $ 400,658 $ 619,735 $ 262,122 $ 4,992,163 $ 3,429,207
Liabilities and Fund Balances
Liabilities:
Accounts Payable and Accrued Liabilities $ 60,869 $ 9,356 $ - $ $ $ 536,962
Due to Other Funds - 619,735
Due to Other Govemments -
Deferred Revenue or Unearned Revenue 538,047
Deposits -
Total Liabilities 60,869 9,356 619,735 1,075,009
Fund Balances (Deficits):
Reserved for:
Encumbrances
Debt Service
Prepaid Items
Future Settlements
Unreserved, Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
3,323,645 391,302
262,122 4,992,163 2,354,198
3,323,645 391,302 262,122 4,992,163 2,354,198
$ 3,384,514 $ 400,658 $ 619,735 $ 262,122 $ 4,992,163 $ 3,429,207
(continued)
92
Special Revenue Funds Debt Service Funds
Public Gusman Total General Other Special
Transportation Services Liberty Virginia Key and Special Obligation Obligation
& Transit Tax City Beach Trust Olympia Revenue Bonds Bonds
$ $ $ 932,412 $ 655,852 $ 1,935,078 $ 91,897,149 $ 1,281,452 $
- 98,978 - 4,275,643 303,481 15,974,590
2,554,766 1,298 442,024 5,602,321
- - - 1,368,967
2,816,935 6,162,219 4,869 17,178,425 37,654
- - 1,606 203,326 94,187
11,842 11,842 -
$ 2,816,935 $ 8,716,985 $ 938,579 $ 756,436 $ 2,388,944 $ 119,168,706 $ 2,991,554 $ 16,068,777
$ 37,362 $ - $ 83,292 $ 63,197 $ 40,672 $ 11,993,108 $ 5,184 $
1,779,573 4,601,999 - - 7,348,411 9,299,617
676,899 1,462,412
1,000,000 1,519,707 11,389,060 847,858
3,500 26,498 360,858 -
2,816,935 4,601,999 83,292 66,697 2,263,776 32,553,849 853,042 9,299,617
2,138,512 4,907,886
11,842 11,842
4,027,253 - - 4,027,253
87,733 855,287 689,739 113,326 82,575,762 1,861,274
4,114,986 855,287 689,739 125,168 86,614,857 2,138,512 6,769,160
$ 2,816,935 $ 8,716,985 $ 938,579 $ 756,436 $ 2,388,944 $ 119,168,706 $ 2,991,554 $ 16,068,777
(continued)
93
City of Miami, Florida
Combining Balance Sheet
Non -major Governmental Funds
September 30, 2008
Debt Service Funds Capital Projects Funds
SEOPW
SEOPW CRA Total Community
Other Special Debt General Redevelopment Sanitary
Obligation Service Government Agency Public Safety Sewers
Assets
Cash, Cash Equivalents and Investments $ 1,551,306 $ 2,832,758 $ 44,866,617 $ 3,087,663 $ 12,898,612 $ 27,105,547
Restricted Cash and Investments 630,469 16,908,540 - 19,775,914
Receivables
(Net of Allowances for Uncollectibles):
Accounts -
Taxes 1,368,967
Due From Other Governments 37,654 -
Accrued Interest 94,187 44,458 10,262 81,558
Prepaids - - Total Assets $ 2,181,775 $ 21,242,106 $ 44,911,075 $ 3,097,925 $ 32,674,526 $ 27,187,105
Liabilities and Fund Balances
Liabilities:
Accounts Payable and Accrued Liabilities $ $ 5,184 $ 2,461,541 $ $ 255,641 $
Due to Other Funds 9,299,617
Due to Other Governments
Deferred Revenue or Unearned Revenue 847,858 10,908 1,888,485
Deposits -
Total Liabilities 10,152,659 2,472,449 2,144,126
Fund Balances (Deficits):
Reserved for:
Encumbrances - - 584,406 926,757
Debt Service 2,181,775 9,228,173
Prepaid Items - -
Future Settlements - -
Unreserved, Undesignated 1,861,274 41,854,220 3,097,925 29,603,643 27,187,105
Total Fund Balances 2,181,775 11,089,447 42,438,626 3,097,925 30,530,400 27,187,105
Total Liabilities and Fund Balances $ 2,181,775 $ 21,242,106 $ 44,911,075 $ 3,097,925 $ 32,674,526 $ 27,187,105
94
Capital Projects Funds
Total
Total Non -major
Storm Solid Public Parks & Disaster Mass Capital Governmental
Sewers Waste Facilities Recreation Recovery Transit Projects Funds
$ 14,290,277 $ 613,894 $ 16,932,024 $ 35,252,679 $ 217,491 $ 3,383,794 $ 158,648,598 $ 253,378,505
19,775,914 40,960,097
34,358 1,867 117,597 172,291 326,113 5,928,434
- - - 1,368,967
3,684,991 210,620 3,784,912 30,877 1,293,135 9,004,535 26,220,614
- 10,521 - 146,799 444,312
- - 11,842
$ 18,009,626 $ 615,761 $ 17,142,644 $ 39,165,709 $ 248,368 $ 4,849,220 $ 187,901,959 $ 328,312,771
$ 4,348,920 $ 65,793 $ 1,042,483 $ 5,001,223 $ 35,596 $ 845,154 $ 14,056,351 $ 26,054,643
- - - - 16,648,028
- - - - 1,462,412
3,330,610 210,619 3,562,712 30,877 415,471 9,449,682 21,686,600
- - - - - 360,858
7,679,530 65,793 1,253,102 8,563,935 66,473 1,260,625 23,506,033 66,212,541
5,268,879 4,609 3,034,786 12,028,102 70,853 1,499,613 23,418,005 23,418,005
- - - - 9,228,173
11,842
- - 4,027,253
5,061,217 545,359 12,854,756 18,573,672 111,042 2,088,982 140,977,921 225,414,957
10,330,096 549,968 15,889,542 30,601,774 181,895 3,588,595 164,395,926 262,100,230
$ 18,009,626 $ 615,761 $ 17,142,644 $ 39,165,709 $ 248,368 $ 4,849,220 $ 187,901,959 $ 328,312,771
City of Miami, Florida
Combining Statement of Revenues, Expenditures, and Changes In Fund Balances
Non -major Governmental Funds
For The Year Ended September 30, 2008
Special Revenue Funds
Choice
Community Housing
Omni CRA Midtown CRA SEOPW CRA Homeless Development Vouchers
Revenues
Property Taxes $ 7,444,383 $ 478,364 $ 3,568,308 $ - $ $
Franchise Fees and Other Taxes
Licenses and Permits
Fines and Forfeitures -
Intergovernmental Revenues 5,098,682 300,103 2,228,137 511,757 35,731,853 1,705,879
Charges for Services - 221,684 - - -
Interest 831,309 528,989 27,426 47,344
Impact Fees - - -
Other 919,238 688,315 11,672
Total Revenues 13,374,374 778,467 7,466,356 511,757 36,447,594 1,764,895
Expenditures
Current Operating:
General Government
Planning and Development - -
Community Development 1,187,738 37,024,389 1,614,321
Community Redevelopment Areas 6,102,800 1,119,084 8,196,799 - -
Public Works
Public Safety
Public Facilities
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges
Capital Outlay 10,871 5,502
Total Expenditures 6,113,671 1,119,084 8,196,799 1,187,738 37,029,891 1,614,321
Excess (Deficiency) of Revenues
Over Expenditures 7,260,703 (340,617) (730,443) (675,981) (582,297) 150,574
Other Financing Sources (Uses)
Transfers In 223,757 854,512 8,097,654
Transfers Out (330,000) (27,354) - (1,113,112)
Proceeds Received From Long -Term Debt 3,998,930
Premium Long -Term Debt -
Total Other Financing Sources (Uses) (330,000) (27,354) 223,757 854,512 10,983,472
Net Changes in Fund Balances 6,930,703 (367,971) (506,686) 178,531 10,401,175 150,574
Fund Balances - Beginning 18,850,115 367,971 13,305,514 (468,501) 1,847,708 48,393
Fund Balances - Ending $ 25,780,818 $ - $ 12,798,828 $ (289,970) $ 12,248,883 $ 198,967
96
Special Revenue Funds
SHIP
Economic
Development Parks & Law
Convention & Planning Net Recreation Police Enforcement
Center Services Offices Services Services Trust
33,198
1,142,746 2,000,000
5,573,739
561
416,940
56,050
281,345
731,621 537,281
33,760 2,540
73,478 3,391
1,294,678
828,762
4,848
1,142,746 8,024,438 1,176,254 543,212 2,128,288
1,210,249
3,556,347
447,912
8,620,987
1,909,736
912,791
3,702,331 -
601,527 -
197,006 133,359
3,074 73,361
4,503,938 1,119,511
2,869,396
604,217
117,388 1,224,644 888,493 25,211
1,210,249 3,556,347 447,912 8,738,375 3,134,380
(67,503) 4,468,091 728,342 (8,195,163) (1,006,092)
1,856,174
(6,622,441)
3,757,889 629,428
746,049 490,083
76,000 7,479,053 25,727 63,987
(4,000,000) (4,968) -
(4,766,267) (3,924,000) 7,479,053 20,759 63,987
(67,503) (298,176) (3,195,658) (716,110) (985,333) 810,036 490,083
67,503 748,250 8,615,700 1,639,422 2,641,662 5,544,825 3,474,020
$ $ 450,074 $ 5,420,042 $ 923,312 $ 1,656,329 $ 6,354,861 $ 3,964,103
(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, 2008
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 6,979,401
Licenses and Permits -
Fines and Forfeitures -
Intergovernmental Revenues 102,304 - - 210,125 1,622,203
Charges for Services 1,561,767 126,024 156,184
Interest 43,630 - -
Impact Fees -
Other 6,360 1,713 30,800
Total Revenues 1,714,061 127,737 6,979,401 156,184 210,125 1,653,003
Expenditures
Current Operating:
General Government 61,567 37,198 4,416,487
Planning and Development -
Community Development
Community Redevelopment Areas -
Public Works 196,378
Public Safety -
Public Facilities
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges
Capital Outlay 1,166,761
Total Expenditures 196,378 61,567 37,198 5,583,248
Excess (Deficiency) of Revenues
Over Expenditures 1,517,683 66,170 6,979,401 156,184 172,927 (3,930,245)
Other Financing Sources (Uses)
Transfers In 33,335 35,000 362,956 7,337,535 883,166
Transfers Out - (340,000) (7,343,596) (2,590,852) (453,304)
Proceeds Received From Long -Term Debt
Premium Long -Term Debt
Total Other Financing Sources (Uses) 33,335 (305,000) (6,980,640) 4,746,683 429,862
Net Changes in Fund Balances 1,551,018 (238,830) (1,239) 156,184 4,919,610 (3,500,383)
Fund Balances - Beginning 1,772,627 630,132 1,239 105,938 72,553 5,854,581
Fund Balances - Ending $ 3,323,645 $ 391,302 $ - $ 262,122 $ 4,992,163 $ 2,354,198
98
Special Revenue Funds Debt Service Funds
Public Gusman Total General Other Special
Transportation Services Liberty Virginia Key and Special Obligation Obligation
& Transit Tax City Beach Trust Olympia Revenue Bonds Bonds
$ $ - $ - $ $ - $ 11,491,055 $ 21,327,853 $
62,257,072 - 69,236,473 -
- 56,050
- 945,989
12,654,850 308,994 21,636 473,484 69,391,107
- 66,375 794,323 11,199,287 -
3,840 23,384 1,877,996 332,991
127,010 881,334 3,236,686
12,654,850 62,257,072 312,834 238,405 2,149,141 167,434,643 21,327,853 332,991
442,367 13,578,606
447,912
41,036,697
528,258 15,946,941
196,378
3,473,613
1,887,739 5,444,086
1,798,687 3,708,423
10, 295,644 10, 877,499
11,197,914 17,540,886
80,126 3,518,996 - -
442,367 528,258 1,878,813 1,887,739 87,351,652 21,493,558 28,418,385
12,212,483 62,257,072 (215,424) (1,640,408) 261,402 80,082,991 (165,705) (28,085,394)
925,363
(13,130,919)
(63,469,633)
550,000 1,316,156
30,120,375
(99,426,179)
3,998,930
30,042,198
24,251
1,344,956
(12,205,556) (63,469,633) 550,000 1,316,156 (65,306,874) 31,411,405
6,927 (1,212,561) 334,576 (324,252) 261,402 14,776,117 (165,705) 3,326,011
(6,927) 5,327,547 520,711 1,013,991 (136,234) 71,838,740 2,304,217 3,443,149
$ $ 4,114,986 $ 855,287 $ 689,739 $ 125,168 $ 86,614,857 $ 2,138,512 $ 6,769,160
(continued)
99
City of Miami, Florida
Combining Statement of Revenues, Expenditures, and Changes In Fund Balances
Non -major Governmental Funds
For The Year Ended September 30, 2008
Debt Service Funds Capital Projects Funds
SEOPW
SEOPW CRA Total Community
Other Special Debt General Redevelopment
Obligation Service Government Agency Public Safety
Revenues
Property Taxes $ - $ 21,327,853 $ $ - $
Franchise Fees and Other Taxes
Licenses and Permits
Fines and Forfeitures - -
Intergovernmental Revenues 300,000 300,000 131,224 710,011
Charges for Services - - - 1,462
Interest 9,590 342,581 1,805,203 108,509 -
Impact Fees 4,674,385
Other 81,933
Total Revenues 309,590 21,970,434 6,692,745 108,509 711,473
Expenditures
Current Operating:
General Government 5,180,755
Planning and Development -
Community Development
Community Redevelopment Areas
Public Works -
Public Safety 1,010,269
Public Facilities -
Parks and Recreation
Debt Service:
Principal 170,000 21,343,143
Interest and Other Charges 181,935 28,920,735 - Capital Outlay - - 10,196,052 11,642,654
Total Expenditures 351,935 50,263,878 15,376,807 12,652,923
Excess (Deficiency) of Revenues
Over Expenditures (42,345) (28,293,444) (8,684,062) 108,509 (11,941,450)
Other Financing Sources (Uses)
Transfers In
Transfers Out
Proceeds Received From Long -Term Debt
Premium Long -Term Debt
Total Other Financing Sources (Uses)
51,935 30,094,133
24,251
1,344,956
51,935 31,463,340
6,521,985
(60,418,917)
750,000
25,954,120
(398,193)
5,829,969
(53,146,932) 31,385,896
Net Changes in Fund Balances 9,590 3,169,896 (61,830,994) 108,509 19,444,446
Fund Balances - Beginning 2,172,185 7,919,551 104,269,620 2,989,416 11,085,954
Fund Balances - Ending $ 2,181,775 $ 11,089,447 $ 42,438,626 $ 3,097,925 $ 30,530,400
100
Capital Projects Funds
Total
Total Non -major
Sanitary Storm Solid Public Parks & Disaster Mass Capital Governmental
Sewers Sewers Waste Facilities Recreation Recovery Transit Projects Funds
$ - $ $ $ $ - $ $ $ $ 32,818,908
69,236,473
56,050
- - - 945,989
4,908,223 253,757 17,806,212 877,664 24,687,091 94,378,198
- 148,434 - - 149,896 11,349,183
885,826 - 174,233 2,973,771 5,194,348
- - 4,674,385 4,674,385
314 87,000 169,247 3,405,933
885,826 4,908,223 314 402,191 18,067,445 877,664 32,654,390 222,059,467
178,820
2,772 5,362,347 18,940,953
447,912
41,036,697
15,946,941
13,232 13,232 209,610
1,010,269 4,483,882
1,327,075 1,327,075 6,771,161
1,070,721 1,070,721 4,779,144
12,611,523 2,006,503 6,404,053 31,162,781 108,720
1,182,366 75,314,652
21,343,143
28,920,735
78, 833,648
12,790,343 2,019,735 7,731,128 32,233,502 108,720 1,185,138 84,098,296 221,713,826
885,826 (7,882,120) (2,019,421) (7,328,937) (14,166,057) (108,720) (307,474) (51,443,906) 345,641
9,990,189 2,054,329 2,562,828 13,868,882 60,952,333 121,166,841
(5,727,664) (32,900) (7,795,025) (1,169,466) (602,190) (76,144,355) (175,570,534)
475,000 8,411,550 33,445,420 48,911,939 52,935,120
- - - - 1,344,956
4,737,525 2,021,429 3,179,353 46,144,836 (602,190) 33,719,917 (123,617)
885,826 (3,144,595) 2,008 (4,149,584) 31,978,779 (108,720) (909,664) (17,723,989) 222,024
26,301,279 13,474,691 547,960 20,039,126 (1,377,005) 290,615 4,498,259 182,119,915 261,878,206
$ 27,187,105 $ 10,330,096 $ 549,968 $ 15,889,542 $ 30,601,774 $ 181,895 $ 3,588,595 $ 164,395,926 $ 262,100,230
101
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - OMNI CRA
For The Year Ended September 30, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Property Taxes $ 11,701,516 $ 12,096,734 $ 12,543,065 $ 446,331
Interest 21,500 21,500 831,309 809,809
Other - -
Total Revenues 11,723,016 12,118,234 13,374,374 1,256,140
Expenditures:
Current Operating:
Community Redevelopment Areas
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Uses:
Transfers Out
Total Other Financing Uses
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
26,293,185 29,838,113
26,293,185 29,838,113
(14,570,169) (17,719,879)
(712,500) (700,000)
(712,500) (700,000)
(15,282,669)
6,113,671 23,724,442
6,113,671 23,724,442
7,260,703 24,980,582
(330,000) 370,000
(330,000) 370,000
(18,419,879) 6,930,703
18,850,115
25,350,582
18,850,115
$ (15,282,669) $ (18,419,879) $ 25,780,818 $ 44,200,697
102
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Midtown CRA
For The Year Ended September 30, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Property Taxes $ 735,406 $ 778,467 $ 778,467 $
Other 20,000 20,000 - (20,000)
Total Revenues 755,406 798,467 778,467 (20,000)
Expenditures:
Current Operating:
Community Redevelopment Areas
Total Expenditures
Excess of Revenues Over Expenditures
Other Financing Uses:
Transfers Out
Total Other Financing Uses
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
7,000 7,000
7,000 7,000
1,119,084 (1,112,084)
1,119,084 (1,112,084)
748,406 791,467 (340,617) (1,132,084)
(27,354) (27,354) (27,354)
(27,354) (27,354) (27,354)
721,052 764,113 (367,971) (1,132,084)
- 367,971 367,971
$ 721,052 $ 764,113 $ - $ (764,113)
103
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - SEOPW CRA
For The Year Ended September 30, 2008
Revenues:
Property Taxes
Intergovernmental Revenues
Charges for Services
Interest
Other
Total Revenues
Expenditures:
Current Operating:
Community Redevelopment Areas
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Budgeted Amounts
Original Final
$ 3,407,794
2,228,086
11,500
10,941,547
16,588,927
Actual Amounts
$ 6,496,444 $ 3,568,308
727,354 2,228,137
221,684
11,500 528,989
511,473 919,238
7,746,771 7,466,356
6,174,365 18,903, 845
10,346,916 -
16, 521,281 18,903, 845
67,646 (11,157,074)
Other Financing Sources (Uses):
Transfers In 1,427,354
Transfers Out (1,495,000) (410,000)
Total Other Financing Sources (Uses) (67,646) (410,000)
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
(11,567,074)
11,567,074
8,196,799
2,432, 802
10,629,601
(3,163,245)
223,757
223,757
(2,939,488)
13,305,514
Variance with
Final Budget
Positive (Negative)
$ (2,928,136)
1,500,783
221,684
517,489
407,765
(280,415)
10,707,046
(2,432, 802)
8,274,244
7,993,829
223,757
410,000
633,757
8,627,586
1,738,440
$ 10,366,026 $ 10,366,026
104
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Homeless Program
For The Year Ended September 30, 2008
Revenues:
Intergovernmental Revenues
Total Revenues
Expenditures:
Current Operating:
Community Development
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources:
Transthrs In
Total Other Financing Sources
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
$ 511,757 $ 511,757 $
511,757 511,757
846,223 1,366,269
15,000
861,223 1,366,269
(861,223) (854,512)
861,223
861,223
1,187,738 178,531
1,187,738 178,531
(675,981) (178,531)
854,512 854,512
854,512 854,512
Net Change in Fund Balance - 178,531 178,531
Fund Balance - Beginning of Year - (468,501) (468,501)
Fund Balance - End of Year $ $ - $ (289,970) $ (289,970)
105
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, 2008
Budgeted Amounts
Original Final
Actual Amounts
Variance with
Final Budget
Positive (Negative)
Revenues:
Intergovernmental Revenues $ 25,253,770 $ 54,579,680 $ 35,731,853 (18,847,827)
Interest 10,000 27,426 17,426
Other 2,000,000 10,704,181 688,315 (10,015,866)
Total Revenues 27,253,770 65,293,861 36,447,594 (28,846,267)
Expenditures:
Current Operating:
Community Development 26,153,770 64,956,630 37,024,389 27,932,241
Capital Outlay - 224,950 5,502 219,448
Total Expenditures 26,153,770 65,181,580 37,029,891 28,151,689
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses):
Transfers In
Transfers Out
Proceeds Received From Long -Term Debt
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
1,100,000 112,281 (582,297) (694,578)
200,000 1,220,412 8,097,654
(1,300,000) (1,332,693) (1,113,112)
3,998,930
(1,100,000) (112,281) 10,983,472
10,401,175
6,877,242
219,581
3,998,930
11,095,753
10,401,175
1,847,708 1,847,708
$ $ 12,248,883 $
12,248,883
106
Revenues:
Intergovernmental Revenues
Interest
Other
Total Revenues
Expenditures:
Current Operating:
Community Development
Total Expenditures
Excess of Revenues Over Expenditures
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
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, 2008
Budgeted Amounts
Original Final
$ 5,356,579 $ 2,461,179
65,000
12,000
5,356,579 2,538,179
5,356,579 2,538,179
5,356,579 2,538,179
$
Actual Amounts
$ 1,705,879
47,344
11,672
1,764,895
1,614,321
1,614,321
150,574
150,574
Variance with
Final Budget
Positive (Negative)
(755,300)
(17,656)
(328)
(773,284)
923,858
923,858
150,574
150,574
48,393 48,393
$ - $
198,967 $ 198,967
107
Revenues:
Intergovernmental Revenues
Total Revenues
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - SHIP
For The Year Ended September 30, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
$ 2,232,704 $ 2,685,282 $ 1,142,746
2,232,704 2,685,282 1,142,746
(1,542,536)
(1,542,536)
Expenditures:
Current Operating:
Community Development 2,232,704 2,685,282 1,210,249 1,475,033
Capital Outlay
Total Expenditures 2,232,704 2,685,282 1,210,249 1,475,033
Excess (Deficiency) of Revenues Over Expenditures - (67,503)
Net Change in Fund Balance - (67,503)
(67,503)
(67, 503)
Fund Balance - Beginning of Year - 67,503 67,503
Fund Balance - End of Year $ $ - $ $
108
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - Convention Center
For The Year Ended September 30, 2008
Revenues:
Fines and Forfeitures
Intergovernmental Revenues
Charges for Services
Interest
Other
Total Revenues
Expenditures:
Current Operating:
Public Facilities
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Budgeted Amounts
Original Final
1,300,000
5,889,780
6,000
3,504,958
10,700,738
Actual Amounts
$ 33,198 $ 33,198
2,000,000 2,000,000
5,573,739 5,573,739
561 561
715,118 416,940
8,322,616 8,024,438
7,086,805 3,556,347
7,086,805 3,556,347
3,613,933 4,766,269
Other Financing Sources (Uses):
Transfers In - 1,856,172
Transfers Out (3,613,933) (6,622,441)
Total Other Financing Sources (Uses) (3,613,933) (4,766,269)
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
3,556,347
3,556,347
4,468,091
1,856,174
(6,622,441)
(4,766,267)
(298,176)
Variance with
Final Budget
Positive (Negative)
(298,178)
(298,178)
(298,178)
2
2
(298,176)
748,250 748,250
$ $ 450,074 $ 450,074
109
Revenues:
Licenses and Permits
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 - Economic Development & Planning Services
For The Year Ended September 30, 2008
Budgeted Amounts
Original Final
$ 165,000
60,000
3,969,666
4,194,666
Actual Amounts
$ 56,050 $ 56,050
281,345 281,345
731,621 731,621
33,760 33,760
3,269,136 73,478
4,371,912 1,176,254
Expenditures:
Current Operating:
Planning and Development 4,268,666 447,912
Total Expenditures 4,268,666 447,912
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
(74,000) 3,924,000
74,000
76,000
(4,000,000)
74,000 (3,924,000)
447,912
447,912
728,342
76,000
(4,000,000)
(3,924,000)
(3,195,658)
8,615,700
$ $ 5,420,042
Variance with
Final Budget
Positive (Negative)
(3,195,658)
(3,195,658)
(3,195,658)
(3,195,658)
8,615,700
$ 5,420,042
110
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, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Intergovernmental Revenues S - $ - -
Charges for Services - 548,723 $ 537,281 (11,442)
Interest - 2,540 2,540
Other 502,348 739,490 3,391 (736,099)
Total Revenues 502,348 1,290,753 543,212 (747,541)
Expenditures:
Current Operating:
General Government
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
7,901,320 8,628,590
59,958 141,216
7,961,278 8,769,806
(7,458,930) (7,479,053)
8,620,987
117,388
8,738,375
7,603
23,828
31,431
(8,195,163) (716,110)
Other Financing Sources:
Transfers In 7,458,930 7,479,053 7,479,053
Total Other Financing Sources 7,458,930 7,479,053 7,479,053
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
(716,110)
1,639,422
(716,110)
1,639,422
$ $ 923,312 $ 923,312
111
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, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenue:
Intergovernmental Revenues S 212,695 $ 1,294,678 $ 1,294,678
Charges for Services - 828,762 828,762
Interest - 4,848 4,848
Other 1,167,469 985,342 - (985,342)
Total Revenues 1,380,164 3,113,630 2,128,288 (985,342)
Expenditures:
Current Operating:
Parks and Recreation
Capital Outlay
Total Expenditures
1,093,553 1,909,745
286,611
1,909,736 9
1,224,644 1,224,644
1,380,164 3,134,389
3,134,380 9
Excess (Deficiency) of Revenues Over Expenditures - (20,759) (1,006,092) (985,333)
Other Financing Sources (Uses):
Transfers In - 25,727 25,727
Transfers Out - (4,968) (4,968)
Total Other Financing Sources (Uses) - 20,759 20,759
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
(985,333)
2,641,662
(985,333)
2,641,662
$ $ 1,656,329 $ 1,656,329
112
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, 2008
Budgeted Amounts
Original Final
Actual Amounts
Revenues:
Intergovernmental Revenues 3,789,500 3,702,331 $ 3,702,331
Charges for Services 450,000 601,527 601,527
Interest - 197,006 197,006
Other 1,807,226 3,074 3,074
Total Revenues 6,046,726 4,503,938 4,503,938
Variance with
Final Budget
Positive (Negative)
Expenditures:
Current Operating:
Public Safety 4,268,943 3,679,432 2,869,396 810,036
Capital Outlay 1,777,783 888,493 888,493
Total Expenditures 6,046,726 4,567,925 3,757,889 810,036
Excess (Deficiency) of Revenues Over Expenditures (63,987) 746,049 810,036
Other Financing Sources:
Transfers In 63,987 63,987
Total Other Financing Sources 63,987 63,987
Net Change in Fund Balance - 810,036 810,036
Fund Balance - Beginning of Year - 5,544,825 5,544,825
Fund Balance - End of Year $ - $ - $ 6,354,861 $ 6,354,861
113
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, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Fines and Forfeitures $ $ 912,791 $ 912,791
Interest 133,359 133,359
Other 641,233 73,361 73,361
Total Revenues 641,233 1,119,511 1,119,511
Expenditures:
Current Operating:
Public Safety 641,233 1,094,300 604,217 490,083
Capital Outlay - 25,211 25,211
Total Expenditures 641,233 1,119,511 629,428 490,083
Excess (Deficiency) of Revenues Over Expenditures
490,083 490,083
Net Change in Fund Balance 490,083 490,083
Fund Balance - Beginning of Year 3,474,020 3,474,020
Fund Balance - End of Year $ - $ - $ 3,964,103 $ 3,964,103
114
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, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Intergovernmental Revenues $ $ 102,304 $ 102,304
Charges for Services 1,561,767 1,561,767
Interest 36,000 43,630 43,630
Other 908,611 6,360 6,360
Total Revenues 944,611 1,714,061 1,714,061
Expenditures:
Current Operating:
Public Works 944,611 1,694,276 196,378 1,497,898
Capital Outlay - 53,120 - 53,120
Total Expenditures 944,611 1,747,396 196,378 1,551,018
Excess (Deficiency) of Revenues Over Expenditures (33,335) 1,517,683 1,551,018
Other Financing Sources:
Transfers In
Total Other Financing Sources
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
33,335 33,335
33,335 33,335
1,551,018 1,551,018
1,772,627 1,772,627
$ $ 3,323,645 $ 3,323,645
115
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, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Charges for Services $ - $ 126,024 $ 126,024
Other 223,401 240,543 1,713 (238,830)
Total Revenues 223,401 366,567 127,737 (238,830)
Expenditures:
Current Operating:
General Government
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
35,000
35,000
61,567 61,567
61,567 61,567
188,401 305,000 66,170 (238,830)
Other Financing Sources (Uses):
Transfers In 35,000 35,000 35,000
Transfers Out (223,401) (340,000) (340,000)
Total Other Financing Sources (Uses) (188,401) (305,000) (305,000)
Net Change in Fund Balance - (238,830) (238,830)
Fund Balance - Beginning of Year - 630,132 630,132
Fund Balance - End of Year - S 391,302 $ 391,302
116
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, 2008
Revenues:
Franchise Fees and Other Taxes
Total Revenues
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
7,343,596
7,343,596
(7,343, 596)
(7,343,596)
6,980,640 S 6,979,401
6,980,640 6,979,401
362,956
(7,343, 596)
362,956
(7,343, 596)
(6,980,640) (6,980,640)
(1,239)
(1,239)
Net Change in Fund Balance - - (1,239) (1,239)
Fund Balance - Beginning of Year - - 1,239 1,239
Fund Balance - End of Year - - S - S -
117
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, 2008
Revenues:
Charges for Services
Total Revenues
Expenditures
Current Operating:
Total Expenditures
Excess of Revenues Over Expenditures
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
Budgeted Amounts
Original Final
Actual Amounts
$ 156,184 $ 156,184
156,184 156,184
Variance with
Final Budget
Positive (Negative)
156,184 - 156,184
156,184 - 156,184
156,184 156,184
156,184 156,184
105,938 105,938
$ $ 262,122 $ 262,122
118
Revenues:
Intergovernmental Revenues
Total Revenues
Expenditures:
Current Operating:
General Government
Total Expenditures
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, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
$ 210,125 $ 210,125
210,125 210,125
4,956,808
4,956,808
37,198 4,919,610
37,198 4,919,610
Excess (Deficiency) of Revenues Over Expenditures (4,746,683) 172,927 4,919,610
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
7,337,535
(2,590,852)
7,337,535
(2,590,852)
4,746,683 4,746,683
Net Change in Fund Balance 4,919,610 4,919,610
Fund Balance - Beginning of Year 72,553 72,553
Fund Balance - End of Year $ $ $ 4,992,163 $ 4,992,163
119
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, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Intergovernmental Revenues $ 224,894 $ 1,622,203 $ 1,622,203
Other 589,878 3,531,211 30,800 (3,500,411)
Total Revenues 814,772 5,153,414 1,653,003 (3,500,411)
Expenditures:
Current Operating:
General Government 1,552,649 4,416,514 4,416,487 27
Capital Outlay 127,523 1,166,761 1,166,761
Total Expenditures 1,680,172 5,583,275 5,583,248 27
Excess (Deficiency) of Revenues Over Expenditures
(865,400) (429,861) (3,930,245) (3,500,384)
Other Financing Sources (Uses):
Transfers In 865,400 883,166 883,166
Transfers Out - (453,305) (453,304) 1
Total Other Financing Sources (Uses) 865,400 429,861 429,862 1
Net Change in Fund Balance - - (3,500,383) (3,500,383)
Fund Balance - Beginning of Year - - 5,854,581 5,854,581
Fund Balance - End of Year $ - $ - $ 2,354,198 $ 2,354,198
120
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, 2008
Revenues:
Intergovernmental Revenues
Total Revenues
Expenditures:
Current Operating:
General Government
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
$ 13,822,020 $ 12,647,923 $ 12,654,850
13, 822,020 12,647,923 12,654,850
628,050
4,000
632,050
442,367 442,367
442,367 442,367
6,927
6,927
13,189,970 12,205,556 12,212,483 6,927
(13,189,970)
(13,189,970)
925,363
(13,130,919)
925,363
(13,130,919)
(12,205,556) (12,205,556)
Net Change in Fund Balance - - 6,927 6,927
Fund Balance - Beginning of Year - - (6,927) (6,927)
Fund Balance - End of Year $ - $ - $ - $
121
Revenues:
Franchise and Other Taxes
Total Revenues
Other Financing Uses:
Transthrs Out
Total Other Financing Uses
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, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
$ 56,725,656 $ 63,469,633 $ 62,257,072
56,725,656 63,469,633 62,257,072
(56,725,656)
(56,725,656)
(63,469,633) (63,469,633)
(63,469,633) (63,469,633)
(1,212,561)
(1,212,561)
Net Change in Fund Balance - (1,212,561) (1,212,561)
Fund Balance - Beginning of Year - 5,327,547 5,327,547
Fund Balance - End of Year $ $ - $ 4,114,986 $ 4,114,986
122
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, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Intergovernmental Revenues $ 260,168 $ 260,168 $ 308,994 48,826
Interest - - 3,840 3,840
Other 951,500 951,500 - (951,500)
Total Revenues 1,211,668 1,211,668 312,834 (898,834)
Expenditures:
Current Operating:
Community Redevelopment Areas 1,761,668 1,776,570 528,258 1,248,312
Capital Outlay - 98 - 98
Total Expenditures 1,761,668 1,776,668 528,258 1,248,410
Excess (Deficiency) of Revenues Over Expenditures (550,000) (565,000) (215,424) 349,576
Other Financing Sources:
Transthrs In 550,000 565,000 550,000 (15,000)
Total Other Financing Sources 550,000 565,000 550,000 (15,000)
Net Change in Fund Balance - 334,576 334,576
Fund Balance - Beginning of Year - 520,711 520,711
Fund Balance - End of Year $ - $ $ 855,287 $ 855,287
123
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, 2008
Budgeted Amounts
Original Final
Actual Amounts
Variance with
Final Budget
Positive (Negative)
Revenues:
Intergovernmental Revenues $ 17,376 $ 17,376 $ 21,636 4,260
Charges for Services - 66,375 66,375
Interest - 23,384 23,384
Other 1,027,241 1,027,241 127,010 (900,231)
Total Revenues 1,044,617 1,044,617 238,405 (806,212)
Expenditures:
Current Operating:
Parks and Recreation
Capital Outlay
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
Fund Balance - End of Year
2,304,273 2,304,273
56,500 56,500
2,360,773 2,360,773
(1,316,156) (1,316,156)
1,316,156
1,316,156
1,798,687 505,586
80,126 (23,626)
1,878,813 481,960
(1,640,408) (324,252)
1,316,156 1,316,156
1,316,156 1,316,156
(324,252)
1,013,991
(324,252)
1,013,991
$ $ 689,739 $ 689,739
124
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, 2008
Revenues:
Intergovernmental Revenues
Charges for Services
Other
Total Revenues
Expenditures:
Current Operating:
Public Facilities
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources:
Transfers In
Total Other Financing Sources
Budgeted Amounts
Original Final
$ 1,982,216
529,000
238,400
$ 1,982,216
529,000
238,400
2,749,616 2,749,616
3,130,385 3,130,385
3,130,385 3,130,385
(380,769) (380,769)
380,769 380,769
380,769 380,769
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year $ $
Actual Amounts
$ 473,484
794,323
881,334
2,149,141
1,887,739
1,887,739
261,402
261,402
Variance with
Final Budget
Positive (Negative)
(1,508,732)
265,323
642,934
(600,475)
1,242,646
1,242,646
642,171
(380,769)
(380,769)
261,402
(136,234) (136,234)
$ 125,168 S
125,168
125
Revenues:
Property Taxes
Total Revenues
Expenditures:
Debt Service:
Principal
Interest and Other Charges
Total Expenditures
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, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
$ 21,426,659 $ 21,506,659 $ 21,327,853 $ (178,806)
21,426,659 21,506,659 21,327,853 (178,806)
10,295,644
11,131,015
10,295,644
11,211,015
21,426,659 21,506,659
10,295,644
11,197,914
13,101
21,493,558 13,101
Excess (Deficiency) of Revenues Over Expenditures - (165,705) (165,705)
Net Change in Fund Balance - (165,705) (165,705)
Fund Balance - Beginning of Year - 2,304,217 2,304,217
Fund Balance - End of Year $ $ - $ 2,138,512 $ 2,138,512
126
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, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:
Interest $ 305,475 $ 332,991 $ 332,991 S
Total Revenues 607,950 332,991 332,991
Expenditures:
Debt Service:
Principal 10,047,499 10,877,499
Interest and Other Charges 14,709,086 17,874,434
Total Expenditures 24,756,585 28,751,933
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses):
Transfers In
Proceeds Received From Long -Term Debt
Premium on Long -Term Debt
Total Other Financing Sources (Uses):
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
(24,148,635) (28,418,942)
10,877,499
17,540,886
333,548
28,418,385 333,548
(28,085,394) 333,548
24,454,110 27,049,735 30,042,198
- 24,251 24,251
- 1,344,956 1,344,956
24,454,110 28,418,942
305,475
2,992,463
31,411,405 2,992,463
3,326,011 3,326,011
3,443,149 3,443,149
S 305,475 S - $ 6,769,160 S 6,769,160
127
Revenues:
Intergovernmental Revenues
Interest
Total Revenues
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, 2008
Variance with
Budgeted Amounts Final Budget
Original Final Actual Amounts Positive (Negative)
302,475 $ 300,000
9,590
302,475
(2,475)
9,590
309,590 7,115
Expenditures:
Debt Service:
Principal 170,000 170,000 -
Interest and Other Charges 184,410 181,935 2,475
Total Expenditures 354,410 351,935 2,475
Excess (Deficiency) of Revenues Over Expenditures (51,935) (42,345) 9,590
Other Financing Sources:
Transfers In
Total Other Financing Sources:
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
51,935 51,935
51,935 51,935
9,590 9,590
2,172,185 2,172,185
$ $ 2,181,775 S 2,181,775
128
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.
129
City of Miami, Florida
Combining Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2008
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 -Term Investments $ 61,310,600 $ 591,413 $ 39,202 $ 52,275 $ - $ 61,993,490
Accounts Receivable 11,195,273 4,624,005 16,763 - 15,836,041
Capital Assets 2,170,816 2,627,230 - 4,798,046
Prepaid Assets - 49,166 - 49,166
Investments
U.S. Government Obligations
Corporate Bonds
Corporate Stocks
Money Market Funds and Commercial Paper
International Equity
Mutual Funds
Real Estate
Private Equity
Total Investments
Securities Lending Collateral
Total Assets
Liabilities
Obligations Under Security Lending
Accounts Payable
Accrued Liabilities
Payable for Securities Purchased
Total Liabilities
Net Assets
Held in Trust for Pension Benefits
74,676,689 7,891,814 55,965 52,275 - 82,676,743
223,403,484
197,919,208
646,768,909
73,933,123
44,479,142
114,841,336
19,747,148
65,451,840
77,503,821
362,740,216
24,547,609
45,012,487
1,321,092,350 575,255,973
- 3,538,311 292,393,635
459,926 275,882,955
627,831 - 1,010,136,956
148,229 24,695,838
- 73,933,123
- - 44,479,142
- - 159,853,823
19,747,148
1,087,757
3,686,540 1,901,122,620
187,540,846 187,540,846
1,583,309,885 583,147,787
190,141,047 -
254,839 700,626
44,479,142 -
23,684,613 5,954,915
258,559,641 6,655,541
55,965 1,140,032
55,965
3,686,540 2,171,340,209
190,141,047
1,011,430
44,479,142
29,639,528
55,965 - - 265,271,147
$ 1,324,750,244 $ 576,492,246 $ - $ 1,140,032 $ 3,686,540 $ 1,906,069,062
130
City of Miami, Florida
Combining Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30, 2008
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
Additions
Contributions:
Employer $ 36,040,251 $ 22,762,902 $ 446,916 $ 109,163 $ 711,209 $ 60,070,441
Plan Members 9,719,896 9,517,052 - 66,728 - 19,303,676
Total Contributions 45,760,147 32,279,954 446,916 175,891 711,209 79,374,117
Investment Eamings (Loss):
Net Increase (Decrease) in Fair
Value of Investments (258,874,205) (110,490,891) (215,347) (369,580,443)
Interest 24,208,623 9,027,894 2,700 1,834 106,771 33,347,822
Dividends 13,590,006 6,437,482 36,375 20,063,863
Other (528,232) 273,768 - (254,464)
Total Investment Earnings (Loss) (221,603,808) (94,751,747) 2,700 (177,138) 106,771 (316,423,222)
Less Investment Expenses 6,034,419 2,541,778 - 8,576,197
Net Investment Earnings (Loss) (227,638,227) (97,293,525) 2,700 (177,138) 106,771 (324,999,419)
Reimbursement Income from City
Total
2,510,921 32,212
(181,878,080) (62,502,650) 481,828
(1,247)
2,543,133
817,980 (243,082,169)
Deductions
Benefits 77,794,816 51,631,847 449,370 - 683,101 130,559,134
Refunds upon Resignation, Death, etc. 678,388 1,021,711 - 1,700,099
Distribution to Retirees 15,666,175 - - - 15,666,175
Administrative and Other Expenses 42,726 2,653,879 32,458 - 2,729,063
Total 94,182,105 55,307,437 481,828 - 683,101 150,654,471
Change in Net Assets (276,060,185) (117,810,087) (1,247) 134,879 (393,736,640)
NetAssets - Beginning of Year 1,600,810,429 694,302,333 - 1,141,279 3,551,661 2,299,805,702
NetAssets- EndofYear $ 1,324,750,244 $ 576,492,246 $ - $ 1,140,032 $ 3,686,540 $ 1,906,069,062
131
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132
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.
134
140
144
149
150
133
CITY OF MIAMI, FLORIDA
NET ASSETS BY COMPONENT
LAST FIVE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2004
2005
2006
2007
2008
Primary Government
Invested in Capital Assets, Net of Related Debt $
Restricted
Unrestricted
Total Primary Government Net Assets
+c�
R„#
9,
149,143,544
(64,134,990)
$ B V 2
$ 640,931,069
153,641,905
(82,047,220)
$ 731,756,870
$ 730,272,844
188,895,278
(98,069,477)
$ 739,162,726
$ 773,959,639
102,602,464
(93,712,582)
$ 710,180,831
147,706,831
(211,485,639)
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.
134
CITY OF MIAMI, FLORIDA
CHANGES IN NET ASSETS
LAST FIVE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2004 2005 2006 2007 2008
Expenses
Governmental Activities:
General Government $ 85,252,892 $ 78,336,822 $ 85,315,437 $ 121,694,219 $ 140,680,932
Planning and Development 13,148,696 16,259,651 16,911,621 16,923,477 16,217,858
Community Development 40,349,703 55,264,647 41,054,245 35,486,773 42,029,139
Community Redevelopment Areas 4,618,714 4,968,422 6,331,328 7,011,132 13,904,297
Public Works 49,498,193 70,987,541 65,958,181 75,073,321 72,572,813
Public Safety 282,427,868 325,533,600 347,976,631 343,470,082 370,007,019
Public Facilities 17,458,726 12,949,751 14,917,431 16,691,365 15,354,423
Parks and Recreation 44,275,606 24,293,055 25,718,056 39,893,208 39,550,244
Interest on Long -Term Debt 23,235,705 22,201,669 21,560,094 23,859,254 27,206,895
Unallocated Depreciation 26,147,570 26,147,088 26,690,642 29,548,332 -
Total Primary Government Expenses 586,413,673 636,942,246 652,433,666 709,651,163 737,523,620
Program Revenues
Governmental Activities:
Charges for Services:
General Government 48,955,278 41,775,235 51,161,759 33,403,595 40,062,337
Planning and Development 14,352,919 23,964,447 22,799,725 24,558,217 13,076,692
Community Development 2,069,068 777,291 4,053,520 2,301,538 702,888
Community Redevelopment Areas 220,517 45,163 214,142 1,414,979 1,140,923
Public Works 42,608,182 47,278,720 51,888,525 46,587,956 48,488,699
Public Safety 48,507,121 47,488,375 39,193,653 22,952,364 16,577,772
Public Facilities 16,736,649 22,792,948 25,137,318 6,558,800 16,660,099
Parks and Recreation 3,308,314 1,901,403 2,406,099 3,488,492 4,106,702
Operating Grants and Contributions 42,967,708 59,414,862 34,889,443 71,070,882 63,179,016
Capital Grants and Contributions 19,952,074 38,161,382 72,067,622 69,140,730 54,174,136
Total Primary Government Program Revenues 239,677,830 283,599,826 303,811,806 281,477,553 258,169,264
Net (Expense)/Revenue
Total Primary Government Net Expense $ (346,735,843) $ (353,342,420) $ (348,621,860) $ (428,173,610) $ (479,354,356)
General Revenues and Other Changes in Net Assets
Governmental Activities:
Taxes
Property Taxes, Levied for General Purposes $ 163,056,413 $ 191,640,650 $ 226,508,118 $ 275,012,727 $ 269,785,445
Property Taxes, Levied for Debt Service 19,932,162 20,368,722 19,966,467 19,886,776 21,327,853
Franchise Taxes 35,024,215 35,918,724 41,342,214 42,257,282 42,298,452
State Revenue Sharing - Unrestricted 10,351,506 12,581,352 12,947,019 13,073,886 12,187,197
Sales and Other Use Tax 22,279,656 23,422,160 25,800,341 25,505,412 24,860,795
Public Service Taxes 60,024,832 61,114,292 57,991,178 58,099,069 62,257,072
Investment Earnings - Unrestricted 5,618,813 5,866,114 14,477,950 23,837,450 17,655,647
Gain (Loss) on Disposal of Capital Assets - (3,387,124) - 1,502,044
Other 4,072,796 1,891,124 768,767 -
Special Item - Impairment Loss on Capital Assets - - - (23,595,180)
Total Primary Government 320,360,393 349,416,014 399,802,054 435,579,466 450,372,461
Change in Net Assets
Total Primary Government $ (26,375,450) $ (3,926,406) $ 51,180,194 $ 7,405,856 $ (28,981,895)
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.
135
Fiscal
Year
2004
2005
2006
2007
2008
CITY OF MIAMI, FLORIDA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST FIVE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Ad Valorem
Taxes
General Purpose
163,056,413
191,640,650
226,508,118
275,012,727
269,785,445
Ad Valorem
Taxes
Debt Service
19,932,162
20,368,722
19,966,467
19,886,776
21,327,853
Sales
Franchise and Other
Taxes Use Taxes
35,024,215 22,279,656
35,918,724 23,422,160
41,342,214 25,800,341
42,257,282 25,505,412
42,298,452 24,860,795
Communication
Service
Taxes
60,024,832
61,114,292
57,991,178
58,099,069
62,257,072
Total
300,317,278
332,464,548
371,608,318
420,761,266
420,529,617
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.
136
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
2004
2005 2006
2007
2008
$ 3,439,120
133,413,642
$ 136,852,762
$ 3,224,542
113,880,513
$117,105,055
$ 894,059 $ 3,768,826 $ 4,616,080
125,362,454 96,681,318 88,961,368
$ 126,256,513 $ 100,450,144 $ 93,577,448
$ 59,142,160 $ 78,343,670 $ 96,569,917
$ 110,160,478
- 12,859,516
43,934,094
-
$ 46,825,466
4,027,253
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.
47,901,687 49,180,840 7,995,266 60,443,132
1,150,000 2,691,656 3,443,149 1,861,274
241,854,585 175,505,411 131,018,373 123,498,283 200,205,983
$ 350,048,432 $ 305,721,577 $ 271,522,384 $ 257,956,692 $ 313,363,108
137
CITY OF MIAMI, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST FIVE FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2004 2005 2006 2007 2008
Revenues
Property Taxes $ 186,501,954 $ 208,091,814 $ 246,337,333 $ 294,251,152 $ 291,113,299
Franchise and Other Taxes 102,811,047 92,714,383 98,243,722 100,356,351 104,555,524
Licenses and Permits 23,011,688 27,394,427 28,468,593 32,848,055 29,844,868
Fines and Forfeitures 5,649,452 5,777,697 5,912,300 7,541,812 6,977,788
Intergovernmental Revenues 124,153,113 161,745,250 174,074,303 150,040,391 157,268,610
Charges for Services 102,172,563 110,483,424 106,682,451 89,589,154 86,386,721
Interest 9,054,422 8,715,234 18,979,204 23,837,450 17,655,770
Impact Fees 3,743,183 9,256,637 9,388,192 4,017,110 4,679,000
Other 15,370,429 5,721,312 15,376,683 9,369,810 10,102,809
Total Revenues 572,467,851 629,900,178 703,462,781 711,851,285 708,584,389
Expenditures
General Government 71,744,631 44,713,551 49,995,402 57,669,544 77,127,072
Planning and Development 12,420,765 12,858,675 12,740,678 11,862,685 11,236,136
Community Developmeni 39,073,478 57,803,782 40,978,910 35,325,497 41,036,697
Community Redevelopment Area 4,610,070 4,608,027 5,982,541 5,314,468 15,946,941
Public Works 56,926,608 48,266,766 50,579,908 56,484,364 55,068,379
Public Safety 265,574,068 222,377,919 251,914,610 256,691,572 265,497,659
Public Facilities 10,243,873 11,426,487 11,795,688 13,455,945 13,019,718
Parks and Recreation 16,682,057 17,261,022 17,896,247 30,637,506 29,056,137
Risk Management (2) 29,162,254 25,546,486 18,115,929 28,796,859
Pensions(2) 73,862,309 78,864,757 70,708,285 65,116,477
Organizational Support(2) 23,917,033 25,161,646 35,122,459 27,751,691
Non -Departmental (2) 12,926,933 13,204,324 28,490,230
Debt Service:
Principal 19,839,464 18,770,229 19,218,795 20,887,276 21,343,143
Interest and Other Charges 22,694,233 21,822,857 21,650,889 24,346,064 28,920,735
Debt Issuance Costs - - - 6,988,908 -
Capital Outlay 54,707,004 94,680,930 103,894,188 124,264,229 114,576,911
Total Expenditures 574,516,251 694,458,774 729,425,069 796,364,961 794,494,555
Excess (Deficiency) of Revenues
Over Expenditures (2,048,400) (64,558,596) (25,962,288) (84,513,676) (85,910,166)
Other Financing Sources (Uses)
Transfers In 224,948,344 204,247,939 229,700,739 278,006,434 227,562,830
Transfers Out (224,948,344) (204,247,939) (229,700,739) (278,006,434) (227,562,830)
Sale of Property - - 1,502,044 -
Proceeds Received From Refunding 4,180,000 - - 138,841,992 133,098,930
Payment To Escrow Agent For Refunding (4,062,502) - - (131,775,000)
Proceeds Received For Long -Term capital - - 50,969,202
Premium (Discount) Long -Term Debt - - - 1,344,956
Loan - 1,000
Capital Leases 3,204,349 -
Sale ofCapital Assets - 500,000 889,969
Total Other Financing Sources 3,321,847 500,000 890,969 59,538,238 134,443,886
Net Change In Fund Balances $ 1,273,447 $ (64,058,596) $ (25,071,319) $ (24,975,438) $ 48,533,720
Debt Service as a Percentage
of Non -Capital Expenditures
8.18% 6.76% 6.53% 6.91% 7.71%
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, 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.
138
CITY OF MIAMI, FLORIDA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST FIVE FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Ad Valorem Ad Valorem Sales Communication
Fiscal Taxes Taxes Franchise and Other Services
Year General Purpose Debt Service Taxes Use Taxes Taxes Total
2004 166,121,214 20,380,740 35,024,215 22,279,656 67,786,829 311,592,654
2005 187,998,820 20,092,994 35,918,724 23,422,160 56,795,255 324,227,953
2006 226,304,681 20,032,652 41,342,214 25,800,341 56,900,497 370,380,385
2007 275,012,727 19,886,776 42,257,282 25,505,412 58,099,069 420,761,266
2008 269,785,445 21,327,853 42,298,452 24,860,795 62,257,072 420,529,617
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.
139
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)
1999 5,476,130,675 5,564,886,455 1,334,992,653 12,376,009,783 11.79 17,901,918,921 69.13%
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%
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.
140
CITY OF NIIANII, 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
1999 1998 10.0000 1.7900 11.7900 10.2600 6.8600 0.3340 0.5970 - 0.0470 29.8880
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
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).
141
CITY OF NIIANII, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2008 1999
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 $ 374,704,167 1 1.13% Florida Power & Light 157,173,374 3 1.27%
SRI Miami Ventures, LP 281,063,160 2 0.85%
Teachers Ins & Annuity Assoc 274,800,000 3 0.83%
Bellsouth Telecommuniations 235,219,075 4 0.71% Bellsouth 185,411,205 1 1.50%
Crescent Miami Center 178,000,000 5 0.54%
1111 Brickell Office LLC 138,566,380 6 0.42%
Knight-Ridder Newspapers 121,709,457 7 0.37%
Terremark Brickell 11 103,758,786 8 0.31%
Trustees of L&B 103,191,113 9 0.31%
Blue Capital US East 96,296,304 10 0.29%
SRI Aetna Life Insurance 178,100,000 2 1.44%
Metropolitan Life Ins. Co. 136,400,000 4 1.10%
Prudential Insurance Co. 115,500,000 5 0.93%
Swire Properties 102,802,770 6 0.83%
Brickell Associates 81,000,000 7 0.65%
Brickell Square 62,000,000 8 0.50%
Rouse -Miami Inc 61,239,384 9 0.49%
Inter -Continental 58,100,000 10 0.47%
$ 1,137,726,733 9.18%
$ 1,907,308,442 5.77%
142
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
1999 145,913,155 143,515,000 98.36% 1,405,841 144,920,841 99.32%
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% 292,307,274 95.98%
Source: City of Miami, Finance Department and Miami -Dade County Tax Collector's Office
143
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)
1999 130,205,000 149,331,325 67,923,364 1,515,833 348,975,522 2.60% 955
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 N/A 1,094
2008 235,393,765 198,484,539 73,656,764 - 507,535,068 N/A 1,400
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
144
CITY OF MIAMI, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Percentage of
Less Amounts Estimated Actual
Fiscal Year General Available in Taxable
Ended Obligation Debt Service Value of Per
September 30, Bonds Fund Total Property (1) Capita (2)
1999 130,205,000 4,280,363 125,924,637 0.703% 344.48
2000 119,150,000 4,314,466 114,835,534 0.609% 314.15
2001 107,620,000 3,795,503 103,824,497 0.518% 286.44
2002 249,711,406 5,140,714 244,570,692 1.110% 674.73
2003 236,549,956 1,410,866 235,139,090 0.950% 648.71
2004 225,944,956 966,126 224,978,830 0.812% 620.68
2005 215,729,956 1,512,591 214,217,365 0.667% 590.99
2006 205,306,932 1,994,991 203,311,941 0.520% 560.91
2007 245,689,409 2,304,217 243,385,192 0.508% 671.46
2008 235,393,765 2,138,512 233,255,253 0.422% 643.52
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.
145
CITY OF MIAMI, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2008
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
Miami -Dade County School Board
Subtotal, Overlapping Debt
$ 504,371,173 19.00% $ 95,830,523
408,745,000 19.00% 77,661,550
173,492,073
City of Miami, Florida Direct Debt
(excludes special obligation, revenue bonds, loans and capital leases) 235,393,765
Total Direct and Overlapping Debt $ 408,885,838
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.
146
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
1999 2000 2001 2002 2003 2004 2005 2006 2007
$ 1,856,401,467 $ 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
127,927,234 114,914,079 103, 824,851
249,711,407 236,549,956
2008
$ 5,400,939,950
224,978,830 214,217,365 203,311,941 243,385,192 233,255,253
$ 1,728,474,233 $ 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
6.89%
5.84%
5.03%
11.02% 9.31%
Legal Debt Margin Calculation for Fiscal Year 2008
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
147
7.95%
6.51%
5.02%
4.91%
4.32%
$ 37,755,839,094
(1,749,572,760)
36,006,266,334
5,400,939,950
235,393,765
(2,138,512)
233,255,253
$ 5,167,684,697
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)
1999 170,186,403 9,240,400 11,886,971 42,254,742 4.03
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
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.
148
CITY OF MIAMI, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Personal
Income
(Amounts Per Capital
Expressed in Personal Median School Unemployment
Year Population (1) Thousands) (2) Income (2) Age (2) Enrollment (3) Rate (4)
1999 365,548 9,087,523 24,860 35.00 352,595 5.80
2000 365,548 9,538,244 26,093 35.60 360,202 5.30
2001 362,470 9,639,527 26,594 35.90 368,453 6.90
2002 362,470 9,706,947 26,780 36.90 374,725 7.70
2003 362,470 10,001,635 27,593 37.00 371,482 7.50
2004 362,470 10,539,177 29,076 36.60 369,578 5.70
2005 362,470 11,362,347 31,437 37.40 365,784 4.70
2006 362,470 12,219,589 33,712 37.00 361,550 3.40
2007 362,470 N/A N/A 38.00 353,283 4.10
2008 362,470 N/A N/A N/A 347,774 6.10
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
149
CITY OF MIAMI, FLORIDA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2008
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
Percentage of
Total County
Employees Rank Employment
4.19%
2.68%
1.71%
1.43%
0.92%
0.91%
0.88%
0.83%
0.75%
0.55%
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
14.85%
1999
Percentage of
Total County
Employees Rank Employment
4.02%
2.54%
1.70%
1.67%
44,329 1
28,000 2
18,700 3
18,400 4
5,285 8
8,209 6
7,517 7
9,304 5
5,000 9
3,792 10
148,536
0.48%
0.74%
0.68%
0.84%
0.45%
0.34%
13.46%
150
CITY OF MIAMI, FLORIDA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Number of Employees:
General Government 460 488 511 523 587 594 617 641 644 641
Planning and Development 109 109 127 141 140 138 147 141 142 128
Community Development 140 140 172 170 91 77 73 61 52 61
Public Works 477 479 500 507 498 497 505 542 526 525
Public Safety 2,345 2,388 2,346 2,275 2,248 2,140 2,138 2,222 2,288 2,310
Public Facilities 34 34 37 37 33 43 45 55 56 54
Culture and Recreation 128 129 136 136 141 148 188 190 191 207
Total Number of Employees 3,693 3,767 3,829 3,789 3,738 3,637 3,713 3,852 3,899 3,926
Source: City of Miami, Budget Department
151
CITY OF MIAMI, FLORIDA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Function/Program 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Community Development:
Entitlements/Grants Received $ 44,278,455 $ 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
Public Safety:
Police:
Part 1 Crimes - (1) 40,048 39,759 35,291 33,952 33,527 30,966 29,455 26,219 27,302 27,907
Part 1 Arrests - (1) 8,320 7,521 8,812 8,368 6,729 6,662 5,728 4,359 4,635 4,741
Part 2 Arrests - (2) 42,198 42,236 41,089 31,077 26,786 38,467 33,385 33,408 32,738 31,211
Fire:
Number of Fire Calls 11,897 13,310 12,945 12,228 15,571 17,889 19,017 12,694 14,472 18,191
Number of EMS Calls 58,507 60,166 63,104 63,041 62,784 64,500 67,300 70,423 72,757 69,870
Number of Alarms 70,404 73,476 76,049 75,269 78,355 82,389 86,318 83,117 87,227 88,061
Planning and Development:
Certificate of Use Permits Issued
Occupational Licenses Issued
19,394 19,682 19,483 20,366 20,625 20,422 21,123
36,250 36,867 38,207 37,524 39,040 39,422 40,371
21,142 22,000 21,482
34,197 42,000 22,498
Culture and Recreation:
Summer Food Program - Meals Served (Lunches) 68,603 67,589 83,515 96,249 124,701 122,749 89,324 55,126 104,472 N/A
Summer Food Program - Meals Served (Snacks) 92,285 96,128 116,899 132,481 146,786 115,837 100,870 61,000 114,670 N/A
Solid Waste:
Refuse Collected (Tons/Day) 735 748 725 805 768 793 578
Recyclables Collected (Tons/Day) N/A N/A 28 28 24 21 72
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.
152
713 629 717
10 13 16
Function/Program
CITY OF MIAMI, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Public Safety:
Police:
Police Stations 1 1 1 1 1 1 1 1 1 1
Police Sub -Stations 2 2 2 2 2 2 2 2 2 3
Fire:
Fire Stations 12 12 12 12 12 12 14 14 14 14
Solid Waste:
Collection Trucks
N/A 117 132 153 172 176 152 151 175 181
Public Works:
Streets (Miles- Paved) 660.8 660.5 659.2 659.0 658.9 658.9 660.0 667.4 662.2 662.2
Streets (Miles - Unpaved) 1.5 1.5 1.4 1.4 1.4 1.4 1.4 3.1 1.2 N/A
Transportation:
Street Resurfacing (Miles) N/A N/A N/A N/A 25.0 33.5 33.5 17.9 23.3 21.6
Culture and Recreation:
Parks Acreage 800 800 800 800 800 800 800 800 894 894
Parks 110 110 110 110 110 111 111 112 112 112
Swimming Pools 10 10 10 10 10 10 10 12 11 11
Tennis Courts 53 53 53 53 53 53 53 53 55 55
Community Centers 25 26 26 30 30 31 30 32 32 32
Basketball Courts 63 63 63 63 63 63 61 63 63 63
Water Playgrounds - - 1 1 1 2 2
Soccer Fields 6 6 6 6 6 7 7 7 11 11
Football Fields 12 12 12 12 12 12 12 12 10 10
Baseball Fields 25 25 25 25 25 25 21 25 27 27
Open Practice Fields - - - - 2 2
Cricket Field - - - - 1 1
Sources: Various City Departments
Note: No capital asset indicators are available for the general government function.
N/A Information not available.
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